Reference is made to the Actuarial Reserve Report “Report” and the associated Reserve Reporting Template “Template” as at 31/12/2021, due for submission as per the Schedule of Actuarial Submissions issued by SAMA for each calendar year. For the purpose of the Quarterly Reserve reporting, the Report shall be replaced by an Actuarial Reserve Certificate “Certificate” for the year 2022.

Accordingly, the Appointed Actuary shall prepare the above Report or Certificate and Template in adherence to the following:

1. The instructions contained in Circulars (173) “Circular” dated 16/01/2019, with the following considerations:
   1. The first paragraph of the Circular, with reference to Article (28) of ‘Actuarial Work Regulation’ shall be replaced with Article (50) of the ‘Actuarial Work Rules for Insurance’ dated 01/03/2020.
   2. With regards to the Unearned Premium Reserve, in paragraph (3g) of the Circular, the phrase “For Visitor-visa Medical Expense insurance policies with policy term in excess of one year . . .” shall be read as “For Visitor-visa Medical Expense insurance policies, Medical Malpractice insurance policies, and Inherent Defects insurance policies with policy term in excess of one year . . .”.
   3. With regards to the Expense Analysis mentioned in paragraph (4b) and (4c), and investigations regarding mortality, disability and expenses mentioned in sub-paragraph (g)(v) and (g)(vi) of paragraph (8) “Protection and Savings (P&S) Insurance” in the Circular, these requirements shall be deemed to have been met through the submission of the last annual Experience Studies Report. In case of any differences between the assumptions recommended in the above Experience Study Report and those used in the Actuarial Reserve Report, a summary of the changes in assumptions and their justification shall be attached as an appendix to the Actuarial Reserve Report.
   4. With regards to the Salvage and Subrogation (S&S) reserves, comply with paragraph (5e) of the Circular by projecting salvage and subrogation separately, and projecting subrogation separately for policyholders and insurance companies.
2. Continue to report separately on the claims related to COVID19.
3. For Motor and Medical lines of business, estimate the ultimate frequency, ultimate severity and ultimate burning cost of claims, both gross and net of reinsurance.
4. Report on the claims provisions made, separately in Incurred but not reported (IBNR) and Premium Deficiency Reserve (PDR), for regulatory and environmental changes, covering at least the following:

Impact of Article (11) of Implementing Regulation the Cooperative Health Insurance Law.

Impact of COVID 19 on Health insurance claims provision.

Submission:

The Report or Certificate, along with a duly filled Template (attached) shall be submitted to SAMA as per the submission deadlines set by SAMA.