On Dec. 11, DEN GVT issued responsible actuary requirements order.
DEN GVT, via the Ministry of Industry and Trade, published a new Executive Order on a Responsible Actuary, on behalf of DEN FSA, to provide for clarification under Act 718.
The Executive Order applies to life insurance companies and cross-sector pension funds licensed to conduct insurance business, as well as to non-life insurance companies that are licensed to conduct some business as in the form of reinsurance of life insurance.
The Order confirms the responsible actuary must be employed by the company, and the responsible actuary may only be appointed and dismissed by Board of directors.
In addition, the position of responsible actuary cannot be combined with the position of member of management or of Board of directors of the company, to be independent.
The responsible actuary must have completed the relevant education and participated in some practical actuarial work for a relevant company, or for the Danish Labor Market Supplementary Pension on a full-time basis, for at least 5 years within last 10 years.
A responsible actuary must have acquired in-depth knowledge of preparing reports, bonus systems, insurance technical statements, including the calculation of solvency capital requirements, calculation of provisions and preparing annual DEN FSA reports.
When the Board of directors has employed a responsible actuary, this must be reported to DEN FSA, by no later than 14 days after the employment of the individual actuary.
For the Board's adoption of the annual report, the responsible actuary must prepare a written actuarial report, containing conclusions from the actuary's report to DEN FSA.
For life insurance companies and cross-sector pension funds, the layout and content of the report must be prepared in accordance with the information in Appendix 1 of Order.
Intentional or grossly negligent violation of §§ 2-4, § 5, subsection 1, subsection 2, 1st and 2nd sentences, and subsection 3, § 6, § 7, subsections 1 and 2, as well as §§ 8 and 9 is punishable by a fine, unless a higher penalty is due under the Insurance Act.
Effectiveness
The Executive Order enters into force on Jan. 1, 2025 and at same time, subsection 2 of Executive Order 1305 of Nov. 28, 2017 on the responsible actuary rules is repealed.
