ASOP23 Data Quality

Question 1

ASOP23 data reliance and review

Answer 1

1. Reliance on information
   
   1. 1 validity responsibility of those who supply it
   2. 2 disclose reliance on data supplied by others
2. Review of data for reasonableness and consistency
   
   2. 1 data definitions
   3. 2 identify questionable data
   4. 3 consider further steps to improve data quality
   5. 4 disclose if do not review
   6. 5 if data inadequate obtain different data or decline assignment

Question 2

ASOP23: limitation of actuary’ responsibility

Aka things not required

Answer 2

1. Determine if data supplied by others falsified
2. Develop compilations solely to search for questionable data
3. Audit data

Question 3

ASOP23: documentation and disclosure should include

Answer 3

1. Source of data
2. Whether actuary reviewed, and if not then disclose resulting limitations
3. Process followed to evaluate data
4. Adjustments including rationale
5. Reliance on data and other information
6. limitations on work due to data quality
7. Unresolved concerns
8. Description of material defects
9. Highly uncertain results including potential magnitude
10. Conflicts from complying with regulations

Question 4

ASOP23: selection of data

Answer 4

1. Desire data elements
2. Consider alternative data elements
3. Appropriateness for intended purpose
4. Sufficiently current
5. Reasonableness and comprehensiveness
6. Internal and external consistency
7. Material limitation
8. Feasibility of alternative data and time required
9. Benefit to be gained from alternative data
10. Sampling methods to collect the data