“Insurance Regulatory and Development Authority of India (Appointed Actuary) Regulations, 2017” outlines the qualifications, duties, and regulatory framework for the appointment and functioning of Appointed Actuaries in the insurance sector. Here’s a detailed summary of the regulation:
Title and Commencement
These regulations are called the Insurance Regulatory and Development Authority of India (Appointed Actuary) Regulations, 2017.
They replace the 2000 regulations and come into force on the date of their publication in the Official Gazette.
Definitions
Definitions provided for terms such as “Actuary,” “Appointed Actuary,” “Authority,” “Institute of Actuaries of India,” and “Professional Standard.”
Procedure for Appointment of an Appointed Actuary
Insurers must appoint an actuary as the “Appointed Actuary.”
Eligibility criteria include being ordinarily resident in India, a Fellow member of the Institute of Actuaries of India, and having specific professional experience related to the type of insurance (life, general, or health).
Conditions for existing Appointed Actuaries and transitional provisions are detailed.
Effect of Rejection of the Application
Procedures to follow if an application for an Appointed Actuary is rejected, including reapplication with a different candidate.
Business Continuance
Insurers are required not to operate without an Appointed Actuary for more than one year. Non-compliance may attract actions under the Insurance Act, 1938.
Transitory Provisions
Provisions for situations where insurers struggle to appoint an Actuary or where young Actuaries need mentoring.
Cessation of Appointment
Conditions under which an Appointed Actuary’s approval may be withdrawn, including failure to perform duties adequately or cessation of eligibility.
Powers of Appointed Actuary
The Appointed Actuary has access to all necessary information and documents and can attend and speak at meetings related to their duties.
Duties and Obligations
Comprehensive list of duties including ensuring solvency, advising on product design and pricing, compliance with statutory requirements, and overseeing the adequacy of reinsurance arrangements.
Absolute Privilege of Appointed Actuary
The Appointed Actuary enjoys absolute privilege in making statements necessary for the performance of their duties.
Conflict of Interest
Appointed Actuaries must not engage in any activity that might lead to a conflict of interest.
Applicability to Reinsurance Business
The regulations apply to reinsurers, except where foreign insurers engage in reinsurance through a branch in India.
Power of the Authority to Issue Clarifications
The Authority can issue clarifications or guidelines to address doubts or difficulties in interpreting the regulations.
These regulations establish a framework to ensure that Appointed Actuaries operate with integrity and transparency, providing crucial services to their respective insurers while protecting the interests of policyholders.
