Thaindian News

Chennai, May 24 (IANS) The Insurance Regulatory and Development Authority (IRDA) is finding it difficult to get replacements for its actuaries, with two of its senior experts in the area retiring next month, sources at the watchdog said.

Actuaries are experts in assessing the financial impact of future events, which is of prime importance in the insurance business. They analyse the past and forecast the future and place the results in financial terms to help in decision-making.

The current member-actuary R. Kannan is set to retire June 1 and executive director-actuary K. Subrahmanyam by the end of the same month.

“The finance ministry has appointed a three-member search panel to short list suitable professionals for the post of member-actuary. This panel has now sought more time,” a source close to the development told IANS.

The panel is headed by Vepa Kamesan, managing director of the Institute of Insurance and Risk Management in Hyderabad. Liyaquat Khan, president of the Institute of Actuaries of India, and Prof. B. Kamaiah of the University of Hyderabad are its members.

Kamesan was not available for comment.

Actuaries at the watchdog, apart from looking at the regulatory aspects, also approve the policies filed by insurers.

Early this year, the government had advertised inviting applications for the position and it is reliably learnt that no actuary sent in his or her application till date, which necessitated the setting up of a search committee.

The committee was set up early April and was given six weeks’ time to complete its task. The central government appoints the whole-time members at the insurance regulator’s office.

An actuary in a life insurance firm told IANS that the main reason for the vaccum could be salary. “The salary for member-actuary is Rs.250,000 per month. But insurance firms pay double that to their junior actuaries.”

This apart, potential candidates in the age group of 45-50 also may not want to take up a regulatory position at this stage in the career, as it may affect their career prospects once the contract ends.

“After retirement as a regulator, an actuary cannot accept a job in any other insurance company for two years. If the government relaxes this regulation, young actuaries may consider applying,” said a senior actuary in a life insurance company.

Another suggestion is to look for professionals from other global institutes.