ESAP3 (ORSA) Task Force

Terms of Reference

Membership

Chairperson: David Hare

Members

Kirsten Sasady Den Danske Aktuarforening
Matthias Pillaudin Institut des Actuaires
Dieter Köhnlein Deutsche Aktuarvereinigung
to be determined Society of Actuaries in Ireland
Paola Scarabotta Istituto Italiano degli Attuari
Ana Martins Pereira Instituto dos Actuarios Portugueses
Samuel Achord Institute and Faculty of Actuaries
David Hare Institute and Faculty of Actuaries

 

Terms of Reference

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In the light of the discussions at the Standards Freedoms and Professionalism Committee (SFPC) and the Insurance Committee (IC) at the Annual Meetings of the AAE in Helsinki on 1-3 October 2014, and the vote by members of the SFPC to approve the Proposal to Develop a Standard on actuarial work relating to the ORSA, the Task Force shall:

  1. Develop an Exposure Draft (ED) of ESAP3 for approval by the SFPC at their meeting on 26 March 2015 in Paris regarding actuarial practice in relation to the Own Risk and Solvency Assessment (ORSA) process of an insurance or reinsurance entity or group under Solvency II and assist the Standards Project Team (SPT) in transmitting the ED to Member Associations and other relevant stakeholders. The date specified above is a target and, if the RMTF is not able to develop a good quality ED by that date, then it should target a completion date as soon after that as possible.
  2. In developing the exposure draft
    • ensure that a principles-based approach is maintained in order to draft the model standard at a sufficiently high level of generality to accommodate a wide range of practice by insurers and in different jurisdictions in relation to carrying out the ORSA, as well as the likelihood that practice will continue to evolve in coming years;
    • focus on the needs of intended users of actuarial work on the ORSA;
    • avoid duplication and overlap with ESAP1 (and any relevant IAA and AAE model standards);
    • bear in mind that the ORSA is not solely an actuarial prerogative and that actuaries will be working alongside those with different experience and expertise; and
    • formulate a model standard for actuarial work in connection with the ORSA which could also be seen as a hallmark of quality work in that context by other experts.
  3. Liaise with the group established by the IC to develop an EAN on actuarial work in connection with the ORSA in order to
    • ensure that points identified by the Risk Management Task Force as being usefully expanded in educational material are brought to the attention of the IC group; and that
    • points identified by the IC group as appropriate for inclusion as part of the standard are given appropriate consideration;
  4. Liaise with the Actuarial Standards Committee (ASC) of the IAA in accordance with the agreed protocol in order to keep up-to-date with work being done within the IAA on the development of ISAPs and IANs regarding enterprise risk management;
  5. Evaluate the comments received in response to the ED; propose to the SPT how to deal with those comments; prepare a draft Basis for Conclusions; propose to the SPT whether or not a re-exposure is necessary; and propose to the SPT a final draft of the standard.

The Task Force is established by and accountable to the SPT. The Task Force will provide a report to the SPT by 31 December 2014 on progress towards developing the exposure draft, so that the SPT can monitor the development of the work and prepare the ground for discussion of the ED at the SFPC meeting in Paris on 26 March 2015.

November 2014


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