Irdai to form actuary panels for life, general insurers

Tenure fixed for each panel is three years, beginning from April this year

General and life insurance companies will be able to engage actuaries as the regulator Irdai will soon form a panel of such analysts.

The Insurance Regulatory and Development Authority of India (Irdai) has invited bids from actuaries and firms employing such analysts to form a panel of actuaries.

Separate panels will be formed for life and general insurance(including health insurance).

The tenure of each panel will be for a period of three years from 1 April 2017 to 31 March 2020, said the bid document.

The panel would be required to give an opinion on products filed by an insurer. Further, the regulator may ask any actuary panel to investigate financial position of any insurer or to give an opinion on valuation.

"If the insurers are not able to appoint an actuary, they can use services of any actuary from the panel for estimation of reserves, solvency margins and preparation of reports. The panel can be used for vetting of products as well, requests for which can be filed by the insurer," the Irdai said.

Appointed actuaries (AAs) are entrusted with the responsibility of maintaining solvency position of the company. There are other jobs such as new product approval, which need inputs and certification from AAs.

The panel will be engaged in the estimation of reserves and solvency margin at the end of financial year as well as preparation of reports which are normally required under the current regulations and guidelines in respect of one or more insurance companies.