Foreign Branch data in Schedule P
Blanchard, Ralph S ( (no email) )
(no date)
On the subject of Foreign Branch data in Schedule P
The NAIC - Casualty Actuarial Task Force is investigating if and/or how Schedule P should be adjusted to reflect foreign currency fluctuation impacts. (I work for an insurance company, not the NAIC or a state government, so this is not an official NAIC request, but I did attend the last meeting in Salt Lake City.) What I am wondering is whether this is a big deal. Are people aware in general as to whether this impacts companies much? Is it common for Schedule P - Part 2 loss development data to be distorted by foreign currency fluctuation? (I am assuming that the major cause of this foreign currency exchange (FX) exposure would be foreign, i.e., non-US branches).
If this is a material enough issue, then the focus should be on producing meaningful Schedule P adjustments. If this is not a material enough issue, then the focus should be on minimizing the cost of any proposed changes, or making no FX adjustments in Schedule P.
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