Today the AAE published a paper on “The Roles of Actuaries under Solvency II”.
Actuaries are acting in different roles requiring different competences and approaches. Actuaries are and will be asked to pick up more and more roles and responsibilities and as a profession need to be prepared.
The focus on the roles of the actuary and consequential actions are needed to accomplish the Vision and the Mission Statement of the Actuarial Association of Europe (AAE).
The Solvency II Directive changes the environment of insurance companies drastically: the complexity of the solvency quantification raises the bar on technical expertise; the governance system requires a sound risk management system and introduces the lines of defense. The public and other reporting requirements reflect the context of what Solvency II is trying to achieve and it can be argued that an independent review of these reports is required. The Solvency II regime also impacts the way the actuary contributes to the management and the monitoring of insurance and reinsurance undertakings.
The purpose of this article isnot only to illustrate what kind of new competences are expected of actuaries, it also points out how actuaries can be involved and how these roles are implemented in the different markets. It draws attention to the fact that, in addition to the expected contribution
of the actuary to the operations of the undertaking and in the context of the Actuarial Function (as defined in article 48 of the Directive), the existing roles as Appointed Actuary and in the context of the external audit may change; however new roles in Risk Management and Supervision are emerging.
It concludes that the scope of the involvement of the actuary has significantly increased with new areas for actuarial involvement emerging (even though practice can be different from one market to another).