1990 marked a significant turning point in loss reserve opinions.
A most significant and positive action was taken at the June 1990 meeting of the National Assocation of Insurance Commisioners (NAIC). The NAIC adopted a requirement, applicable in all states, for an actuarial opinion on the loss reserves of all but the smallest companies effective with filings of the 1990 Annual Statements. This achieves a goal the casualty actuarial profession has been working towards for at least 15 years.
The NAIC Blanks Task Force suspended its rules in order to make this change effective for this year. The opening sentence of the revised Section 12 of the Annual Statement Instructions: Property and Casualty now reads:
There is to be included or attached to Page 1 of the Annual Statement, the statement of a qualified actuary, entitled “Statement of Actuarial Opinion,” setting forth his or her opinion relating to loss and loss adjustment reserves.
This sentence specifies an actuarial opinion, whereas previously the opinion was issued by a loss reserve specialist. The requirement now applies in all states, whereas previously it was a discretionary matter on a state by state basis. It also changes the due date from April 1 to March 1.
