The concept of peer review is gaining acceptance among
professionals. In the insurance field, the Actuarial Society
of India (ASI) has issued a guidance note on actuarial
peer review in life and reinsurance companies.
to the note, ASI recommends that internal or external
peer review should be a standard element of professional
practice for all annual valuations carried out by an appointed
actuary of a life or reinsurer.
object of peer review/actuarial audit is to see whether
the appointed actuary has performed his work in conformity
with the professional conduct standards, guidance notes
and regulatory/statutory requirements.
to ASI, the actuarial audit is a validation process after
the appointed actuary has signed the relevant documents.
The audit could be done by an external/internal actuary
or by a team of actuaries.
ASI welcomes the application of peer review in other areas
if an appointed actuary wishes so. Similarly, it is for
the appointed actuary to determine whether internal or
external peer review is appropriate.
says the appointed actuary should have the freedom to
choose the internal peer reviewer who is a professionally
qualified actuary with sufficient experience and independence.
The peer reviewer can delegate some part of his work but
the ultimate responsibility lies with him.
to ASI, the appointed actuary should state in his report
whether the work has been subject of peer review.
an insurer does not have a capable actuary to do the peer
review work then the appointed actuary could arrange for
external peer review. Differences between the peer reviewer
and the appointed actuary should be resolved before the
latter makes his final report. In case of a serious difference,
the peer reviewer should state that in his report.
says the peer review report need not be submitted to the
Insurance Regulatory and Development Authority (IRDA).
In exceptional circumstances, IRDA can summon the peer