On 27 October, the Central Bank issued a guidance document for (re)insurance undertakings on the Head of the Actuarial Function (HoAF) role. The Central Bank has previously issued the Domestic Actuarial Regime and Related Governance Requirements which require undertakings to appoint a HoAF as a PCF role.
The aim of the Guidance is to provide assistance to re(insurance) undertakings when completing certain of the actuarial tasks set out in Regulation 50 of the European Union (Insurance and Reinsurance) Regulations 2015. The guidance addresses general expectations of the HoAF role, and provides guidance on certain tasks that are undertaken by the HoAF, namely opinions on the overall underwriting policy, opinions on the adequacy of reinsurance arrangements and the contribution by the HoAF to the effective implementation of the Risk Management System (specifically in relation to the calculation of capital requests and the opinion on the ORSA process).
The application of the guidance to an undertaking will depend on its size, type and complexity. Undertakings are not required to adopt the practices outlined in the guidance. However they may need to explain how the way they have decided to proceed ensures compliance with both the 2015 Regulations and the requirements of the Central Bank.
It is intended that the guidance will be updated to reflect the development of the issues outlined therein.
A link to the guidance is here.