Aktu árské standardy a role aktuára v Solventnosti II

1. Aktuárské standardy a role aktuára v Solventnosti II Seminář z aktuárských věd Praha 23.4.2010 Jiří Fialka

2. Agenda • „Stakeholders“ v přípravě aktuárských standardů • Stávající aktuárské standardy • Návaznost na direktivu Solventnosti II • Actuarial Standards Task Force • Terms of Reference • Návrhy • Fit and Proper – discussion paper

3. „Stakeholders“ v přípravě aktuárských standardů • Groupe Consultatif • Zastřešuje evropské aktuárské společnosti • Hájí zájmy evropských aktuárů • CEIOPS • Zastřešuje pojišťovací dohledy • Je pověřen Evropskou komisí, aby připravil regulaci druhé úrovně pro Solventnost II • Bude transformovaný do EIOPA • Evropská komise • Zodpovídá za regulaci druhé úrovně

4. Stávající aktuárské standardy • IAA – International Actuarial Standards of Practice • EU – každý stát jinak • Existence-neexistence standardů • Témata • Kdo vydává • Kdo sleduji plnění • UK Board for Actuarial Standards • Aktuáři i ne-aktuáři • Viz samostatný Excel

5. Návaznost na direktivu Solventnosti II, §48 §48 Pojistněmatematická funkce (překlad Ministerstvo financí ČR) • Pojišťovny a zajišťovny zřídí účinnou pojistněmatematickou funkci, která: • koordinuje výpočet technických rezerv; • zajišťuje přiměřenost používaných metodik a podkladových modelů, jakož i předpokladů učiněných při výpočtu technických rezerv; • posuzuje dostatečnost a kvalitu údajů používaných při výpočtu technických rezerv; • srovnává nejlepší odhady se zkušeností; • informuje správní, řídící nebo kontrolní orgán o spolehlivosti a adekvátnosti výpočtu technických rezerv; • dohlíží na výpočet technických rezerv v případech stanovených v článku 82; • vyjadřuje názor na celkovou koncepci upisování; • vyjadřuje názor na adekvátnost zajistných ujednání; • přispívá k účinnému provádění systému řízení rizik uvedeného v článku 44, zejména pokud jde o konstrukci rizikových modelů, které jsou podkladem výpočtu kapitálových požadavků stanovených v kapitole VI oddílech 4 a 5 a pokud jde o posouzení uvedené v článku 45.

6. Návaznost na direktivu Solventnosti II, §48 (2) • Pojistněmatematickou funkci vykonávají osoby, které mají znalosti pojistné a finanční matematiky, jež jsou přiměřené povaze, rozsahu a komplexnosti rizik spojených s činností pojišťovny nebo zajišťovny, a které jsou schopné prokázat své příslušné zkušenosti na příslušné odborné a jiné úrovni. 2. The actuarial function shall be carried out by persons who have knowledge of actuarial and financial mathematics, commensurate with the nature, scale and complexity of the risks inherent in the business of the insurance or reinsurance undertaking, and who areable to demonstrate their relevant experience with applicable professional and other standards.

7. Actuarial Standards Task Force • Terms of reference • Aktuárské standardy • Role aktuára

8. Actuarial Standards Task Force Objectives • To establish, review and maintain standards to support actuarial activities in relation to Solvency II,in the public interest, to promoting high quality actuarial practice and convergence of practice • greater level of technical detail • effective, open, transparent and responsive consultation process • To assist all actuaries .. within a common professional framework for Solvency II. • To promote and support the role of actuaries in a wide range of activities under Solvency II.

9. Actuarial Standards Task Force Principles of standard-setting and implementation • Standards should serve the public interest and address the needs of users of actuarial services SII. …not be seen as prepared by the actuarial profession acting in isolation, or to serve its own members’ interests • An open and transparent process which fully involves key stakeholders

10. Actuarial Standards Task Force Legislative background • Level 2 measures: ”CEIOPS shall adopt, following a period of public consultation, European actuarial guidelines on technical issues, taking into account the standards set in national and international actuarial associations” • Addopt vs. endorse • Technical vs. wider scope (L1: ‘professional and other standards’) • Fit & proper vs. GC active and continuous approach

11. Actuarial Standards Task Force The role of the Groupe Consultatif Two alternative approaches: • EIOPA would call for advice from the actuarial profession (which would include the Groupe Consultatif and other ‘actuaries’ in the market) in respect of specific types of guidelines which they have decided will be needed; • EIOPA would establish a Working Group or Task Force, with representatives of various stakeholders, in order to develop a guideline or set of guidelines. GC believesto be an opportunity for the GC to play a part in standard-setting… all of the major activities under Solvency II which might be expected to be carried out by actuaries

12. Actuarial Standards Task Force The role of the Groupe Consultatif • The Board might consider it appropriate to develop public interest standards (qualification standards, ethical standards, governance standards and communication standards) in addition to technical standards • Mandatory vs. recommended • Adoption of standards by localassociations • Member Associations would be required to adopt the standard • Direct application to members of Member Associations • GC in General Meeting to adopt as a binding GC standard.

