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Companies Ordinance |
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The
Insurance Companies (Actuaries' Standards) Regulation
[PDF] has been made by the Insurance Authority ("IA")
under section 59(2) (aa) of the Insurance
Companies Ordinance (Cap.41) ("ICO") to prescribe
the standards to be complied with by the appointed actuaries
of insurers. It was gazetted on 13 October 2000 and commenced
operation on 1 January 2001.
Under section 15(1) (b) of
the ICO, an insurer carrying on long term insurance business
is required to appoint an actuary ("appointed actuary").
In carrying out his duties, the appointed actuary is required
under section 15C of the ICO to comply with the prescribed
standards or other standards as the IA accepts as being comparable
to the prescribed standards. The Regulation is made for the
purpose of section 15C of the ICO to prescribe the Professional
Standard 1 ("PS1") issued by The
Actuarial Society of Hong Kong ("ASHK") as the
standard to be complied with by the appointed actuaries.
The PS1 has been developed
by the ASHK
in consultation with the IA. It sets out the role and duties
of an appointed actuary under a fully fledged appointed actuary
system. The appointed actuary is responsible for advising
on all actuarial aspects of the financial management of long
term insurance business including proper premium setting,
a prudent reserving policy, a suitable investment allocation
and appropriate reinsurance arrangements; and due reporting
of irregularities to the regulatory authority. The IA therefore
considers that compliance with the PS1 is desirable in enhancing
the supervision of long term insurers and is in the interests
of policy holders.
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