Another core competence of Kenston Services Ltd is the provision of actuarial functions, e.g. for regulated pension funds.
Since 13 January 2019, pension funds have also been obliged to appoint an actuarial function, as was generally established for life insurance companies with the introduction of Solvency II.
The tasks of the actuarial function include coordinating the calculation of technical provisions, evaluating the quality of the underlying data and ensuring the appropriateness of the methods and assumptions used. In addition, the actuarial function reports to the Board of Management on the reliability and appropriateness of the calculation and contributes to the effective implementation of the risk management system.
As with the responsible actuary, the prerequisites for the actuarial function are both professional suitability (extensive knowledge of actuarial and financial mathematics as well as relevant experience with relevant professional and other standards required) and reliability.
In terms of content, there is a proximity or overlap with the responsible actuary, who, however, will not always have the detailed knowledge, e.g. of the quality of the underlying data. In addition to the requirements mentioned above, knowledge of the specific IT landscape of the pension fund and all relevant peculiarities is also required. It is therefore important that in the actuarial function a person with the relevant experience has an overview of the relevant processes and risks and can thus provide real added value to risk management and the Board of Management.