The Appointed Actuary appointment requirements:

The Company shall, after obtaining SAMA`s statement of non-objection, appoint a Qualified Actuary to act as its Appointed Actuary who meets the requirements of these Rules and SAMA’s Instructions and has adequate experience in the types of business written by the Company, being at least a Fellow of an Actuarial Association with relevant post-qualification experience.

A Company must take steps through its contract with its Appointed Actuary to ensure that the Company, its Board of Directors and Senior Management can consult the Appointed Actuary as needed on matters relating to his or her responsibilities in accordance with these Rules throughout the year.

The Appointed Actuary shall not hold any position which may conflict with their role as Appointed Actuary, including a member on the Board of Directors, Senior Management or Chief Executive Officer in the Company or related Company or any other Insurance and/or Reinsurance Company in the Kingdom.

Members of the Board of Directors and the Chief Executive Officer of the Company shall not act as the Appointed Actuary to the Company nor as a member of its Actuarial Function .

Any non-Saudi Actuary works with a Company or Actuarial Service Provider in the Kingdom shall obtain SAMA’s statement of non-objection.

Minimum Requirements of Actuarial Function within Companies:

The Company shall establish an Actuarial Function commensurate with the scale and complexity of its business, consisting of Actuaries and other individuals as prescribed in the Appendix (1) of Establishing the Actuarial Function within the Re/Insurance Company, to ensure compliance with SAMA's requirements in respect of Insurance Contract Assets and Liabilities, Technical Prices, monitoring the adequacy of premiums, experience studies, capital adequacy, Reinsurance and quantitative aspects of risk management, and to support actuarial works of the Company.

The Company shall facilitate the Actuarial Function in fulfilling a significant role in a Company’s systems of financial management, risk management and internal control and take steps to ensure that the Actuarial Function is properly authorized and staffed commensurate with the sound operation of the Company and the safeguarding of the interests of its policyholders and Beneficiaries.

For the purpose of implementing these Rules, the Appointed Actuary and Head of the Actuarial Function shall liaise with the Board of Directors, Senior Management and the Company’s internal and external auditors and direct the activities of the Actuarial Function, including providing oversight of the provision of training and professional development for the Actuarial Function.

Procedure to Appoint and termination of an Appointed Actuary and/or Head of Actuarial Function:

Prior to seeking SAMA’s statement of non-objection to the appointment of the Appointed Actuary and Head of Actuarial Function, the Company’s Senior Management must satisfy itself that the proposed Appointed Actuary and Head of Actuarial Function are experienced in the lines of Insurance and or Reinsurance transacted by the Company, and are fit and proper and meet the requirements of SAMA’s Instructions, making a recommendation to the Board of Directors accordingly and providing SAMA with evidence that the requirements of SAMA’s Instructions are met.

The contract between a Company and its Appointed Actuary must ensure that the Company has sufficient notice of any intention of the Appointed Actuary to terminate his or her contractual relationship with the Company through the use of an appropriate notice period in order to enable the Company to fulfil its obligations under these Rules.

A Company must inform SAMA of any potential future change in its Appointed Actuary of which it becomes aware at least (60) calendar days ahead of such change taking effect.

A Company shall certify to SAMA each year by a date to be set by SAMA’s Instructions that the Company have considered whether the Appointed Actuary remains a fit and proper person and has no conflicts of interest in order to hold the role of Appointed Actuary for the forthcoming calendar year.

SAMA may require a Company to appoint an appropriately experienced Qualified Actuary who is not the Company’s Appointed Actuary or appoint an appropriately experienced Qualified Actuary directly to produce a report on specified matters on a case by case basis at the expense of the Company to which it relates.

Termination of the Appointed Actuary:

If SAMA finds that an Appointed Actuary is unfit or incapable of undertaking his or her responsibilities, SAMA may notify the Company to replace the Appointed Actuary with another competent Qualified Actuary, who can better fulfil the role of the Appointed Actuary. The role of the Appointed Actuary will end if SAMA notifies the Company to replace him or her.

If a Company becomes aware that its Appointed Actuary wishes to resign from his or her position, the Company must commence the procedures to appoint a replacement immediately, and such procedures must reasonably take into account the time required by SAMA to issue or not as the case may be a statement of non-objection for the replacement Appointed Actuary, such that at no time is the Company without an Appointed Actuary.

In case the Company fails to appoint a replacement Qualified Actuary to act as its Appointed Actuary, SAMA shall appoint an Appointed Actuary at the Company's expense if considered appropriate on a case by case basis.

A Company must make appropriate provisions in its contract with its Appointed Actuary such that on prior to ceasing to hold the role of the Appointed Actuary, the former Appointed Actuary must provide all information and explanations as the successor Appointed Actuary, Senior Management and Board of Directors of the Company may reasonably require, at the Company’s expense, within no more than (30) calendar days of appointment of the successor Appointed Actuary.

Following appointment of a replacement Appointed Actuary he or she shall obtain all required information and explanations from the Company and its previous Appointed Actuary, and the Company shall take all reasonable steps to facilitate the discharge of this responsibility within no more than (30) calendar days of appointment of the replacement Appointed Actuary.

On termination or cessation of office as Appointed Actuary, the Appointed Actuary shall notify the Board of Directors and SAMA within (10) calendar days of whether there are any disagreements or matters associated with their termination or ceasing to hold office that, in their professional opinion, SAMA and the board should be aware of.

The Company may inform the Actuarial Association of its Appointed Actuary of any observations on the proficiency of the Appointed Actuary.