Hi all,
I work (in the US) for a Bermuda-based insurer as an actuary supporting our US-domiciled company. There is a reserving team outside the US which performs analysis and makes reserve recommendations to management. Historically we have done our own independent reserve analysis to produce the SAO and AOS, coming up with best estimates and ranges that obviously may differ from the group reserving team's.
My question is: would it be acceptable to -- rather than performing a full analysis myself -- simply review the analysis done by the reserving team, confirming the assumptions and methods used, and base the SAO on this review? I know that reviewing e.g. a junior analyst's work essentially counts as performing it yourself, but I don't know if that holds true here, since it's a separate team which is making the reserve recommendations to management.
Thanks,
LS
I work (in the US) for a Bermuda-based insurer as an actuary supporting our US-domiciled company. There is a reserving team outside the US which performs analysis and makes reserve recommendations to management. Historically we have done our own independent reserve analysis to produce the SAO and AOS, coming up with best estimates and ranges that obviously may differ from the group reserving team's.
My question is: would it be acceptable to -- rather than performing a full analysis myself -- simply review the analysis done by the reserving team, confirming the assumptions and methods used, and base the SAO on this review? I know that reviewing e.g. a junior analyst's work essentially counts as performing it yourself, but I don't know if that holds true here, since it's a separate team which is making the reserve recommendations to management.
Thanks,
LS
Reserving Analysis for SAO