Description: Risk adjustment is needed under IFRS 17 to reflect the compensation that a company requires for bearing the uncertainty about the amount and timing of the cash flows that arises from non-financial risk. Companies are also required to disclose the method and confidence level used for the calculation of the RA. However, IFRS 17 doesn’t specify a method and a confidence level, nor does it provide a list of specific risks that are considered to be non-financial risk. Companies need to define them based on their own preferences or existing practices. This article will introduce available approaches and discuss the confidence level approach with potential consideration stemming from industry preferences and illustrative examples.

Description: Actuarial activity in Azerbaijan commenced in 2008 with the enactment of the insurance law. The Actuarial Association of Azerbaijan was created in that year. The insurance law prescribes an official roster of actuaries who qualify after passing an exam. There is also the position of “appointed actuary” who reports directly to the board of directors of the insurance company. However, due to the relatively fast development of the insurance market, there is an urgent need of qualified actuaries. Actuaries Without Borders and the International Actuarial Association have thus helped in the capacity building process. This article describes the workshop that was held in Baku, in December 2019.

Description: There is widespread acknowledgement in the insurance industry that cyber risk remains an untamed and seemingly ever-growing beast. It is also unique in the family of risk exposures faced by insurers in that it is both an emerging risk and an emerged risk. What are companies doing to keep on top of this risk? What are actuaries doing to contribute to cyber risk management, and what can we learn from other industries and disciplines?

Description: Today's actuarial teams dedicate substantial time and resources to maintain strong frameworks for risk management and control. Current practices typically endure this as a sunken cost, yielding minimal value beyond SOX/MAR/COSO compliance and basic error prevention. With a small up-front time investment, and a willingness to approach these activities with an open mind, the functionality of existing compliance activities can be completely transformed. Compliance activities, once a sunken time cost, can be elevated to deliver more insightful analysis to stakeholders.

Description: Read the July 2020 issue of Risk Management published by the Joint Risk Management Section. Newsletters provide practical information for the working actuary, articles on trends that impact sections and news about section activities.