Work Group Provides Update to NAIC on Fixed Annuity PBR Framework Elements
The Annuity Reserves Work Group gave an update to the NAIC VM-22 (A) Subgroup on the preliminary framework elements for fixed annuity PBR.
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Committee Issues FAQ on Covid-19 Impact on PC Financial Reporting
The Committee on Property and Liability Financial Reporting has issued a set of questions and answers regarding the impact of the coronavirus pandemic on P/C financial reporting.(Note: This document has been superceded by a second edition, published in January 2021.)
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Academy Publishes Issue Brief on the SECURE Act
The Academy published an issue brief examining the potential impact of the SECURE Act on retirement security, which was developed by Senior Pension Fellow Linda K. Stone in conjunction with the chairperson and members of the Retirement System Assessment and Policy Committee and the co-chairpersons of the Lifetime Income Risk Joint Committee.
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Hypothetically, a GAAP audit was performed and filed prior to COVID-19 being declared a pandemic. While the statutory Annual Statement was filed by March 1, 2020, the statutory audit has not yet been finalized. Could there be a different conclusion with r
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In general, we believe that it is conceivable that the conclusion with respect to the reasonableness of loss and LAE reserves could be different on a GAAP versus SAP basis. We expect that this would result in considerations as to the need for restatement on a GAAP basis.
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Do I need to reissue the 2019 Statement of Actuarial Opinion if the impact of COVID-19 could be material to the loss and LAE reserves as of December 31, 2019, my conclusion with respect to RMAD, my opinion on any other reserve balance, or considerations c
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Based on a strict reading of the NAIC Instructions for P&C Statements of Actuarial Opinion, the answer seems to be “no.” Amendments to the Actuarial Opinion generally occur when the opinion was in error as a result of reliance on data or other information (other than assumptions) that, as of the balance sheet date, was factually incorrect and the opinion would not have been issued or would have been materially altered had correct data/information been used.
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I issued a 2019 Statement of Actuarial Opinion and Actuarial Opinion Summary prior to COVID-19 being declared a pandemic by the World Health Organization on March 11. My range of unpaid claims and conclusion with respect to the reasonableness of the Compa
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There are several considerations in response to this question.
First, if an Actuarial Report has not been issued, the National Association of Insurance Commissioners (NAIC) Instructions to the P&C Statement of Actuarial Opinion say, “The Actuarial Report should be consistent with the documentation and disclosure requirements of ASOP No. 41, Actuarial Communications. Section 3.4.6 of ASOP No. 41 requires the Actuary to “disclose any relevant event that meets the following conditions:
COVID-19 was not declared a pandemic until March 11, 2020. Could there be any impact of COVID-19 on P&C claims incurred in 2019 and prior (in other words, the adequacy of loss and LAE reserves as of December 31, 2019)?
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The short answer is yes. There are many issues arising from COVID-19 that could impact the duration and severity of claims incurred by a P&C insurer on or before December 31, 2019. These include:
Individual and Small Group Markets Committee Releases Issue Brief on Drivers of 2021 Health Insurance Premium Changes: The Effects of COVID-19
Individual and Small Group Markets Committee issue brief outlining the major factors driving premium changes for the next plan year. This year’s issue brief focuses primarily on the impact of COVID-19 on the 2021 premium rate filings.
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