IAA approves the development of a model International Standard of Actuarial Practice relating to IAIS Global Insurance Capital Standards
The International Actuarial Association (IAA) is pleased to announce that its Council has approved a Statement of Intent (SOI) to develop an International Standard of Actuarial Practice (ISAP) on “Current estimates” and other matters in relation to the IAIS capital standards (ISAP 7).
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 ISAP is expected to:
- Facilitate convergence in actuarial practice in relation to the IAIS Global Insurance Capital Standards within and across jurisdictions;
- Increase public confidence in actuaries’ 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 the International Association of Insurance Supervisors (IAIS) towards achieving global financial stability through effective and globally consistent supervision of the insurance industry (as envisaged by the Memorandum of Understanding between the IAA and the IAIS). In particular, ISAP 7 is developed in response to a request made by the IAIS.
The approved SOI is available on the IAA website (www.actuaries.org) under publications. In compliance with the IAA’s due process, the proposed ISAP is being developed by a task force 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 ISAP, or to submit questions, please contact the Director of Technical Activities at the IAA Secretariat.