Regulator told Quinn to get actuary for price premiums
Published 19/08/2010 | 05:00
THE Financial Regulator asked Quinn Insurance to hire an in-house actuary more than eight months ago, in an attempt to ensure the firm's premiums would be high enough to cover future claims.
Actuaries are usually intimately involved in setting pricing levels for general insurance companies, but insurers are only legally obliged to have an actuary sign off on their accounts.
Quinn Insurance Limited (QIL) outsources that accounts work to an actuarial consultancy, but the Irish Independent has learnt that the regulator contacted QIL in 2009 and asked the firm to hire an actuary for pricing.
The request came several months before the Financial Regulator moved to put the insurer into administration at the end of March, citing newly-discovered multi-billion guarantees advanced to fellow Quinn companies.
A spokeswoman for QIL last night confirmed that "following a recommendation by the Financial Regulator" last year, QIL "undertook to establish an actuarial function internally".
"This was progressing when the administrator was appointed on March 30," she added.
It is understood that recruitment efforts are ongoing.