| Provision No. | Instructions of Establishing the Actuarial Function within the Re/Insurance Company
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Taking into consideration Article (16) of the Actuarial Work Rules for Insurance and/or Reinsurance Companies, the Company shall establish an Actuarial Function commensurate with the scale and complexity of its business, within six months of the issuance the Rules, taking into account all of the following:
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| 1 | The actuarial function shall constitute of at least three (3) Saudi Actuaries within one year of the issuance of the Rules .
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| 2 | The Company shall appoint internal Qualified Actuary within two years of the date of issuance of the Rules.
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| 3 | The Company must appoint an internal Qualified Actuary who is Saudi within seven years of the issuance of the Rules.
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| 4 | The Actuarial Function shall be headed by a sufficiently experienced natural person employed by the Company to fulfil the role of Head of the Actuarial Function after obtaining SAMA’s statement of nonobjection.
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| 5 | The head of the Actuarial Function shall comply with minimum standards prescribed by SAMA.
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| 6 | The Head of the Actuarial Function shall report directly to the Chief Executive Officer of the Company.
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| 7 | The company must update its code of governance to reflect the role and responsibilities of the Actuarial Function.
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| 8 | The Board of Directors and Senior Management of the Company must provide the Actuarial Function with sufficient resources commensurate with the scale and complexity of the Company’s business, including sufficient human resources as well as access to information technology and other appropriate systems, training and professional development.
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| 9 | The Company shall issue a training and development policy for professional actuarial certifications, to ensure that Saudi Actuarial Candidates obtain the fellowship of an Actuarial Association within a reasonable period, and submit the policy to SAMA within six months of the issuance of these Rules.
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| 10 | The Company shall provide SAMA with an annual report on the Actuarial Function that includes as a minimum the followings:
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| | a. | The training and development policy referred to in Provision (9) above indicating what has been applied within the giving period.
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| | b. | Number of Actuaries and their experiences according to the classification of these Rules.
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| | c. | Expansion plan of the Actuarial Function in regard to employment for the next 5 years taking in consideration the scale and complexity of actuarial work of the Company.
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| | d. | Number of actuarial examinations taken and percentage of passes.
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| | e. | Knowledge transfer activities conducted by the Appointed Actuary within the given period.
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