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IAI Actuarial Core Principles · Business Management · Actuaries Act, 2006 and IAI governance

A graduate in Pune asks a mentor what the Actuaries Act, 2006 mainly does. Which statement best describes its core purpose?

The Actuaries Act, 2006 provides for the regulation and development of the actuarial profession in India and constitutes the Institute of Actuaries of India as a statutory body. It does not deal with insurer licensing, solvency or product pricing, which sit under insurance law.

  1. AIt regulates the pricing of all insurance products sold in India
  2. BIt provides for the regulation and development of the actuarial profession in India and constitutes the Institute of Actuaries of India as a statutory bodyCorrect
  3. CIt sets the solvency margins that insurers must hold
  4. DIt governs the taxation of actuarial consultancy fees
  5. It licenses insurance companies to carry on business in India

Explanation

The Act is profession-focused legislation. It provides for regulation of the profession and establishes the Institute of Actuaries of India as a statutory body. Pricing, solvency and licensing of insurers fall under insurance legislation and the insurance regulator, not this Act.

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