8. Professional guidance

Answer 1

Non-compliance won’t automatically result in grounds for complaint under disciplinary procedures
If committee investigates allegations of unprofessional conduct, they’ll consider how much a member complied with the relevant APN

Answer 2

Regarded as best practice
Guidance for HAF and actuaries guiding or reviewing this function or act in similar capacity

Answer 3

Best practice
Deals with principles to determine and present EV and VNB
Aims to achieve consistency between companies and European Embedded Value (EEV) principles

Answer 4

Best practice
Deals with role of the independent actuary, by the PA to assess a transaction under section 50 of the Insurance Act, i.e. a transfer, fundamental transaction or change of institutional form of insurance business

Answer 5

Best practice for actuaries involved in insurance company takeovers

Answer 6

Best practice and recs suitable methodology to reserve for embedded investment derivatives
Recommends market consistent stochastic models
Has section on calc of CAR (Capital Adequacy Ratio) for embedded investment derivatives

Answer 7

Best practice guidance for HAF for SA insurance groups

Answer 8

Estimated future expense cashflows for TPs and SCR
Guidance on how to determine expenses incl. in TP and SCR for reporting under Prudential Standards

Answer 9

On premium and benefit reviews

Answer 10

Best practice and guidance for market conduct aspects related to reviews on “old generation” UL products

Answer 11

Best practice and guidance for TP and/or SCR under Prudential standards, regulations, directives and guidance notes as required by IA
Best practice and guidance to determine expenses included in TP and treatment in calculation of SCR

Answer 12

Market conduct and TCF
Not just for life insurance

Answer 13

APN 904 reviewed- relating to TCF wrt surplus

Answer 14

All members must adhere to your
Material breach will be grounds for complaint
Departure from strict interpretation of SAP must disclose and justify

Answer 15

Combo of mandatory and advisory guidance.
Covers:
Method and bases that must be adopted for published IFRS reporting until IFRS17
FSV
Prudential supervisory reporting
Tax liability
Will be retired in 2023

Question 16

What constitutes as professionalism for actuaries

Answer 16

Application of specialist and up-to-date actuarial knowledge and expertise
Demonstrating of ethical behaviour esp in doing actuarial work
Member’s accountability to Society for professional oversight

Answer 17

Educational docs providing info on current or emerging practices related to practice area
Not prescriptive and not definitive statement on generally accepted best practice
List:
Information Note: Loss Absorbing Capacity of Deferred Taxes Considerations
Unitisation Information Note: Retirement Fund considerations for actuarial staff and administrators
Data Migration Information Note: Considerations for life insurance actuaries
Information Note: Systems testing requirements and actuarial involvement
Information Note: Cyber Risk
Information Note on retrenchment risk in SCR
Information Note: Covid-19 considerations for life assurance actuaries

Answer 18

Considerations wrt loss-absorbing capacity of deferred taxes for actuaries calculating or reviewing SCR for regulatory reporting under IA

Answer 19

People providing actuarial input into calcs and implementation of unitisation rates, or people involved in administration of retirement funds where unitisation is used
Aims to assist mitigate and manage risks

Answer 20

Summarises main considerations highlighted in survey completed by key insurers with reasonable retrenchment risk exposure
Additional considerations when:
Evaluating appropriateness of standardised formula
Assessing risk profile and scenarios as part of ORSA
Incorporating retrenchment risk into other internal models and asmts
Information Note: Covid-19 considerations for life assurance actuaries