Life Insurance

01. Asset Liability Management

We provide support in strengthening ALM process:

  1. Designing ALM policy in compliance with IRDA/Actl/Cir/ALM/005/2012
  2. Analysing current ALM position and projecting future ALM position
  3. Measuring and monitoring various risks
  4. Suggesting measures to improve ALM mismatch

Our expertise: More than 5 years experience in ALM process and Solvency II principles based risk reporting, including quantification of various risks.

Quick
Service

Report within 24 hours

Highly
professional

Detailed report and resolve all audit queries

Cost
effective

Reports within very reasonable fees

02. Peer Review

Peer review is undertaken as per APS4 issued by Institute of Actuaries of India to independently review the valuation process:

  1. Review of appropriateness of data collection and validation process
  2. Review of valuation methodology and valuation assumptions
  3. Check the reasonableness of results and conclusions

Our expertise:More than a decade relevant experience, fulfills Life CoP requirements and acted as Life-Peer Reviewer.

03. Actuarial Audits

Audit always gives comfort and confidence in the process. We have expertise to independently review the following actuarial processes:

  1. Data checks and controls
  2. Experience investigations & Assumption setting process
  3. Valuation methodology (including un-modelled business and reserves)
  4. Checking the compliance with IRDAI regulations
  5. Solvency Ratio, ARA Report Verification, Shareholder Reporting etc.
  6. Actuarial software model review

Our expertise: We have advantage of work experience in core insurance companies which can help in more comprehensive and meaningful audit. We have done similar projects.

04. Products and their Pricing

We provide support in following areas:

  1. Pricing of a new product as per client need.
  2. Documentation for filing and internal approval
  3. Review of pricing models

Our expertise : Actual regulatory working experience of F&U at IRDAI level, review of F&U at company level, review of cash flow matching of products as per F&U, IRDAI regulations compliance undertaken in Life Insurance Company.

05. Documentation

Documents are valuable sources of reference, for sharing knowledge with both internal and external stakeholders, such as management, new staff, colleagues in different departments, regulators, rating agencies and independent validators. These provide evidence of strong processes and hence reduce the chances of errors.
Our expertise : We can help to strengthen your processes by appropriate and detailed process write ups. These can be but not limited to ALM policy, PAR business management, reserving manual, pricing process etc.

06. Reinsurance

We can provide support in the following areas:

  1. Checking of Reinsurance Premium Calculation by the reinsurance system.
  2. Claim recoveries from the reinsurer.
  3. Reinsurance premium charge back in case of lapse, surrender, death etc.
  4. Checking the sum ceded calculation.

Our expertise: Working experience of reinsurance treaties management, implementation of Reinsurance systems like RENOVA, filing of LR forms to IRDAI, credit of reinsurance arrangement in Solvency Calculations.

07. Our Gratuity Valuation Score

1800+ satisfied customers

4.3

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A+

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    08 FAQs

    Our Company started operations two years back. Do we need to keep gratuity provision in our Financials?

    The Gratuity Act 1972, describes that the gratuity is payable to an employee after completing 5 years of vesting period in case of resignation, termination or retirement. However, the provision shall be done as per the accounting standard even if the Company has not completed 5 years of operations. As per Para 72 of Ind AS 19/ Para 70 of AS 15, Gratuity Provision shall be made even for service of less than 5 years.

    What are the criteria for actuarial valuation of gratuity?

    Payment of Gratuity Act applies to your company if you have more than 10 employees. All companies having 10+Employees need to make Provision for Gratuity as per Actuarial Valuation method Projected Unit credit method (PUCM) to comply with AS15/ Ind AS19.

    Is actuarial valuation required to value Short-term benefits?

    No, the actuarial valuation is not required for short-term benefits. In case, the benefit paid after 12 months, the actuarial valuation is needed as per AS 15 R / IND AS 19 accounting standard.

    Is actuarial valuation required for Small and medium sized Companies (SMC)?

    For SMC, the actuarial valuation is required but detailed disclosures are exempted.

    What is the method to choose discount rate for actuarial valuation?

    Para 78 of AS 15 states that the rate used to discount post-employment benefit obligations (both funded and unfunded) should be determined by reference to market yields at the balance sheet date on government bonds. Similarly, IND AS 19 also prescribe to refer government bond yield to set discount rate. In order to set the discount rate, its critical to keep currency and term of the bonds to be consistent with liability duration.

    Is it mandatory to keep fund against actuarial liability calculated for gratuity benefits?

    In India, currently there are no regulations to keep fund to back the gratuity provision calculated by an Actuary. However, it is always encouraged to keep fund in order to pay off liabilities on time and to avoid/reduce interest rate and reinvestment risk. Further, there are tax advantages for funding.

    How attrition rate assumption shall be set for the actuarial valuation of gratuity and leave encashment?

    There are three key factors which shall be considered to set attrition assumption: a) Company’s recent attrition experience in last 2-3 years b) Industry experience of employee attrition c) Management view on future attrition.

    Our Company has kept fund with an insurance Company and it provides an actuarial liability every year. Do we still require actuarial report from Certified Actuary?

    Even if the plan is funded and managed by an Insurance Company, still the Company need to get a separate actuarial valuation done. The reason being that an insurance company does not provide complete disclosures as required by accounting standard regulations and sometimes the assumptions are not fair and inconsistent with Company’s own experience.

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