CAS Board Agrees to Reinstate Ratemaking Principles
The CAS Board of Directors agreed to reinstate the Statement of Principles regarding Property and Casualty Insurance Ratemaking (Ratemaking Principles), for reference for U.S.-regulated ratemaking.
Last year, the Board decided to rescind the Statements of Principles related to ratemaking, reserving, and valuation. Following the decision, key stakeholders raised concerns with the Board’s action on the Ratemaking Principles, prompting the Board to seek more information regarding the concerns by inviting feedback.
Stakeholders expressed that the Ratemaking Principles should be reinstated because they are frequently referenced by CAS members to support rate filings, in litigation, and for expert testimony, and they provide a concise and understandable explanation of actuarial ratemaking for non-actuaries and regulators.
In reinstating the Principles for reference for U.S.-regulated ratemaking, the Board acknowledged that actuarial practices differ around the world and that the concerns raised by the rescindment were U.S.-based. All CAS members must adhere to regulations and actuarial standards of practice applicable to their jurisdiction, as well as the CAS Code of Conduct.
The CAS Board appreciates the feedback it has received throughout the process of considering the future of the Ratemaking Principles.