Considerations Regarding Materiality and Range of Reserves in Connection With Actuarial Standard of Practice #36 [Discussion]

The Actuarial Standard of Practice No. 36 has highlighted several issues which have been implicitly cons/dared by property/casualty actuaries for years. For the first time, the types of statements of actuarial opinion have been standardized and listed for categorization by property/casualty actuaries. However, many other areas which the actuary needs to be familiar with are not documented in standard actuarial literature. This paper examines the interrelationship of materiality and range of reasonable reserves. Some common rules of thumb are formulated in regards to the range of reasonable reserve estimates.