Casualty

The P/C Committee on Equity and Fairness (PCCEF) released an issue brief, Insurance Fraud: Impacts on Premiums, Claim Costs, and the Public. The brief discusses regulatory actions to prevent and report fraud and approaches actuaries can take to quantify the damage fraud causes.

The Extreme Events and Property Lines Committee submitted comments to the Federal Emergency Management Agency on their RFI on the redesign of the National Flood Insurance Program’s Community Rating System.

Academy Casualty Policy Analyst Rob Fischer provided an update on the Casualty Practice Council (CPC) activities of interest to NAIC’s Casualty Actuarial (C) Task Force, including an update on recent publications, and anticipated releases from other CPC workstreams of interest to the NAIC.

The Committee on Property and Liability Financial Reporting (COPFLR) asked the NAIC's Actuarial Opinion Working Group for clarification on 2024 regulatory guidance pertaining to immaterial long-duration unearned premium reserves.

The P/C Committee on Equity and Fairness sent a comment letter to the District of Columbia Department of Insurance, Securities and Banking (DISB) on the DISB’s recently released draft market conduct study, Evaluating Unintentional Bias in Private Passenger Automobile Insurance.

The Casualty Practice Council submitted comments on the exposure draft of Actuarial Standard of Practice (ASOP) No. 7, Analysis of Life, Health, or Property/Casualty Insurance Cash Flow Risk.

Academy Casualty Policy Analyst Rob Fischer, Senior Fellow Rich Gibson, and Will Davis of the South Carolina Department of Insurance presented at the Casualty Actuarial Society's Spring Meeting on current and future public policy considerations, covering how the current legislative and regulatory environment continues to evolve and respond to changes in actuarial practice and the broader insurance and financial environments. The presentation covered topics including the NAIC, homeowners insurance, AI governance, the National Flood Insurance Program, and bias.

The Casualty Practice Council submitted comments on the exposure draft of Actuarial Standard of Practice (ASOP) No. 12, Risk Classification (for All Practice Areas).

The P/C Extreme Events and Property Lines Committee submitted a comment letter to the California Department of Insurance in advance of the department’s public workshop on its draft regulation that would modify state law to allow for catastrophe modeling to be used for wildfire, terrorism, and flood lines of homeowners and commercial insurance lines.

Members of the Committee on Cyber Risk presented during the Midwestern Actuarial Forum (MAF) on the Academy’s Cyber Risk Toolkit, highlighting recent work around cyber data, the state of the cyber insurance market and recent trends in D&O, and the cyber vendor model paper.

Academy Senior Fellow Rich Gibson provided a brief overview of the Committee on Cyber Risk to NAIC’s Cybersecurity (H) Working Group. The presentation highlighted the cyber risk toolkit, including an overview on the papers in the toolkit, papers expected to be published in the toolkit later this year, the public policy department’s ongoing research project on cybersecurity, and how the Academy and the committee can be helpful to the Cybersecurity (H) Working Group now that cyber insurance is included in their charges.

Academy Casualty Policy Analyst Rob Fischer provided an update on the Casualty Practice Council (CPC) activities of interest to NAIC’s Casualty Actuarial (C) Task Force, including an update on recent publications, and anticipated releases from other CPC workstreams of interest to the NAIC.

The Academy’s Health, Life, and Casualty practice councils submitted comments on New York State Department of Financial Services’ proposed insurance circular letter on the use of Artificial Intelligence Systems (AIS) and External Consumer Data and Information Sources (ECDIS) in insurance underwriting and pricing. The councils support efforts to curb underwriting and pricing methods that “reflect systemic biases and can reinforce and exacerbate inequality.”

Director of Research (Public Policy) Steve Jackson and Peter Ott, chairperson of the ACI/ACRI (Actuaries Climate Index / Actuaries Climate Research Index) Working Group and a vice chairperson of the Climate Change Joint Committee, delivered a virtual presentation to the German Actuarial Association, “U.S. Actuarial Societies & the American Academy of Actuaries’ Climate Work.”

The P&C Committee on Equity and Fairness submitted comments to the Colorado Division of Insurance on its life insurance draft regulation on governance and risk management framework requirements and its applicability to private passenger automobile insurance.