I noticed that the Peer reviewer DOES NOT perform controls verification. However, they check the adequacy of procedures, systems, and work of others. Isn't this describing some aspects of "controls verification"? If not, what's the difference?
When doing a Peer Review, the Peer Reviewer will go through the AAR and assess it for reasonability (i.e. procedures, selections, methods). They will not recalculate IBNR. For validation, they just assess the method used by the AA to verify controls as stated in the AAR and provide an opinion if it is sufficient.
Actual recalculation and verification of those controls is done by the actuarial audit team. A Peer Reviewer only looks at the AAR and the PC1 but does not verify that the actual numbers are coming out as they should
Comments
When doing a Peer Review, the Peer Reviewer will go through the AAR and assess it for reasonability (i.e. procedures, selections, methods). They will not recalculate IBNR. For validation, they just assess the method used by the AA to verify controls as stated in the AAR and provide an opinion if it is sufficient.
Actual recalculation and verification of those controls is done by the actuarial audit team. A Peer Reviewer only looks at the AAR and the PC1 but does not verify that the actual numbers are coming out as they should
Hi, may I know what is PC1?
Oh it's the P&C annual return. Sorry I call it the PC1 at work