The ASB released its 2018 Annual Report. Last year the ASB adopted one new ASOP and two revised ASOPs, approved five exposure drafts for comment, and approved one proposal to revise one existing ASOP. In addition, the board presented a professionalism series webinar, “The Anatomy of ASOPs,” and provided content for several Actuarial Update Professionalism Counts articles.
The ASB recently approved an exposure draft of a revision of ASOP No. 22, Statements of Actuarial Opinion Based on Asset Adequacy Analysis for Life or Health Liabilities. The standard applies to actuaries when performing actuarial services with respect to providing a statement of actuarial opinion (SAO) related to asset adequacy analysis of life or health liabilities, when the SAO is prepared to comply with applicable law based on the model Standard Valuation Law and VM-30 of the NAIC Valuation Manual, or when the SAO is prepared to comply with other applicable law. Changes to the exposure draft include revising the purpose and scope in sections 1.1 and 1.2 from applying to actuaries when providing a SAO for life and health insurers to applying to actuaries when providing a SAO relating to asset adequacy analysis of life and health liabilities. The title of the ASOP was changed to reflect the changes in purpose and scope. In addition, references to Actuarial Compliance Guideline No. 4, Statutory Statements of Opinion Not Including an Asset Adequacy Analysis by Appointed Actuaries for Life and Health Insurers, were removed because the current Standard Valuation Law requires all reserve opinions to be based on asset adequacy analysis. The comment deadline for the exposure draft, which can be viewed under the “Drafts” tab in “Current Exposure Drafts”, is June 1, 2019. Information on how to submit comments can be found in the draft.
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.
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About The ASB
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.