Actuarial Monitoring Programme
3 minute read
Overview
The FRC is responsible for setting and maintaining technical actuarial standards (TASs). The FRC Actuarial Monitoring Programme (‘the programme’) aids our assessment of the effectiveness of the TASs, helping us to set proportionate, outcome-focused standards in support of the reliability objective. It also provides an opportunity for practitioners to engage with us, with a view to assisting you in applying the principles-based standards in a proportionate way.
The programme is delivered through reviews to assess the quality of technical actuarial work carried out by actuarial practitioners, in particular assessing the practitioners’ compliance with the relevant actuarial standards.
The FRC conducted a pilot exercise of the monitoring programme in 2024 and the key findings for practitioners from this exercise were published in Actuarial Monitoring Programme – observations from pilot phase.
| Name | Actuarial Monitoring Programme – observations from pilot phase |
|---|---|
| Publication date | 7 April 2025 |
| Format | PDF, 572.3 KB |
2025/26 programme
The FRC is inviting actuarial practitioners working in insurance or pensions to express their interest in participating in the 2025/26 programme. The programme will cover only UK work. In particular, we are looking to include technical actuarial work in relation to:
- Insurance
- Own Risk and Solvency Assessment, focusing on determination and communication of solvency projections and stresses
- With-Profits business, ideally where the work involves customer communications e.g. preparing the annual With Profits Actuary report to policyholders
- Internal model validation exercises for non-life business
- Pensions
- Advice to trustees or sponsors on buy-in or buy-out transactions
If you are interested in taking part but do not carry out work in the above areas, please contact us for a further discussion.
If you are interested in participating, please email your usual FRC actuarial contact or [email protected] to register your interest by 30 June 2025.
If you cannot participate in the 2025/26 programme but would like to be considered for a future programme, please still register and indicate when you might be available to participate together with other relevant information.
What happens when I take part in the programme?
| Preliminary discussion | The FRC will have an informal preliminary discussion with you covering the practicalities of the review, including the terms of engagement. |
|---|---|
| Commencement | You will be invited to a planning meeting and will receive an information request and details of submission timescales. |
| Submission | You will be asked to submit information to the FRC electronically via SharePoint. |
| Review | During the review, the FRC may contact you to ask clarification questions / request further information. Informal discussions may take place with you. |
| Feedback | The FRC will provide initial feedback to you, which you can respond to, ahead of the FRC finalising the outcome of the review. |
What kind of information will I be asked to submit to the FRC and when?
When you join the programme the FRC will send you a detailed information request which we will discuss with you in the planning meeting. In general, we will be asking you to submit:
- Your written communication e.g. report provided to the intended user containing the actuarial information.
- Where appropriate, documentation underlying your technical actuarial work which supports your communication. For example, documentation which will allow technically competent persons to assess the judgements made.
- Documentation of evidence of your compliance with the relevant TASs, where this exists.
Typically, we will request submission of your information within one month of the planning meeting but we will confirm this with you in the planning meeting.
The information you provide will be treated in confidence by the FRC in line with the terms of engagement agreed with you and your organisation.
How will the FRC assess the quality of my actuarial work?
The FRC will be guided by whether your actuarial work meets the reliability objective as set out in the TASs and your compliance against the relevant TASs in force at the time of your work. We will not be validating data, assumptions, calculations, models or judgements exercised.
How will the outcome of the review be communicated to me?
The FRC will provide initial feedback to you privately on completion of the review. You will have an opportunity to provide a response to the initial feedback, after which we will finalise the feedback which will again be provided to you privately.
We may also publish anonymised themes from monitoring activities.
What happens if the FRC finds that my actuarial work is not compliant with the TASs?
Where the FRC observes potential non-compliance we would firstly look to engage with you to establish further factual information to validate or otherwise our assessment of non-compliance. Only in the most serious cases, such as where there are reasonable grounds to suspect there may have been misconduct, will the FRC consider referring matters to the Disciplinary Scheme of the IFoA or the FRC Actuarial Scheme.