Did you miss Larson’s November Slam and Eggs presentation? Here is a quick summary to catch you up:
Jeff Lee, ASA, MAAA, from Lewis & Ellis Actuaries and Consultants joined us for a discussion and presentation on actuarial audits. Jeff has experience in life and reinsurance companies, as well as actuarial audits and state exams. Typical companies that have actuarial audits are life, health, and P&C.
Jeff first discussed the benefits of having an external actuarial audit. Companies need to remember that auditors are on the client’s side and want what is the best for the company. External auditors will help find mistakes that can be corrected before the state exam. State exams can vary from state to state, but those exams are going to be risk-based and much more costly. An actuarial audit can help the process of state exams go smoother. Audits also provide a comprehensive report that is completely impartial and provides an unbiased assessment of the company.
In the presentation Jeff went over a sample actuarial audit report, including a list of documents reviewed, actuarial opinions, asset adequacy analysis, and other key reporting items. During the audit, actuaries will take a close look at reinsurance treaties, reinsurance reports, and ensure that ceded and assumed reserves are correctly recorded in the annual statement. Frequency of an actuarial audit range from every year to every three years, depending on the company.
The slides for this presentation can be downloaded at this link: https://t1p4cb.p3cdn1.secureserver.net/wp-content/uploads/2021/11/November-2021-Slam-and-Eggs-Actuarial-Audit.pdf. You can watch the broadcast on our YouTube channel here: https://youtu.be/KJB6atnPPkA. Don’t forget to subscribe to our channel to have access to all of our insurance related content.
For any questions regarding actuarial audits please reach out to our team at Larson & Company, or Jeff Lee at Lewis & Ellis, JeffLee@lewisellis.com.
