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

Ravi, a member of the IAI, is asked by a colleague what the Institute is empowered to do for the profession in India. Which of the following is a function of the Institute under the Actuaries Act, 2006?

The IAI regulates the actuarial profession: it prescribes qualifications and examinations, maintains the register of members and exercises disciplinary control over them. Licensing insurers, fixing premiums, approving company accounts and setting salaries are outside its statutory functions.

  1. ASetting premium rates for all life insurers in India
  2. BRegulating the profession of actuaries, including prescribing qualifications and maintaining the register of membersCorrect
  3. CApproving the annual accounts of every insurance company
  4. DLicensing insurance companies to carry on business
  5. Fixing the salaries of actuaries employed by insurers

Explanation

The Act gives the Institute the task of regulating the profession: it prescribes qualifications, conducts examinations, maintains the membership register and exercises disciplinary control. Licensing insurers and approving their accounts belong to the insurance regulator and other bodies. Premium rates and salaries are not set by the IAI.

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