Prudential Regulation Authority Rulebook

10.1

This Chapter only applies to a large non-directive insurer and a Swiss general insurer.

10.2

A firm must provide for an effective actuarial function to:

1. (1) coordinate the calculation of technical provisions;
2. (2) ensure the appropriateness of the methodologies and underlying models used, as well as the assumptions made in the calculation of technical provisions;
3. (3) assess the sufficiency and quality of the data used in the calculation of technical provisions;
4. (4) inform the governing body of the reliability and adequacy of the calculation of technical provisions;
5. (5) express an opinion on the overall underwriting policy;
6. (6) express an opinion on the adequacy of reinsurance arrangements; and
7. (7) contribute to the effective implementation of the risk management system referred to in 7.1.

10.3

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.