05 October 2026
Introduction:
The year 2025 marks the sixth consecutive
cycle of actuarial reports submitted by insurance companies under the Actuarial
Work Rules (AWR), issued in March 2020.
Purpose:
The AWR aims
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.
Obligation:
Under these Rules, the 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.
Scope:
This document encompasses IA’s observations from its review
of the following actuarial reports, including a section on the contribution of
Internal Actuarial Functions in producing these reports:
1. Reinsurance Adequacy Report 2025
2. Investment and Asset Liability Management Report 2025
3. Actuarial Function’s Contribution
Impact:
A number of important observations emerged
from the Insurance Authority’s review and shared with the Company’s management,
together with AI expectations in respect of those observations, in anticipation
that the 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.
Approach:
Similar to last year, a separate document
accompanies the review, summarizing IA’s expectations of the Board of Directors, Senior Management,
Appointed Actuary, and Head of Actuarial Function.