KIDI provides specialized insurance services for the further advancement of insurance systems through in-depth research in actuarial issues and accounting systems. KIDI is also keeping the insurance industry up-to-date on the latest benchmarks found in case studies from around the world as well as other best practices to build a stronger platform in the actuarial and risk management sector. In preparation of a global trend emphasizing stronger risk management and fair value disclosure, KIDI also keeps up with the latest actuarial issues and accounting systems of other advanced countries and shares the research results with insurance companies and regulators.
Research on Actuarial Issues and Accounting System
KIDI provides support in projects such as fair value of insurance liabilities, analysis on policyholder behaviors, and the evaluation of various guarantee benefits for variable products. It also provides the insurance industry with information on actuarial systems and practicing guidelines for liability valuation in accordance with today’s global standards.
Risk Measurement Research
With the improvement of the current Risk-Based Capital systems in Korea, KIDI is conducting research to ensure that Korea’s solvency systems are consistent with international standards such as Europe’s Solvency II or the IAIS Insurance Capital Standard. KIDI is currently focusing on insurance risk and interest risk, while also expanding its research to other various risk factors such as market and credit risk.
Cash Flow Analysis of the Insurance Industry
KIDI makes projections on the insurance industry’s financial statements and solvency margin ratios, and also performs stress tests by using data collected from insurance companies. KIDI sets model points for assets and liabilities, and conducts projections of future cash flow and analyzes factors that influence financial results by applying best estimates for factors such as return on investment (ROI) based on company-level historical data. These services are used towards supporting insurers establish business strategies. These data analyses results are also used to help government organizations establish insurance policies and plans for industry supervision.
Establishment of the P/L settlement system set forth by IFRS17
In collaboration with nine companies, KIDI is in the process of establishing the P/L settlement system in accordance with the standards set forth by IFRS17. This system was designed to reflect the complexity of Korean products, and shows a remarkably fast computing speed using parallel programming hardware. KIDI supports continuous maintenance work even after the P/L settlement system is established so that the insurer could operate the system on a stable basis.
Collection of Data
- Surrender value
Financial Supervisory Commission
To crosscheck the result