Many UK-based general insurers could benefit from outsourcing their actuarial function as they prepare for Solvency II to avoid the cost of the extra expertise needed, actuaries and consultants OAC has 
said.
The European Union’s upcoming Solvency II capital rules require all insurers to have an actuarial capability to help them assess their liabilities. However, OAC warned many firms will not have enough assets under management to allow them to meet the cost of the extra regulatory obligations.
Its examination of a sample of 28 firms and found 17 had assets under management – the market value of the firms’ assets – of under £150m.
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