rbc_trend_082604保险.pdfVIP

A RISK-BASED CAPITAL TREND TEST FOR P/C INSURERS: REPORT TO THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS CAPITAL ADEQUACY TASK FORCE American Academy of Actuaries P/C Risk Based-Capital Committee August 26, 2004 The American Academy of Actuaries is the public policy organization for actuaries practicing in all specialties within the United States. A major purp ose of the Academy is to act as the public information organization for the profession. The Academy is non-partisan and assists the public policy process through the presentation of clear and objective actuarial analysis. The Academy regularly prepares testimony for Congress, provides information to federal elected officials, comments on proposed federal regulations, and works closely with state officials on issues related to insurance. The Academy also develops and upholds actuarial standards of conduct, qualification and practice, and the Code of Professional Conduct for all actuaries practicing in the United States. 1100 17th Street NW Seventh Floor Washington, DC 20036 Telephone 202 223 8196 Facsimile 202 872 1948 Summary At the request of the National Association of Insurance Commissioners (NAIC), the American Academy of Actuaries’ Property Casualty Risk Based Capital Committee (PC RBC) reviewed the suitability of using a life insurance type trend test in the PC RBC calculation. We found that while a life insurance type trend test was not effective in differentiating companies that were more likely to fall below their Company Action Levels (CALs) in the subsequent year, a one-year Combined Ratio test did provide statistically significant differentiation. Life Insurance Type Trend Test The life insurance type trend test supplements the RBC calculation by looking at the trend in RBC results for a company. For companies that fall in the 200% to 250% of Authorized Control Level (ACL), the test subtracts from the cu