ANNOUNCEMENT:
The 2015 AGM and beach picnic will be held at Tushan beach on 18th September 2015.
UPDATE:
A good number of members of the actuarial community attended this unique event. Punctuality, fun, networking and updates of the affairs of the PSOA were the main highlights of the day. Here is to some reminiscing a few moments of the day and for those who were not able to attend:
The Securities and Exchange Commission of Pakistan (SECP) issued the Unit Linked Products and Fund Rules in April 2015. The new rules address the investment governance process of unit-linked funds, net asset valuation methodology and disclosure of investment risk to insurance policyholders. Additionally, certain features of unit linked life insurance such as premium indexation, minimum financial protection and minimum policy term have been addressed. The link to the SECP is here.
A few years back the Pakistan Society of Actuaries undertook a project of developing a mortality table for the Pakistani insured population. Introduction, background and results of this study can be found here.
The PSOA Council has approved the following Guidance Notes. These can be downloaded from here:
PSOA Guidance Note No. 5 - Guidance Note for Appointed Actuaries of Life Insurance Companies
PSOA Guidance Note No. 6 - General Actuarial Practice
PSOA Guidance Note No. 7 - Financial Analysis of Social Security Programs
Per PSoA’s Guidance Note entitled “Guidance Note on Selection of Discount Rate for Accounting of Post-Employment Benefits Scheme”, PSoA’s Discount Rate Committee's recommendations for the discount rate at various dates can be found here:
PSOA Discount Rate Circular at June 30 2016
PSOA Discount Rate Circular at March 31 2016
PSOA Discount Rate Circular at December 31 2015
PSOA Discount Rate Circular at September 30, 2015
PSOA Discount Rate Circular at June 30, 2015
PSOA Discount Rate Circular at March 31, 2015
PSOA Discount Rate Circular at December 31, 2014
PSOA Discount Rate Circular at September 30, 2014
While the global demand for health microinsurance remains high, practitioners in the field face a number of challenges. In addition to a general lack of available data, there are very few microinsurance educational tools available to actuaries and healthcare practitioners. An important part of actuarial education is pricing methodology guidance and instructional pricing materials.
The International Actuarial Association (IAA) was the beneficiary of a pro bono collaboration with the MicroAssist group at Milliman to develop a health microinsurance instructional pricing tool for the microinsurance industry. This model illustrates key actuarial principles common to health scheme pricing and describes a number of important items to consider when using available data and applying adjustments in health scheme pricing. The concepts and mathematical principles used are examples of functional concepts related to health microinsurance and health insurance pricing and provide a valuable framework for actuaries, health professionals and microinsurance practitioners as they develop and operate health microinsurance schemes. As part of a data research project, actuaries from the University of the Witwatersrand in South Africa also provided input assumptions for the model developed by the MicroAssist group.
The IAA’s Microinsurance Working Group (MIWG) facilitates our efforts in the development of microinsurance and actuarial involvement in this rapidly growing, and socially meaningful area. The MIWG worked closely with the Milliman team which developed this instructional pricing tool.
Nigel Bowman, Chair of the IAA Microinsurance Working Group, said: “We hope that this pricing tool will help to provide actuarial education and guidance to technical microinsurance practitioners, as well as actuaries who may not be experienced in microinsurance, when pricing health microinsurance products. There is a lack of actuarial skills and educational opportunities in almost all microinsurance markets and we expect this instructional tool will be another small step towards filling the gap alongside the existing Credit Life pricing tool. This is a very exciting development and I look forward to its positive impact in the microinsurance world.”
The health and credit life microinsurance pricing tools are accessible from the IAA website.
To learn more about the work of the IAA on this topic, please contact the Director of Technical Activities at the IAA Secretariat.
ANNOUNCEMENT:
Pakistan Society of Actuaries has planned an exciting conference for the 20th of October. The theme is 'Innovations in Insurance'. There will be a small session for the AGM on the same date to discuss and approve the 2014-15 accounts. The conference will be followed by lunch and table-tennis.
The conference brochure can be found here.
UPDATE:
Conference presentations can be found here:
Enabling Business Through Automation - Dr Mohamed Rafick Khan
Innovation Simplified! - Faisal Shahzad Abbasi
ANNOUNCEMENT:
The 2015 AGM and beach picnic will be held at Tushan beach on 18th September 2015.
UPDATE:
A good number of members of the actuarial community attended this unique event. Punctuality, fun, networking and updates of the affairs of the PSOA were the main highlights of the day. Here is to some reminiscing a few moments of the day and for those who were not able to attend:
ANNOUNCEMENT:
Pakistan Society of Actuaries has planned a seminar on Seminar on Enterprise Risk Management in collaboration with Hannover Re to be held on April 05, 2016. Speakers from Hannover Re and the local industry will be presenting the latest developments on the ERM arena. The seminar will be followed by lunch.
