Qualifications

This session will cover three key documents that P/C Appointed Actuaries should reference when determining if they are qualified to issue a National Association of Insurance Commissioners (NAIC) P/C Statement of Actuarial Opinion: the Code of Professional Conduct, the U.S. Qualification Standards, and the NAIC P/C Statement of Actuarial Opinion Instructions. Content will cover the General Qualification Standards and the Specific Qualification Standards in the areas of basic education requirements, experience, and continuing education requirements. The session will also review the NAIC definition of a “Qualified Actuary,” including the components of the Appointed Actuary’s Qualification Documentation as required by the NAIC.

Responsibilities, Record-Keeping, and Practice Note

Stay current with the ever-evolving responsibilities and record-keeping requirements for an Appointed Actuary. This session will provide an overview of the Statements of Actuarial Opinion on Property and Casualty Loss Reserves Practice Note (with highlights of the changes for 2020). There will be a review of laws, regulations, and resources available to an actuary to execute with skill and care. This session will also outline the NAIC’s latest record-keeping requirements of Appointed Actuaries.

Reserve Ranges

This session provides an overview of the use of ranges in reserve reviews. This session is not a full breakdown of all the aspects of reserve variability. Rather, it provides a discussion of how ranges are developed and used to support opinion letters and the documentation supporting them. The separate technical aspects of process and parameter risk of reserves are both examined. Range disclosure in reports and how intended readers rely on them will also be looked at.

Risk of Material Adverse Deviation

Regulators rely on the information included in the Risk of Material Adverse Deviation (RMAD) discussion to get a full picture of the state of the company. This session focuses on considerations for determining specific risk factors and materiality thresholds and how to put them together to determine whether there is a risk of material adverse deviation.

ASOPs and Precepts

Engage in a review of the Code of Professional Conduct and its Precepts (rules) to which actuaries practicing in the U.S. are all bound. Listen to the discussion and review of relevant actuarial standards of practice (ASOPs) and the guidance that they provide the development of Appointed Actuaries’ loss reserve opinions. 

Data, Documentation, and Report Writing

Brush up on current practices for writing an effective Actuarial Report supporting a Statement of Actuarial Opinion. The session will go beyond requirements of ASOPs and NAIC Annual Statement Instructions to include interactive review, critique, and improvement of report excerpts. “Understand your audience” and a regulator’s use of the Actuarial Report to help tell a story in sufficient detail for another actuary to follow. The session will also cover current practices for items that the Appointed Actuary documents and discloses, including addressing the data component of the Actuarial Report with exhibits, Schedule P Reconciliation, and data-focused disclosures.

Regulatory Perspective

This session provides a regulatory lens on reviewing Statements of Actuarial Opinion and Actuarial Reports within the financial analysis and financial examination frameworks as required through NAIC accreditation standards. Key topics will include Statements of Actuarial Opinion/Actuarial Opinion Summary statistics and the Casualty Actuarial & Statistical Task Force (CASTF) Actuarial Opinion Working Group (AOWG) Regulatory Guidance document. This session will be presented by a regulatory actuary.

Opinion Workshop

The Statement of Actuarial Opinion consists of a series of required paragraphs, presenting information about the company’s reserves, the Appointed Actuary and his/her work and conclusions. Presenting the information clearly and concisely while meeting the requirements can be challenging. In this session, a series of situations will be presented and there will be a discussion of where and how they should be addressed in the opinion. Attendee participation and viewpoints will be encouraged.