Answers to the European Commission on the ... - Eiopa - Europa

Specific principles for non-life insurance (excluding long-term health and/or
disability)
A.24 The actuary, taking in<strong>to</strong> account <strong>the</strong> terms and conditions of insurance
contracts as well as <strong>the</strong> investment policy, should give advice on:
• <strong>the</strong> adequacy of technical provisions in sufficient detail for <strong>the</strong>
Board of Direc<strong>to</strong>rs <strong>to</strong> decide where within a range of reasonable
estimates <strong>the</strong> technical provisions should be set and whe<strong>the</strong>r <strong>the</strong>
calculation of <strong>the</strong> solvency position is based on realistic
assumptions;
• <strong>the</strong> adequacy and sufficiency of <strong>the</strong> level of premiums <strong>to</strong> be
charged;
• <strong>the</strong> adequacy of reinsurance arrangements; and
• <strong>the</strong> adequacy of risk control, particularly by means of claims
statistics.
A.25 The analyses <strong>to</strong> be carried out must, <strong>to</strong> <strong>the</strong> extent deemed appropriate,
be grouped by insurance classes, risk categories, types of products or
any o<strong>the</strong>r combination that <strong>the</strong> actuary considers <strong>to</strong> be appropriate.
New aspects of actuarial work in <strong>the</strong> new solvency regime
A.26 The role of actuarial function is changing so that co-operation with risk
management and investment activities and even accounting is more
crucial.
Report of <strong>the</strong> actuary in a responsible actuary approach
A.27 In a responsible actuary approach <strong>the</strong> actuary must elaborate an
annual report with <strong>the</strong> findings and recommendations. This report must
be drawn up with clarity and suitable objectivity, in order <strong>to</strong> comply
with <strong>the</strong> obligation <strong>to</strong> provide information.
A.28 The actuary must attempt <strong>to</strong> be consistent in <strong>the</strong> way reports are
drawn up and presented in order <strong>to</strong> guarantee <strong>the</strong> possibility <strong>to</strong>
compare information over time.
A.29 If, after <strong>the</strong> date of submission of <strong>the</strong> reports, <strong>the</strong> appointed actuary
detects <strong>the</strong> existence of errors in <strong>the</strong> information contained <strong>the</strong>rein
considered <strong>to</strong> be of material relevance for <strong>the</strong> purposes of <strong>the</strong>
conclusions obtained, <strong>the</strong> actuary shall carry out <strong>the</strong> corrections he
considers appropriate, which should be submitted <strong>to</strong> <strong>the</strong> supervisory
authority.
A.30 The actuary should undertake detailed moni<strong>to</strong>ring of <strong>the</strong> measures
taken by <strong>the</strong> insurance undertaking in <strong>the</strong> pursuit of <strong>the</strong>
recommendations made by him in his reports.
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