MAS enhances role of appointed actuaries

Asia

Singapore’s regulator has said it wants to enhance the role of appointed actuaries as they have a crucial role to play in protecting the interest of policyholders. It has opposed efforts by a section of the industry to work for the abolition of the post so that insurance companies have greater flexibility in formulating policies and determining prices in relation to the competition in the market. Low Kwok Mun, executive director of the Monetary Authority of Singapore, said that next year the regulator will publish enhancements to the guidance on internal governance and disclosure practices to improve the transparency of the management of participating funds in insurance companies. MAS expects appointed actuaries to play a major role in helping insurers ensure that the participating fund is managed in accordance with the rules and guiding principles set out in the board-approved policies of companies. “One of the key roles of an Appointed Actuary is the estimation of policy liabilities and hence the determination of reserves. An Appointed Actuary is required to conduct an investigation into the valuation of policy liabilities, confirm that it is done in accordance with the valuation framework, and certify the amount of policy liabilities derived”, Mr Low said. He cautioned appointed actuaries to be careful about conflict of interests with their statutory responsibility of protecting the interest of policy-holders as company managements often pressurise them to work for the interest of shareholders. Appointed actuaries are being entrusted with additional roles in areas such as financial reporting, marketing, risk management and investment, he said.