Actuaries in Law

Courses for local actuaries, which began this week under the auspices of the Ministry of Finance and the Association of Insurance Companies of Azerbaijan, look more relevant against the background of the amendments to the law "On insurance".

According to the document, the term "actuary" has received a residence permit in the legislation. The new version of the law has a clause governing the rights and obligations of the insurance actuaries. Local professionals of this sphere (more mathematicians than financiers) will give legal recommendations on the methods and sources of the formation of insurance reserves and will provide services to ensure the financial stability and solvency assessment of the company. Their functions also include the calculation of insurance rates and the development of methodology for economic assessment, classification and investigation of insurance risks in accordance with the insurance classification.

They will substantiate the economic feasibility of the terms of voluntary insurance, determine the insurer's debt limit in life insurance and consult the management on actuarial calculations and the intricacies of submission to the Ministry of Finance (Service for Insurance Supervision) of the actuarial reports.

Certified holders of the profession should have a college education. Resolution on the profession is valid for a period of 5 years and confirmation certificates are issued within 10 calendar days.

This profession develops and becomes more topical against the urgent development and growth of the insurance market. Insurers Association previously limited to local courses will now let actuaries often go for training abroad. - 17D-