Article Twenty
| No: 596/1 |
First: The Company shall appoint an Actuary that holds the designation of a Fellow, or seek the services of an actuary or an actuarial firm after obtaining a written permission from SAMA. The Company’s Actuary shall undertake the following duties:
| 1. | Obtain all required information and particulars from the previous Actuary. | |
| 2. | Examine the Company’s financial position. | |
| 3. | Evaluate the Company’s ability to meet its future obligations. | |
| 4. | Determine adequate risk retention level. | |
| 5. | Price the Company’s insurance product. | |
| 6. | Determine and approve the Company’s technical provisions. | |
| 7. | Provide advice and recommendations related to the Company’s investment policy. | |
| 8. | Any other actuarial recommendations. | |
Second: The Actuary shall be professionally liable for his/her advice and technical services provided to the Company, and shall upon the Company’s request, furnish the Company’s management with the following particulars and documents:
| 1. | Sound actuarial information and statements about the company’s present and future financial position. | |
| 2. | Annual report, within sixty days from the expiry date of the company’s fiscal year reflecting the adequacy of the Company’s technical provisions. | |
| 3. | Annual report, within sixty days from the expiry date of the Company’s fiscal year reflecting the pricing adequacy of the insurance products. | |
| 4. | Company’s investment returns analysis. | |
| 5. | Insurance portfolio development analysis. | |
| 6. | Cost Analysis | |
| 7. | Report reflecting the adequacy of matching assets with liabilities. | |
| 8. | Positive and adverse underwriting policy development status. | |
The Company shall ensure compliance with all required actuarial duties and reports. Otherwise, SAMA shall appoint an actuary at the company’s expense to undertake these actuarial duties.
Third: An external auditor shall review actuarial reports that present immediate or future risks facing the Company, and SAMA shall be provided with copies of these reports in a timely manner.
The Company’s Actuary shall, in the presence of immediate or future risks facing the Company, submit a report on an urgent basis directly to the company’s Board of Directors. The Board of Directors shall examine the report and recommend corrective actions, and forward all related information to SAMA within fifteen days from receiving the report.