IRDA Seeks to Amend 16-Year Old Actuary Regulations

Insurance regulator Irda has proposed changes in the 16-year old regulations regarding Appointed Actuaries by modifying framework for their appointment and functions. "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," it said.Inviting comments on the exposure draft on IRDAI (Appointed Actuary) Regulations, 2017 by February 28, it said the basic framework for appointment of Appointed Actuaries and their duties, and functions, among others is prescribed in the proposed regulations.

Once approved, it will supersede the existing Regulations of 2000 and also amendments made thereon in 2013. Appointed Actuaries (AAs) are entrusted with the responsibility of maintaining solvency position of the Company. There are other jobs such as new product approval which need inputs and certification from Appointed Actuaries.

"An Appointed Actuary shall have access to all information or documents in possession, or under control, of the insurer if such access is necessary for the proper and effective performance of the functions and duties of the appointed actuary," the draft said.In addition, the AA can seek any information from any officer or employee of the insurer. The AA will be entitled to attend all meetings of the management including the directors of the insurer.

Proposing duties and obligations, the draft said that AA will ensure the solvency of the insurer at all times and also ensure that the premium rates of the insurance products are fair.

The draft further said An AA would enjoy absolute privilege to make any statement, oral or written, for the purpose of the performance of his functions as appointed actuary.