Leveraging Actuarial Skills

Case Study 4, Developing Capabilities

Thursday, November 30, 2023

Agenda

1| Everyone turn on your camera in breakout rooms, participate and

have fun, share your screen, and take notes in mural.

2| Introduction to the case study

3| Case study tasks

2
The case study
Insurance Regulator of Naboo (OIRN)
1. Finance Minister replaced Board with six new members lacking
insurance experience
2. Significant risk of natural disasters and use of international
reinsurance
3. Required capital uses a risk-based formula. Regulator may adjust
capital if the regulator has particular concerns
4. Life insurers must use A67/70 UK mortality table and have an actuary
sign off on liabilities every 3 years
5. Motor insurance minimum premiums set by regulator’s tariff book,
which is updated every 3 years. No actuary sign off is required on
liabilities
6. OIRN has limited technical and human resources
3
The case study
Three insurers
1. Tantu – GI and life insurance products. New and innovative

2. Natu – GI insurer. 85% owned by government. Old fashioned. Recent

losses. Natu’s reinsurer in Singapore has recently been placed in
receivorship.

3. Antu – Life insurer. 51% owned by foreign insurer. No reinsurance.

Wants the regulator to lower its required capital, because the foreign
insurer spreads its catastrophe risk over several different countries

Many insurers in Naboo also provide insurance in neighbouring counties.

There is very little information sharing between regulators.
4
 Breakout rooms assignments
Group/Room 1
Given the fairly new
regulatory system and the
various market issues, how
can your office best apply
its limited resources to the
tasks of supervision and
regulation? What would
be your top 3 issues to
focus on over the next 12
months?
Group/Room 2
Explain how the solvency
risks of the three insurers
(Tantu Insurance, Natu
Insurance and Antu
Insurance) differ, and how
this might impact on your
supervision of these
insurers?
Group/Room 3 Group/Room 4,
Or all together
The Minister asks your How would it assist the
opinion regarding Antu Naboo Insurance market
Insurance’s request for a and its regulation by
reduction in their sharing information with
minimum capital neighbouring countries?
requirement. The Minister List 3 key items of
wants a definite yes or no information that would be
answer. What would you worth sharing between
recommend and why? the neighbouring
countries?
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6
Evaluation

7
 Thank you.

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