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ABI launches consultation on acturial guidance

The ABI has today launched a consultation on proposed guidance for life insurers on when internally sourced actuarial advice should be subject to external review.

The draft guidance aims to help governing bodies of life insurers identify when they should consider obtaining external reviews of internal actuarial advice. Broadly, the guidance outlines this should happen when such advice:

. influences decisions that can result in significant changes in the running of life insurance policies and therefore policyholder benefits.
. affects the decision to enter into and/ or the price paid in large transactions.
. is critical to the implementation of material new regulatory or equivalent requirements.
. is provided in an area where the governing body is aware that industry practice may have developed significantly since the last such advice was obtained.

Subject to responses - due by 31 March 2009 - the ABI's guidance will be issued in July 2009 and will apply from 30 September 2009. The background to the guidance lies in the Morris Review of the actuarial profession and in subsequent work by the Actuarial Profession, the Professional Oversight Board and the Financial Reporting Council.

Peter Vipond, the ABI's Director of Financial Regulation and Taxation, said:

"The ABI guidance will codify existing best practice and will help life insurers take decisions on the basis of robust actuarial advice. It is vital that governing bodies are confident that they can rely on the actuarial advice they receive."

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Notes for Editors

1. Enquiries to:
Jonathan French 020 7216 7392 (Mobile: 07958 330 480)
Malcolm Tarling 020 7216 7410 (Mobile: 07776 147 667)
Erfan Hussain 020 7216 7411 (Mobile: 07712 841 184)
Kelly Ostler-Coyle 020 7216 7415 (Mobile: 07968 364 302)

2. The ABI is the voice of the insurance and investment industry. Its members constitute over 90 per cent of the insurance market in the UK and 20 per cent across the EU. They control assets equivalent to a quarter of the UK's capital. They are the risk managers of the UK's economy and society. Through the ABI their voice is heard in Government and in public debate on insurance, savings and investment matters.

3. An ISDN line is available for broadcasts.

Copies of all ABI news releases, together with other information from the Association, can be seen on our website http://www.abi.org.uk

More Articles by Association of British Insurers (ABI) ...

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