The Insurance Regulatory and Development Authority (Irda) has called for actuaries to play a greater role in general insurance companies and has said financial viability of all products must be certified by the appointed actuary.
“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 and 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.
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.
Irda has asked the chief executive officers of general insurance companies to inform the regulator before September 15 that necessary arrangements are in place for the actuary to undertake the responsibilities. The new roles of the actuary will be effective from October 1, 2009.