The reserve level of an insurance company has a tremendous impact on its financial results. Accordingly, property & casualty insurance companies and captives are required to submit
Statements of actuarial opinion assessing the reasonableness of the reserve levels each year to various regulatory bodies. In addition to satisfying these requirements, companies often wish to provide additional confidence that reserves are reasonable. This confidence is important to the Board of Directors, rating agencies, regulators, and investors. In short, the reasonableness of reserves is critical to establishing credibility with readers of the financial statements. Accurate reserving is also important since it forms the basis for pricing future business.
When PwC issues
Statements of actuarial opinion, we offer our clients the following benefits:
- Industry credibility: Companies that use PwC as their appointed actuaries receive instant credibility due to our reputation in the industry. As a firm renown for its independence, PwC can provide confidence on the reasonableness of company reserves.
- Dedicated opinion resources: By issuing so many opinions, clients benefit from our "economies of scale." PwC has established a team of professionals to continuously monitor ever-changing regulatory requirements and actuarial standards, and invest in standardized work tools and "Best Practices" to ensure that all requirements are met.
- Experience: For unusual or difficult reserving issues, clients can be assured that we can tap into specialized knowledge throughout the firm. Dedicated teams have been formed to address many difficult reserving issues. Various knowledge and discussion databases are used internally to further leverage our collective experience.
- Client service: We strive to exceed compliance requirements by being responsive to management, clearly articulating results, and communicating important issues that go beyond the reserving area.
