BNM issued a concept paper on Appointed Actuary: Appointment and Duties on 7 June 2013.  The concept paper calls for comments by 2 August 2013.

The intention is to replace the existing Appointed Actuary guidelines by the requirements as set out in the concept paper.  Among the notable changes under the proposed new guidelines include:

  • The removal of the product pricing duty from the role of the appointed actuary.
  • Replace the Signing Actuary in general insurance with Appointed Actuary.
  • Appointed Actuary of general insurance company is required to prepare a Financial Condition Report.
  • 3 years post qualification experience seems to be a minimum.  BNM no longer has the right to waive this.
  • The Nominating Committee of the insurer now needs to make sure the appointed actuary meets the fit and proper requirements.
  • There is a strong preference for the appointed actuary to be the staff of the insurer, although BNM still has the right to waive this requirement.
  • The appointed actuary is not allowed to concurrently play the role of CEO, CFO, COO or CIA, and must not have any management or financial responsibility in respect of business lines or revenue-generating functions.
  • The Board must review the reports submitted by the appointed actuary at a sufficiently granular level.
  • There is a hint of the requirement of independent review of the appointed actuary's work although the concept paper short of making it compulsory.
Sunday, June 9, 2013 6:01:00 PM Categories: Appointed Actuary BNM FCR
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