The P&C Actuary's Role in Solvency Monitoring - Property and ...

PACICC – The P&C Actuary’s Role in Solvency Monitoring Page 34
filed with applicable regulatory authorities. Individual responses were reviewed by members of
the Property-Casualty Subcommittee of the Committee on Compliance and if deemed necessary,
the Committee on Review or the Committee on Discipline.
Standards of Practice for the Appointed Actuary of an Insurance Company
The exposure draft of the Standards of Practice for the Appointed Actuary of an Insurance
Company (SOP for the AA) was released by the CIA to membership in September 1991.
Following minor modifications by the Committee to Develop the Role of the Valuation Actuary
and the Committee on Standards of Practice, the final standard was approved by Council at the
June 1992 meeting, and the standard became effective June 15, 1992.
This standard applied to AAs of all life and P&C insurance companies operating in Canada,
domestic or foreign, in respect of the total business of domestic companies and the Canadian
business of foreign companies. Transitional requirements were set out for AAs of provincially
regulated companies and P&C insurance companies with respect to DCAT requirements.
The key requirements of the SOP for the AA, which are consistent with the requirements as set
out in the ICA, included: 69
― An actuary should accept and retain an appointment as AA only if the actuary has the
necessary qualifications, experience, and knowledge. (Section 2.1)
― Prior to accepting an appointment as AA, an actuary should consult with the previous
AA to determine whether there are any professional reasons not to accept the
appointment. (Section 2.2)
― Prior to accepting an appointment as AA, an actuary should ensure that the board of
directors, or such other body that makes the appointment, understands the duties of
the AA. (Section 2.3)
― Prior to accepting an appointment as AA, an actuary should ensure that the board of
directors, or such other body that makes the appointment, agrees to the requirements
needed to fulfill the responsibilities of the AA, including but not limited to, timely
access to all necessary and relevant management information, adequate resources and
an appropriate venue for presenting the AA’s annual report. (Section 2.4)
― If the preceding requirements cannot be satisfied, an actuary should not accept
appointment as AA. If, after appointment, conditions change such that the
requirements are no longer satisfied and, in the actuary’s opinion, will not be satisfied
in a timely fashion, the actuary should resign the appointment. (Section 2.5)
― An AA should arrange access to the records, accounts and documents necessary to
provide an understanding of the company’s obligations and the resources expected to
be available to meet these obligations. (Section 3.1)
69 All bullet points are taken from the italics requirements as set out in Sections 2 through 6 of the SOP for
the AA, http://www.actuaries.ca/members/publications/1992/9240e.pdf, accessed November 2010.