Reserving Requirements For Non-Life Insurers and Reinsurers
In early 2014, the Central Bank of Ireland (CBI) published new reserving requirements for non-life insurers and non-life reinsurers and life reinsurers. Three documents relating to non-life (re)insurers have been approved for consultation regarding the new reserving requirements:
- ASP GI-4, Statement of Actuarial Opinion on Non-Life Insurance or Non-Life Reinsurance Business
- ASP GI-5, Peer Review in Accordance with Reserving Requirements for Non-Life Insurers and Non-Life Reinsurers
- Education Note: Data checks for the purposes of Non-Life (Re)Insurance Statements of Actuarial Opinion
ASP GI-4 has been proposed to replace the current ASP GI-2, Statement of Actuarial Opinion on Non-Life Technical Reserves, and ASP GI-3 and with effect from 31 December 2014. Annually, non-life (re)insurance companies are required to provide a Statement of Actuarial Opinion (SAO) to the CBI relating to their non-life business. ASP GI-4 sets out the role of the Signing Actuary with regards to the preparation of the (re)insurer’s SAO. The content of the SAO report is fully explained as well as guidance on the various data requirements.
ASP GI-5 sets out the standards for the peer review of an SAO in accordance with reserving requirements for non-life (re)insurance companies. The peer review is conducted by an independent Reviewing Actuary, who must comply with the standards set out in ASP-GI-5. An independent review of a non-life (re)insurer’s SAO is required for all companies that are rated High, Medium High, or Medium Low Impact under the CBI Probability Risk and Impact System (PRISM). The role of the Reviewing Actuary is explained in ASP-GI-5 such as the reviewing process and the documentation of the Peer Review Report. As with ASP GI-4, ASP GI-5 is proposed to come into effect from 31st December 2014.
The Education Note explains the data checks required for the SAO of non-life (re)insurers. This is intended as a non-mandatory assist to the Signing Actuary. In order for this Note to be easily accessible to Signing Actuaries, it may be published on the same webpage as ASP GI-4 and ASP GI-5. A large list of checks are suggested, with comments accompanying each and an aim of each check. Similarly this Note comes into effect from 31 December 2014.
The consultation period ends on 2 November 2014.
Barnett Waddingham welcomes further guidance and clarification for signing actuaries in these consultation papers.