ASB Adopts Revision of ASOP No. 38

The Actuarial Standards Board (ASB) of the American Academy of Actuaries recently adopted a final revision of Actuarial Standard of Practice (ASOP) No. 38, now titled Catastrophe Modeling (for All Practice Areas). The standard provides guidance to actuaries when performing actuarial services with respect to selecting, using, reviewing, or evaluating catastrophe models. The standard applies to actuaries in any practice area when performing actuarial services with respect to selecting, using, reviewing, or evaluating catastrophe models to assess risk, including but not limited to models of hurricanes, earthquakes, severe convective storms, terrorist acts, and pandemics. The standard also applies to the selection, use, review, or evaluation of catastrophe models, whether or not they are proprietary in nature. The ASOP was revised to be consistent with ASOP No. 56, Modeling, and other recent ASOPs. The standard is effective for work performed on or after Dec. 1, 2021.