Actuarial Notes

International Standard of Actuarial Practice 5: Insurer Enterprise Risk Models

By International Actuarial Association · 2018 · ISAP 5

Study guide: Exam 6I

An IAA model standard of practice giving guidance to actuaries performing actuarial services that involve the use of enterprise risk models for insurers. Adopted by the IAA Council on 21 November 2016, with conformance changes adopted on 1 December 2018, it is intended to facilitate convergence in standards of practice for insurer enterprise risk models, to increase public confidence in actuarial services for ERM purposes, and to demonstrate the IAA's support for the IAIS in achieving effective insurer ERM practice.

On the syllabus

  • Exam 6I — objectives B2, C1–C3, E2–E4; the whole standard.

Preface

Introduction

1 General

  • 1.1 Purpose
  • 1.2 Scope
  • 1.3 Relationship to ISAP 1
  • 1.4 Defined Terms
  • 1.5 Effective Date

2 Appropriate Practices

  • 2.1 Understanding of Risk and Uncertainty
  • 2.2 Proportionality
  • 2.3 Assumption Setting
  • 2.4 Stress Testing and Scenario Testing
  • 2.5 Assessing Consistency Among Models

3 Communication

  • 3.1 Disclosures

Related readings

  • International Standard of Actuarial Practice 1 (General Actuarial Practice - 2018) — ISAP 1, on which this standard relies in many respects (section 1.3), cited with it in the content outline
  • International Standard of Actuarial Practice 4 (IAA - 2019) — ISAP 4, cited with this standard in the content outline for the same objectives

Sources