Page 41 - Life Insurance Today May 2016
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IRDAI receives applica- No new products if there is no new Actuary: IRDAI
tions from 10 (re)insurers
for start up in India IRDAI has tightened norms relating to approval, also require inputs for cer-
Appointed Actuaries (AA) in insurance tification from actuaries.
The Insurance Regulatory and De- companies. If there is no appointed
velopment Authority of India has re- actuary, the regulator will not approve For ensuring uniformity in appointing
ceived applications from 10 new new products. mentors as well as to en-
players to start operations in the sure that the companies
country. "The regulator is currently "If there is no appointed and the appointed actuar-
processing applications of 10 play- actuary for a considerable ies get full benefit of
ers consisting of insurers and re-in- period of time, say, more knowledge and expertise
surers," said V R Iyer, member -fi- than one year, the compa- of the mentor, IRDAI has
nance and investment, IRDAI. nies will not be allowed to transact
new business,'' Pournima Gupte, put in place a set of guidelines.
Aditya Birla Group is setting up a Member (Actuary), IRDAI, said in a cir-
health insurance company in part- cular sent to the insurers. For companies that do not have an
nership with South African firm appointed actuary, an estimation of its
MMI Holdings, market sources said. Actuaries play the crucial role of main- financial position at the end of every
The global re-insurers who have taining solvency position of insurance financial year may be made through
applied for licences include Munich companies. Other aspects of the insur- one of the actuaries from the panel,
Re, Swiss Re, Hannover Re, SCOR, ance business, such as new product which needs to be appointed in line
and Excel ILSE. with the guidelines, Gupte said.
IRDAI to appeal Govt. for Experienced actuaries to guide budding actuaries:
inclusion of Public insur-
ers in PMFBY IRDAI
The Insurance Regulatory and Devel- IRDAI has given the green signal for ary at Bajaj Allianz Life Insurance, said,
opment Authority of India will take up appointing actuaries without relevant "Young actuaries would require guid-
the matter of non-inclusion of public experience, provided they operate un- ance in handling various issues related
sector general insurance companies der the supervision of an experienced to products, solvency, and matters
in the Pradhan Mantri Fasal Bima actuary. IRDAI said these 'mentors' pertaining to liabilities and assets.
Yojana (PMFBY) with the government should guide the actuaries thus ap-
of India. Nilesh Sathe, member-life, pointed on day-to- Having an experi-
IRDAI, said the regulator will take up day basis. enced actuary as
the issue with the government as mentor will help ac-
about 300,000 agents of state-owned According to R M tuary aspirants to a
general insurers could play a crucial Vishakha, managing great extent."
role in popularising the scheme in director and CEO of
rural India. IndiaFirst Life Insur- According to the
ance, this arrangement will motivate new norms, the
G Srinivasan, Chairman and Manag- more youngsters to come on board 'mentor' should be a fellow of IAI. Fel-
ing Director, New India Assurance, and gain practical experience. lows from any other institutes with
said, "Our branch network and which IAI has mutual recognition
people on ground are very high. To be a qualified actuary, an individual agreement will also be considered,
This can make a big difference to needs to be accredited by a body like provided the actuary declares his or
the scheme in rural areas. We are the Institute of Actuaries of India (IAI). her intention to obtain an IAI fellow-
hopeful that we would be made a This is done after the candidate clears ship within one year.
part of the scheme". The govern- all 15 papers in actuarial science and
ment is planning to spend Rs. 5,500 gets a fellowship. Companies also ap- Insurers have been advised to
crore on the crop insurance scheme point individuals who have passed 10 strengthen the actuarial function by
that was announced earlier. papers as an associate in the actuarial employing enough actuarial students.
department. In the process, the students will also
Life Insurance Today get practical experience necessary for
Supporting the concept of mentoring, taking up more responsible positions
Saisrinivas Dhulipala, appointed actu- in future.
May 2016 41
