The CBI has published draft conditions on the domestic actuarial regime and related governance requirements under Solvency II, which are intended to come into force from 1 January 2016. This follows a public consultation on its proposals to introduce specific domestic requirements in relation to the actuarial function for (re)insurers in addition to those set out under Solvency II. The CBI has indicated the conditions are still subject to consultation. Once finalised, (re)insurers will be required to comply with the conditions and related governance requirements and failure to do so may result in administrative sanctions being imposed by the CBI.
The conditions retain elements of the existing Reserving Requirements for Non-Life Insurers and Non-Life and Life Reinsurers, which took effect for financial years after 31 December 2014. This includes the requirement to conduct a peer review of the technical provisions, Actuarial Opinion on Technical Provisions and Actuarial Report on Technical Provisions. Firms will also be required to ensure they have a written reserving policy in place and continue to provide actuarial certification of technical reserves.
The prescribed form of the Actuarial Opinion on Technical Provisions, required to be submitted to the Central Bank, has been provided in an appendix to the conditions.
A link to the document is here.