Actuarial Opinion Summary

Question 1

What is the Actuarial Opinion Summary?

Answer 1

The Actuarial Opinion Summary (AOS) is a significant data summary which is typically filed with the domiciliary state department of insurance (DOI). The report is confidential unlike the SAO.

Question 2

What is included in the Actuarial Opinion Summary (AOS)?

Answer 2

The Actuarial Opinion Summary (AOS) should contain:

1. The Appoint Actuary’s range of reasonable estimate for loss and loss adjustment expense (LAE) reserves on a net and gross basis
2. The Appointed Actuary’s point estimate of loss and loss adjustment expense (LAE) reserves on a net and gross basis
3. Management’s carried loss and loss adjustment (LAE) reserves on a net and gross basis
4. The difference between the Appointed Actuary’s estimate (from 1 and 2) and management’s carried reserves
5. If three (3) out of the last five (5) years 1-year development to prior policyholder surplus (PHS) is greater than 5%, the Appointed Actuary should describe the major factors which contributed to the adverse development