The Central Bank has published a Feedback Statement on Consultation Paper 122 regarding changes to the Domestic Actuarial Regime (DAR) and related governance requirements under Solvency II and, more specifically, to the governance of with-profits funds and the format of the actuarial opinion on technical provisions.
Responses to the consultation, which closed in September, were submitted by Insurance Ireland and the Society of Actuaries in Ireland.Further details on the changes proposed in the consultation paper can be found in the Arthur Cox June & July 2018 Insurance Regulatory Group Update.
In response to queries raised by both respondents, the Central Bank confirmed that the new with-profits requirements apply to all Solvency II (re)insurance undertakings supervised by the Central Bank that write with-profits business.Certain exceptions exist and are set out in Section 4, but will not be dependent on the location of the with-profits fund member.The Central Bank also clarified that conventional and unitised with-profits business are within scope while excess interest products and inwards reinsurance business are not.
The requirement to produce a with-profits operating principles (WPOP) document will apply to all undertakings that fall within the scope of the DAR irrespective of existing requirements in other jurisdictions. Additionally, the Head of Actuarial Function will be required to report to the board on compliance with the principles in the WPOP at least once a year.
The amended DAR can be found at Annex I of the Feedback Statement on Consultation Paper 122.
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.