The Actuarial Standards Board of the American Academy of Actuaries adopted a revision of Actuarial Standard of Practice (ASOP) No. 36, now titled Statements of Actuarial Opinion Regarding Property/Casualty Loss, Loss Adjustment Expense, or Other Reserves. The ASOP provides guidance to actuaries when performing actuarial services with respect to a written statement of actuarial opinion regarding property/casualty loss, loss adjustment expense, or other reserves. The ASOP underwent two exposure periods and received 13 comment letters. Notable changes from the existing ASOP No. 36 include expanding the purpose and scope beyond “issuing” and “providing” to “performing actuarial services with respect to a written statement of actuarial opinion regarding property/casualty loss, loss adjustment expense, or other reserves”; adding definitions for “counterparty” and “recoverable”; and revising guidance on the stated basis of the reserve to include characteristics of other reserves being opined upon.
Successively, the scope of the 2022 adopted revision of ASOP No. 28, Statements of Actuarial Opinion Regarding Health Insurance Assets and Liabilities, was further revised to clarify that ASOP No. 36 may apply to the standard in addition to ASOP No. 28 and ASOP No. 22, Statements of Actuarial Opinion Based on Asset Adequacy Analysis for Life Insurance, Annuity, or Health Insurance Reserves and Other Liabilities.
The effective date for ASOP Nos. 28 and 36 is Oct. 1, 2024.
