Long Term Insurance Act, 1998 (Act No. 52 of 1998)Board NoticesNotice on Governance and Risk Management Framework for Insurers, 2014Part 5 : Internal Control System27. Actuarial function |
| (1) | The actuarial function must provide assurance to the board of directors regarding the accuracy of the calculations and the appropriateness of the assumptions underlying the insurance liabilities and the capital adequacy requirement, by, at least, performing the following functions: |
| (a) | reviewing and attesting to the reliability and adequacy of the insurance liabilities and the capital adequacy requirement, including by— |
| (i) | ensuring the appropriateness of the methodologies and underlying models used and assumptions made; |
| (ii) | assessing the sufficiency and quality of the data used in the calculations; |
| (iii) | comparing best estimates against experience when evaluating liabilities; |
| (iv) | informing the board of directors of the reliability and adequacy of the calculations; and |
| (v) | overseeing the calculations in the cases where, due to insufficient data of appropriate quality to apply reliable actuarial method, approximations were used in the calculation of liabilities and the capital adequacy requirement; |
| (b) | expressing an opinion on the asset-liability management policy and the underwriting risk management policy; |
| (c) | expressing an opinion on the reinsurance and other forms of risk transfer policy and the adequacy of reinsurance arrangements; and |
| (d) | expressing an opinion on the actuarial soundness of premiums, benefits, and any other values thereof, including the awarding of bonuses to policyholders. |
| (2) | Subsection (1) does not apply where the responsibilities and functions of the actuarial function are performed by the statutory actuary in terms of section 20 of the Long-term Insurance Act to the extent that these requirements are addressed in section 20. |