Kamiya, Shinichi and Andreas Milidonis.
Journal of Risk and Insurance 85, 1055-1082.
Publication year: 2018
  • Actuarial independence is important when appointed actuaries oversee insurance reserves.
  • In-house appointed actuaries could be officers or non-officers of the company.
  • Officer actuaries face managerial incentives that could jeopardize actuarial independence. 
  • Using data from 2007-2014, we find that in-house officer actuaries are less conservative than non-officer actuaries.
  • Results are economically significant and should be of concern to regulators and professional institutions.