Professional Guidance for Casualty Actuaries in Australia, Canada, United Kingdom and USA

Between 1985 and 1987, the professional actuarial bodies in Australia, Canada, United Kingdom and USA have issued or updated guidance notes on actuarial work in property-casualty insurance. The paper reviews the status and authority of the guidance notes. They do not attempt to lay down standards to be followed but describe principles which it is expected the actuary will follow other than in exceptional circumstances. The Draft Statement issued by the Casualty Actuarial Society in December 1986 stands out as the document in which technical principles are discussed. Each document reflects the environment in which the actuary works and thus there are differences in approach, sometimes quite fundamental. Sections of the paper review the guidance given on: Data, Policy Liabilities, Claims Liabilities including variability and central or cautious estimates, Discounting, Relationships with other professionals and Reinsurance. The authors believe that the comparison indicates areas where a more common approach could be achieved and some problem areas which have not yet been fully covered. It is considered that as a result of this review same re-assessment of professional guidance may still be necessary.