Like many parts of the insurance industry, reserving is an evolving science. To maintain a clear picture of what a carrier must set aside to keep regulators happy–especially in today's volatile financial and regulatory climate–actuaries rely on tools such as enterprise risk management to assist them in mastering all relevant variables.

The role of an actuary is to protect an insurer's financial solvency and establish appropriate reserve and capital levels. Finding the right numbers never has been easier for actuaries–or harder. Technology has offered computing power actuaries have not seen before, but as the data piles up and new models are explored, actuaries are being asked to provide more than one answer to a single problem.

To determine the best reserving levels for carriers, actuaries have to know what everyone in the enterprise is doing. The collaboration needed today is best found in an enterprise risk management view, which many carriers have practiced for years without benefit of the three-letter acronym ERM.

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