FW: Statement of Opinion Question by "BRAD GILE" <bgile@amfam.com>

Todd R. Bault ( (no email) )
Wed, 8 Apr 1998 09:07:53 -0500

While I agree that Blanchard's and Miller's replies reflect the "letter of
the law" and probably would be acceptable for an actuarial opinion, Gile
points outs the counterintuitive nature of the result. Such an opinion
would probably provoke a layperson to ask what good is an actuarial opinion
if it allows companies to be insolvent. I'm sure we could convince other
actuaries that Blanchard and Miller are correct, but I don't think that my
mother would buy it.

This is a good example of how actuaries probably need to be more pro-active
in keeping their profession relevant. While I certainly don't expect
individual actuaries to go out on a limb and put themselves in jeopardy,
this example indicates to me that we, as a profession, should be moving
quickly towards opining on the entire balance sheet. If we are not willing
to do this, we could eventually be cut out of the process in favor of those
who are willing to take on this job.

Todd Bault, FCAS

The opinions expressed above are mine alone, and do not necessarily reflect
the views of other parties.

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