Section 5 in Insurance Regulatory and Development Authority of India (Appointed Actuary) Regulations, 2022
5. Ensuring adequacy of reinsurance arrangements;
X. Contributing to the effective implementation of the risk management system;Xl. Complying with the provisions of section 2] of the Act in regard to further information required by theAuthority;Xi. In addition to the above, the duties of an Appointed Actuary of an insurer carrying on life insurance businessshall include:a. Certifying the actuarial report and abstract and other returns as required under section |3 of the Act;b. Complying with the provisions of the section !l2 of the Act in regard to recommendation of interim bonus or bonuses payable by life insurer to policyholders whose policies mature for payment by reason of death or otherwise during the inter-valuation period;c. Rendering actuarial advice in respect of expenses of management of the insurer;d. Ensuring that the premium rates of the insurance products are fair;e. Certifying that the mathematical reserves have been determined in the manner prescribed in the extant provisions of Insurance Regulatory and Development Authority of India (Assets, Liabilities and Solvency Margin of Life Insurance Business) Regulations, 20l6 and taking into account the Guidance Notes /Actuarial Practice Standard issued by the Institute of Actuaries of India and any directions given by the Authority;f. Ensuring that the policyholders’ reasonable expectations have been considered in the matter of valuation of liabilities and distribution of surplus to the participating policyholders who are entitled for a share of surplus;Submitting the actuarial advice in the interests of the insurance industry and the policyholders;geh. Coordinating the calculation of mathematical reserves;i. Ensuring the appropriateness of the methodologies and underlying models used, as well as the assumptions made in the calculation of mathematical reserves;j. Assessing the sufficiency and quality of the data used in the calculation of mathematical reserves;k. Informing the Board of insurer about the reliability and adequacy of mathematical reserves;जा, In addition to (i) to (xi) above, the duties of the Appointed Actuary of the insurer carrying on general insurance business or health insurance business include:a. Ensuring that the premium rates of the insurance products are fair;Certifying that claims reserves including reserves for incurred but not reported claims (IBNR) and other reserves (including reserves for incurred but not enough reported claims (IBNER) and premium deficiency reserve (PDR)) have been determined using actuarial principles and in the manner prescribed in the extant provisions of Insurance Regulatory and Development Authorityof India (Assets, Liabilities and Solvency Margin of General Insurance Business) Regulations, 206;c. Rendering actuarial advice in respect of expenses of management of the insurer;Coordinating the calculation of reserves for IBNR and other reserves (including reserves for IBNER and PDR);e. Assessing the sufficiency and quality of the data used in the calculation of reserves for IBNR and other reserves including reserves for IBNER and PDR;f. Informing the Board of insurer about the reliability and adequacy of reserves for IBNR and other reserves including reserves for IBNER and PDR;XIV. informing the Authority in writing of his or her opinion, within a reasonable time,a. any contravention of the Act or any other acts by the insurer is of such a nature that it may affect significantly the interests of the Policyholders or beneficiaries of policies issued by the insurer;b. whether the directors of the insurer have failed to take such action as is reasonably necessary to enable him or her to exercise his or her duties and obligations under these Regulations; orc. whether an officer or employee of the insurer has engaged in conduct in order to prevent him or her exercising his or her duties and obligations under these Regulations.If an Appointed Actuary is disqualified to act as an Actuary, he or she ceases to exist as Appointed Actuary forthwith;while carrying out his or her duties and obligations, the Appointed Actuary shall pay due regard to generally accepted actuarial principles and practices;the Appointed Actuary shall inform the Authority of any disciplinary proceedings initiated against him or her by any entity within seven days from the date of such initiation.Conflict of interest --a. The Appointed Actuary shall function in accordance with these Regulations, and he or she shall not function in any other capacity which could result in conflict of interest in performing his or her role as Appointed Actuary in accordance with these Regulations;The insurer and the Appointed Actuary shall comply with the provisions of Regulation 9(a) above at all times during his or her tenure as Appointed ActuaryObligations of the insurera.b.The insurer shall provide adequate resources to the Appointed Actuary;In order to build up or develop sufficient actuarial expertise, life insurers shall have at least two actuaries and General/Standalone Health insurers shall have at least one actuary in addition to Appointed Actuary for pricing and valuation purposes within such period as notified by the Authority from time to time;The insurer shall ensure that different functions of the insurer provide adequate support to the Appointed Actuary in discharging his or her duties and obligations;The insurer shall ensure that the Appointed Actuary does not simultaneously perform the role of Chief Risk Officer of the insurer defined as per the extant provisions of Corporate Governance Guidelines issued by the Authority. The Chief Risk Officer however may preferably be an Actuary independent of theAppointed Actuary.The insurer shall ensure that the Appointed Actuary reports directly to Chief Executive Officer of the insurer.Applicability to reinsurance business -These Regulations shall apply to reinsurers carrying on reinsurance business in India except in case of a foreign insurer engaged in re-insurance business through a branch established in India.Power of the Authority to issue clarifications etc.In order to remove any doubts or difficulties that may arise in the application or interpretation of any of the provisions under these Regulations, the Chairperson may issue appropriate clarifications or guidelines as deemed necessary.
