20. October 2020

Responsible Actuary

The provision of responsible actuaries for regulated pension funds is a core competence of Kenston Services Ltd.

Life insurance companies are obliged to appoint a responsible actuary. This also applies to pension and death funds, insofar as they are subject to the supervision of the Federal Financial Supervisory Authority (BaFin).

First and foremost, the actuary responsible must ensure that the calculations of premiums and actuarial reserves comply with the corresponding provisions of the German Commercial Code and the enacted legal ordinances. In particular, it must check the financial position of the company to ensure that the obligations arising from the insurance contracts can be fulfilled at all times.

In addition, the responsible actuary must make proposals for appropriate profit 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 other assumptions of his confirmation.

In the case of regulated pension or death funds, the calculations must be prepared in accordance with the approved business plans. In this respect, the explanatory report is limited to confirmation that the actuarial provision has been calculated in accordance with the approved technical business plan. However, the importance of the responsible actuary increases if he at least accompanies or completely takes over the communication during the preparation or amendment of the technical business plans. And especially in the case of insurance companies that are managed with honorary board members or in 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 manifold problems and solutions of a life insurer. The spectrum ranges from normal underwriting questions to explanations of the cause-related allocation of surpluses to support risk management or the conception of simplified asset-liability management approaches