CFA Urges NAIC to Continue Using Principles in Insurance Ratemaking Despite CAS's Position
On March 9, 2021, the NAIC’s regulatory actuaries (CASTF) unanimously voted to request that the Casualty Actuarial Society (CAS) reverse their rescission of the Principles actuaries have followed for decades in establishing the premiums policyholders pay for coverage. The CAS Board rebuffed the CASTF request at their March 27, 2021 meeting.
In light of the CAS Board’s refusal to reverse its action, CFA has asked the NAIC in a letter, to act by indicating their intent to continue to use the Principles in regulation of insurance rates and begin the process toward adopting the rescinded Principles as an interim set of standards for actuaries (or, at least, for regulatory actuaries) to follow in making/approving final insurance rates in America.
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