Prudential Regulation Authority Rulebook

6.1

1. (1) A firm must provide for an effective actuarial function to:
1. (a) coordinate the calculation of technical provisions;
2. (b) ensure the appropriateness of the methodologies and underlying models used, as well as the assumptions made in the calculation of technical provisions;
3. (c) assess the sufficiency and quality of the data used in the calculation of technical provisions;
4. (d) compare the best estimate against experience;
5. (e) inform the governing body of the reliability and adequacy of the calculation of technical provisions;
6. (f) oversee the calculation of technical provisions in the cases set out in Technical Provisions 12;
7. (g) express an opinion on the overall underwriting policy;
8. (h) express an opinion on the adequacy of reinsurance arrangements; and
9. (i) contribute to the effective implementation of the risk-management system referred to in 3, in particular with respect to the risk modelling underlying the calculation of the SCR and MCR and to the firm’s ORSA.
2. (2) The actuarial function must be carried out by persons who have knowledge of actuarial and financial mathematics, commensurate with the nature, scale and complexity of the risks inherent in the firm’s business, and who are able to demonstrate their relevant experience with applicable professional and other standards.

[Note: Art. 48 of the Solvency II Directive]