9.2.1. Application

PINS 9.2.2 to 9.2.5 apply to an Insurer that is not required to have an Approved Actuary. Note: For the Insurers that are required to have an Approved Actuary, see PINS 2.2.2 (Mandatory appointments).

9.2.2. Actuarial reporting requirements for general insurance business

The Governing Body of an Insurer to which this Rule applies:

• (a) must consider annually whether to commission an independent actuary to report on its business; but
• (b) must commission such a report at least once every 3 years.

9.2.3. Qualifications of independent actuary

(1) If an Insurer decides to commission an actuarial report, it must appoint, to prepare the report, an individual who:

• (a) has the qualifications set out in subrule (2); and
• (b) satisfies the criteria set out in subrule (3).

(2) The qualifications are:

• (a) that he or she has appropriate formal qualifications and is a member of a recognised professional body;
• (b) that he or she has at least 5 years’ relevant experience in providing actuarial services to Insurers, either in the AIFC or in other jurisdictions; and
• (c) that the experience is sufficiently recent to ensure that he or she is familiar with current issues in the provision of such services to Insurers.

(3) The criteria are the following:

• (a) that he or she does not exercise any Controlled Function or Designated Function for the Insurer or a related body corporate (except a related body corporate that is a subsidiary of the Insurer);
• (b) that he or she is not:
• (i) an auditor (under section 136(1) of the Companies Regulations for the Insurer;
• (ii) an Employee or Director of an entity of which that auditor is an Employee or Director; nor
• (iii) a partner of that auditor.

9.2.4. Actuarial reports

(1) The actuary who prepares an actuarial report for the purposes of PINS 9.2.2 must sign it.

(2) The Insurer concerned must ensure that the actuary is given appropriate access (that is, such access as the actuary reasonably believes to be necessary to prepare the report) to:

1. (a) all relevant data, information, reports and staff of the Insurer; and
2. (b) so far as possible, any contractor of the Insurer.

(3) The report must give details, for each category of General Insurance Business that the Insurer conducts, of the following matters:

1. (a) recent trends in the business;
2. (b) the actuary’s estimate of the value of the Insurance Liabilities and assets arising in respect of those liabilities, determined in accordance with PINS 8 (Valuation);
3. (c) if the assumptions or the valuation method used for that estimate differ from those adopted for the previous valuation of those assets and liabilities, the effect, as at the date on which the actuary signs the report, of those changes on the value of those liabilities and assets;
4. (d) the adequacy and appropriateness of the data that the Insurer made available to the actuary;
5. (e) the procedures that the actuary used to assess the reliability of that data;
6. (f) the model or models that the actuary used;
7. (g) the assumptions that the actuary used in the valuation process (including, without limitation, assumptions made as to inflation and discount rates, future expense rates and, if relevant, future investment income);
8. (h) how the actuary estimated the variability of the estimate;
9. (i) the nature and findings of sensitivity analyses that the actuary undertook.

(4) The Insurer’s Governing Body must give a copy of the signed report to the AFSA on or before the date on which the Insurer must give its next annual prudential return to the AFSA under PINS 13.1.1 (Obligation to prepare prudential returns).

9.2.5. Additional powers of the AFSA

(1) If at any time the AFSA believes it is necessary that an Insurer to which this Rule applies should obtain an actuarial report relating to the Insurer’s operations, risk management or financial affairs, it may direct the Insurer to do so at the Insurer’s expense.

(2) The Insurer:

• (a) must appoint, to prepare the report, an actuary who has the qualifications, and satisfies the criteria, in PINS 9.2.3 (Qualifications of independent actuary); and
• (b) must notify the AFSA of the name, qualifications and experience of the actuary appointed.

(3) If the AFSA is not satisfied that the actuary appointed by the Insurer has those qualifications or satisfies those criteria, the AFSA may direct the Insurer to appoint an actuary nominated by the AFSA to prepare the report.

(4) The Insurer must submit the report to the AFSA within 3 months of the direction, unless the AFSA allows an extension of time in writing.