On Jun. 5, TAI FSC revised directions for actuaries re certified reports.
TAI FSC, TAI Justice made amendments to the Directions for appointed actuaries of an insurance company to conduct the certified report as well as to Directions for external reviewing actuaries of an insurance company to peer review the certified report.
On the same day, TAI FSC notifiedLife Insurance Association and Non-life Insurance Association re the amended directions and required them to inform their members.
Defines the scope of the certified report and peer review of the certified report.
Appointed actuaries and external reviewing actuaries shall certify the report in accordance with the Insurance act, Regulations governing appointed actuaries and external reviewing actuaries of insurance companies (see #184791) and these directions.
Certified Reports
Certified report shall include an actuarial opinion letter and an actuarial memorandum.
Appointed actuaries shall provide opinions on the report such as whether it complies with relevant regulations, and whether appropriate reserves are reasonably set aside.
Actuarial opinion letter shall include content including the date/document no., actuarial opinion such as determination of insurance premium rates and signature of actuaries.
Actuarial memorandum shall include analysis, methods and calculation processes used, and professional inferences and suggestions made by actuaries, with explanations.
Specifies the submission of the certified report by insurance firms to the competent authority, either report in one stage, within 3 months after year end, or in two-stages.
If the actuary discovers a material error in the report, he should immediately notify the insurance company and send the revised report to its board of directors within 10 working days; insurance company shall submit the report within 10 working days.
The record of the certified report shall be kept at least seven years.
Peer Review of Certified Reports
The peer review report shall include a summary of review opinions and a review memorandum, express opinions on review items designated by competent authority.
The memorandum shall include opinions of reviewing actuary whether the methods and calculation processes used in the certified report are reasonable and consistent.
Plus whether various assumptions used have been properly explained with reasonable basis, whether the project proposes clear evaluation standards, and recommendations.
Insurance company shall submit the reviewed report within five months after year end.
The record of the peer review of the certified report shall be kept at least seven years.
Effectiveness
The directions will be effective from Dec. 31, 2024.
