The challenges of COVID-19 in general insurance are vast and varied. In this second COVID-19 article for general insurance actuaries, Estelle Pearson outlines the discussion points raised at a recent forum for Appointed Actuaries.
On Wednesday 15 April the General Insurance Practice Committee organised a forum for Appointed Actuaries (AAs) of general insurance companies to start a discussion on the challenges for AAs and other actuaries undertaking valuations and preparing Financial Condition Reports (FCRs) in the current environment. With over 40 AAs in attendance there was significant interest and engagement.
A key focus of the discussion was the range of scenarios which might unfold in terms of both the public health issues around COVID-19 and the economic consequences of the public health response.
All classes of insurance business will be impacted in some way and actuaries will need to consider how the environment will change exposure and the underlying frequency and size of claims as well as how disruptions to normal operations might impact when claims are reported and paid.
Actuaries preparing FCRs will need to consider how strategy and business plans might be impacted by COVID-19 and reassess the robustness of solvency to other stresses as the COVID-19 crisis evolves. Given the uncertainties and the speed with which things are changing there was a strong desire for regular meetings of the AA group as well as the establishment of sub-groups to discuss specific issues in more detail. The discussion document used at the meeting can be viewed via the link below.
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