The Evolving Role of the Actuary in Financial Reporting of Insurance

Abstract

The demands that financial reporting of insurance companies present to actuaries are great and growing. With the prospects of change in the rules for financial reporting becoming more likely and insurance products becoming more complex, it is desirable to examine the evolving roles of the actuary and the actuarial profession. This paper describes these changes and the value that actuaries bring to financial reporting. The challenges presented are significant. As the methods of assessing and managing risk change are becoming more complex, the best efforts of the profession and individual actuaries will be needed to ensure that the actuary’s role is enhanced and expanded. Not only will the techniques used evolve, but the audiences served by the actuary will become even more demanding. The actuarial profession is better situated than other professions to meet these demands.