In this era of transparency and increased disclosure, materiality is hot topic in financial markets in general and especially in the insurance industry. Casualty actuaries are becoming more and more interested in materiality standards.
Materiality issues are on the forefront of many regulators minds, in particular as they relate to disclosures for the risk of material adverse deviation (RMAD) in statements of actuarial opinion (SAOs). How do regulators view the RMAD paragraph?
Materiality is also important as part of the financial audit of the insurance company. How does the auditor use the RMAD paragraph in the financial audit? How do auditors determine materiality? If the range of central actuarial estimates of loss reserves is larger than the materiality of the audit, does this cause a concern for the auditor?
The panel will consist of a regulator and an auditor to discuss their viewpoints of materiality standards and the RMAD paragraph