Responsible actuary
The responsible actuary of an insurer is an actuary who fulfills the relevant statutory tasks in the insurer. This includes in particular the monitoring of the premium calculation, the determination of the actuarial reserves and the profit sharing . Because of his legal duties, the responsible actuary has a special, legally regulated position in the insurer. Corresponding legal regulations exist in many countries, including Germany , Austria and Switzerland .
History of origin
Even in the early days of life insurance, insurers voluntarily commissioned actuaries with monitoring tasks, some of which correspond to those of today's responsible actuaries. The British insurer "Society for Equitable Assurances on Lives and Survivorships" has been providing a corresponding position since it was founded in 1762. In 1973, Great Britain first introduced such a legally established position, known as "appointed actuary", through the Insurance Companies Act . Many, especially Anglo-Saxon countries such as Canada , Australia and also the USA later followed this model. Priority is hereafter to monitor that his task mathematical provision and other technical provisions are determined in accordance with the regulations. In the course of the harmonization of the European insurance market in 1994, a corresponding position was created by national law in many other European countries, such as Germany , Austria and Switzerland . In 2000 Great Britain divided the duties of the "appointed actuary" into several positions in order to ensure that they were exercised independently of one another.
Legal basis in Germany
According to Section 11a of the Insurance Supervision Act (VAG), every life insurance company has to appoint a "responsible actuary" who must be reliable and professionally qualified. Professional suitability requires sufficient knowledge of actuarial mathematics and professional experience. A sufficient experience is to regularly take, if at least three years activity is detected as an actuary. The further content of the provision shows how important the position of the actuary is to insurance supervision. The actuary must be named to the supervisory authority before appointment and is appointed and dismissed with the consent of the supervisory board (Section 11a (2) and (2a) VAG). The supervisory authority can demand that another responsible actuary be named or appointed. It has according to § 11a para 3 VAG ensure. That, in the calculation of the insurance premiums and the mathematical reserves the principles of § 11 VAG and due to the § 65 , para. 1 VAG ordinances issued and § 341f HGB (aggregate reserve) are observed. In doing so, he must check the company's financial situation, in particular, to ensure that the obligations arising from the insurance contracts can be met at all times and that the company has sufficient funds.
However, the activity of the responsible actuary is not limited to life insurance companies (including pension and death funds). According to Section 11d VAG in conjunction with Section 11a Paragraph 1 Clause 1 VAG, an actuary is also involved in accident insurance with premium reimbursement, according to Section 12 Paragraph 2 Clause 1 VAG also in substitutive health insurance and property / accident insurance with pension benefits from accident or to order liability insurance .
Tasks in Germany
The main task of the responsible actuary is to ensure the expert calculation of the actuarial reserve in accordance with commercial law regulations and the agreement of sufficient insurance contributions in accordance with the statutory provisions and to make suggestions for an appropriate profit sharing. It confirms the correct determination of the actuarial reserve under the balance sheet.
The responsible actuary must ensure that the relevant statutory provisions are observed when calculating the contributions and the actuarial reserves. This does not apply to death benefit funds and pension funds for which a determination according to § 156a Paragraph 3 Clause 5 VAG has not been made (“regulated pension funds”), since the calculation is finally specified in these by the approved business plan .
He must check the financial position of the insurer to see whether the obligations from the insurance contracts can be met in the long term and whether sufficient own funds are available in the amount of the solvency margin . He must confirm under the balance sheet that the actuarial reserve has been set up in accordance with the relevant statutory provisions (actuarial confirmation). In the case of death benefit funds and regulated pension funds, it must be confirmed that the actuarial reserve corresponds to the approved business plan.
The responsible actuary has to explain in a report to the management board (“actuary report”) which calculation approaches and assumptions are based on this confirmation. This does not apply to health insurances and regulated pension and death funds. In these companies, the actuary responsible can not “freely” determine the calculation bases: In health insurance, the bases for determining the actuarial reserve are based on legal provisions. The calculation of the regulated pension and death funds is determined by the business plan.
If the responsible actuary determines that he cannot give the confirmation or only to a limited extent, he must inform the board of directors and, if necessary, the supervisory authority. This applies in particular to facts that significantly impair or endanger the development or continued existence of the company. The appointed actuary has suggestions for an appropriate the board profit sharing to make the with profits contracts. This does not apply to health insurance.
Classification of the responsible actuary in the hierarchy of the insurer in Germany
The position of the responsible actuary is not associated with a specific position in the corporate hierarchy. He is a regular employee of the company for larger insurers . Often he is a board member or head of the department actuarial department will be processed in which actuarial issues. In individual cases, its tasks are limited exclusively to the legal role. Small insurers, e.g. B. many company pension funds do not have their own actuarial office. As a rule, the external expert office that works for the insurer provides the responsible actuary. In all cases, he is legally obliged to perform his duties as the responsible actuary independently of his other duties. In the course of performing these tasks, he is not bound by instructions, not even from company management or his supervisor who is otherwise responsible for him.
Professional organizations
Responsible actuaries are often, if this is not even mandatory in the country concerned, members of national professional associations, for example in the German Actuarial Association (DAV) e. V., the Swiss Actuarial Association (SAV) or the Austrian Actuarial Association (AVÖ). The national professional associations or special organizations often issue regulations or standards as a basis for the activities of the responsible actuaries in addition to the legal regulations.
Individual evidence
- ↑ Georg H. Schroer, The responsible actuary in life insurance , 2000, p. 276
- ↑ Exception: smaller association according to § 53 VAG
- ↑ DAV - About us