The seminar schedule can be found here.
In May 2017, IASB issued the new Insurance standard, IFRS 17 Insurance Contracts, with effective date of 01 January 2021. The new insurance standard will harmonise the method of measurement, presentation and disclosure thereby bringing consistency and comparability across the global insurance industry. Further, it will make the business model more visible to the users of the financial statements. IFRS 17 is bringing a change of the magnitude that implementation of Solvency II brought in Europe. In Pakistan, PSoA along with ICAP’s Accounting Standards Board has proactively initiated the deliberations and development of implementation strategy for the adoption and implementation of IFRS 17.
The Pakistan Society of Actuaries (PSoA) is organising a seminar on “IFRS 17 – Insurance Contracts” in collaboration with Southern Regional Committee (SRC) of ICAP on February 28, 2018 at the Movenpick Hotel. The timing of the seminar will be from 9:00 am – 5:00 pm (registration at 8:45 am).
The seminar will include a wide range of speakers including Mr. Nayyar Hussain, Director Insurance, Securities and Exchange Commission of Pakistan (SECP) (also a panellist), Mr. Abdul Moid Ahmed Khan, Senior Manager and Consulting Actuary, SIR Consultants, Mr. Usama Dangra, Manager, SIR Consultants, Mr. Omer Morshed, Chair IFRS 17 Working Group and CEO, Sidat Hyder Morshed Associates (also a panellist), Mr. Arslan Khalid, Partner, EY Ford Rhodes, Mr. Mohammed Ali Ahmed, Chief Strategy Officer & Executive Director, EFU Life Assurance Ltd., Ms. Hena Sadiq, Partner, Deloitte Yousuf Adil, Mr. Ali Qureshi, Head of Actuarial Services Department PSOA Secretary, Mr. Jabran Noor, Director, PKF.
A panel discussion will take place in which Mr. Farrukh Rehman, Chairman, Accounting Standards Board, ICAP act as the panellist in addition to the above three marked. Mr. Saeed Zafar, Director & Consulting Actuary, SIR Consultants will be the moderator.
The seminar brochure can be downloaded by clicking on the following link
The Central Bank of Bahrain (CBB) has made production of Financial Condition Reports mandatory for all insurance and takaful companies. In addition, the actuary of a takaful firm should certify wakala fees, participant’s fund underwriting loss, distribution of surplus and earmarking of assets. The new regulations which were first made mandatory for the 2014 enhances the role of actuaries in the financial evaluation of the company.
The Saudi Arabian Monetary Authority (SAMA) has taken a number of steps to regulate the insurance market. Some of the recent steps have been standardisation of the Financial Condition Report content, requirement towards pricing reports for motor and medical business, and guidelines on surplus distribution under cooperative model.
The Qatar Financial Centre Regulatory Authority (QFCRA) has introduced Own Risk Self-Assessment (ORSA) as mandatory part of reporting for insurance companies. ORSA is a detailed forward-looking examination of the adequacy of an insurer’s risk management policies, procedures and controls and the insurer’s current and future solvency position. ORSA requirements is in line with the global regulatory frameworks like Solvency II.
The Insurance Authority, UAE has introduced financial regulations for insurance and takaful companies. This includes regulations on reserving, investment limits and solvency etc. Companies are also required to fill new prudential forms as part of enhanced reporting requirements. The actual implementation of the regulations are staggered over a number of years but companies are encouraged by the regulator to implement procedures even before the requirements becomes mandatory.
Dubai has introduced a mandatory health insurance scheme for private employees. The law makes it compulsory for employers and sponsors to provide health insurance in three phases from 2014-2016, according to the number of employees. The cost of health insurance coverage must be borne by the employer / sponsor. The minimum basic health coverage has been fixed at AED 150,000 per year with an annual premium between AED 500-700.
The Capital Market Authority of Oman (CMA) has issued new regulations which require Omani insurers to be listed on the Muscat Securities Market and maintain capital of OMR 10 million.
The State Council in Oman also recently approved the draft Takaful Insurance Law. The law sets out the regulatory code for takaful operators, including oversight and reporting requirements, product standards and liquidity levels. The draft law also sets out that only dedicated takaful firms may operate, preventing existing conventional companies to setup takaful windows.
The EU’s Solvency II Directive will enter into force on 1 January 2016. This will update the approach taken to determine the capital required by insurers against their risk profile. It will also introduce a common European approach to prudential regulation based on economic principles for measurement of assets and liabilities.
SRO-GOP 15th July is now available for download Click here to download
PSOA Membership Form now available for download Click here to download
Annual Membership Subscription Form for the year July 2015 - June 2016 can be found here.
In order to be recognized as a member of PSOA, interested candidates need to fulfil eligibility criteria according to the applied-for membership level:
