The November 1993 AR ran a brief announcement that signaled the beginning of casualty practice notes. The first practice note, “Statement of Actuarial Opinion on Loss and Loss Adjustment Expense Reserves,” has been updated and revised annually, and it continues to serve as an important reference for any member providing an actuarial opinion on loss reserves.
Casualty Practice Council to issue practice notes
WASHINGTON, D.C. — In recognition of casualty actuaries’ need for guidance on current actuarial practices that are the subject of a standard of practice or compliance guideline, the Casualty Practice Council (CPC) of the American Academy of Actuaries (AAA) has announced plans to issue practice notes.
The first practice notes will be on the Statement of Actuarial Opinion on Loss and Loss Adjustment Expense Reserves. This information is expected to be released shortly and will be mailed to all casualty actuary members of the AAA for use in year-end preparations.
Practice notes are intended to supplement the available actuarial literature where the areas of practice addressed are subject to emerging technology or recently adopted external requirements. They are not interpretations of standards, nor do they convey generally accepted actuarial practices in the same sense that standards of practice do. Actuaries are not in any way bound to follow practice notes.
Walter Wright, FCAS, retired as a principal from Oliver Wyman in 2008. He has volunteered for Actuarial Review since 1993 and served as AR editor in chief from 1998 to 2002.