The Actuarial Association of Europe (AAE) has adopted its second European Standard of Actuarial Practice (ESAP2), on Actuarial report under Solvency II.
The announcement follows approval from the general assembly of the AAE on 31 January 2016.
ESAP2 is a model standard suitable for adoption when issuing an Actuarial Function Report under the Solvency II directive.
The purpose of ESAP2 is to provide guidance to actuaries so that users of the report, in particular the administrative, management or supervisory body of insurers, are able to "place a high degree of reliance on the report, the judgments made by actuaries, its relevance, transparency of assumptions, completeness and comprehensibility, including the communication of any uncertainty inherent in the results stated in the report".
The standard assumes that actuaries will also comply with ESAP1, which provides guidance for general actuarial practice. ESAP1 was approved by the AAE on 3 October 2014.
"The adoption of the second model standard represents another important step forward in the development of the actuarial profession in Europe," said the AAE.
The association said the intention of a standard of actuarial practice was to promote a greater consistency of approach to actuarial practice in a given situation, and to increase the confidence of clients and the public without unnecessarily constraining the exercise of actuarial judgment or creativity.
It added: "It is the AAE's intent that, by publishing model standards, it will encourage the creation and convergence of national actuarial standards in Europe."