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Article (2)

Effective from 20/4/2016

The report of the Actuary on the revision and assessment of the pricing policy of the company shall include the following as a minimum:

  1. Determine the adequacy of the risk factors taken into account when setting the prices.
     
  2. Determine and examine the adequacy of the ratios of general and administrative expense, ratios of re-insurance expenses, expenses and other expenses of third party administrators taken into account within the prices.
     
  3. Disclose the specific profit margin in the price.
     
  4. Assess the process used in taking into account the claims’ history when setting the prices and disclosing the expected inflation ratios, in addition to determining the process of establishing the provision for the incurred but not reported claims.
     
  5. Assess the availability of the necessary controls in the pricing tools used.
     
  6. Examine the adequacy of the prices of each insurance product separately.
     
  7. Assess the impact of the pricing policy of the company on its financial position.
     
  8. Assess the appropriateness of the pricing policy of the company to protect the rights of policyholders and pay off the due compensations.
     
  9. Any other items which the Actuary deems necessary to perform his functions.