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15 October 2010

The challenges actuaries will have to overcome to ensure they are ready for Solvency II were discussed at a plenary session of the Actuarial Profession’s General Insurance Research Organisation (GIRO) conference yesterday.

The speakers said that technical provisions are fundamental to Solvency II, and that actuaries should not underestimate the work involved to meet these requirements.  In addition, the importance of gathering the right data in order to calculate the technical provisions should not be underestimated, particularly if the data is not currently available.

Jerome Kirk, of Lloyd’s, said: “The technical provisions of Solvency II raise some questions about the actuarial role. Will actuaries find themselves under extra pressure? Will they need additional protection? And, if so, who is going to provide this?”

He added: “This is something which, as a profession, we have to get right. Solvency II calls for actuarial independence. Does this mean that actuaries can no longer be part of a firm’s management structure? Issues like this have to be addressed to ensure that we are ready for Solvency II.”

Mr Kirk emphasised that the new requirements for technical provisions are among the most important changes under Solvency II, and every aspect of them is changing.

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Enquiries: Tel. Michael Scanlan on 020 7632 1453 / 07798 804 871 or email michael.scanlan@actuaries.org.uk

Notes for editors

  1. Actuaries provide commercial, financial and prudential advice on the management of a business’s assets and liabilities, especially where long term management and planning are critical to the success of any business venture. They also advise individuals, and advise on social and public interest issues.
  2. Members of the Profession have a statutory role in the supervision of pension funds and life insurance companies. They also have a statutory role to provide actuarial opinions for managing agents at Lloyd’s.
  3. The Profession is governed by the Institute and Faculty of Actuaries. A rigorous examination system is supported by a programme of continuing professional development and a professional code of conduct supports high standards reflecting the significant role of the Profession in society.
  4. The Profession is available to provide expert comment to the media on a range of actuarial- related issues, including enterprise risk management, finance and investment, general insurance, health and care, life assurance, mortality, and pensions.

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