Difference between revisions of "ASOP.43"

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&nbsp;&nbsp;[https://www.battleacts6us.ca/vanillaforum6us/categories/asop-43<span style="font-size: 12px; background-color: lightgrey; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 0px;">'''Forum'''</span>]
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'''Reading''': “Actuarial Standard of Practice No. 43, '''Property/Casualty Unpaid Claim Estimates''',” June 2007,
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'''Author''': Actuarial Standards Board of the American Academy of Actuaries
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[https://battleacts.discourse.group/c/candidates-6u/asop-43/218<span style="font-size: 12px; background-color: lightgrey; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 0px;">'''Forum'''</span>]
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[https://www.battleacts6us.ca/vanillaforum6us/categories/asop-43 ''&nbsp;&nbsp; (Or click here for Legacy Forum &ndash; no longer monitored)''</span>]
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<span style="display: inline-block; background-color: blue; color: white; font-weight: bold; text-align: center; line-height: 50px; width: 50px; height: 50px; border-radius: 50%;">VIDEO</span> &rarr;
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[https://battleacts8.ca/6u/video/460_Unpaid_Claims_(v01).mp4 <span style="color: black; font-size: 12px; background-color: aqua; border: solid; border-width: 2px; border-radius: 10px; border-color: aqua; padding: 5px 10px 5px 10px; margin-top: 100px;">'''(6:45) &rarr; Unpaid Claim Estimates - General Overview'''</span>] &nbsp;&nbsp;
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([[Videos |Click here for all currently available videos.]])
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ASOP 43 provides guidance to actuaries when performing professional services relating to the estimation of loss and loss adjustment expense for unpaid claims for property/casualty coverages.
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{| class='wikitable' style='background-color: navajowhite;
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|-
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|| '''BA Quick-Summary''': <span style="color: green;>'''ASOP 43 - Unpaid Claim Estimates'''</span>
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* ASOP No. 43 provides guidance to actuaries for '''estimating unpaid claims''' for property/casualty coverages.
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* It details the '''purpose and scope''' of these estimates, outlines <u>definitions</u> such as actuarial central estimate, and <u>discusses</u> the methods, models, and assumptions used in the analysis.
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* ASOP 43 also emphasizes the importance of considering factors like:
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:* ''data quality, external conditions, and uncertainties''
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|}
  
 
==Study Tips==
 
==Study Tips==
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There are 4 ASOPs: ''(Virtually all of the material in the ASOPs is included in higher-ranked readings.)''
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* [[ASOP.20]] ''(Discounting)''
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* [[ASOP.36]] ''(SAO)''
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* [[ASOP.41]] ''(Communications)''
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* [[ASOP.43]] ''(Reserve Estimates)''.
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You don't have to spend a lot of time on this reading. This material is mostly either obvious or covered in earlier readings.
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'''Estimated study time''': 30 minutes ''(not including subsequent review time)''
  
 
==BattleTable==
 
==BattleTable==
  
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Based on past exams, the '''main things''' you need to know ''(in rough order of importance)'' are:
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* ''this reading has not been tested on any exam from the year 2012 to Fall 2019, after which exams stopped being published.''
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* ''this reading has not been tested on any exam from the year 2012 and subsequent''
 
  
 
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: {| class="wikitable" style="width: 1000px;"
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|}
  
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[https://www.battleacts6us.ca/FC.php?selectString=**&filter=both&sortOrder=natural&colorFlag=allFlag&colorStatus=allStatus&priority=importance-high&subsetFlag=miniQuiz&prefix=ASOP&suffix=43&section=all&subSection=all&examRep=all&examYear=all&examTerm=all&quizNum=all<span style="font-size: 20px; background-color: lightgreen; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 10px;">'''Full BattleQuiz]'''</span> <span style="color: red;">'''You must be <u>logged in</u> or this will not work.'''</span>
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==In Plain English!==
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The quiz covers <u>items</u> the AA must identify regarding unpaid claims estimates, <u>factors</u> that should be considered when selecting a methodology, and items that must be <u>disclosed</u> within the report.
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:{| class='wikitable'
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|-
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|| '''Question''': identify specific <u>items</u> the AA must '''IDENTIFY''' regarding the unpaid claim estimate. [Hint: <span style="color: red;">'''clms-RED'''</span>]
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|}
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:* <span style="color: red;">'''clms'''</span> (obvious!)
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::: - claims covered (line, state, …)
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:* <span style="color: red;">'''R'''</span>einsurance:
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::: - net/gross basis, uncollectability risk
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:* <span style="color: red;">'''E'''</span>xpenses
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::: - types of unpaid adjustment expenses included in loss estimate
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:* <span style="color: red;">'''D'''</span>iscounting:
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::: - does estimate include discounting?
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:{| class='wikitable'
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|-
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|| '''Question''': identify specific <u>factors</u> the AA should '''CONSIDER''' when selecting a reserving method [Hint: <span style="color: red;">'''P'''</span>a<span style="color: red;">'''NDA'''</span> (the first "a" doesn't stand for anything)]
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|}
  
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&nbsp;&nbsp;[https://www.battleacts6us.ca/vanillaforum6us/categories/asop-43<span style="font-size: 12px; background-color: lightgrey; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 0px;">'''Forum'''</span>]
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:* <span style="color: red;">'''P'''</span>urpose of analysis
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::: - internal or external use
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:* <span style="color: red;">'''N'''</span>ature of claims
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:* <span style="color: red;">'''D'''</span>ata availability
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:* <span style="color: red;">'''A'''</span>ssumptions underlying methods – appropriate?
  
