ADDACTIS® WORLDWIDE HAS EXPERIENCED AND QUALIFIED CONSULTANTS WHO CAN SUPPORT YOU WITH THE ACTUARIAL FUNCTION.
The support that can be provided varies from moderate support to the more technical parts of the actuarial function to the fully support, where the entire function is outsourced. This is allowed, as long as the responsibility is carried out by the insurance company. FIRSTLY, we provide an overview of what we believe are the tasks of the actuarial function. Afterwards we show how ADDACTIS® Worldwide can support you in this area. The table below provides a summary of the tasks of the actuarial function.
THE LIABILITY ADEQUACY TEST
Calculation of the discounted best estimate of the loss reserves and premium reserves, gross and net of reinsurance.
Calculation per segment of business.
Calculation of risk margin using the cost-of-capital approach.
Potentially providing an internal statement on the adequacy of the reserves.
CALCULATION OF THE SOLVENCY II CAPITAL REQUIREMENTS
Calculation of the SCR and MCR using the standard formula and/or using an internal model (optional).
PROVIDING SUPPORT WITH THE ORSA
Describe System of Governance outlining the Solvency II required functions.
Describe overall Risk Strategy, Capital Policy and ORSA approach.
Perform base case projections of P&L, Balance Sheet and Solvency.
Ratio, as well as applying stress scenarios to those projections.
The ORSA contains both a qualitative as well as a quantitative part.
SUPPORT WITH THE SUBMISSION OF THE QRT’S
The calculations of (1), (2) and (3) will, amongst other financial information, need to be disclosed in the QRT’s.
Disclosure is required on a quarterly basis.
DOCUMENTATION OF THE PROCESSES DESCRIBED ABOVE
All components of the work need to be documented.
COMMUNICATION WITH STAKEHOLDERS
Communication of results to management, and supervisory board.
Discussions with external stakeholders such as the local supervisor or the auditor.
Advise on reinsurance structures.
Calculating the financial impact of reinsurance structures.
Demonstrating the risk mitigating impact of several reinsurance programmes.