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The Actuary The magazine of the Institute & Faculty of Actuaries
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Life Board news: Peer review

Following a letter from the then board chairman sent out in December 2003 and discussion at CILA in April 2004, the board’s proposals for peer review are now nearing completion. The overriding principle adopted by the board is that there must be ‘two pairs of eyes, one of which must be external’.

The new GNs will require that all advice which directors will be required to take from the actuarial function holder and the with-profits actuary under the proposed FSA rules should be subject to external actuarial peer review. The review of the actuarial function holder might still be achieved in part through the audit process and the reviewing actuary, but this is no longer automatic following the changes made by FSA to the reviewing actuary role as set out in PS04/16. The board recognises that peer review will need to be incorporated into the normal governance procedures of life insurers and will be consulting on the best way to achieve this.

The board has prepared a list of FAQs relating to peer review which are available at www.actuaries.org.uk/link /life_insurance/guidance_changes.html or from Maria Singleton (email marias@actuaries.org.uk, tel 020-7632 2173) on request.