Compendium on the Actuarial Function under Solvency II (Update 2024)
Abstract
This abstract summarises the DAV professional standard of practice “Kompendium zur Versicherungsmathematischen Funktion unter Solvabilität II (Update 2024)” which underwent the DAV Due Process for the Adoption of Professional Standards of Practice and was approved by the DAV Executive Board on 02.10.2024.
Compendium on the Actuarial Function under Solvency II (Update 2024)
The actuarial function (VmF) is one of the four governance functions defined under Solvency II. The Working Group Tasks of the Actuarial Function of the Committee Enterprise Risk Management of the German Actuarial Association (DAV) e. V. has summarized the current state of legal development and implementation in the individual companies from the perspective of DAV actuaries. The personnel composition of the working group reflects this, in that a cross-section of companies, insurance lines, consultants and supervision were represented.
The working group has prepared this compendium in the form of a note that is intended to be an aid to actuaries performing the actuarial function in dealing with the fulfillment of their reporting obligations in accordance with the requirements of the Insurance Supervision Act and Solvency II.
The aim of this note is not only to provide pure information, including on regulatory aspects and organizational design options, but also to promote comprehensible communication of the actuarial function to the various addressees in the company (management board, supervisory board, etc.).
The present version is an editorially revised version of the original compendium from October 2019, which takes into account the regulatory developments since the introduction of Solvency II.
The German Association of Actuaries (Deutsche Aktuarvereinigung or DAV) is the professional body representing actuaries and Appointed Actuaries in Germany. It creates the underlying conditions enabling its members to practice their profession properly and in a technically sound manner as well as engaging in constant dialogue with all relevant national and international institutions.
Professional standards of practice are DAV publications that – together with the rules of professional conduct – set out the fundamental principles for the correct practice of actuarial activities. Professional standards of practice are characterised by their
• treatment of specialist actuarial issues,
• fundamental significance and practical relevance for actuaries,
• professional legitimisation through an implementation process that allows all actuaries to be involved in such implementation,
• correct application, with members being professionally safeguarded by a disciplinary process.
The professional standard of practice “Kompendium zur Versicherungsmathematischen Funktion unter Solvabilität II (Update 2019)” (Compendium on the Actuarial Function under Solvency II (Update 2019)) is an advisory note. Advisory notes are professional standards of practice
• that are to be taken into account in actuarial considerations, the application of which can be freely decided upon in individual cases, however, within the framework of the code of conduct, and
• which only consist of basic knowledge
• on specific individual questions.
