Battlecard for (6.2 Judicial Decision): ACTION

jaylow96jaylow96
in CIA.Subseq

Hi,

For this battlecard, it stated that

for insurers where it WASN'T a subsequent event (right branch):
- if material --> RI-withdraw/amend
- if not material --> no action

The source text is stating that "For other insurers without a significant portfolio of Alberta automobile insurance, the court decision was not sufficiently material to invalidate the report. Therefore, many actuaries **informed **users in the financial notes but did not reflect the event in their work".

Is it more appropriate for the action to be "inform" instead of "no action" if the event is not material in this case?

Thank you.

Comments

  • grahamgraham

    That's a good point. I reread the example in the source text but it doesn't say definitively that "no action" is acceptable even if the event is not judged to be material by the company's actuary. If there's any doubt at all, the safest course of action is "inform". I changed the BattleCard to reflect that. Thx!

    In general, there is probably no single correct answer that covers all possible situations. The actuary wouldn't want to "inform" on every non-material event. There could be many such events and it would just clutter up the report. But for an industry-wide event, a reader of the report may like to see it explicitly stated that a particular event was not material for that company.

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