Responsible Actuary

Kenston Services GmbH provides responsible actuaries for regulated pension funds.

Life insurance companies are required to appoint a responsible actuary. This also applies to pension and burial benefit funds insofar as they are subject to supervision by the German Federal Financial Supervisory Authority (BaFin).

First and foremost, the Responsible Actuary must ensure that the calculations of premiums and actuarial reserves comply with the relevant regulations of the German Commercial Code and the legal ordinances issued. In doing so, he or she must review the financial position of the company, in particular, to ensure that the permanent ability to meet the obligations arising from the insurance contracts is guaranteed at all times.

In addition, the Responsible Actuary must make proposals for an appropriate surplus participation and explain the facts and assumptions from which the appropriateness of his respective proposal results. In addition, there is the experience report to the Board of Management, in which the Responsible Actuary reports on the calculation approaches and further assumptions of his confirmation.

In the case of regulated pension or burial benefit funds, the calculations must be made in accordance with the approved business plans. In this respect, the explanatory report is limited to confirming that the actuarial reserve has been calculated in accordance with the approved Technical Business Plan. However, the importance of the responsible actuary increases here if he at least accompanies or completely takes over the communication in the preparation or amendment of the technical business plans. And especially in the case of insurance companies that are managed by honorary board members or as a sideline to their main employment with a sponsoring company, it is important that the companies have a close contact person with a broad overview of the many different problems and solutions of a life insurer. The spectrum ranges from normal actuarial questions to explanations on the causation-based allocation of surpluses to support in risk management or in the design of simplified asset-liability management approaches.