Final answer:
The question is about an expert's opinion on the reasonableness of insurance premiums and reserves, ensuring they cover claims, expenses, and profits, and examining solvency risks. Actuarial fairness in premium calculation is also significant for maintaining a company's solvency.
Step-by-step explanation:
The statement referring to an opinion about the reasonableness of the property and casualty premium and loss reserves booked by management, which also contains a narrative about significant risks to solvency, is likely describing the task of an actuarial professional or an auditor. These experts assess whether the insurance premiums and reserves are adequate to cover the expected claims, expenses, and profit margins. They also evaluate the financial risks that could affect the company's solvency. It's important for an insurance company to maintain solvency to ensure they can meet future claim obligations.
Charging an actuarially fair premium to each risk group separately helps to avoid cross-subsidization between groups with different risk levels and maintains actuarial fairness.