FSA's With-Profits Review
June 2010
The FSA has published its report into the review of with-profits that it carried out in early 2010.
Its main findings relate to poor governance and poor communications practice. Click on this link for a copy of the report.
If you would like to discuss this report then please contact us via the contact page.
The ABI issues guidance: "External Reviews of Internal Actuarial Advice: Best Practice for Life Insurers"
December 2009
Quoting from the report:
The ABI recommends that governing bodies of life insurers should consider obtaining external actuarial advice when internal actuarial advice is critical to a decision of the governing body that has significant implications for the operations of the company. Examples of where they may consider obtaining an external review of internally-sourced actuarial advice are where that advice:
a) influences decisions that can result in significant changes in the running of life insurance policies and therefore policyholder benefits – for example, a major change in PPFM, or the distribution of a material excess surplus;
b) affects the decision to enter into and/or the price paid in large transactions – for example, reinsuring in or out a significant block of business;
c) is critical to the implementation of material new regulatory or equivalent requirements – for example, the first determination of Solvency II liability or capital requirements; or
d) is provided in an area where the governing body is aware that industry or actuarial practice may have developed significantly since the last such review was obtained – for example, where there have been major changes in methodology for Individual Capital Assessment and projections of economic capital requirements.
Please contact us if you would like to discuss the services we could offer in assisting you to comply with this guidance.