Risk Institute cooperates with more than 40 insurance companies in terms of submitting quarterly and annual reporting to financial markets regulatory agencies, in particular, provides services in assessment of insurance reserves. At the preparation of quarterly reports to State Commission for Regulation of Financial Services Markets in Ukraine the Risk Institute calculates insurance companies` reserves and provides companies with the necessary data, certified by the signature of certified actuaries.

Risk Institute performs analysis of the insurer's portfolio and determines optimal reserving scheme, which allows the company to effectively fullfil it's insurance liabilities while considering real economy of the company (payment of commission remuneration, administrative costs, etc.).

Moreover, experts of the Risk Institute perform examination of the existing actuarial provisions and procedures within the company for correctness and compliance with the law, and provide recommendations for their improvement;

Performing liabilities adequacy tests

Risk Institute calculates the insurance reserves using actuarial methods in accordance with the requirements of the current legislation, and conducts liabilities adequacy tests in accordance with the recommendations of the State Commission for Regulation of Financial Services Markets.

According to the Law of Ukraine “On Accounting and Financial Reporting in Ukraine” since the year 2013 insurers shall file reports in accordance with International Financial Reporting Standards (IFRS).

The liability adequacy test that establishes sufficiency of the funds reserved for future payments on insurance liabilities of the insurer on the reporting date is an integral part of the financial statements prepared in accordance with IFRS. This requires modeling of future losses and level of associated administration costs.

Risk Institute analyzes adequacy of the liabilities for unearned premium reserves, based on the modeling of future expenditures. The adequacy of the loss reserves is verified by actuarial methods.

Also for companies engaged in risky types of insurance, the Risk Institute performs actuarial valuation and forecasting of loss ratios, which are used when calculating and creating loss fluctuation reserves, thus avoiding substantial over reservation.

Distribution of investment income on life insurance contracts

The Article 9th of the Law of Ukraine “On Insurance” requires insurers to conduct annual distribution of additional investment income among the insured persons. In April-June of each year core publications publish rankings of insurers according to the returns on investment stated by them for the previous year. Such ratings and results of distribution of bonuses can cause a lot of questions to both experts and insured persons. The insurers have to balance the desire to show a decent rate of return and risk of encounter fair discontent of the insured persons.

Risk Institute annually allocates additional investment income between the insured persons, and undertakes proper training and education of the insurer employees.