Actuarial departments need to be redefined for Solvency II

Insurers need to redefine their actuarial departments to take account of Solvency II, says OAC Actuaries and Consultants.

The independent consultancy said the new rules will have far reaching implications for the role of actuaries, which will expand to include greater involvement in risk management as well as the assessment of regulatory capital requirements.

OAC consultant actuary Christopher Critchlow said: “Preparing actuarial staff properly is a key element of Solvency II compliance for the industry. The fact that the actuarial role will change extensively in the new regime means that insurers need to start preparing now. As well as the assessment of regulatory capital and solvency, there will be greater responsibility and involvement in risk management.”

And Critchlow said the impending start date of Solvency II, set for January 2016, meant that insurers needed to act now to avoid being left behind.

“Insurers need to be confident that their actuarial staff have the right blend of experience, technical knowledge and regulatory understanding,” he said. “By planning for the impact of Solvency II now, especially as the national guidelines are set to be confirmed this year, insurers will give themselves the best possible chance of meeting, and exceeding, the requirements.”