Due to increasing financial reporting complexity and growing expectations from external auditors and regulators, insurers are exposed to a greater risk of reporting errors and consequences thereof. Insurers that implement and practice a strong actuarial governance framework can substantially reduce these risks while simultaneously increasing process efficiency. Yet, the range of actuarial governance practices found currently in the industry is large. More established insurance organizations may be updating long-standing (and possibly outdated) frameworks, while newer companies may not even have a formal governance framework in place. Regardless of the situation, many insurers could benefit from refreshing actuarial governance objectives and from exploring methodologies that can be employed to meet these goals. Explore the world of actuarial governance as it pertains to models, assumptions and data. Outline some key considerations for the development of governance frameworks that balance pragmatism and the complexities faced by insurers today, including references to relevant ASOPs where applicable. As an illustrative case study, considerations for an actuarial governance process from LDTI financial reporting requirements will be examined.
By attending the session, you will be able to:
- Understand objectives and methodologies employed for a robust actuarial governance framework.
- Acknowledge implications and questions that arise from applying actuarial governance framework concepts to complex processes.
- Discover specific considerations and recommendations for enhancing actuarial governance processes resulting from the implementation of LDTI.
TRACK: Cultivating future opportunities, Protecting long-term economic progress