Is the statement of actuarial opinion a protection racket?

Like I heard companies were required to have a statement of actuarial opinion signed for their reserves or whatever. Like, pay us actuaries and we’ll protect you against insolvency and if you don’t we wouldn’t want anything bad to happen to you like getting your license to operate revoked.


I was curious and was wondering what the answer was.

It’s a statement that essentially protects a company’s executive in the event that adverse development occurs.

And yes, in some cases, the appointed actuary will not sign it (and resign instead).

I’ve seen that happen.