The Norwegian Financial Supervisory Authority (Finanstilsynet) published an inspection report on Landkreditt Forsikring AS covering governance and internal control, risk exposure and capitalisation. The supervisor concludes that the insurer should strengthen its follow-up of outsourced actuarial tasks and produce fuller documentation of the methodology used to calculate insurance technical provisions. Finanstilsynet found that the firm had not submitted suitability assessments for all board members, the chief executive, key functions and staff responsible for monitoring outsourced key functions; the board reported that a group-wide process has been established and that outstanding submissions would be completed in February 2025. The report also points to outsourcing governance weaknesses, including that technical-provision calculations were performed by a service provider reporting to an outsourced finance manager; from 1 January 2025 an in-house actuary is responsible for overseeing the calculations. On reserving, Finanstilsynet expects a complete method description under Article 34(1) of Delegated Regulation (EU) 2015/35 and notes that any move to a shared reserving tool for first- and second-line actuarial roles would require safeguards to maintain independence. Other observations include clearer presentation in the 2024 ORSA of whether assessments are based on updated figures (to be addressed in the 2025 ORSA), ensuring insurance agents and sub-agents are properly registered, and reassessing whether investment management limits are set too wide and whether relative limits would better account for portfolio value increases. Finanstilsynet requested the minutes of the board meeting that considers the inspection report and asked the company to send a copy of the letter to its auditor.

Original source View in tracker