Insurance companies carrying on life insurance and capital accumulation business are required to appoint an actuary licensed by the Insurance Regulatory Unit to examine their financial position every three years or at the request of the Insurance Regulatory Unit to estimate their outstanding obligations related to this line of business.
It is worth mentioning that Baker Tilly is an actuary licensed by the Insurance Regulatory Unit.
What are the legal and regulatory requirements that require companies to prepare the actuary’s report on examining the financial position of companies carrying on life insurance and capital accumulation business?
Article 161 of the Executive Regulations of Law No. 125 of 2019 regarding the regulation of insurance stipulates the following:
The companies carrying on life insurance and capital accumulation business shall examine their financial positions related to such line of business and estimate the value of their outstanding obligations for each of them, including all transactions that the company concludes inside and outside the State of Kuwait, separately, once every three years by an actuary.
What are the cases in which the company’s obligations are estimated with respect to life insurance and capital accumulation business?
Article 162 of the Executive Regulations of Law No. 125 of 2019 regarding the regulation of insurance stipulates the following:
The estimate mentioned in the preceding article shall be conducted in the following cases:
- If a company intends to examine its financial position to determine the rates of dividends, which will be distributed to shareholders, policyholders or contributors.
- If the IRU requests conducting the estimate at any time before elapsing three years from the previous estimate provided that one year after the last examination shoold have elapsed.
What is the frequency of the actuary’s report on examining the financial position of companies carrying on life insurance and capital accumulation business?
The report shall be prepared every three years or before that date upon the request of the IRU, provided that at least one year has elapsed from the date of the last examination.
What is the deadline for submitting an actuary’s report on examining the financial positions of a company carrying on life insurance and capital accumulation business?
Article 164 of the Executive Regulations of Law No. 125 of 2019 regarding the regulation of insurance stipulates the following:
The company shall send to the IRU a copy of actuary’s report with the result of examination and estimate within sixty (60) days from the end date of the period for which the examination is conducted.
What is the added value to business entities from engaging the services of preparing an actuary’s report on examining the financial position of companies carrying on life insurance and capital accumulation business?
- Ensure the accuracy and integrity of calculating the obligations related to life insurance and capital accumulation business.
- Ensure that the financial position of companies is not compromised and that no damage is incurred by their stakeholders.
- Ensure that the company is able to meet its obligations at any time.
- Ensure that the company adheres to the rules and criteria related to integrity and transparency.
What are the services provided by Baker Tilly Kuwait?
Prepare and issue the actuary’s report on examining the financial position of companies carrying on life insurance and capital accumulation business.
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