The ASB recently approved a second exposure draft of a proposed ASOP titled Capital Adequacy Assessment for Insurers. The proposed ASOP will apply 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. Key changes from the first exposure draft include clarifying how the ASOP applies to insurers that are part of a group or operate across jurisdictions, adding “risk retention groups” and “public entity pools” to the scope, and modifying definitions of “risk capital threshold” and “risk capital target.” The comment deadline for the second exposure draft, which can be viewed under the “Drafts” tab in “Current Exposure Drafts”, is March 1, 2018. Information on how to submit comments can be found in the draft.
