Key function tasked with coordinating the calculation of technical provisions, assessing their reliability, and issuing a written opinion on underwriting policy and on the adequacy of reinsurance.
The actuarial function is not the actuarial department, and that confusion is the most common in pillar two. The department calculates; the function coordinates, challenges and opines. Its mandate carries three written opinions that are not optional and that go to the administrative body. On technical provisions first: it guarantees the appropriateness of methods, assesses data sufficiency, explains differences between successive estimates and compares best estimates against experience. On underwriting policy next: it states whether premiums are sufficient to cover expected claims and expenses, which puts it in structural tension with commercial objectives. On reinsurance last: it assesses the adequacy of the program to the risk profile and the credit quality of counterparties. Its annual report is a document the supervisor reads, and a report carrying no reservation across three consecutive years is itself a signal, because no underwriting policy is flawless three years running.
Article 48 of Directive 2009/138/EC. In French practice, the annual actuarial report to the board commonly runs sixty to a hundred twenty pages, of which the section on premium sufficiency is the one the ACPR reads most closely. An actuarial function that in 2025 flagged premium insufficiency on a liability line under judicial inflation, and whose opinion went unanswered, leaves a written trace the supervisor later acts on.
actuarial function, rapport de la fonction actuarielle, avis sur la politique de souscription, opinion actuarielle