Financial reporting for insurers in South Africa has been saved
Financial reporting for insurers in South Africa
Clarifying the HAF's role
Andrew Warren, Insurance Sector lead, and Gerdus Dixon, Insurance Sector Audit lead, make the case for clarification of the role of the Head of Actuarial Function as it relates to the governance of IFRS reporting at insurers in South Africa. This is considered given the change in the responsibilities of actuaries involved in the implementation of Solvency Assessment and Measurement (SAM).
The synopsis of this article is that where a HAF’s duties extend beyond SAM, that part of the role should be clearly defined. The operating structure of insurers’ finance teams need to continuously evolve to keep pace with the changing role of actuaries in IFRS reporting.
As is the case with most good things, it may take time for this role to settle, and the outcome will undoubtedly vary from one insurer to the next. If properly implemented there is no doubt that an insurer is left with a stronger financial reporting capability.