Actuarial function

  • Provide an effective actuarial function with experience
  • Draft actuarial report to the Supervisors
  • Certify provision level, product profitability, ...

What?

The Supervisors are more and more exacting in terms of controls and reporting on the actuarial models employed because of the increasing complexity of insurance business. In some countries, an actuarial report must be submitted to the Supervisors on an annual basis or for each new product.

Therefore, the company provides for an effective actuarial function.

Why?

  • To coordinate the calculation of technical provisions;
  • To ensure the appropriateness of the methodologies and underlying models used as well as the assumptions made in the calculation of technical provisions;
  • To assess the sufficiency and quality of the data used in the calculation of technical provisions;
  • To compare best estimates against experience of claims provisions;
  • To inform the administrative or management body of the reliability and adequacy of the calculation of technical provisions;
  • To oversee the calculation of technical provisions of case-by-case approaches for technical provisions;
  • To express an opinion on the adequacy of reinsurance arrangements.

The actuarial function shall be carried out by persons with sufficient knowledge of actuarial and financial mathematics and able, where appropriate, to demonstrate their relevant experience and expertise with applicable professional and other standards.

How

  • Certify the technical provisions: for each technical provision, certify that it has been valued in accordance with the provisions of the law or directive on the annual accounts and consolidated accounts.
  • Describe and analyse the reinsurance programme: comment on the adequacy of the corporate policy on reinsurance with regard to the general position of the insurance undertaking, the risks insured and take into account any excluded guarantees and the existence of lower limits in the reinsurance agreements.
  • Realize stress tests relating to claims depreciation: simulate the sensitivity of the technical result to claims depreciation and the strength of its reinsurance programme in order to analyze the financial soundness of the insurance undertaking.
  • Certify tariffs: state whether the undertaking has carried out a profitability test for each new product and marketed for the first time during the course of the financial year, before it is marketed.
  • Give advice on the profit sharing attribution: to respect the circular about profit sharing , the appointed actuary analyses and gives advice on the profit sharing model.
  • Draft actuarial report: Give its conclusions and recommendations to ensure the financial soundness of the insurance undertaking, taking into account all the analyses defined above.

Who?

All insurance companies -life and non-life- will have to implement Solvency II framework and to develop an actuarial riskmodel.

The advantages of Elips Actuarial Services ?

Our experience

  • Active in Luxembourg where the supervisors require an actuarial report and in Belgium where an actuary has to be appointed, Elips Actuarial Services has already fulfilled the actuarial function in different insurance undertakings.
  • Elips actuarial services has a team of experienced actuaries in this function.

Guaranteeing results

We offer undertakings on deliverables, budget and planning.

Know-how transfer - and training

Elips Actuarial Services is your natural business partner, because of our experience in actuarial matters. We can deliver the actuarial know how in a mixed management team of internal and external people. We can take the lead or work under..

Elips Actuarial Services references ?

  • We produce the actuarial Report in non life for marine business, reinsurance firm.
  • We produce the actuarial report in life for the profit sharing attribution and for the Belgian highlighting circular.
  • Fulfill the role of Appointed actuary for 3 large insurance companies.
  • Develop actuarial model in life and non life for Solvency II project.