The Global Village: Casualty Actuaries Meet the Challenges of International Markets May 9, 2001 Casualty Actuarial Society 2001 Spring Meeting Jay B. Morrow FCAS, MAAA

v Appointed Actuary and Reserve Opinion v External Auditors and Examinations

v Appointed Actuary and Reserve Opinion v What’s New?

Hungary and Czech Republic v Appointed Actuary must be approved by Ministry G Resident of country G Member of organization accredited by IAA v Must file Certification of G Premium rates G Technical reserves G Minimum solvency margin calculation G Actuarial methods

India Singapore - Proposed December 2001 Australia - Proposed July 2002 Ireland - Proposed December 2001

India Appointed Actuary Shall Be: v Ordinarily resident in India v Fellow of the Actuarial Society of India v Employee of insurer, or a consulting actuary v Not an appointed actuary of another insurer v Possess a Certificate of Practice issued by the Actuarial Society of India

India Appointed Actuary Powers & Duties v Access to all information and documents of insurer v Entitled to attend all meetings of management and directors v Render advice to management on: G Product design & pricing G Contract wording G Investments G Reinsurance v Certify assets and liability valuation v Inform management of action required to avoid G Contravention of Insurance Act G Prejudice to the interests of policyholders v Ensure G Rates are fair G Proper actuarial principals are used in determining liabilities

Singapore v Qualification G Fellow of the Casualty Actuarial Society G Fellow of the Society of Actuaries G Fellow of the Institute of Actuaries of Australia G Fellow of the Faculty/Institute of Actuaries G Approved by Casualty Practice Council of AAA v Required Submissions G Statement of Actuarial Opinion of Loss Reserves G Actuarial Report

Australia v Proposal to change entire Regulation Structure of General Insurance Companies v Details available at in the Policy section v Proposal requires appointment of a valuation actuary v Institute of Actuaries of Australia to provide definition, standards and guidance v Preliminary definition G Resident in Australia G FIAA or FIA v Proposed Reports G Insurance Liabilities Report G Risk Margin Diversification Report

Ireland v In response to an IMF/World Bank report, the Department of Enterprise, Trade and Employment has proposed a Technical reserve certification requirement v Certification to be signed by actuaries holding a practicing certificate issued by The Society of Actuaries in Ireland v Certification to include Loss, LAE, UEPR and any additional amount to cover unexpired risks

Auditors and Examiners v Countries where auditors or examiners requested actuarial support for reserves: G UK G Ireland G Australia

v Countries where auditors or examiners are requesting or insisting on actuarial support for reserves: G UK G Ireland GAustralia G All of Western Continental Europe G Poland G Bulgaria G Hungary G Czech Republic G Singapore G Malaysia G Philippines G Hong Kong G Kenya G Israel G South Africa G Brazil G Argentina