IRDAI (Appointed Actuary) Regulations 2022

IRDAI vide circular ref.no. IRDAI/ Reg/5/184/2022, dated December 05, 2022 has issued “IRDAI (Appointed Actuary) Regulations, 2022” (“Regulations”)

Major highlights of the Regulations are as follows:

• The Regulation shall come into force from the date of its publication in the Official Gazette.
• The Regulation shall be reviewed once in every 3 years from the date of its publication unless a review, repeal or amendment is warranted earlier.
• Experience and age criteria for a person to become Appointed Actuary of a General Insurer is as follows:- Experience:- Requirement of work experience is 9 years in the area of General Insurance Post fellowship experience shall be 4 years. Minimum post fellowship experience in annual valuation of general insurer shall be 2 years. Minimum 3 years of experience in middle or senior level management role. Age :- Age limit shall be 70 years.
• The existing Appointed Actuaries as on date of notification of this Regulation are eligible to continue as Appointed Actuary of the insurer.
• If the insurer is unable to appoint an Appointed Actuary, relaxations with respect to eligibility criteria may be granted by the Authority upon request of the insurer. However, no relaxation shall be granted with respect to the following conditions:
• Appointed Actuary to be a Fellow member in accordance with Actuaries Act, 2006
• Appointed Actuary should not have committed any professional or other misconduct.
• Appointed Actuary to possess a Certificate of Practice issued by the Institute of Appointed Actuaries of India
• An insurer shall seek the approval of the Authority for the appointment of Appointed Actuary, submitting the application form as prescribed. The Authority shall, within thirty days from the date of receipt of application, either accept or reject the same
• The relaxation for carrying business without an Appointed Actuary for a period not exceeding one year may be granted by the Authority upon request of the insurer.
• The Regulation prescribes various Powers, Duties and Obligations of the Appointed Actuary
• Appointed Actuary shall render advice to the management of the insurer with respect to product design and pricing, insurance contract wording, investments and re-insurance
• Appointed Actuary shall be responsible for identifying and monitoring the risk associated with solvency margin of the insurer, reporting the risk to Board pertaining to material concerns affecting the solvency margin of the insurer etc.
• Appointed Actuary is obligated to report disciplinary proceedings initiated by any entity against him/her to the Authority within 7 days from the date of such initiation.
• The provision pertaining to conflict of interest has been extended to insurer as well as the Appointed Actuary.
• General insurers shall have at least 1 actuary in addition to the Appointed Actuary to build and develop sufficient actuarial expertise
• Insurer shall ensure that the Appointed Actuary does not simultaneously perform the role of Chief Risk Officer (CRO), the CRO however may preferably be an Actuary independent of the Appointed Actuary
• Insurer shall ensure that the Appointed actuary reports directly to CEO.

Source category: IRDAI

Attachments

• /2022/135_Formation_of_Consultative_Committee_on_Investment2.pdf