The ABI has launched a consultation on proposed guidance for life insurers, aiming to help identify when they should consider obtaining external reviews of internal actuarial advice.
The draft guidance states this should happen when such advice influences decisions that can result in significant changes in the running of life insurance policies and therefore policyholder benefits or affects the decision to enter into and/ or the price paid in large transactions.
It also says this should happen if the advice is critical to the implementation of material new regulatory or equivalent requirements or if the advice is provided in an area where the governing body is aware industry practice may have developed significantly since the last such advice was obtained.
The ABI's guidance will be issued in July 2009, subject to responses, which are due by 31 March 2009. Requirements will then apply from 30 September 2009.
"The ABI guidance will codify existing best practice and will help life insurers take decisions on the basis of robust actuarial advice," says Peter Vipond, the ABI's director of financial regulation and taxation.
"It is vital that governing bodies are confident that they can rely on the actuarial advice they receive."IFAonline
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