Actuarial Report Important For Budgeting
The actuarial report consists of a document or other presentation, prepared as a formal means of conveying the actuary’s professional conclusions and recommendations, of recording and communicating the methods and procedures, of assuring that the parties addressed are aware of the significance of the actuary’s opinion or findings and that documents the analysis underlying the opinion.

Insureds who are using a Captive, Large Deductible, or Self Insurance Workers Compensation program should pay very close attention to the variables that are input into the Actuarial Report. On page 31 of the Actuarial Guidelines, all the components of an actuarial report are listed in detail. They are below.
The Actuarial Opinion must include assurance that an Actuarial Report and underlying actuarial workpapers supporting the actuarial opinion will be maintained at the company and available for regulatory examination for seven years. The Actuarial Report contains significant proprietary information. It is expected that the Report be held confidential and not intended for public inspection. The report must be available by May 1 of the year following the year-end for which the opinion was rendered or within two weeks after a request from an individual state commissioner.
The Actuarial Report should be consistent with the documentation and disclosure requirements of ASOP # 9. The Actuarial Report should contain both narrative and technical components. The narrative component should provide sufficient detail to clearly explain to company management, the regulator, or other authority the findings, recommendations and conclusions, as well as their significance. The technical component should provide sufficient documentation and disclosure for another actuary practicing in the same field to evaluate the work. This technical component must show the analysis from the basic data, e.g., loss triangles, to the conclusions.
The Report must also include:
An exhibit which ties to the Annual Statement and compares the Actuary’s conclusions to the carried amounts;

Summary exhibit(s) of either the actuary’s best estimate, range of reasonable estimates, or both, that led to the conclusion in the OPINION paragraph regarding the reasonableness of the provision for all unpaid loss and loss adjustment expense obligations;Set NextGEN featured image
Documentation of the required reconciliation from the data used for analysis to the Annual Statement Schedule P
Extended comments on trends that indicate the presence or absence of risks and uncertainties that could result in material adverse deviation; and
Extended comments on factors that led to unusual IRIS ratios for One-Year Reserve Development to Surplus, Two-Year Reserve Development to Surplus, or Estimated Current Reserve Deficiency to Surplus, and how these factors were addressed in prior and current analyses.
Please note that the above is very general and not necessarily Workers Comp specific
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