In addition to serving as appointed actuaries
for purposes of defining liability reserves, actuaries have taken active roles in assessing solvency, performing corporate planning, developing enterprise risk management systems, measuring solvency, valuing portfolios and assets, determining embedded and other forms of value, completing financial reporting, determining pricing and profits and developing loss evaluations.
It also proposed changes in the 16-year old regulations regarding Appointed Actuaries
by modifying the framework for their appointment and functions.
u Appointed Actuaries
- board members supposedly looking after policyholders interests - to lose some powers after the Equitable catastrophe.
It added that appointed actuaries
who have the final say on bonus rates should be barred from holding senior positions on insurance firms' boards, in order to avoid possible conflicts of interest.
The FSA also plans to review corporate governance, looking at issues such as whether appointed actuaries
should have responsibility to the shareholders or not, and a requirement to subject actuaries to external reviews.