The mission of the Casualty Actuarial and Statistical (C) Task Force is to identify, investigate and develop solutions to actuarial problems and statistical issues in the property/casualty insurance industry. The Task Force’s goals are to maintain the financial health of property/casualty insurers and to ensure that appropriate data regarding property/casualty insurance markets are available.
Ongoing Maintenance of NAIC Programs, Products or Services:
1. Provide reserving, pricing, ratemaking, statistical and other actuarial support to NAIC committees, task forces and working groups. Propose changes to the appropriate work products (with the most common work products noted below) and present comments on proposals submitted by others relating to casualty actuarial and statistical matters. Monitor the activities, including the development of financial services regulations and statistical (including disaster) reporting, relating to casualty actuarial issues.—Essential
- Blanks (E) Working Group (property/casualty annual statement, including Schedule P; property/casualty quarterly statement; property/casualty quarterly and annual statement instructions, including Statement of Actuarial Opinion and Actuarial Opinion Summary Supplement).
- Statutory Accounting Principles (E) Working Group and Emerging Accounting Issues (E) Working Group (Accounting Practices and Procedures Manual). Review and provide comments on statutory accounting issues being considered under Statement of Statutory Accounting Principles (SSAP) No.—65 Property and Casualty Contracts.
- Capital Adequacy (E) Task Force (property/casualty RBC report).
- Financial Analysis Handbook (E) Working Group (property/casualty actuarial sections of the Financial Analysis Handbook).
- Financial Examiners Handbook (E) Technical Group (property/casualty actuarial sections of the Financial Condition Examiners Handbook).
- Operational Efficiencies (EX) Working Group (property/casualty actuarial sections of the Product Filing Review Handbook).
2. Appoint an Actuarial Opinion (C) Subgroup to propose revisions to the following, as needed, especially to improve actuarial opinions and the regulatory analysis of actuarial opinions and loss and premium reserves.—Essential
- Financial Analysis Handbook
- Financial statement instructions
- Regulatory guidance to appointed actuaries
3. Appoint a Risk-Focused Surveillance (C) Subgroup to recommend charges to aid implementation of the risk-focused examination process and the use of the property/casualty actuarial specialists.—Essential
4. Appoint a Statistical (C) Subgroup to do the following.—Essential
a. Consider updates and changes to the Statistical Handbook of Data Available to Insurance Regulators.
b. Consider updates and developments, provide technical assistance and oversee the production of the following reports and databases. Also, periodically evaluate the demand, utility and income derived versus the costs of production of each product.—Essential
- Dwelling Fire, Homeowners Owner-Occupied, and Homeowners Tenant and Condominium/Cooperative Unit Owners Insurance.
- Auto Insurance Database.
- Competition Database Report.
5. Appoint a Profitability (C) Working Group to produce the Report on Profitability by Line by State on an annual basis. —Essential
6. Provide property/casualty actuarial advice and assistance regarding the Solvency Modernization Initiative, including providing commentary as needed on relevant draft reports of the International Actuarial Association (IAA) and other international bodies. Monitor activities related to establishing life insurance principle-based reserving and provide guidance based on experiences with establishing property/casualty principle-based reserving.—Important
7. Monitor national casualty actuarial developments and consider regulatory implications.—Important
- Casualty Actuarial Society (Statements of Principles and Syllabus of Basic Education).
- American Academy of Actuaries (AAA) (Standards of Practices, Council on Professionalism and Casualty Practice Council).
- Society of Actuaries (general insurance track).
- Federal legislation.
8. Appoint a Joint Qualified Actuary (A/B/C) Subgroup to do the following.—Important
a. Recommend a uniform definition of “qualified actuary” for life, health and property/casualty appointed actuaries signing prescribed Statements of Actuarial Opinion, identifying any differences that should remain between lines of business. Recommend a uniform definition of “qualified actuary” for other regulatory areas (e.g., rate filings, hearings). Consistency between uses is preferred, to the extent appropriate.
b. In performance of actuarial work upon which the regulators might rely, recommend a definition of “inappropriate or unprofessional actuarial work” and recommend a process (which could be an existing process) for regulatory and/or professional organizations’ action(s). If needed, recommend a means of implementation through a model act, regulation or other means.
9. Appoint an Appointed Actuary (C) Subgroup to do the following.—Important
a. Receive the approved Request for Model Law Development for the Property and Casualty Actuarial Opinion Model Law (#745) to consider granting authority to commissioners to take action against actuaries who provide inaccurate, incomplete or otherwise poor-quality actuarial opinions and provide a recommendation to the Task Force for changes to Model #745, through the following activities:
1) Receive recommendations from the Joint Qualified Actuary (A/B/C) Subgroup regarding a definition of “appointed actuary,” the handling of “inappropriate or unprofessional actuarial work” and a recommended process for regulatory disciplinary actions, if desired.
2) Engage interested parties to assist the Subgroup in assessing the impact of the Joint Qualified Actuary (A/B/C) Subgroup’s recommendations.
b. Continue dialogue with the Actuarial Board for Counseling and Discipline, the AAA Council on Professionalism and the AAA Casualty Practice Council to address regulator concerns expressed in the 2012 Casualty Actuarial and Statistical (C) Task Force survey about the actuarial guidance and discipline process.
10. Appoint an Actuarial ORSA (C) Subgroup to do the following.—Essential
a. Monitor Own Risk and Solvency Assessment (ORSA) activities, including the activities of the Own Risk and Solvency Assessment (ORSA) (E) Subgroup, the AAA, the IAA and other relevant associations.
b. Assist the ORSA (E) Subgroup with the quantitative aspects of ORSA.
c. Provide guidance for the financial and actuarial regulator, as needed.
d. Coordinate training for regulatory actuaries, as needed.
11. Appoint an Actuarial IRIS 11-13 (C) Subgroup to do the following.—
a. Verify the formulas for IRIS ratios 11, 12 and 13 are accurate and efficient calculations of the ratios.
b. Ensure that there is consistency between the IRIS ratio 11-13 formulas and related NAIC documents, including annual financial statement blanks, Schedule P, the actuarial opinion instructions and the actuarial supplemental procedures of the Financial Analysis Handbook.
c. Establish a range for the usual/unusual values for each IRIS ratio (11-13).
d. Provide a written report to the Task Force.
12. Make a recommendation by July 1, 2015, regarding the ability of SOA members who obtain the SOA fellowship in general insurance and meet U.S. qualification standards to sign actuarial opinions for NAIC property/casualty annual statements. If appropriate, follow the recommendation with a blanks proposal to allow SOA members who obtain the SOA fellowship in general insurance and meet U.S. qualification standards to sign Property/Casualty Statements of Actuarial Opinion.