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:
- 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 SSAP No.–65 Property and Casualty Contracts.
- Capital Adequacy (E) Task Force (property/casualty risk-based capital 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 Examiners Handbook).
- Identify the types of data that are necessary to properly evaluate the medical liability insurance market — including the frequency, severity and causes of loss—in order to evaluate regulatory and legislative proposals. Identify the sources of this data and the steps necessary to capture it, including changes needed in the Statistical Handbook of Data Available to Insurance Regulators, and the need to develop claims databases or other appropriate means of capturing the necessary information.—Essential
- 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
- Report on Profitability by Line by State (Charge the Profitability (C) Working Group with producing this report on an annual basis.).
- Homeowners Average Premium Report.
- Auto Insurance Database.
- Market Share Reports for Groups and Companies – Property/Casualty.
- Property and Casualty Competition Database Report.
- Monitor activities related to establishing life insurance principle-based reserving and provide guidance based on experiences with establishing property/casualty principle-based reserving.—Important
- 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 (Standards of Practices, Council on Professionalism, and Casualty Practice Council).
- Federal legislation.
- Provide property/casualty actuarial advice and assistance to the Solvency Modernization Initiative (E) Task Force and its working groups, including providing commentary as needed on relevant draft reports of the International Actuarial Association and other international bodies.—Important
- Determine whether the activities performed by Towers Watson fit under the definition of “advisory organization” or “statistical agent” contained in the NAIC property and casualty model rating law guidelines (Model Law’s #1775, #1776, and #1780). —Important
- Charge the Joint Qualified Actuary (A/B/C) Subgroup to do the following:—Important
- Recommend a uniform definition of “qualified actuary” for life, health and P&C 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.
- 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.
NAIC Support Staff: Kris DeFrain/Aaron Brandenburg