1. Prudential Requirements Manalur Sandilya Consulting Actuary

2. Outline ICP’s 18 through 23 Interlinked by the same theme Interpretation of Prudent – Prudent Expert Non-Life Insurance Focus Ideas applicable to Life Insurance situations as well

3. Background Change in the Insurance Environment brought by movement from Tariff regime to a non-tariff regime Actuarial Cycle -- a shorter version Liability Valuation Standards Suggested/Guidance/Approval Available Methods

4. Valuation Methodology Paid Development Weighted Average or BF Incurred Development and BF Frequency/Severity methods Data Issues Objective -- Robust Estimate

5. Ratemaking Issues Basic Premise -- Properly priced and marketed product will not create “reserving” issues Where to begin -- given current conditions, start with reserving A forward looking analysis Data issues

6. Rate Adequacy Actuarial cycle Evaluate impact of ratemaking Rate Adequacy Analysis Leading to IBNR studies

7. Other Issues Handling of Reinsurance Appropriate Methods Net Analysis and Gross Analysis Testing of Analytical results Applications to ECR and FCR Future?