Selection of Data—In undertaking an analysis, the actuary should consider what data to use.
The actuary should consider the scope of the assignment and the intended use of the analysis
being performed in order to determine the nature of the data needed and the number of
alternative data sets or data sources, if any, to be considered. The actuary should do the
following:
a. consider the data elements that are desired and possible alternative data elements;
and
b. select the data with due consideration of the following:
1. appropriateness for the intended purpose of the analysis, including whether
the data are sufficiently current;
2. reasonableness and comprehensiveness of the necessary data elements, with
particular attention to internal and external consistency;
3. any known, material limitations of the data;
4. the cost and feasibility of obtaining alternative data, including the ability to
obtain the information in a reasonable time frame;
5. the benefit to be gained from an alternative data set or data source as
balanced against its availability and the time and cost to collect and compile
it; and
6. sampling methods, if used to collect the data.