Risk Margins in Loss Reserves - Accounting Considerations

This panel will present practical methods of presenting and disclosing risk margins in property/casualty loss reserves given that loss reserves are discounted for future investment income. The panelist will discuss the risks to be included in a risk margin, alternative accounting methods to reflect the risk margin, and the implications for various reporting schedules and financial measures (e.g., IRIS ratios). The panel presumes that a suitable methodology exists to determine the risk margin provision.