Academy provides guidance on risk transfer

The American Academy of Actuaries has provided an advisory note to US non-life insurers on how best to interpret the risk transfer elements of the Reinsurance Attestation Supplement that chief executives and chief financial officers will have to sign to accompany their 2005 annual statements. We have taken extracts from the advice for the rest of this article. The academy has already issued a report on “Risk transfer in P&C reinsurance” which we covered in AIC 169.