Casualty Quarterly, Spring 2026

Automobile Insurance Committee in Focus—New Leadership and Perspectives on Tariffs

The Academy will present at the Casualty Actuarial Society (CAS) Spring Meeting in New York in early May on cost drivers in auto insurance and auto insurance affordability. The presentation will define metrics for the affordability of auto insurance, cover changes in U.S. affordability trends in recent years, and discuss factors that are driving changes to auto insurance costs such as inflation, social inflation, behavioral changes in drivers, and tariffs.

The presentation ties in with a new Academy Automobile Insurance Committee paper on tariffs, Tariffs and Their Effects on Personal Auto Insurance Costs: An Actuarial Perspective, which looks at tariff-related issues including volatility in the past year that has created substantial economic uncertainty, a rapidly shifting tariff environment that has contributed to uncertainty for the insurance industry, cost increases from tariffs on imported cars and parts that are expected to materially raise claim costs, and premiums; indirect economic effects such as recession risk, inflationary pressure, and supply chain disruption; and other risks and uncertainties that may further distort the auto-insurance space.

“I’m excited to step into the role of Automobile Insurance Committee chairperson and build on the momentum set by previous chairperson Jared Smollik and the committee members,” said new Chairperson Amy Ning. “Over the past few weeks I’ve enjoyed connecting one‑on‑one with members to learn more about their interests, expertise, and what excites them most about the committee’s work, and it’s been great to see the depth and breadth of actuarial experience across the group. Looking ahead, the committee will continue to provide objective actuarial expertise to help inform sound public policy, stay ahead of industry trends, and advance work on emerging topics such as telematics. We’re also excited to collaborate and support each other’s professional growth through committee involvement,” she said.

The committee also submitted a comment letter to the District of Columbia Department of Insurance, Securities and Banking (DISB) in mid-April on a telematics bill under consideration in the city, and is preparing a paper on that subject. It also sent a joint letter to the DISB In conjunction with the P/C Extreme Events and Property Lines Committee on DISB’s upcoming market conduct data call.

Academy Holds Spring Policy Summit, Annual Hill Visits

The Academy held its inaugural Spring Policy Summit in Washington on March 9, followed by the annual “Hill visits” in which Casualty Practice Council (CPC) and other practice-area volunteers and Academy staff fanned out across Capitol Hill, meeting with congressional and committee staff, and federal agencies.

The summit featured multiple sessions with legislative, regulatory, and stakeholder groups, all of whom reinforced the value received through the Academy’s objective and nonpartisan information on important public policy issues. A key theme across sessions was delivering the Academy’s expertise and insights by “meeting stakeholders where they are”—whether through short bullet-point highlights, infographics, issue briefs, or more detailed comment letters, papers, and monographs.

As noted by Casualty Vice President Susan Kent (see “VP Corner,” below), for the Hill visits, CPC and Risk Management and Financial Reporting Council (RMFRC) volunteers formed three groups that met with 15 different congressional offices and committees on topics ranging from cybersecurity to extreme weather events and the National Flood Insurance Program (NFIP). The meetings included the House Budget, Judiciary, Homeland Security, and Financial Services committees, along with the Senate Banking, Housing and Urban Affairs Committee and the Commerce, Science and Transportation Committee, as well as staff of key individual members of Congress.

Federal officials were “very open to the Academy’s Hill visits,” said Wanchin Chou, a past chairperson of the CPC’s Committee on Cyber Risk and a current member of the Climate Change Joint Committee, who has taken part in Hill visits for the past several years.

Congressional staff and federal agency officials “appreciate the Academy’s expertise in many key areas that we as actuaries have,” he said, including “AI, the availability and affordability issue, cyber risk, catastrophe, and cyber risk—they are facing many challenging questions from the public to address.”