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==In Plain English!==
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:{| class='wikitable'
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|-
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|| '''Question''': identify specific items the AA should '''DISCLOSE''' regarding the unpaid claim estimate [Hint: <span style="color: red;">'''PAR'''</span>]
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|}
  
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:* <span style="color: red;">'''P'''</span>urpose & scope of analysis
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:* <span style="color: red;">'''A'''</span>ccounting date, valuation date, review date
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:* <span style="color: red;">'''R'''</span>MAD: sources of risks, significant events
  
 
[https://www.battleacts6us.ca/FC.php?selectString=**&filter=both&sortOrder=natural&colorFlag=allFlag&colorStatus=allStatus&priority=importance-high&subsetFlag=miniQuiz&prefix=ASOP&suffix=43&section=all&subSection=all&examRep=all&examYear=all&examTerm=all&quizNum=all<span style="font-size: 20px; background-color: lightgreen; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 10px;">'''Full BattleQuiz]'''</span> <span style="color: red;">'''You must be <u>logged in</u> or this will not work.'''</span>
 
[https://www.battleacts6us.ca/FC.php?selectString=**&filter=both&sortOrder=natural&colorFlag=allFlag&colorStatus=allStatus&priority=importance-high&subsetFlag=miniQuiz&prefix=ASOP&suffix=43&section=all&subSection=all&examRep=all&examYear=all&examTerm=all&quizNum=all<span style="font-size: 20px; background-color: lightgreen; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 10px;">'''Full BattleQuiz]'''</span> <span style="color: red;">'''You must be <u>logged in</u> or this will not work.'''</span>
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&nbsp;&nbsp;[https://www.battleacts6us.ca/vanillaforum6us/categories/asop-43<span style="font-size: 12px; background-color: lightgrey; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 0px;">'''Forum'''</span>]
 

Latest revision as of 15:01, 6 December 2025

Reading: “Actuarial Standard of Practice No. 43, Property/Casualty Unpaid Claim Estimates,” June 2007,

Author: Actuarial Standards Board of the American Academy of Actuaries

Forum    (Or click here for Legacy Forum – no longer monitored)

VIDEO → (6:45) → Unpaid Claim Estimates - General Overview    (Click here for all currently available videos.)

ASOP 43 provides guidance to actuaries when performing professional services relating to the estimation of loss and loss adjustment expense for unpaid claims for property/casualty coverages.

BA Quick-Summary: ASOP 43 - Unpaid Claim Estimates
  • ASOP No. 43 provides guidance to actuaries for estimating unpaid claims for property/casualty coverages.
  • It details the purpose and scope of these estimates, outlines definitions such as actuarial central estimate, and discusses the methods, models, and assumptions used in the analysis.
  • ASOP 43 also emphasizes the importance of considering factors like:
  • data quality, external conditions, and uncertainties

Study Tips

There are 4 ASOPs: (Virtually all of the material in the ASOPs is included in higher-ranked readings.)

You don't have to spend a lot of time on this reading. This material is mostly either obvious or covered in earlier readings.

Estimated study time: 30 minutes (not including subsequent review time)

BattleTable

  • this reading has not been tested on any exam from the year 2012 to Fall 2019, after which exams stopped being published.
reference part (a) part (b) part (c) part (d)
no prior questions

In Plain English!

The quiz covers items the AA must identify regarding unpaid claims estimates, factors that should be considered when selecting a methodology, and items that must be disclosed within the report.

Question: identify specific items the AA must IDENTIFY regarding the unpaid claim estimate. [Hint: clms-RED]
  • clms (obvious!)
- claims covered (line, state, …)
  • Reinsurance:
- net/gross basis, uncollectability risk
  • Expenses
- types of unpaid adjustment expenses included in loss estimate
  • Discounting:
- does estimate include discounting?
Question: identify specific factors the AA should CONSIDER when selecting a reserving method [Hint: PaNDA (the first "a" doesn't stand for anything)]
  • Purpose of analysis
- internal or external use
  • Nature of claims
  • Data availability
  • Assumptions underlying methods – appropriate?
Question: identify specific items the AA should DISCLOSE regarding the unpaid claim estimate [Hint: PAR]
  • Purpose & scope of analysis
  • Accounting date, valuation date, review date
  • RMAD: sources of risks, significant events

Full BattleQuiz You must be logged in or this will not work.

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