Article 22. Actuarial Organization and Actuary

An actuarial organization shall be defined as a legal entity that provides actuarial services, including:

calculations of the mathematical probability of the occurrence of an insured event, determination of the frequency and severity of the consequences of causing damage both in individual risk groups and in the insurance population as a whole;

mathematical justification and calculation of the necessary insurance reserves and funds of the insurer, development of methods for their formation;

determination of the relationship between the rate of capital investment and the net rate when the insurer uses the contributions collected as investments, which reduces tariff rates by the amount of investment income;

calculation of the capital adequacy of insurers and reinsurers, as well as mechanisms for ensuring asset quality;

justification of the necessary expenses for the organization of the insurance process, and calculation of the cost of insurance services;

establishment of tariff rates for each type of insurance (reinsurance), taking into account the long-term and short-term nature of carrying them out for insurers;

evaluation of the results of the insurer's investment activities using actuarial calculations;

planning of the insurer's income for various types of insurance (reinsurance);

development of software products for actuarial calculations;

provision of other actuarial services related to insurance.

The actuarial organization may only provide actuarial services in accordance with a contract on a fee basis.

An actuary shall be defined as an individual who has received an actuary qualification certificate in accordance with the procedure established by the legislation, and who is a member of the staff of an actuarial organization or has concluded a civil law contract with the actuarial organization.

The actuary shall be liable to the actuarial organization for damage caused as a result of poor-quality provision of actuarial services, disclosure of commercial or other secrets protected by law and other actions that caused losses to the actuarial organization.

The actuarial organization shall have at least one actuary on its staff.

The actuary shall not have the right to:

conduct insurance and reinsurance operations as an insurer;