For the 300 plus insurance products sold in the country, there are only 375 fully qualified actuaries in the country. With a tough criteria to clear 15 papers of actuarial science, these individuals are responsible for the most crucial aspect of insurance, which is product pricing.
Every insurance company is required to have a full-time appointed actuary who is responsible for assessing the risks associated with writing a business. He/she then ascertains whether this risk can be taken on the insurer’s books and what rate of premium should be charged.
So what the end customer pays and whether or not an individual is to be given insurance is decided by the actuary depending on the risk-taking ability of the company. Every time a price revision is done in a product, it is done on the sole-advice of the actuarial team.
To be a qualified actuary, an individual needs to be accredited by a body like the Institute of Actuaries of India. For this, the candidate needs to clear all 15 papers in actuarial science and following this, they gets a fellowship.
However, since there is a dearth of fully-qualified actuaries, insurers also appoint individuals who have passed 10 papers as an associate in the actuarial department.