In a recent circular IRDA (The Insurance Regulatory and Development Authority of India) has stated
“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.”
They have called for actuaries to play a greater role in general insurance companies and have mandated that appointed actuaries should be called for all board meetings. The actuary will have to help the insurer to ensure the availability of required solvency, must inform the board wherever deficiency is noticed in solvency margins and are responsible for informing the regulators if relevant action is not taken. The appointed actuary will also be responsible for preparing the financial condition report – guidelines will be issued by IRDA in the near future.
These new regulations will be effective from 1st October 2009 and necessary arrangements must be in place by 15th September.