The Appointed Actuary’s Role in Performing Experience Studies
Article 61
The Appointed Actuary shall carry out such experience studies as are prescribed by SAMA’s Instructions addressing, as a minimum, expense analysis and, for Companies transacting Protection and Savings Insurance, persistency, mortality experience and, where relevant, morbidity experience, reporting to SAMA in accordance with SAMA’s Instructions.
Article 62
The Appointed Actuary should report on expenses, drawing on experience to date and leading professional practice such as activitybased cost analysis, sufficient to support the assumptions and related Insurance Contract Assets and Liabilities in accordance with financial reporting standards applicable in the Kingdom which may, for example, include:
1. Premium deficiency analysis for all general Insurance products and short term Protection and Savings insurance.
2. Analysis of unallocated loss adjustment expenses.
3. Renewal expense assumptions.
4. Insurance acquisition cash flows.
5. Any provisions for expense overruns for Protection and Savings business. Such provisions may only be adopted for the first three years’ valuations after the Company commences writing Protection and Savings business except with prior statement of nonobjection from SAMA.
Article 63
The Appointed Actuary should analyze and report on the persistency rates of all long-term Protection and Savings products, analyzing the persistency and lapse experience of each separate distinct product type as compared with the assumptions previously made, in a form and at a frequency to be determined by way of SAMA’s Instructions.
Article 64
The Appointed Actuary should analyze and report on the mortality experience for all Protection and Savings products, analyzing the mortality experience of each separate distinct product type as compared with the assumptions previously made, in a form and at a frequency to be determined by way of SAMA’s Instructions.
Article 65
The Appointed Actuary should analyse and report on the morbidity experience for all Protection and Savings products where benefits, including waivers of premium, are determined based on morbidity experience, analysing the morbidity experience of each separate distinct product type as compared with the assumptions previously made, in a form and at a frequency to be determined by way of SAMA’s Instructions.