India needs more actuaries as it moves to risk-based capital, IFRS convergence, says Irdai chairman Ajay Seth

Ajay Seth, Chairperson of IRDAI

India needs more qualified actuaries to strengthen financial protection, especially as its moves towards adopting risk-based capital and international financial reporting standards, Insurance Regulatory and Development Authority of India (Irdai)  chairman Ajay Seth said on February 24, flagging a capacity gap in the insurance sector as it a moment of critical change.

Addressing the 25th Global Conference of Actuaries, Seth said the shortage of actuarial talent poses a challenge as India strengthens its financial protection architecture and aligns with global regulatory and accounting frameworks.

He pointed out that while the United States has more than over 40 fellow actuaries per million population and the United Kingdom more than 250, India has fewer than one per million. The membership of the Institute of Actuaries of India has declined from around 12,000 in 2011 to approximately 9,700 in 2025.

“This gap is urgent,” he said, calling for sustained capacity building as the sector prepares for the transition to risk-based capital (RBC) norms and convergence with international financial reporting standards (IFRS).

Speaking on “Actuarial Pathways to Viksit Bharat: Managing Risk for Social and Economic Growth”, Seth said actuaries will play a central role in India’s journey toward becoming a developed nation by 2047.

Traditionally associated with life insurance and pensions, the actuarial profession has expanded into general insurance, health insurance, banking, investment management and enterprise risk management. With the rise of big data, artificial intelligence and advanced analytics, actuarial science is increasingly moving from structured historical datasets to real-time data interpretation.

This evolution, he said, opens new possibilities for accurate risk assessment and innovative product design.

Seth also highlighted structural concerns within the insurance sector. Life insurance in India continues to be perceived largely as a savings instrument rather than a pure risk protection tool. However, real returns on savings-oriented life insurance products remain under pressure when adjusted for inflation.

At the same time, rising medical costs are straining health insurance affordability and sustainability.

In general insurance, companies face growing exposure to climate change, natural disasters and cyber risks. Addressing these risks requires careful product design, sound pricing, prudent reserving and long-term strategic planning, areas where actuarial expertise is critical.

Legislative and regulatory changes have also widened the statutory responsibilities of actuaries. The recently enacted Sabka Bhima Sabki Raksha Act, he said, has further strengthened the insurance ecosystem and enhanced the formal role of actuaries.

Beyond technical expertise, Seth emphasised the social responsibility of the profession, describing insurance not merely as a financial product but as a social safety mechanism.

“In a country as diverse as India, risk manifests in many forms such as health, climate, longevity, cyber and systemic risk. Actuaries are uniquely positioned to model these uncertainties and design solutions that are both financially viable and socially impactful,” he said.