Use of actuarial data for rate setting The timing of the data given to the actuary is important. Some joint risk pools provide mid-fiscal year data to their actuary for the purpose of receiving recommendations for rate setting and the next year budget development. In this case, the actuarial report will project fiscal year- end paid losses by year and case reserves. These projections provide valuable information for joint risk pool budgeting and for monitoring the financial solvency of the program. Many joint risk pools offer the opportunity to their members to take a deductible for all lines of coverage or for certain lines of coverage.
Some pools advance deductible payments on particular claims then seek reimbursement from the member.
Once a deductible payment is invoiced, it should be shown on the balance sheet as a receivable. Footnotes to the financial statements should be used to disclose information relevant and material to a reader of the financial statements. The following list is not intended to be all-inclusive. Other disclosures may be necessary for a clear understanding of the financial statements and operation of the insurance pool.