Incorrect reserve adequacy assessments can lead to false or incomplete findings, uninformed management decisions and unfavorable outcomes, not to mention a possible wrongful termination suit by the claims manager.

Why do so many organizations struggle with reserve adequacy assessments? Frequently, those carrying out the review are not assessing the appropriate criteria to fully evaluate reserve adequacy or the root causes of deficiencies. Recommendations often do not align with findings, organizational objectives, goals or means.

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