Q. Why is the NZSA putting in place this Forum?
The AA function is a unique and important role. It is unique in the sense that the AA role is employed or engaged directly by an insurer, whilst being expected to remain independent. It is important in the sense that it is a key component of statutory regulation, hence playing a vital role in ensuring the ongoing financial stability of insurers, policyholders and ultimately the insurance sector itself. Hence the role is a complex one, requiring a mix of technical skills with an ability to manage and work with a variety of stakeholders.
Whilst the AA is typically an experienced actuary, there are no formal training requirements specifically relating to the role. Despite this it is also the NZ Society of Actuaries (NZSA) highest profile role, and the performance of the role has a bearing on the perception of all actuaries.
For these reasons the NZSA is creating the AA Forum, a body of actuaries either performing or supporting the AA role. The overall goal is to strengthen and enhance the AA role for the benefit of actuaries, the insurance industry and wider society.
Q. What will the Forum provide?
The Forum consists of several different components:
- Network of like-minded individuals (AAs and those who work closely with AAs)
- Peer support
- Regular communications
- Support for aspiring AAs e.g. education sessions
- Closed room and Chatham House meetings to facilitate open discussion
- Working groups on specific topics such as solvency
- Open-door events to build closer ties with the regulator, industry and overseas bodies
- Acting as a coordination function for NZSA industry committees (e.g. General Insurance, Life, Health)
- Creation of professional standards, guidance notes and regulator/ industry submissions
Q. Who belongs to the Forum?
The Forum members are NZSA AAs and their nominated NZSA actuarial delegates.
NZSA actuaries performing similar roles for other bodies (e.g. government entities such as the ACC and Natural Hazards Commission) will also be invited to be members.
There will be a maximum of one AA and one delegate per AA role. So effectively each NZ insurer (with an AA role) will be eligible to have two members of the Forum – their AA and a delegate.
Other members could be invited by the Forum Committee however this is not an expectation.
Q. Who can be a delegate?
The delegate must be an NZSA member, and it is expected they have some working relationship with the AA.
For clarity the delegate does NOT have to be the Alternate AA (a role encouraged by the RBNZ). The Alternate is certainly a likely candidate to be a delegate, however that does not need to be the case, and the Forum welcomes other delegates.
Q. What if the AA holds multiple AA roles?
Some individuals will be performing multiple AA roles, and they will be eligible to have a single membership of the Forum. However, they can have a different delegate for each role, meaning (effectively) each insurer is able to have at least one unique actuarial representative.
Q. What if the person performing the AA role changes mid-year?
We will deal with this on a case-by-case basis but expect the membership will simply transfer to the new person performing the role.
Q. I am an overseas based AA. Do I need to do anything different?
No. All AAs regardless of their location will be treated the same. We do believe the Forum is important to enable overseas based AAs to stay familiar with local NZ conditions and be supported by NZ based actuaries. The events will be a mix of virtual and in-person events to help facilitate this.
The AA does need to be a member of the NZSA to be eligible for the forum.
Q. Will other actuaries have an opportunity to be involved in the Forum?
Membership of the Forum will initially be restricted to AAs and their delegates, however this may evolve over time. The Forum does intend to hold ‘open events’ which all NZSA members will be invited to attend.
Q. What role will other entities such as auditors, regulators or industry bodies play?
They will not be members of the Forum; however, they will be regular invitees, consistent with the aim of creating greater collaboration between AAs, auditors, the RBNZ and industry.
Q. How will it be governed and organised?
- Organised by a Committee (AA Forum Committee)
- The convenor and terms of reference are approved by the NZSA Council
- The Committee works closely with the Chief Executive and NZSA secretariat to schedule a calendar of meetings and events
- The CE and secretariat manage organisation of meetings and events, alongside the Events Committee
- Sub-committees may be appointed as required to focus on specific tasks or objectives (e.g. solvency, industry responses)
- The Terms of Reference are in the member portal
Q. What makes the Forum different to NZSA committees, seminars, or conferences?
- Specific membership – AAs and delegates
- Regularly invited audiences e.g. RBNZ, industry and NZSA members for some events
- AA related topics
- Cross-industry focus
- Less focus on valuation/technical issues
- More focus on solvency
- More focus on the ‘soft skills’ e.g. Board influence, RBNZ engagement
- More focus on industry and regulator collaboration
- More focus on support and community
Q. How does the Forum interact with RBNZ Thematic Review of the AA Role?
The Forum is an initiative of the NZSA and has no formal role within the RBNZ regulatory framework. However, the RBNZ is a regular invitee, and a goal is to improve the collaboration and communication between AAs and the RBNZ. The Thematic Review raised several important points, and we expect they will be discussed at the Forum.
Read about the RBNZ Thematic review of the AA role.
Q. How are we funding the forum?
NZSA is currently looking at how we will fund the forum, including a full day ticketed event and event sponsorship.