01 December 2020
The year 2020 was the first year when
insurance companies submitted actuarial reports under the new Actuarial Work
Rules, 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.
This Document encompasses
SAMA’s observations from its review of the following actuarial reports
submitted under the new Rules:
1. Actuarial Reserves
report at year-end 2020 (pages 1 – 8), including:
·
Link with Pricing Adequacy reports for Motor and Medical
·
Impact of COVID 19 and regulatory response to it
2. Reinsurance Appropriateness
and Adequacy report 2020 (pages 8 – 11)
3. Solvency and Capital
report 2020 (pages 11 – 14)
4. Persistency report
2020 (page 15)
5. Investment and Asset
Liability Management report 2020 (pages 15 – 16)
A number of important observations emerged
from the above reviews performed by SAMA. SAMA would like to share those
observations with the Company’s management and its 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.