ASOP13.Trend

Reading: Actuarial Standard of Practice No. 13, Trending Procedures in Property/Casualty Insurance

Study Tips

ASOPs generally have these sections:

Section 1. Purpose, Scope, Cross References, and Effective Date

Section 2. Definitions

Section 3. Analysis of Issues and Recommended Practices

Section 4. Communications and Disclosures

Appendices

Sections 3 & 4 contain most of the relevant information. The definitions in Section 2 are usually obvious and familiar, and are covered in either the Werner of Friedland source texts anyway. You can skip Section 1 and the Appendices. The appendices usually contain either very general background information or comments on the draft version of the ASOP.

Estimated Study Time: 30 minutes (you may occasionally refer back to this ASOP while studying the main pricing and reserving material)

BattleTable

• this reading has not been tested on any exam from the year 2012 and subsequent

reference	part (a)	part (b)	part (c)	part (d)
no prior questions

In Plain English!

Section 2: Definitions

The 6 terms defined in this sections are: coverage, experience period, forecast period, societal influences, trending period, trending procedure. The only one that may not be obvious is societal influences.

societal influences: refers to the impact on costs of changes in claim consciousness, court practices, legal precedents, other non-economic factors