VP Corner

CPC Off to a Strong Start in 2026

Susan Kent

Vice President, Casualty

The CPC is off to a strong start in 2026! The CPC released the annual P/C Loss Reserves Law Manual and Statements of Actuarial Opinion on P/C Loss Reserves practice note, sent a joint comment letter with RMFRC and the Academy Research Committee to the National Science Foundation (NSF), urging retention of National Center for Atmospheric Research, and released an issue brief, Homeowners’ Insurance: Filling the Coverage Gap. Additionally, the CPC held a February webinar, Key Insights from the P/C RBC Committee.

A highlight of the quarter was the cross-practice Academy Hill visits, which involved all practice areas. The CPC, in conjunction with RMRFC, visited federal policymakers and regulators on Capitol Hill in the nation’s capital on April 10. CPC/RMFRC volunteers formed three groups that met with 15 different congressional offices and committees on a variety of important topics including cybersecurity, affordability, extreme weather events, the NFIP, and third-party litigation funding. Hill visits are a meaningful—and fun!—way of fulfilling one of the main missions of the Academy: informing public policy.

Homeowners’ Task Force Releases Issue Brief

The Homeowners’ Insurance Task Force released its first paper, Homeowners’ Insurance: Filling the Coverage Gap, an issue brief examining how the home replacement cost calculation process is more complex than it appears, as market value and insured value do not always align.

Academy Presents at NAIC Spring Meeting

Academy volunteers and staff presented at the NAIC Spring National Meeting in San Diego in late March, covering multiple practice areas, including casualty, as well as professionalism and cross-practice policy issues.

Academy President Tricia Matson introduced professionalism updates to NAIC practice-area task forces including the Casualty Actuarial and Statistical (C) Task Force (CASTF) by Actuarial Standards Board Chairperson Laura Hanson, Actuarial Board for Counseling and Discipline Chairperson William Hines, and Committee on Qualifications member Linda Lankowski.

The Academy also gave several practice-area presentations, including an update of CPC activity to CASTF by Director of Public Policy Outreach Katie Dzurec and Research updates from Director of Research, Steve Jackson, who shared some research findings on risk-based capital (RBC) and impairment to the Joint Meeting of Catastrophe Risk (E) Subgroup and Property and Casualty RBC (E) Working Group.

P/C ASOPs Roundup

ASOP Nos. 30, 39 Second Exposure Drafts Open for Comment

The Actuarial Standards Board (ASB) approved second exposure drafts of ASOP No. 30, Profit Provisions, Contingency Provisions, and the Cost of Capital in Property/Casualty Risk Transfer and Risk Retention, and No. 39, Treatment of Catastrophe or Extreme Event Losses in Future Cost Estimates for Property/Casualty Risk Transfer and Risk Retention.

ASOP No. 41 Webinar Set for May 1

An upcoming professionalism webinar will cover proposed changes to ASOP No. 41, Actuarial Communications, which applies to all practice areas. A third exposure draft is currently open for comment. Register today.

ASB Adopts Revisions of ASOP No. 20

The ASB also adopted a revision of ASOP No. 20, now titled Analysis of Property/Casualty Cash Flows, Including Discounting. The effective date is for actuarial work performed on or after June 1, 2026.

Cyber Risk Toolkit Updated With New Cyber Data Paper

An updated Cyber Data paper by the Committee on Cyber Risk is the latest update to the committee’s Cyber Risk Toolkit. Cyber insurers lack the years of historical data typically used in other property/casualty lines to build reliable pricing models. It notes that as data grows, cyber risk remains difficult to evaluate due to limited experience or the evolving nature of exposure, which can also complicate reserving.

Registration Opening Soon for CLRS, P/C Opinion Seminar

Mark your calendar for two annual property/casualty events sponsored and co-sponsored by the Academy.

New on Academy Learning: Webinar Offers RBC Insights

A February webinar, Key Insights From the P/C RBC Committee, offered a detailed examination of the committee’s dependency report to the NAIC and the committee’s work, as well as an understanding of the critical issues surrounding P/C risk-based capital (RBC) issues. Watch a replay on Academy Learning.