A&E Exposure Disclosures

patbaker12patbaker12
in NAIC.SSAP-65

I noticed that the required disclosures for A&E Exposures are different in the Notes to Financial Statements then they are for SSAP 65. Namely the note on the 5 year breakout, separately for Asbestos and Environmental, of beginning & ending reserves, incurred loss & LAE, and Calendar Year paid loss & LAE.

Per the Notes to Financial statements, that breakout should be done on a direct, net, and assumed basis.

Per SSAP 65, that breakout should be done on a gross and net basis.

I'm assuming that SSAP 65 is referring to what is required in the Notes to Financial Statements, so which version is correct?

Comments

  • grahamgraham

    I don't have specific knowledge of this beyond the syllabus but here's what I think:

    • In general, the SSAPs should be considered authoritative. (The examples in Chapter 10 of Odomirok are secondary sources. Presumably they are based on the SSAPs but if there's a conflict, I'd go by the SSAPs.)
    • SSAP-65 is updated regularly and is more current than Odomirok which was published in 2014. (It's possible the instructions could have changed since Odomirok was published.)
    • Note that if direct, net, and assumed are given, you can calculate gross and net. Granted it isn't exactly what SSAP-65 tells you to do but the example in Odomirok actually provides more information not less, which should probably be ok.
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