Ever since the publication of Article 48 of the Solvency II Directive, there has been much debate and discussion as to the role and responsibilities of the Solvency II Actuary and how actuarial departments should be structured. In the Autumn of 2015, we carried out a survey to see how UK insurers have addressed the challenges.
In this briefing note we review the survey results and explore the key challenges, including:
- Understanding the roles of the Actuarial Function;
- Determining whether the Actuarial Function should calculate the technical provisions and Solvency Capital Requirement;
- Deciding whether team structure changes are required to meet the new regulatory requirements; and
- Determining where the Actuarial Function and Solvency II Actuarial Function Holder / Chief Actuary sit within the typical ‘three lines of defence’ control framework.