During the summer meeting of the National Association of Insurance Commissioners here, the American Academy of Actuaries presented the latest version of the Commissioners Standard Ordinary Tables to regulators.
One change had been made since the spring meeting of the NAIC in March. Analysis was added to address the issue of small company variability that depended on the retention of risk, said Faye Albert, who co-chairs the AAA CSO Task Force with Mike Taht.
Albert says the Tables will ultimately reduce reserving by 20%. They also include guidelines for actuaries to take more responsibility for reserving.
Insurers questioned how workable is an idea being floated to tie use of the new CSO Tables to the willingness of a company to respond to a data call.
Albert said that if a company could not use the new CSO Tables and used the current 1980 CSO Table instead, it would cause “inconsistencies in reserving from year to year.”