Measurement of the property-casualty actuarial reserving process
Loss reserves are the largest liability and the most volatile item on a property-casualty insurance company's balance sheet. A reserving process functioning at an optimal level has strong internal controls with benefits that go beyond financial reporting, but help management make better informed decisions on underwriting, capital allocation and other business decisions.
This paper provides an illustration of a best practices reserving process, and a description of a maturity framework to evaluate a company's process, identify areas of inefficiency, and to monitor progress over time.
