Actuarial Aspects of Financial; Reporting

Financial reports of property/casualty insurance companies are notoriously difficult to interpret. A major reason for this difficulty is that the actuarially generated elements of those statements are usually not understood. Often they are not even identifiable. By the use of a fairly simple model, relationships between actuarial analysis and financial statement figures can be displayed. Once the sources of data in. actuarial databases and the flow of actuarial projections in financial statements are identified at the conceptual level, progress can be made toward financial reports with which non-actuaries can feel comfortable.