01 December 2021
The
year 2021 was the second consecutive year of insurance companies submitting
actuarial reports under the Actuarial Work Rules issues in March 2020. The
primary objective of those rules is 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.
This document encompasses SAMA’s
observations from its review of the following actuarial reports:
1) Actuarial Reserves at
year-end 2021 (pages 2 – 13)
2) Actuarial Pricing
report 2021 for Health and Motor businesses (pages 14 – 19)
3) Reinsurance
Appropriateness and Adequacy report 2021 (pages 20 – 23)
4) Solvency and Capital
report 2021 (pages 24 – 26)
5) Experience Studies
report 2021 (pages 27 – 30)
6) Investment and Asset
Liability Management report 2021 (pages 31 – 34)
A
number of important observations emerged from the above reviews performed by
SAMA. We would like to share those observations with the company’s management,
along with our expectations in respect
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.