The Actuarial Function was introduced in Italy on 1st January 2016 according to the new Code of Insurance that, at the same time, issued new rules about the Solvency II regime.
In spite of this, the Government didn’t listen, and so in the new Code of Insurance only the Actuarial Function was introduced. Fortunately a specific rule provides that the qualified Italian Actuary (enrolled in the official list ‘Albo’) is already fit and proper and so he/ she has automatically recognised their professional skills. Unfortunately another rule said that also other kind of persons can be entrusted as Actuarial Function but he/she must show to get the professional skills; hence, in this last case, the fit and proper approach cannot be applied.
Different fields In spite of this, thanks to a very strong marketing action by the National Actuarial Council, actuaries in Italy were able to maintain all the professional tasks and to enlarge the market of the actuaries employed in the Insurance Companies, Life and non-Life. So the actuarial work increased due to the activities of the previous Appointed Actuary and Auditor Actuary that remained the same and to the new work coming from the Actuarial Function, Risk Manager Function and Solvency II; so many actuaries work in different fields inside an Italian Insurance Company including accounting, distribution, IT, internal auditing, etc…. as the solvency II approach enlarged the view and hence the opportunities of work for actuaries. Great challenge At the same time the Auditor Firms continue to entrust actuaries to verify the technical reserves calculated according to Local Gaap standards and also part of the solvency II process, so from a general point of view Italian actuaries continue to increase in number in the official list but above all in terms of quality of work and position/governance inside the insurance companies: it is a great challenge for actuaries. Government process At the moment we must also observe that over 90% of tasks in the Actuarial Function were assigned to actuaries enrolled in the list (application of fit and proper rule) with sufficient experience, employed and external professionals, and the residue are in any case persons which get good professional skills, so from this point of view the Actuarial Function has been well considered in the market and actuaries have and will have a good space, also because in many insurance companies they are entering in the governance process, for instance they are attending the Board presenting own report and other aspects. Strategic rule Some actuaries, moreover, were entrusted as Risk Manager. Another important rule, introduced by the new Insurance Code, provides that a technical note for the tariffs of all lines of business in general insurance must be written (in the past the technical note was only compulsory for Life and motor insurance). It is a very strategic rule and it means much work and space for actuaries, employed and external professionals. 2017 important year Obviously there are many other questions to be solved and faced; we are at the beginning but some important basic points have been developing in a good direction. Our effort is to support all these activities through a good training (permanent training is compulsory for Italian Qualified Actuaries enrolled in the list), to provide guidelines (work in progress) looking at AAE’s indications, to continue marketing above all about quality and governance; so, 2017 will be a very important year.