What ever happened to the big picture? I always thought that the very
essence of our training as actuaries was to deal with the big picture.
Isn't that why we probably among the best people in the insurance
industry to handle CEOs jobs?
In any case, my take on this is YES, DO MENTION THAT THE COMPANY HAS
NEGATIVE SURPLUS, otherwise how good is your opinion especially to the
regulators. If most of us are using surplus for materiality criterion
and for comfort on a reasonable range of value, why does it suddenly
become "convenient" to ignore it when it's negative.
An earlier response mentioned the fact that we should be proactive, and
I couldn't agree more. Why do all the work and then let the auditors
handle the limelight (sic!)? One thing we can learn from them is that
they have started to realize that an audit is no good unless it also
helps management in dealing better with some issues. If we're number
crunchers then let's not be offended by such allegation, however, if we
consider ourselves business people, it's time we act as such.
By the way, in Canada, the P&C actuaries will soon have to perform DFA
as part of the statutory requirements. This is the way of the future
folks!
Andre Perez
KPMG Bermuda
Disclaimer: These are my own personal views and I take full
responsibility for them!
-- Andre Perez, FCAS FCIAAssociate & Consulting Actuary(441) 295-5063 x316
--The information in this email is confidential and may be legally privileged. It is intended solely for the addressee. Access to this email by anyone else is unauthorised. If you are not the intended recipient, any disclosure, copying, distribution or any action taken or omitted to be taken in reliance on it, is prohibited and may be unlawful.When addressed to our clients any opinions or advice contained in this email are subject to the terms and conditions expressed in the governing client engagement letter.
Visit the CAS Web Site at http://www.casact.org===============================================To subscribe or unsubscribe from CASNET:Send an e-mail to caslists@lists.casact.orgType in the body join casnet to subscribeor leave casnet to unsubscribe.