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IAI Actuarial Core Principles · Business Management · Activities of the Institute of Actuaries of India

A student asks why the IAI has committees and boards, such as one for education and one for professional conduct, instead of the Council handling every matter directly. Which reason is most sound?

Committees let the Institute assign specialised tasks such as education or conduct to groups with relevant expertise, improving efficiency, while the Council keeps overall responsibility. Delegation does not remove accountability, and committees neither set premiums nor act as agents of IRDAI.

  1. ADelegating specialised work to committees allows focused expertise and efficient decision-making while the Council retains overall responsibilityCorrect
  2. BCommittees are required so that the Council can avoid any responsibility for outcomes
  3. CCommittees exist only to set insurance premium rates for the market
  4. DCommittees replace the need for any members to vote or take part
  5. Committees are created by IRDAI to supervise the Council's budget

Explanation

Committees give specialist focus and spread workload, and the Council still holds overall accountability. Delegation does not remove responsibility, and committees do not set market premiums or serve as IRDAI's supervisory arm.

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