1. Distinguishing “BEST ESTIMATES” from “best estimates”
Al Weller, FCA, FCAS, MAAA
Insurance Services Office, Inc.

2. Dualism
Actuaries
Can count
Cannot count
Data
Random
Manageable

3. Four Differences Business Purpose Reasonableness Reconciliation
Prospective Tests

4. Business Purpose Engagement Definition
Parties
Objectives
Scope
Deliverables / Format
Cost / Detail

5. Reasonableness
Description
Relationships
Benchmarks

6. Reconciliation
Interpretation
Advice

7. Testing
Budget
Opportunities / Risk

8. Actuarial Organizations
American Academy of Actuaries
Casualty Actuarial Society
Conference of Consulting Actuaries
Actuarial Standards Board
Actuarial Board for Counseling and Discipline
Canadian Institute of Actuaries

9. Professionalism Code of Professional Conduct
Statement of Principles Regarding Property and Casualty Loss and Loss Adjustment Expense Reserves
Actuarial Standards of Practice issued by the Actuarial Standards Board
Qualification Standards & Practice Councils

10. Conclusion
BEST ESTIMATES
best estimates