Some Thoughts on Technical Reserves and Statutory Returns in General Insurance

Supervision of Insurance Companies in the United Kingdom is based on the principle of ‘freedom with publicity’. For general insurance, publicity is provided through the returns required by the Insurance Companies (Accounts and Forms) Regulations 1968 (S.I. No. 1408) which was issued under the terms of the Companies Act 1967. If the principle is to operate successfully the returns must be scrutinized carefully if not by prospective and existing policyholders and stockholders then by those representing their interests, be they government departments, insurance brokers, stockbrokers, statisticians, accountants or actuaries. The nature of the information to be collected, as well as its presentation and interpretation requires special skills and experience. An actuarial training provides these skills and it is appropriate, therefore, that the returns should be discussed at a meeting of the Institute.