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

Meera, a Fellow of the IAI, is asked by her employer's HR head why the Institute maintains a register of members and what it does in relation to the profession. Which of the following is a function that the Actuaries Act, 2006 gives to the Institute?

The Institute's statutory role is to regulate the actuarial profession in India, which includes prescribing qualifications, conducting examinations and maintaining the register of members. Licensing insurers, setting solvency margins, fixing premium rates and appointing auditors are not Institute functions; they belong to insurers or the regulator.

  1. ARegulating the profession of actuaries in India, including prescribing qualifications and maintaining the register of membersCorrect
  2. BSetting premium rates that insurers in India must charge on retail products
  3. CLicensing insurance companies to carry on life insurance business
  4. DDeciding the solvency margin that applies to all Indian insurers
  5. Appointing the statutory auditors of every insurance company

Explanation

The Act entrusts the Institute with regulating the profession and the education, examination and membership of actuaries, including keeping the register. Product pricing, licensing, solvency rules and auditor appointments belong to insurers or the insurance regulator, not the Institute.

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