IRDAI has issued an Exposure Draft dated June 3, 2022 on the proposed changes to the IRDAI (Appointed Actuary) Regulations, 2017 for seeking comments, suggestions of the stakeholders.
The key modification proposed in the existing Regulations are highlighted as follows:
1) The draft regulation proposes modifications in the eligibility, experience and age bar criteria for a person to become Appointed Actuary of the General Insurer:-
a) Experience:-
– Requirement of work experience is proposed to be increased to 9 years from 7 years
– Post fellowship experience has been increased to 4 years from 2 years..
– Minimum post fellowship experience in annual valuation of general insurer has been increased to 2 years from 1 year.
b) Age :- Age limit is proposed to be revised from 65 years to 70 years.
The existing Appointed Actuaries as on date of notification of this Regulation shall stand exempted from the above requirement.
2) 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.
3) It is emphasised that the insurer and Appointed Actuary shall endeavour to avoid disruption in submission of annual statutory returns arising from cessation of services of Appointed Actuary.
4) The exposure draft proposes modification in provisions pertaining to meetings that can be attended by the Appointed Actuary
5) Additional duties have been casted on Appointed Actuary such as identifying and monitoring the risk associated with solvency margin of the insurer, reporting the risk to Board of insurer pertaining to material concerns affecting the solvency margin of the insurer etc.
6) Appointed Actuary is obligated to report disciplinary proceedings initiated by any entity against him or her to the Authority within 7 days from the date of such initiation.
7) The provision pertaining to ensuring no conflict of interest has been extended to insurer as well apart from the Appointed Actuary
8) The draft regulation also proposes certain obligations on the insurer such as:
– providing adequate resources, support to Appointed Actuary;
– to have at least 2 actuaries to build up or develop sufficient actuarial expertise;
– to ensure the Appointed Actuary does not perform any other role like Chief Risk Officer;
– to ensure appointed actuary directly reports to CEO.
Source category: IRDAI
Attachments
- /2022/53_2022-06-03_FW__Exposure_Draft_-_IRDAI_(Appointed_Actuary)_Regulations_2022.pdf
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