Section 47: Actuarial investigation

47. Actuarial investigation (1) An insurer shall cause an investigation into its financial condition to be made by the insurer’s actuary at such time and at such regular intervals as may be prescribed. (2) An investigation to which subsection (1) relates shall include— (a) in the case of a long term insurer— (i) a valuation of the liabilities of the insurer attributable to the insurer’s long term insurance business; (ii) the establishment of any deficit on the insurance fund and the designated fund referred to under Part III; (iii) a determination of any excess over those liabilities of the assets representing the fund or funds maintained by the insurer in respect of that business and, where any rights of any long term insurance policy holders to participate in profits relate to particular parts of such a fund, a determination of any excess of assets over liabilities in respect of each of those parts; (iv) the establishment of any excess on the insurance funds which may, subject to any restriction, be transferred to shareholders’ funds and be available for distribution; (b) in the case of a general insurer, a valuation of its underwriting liabilities, and in respect of liabilities incurred but not reported claims and other technical liabilities, including any deficiency in reserving for such liabilities in accordance with the solvency rules. (3) Where an investigation into an insurer’s financial position is made, the insurer shall— (a) furnish to the Commission a copy of the report of the insurer’s actuary; and (b) prepare and furnish to the Commission a statement of the insurer’s business in the form to be determined by the Commission, within such time limit as may be prescribed. (4) The report referred to in subsection (3) shall include— (a) a statement of the valuation basis used; (b) a statement showing the extent to which account has been taken of the nature and term of the assets available to meet the liabilities valued; I15 – 35 [Issue 1] Insurance Act (c) the actuary’s opinion on the value of the assets mentioned in paragraph (b); (d) a list of the assets so mentioned and their values, giving any equities held separately; (e) a consolidated revenue account for the period covered by the report; (f) a statement on whether the pricing of the insurance policies is prudentially sound; and (g) such other matters as may be required under solvency rules. (5) The actuary who makes the valuation shall certify whether in his opinion the value placed upon the aggregate liabilities relating to a fund in respect of policies by the valuation is not less than the value which would have been placed upon those aggregate liabilities if it had been calculated on the minimum basis prescribed.