As per the bill, the Insurance Regulatory and Development Authority (Irda), would continue to remain a regulatory body while the Institute of Actuaries of India would be an expert body dealing with the actuarial profession, including professional misconduct while determining pricing of the products, benefits and premia.
The institute would also create necessary facilities for growth and training of aspiring actuaries besides conducting examinations for the profession. It also makes provision for an appellate authority, a tribunal, a quality review board to achieve its objective. The bill proposes to regulate the profession of actuaries through an enactment on the same lines as the professions of chartered accountants, cost and works accountants and company secretaries.
There are six nationalised and 21 private sector insurance companies in the domestic market. With the opening of the insurance sector to private players, it has become incumbent on the Centre to formulate a legislation to regulate the business. The rule of actuary has gained importance as more companies are foraying into the sector, a official said, adding: Some uniformity is necessary to give a level-playing to actuarials vis-a-vis other businesses. Besides, the Centre has to guard the interests of the people.
The insurance companies, have shown mixed reaction over the issue. It is too early to comment on the proposal without studying the finer aspects, Aviva Life Insurances managing director Stuard Purdy, said. He said that with the institute coming into being, the problem relating to shortage of actuaries in the domestic market would be addressed. The performance of the Actuarial Society of India has been very satisfactory, he added.
M Ramadoss, CMD, Oriental Insurance, said that the institute must focus on increasing the number of actuaries in the country. ASI members have shown discontent over the issue. This move just goes on to show that the Centre wants to regulate the industry, a senior member stated.