Actuarial Consulting Services
Overview
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.
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Isurance company
Making rates
Requests
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KIDI
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Financial Super- visory Commission
Solvency Valuation
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Isurance company
To crosscheck the result