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.
