The Actuarial Standards Board (ASB) of the American Academy of Actuaries recently approved an exposure draft of a proposed revision of Actuarial Standard of Practice (ASOP) No. 7, Life, Health, or Property/Casualty Insurance Cash Flow Risk. The proposed revision would apply to actuaries when performing actuarial services involving life or health cash flow risks, and also to actuaries when performing actuarial services involving property/casualty cash flow risks specific to investments.
Notable changes to ASOP No. 7 include broadening section 1.2, Scope, to include cash flow analysis an actuary performs for a noninsurance entity that insures or self-insures risk. The scope was also changed to apply to actuaries when performing actuarial services involving P/C investment cash flow risk. In addition, guidance was adjusted to include all types of cash flow analysis and to address when to perform a cash flow analysis.
As this standard applies to three practice areas, the ASB is asking for specific input from each practice area (see the Request for Comments section in the Transmittal Memo). In particular, the ASB asks three questions about how the standard applies to P/C actuaries, and one each for the life and health areas. Your input is important, so please take the time to review the draft and submit comments.
The comment deadline is June 1, 2024. Information on how to submit comments can be found in the draft.
