Government Regulation and Financial Reporting in Insurance

Course 6B — the concluding course of the Association's actuarial programme: government regulation of insurance activity and financial reporting from the perspective of the actuary, the regulator and the auditor. The course covers insurer reporting and early warning indicators, financial planning and risk-based capital, IFRS 17 and IFRS 9, Solvency I and Solvency II, international insurance supervisory principles, risk-based supervision, the role of the actuary, the insurance legislation of the Republic of Kazakhstan, data quality and professional communication. It concludes with a final regulatory case study.

Course programme

1. Financial statements of an insurance company — balance sheet, insurance and investment result, combined ratio.
2. Early warning ratios — early warning indicator system, thresholds and interpretation.
3. Financial planning and asset-liability management — balance sheet projection, sustainable growth, capital policy.
4. Risk-based capital — components of the requirement, covariance formula, intervention levels.
5. IFRS 17 Insurance Contracts: measurement principles — aggregation, measurement models, discount rates, reconciliations.
6. The link between IFRS 17 and IFRS 9 Financial Instruments — classification of assets, expected credit losses, accounting mismatch.
7. Solvency I and Solvency II as international practice — three pillars, capital requirements, market-consistent valuation of the balance sheet.
8. International insurance supervisory principles — the Insurance Core Principles of the International Association of Insurance Supervisors.
9. Risk-based supervision — risk profile, scoring, early intervention.
10. The role of the actuary in prudential regulation — functions, independence, actuarial report.
11. Insurance legislation of the Republic of Kazakhstan — legislative framework, the regulator, licensing, the actuary, policyholder protection.
12. Data quality — quality framework, data lineage, controls and reconciliations.
13. Actuarial communication and professionalism — communicating with the regulator, the board and the auditor, ethics.
14. Final regulatory case study — from financial statements and capital to a recovery plan and a submission package for the regulator.

Each lesson comes with study notes containing a table of notation, a worked example and self-study problems, plus a lesson test. The legislation lesson has been checked against the current texts of the laws. The course final test has 60 tasks and leads to an ASAB certificate.

Duration: 14 video lessons, 3 h 30 min of video + lesson tests and a final test.