Dozens of clients, including insurance companies, captive insurers, risk retention groups, and self-insureds, have selected Huggins consultants to serve as their Appointed Actuary. We have the experience and track record to provide this valuable service.
What is an Appointed Actuary?
An appointed actuary is a “qualified” actuary (as defined by the American Academy of Actuaries) who is appointed or retained by the client to prepare the Statement of Actuarial Opinion (SAO) required by regulation. The actuary must be appointed by the Board of Directors, or its equivalent, by December 31 of the calendar year for which the opinion is rendered and must report to the Board of Directors or the Audit Committee each year on the items within the scope of the SAO. The SAO must include certain prescribed commentary, including a statement on the reasonability of the company’s carried unpaid loss and loss adjustment expense reserves, and other reserves, if applicable. Informed by the results of their analysis, the appointed actuary will issue one of five possible opinions: Reasonable, Inadequate/Deficient, Redundant/Excessive, Qualified, or No Opinion.
What is the value of an Appointed Actuary?
The appointed actuary provides an independent, third-party assessment of the adequacy of the company’s carried reserves, fulfills a National Association of Insurance Commissioner’s statutory requirement by issuing the SAO and supporting actuarial report, and plays a vital role in the year-end financial review for insurance companies, risk retention groups, captives, and self-insureds. The appointed actuary’s work is also of value in informing the company’s Board and senior staff thereby assisting in managing the firm and setting strategic direction.
In the United States, these documents are required in conjunction with Annual Statement filings made to state regulators each year. In most cases, offshore domiciles require a SAO as well, although the format may vary by jurisdiction.
How can Huggins help?
An appointed actuary must be “qualified” as defined by the American Academy of Actuaries. Huggins consultants meet these requirements and can provide the services necessary to satisfy the regulatory obligations for your firm. As your appointed actuary, we will provide the following documents as specified by the domiciliary jurisdiction:
- Issue a Statement of Actuarial Opinion (SAO)
- Issue an Actuarial Report Supporting the Statement of Actuarial Opinion
- Issue an Actuarial Opinion Summary (AOS)
- Issue an Actuarial Summary Review Memorandum
The Huggins Advantage
Our firm’s philosophy centers on our commitment to the highest level of quality service delivered by quality people. Our long tradition of providing responsive, technical excellence to our clients’ needs through an integrated team approach requires that we focus on quality in every aspect of every engagement.