Page 57 - Insurance Times February 2023

a) As required under the provisions of regulation 3(D) of sions of Regulation 3(C) of the captioned Regula-
IRDAI (Appointed Actuary) Regulations, 2022, the tions.
insurer shall submit an application for appointment of
This circular comes into force with immediate effect.
Appointed Actuary in the format (Form IRDAI-AA-2)
This is issued with approval of the Competent Authority.
provided in Annexure-1 to this circular along with
extract of Board Resolution and a copy of Appoint- Guidelines on issuance of File Reference
ment letter.
Numbers (FRN) to Cross Border Reinsurers
b) Every year, the insurer shall submit the renewed valid
Certificate of Practice (CoP) issued by Institute of Ac- 3rd January, 2023
tuaries of India (IAI).
1. Background:
c) As required under Reg. 3(F) of the above Regulations,
A. The Indian Insurance Industry is poised for growth
the insurer shall make a separate application in writ-
and the Authority has been taking various steps to
ing along with Annexure -1 for relaxation of eligibility
reduce the protection gap and develop the Insur-
conditions, if any.
ance industry. These steps are towards ease of
3. Obligations of the insurer: doing business and would also facilitate further de-
a) For the purpose of the Regulation 10(b) of IRDAI (Ap- velopment of the insurance industry.
pointed Actuary) Regulations, 2022, Life Insurers shall
B. The availability of well-developed reinsurance mar-
have at least two actuaries, in addition to Appointed
ket ensures that insurance products are available
Actuary, for pricing and valuation purposes, on or
at reasonable prices to the policyholders. The Cross
before 31st December, 2023.
Border Re-insurers (CBRs) play a significant role in
b) Similarly, General, Stand-alone Health Insurers and reinsurance market in providing reinsurance sup-
Reinsurers shall have at least one actuary, in addition port/capacity to the Insurers. The insurer has to
to Appointed Actuary, for pricing and valuation pur- ensure that CBRs meet, interalia, rating require-
poses on or before 31st December, 2024. ments as per IRDAI (Reinsurance) Regulations,
c) New insurers/reinsurers are exempted from the con- 2018 and shall have File Reference Number (FRN),
ditions under Para – 3(a) and 3(b) above for a period before placing any business with them. At present,
of two years from the date of issuance of certificate such FRNs are allotted on annual basis by the Au-
of registration. thority.
4. Existing Appointed Actuaries: C. After considering the feedback and also inputs from
a) The existing Appointed Actuaries as on date of notifi- the Task Force on Non-life Insurers and Reinsurers
cation of the said Regulations, appointed on relax- and the Working group on ease of doing business,
ation of eligibility condition in respect of subject spe- it has been decided to consider Auto-renewal of
cialization for a limited period, may continue to work FRNs by the Insurer itself, provided such CBRs meet
as Appointed Actuary beyond such limited period, pro- the required criteria as specified hereafter.
vided the Appointed Actuary complies with the cap- D. The Authority in exercise of the powers conferred
tioned Regulations. The insurer shall inform the Au- under Sec. 34 (1) of the Insurance Act, 1938 read
thority within 30 days before expiry of such limited with Reg. 4 (3) and 12 (3) of the IRDAI (Re-insur-
period in such instances along with fresh Form IRDAI- ance) Regulations, 2018, makes the following
AA-2. Guidelines.
b) The existing Appointed Actuaries, appointed with E. These Guidelines aim to streamline the regulatory
the support of a mentor actuary for a limited pe- process with respect to cross border reinsurers and
riod, may continue to work as Appointed Actuary will supersede existing Guidelines No. IRDA/R1/
beyond this period without mentor provided the GDL/MISC/015/01/2021 dated 22th January, 2021,
Appointed Actuary complies with all the provisions on CBRs.
of the captioned Regulations to work as Appointed
2. Allotment of FRN to CBRs
Actuary on standalone basis. The insurer shall in-
A) Application for New FRN:
form the Authority within 30 days before expiry of
i. The CBRs, who meet the eligibility criteria as
such limited period along with fresh Form IRDAI-
per the extant regulations, will qualify as ‘Eli-
AA-2.
gible CBRs’. The CBRs, who do not meet the
c) The existing Appointed Actuaries not falling under eligibility criteria, are regarded as ‘Non-Eligible
(a) and (b) above may continue as per the provi- CBR’;
The Insurance Times January 2023 51