RESPONSIBLE ACTUARY

							DEVELOPMENT OF THE ACTUARIAL
   PROFESSION IN BULGARIA
 Warsaw meeting, 4-5 September 2006

    Nikolay Todorov, Vania Petrova
      Bulgarian Actuarial Society
              I. General information

• Year of establishment of the Bulgarian
  Actuarial Society (BAS) - 1993

• Number of members – 68

• Type of membership – full members, associated
  members




           Bulgarian Actuarial Society, Warsaw meeting 4-5 September 2006
             I. General information

• Full member of BAS
   – a person, who has no less than three years of
     professional experience as an actuary and
     who has covered a qualification minimum,
     according to the professional requirements for
     qualification of actuaries
• Associated member
   – a person, who works as an actuary and
     accepts the ethical and professional principles
     of the Society
             I. General information

• IAA membership – associated member (2002)
• GC membership – observer member (2005)

• Number of insurance companies is Bulgaria
  – General insurance - 21
  – Life insurance - 13
  – Pension insurance companies - 8
  – Health insurance companies - 12



          Bulgarian Actuarial Society, Warsaw meeting 4-5 September 2006
     II. Educational program of the BAS


1995-1996 – Post Diploma Actuarial Course
               22 qualified actuaries

2003-2006 – new Diploma Actuarial Course
               (8 basic modules)
          30 actuaries participating in the Course
          25 have passed successfully all the
          exams till now

           Bulgarian Actuarial Society, Warsaw meeting 4-5 September 2006
III. Professional Ethic Code and Disciplinary
                   Process

    General Assembly of the BAS adopts:
     - Code of conduct
     - Rules of the Disciplinary process.

    There has been established a special
    commission – Professional Ethic and
    Disciplinary Commission.




          Bulgarian Actuarial Society, Warsaw meeting 4-5 September 2006
IV. Main changes in the current legislation in
                 Bulgaria

- New Insurance Code (2006)

- Social Security Code:
  - a new type of pension fund – voluntary pension fund
    with occupational pension schemes (in force 1
    January 2007)


- Determine the statute of the responsible actuary


           Bulgarian Actuarial Society, Warsaw meeting 4-5 September 2006
        V. RESPONSIBLE ACTUARY
A responsible actuary shall be responsible for:

• Working out sufficient premiums, in terms of amount,
  with the exception of the premiums for high risks
  insurances;

• Setting up sufficient technical provisions, in terms of
  amount; for the proper calculation of the solvency
  margin; as well as for the correct utilization of the
  actuarial methods in the insurer or reinsurer’s practice;

• The accuracy of the distribution scheme of income
  gained from assets’ investments between an insured
  and an insurer in life insurance.

            Bulgarian Actuarial Society, Warsaw meeting 4-5 September 2006
         V. RESPONSIBLE ACTUARY
REQUIREMENTS TO A RESPONSIBLE ACTUARY:

• Hold a higher degree of education and covered a course
  of study in higher mathemathics in compliance with the
  requirements specified under an Ordinance issued by
  the Commission;

• Have at least three-year experience as an actuary or as
  a lecturer having academic rank in insurance or actuarial
  science;

• Have obtained a recognized legal capacity of a
  responsible actuary from the Commission upon
  successful completion of an examination.

             Bulgarian Actuarial Society, Warsaw meeting 4-5 September 2006
                          Future goals

• full membership in IAA and GC
• recognition of the actuarial exams held by the
  Society from the Regulatory Body (Financial
  Supervisory Commission)
• preparation of professional actuarial standards
• CPD seminars and professional discussions




           Bulgarian Actuarial Society, Warsaw meeting 4-5 September 2006