India needs more qualified actuaries, says IRDAI chairman

Mumbai: The insurance sector is facing a critical talent gap just as risks from inflation, healthcare costs and climate change intensify, said Insurance Regulatory and Development Authority of India (IRDAI) Chairman Ajay Seth stressing on the urgent need to strengthen actuarial capacity ahead of sweeping regulatory reforms.

“India needs more qualified actuaries to strengthen financial protection,” Seth said, pointing out that the country has “fewer than 1 per million” people, compared with more than 40 in the US and over 250 in the UK.

The shortage has deepened over time, with membership of the Institute of Actuaries of India declining from around 12,000 in 2011 to about 9,700 in 2025.


“This gap is urgent,” he said, particularly as India moves towards adopting risk-based capital norms and converging with international financial reporting standards. The regulator is working on implementing the risk-based capital framework and IFRS accounting for insurers.

The shortfall comes when more changes are expected post the newly enacted Sabka Bima, Sabki Raksha Act.

Seth said that this is significant at a time when the industry itself faces pressing challenges. ‘For many citizens, life insurance is perceived primarily as a savings vehicle rather than a risk protection tool,” he said. “However, real returns on savings-oriented life insurance products remain a concern when adjusted for inflation. Rising medical costs pressure health insurance affordability and sustainability. General insurance faces increasing exposure to climate risks, natural disasters, and cyber risks.”

Addressing these challenges, he said, requires careful product design, robust pricing, prudent reserving and long-term strategic planning, areas where actuarial expertise is critical.