The Actuarial Standards Board (ASB) of the American Academy of Actuaries approved an exposure draft of a proposed revision of Actuarial Standard of Practice (ASOP) No. 36, now titled Statements of Actuarial Opinion Regarding Property/Casualty Loss, Loss Adjustment Expense, or Other Reserves. The ASOP applies to actuaries when performing actuarial services with respect to a written statement of actuarial opinion regarding property/casualty loss, loss adjustment expense, or other reserves of an insurance company or other property/casualty risk financing system when 1) the statement of actuarial opinion is prepared to comply with the NAIC Property/Casualty Annual Statement Instructions; or 2) the statement of actuarial opinion is otherwise prescribed by applicable law (statutes, regulations, and other legally binding authority); or 3) the statement of actuarial opinion is represented by the actuary as complying with the standard. “Other reserves” include such items as retrospective reinsurance premium reserves, unearned premium reserves for property/casualty long duration contracts, unearned premium reserves for extended reporting endorsements, or other reserve items for which the actuary is providing a statement of actuarial opinion.
In addition, the ASB approved an exposure draft of a proposed revision of the scope of ASOP No. 28, Statements of Actuarial Opinion Regarding Health Insurance Assets and Liabilities. The scope of ASOP No. 28 is being revised to remove a conflict with ASOP No. 36. The current guidance excludes statements of actuarial opinion subject to ASOP No. 36 from the scope. The revision removes that exclusion and clarifies that if an actuary issues a statement of actuarial opinion that includes both health insurance assets and liabilities, and property/casualty insurance loss and loss adjustment expense reserves, both ASOP Nos. 28 and 36 may apply.
The comment deadline for both exposure drafts is Sept. 30, 2022. Information on how to submit comments can be found in the drafts.