The proposed revision to ASOP No. 5 reflects a number of changes to other standards that have been made since the 2000 revision, and includes key changes such as explicitly addressing certain considerations in estimating and analyzing incurred claims, including behavior of claimants, claim seasonality, credibility, payments and recoveries under government programs, and the purpose and intended use of the unpaid claim estimate.
The proposed new ASOP Property/Casualty Ratemaking addresses items in the Considerations section of the Statement of Principles Regarding Property/Casualty Ratemaking, as well as ratemaking items not currently addressed in existing ASOPs. Changes made in response to comments received on the September 2014 first exposure draft include revisions to the scope of the ASOP to clarify the practice areas for which it is applicable and the actuarial activities to which it is applicable; and provides guidance regarding the estimating of future costs in total as well as by underlying levels that comprise the estimate of future cost.
The comment deadline for both exposure drafts is April 30, 2016 and can be viewed under the “Drafts” tab in “Current Exposure Drafts.”
