Who are Providing Actuarial Opinions and is Management Paying Attention to Them?

Hayden Burrus, FCAS, MAAA gathered some interesting statistics on opining actuaries and their actuarial opinion at The American Academy of Actuaries Effective Loss Reserve Opinion Seminar earlier this month.

  • Only 9% of all members of the casualty actuarial society (FCAS or ACAS) sign an actuarial opinion in any given year.
  • 64% of those opining actuaries are consultants employed independently from the insurance company.
  • 27% of those opining actuaries opined on only 1 insurance company.
  • 7% of those opining actuaries are opining on at least 14 insurance companies.
  • 85% of all insurance companies do not book the opining actuary’s estimate of liabilities for loss and loss adjustment expense reserves.
  • Twice as many insurance companies booked loss reserves above the actuarial estimate as below the actuarial estimate.
  • The percentage of companies booking loss reserves below the actuarial estimate has risen significantly in the past five years.

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