IAA approves the future development of three model International Standards of Actuarial Practice
The International Actuarial Association (IAA) is pleased to announce that its Council has approved Statements of Intent (SOIs) to develop three new International Standards of Actuarial Practice (ISAPs) to provide principles-based guidance to actuaries providing actuarial services relating to:
- IFRS X Insurance Contracts (ISAP [4])
- Insurer Enterprise Risk Models (ISAP [5]) and
- ERM Programs and IAIS Insurance Core Principles (ISAP [6])
An ISAP is a model standard of actuarial practice for member associations and/or their actuarial standard-setting bodies to consider. The intention of a model standard is to promote a greater consistency of approach to actuarial practice in a given situation. This will increase the confidence of clients and the public in the actuarial work product, while not constraining the exercise of actuarial judgment unnecessarily.
The proposed model ISAPs are expected to:
- Provide guidance for actuaries providing actuarial services in the relevant practice areas to facilitate convergence in actuarial practice within and across jurisdictions;
- Increase public confidence in actuarial services;
- Increase reporting entities’ and regulators’ confidence in actuarial services;
- Promote the development of the actuarial profession, as greater confidence amongst stakeholders leads them to expand the use of actuaries; and
- Demonstrate the IAA’s commitment to support the work of its institutional members. ISAP [4] will further the cooperation between the International Accounting Standards Board (IASB) and the IAA in accordance with the mutually agreed Memorandum of Understanding. ISAPs [5] and [6] will support the work of the International Association of Insurance Supervisors (IAIS) towards achieving global financial stability through promoting effective risk management.
The approved SOIs are available on the IAA website (www.actuaries.org) under publications. The proposed ISAPs are being developed by task forces appointed by the Actuarial Standards Committee of the IAA (as described in the IAA’s due process).
This activity contributes to the IAA’s strategic objective of promoting the development and issuance of actuarial standards in the jurisdictions of all member associations, the global convergence of actuarial standards, and the development of model ISAPs. To learn more about the proposed ISAPs, or to submit questions, please contact the Director of Technical Activities at the IAA Secretariat.