ASB Approves ASOP No. 20 Revision for Exposure
The Actuarial Standards Board (ASB) of the American Academy of Actuaries approved an exposure draft of a revision of Actuarial Standard of Practice (ASOP) No. 20, now titled Discounting of Property/Casualty Claim Estimates. The ASOP applies to actuaries when performing actuarial services that involve the discounting of claim estimates for property/casualty coverages to a present value.
Notable changes made to the exposure draft include expanding the scope of the standard to include the discounting of future claim estimates for prospective risk transfer or risk retention, as addressed by ASOP No. 53, Estimating Future Costs for Prospective Property/Casualty Risk Transfer and Risk Retention; adding definitions for such terms as “claim estimate,” “insurance risk,” and “coverage;” and adding guidance on discount rate selection and appropriateness.
The comment deadline is Sept. 30, 2022. Information on how to submit comments can be found in the exposure draft.