The Insurance Regulatory and Development Authority (IRDA) wants actuaries to play a superior role in general insurance companies. The authority has said that the appointed actuary must certify financial capability of all products.
"We have reached a situation where the role of appointed actuaries has to be enhanced significantly so that general insurers are in a position to cope with public demand for non-life products and at the same time ensure the availability of solvency on a continuous basis," IRDA said in a recent circular.
The insurance regulator has mandated that appointed actuaries should be called for all board meetings. In addition, they must help the insurer to ensure the availability of required solvency of the company at all points of time. The actuary should also inform the board wherever deficiency is noticed in solvency margins and if actions are not taken the regulators must be informed, IRDA said.
Besides, the appointed actuary should also prepare the financial condition report of the non-life insurance company, guidelines for which will be issued by the regulator shortly. Meanwhile, the new roles of the actuary will be effective from October 1, 2009.
"We have reached a situation where the role of appointed actuaries has to be enhanced significantly so that general insurers are in a position to cope with public demand for non-life products and at the same time ensure the availability of solvency on a continuous basis," IRDA said in a recent circular.
The insurance regulator has mandated that appointed actuaries should be called for all board meetings. In addition, they must help the insurer to ensure the availability of required solvency of the company at all points of time. The actuary should also inform the board wherever deficiency is noticed in solvency margins and if actions are not taken the regulators must be informed, IRDA said.
Besides, the appointed actuary should also prepare the financial condition report of the non-life insurance company, guidelines for which will be issued by the regulator shortly. Meanwhile, the new roles of the actuary will be effective from October 1, 2009.
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