The Head of Actuarial is a member of the Executive Directors Committee and has overall day to day accountability for reserving and capital modelling. The purpose of AND-E’s Actuarial function is to maximise the probability of achieving the Group’s objectives. This is achieved by ensuring that sufficient money is set aside to pay for claims on policies that AND-E has written and by measuring the current and emerging risks to which the Group is exposed. This is so that strategies can be developed for dealing with these exposures.
The Actuarial department’s key responsibilities include:
Assessing the level of capital required to cover the potential costs of adverse risk outcomes within the tolerance levels specified in the risk appetite. We also calculate capital requirements under the prevailing regulatory solvency regime.
Determining how much money needs to be set aside to pay for claims on policies that AND-E has written. We base this on past claim experience and emerging trends. We also estimate the additional margin required to satisfy AND-E’s appetite for the risk of adverse claims development.