12 November 2024
The
year 2023 was the fourth consecutive year of insurance companies submitting
actuarial reports under the Actuarial Work Rules (AWR) issued in March 2020.
The primary objective of those Rules is to enhance the role and
responsibilities of actuaries in the insurance sector in order to facilitate
informed decision-making by management and to provide greater technical support
to the business as the market sophistication continues to grow in the Kingdom.
Under the above Rules, an Appointed Actuary is obligated to perform a number of
actuarial analyses, at least, annually, and convey to the Senior Management,
Board of Directors and the Insurance Authority (IA) the outcome of those
analyses in the form of an actuarial report, prepared separately on each individual
topic This document encompasses IA’s observations
from its review of the following actuarial reports:
- Reinsurance Adequacy Report2023 (pages 2-12)
- Investment and Asset LiabilityManagement Report 2023 (pages 12-17)
- Solvency and Capital Report(pages 17-19)
A number of important
observations emerged from our review. We would like to share those observations
with the Company’s management, together with our expectations in respect of
those observations, in anticipation that management will consider each of those
observations and recommendations diligently, internal discussions will be held
at the Board of Directors’ level and with all relevant functions, and
appropriate actions will be taken by management. Furthermore, similar to last
year, a separate brief document accompanies this letter that summarizes IA’s
expectations on each topic mentioned in this letter.