Insurance companies that plan to introduce new products in India will soon need the approval of a panel of actuaries before they can sell them to the public.
The Insurance Regulatory and Development Authority of India (Irdai) said in a circular that the panel of actuaries to be employed by insurers should meet certain criteria.
Also, the tenure of each panel will be for three years from April 1, 2017 to March 31, 2020.
Life and general insurance companies will have separate teams of actuaries, the regulator said.
Generally, the scope of work will include an estimation of reserves and solvency margin at the end of the financial year and preparation of reports that are normally required under current regulations.
Irdai said that the actuary should have at least five years of post-qualification experience in the relevant field and must be accredited by a body like the Institute of Actuaries of India.
Currently, Irdai examines the product features and pricing of new policies before allowing these products to be sold in the market.
Source: InsuranceAsia News