Hi, Does actuary have a say in the reserving basis? Or the ultimate basis is decided by the management/regulators?
Different regulatory regimes will have its own requirements and practices. Within the European regulatory regime (Solvency II), the role of the 'actuarial function' is set out in legislative text. The role of the 'actuary' is technically undefined: the SII text simply states that the "persons" carrying out the requirements of the actuarial function "[must] have knowledge of actuarial and financial mathematics [and] are able to demonstrate their relevant experience with applicable professional and other standards". This wording helps to cater for less 'actuarially developed' markets that may have a limited, if any, pool of qualified actuaries to choose from. The actuarial function is responsible for overseeing the calculation of technical provisions, amongst other things.
