Professional Indemnity Insurance for Actuaries

Private enterprises engaged in certain types of activity are required by law to carry out an actuarial appraisal of the possible risks associated with the activity they are pursuing (e.g. the activity of an insurance company engaged exclusively in selling medical insurance). Actuaries carrying out appraisal services in these cases are subject to their own legal regime and must have civil liability insurance, as stated in Art 16 of the Federal law number 293 (293-FZ) dated 02.11.2013 (as amended on 13/07/2015), entitled ‘On actuarial activity in the Russian Federation’.

Lexgarant Insurance Company are happy to offer their specially designed insurance product for this type of actuarial services.

We provide below an explanation of the basic terms encountered in a typical insurance policy of this type:

The insured

The Insured is the actuary carrying out the actuarial appraisal.  

The beneficiary/ the loss payee

The beneficiary of the insurance is the legal entity which has hired the actuary to carry out an actuarial valuation under a contract for services.

The subject of insurance

The insurers will indemnify the Insured for all sums which he/she shall become legally liable to pay to the party instructing actuarial services (pursuant to the party’s legal obligation to obtain an actuarial audit), as a result of the actuary’s wrongful actions in the course of performance of the actuary’s duties under a contract for the provision of actuarial services.

The insured event is the financial loss sustained by the party instructing the actuarial services, caused by the wrongful actions of the actuary in the course of performing his duties under the contract for actuarial services.

The minimum sum insured is 3 million Roubles, the most typical sum insured is the amount which is 10 times more than the fee being paid to the actuary under the contract.

The deductible

The policy includes a deductible. The deductible is the part of the loss that is not subject to compensation by the Insurer upon the occurrence of an insured event. It is set out by the Insurer in the insurance contract and agreed with the Insured at the outset.

The deductible can be conditional or unconditional.

With a conditional deductible, the insurance compensation is not paid until the amount of the insurance compensation payable under the contract of insurance is higher than the deductible. Once the amount of compensation for which the insurer is liable, exceeds the amount of the deductible, the compensation is paid in full.

With an unconditional deductible, an amount is always deducted from the amount of any insurance compensation payable under the policy.

The period of insurance

The period of insurance is determined by the agreement of the parties but correlates with the dates contained in the agreement with the actuary for actuarial services.

The insurance rate

The insurance rate is determined on the basis of applicable tariffs. The rate will be affected by the circumstances of each individual risk and will take into account the degree of the underwriter’s exposure. The typical rate for a policy with a duration of 12 months can vary between 0.17% and 0.20% of the sum insured.

The insurance premium

The consideration for the insurance contract is the insurance premium. The amount of the premium is determined by multiplying the sum insured by the insurance rate. The insurance premium is paid by the Insured in a single one-off payment or by installments in accordance with the payment terms.

The stages of the insurance contract

The insurance contract comes into force in several stages:

The completion by the prospective insured of a proposal form together with the provision of all the necessary documents.

The discussion of the proposed terms of insurance with the prospective insured. Agreement of the terms with the insured.

The payment of the insurance premium by the insured (or payment of the first instalment of the premium by the insured where premium is paid by instalments)

The issuance of the insurance policy by the insurer.

Claims

In the event of a claim, which is accepted by the Insurer, the payment of the insurance compensation is made within 20 days of the submission of all the documents necessary for the payment of insurance compensation.

Our advantages:

The level of expertise of Lexgarant’s undewriters;

Individual approach to each client;

Insurance advice tailored to the needs of each client;

Minimal amount of documents required to take out the cover;

The option of paying the insurance premium by instalments;

Lexgarant’s commitment to honoring its obligations under the contract of insurance.

More detailed information can be obtained by approaching one of our underwriters in the Liability Insurance Department on: +7 (495) 625-3825 and +7 (495) 933-1515 ext. 250 and 251; or by email: property@lexgarant.ru