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

Meera, a Fellow of the Institute, is asked by a colleague which of the following is a function the Institute performs as a statutory professional body under the Actuaries Act, 2006. Which one is it?

Under the Act the Institute grants membership and sets professional standards and a code of conduct for its members, alongside education and discipline. Product approval, agent licensing, interest rate setting and company audits belong to other bodies, not to the actuarial institute.

  1. AApproving the product filings of general insurers
  2. BGranting membership and laying down professional standards and a code of conduct for membersCorrect
  3. CFixing interest rates on government securities
  4. DAuditing the annual accounts of listed companies
  5. Licensing insurance agents and brokers

Explanation

The Institute admits members, conducts education and examinations, and prescribes professional conduct and standards, and can take disciplinary action. Product approval and agent licensing sit with the insurance regulator, interest rates with the central bank and government, and company audit with chartered accountants.

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