The ASB recently approved a fourth exposure draft of a proposed new ASOP titled Modeling. The proposed ASOP will provide guidance to actuaries in any practice area when performing actuarial services with respect to designing, developing, selecting, modifying, or using all types of models. The third exposure draft of the proposed ASOP was released in June 2016. Twenty-eight comment letters were received and considered in making changes that are reflected in the fourth exposure draft. Changes made to the fourth exposure draft include clearer accommodation of other forms of modeling (such as predictive and statistical modeling) different from those of financial projection modeling; a revision of section 1.2., Scope, to remove the concept of “simple models”; and inclusion of new section 3.4, Reliance on Experts. The comment deadline for the fourth exposure draft, which can be viewed under the “Drafts” tab in “Current Exposure Drafts”, is May 15, 2019. Information on how to submit comments can be found in the draft.
The ASB approved a third exposure draft of a proposed new ASOP titled Capital Adequacy Assessment. The ASOP will provide guidance to actuaries when performing professional services with respect to a review of the resiliency of an insurer through a capital adequacy assessment. The standard applies to actuaries involved in capital adequacy assessment work for life or health insurers (including fraternal benefit societies and health benefit plans), property and casualty insurers, mortgage and title insurers, financial guaranty insurance companies, risk retention groups, public entity pools, captive insurers, and similar entities or a combination of such entities, when affiliated (collectively, referred to as “insurer”). Notable changes include modifications to the scope to expand the term “insurer” to include reinsurers and self-insurance plans; to clarify that groups that include at least one insurer are covered; and to clarify how reviewers of a capital assessment would satisfy the requirements of the ASOP. The comment deadline for the third exposure draft, which can be viewed under the “Drafts” tab in “Current Exposure Drafts”, is March 1, 2019. Information on how to submit comments can be found in the draft.
The ASB approved an exposure draft of a revision of ASOP No. 32, Social Insurance. The standard applies to actuaries when performing actuarial services when the actuary’s principal is a government agency with responsibility for the valuation of a Social Insurance Program. The standard also applies to actuaries with oversight responsibility for the actuarial services for Social Insurance Programs when serving as an auditor, reviewer, a member of an actuarial advisory committee, or a member of a technical panel. ASOP No. 32 was originally adopted in January 1998 and updated only for deviation language in 2011. In 2016, the ASB reviewed ASOP No. 32 and appointed a task force to further review and produce an exposure draft of a revised standard. The reasons for the revision included updating guidance to reflect changes in government programs as well as in standards in related practice areas that have evolved significantly since 1998. The comment deadline for the exposure draft, which can be viewed under the “Drafts” tab in “Current Exposure Drafts”, is Feb. 1, 2019. Information on how to submit comments can be found in the draft.
The Actuarial Standards Board (ASB) sets standards for appropriate actuarial practice in the United States through the development and promulgation of Actuarial Standards of Practice (ASOPs). These ASOPs describe the procedures an actuary should follow when performing actuarial services and identify what the actuary should disclose when communicating the results of those services.