CAS Publishes Fair Value Concepts Book

The Casualty Actuarial Society has released to the membership its newest publication, Fair Value of P&C Liabilities: Practical Implications. The book is the result of two commissioned analyses showing the impact of fair value concepts applied to property/casualty insurance companies. Fair Value will be mailed to CAS members and other interested parties this spring and will be available on the CAS Web Site in the "What's New" section.

In fall 2003, the CAS sent out an RFP to selected consulting firms seeking research on the impact of fair value concepts on property/casualty insurance company financial statements. The RFP called for information on the time value of money (versus not reflecting the time value of money, which is the most common U.S. GAAP practice); and risk margins to reflect the market charge for uncertainty.

The CAS awarded the commissions to PricewaterhouseCoopers LLP (PwC) and Towers Perrin. Authors from the two firms will participate in the general session of the CAS Spring Meeting, "Fair Value Accounting—Can It Work?" The session is scheduled for May 19 in Colorado Spring, CO.