CAS Rescinds Statements of Principles
The CAS Board of Directors unanimously approved rescinding the following CAS Statements of Principles:
- Statement of Principles regarding Property and Casualty Insurance Ratemaking (May 1988)
- Statement of Principles regarding Property and Casualty Valuations (September 1989)
- Statement of Principles regarding Property and Casualty Unpaid Claims Estimates (November 2014); this version replaced the original Statement of Principles regarding Property and Casualty Loss and Loss Adjustment Expense Reserves from May 1988
The original Statements of Principles were drafted before any Actuarial Standards of Practice were developed or promulgated by the Actuarial Standards Board. The adoption of the 50+ Actuarial Standards of Practice in the United States over the past 30 years, as well as the adoption of standards in many other jurisdictions, has resulted in considerable overlap between certain standards and the Statements of Principles. Therefore, the CAS Board determined that the Statements were no longer necessary and that rescinding them will eliminate any confusion that may have existed between actuarial principles and actuarial standards.
While the Statements of Principles were intended to articulate common actuarial tenets and serve as foundations for the development of the Actuarial Standards of Practice, the Statements included several instances of standards-type concepts and language that could be perceived as practice guidance, which was never their intent. In rescinding the Statements, the Board also noted that the tenets of the Statements were not intended to be enforceable in actuarial discipline cases in the way that actuarial standards are referenced in in the Code of Professional Conduct.