Mission

The mission of the Casualty Actuarial and Statistical (C) Task Force is to identify, investigate and develop solutions to actuarial problems and statistical issues in the property/casualty (P/C) insurance industry.

The Task Force's goals are to assist state insurance regulators with maintaining the financial health of P/C insurers; ensuring P/C insurance rates are not excessive, inadequate or unfairly discriminatory; and ensuring that appropriate data regarding P/C insurance markets are available.

2020 Proposed Charges

1. The Casualty Actuarial and Statistical (C) Task Force will:
   1. Provide reserving, pricing, ratemaking, statistical and other actuarial support to NAIC committees, task forces and/or working groups. Propose changes to the appropriate work products (with the most common work products noted below) and present comments on proposals submitted by others relating to casualty actuarial and statistical matters. Monitor the activities, including the development of financial services regulations and statistical (including disaster) reporting, relating to casualty actuarial issues.
      1. Property and Casualty Insurance (C) Committee – ratemaking, reserving or data issues.
      2. Blanks (E) Working Group – P/C annual financial statement, including Schedule P; P/C quarterly financial statement; P/C quarterly and annual financial statement instructions, including Statement of Actuarial Opinion (SAO) and Actuarial Opinion Summary Supplement.
      3. Capital Adequacy (E) Task Force – P/C risk-based capital (RBC) report.
      4. Group Solvency Issues (E) Working Group and ORSA Implementation (E) Subgroup – Own Risk and Solvency Assessment (ORSA).
      5. Statutory Accounting Principles (E) Working Group – Accounting Practices and Procedures Manual (AP&P Manual), and review and provide comments on statutory accounting issues being considered under SSAP No. 65—Property and Casualty Contracts.
      6. Speed to Market (EX) Working Group – P/C actuarial sections of the Product Filing Review Handbook.
   2. Monitor national casualty actuarial developments and consider regulatory implications.
      1. Casualty Actuarial Society (CAS) – Statements of Principles and Syllabus of Basic Education.
      2. American Academy of Actuaries (Academy) – Standards of Practices, Council on Professionalism, and Casualty Practice Council.
      3. Society of Actuaries (SOA) – general insurance track’s basic education.
      4. Federal legislation.
   3. Facilitate discussion among state insurance regulators regarding rate filing issues of common interest across the states through the scheduling of regulator-only conference calls.
   4. Work with the CAS and SOA to identify: 1) whether the P/C Appointed Actuaries’ logs of continuing education (CE) should contain any particular categorization to assist regulatory review; 2) what types of learning P/C Appointed Actuaries are using to meet CE requirements for “Specific Qualification Standards” today; and 3) whether more specificity should be added to the P/C Appointed Actuaries’ CE requirements to ensure that CE is aligned with the educational needs for a P/C Appointed Actuary.
   5. In coordination with the Big Data (EX) Working Group: 
      1. Develop an attestation an actuary must complete and sign annually to verify the actuary is qualified to sign a statutory P/C Statement of Actuarial Opinion.
      2. Work with the Academy to add clarity to the required three-year experience period in the U.S. Qualification Standards.
   6. Work with the CAS and SOA to identify: 1) whether the P/C Appointed Actuaries' logs of continuing education (CE) should contain any particular categorization to assist regulatory review; 2) what types of learning P/C Appointed Actuaries are using to meet CE requirements for "Specific Qualification Standards" today; and 3) whether more specificity should be added to the P/C Appointed Actuaries' CE requirements to ensure CE is aligned with the educational needs for a P/C Appointed Actuary.
   7. In coordination with the Big Data (EX) Working Group:
      1. Draft and propose changes to the Product Filing Review Handbook to include best practices for review of predictive models and analytics filed by insurers to justify rates.
      2. Draft and propose state guidance (e.g., information, data) for rate filings that are based on complex predictive models.
      3. Facilitate training and the sharing of expertise through predictive analytics webinars (aka "Book Club").
2. The Actuarial Opinion (C) Working Group will:
   
   1. Propose revisions to the following, as needed, especially to improve actuarial opinions, actuarial opinion summaries, and actuarial reports, as well as the regulatory analysis of these actuarial documents and loss and premium reserves:
      1. Financial Analysis Handbook.
      2. Financial Condition Examiners Handbook
      3. Annual Statement Instructions—Property/Casualty.
      4. Regulatory guidance to appointed actuaries and companies.
      5. Other financial blanks and instructions, as needed.
3. The Statistical Data (C) Working Group will:
   
   1. Consider updates and changes to the Statistical Handbook of Data Available to Insurance Regulators.
   2. Consider updates and developments, provide technical assistance, and oversee the production of the following reports and databases. Periodically evaluate the demand and utility versus the costs of production of each product.
      1. Dwelling Fire, Homeowners Owner-Occupied, and Homeowners Tenant and Condominium/Cooperative Unit Owners Insurance.
      2. Auto Insurance Database.
      3. Competition Database Report.
      4. Report on Profitability by Line by State.

