Actuarial function

The actuarial function is one of the four governance functions of insurance and reinsurance undertakings that are subject to the Solvency II supervision regime. It is responsible for the following tasks:

1. coordination of the calculation of the technical provisions pursuant to Section 1 of Chapter 8 of the Insurance Supervision Act 2016 (VAG 2016),
2. ensuring the appropriateness of the methodologies and underlying models used as well as the assumptions made in the calculation of technical provisions pursuant to Section 1 of Chapter 8 VAG 2016,
3. assessing the sufficiency and quality of the data used in the calculation of technical provisions pursuant to Section 1 of Chapter 8 VAG 2016,
4. comparing best estimates with empirical data,
5. informing the management board or administrative board and the managing directors of the reliability and adequacy of the calculation of technical provisions pursuant to Section 1 of Chapter 8 VAG 2016,
6. overseeing the calculation of technical provisions pursuant to Section 1 of Chapter 8 VAG 2016 within the scope of Article 164 VAG 2016,
7. expressing an opinion on the overall underwriting policy and on the adequacy of reinsurance arrangements; and
8. contributing to the effective implementation of the risk management system pursuant to Article 110 VAG 2016, in particular with respect to the risk modelling underlying the calculation of the Solvency and Minimum Capital Requirements, and to the Own Risk and Solvency Assessment pursuant to Article 111 VAG 2016.