Based on the experience gained, since the last amendment effected in the year 2013, the Authority felt that there is a need to amend the IRDA (Appointed Actuary), Regulations, 2000. The basic framework for appointment of Appointed Actuaries and their duties, functions etc. is prescribed in the aforementioned Regulations.
The draft of IRDAI (Appointed Actuary), Regulations, 2017 contains the following key changes to the earlier Regulations, amongst the others:
1.Short Title & Commencement
The draft regulations shall supersede the existing IRDA (Appointed Actuary) Regulations, 2000 and also amendments made thereon in 2013.
The following definitions were added:
Definition of “Actuary”,” Resident in India” and Institute of Actuaries of India
3. Procedure of Appointment of an Appointed Actuary
Ø A fellow member or an affiliate member in accordance with Actuaries Act 2006
Ø A person with 5 years of post-qualification experience.
Ø Post qualification experience should be relevant for nature, scale and complexity of the business.
Ø Must have worked for at least one year for statutory valuation.
Ø The Chairperson of the Authority will issue guidelines from time to time regarding the transitory arrangement available to the insurer so that the statutory work doesn’t get hampered.
5. No insurer will work without an AA.
8. Duties & Obligations
ü Availability of all the records with the AA to conduct actuarial valuation of liabilities and assets of the insurer.
ü Expression of opinion by AA on underwriting policy, reinsurance arrangements & effective implementation of risk management systems
ü If an AA is disqualified to act as an Actuary, he/she ceases to be an AA forthwith
ü Reference to pay due regard to generally accepted Actuarial principles while carrying out any task
Life Insurance Business:
§ Provisions related to Mathematical reserves, methodologies and underlying models, sufficiency and quality of data, and reliability and accuracy of mathematical reserves.
General Insurance Business:
· To ensure that premium rates of the insurance products are fair.
· Provisions related to IBNR, methodologies and underlying models, sufficiency and quality of data, and reliability and accuracy of IBNR.
You are requested to offer your comments/ suggestions on the proposed regulations for consideration of the same by the Authority. The comments/ suggestions in MS-WORD format (Annexure-1) should be sent by e-mail to pankajk.tewari [at] irda [dot] gov [dot] in with a copy to shyama [at] irda [dot] gov [dot] in latest by 28th February, 2017.