2019 Charges

1. The Casualty Actuarial and Statistical (C) Task Force will:
   1. Provide reserving, pricing, ratemaking, statistical and other actuarial support to NAIC committees, task forces and/or working groups. Propose changes to the appropriate work products (with the most common work products noted below) and present comments on proposals submitted by others relating to casualty actuarial and statistical matters. Monitor the activities, including the development of financial services regulations and statistical (including disaster) reporting, relating to casualty actuarial issues.
      1. Blanks (E) Working Group (property/casualty [P/C] annual financial statement, including Schedule P; P/C quarterly financial statement; P/C quarterly and annual financial statement instructions, including Statement of Actuarial Opinion and Actuarial Opinion Summary Supplement).
      2. Statutory Accounting Principles (E) Working Group (Accounting Practices and Procedures Manual). Review and provide comments on statutory accounting issues being considered under SSAP No. 65-Property and Casualty Contracts.
      3. Capital Adequacy (E) Task Force (P/C risk-based capital [RBC] report).
      4. Financial Analysis Handbook (E) Working Group (P/C actuarial sections and other sections regarding the use of P/C actuaries in the risk-focused examination process of the Financial Analysis Handbook).
      5. Financial Examiners Handbook (E) Technical Group (P/C actuarial sections and other sections regarding the use of P/C actuaries in the risk-focused examination process of the Financial Condition Examiners Handbook).
      6. Speed to Market (EX) Working Group (P/C actuarial sections of the Product Filing Review Handbook).
      7. Auto Insurance (C/D) Working Group (affordability, data call, any remaining issues related to price optimization).
   2. Monitor national casualty actuarial developments and consider regulatory implications.
      1. Casualty Actuarial Society (CAS) (Statements of Principles and Syllabus of Basic Education).
      2. American Academy of Actuaries (Academy) (Standards of Practices, Council on Professionalism and Casualty Practice Council).
      3. Society of Actuaries (SOA) (general insurance track).
      4. Federal legislation.
   3. Monitor activities related to the Own Risk and Solvency Assessment (ORSA), including the activities of the Group Solvency Issues (E) Working Group, the Academy, the International Actuarial Association (IAA) and other relevant organizations.
   4. Facilitate discussion among regulators regarding rate filing issues of common interest across states through the scheduling of regulator-only conference calls.
   5. In coordination with the Executive (EX) Committee, conduct the following work related to P/C Appointed Actuaries:
      1. Develop an attestation an actuary must complete and sign annually to verify the actuary is qualified to sign a statutory P/C Statement of Actuarial Opinion.
      2. Work with the Academy to add clarity to the required three-year experience period in the U.S. Qualification Standards.
   6. Work with the CAS and SOA to identify: 1) whether the P/C Appointed Actuaries' logs of continuing education (CE) should contain any particular categorization to assist regulatory review; 2) what types of learning P/C Appointed Actuaries are using to meet CE requirements for "Specific Qualification Standards" today; and 3) whether more specificity should be added to the P/C Appointed Actuaries' CE requirements to ensure CE is aligned with the educational needs for a P/C Appointed Actuary.
   7. In coordination with the Big Data (EX) Working Group:
      1. Draft and propose changes to the Product Filing Review Handbook to include best practices for review of predictive models and analytics filed by insurers to justify rates.
      2. Draft and propose state guidance (e.g., information, data) for rate filings that are based on complex predictive models.
      3. Facilitate training and the sharing of expertise through predictive analytics webinars (aka "Book Club").
2. The Actuarial Opinion (C) Working Group will:
   
   1. Propose revisions to the following, as needed, especially to improve actuarial opinions, actuarial opinion summaries and actuarial reports, as well as the regulatory analysis of these actuarial documents and loss and premium reserves.
   2. Based on language for the Annual Statement Instructions—Property/Casualtyrequiring completion of the appointed actuary’s attestation of qualification, provide additional guidance in the 2019 regulatory guidance document.
      1. Financial Analysis Handbook.
      2. Annual Statement Instructions-Property/Casualty.
      3. Regulatory guidance to appointed actuaries and companies.
      4. Other financial blanks and instructions, as needed.
3. The Statistical Data (C) Working Group will:
   
   1. Consider updates and changes to the Statistical Handbook of Data Available to Insurance Regulators.
   2. Consider updates and developments, provide technical assistance, and oversee the production of the following reports and databases. Periodically evaluate the demand and utility versus the costs of production of each product.
      1. Dwelling Fire, Homeowners Owner-Occupied, and Homeowners Tenant and Condominium/Cooperative Unit Owners Insurance.
      2. Auto Insurance Database.
      3. Competition Database Report.
      4. Report on Profitability by Line by State.

NAIC Support Staff: Kris DeFrain/Jennifer Gardner/Libby Crews