IRDAI asks insurers to have mentors for approved actuaries

Insurance Regulatory and Development Authority of India (Irdai) has said insurers should appoint mentor, to increase the supply of appointed actuaries.

Irdai is approving the appointment of actuaries who are fellow members of the IAI (but do not qualify with the relevant experience and / or other requirements), subject to appointment of experienced actuary as mentor.

The regulator said that the Mentor should  guide these Appointed Actuaries on day-to-day basis.

"Currently it appears that the mentoring may not be happening as envisage," said IRDAI. According to the new norms, the Mentor should be a Fellow of Institute of Actuaries of India (IAI). However, fellow from any other Institutes wherein the IAI have mutual recognition agreement will also be considered provided the Actuary declares his/ her intention to obtain Fellowship of IAI within next one year.

The upper age limit for the mentor will be 75 years. The regulator has said that the mentor should have at least 20 years of experience in the Insurance field out of which at least 10 years of experience should be post-qualification.

Here, the purpose for appointment of mentor is to support younger Appointed Actuary who is a Fellow of the Institute of Actuaries of India but does not comply with relevant experience/ other requirements  of the Appointed Actuary Regulations. The mentor will be applicable only when AA is full time employee of the company. If the company proposes to appoint AA on Consultancy basis, the Appointed Actuary himself / herself should be able to qualify all the criteria under Appointed Actuary Regulations

Insurers have been advised to strengthen the Actuarial function by employing enough Actuarial students. This will help the AA in getting detailed analysis required for performing various statutory duties. In the process, the students will also get practical experience necessary for taking up more responsible positions within the Industry in future.

The above guidelines are effective immediately. The existing arrangements of Appointed Actuaries and Mentors not complying with these guidelines may continue till 30 June 2016. From 1 July 2016, all the appointments of Appointed Actuaries and their Mentors will be in compliance with these guidelines.