PANEL OF ACTUARIES

• ~i(ffl~ m ~Pt~1'1cfi ~ ffl ~ INSURANCE REGULATORY AND irJai DEVELOPMENT AUTHORITY OF INDIA Cir No: IRDA/ACT/CIR/MISC/228/08/2020 Re: Panel of Actuaries Date: 31.08.2020 1. This has reference to the Cir No. IRDAI/ACT/CIR/MISC/180/07/2020 dated 7th July, 2020 inviting 'Expression of Interest' from eligible Actuaries for enlisting in the Panel of Actuaries. 2. This Circular repeals Cir No. IRDA/ACT/MISC/MISC/066/05/2018 dated pt May, 2018. 3. Reference of Cir. No. IRDA/ACTL/MISC/MISC/074/03/2017 dated 31.03.2017 under Clause 6.1 of the Circular No. IRDA/ACT/GDL/MISC/194/08/2017 dated 17th August, 2017 shall be read as Cir No. IRDA/ACT/CIR/MISC/229/08/2020 dated 31.08.2020. 4. In case an insurer is not able to appoint an Appointed Actuary satisfying eligibility conditions as stipulated in the extant Regulations and other applicable norms, the insurer can use services of an Actuary of relevant segment from the "Panel of Actuaries", as notified by the Authority from time to time, for the purpose of estimation of reserves, calculation of solvency margin and preparation of actuarial reports which are normally required at the end of every financial year and at the end of a quarter as the case may be, under the current norms as well as vetting and certification of products to be filed by the insurer. However, the Panel of Actuaries shall not be interpreted as a permanent arrangement in place of Appointed Actuary. Period of utilization of services of a Panel Actuary is subject to the provision of Regulation 5 of the IRDAI (Appointed Actuary) Regulations, 2017 as amended from time to time. For the purpose of the current Panel of Actuaries, please refer Cir No. IRDA/ACT/CIR/MISC/229/08/2020dated31.08.2020. 5. A Panel Actuary shall not be involved in the annual statutory valuation of an insurer for more than two consecutive financial years. 6. A Panel Actuary for Health Insurance can be involved, during any quarter of a financial year (FY) in the valuation of at the most one standalone Health Insurer. 7. A Panel Actuary for General Insurance can simultaneously be involved, during any quarter of a financial year (FY) in the valuation of at the most: 7.1. One stand-alone Health Insurer (including other mono-line specialised insurers, like Agriculture /Export Credit Insurance) and 7 .2. One General Insurer an~ Page 1 of 3 ~"4". 115/1 , ~~. iiliiifi(ll-1~-sl, ~ -500 032, 'lTTTTf I Survey No. 115/1, Financial District, Nanakramguda, Hyderabad-500 032, India (5) : +91-40-2020 4000 ~ : www.irdai.gov.in (5) : +91 -40-2020 4000 Website : www.irdai.gov.in 7.3. General Insurance business of one Reinsurer (including general insurance business of a foreign reinsurer's branch office). 8. Further, in case of life insurance, a Panel Actuary for life insurance can simultaneously be involved, during any quarter of a financial year, in the valuation of at the most: 8 .1. One Life Insurer and 8.2. Life insurance business of one Reinsurer (including Life Insurance business of a foreign reinsurer's branch office) 9. The Panel Actuary will not give opinion on more than ten products including riders and/or add-ons during any financial year. 10. The insurer shall inform the Authority on selection of an Actuary along with scope of the work, time schedule for completion of the work and professional fees payable by the insurer to the Panel Actuary and updated information about the Panel Actuary in the prescribed format: IRDAI-PA2. The insurer shall need prior approval of the Authority before utilizing the services of a Panel Actuary. 11. Panel Actuary shall update the Authority in writing of any changes in any of the information submitted as per the fonn IRDAI-PA2 under Cir No. IRDAI/ACT/CIR/MISC/180/07/2020 dated 7th July, 2020 on 'Expression of Interest'. 12.The Authority may also advise any Panel Actuary to investigate financial position of any insurer or to give opinion on valuation of the insurer or any other actuarial aspect related to any insurer including opinion on products of the insurer. The Panel Actuary shall not refuse the work allotted to him/her by the Authority. 13. Work allotted to the Panel Actuary is expected to be completed within the stipulated time decided by the insurer in concurrence with the Authority and/or by the Authority. The stipulated time line may vary depending on the nature and complexity of the work as well as business profile of the insurer and will be communicated to the Panel actuary while allotment of work. Non completion of work within the stipulated time line shall be viewed seriously. 14. The Panel Actuary shall work within the purview of extant legal and Regulatory framework covering relevant and applicable Act, Regulations, Guidelines, Circulars or any directions issued by the Authority which includes amongst others, the IRDAI (Appointed Actuary) Regulations, 2017. The Panel Actuary shall work in compliance with the professional guidance and standards as stipulated by the Institute of Actuaries of India from time to time. Non adherence to the above mandates shall be viewed seriously. In such cases, the Authority reserves the right to take appropriate action against the Panel Actuary as it may deem f~ Page 2 of 3 15. There should not be any conflict of interest between duties and functions of Panel Actuary and duties and functions of any other position held by him/ her during his/her tenure as a panel Actuary. 16. The Panel Actuary should have access to sufficient actuarial resources to carry out the regulatory and statutory work such as, works currently being carried out by the Appointed Actuaries for certification of new products, reserves and solvency margin ratio and preparation of Actuarial returns for submission to the Authority. 17. In order to remove any doubts or difficulties that may arise in the application or interpretation of any of the provisions under this Circular, the Chairperson of the Authority may issue appropriate clarifications as may be deemed necessary. 18. This Circular is issued in terms of the power conferred under section 14(2)(e) of the IRDA Act 1999 as amended from time to time and shall come into force with immediate effect. 19. This is issued with approval of the competent Authority. (S P Chakraborty) General Manager (Actuarial) Page 3 of 3