Appointed Actuary

Appointed Actuary

An actuary employed by an insurance company to ensure compliance with all required reserve statutes. In the United States, insurance companies are required to have a certain percentage of their assets set aside to pay claims should the need arise. The NAIC requires insurance companies to employ appointed actuaries to make certain they are able to pay unexpected liabilities.
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He has served as appointed actuary for more than a dozen life insurers in the United States, Bermuda and the Cayman Islands.
The award was presented to Biresh Giri, Appointed Actuary & CRO, Acko in the presence of global business leaders at the recently held event in Dubai.
Each property--casualty (PC) insurance company has an appointed actuary, who is responsible of evaluating the estimation of loss reserves.
"Based on the experience gained, since the last amendment effected in the year 2013, the Authority felt that there is a need to amend the IRDA (Appointed Actuary), Regulations, 2000," it said.
The significant reforms suggested include the introduction of dedicated microinsurers, provisions for regulation of takaful and retakaful, regulation of local and foreign reinsurance business for enhancement of local capacity, regulation of reinsurance brokers, flexibility for introduction of new intermediaries, introduction of concept of web aggregators, insurance repository, require insurers to develop and offer certain insurance products, provision for introduction of industry wide guarantee fund to address systemic risk, requirement of "appointed actuary" and product filling for non-life insurance.
In addition to serving as an appointed actuary for purposes of defining liability reserves, actuaries have taken active roles in assessing solvency, corporate planning, developing enterprise risk management systems, measuring solvency, valuing portfolios and assets, determining embedded and other forms of value, financial reporting, determining pricing and profits, and developing loss evaluations.
The group will be sending work requests to other NAIC working groups and task forces to add, for example, an existing corrective powers supervisory element of the Hazardous Financial Condition Model Regulation into the accreditation standard for corrective action, add requirements for regulators to ask pointed questions about an insurers or reinsurers governance practices and the suitability of offices and directors and allow a state commissioner wide enough authority to deem an appointed actuary unsuitable for a property/casualty insurer, as is available now to regulators for life insurance actuaries.
Before becoming a non-executive director in 2004, David Rutter was the society's appointed actuary and later became finance director.
Keith Nicholson, former head of KPMG's financial services practice, will be named deputy chairman while David Rutter, the society's former appointed actuary and later finance director, stays on as vice-chairman.
The notification must also include a certification signed by the appointed actuary of the company stating what the company's reserve methodology is for the preneed insurances policies issued after January 1, 2009, but before January 1, 2012, as well as the 2001 CSO Mortality Tables' minimum standards that generate adequate reserves for the insured person(s).
State insurance commissioners are coming closer to developing a system of principles-based reserving that would allow a company's appointed actuary greater discretion in assessing a company's risks and the reserving that is needed to keep a company financially healthy.