Statutory actuarial involvement in non-life reserving

Document description

The topic of statutory actuarial involvement in non-life reserving in the UK has been around for ages. It has recently been referred to in an FSA Consultation Paper (CP04/7), and the FSA is seeking views from interested parties. The UK actuarial profession is clearly one such interested party. However, before the profession propounds any particular position on the topic, it wishes to canvass the views of its members, in particular general insurance practitioners. It also wishes to discuss the topic with other stakeholders, such as the ABI. This paper has been commissioned by the General Insurance Board with these aims in mind. It takes no stance in favour of any specific option, but is intended to promote debate – starting at GIRO 2004 – which will help the profession to formulate its position on this important topic.

The paper identifies various issues that might be associated with a formal actuarial role within nonlife reserving. It then sets out some ways in which these issues could be used to argue both for and against the introduction of such a role. The authors are not schizophrenic – this format is merely to provoke thought about the various arguments amongst the readers. Therefore, there are some arguments or viewpoints put forward in this paper that none of the authors would support, but which they recognise that "some might say."

Whatever the arguments, the authors do not believe that this is a "take it or leave it" matter. They feel that a formal role for actuaries within non-life reserving could take many different forms, and that these should be considered before statutory actuarial involvement is either promoted or rejected. Some of these forms are also discussed briefly in the paper.