• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

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indexo

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Hi,

Does actuary have a say in the reserving basis? Or the ultimate basis is decided by the management/regulators?
 
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.
 
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