Tuesday, 28 June 2011

Groupe Consultatif - Actuarial Function research (Solvency II slant)

I really liked this doc, released last week by Groupe Consultatif Actuariel Europeen (GCAE), which ostensibly is used to confirm that there is sufficient actuarial resource in the union to address the future requirements under Article 48 of Solvency II. Covers 20 countries and 18,000+ actuaries - of particular note;
  • Most work on setting, validating and certifying technical provisions (all sub categories were 80-90+%)
  • 46% of Life actuaries have a role in risk management
  • 48% of Life actuaries have a role in Internal Modelling
  • 54% of Life actuaries are involved in Internal Model validation (high, bearing in mind this at least nominally moves to Risk under Solvency II)  
  • 8 countries will only have qualified actuaries running the function (Life only) - 12 will be run by "mostly qualified actuaries"
  • The Groupe "will ensure that education is enhanced to capture the changed environment, especially in relation to risk management"
  • Highlight "concerns that the use of actuaries may be diminished in some way by the apparent change in role from the current position".
I struggled to work out the missing parts. From what I could see;
  • Only 20 actuarial associations covered by the research, against 27 EU members - the following countries are not covered; Bulgaria, Cyprus, Latvia, Malta, Romania, Slovakia, Slovenia. Would love to know if that is because they don't have associations worth talking about, or the function itself it not afforded the same gravitas as in other jurisdictions
  • Two countries have no qualification requirements!

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