ASB Approves ASOP No. 29 Revision for Exposure

The Actuarial Standards Board (ASB) of the American Academy of Actuaries approved for exposure a revision of Actuarial Standard of Practice (ASOP) No. 29 now titled, Expense Provisions for Future Cost Estimates for Prospective Property/Casualty Risk Transfer and Risk Retention. The ASOP applies to actuaries when developing or reviewing expense provisions for future cost estimates for prospective property/casualty risk transfer or risk retention. This includes expense provisions developed or reviewed for insurance, reinsurance, self-insurance, loss portfolio transfers, or any other mechanisms for prospective property/casualty risk transfer or risk retention. If the actuary’s actuarial services involve reviewing expense provisions developed by another party, the actuary should use the guidance in this ASOP to the extent practicable. Notable changes made to the existing 1997 version include changing the scope to apply to risk transfer and risk retention consistent with ASOP No. 53, Estimating Future Costs for Prospective Property/Casualty Risk Transfer and Risk Retention, and clarifying the scope to include applicability to reviewing actuaries. The comment deadline is May 31, 2022. Information on how to submit comments can be found in the exposure draft.