Under the IRDA (Appointed Actuary) Regulations, 2000, the Appointed Actuary holds a pivotal role in maintaining the solvency and financial health of an insurance company. What are the matters upon which an Appointed Actu

IRDAI has brought out detailed Regulations on Appointed Actuary vide IRDA (Appointed Actuary) Regulations, 2000, detailing the procedure for his appointment, qualifications, powers along with his duties and obligations. The Regulations also stipulate that prior approval of the Authority shall be taken for the appointment of the Appointed Actuary. The Appointed Actuary shall provide professional advice or certification to the board with regard to:- Estimation of technical provisions in accordance with the valuation framework setup by the insurer Identification and estimation of material risks and appropriate management of the risks Financial condition testing Solvency margin requirements Appropriateness of premiums (and surrender value) Allocation of bonuses to with-profit insurance contracts Management of participating funds (including analysis of material effects caused by strategies and policies) Product design, risk mitigation (including reinsurance) and other related risk management roles. While the areas of advice/certification listed above are with specific reference to life companies, the appointed actuaries in case of non-life insurance companies shall provide such advice/ certification to the extent applicable. In order to facilitate the Appointed Actuary in discharging his/her responsibilities, he/ she shall at all times be provided access to the information as required.