13. Actuarial Standards Task Force Dueprocess • Proposalby the ASB, by the Groupe Consultatif, by the European Commission or by EIOPA, would be tabled that an actuarial standard was needed for a particular aspect of actuarial work under Solvency II. • The ASB would prepare a discussion paper… if… • there is uncertainty about how to interpret what should be done • there is diversity of practice which it is desired to narrow • a standard would be effective in narrowing range of practiceetc. • a consultative document by ASB on the principles and main elements to be included in the standard. • Consultation with stakeholders • Exposure draft

14. Actuarial Standards Task Force Due process (cont’d) • The ASB would consult all Member Associations on the proposed content before going out to wider consultation. • Consultation with a wide range of stakeholders. • The ASB would modify the draft. • If substantial stakeholder disagreement with the exposure draft, a further period of consultation on a second exposure draft would be undertaken before adoption and endorsement.

15. Actuarial Standards Task Force Monitoring and ensuring compliance • Each Member Association of the Groupe would be expected to require their members to comply • Individual associations would be responsible for monitoring the compliance of their members with the standards • In practice the main responsibility for monitoring compliance might rest with the supervisory authorities, who would be in a better position to be aware of whether actuaries are complying or not • Associations would investigate complaints that an actuary was not complying with a standard and take disciplinary action

16. Actuarial Standards Task Force Operational aspects of standard-setting • Resource intensive... • Drafting of consultation documents and standards would be mainly carried out by volunteers. • The Groupe itself is proposing to acquire legal status through becoming a Swiss Verein. • Board would have actuarial members and non-actuarial members. • Travel and accommodation expenses of Board members would be reimbursed. EIOPA and EC as observers. • Max. 12 members.

17. Actuarial Standards Task Force What activities are needed? • establishment and management of the ASB • drafting of the standards • management of the consultation processes • possible redrafting and further periods of consultation • monitoring and enforcing standards and applying sanctions in case of non-compliance • keeping standards up-to-date

18. Actuarial Standards Task Force What types of resources are needed? • actuarial resources to draft and redraft the exposure standards • administrative resources to manage the due process • expenses and possible remuneration of the ASB members • office accommodation and technical facilities Options for actuarial resources • volunteer activity, similar to the work of committees and Solvency II project • secondment of professionals from industry and/or companies • professionals hired and the costs financed by the GC with possible external sources of finance

19. Actuarial Standards Task Force What standards have been discussed so far? • Public interest standards including • qualification standards • ethical standards • governance standards • communication standards • Technical standards including • interpretative standards • technical implementation standards

20. Actuarial Standards Task Force • The standards discussed earlier in this paper and not related directly to Article 48 were: • the risk management system described in Article 44 (which itself includes asset-liability management and the internal model); and • the Own Risk and Solvency Assessment in Article 45. • the risk management function as a whole

21. Actuarial Standards Task Force • Resources for the management of the due process • additional secretariat staff of 1- 3 persons • Options for financing 1) An increase in the fees payable to the Groupe by member associations 2) Funding from the European Commission or EIOPA 3) Additional voluntary contributions from (some) member associations 4) Donations raised from the industry and/or consultants 5) Revenue from running CPD seminars, especially on Solvency II topics

22. Fit and Proper – discussion paper • Article 42 of the Solvency II Directive sets out ‘fit and proper’ requirements for persons who effectively run the undertaking or fulfil other key functions, including the actuarial function and the risk management function. The core provision is set out in Article 42(1) as follows: “Insurance and reinsurance undertakings shall ensure that all persons who effectively run the undertaking or have other key functions at all times fulfil the following requirements: (a) their professional qualifications, knowledge and experience are adequate to enablesound and prudent management (fit); and (b) they are of good repute and integrity (proper).”

23. Fit and Proper – discussion paper • Fitness concerns the professional qualifications, competence and experience needed to fulfil the relevant function or position within the company. • reference to professional qualifications in the Directive clearly suggests membership at an appropriate level of a recognised professional body • No continuous assessment of competence or for any specific requirement on the individual to keep up-to-date or to expand and develop his or her knowledge as the market situation and technical requirements evolve.

24. Fit and Proper – discussion paper • Propriety relates to the reputation and track record of the individual in regard to integrity and good behaviour. • To be assessed whether there is any evidence to the contrary • Evidence to the contrary might not be available because it has not come to light, or the individual may not have been tested in the past in ways which would have shown up potential lack of integrity. • Different levels of professional qualifications, knowledge and experience might be seen as appropriate for different types of undertaking, whereas the propriety requirements should apply in full in all cases.

25. Fit and Proper – discussion paper • Although the onus is on firms to appoint appropriately qualified individuals, supervisory authorities will need to have a suitable benchmark against which to measure whether what firms are proposing is acceptable. • Ethical standards • Federation of European Accountants (FEE): without integrity, no professional activity can be relied upon. • Whistle blowing

26. Fit and Proper – discussion paper The way forward • Successful introduction of Solvency II will require a very high level of professionalism, as well as technical competence, ...for ... the actuarial function and the risk management function. • Specific advanced technical skills which actuaries have should be used in the public interest and not abused to the benefit of firms and the expense of customers. • Public expectation that professions such as actuaries, accountants and internal auditors will exhibit integrity and other professional characteristics at a level significantly above what might be regarded as the general norm of business behaviour.

27. Děkuji za pozornost! Aktuárské standardy a role aktuára v Solventnosti II Seminář z aktuárských věd Praha 23.4.2010