On 1 November 2017, the International Association of Insurance Supervisors (IAIS), the International Actuarial Association (IAA) and the Access to Insurance Initiative (A2ii) signed a five-year agreement at the IAIS Annual Conference in Kuala Lumpur, Malaysia to enhance the actuarial skills of supervisory authorities. The key outcomes will be the development and delivery of supervisory capacity building training programs on actuarial services.
Victoria Saporta, IAIS Executive Committee Chair said that delivery of actuarial capacity building for IAIS members will help address a long-standing need of insurance supervisors and directly benefit the supervisors and the insurers they supervise.
Actuarial skills are essential to the prudential supervision of insurers in such matters as determining and managing policy liabilities, setting appropriate premiums, and managing capital requirements.
“The IAA is pleased to be a partner and integral contributor to this exciting and important global initiative. We fully support the need for actuarial capacity building, especially in emerging markets, with respect to both financial services supervisors and the industries they supervise. The partners to this initiative share a common commitment to the public interest and the long-term interests of all policyholders” said Thomas S. Terry, IAA President.
The actuarial skill set provides support for enterprise-wide risk management in financial services and more widely for long-term policyholder protection. All three organisations recognise the need to develop actuarial skills in supervisors, particularly those from emerging market and developing economies.
Peter Braumüller, A2ii Governing Council Chair, said: “Working with insurance supervisors in Latin America, Africa and Asia, the A2ii has seen the challenges insurance supervisors face in trying to move their markets towards a more risk-based approach to setting capital requirements when little or no local actuarial expertise is available. The A2ii is delighted to partner with the IAA and IAIS to address this gap and expand our supervisory capacity building”.
You can view the executed agreement and the related press release below.