Let’s rewind to 1665, the year of the first recorded peer review. It began as a scholarly pre-publication check, but since then, peer review has evolved to become the cornerstone of  scientific, academic and professional practice. 

The nature of actuarial work is such that the users place an expected significant reliance on it. These pronouncements influence the financial stability of companies, the security of pension funds, the solvency of insurance providers, the fairness of premiums and charges, and even the effectiveness of national healthcare systems. The stakes are incredibly high. This isn't just about making precise calculations; it’s about delivering confidence in a world defined by uncertainty. 

This weight of responsibility is why actuarial peer review is more than ‘good practice’. It is a professional and regulatory imperative. 

The need for review is further heightened by the range of approaches, methodologies and assumptions an actuary may apply, often leading to significantly different results. A second professional assessment ensures the selected approach is reasonable, transparent, and well-supported. 

Why Peer Review: Safeguards Quality and Trust

In actuarial science, precision isn’t a virtue. It is a necessity. Actuarial work drives decisions involving millions, and sometimes billions of stakeholders’ funds. Whether it’s pricing an insurance product, valuing insurance or pension liabilities, or modelling financial risks, every assumption, analysis, and conclusion must be accurate, appropriate, reliable, and robust. 

Peer review plays a critical role in this process, enhancing quality, accountability and trust, while ultimately safeguarding the public interest. 

Ensures Accuracy and Reasonableness

Actuarial peer review involves an independent actuary critically examining the data, methods, assumptions, results and conclusions of a given piece of work. Even the most experienced professionals can overlook details. Peer review offers a vital second set of eyes to identify potential errors and omissions, whether computational, conceptual, or interpretative. 

It ensures that assumptions are reasonable and the methodologies align with regulatory guidelines and current industry standards. 

Enhances Professional Credibility

In an environment of growing regulatory oversight, peer-reviewed actuarial work signals both credibility and rigour. It helps mitigate bias and potential conflicts of interest, offering reassurance to both preparers and users of actuarial work. 

Regulators, boards, auditors and stakeholders gain confidence knowing the work has been independently scrutinised by another qualified actuary. 

Reduces Reputational, Regulatory and Legal Risk 

 Errors in actuarial work can lead to poor business decisions, financial losses, regulatory penalties, or even legal consequences. Peer review acts as a safeguard, proactively identifying potential issues before they escalate. 

 It is far more than a formality. Peer review is a vital quality control tool, a safety net and a best practice that every actuarial function should adopt. It’s not about finding fault; it’s about working together to improve the quality of work and ensuring reliability in actuarial outcomes. 

Our Commitment to Actuarial Peer Review and How We Can Support You Too

At Lux, peer review is not just a procedural step, it is a cornerstone of our quality assurance process and a reflection of our commitment to maintaining the highest professional standards. Our formal, well-established and comprehensive peer review programme ensures that every piece of actuarial work we deliver meets those standards. 

Our Internal Peer Review Standards 

We apply peer review appropriately and proportionately across our actuarial work. Our approach is fully documented. Every comment, finding, and adjustment is recorded, ensuring transparency and consistent best practice. 

Importantly, our process goes beyond basic checks. Each deliverable is reviewed by a qualified actuary, independent from the original work, with significant technical experience. This includes: 

• Evaluating the appropriateness of methodologies and assumptions 
• Verifying the accuracy of calculations 
• Validating the logical consistency, relevance, and reliability of results 
• Ensuring results, caveats, and conclusions are communicated clearly and completely 
• Documenting all findings and resolutions to maintain a transparent audit trail 

This means our clients receive work that is not only technically robust but also clearly articulated and professionally presented. 

Need Support with Peer Reviews?

Finding an objective, skilled, and independent reviewer can be difficult, especially when deadlines are tight or the project requires niche expertise. While the benefits of peer review are clear, timely access to qualified reviewers is not always straightforward. 

Whether you’re a small team seeking independent validation or a large organisation needing external oversight, we can support your internal governance and regulatory compliance through our peer review services. 

Our Expertise

Today’s actuaries are called upon to review not only traditional calculations but also increasingly complex models and codebases. Our large team of specialised actuaries supports interdisciplinary reviews across Life Insurance, General Insurance, Retirement Benefits, Banking, Investments, IFRS 17, Takaful, Climate Risk & Sustainability, AI, Data Science and Enterprise Risk Management. 

We apply the same level of rigour and objectivity to client reviews as we do internally, ensuring your actuarial output meets the highest standards. 

Let’s Talk

If you are looking for a partner to support peer review – whether through concurrent reviews, retrospective cold file reviews or technical assessments for assurance, compliance, client expectation or best-practice alignment – we’re here to help. 
Get in touch to discover how our expert, independent reviews can elevate your actuarial work and safeguard your reputation.