Letter from the Government Actuary to
the Clerk of the Sub-committee
I am writing to follow up the four points on
which members of the Committee asked me for more information.
Service Level Agreement with HMT (Q45 of the transcript)
I enclose a copy of the Service Level Agreement
between GAD and HM Treasury in relation to the supervision of
life insurance companies, signed copies of which were exchanged
between myself and Martin Roberts in November 1998.[1]
Was advice always taken by regulator? (Q52 of
the transcript)
Our understanding is that the regulator has
always taken our advice into account in forming their regulatory
response to individual life insurance companies, especially where
there are questions over the adequacy of technical provisions
or coverage of the required solvency margin.
Was GAD aware of the change in projections? (Q57
of the transcript)
GAD would not expect to receive any information
about the projections being given to policyholders by a life insurance
company. We have no reason to believe that anyone at GAD was made
aware of any change in the projections used by the Equitable in
1993.
Note on turnover and recruitment and retention
problems (Q91 of the transcript)
A note on turnover and GAD's recruitment and
retention of actuarial staff is annexed.
28 February 2001
1 Not printed. Back
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