A study entitled “Analysis of the Standard Development Procedure and Proposing Actuarial Standards of Iran” has been recently conducted at IRC that is aimed at examining the development procedures of relevant international and national standards and how to apply them in developing actuarial standards for Iran, according to PRIAO, IRC.
The study report reviews the types of standards, ISO standard development procedure, Iranian national standards development procedure, accounting standards development procedure, and national petroleum standards development procedure. The framework and the model of developing actuarial standards in Iran, U.S, and Canada were the other foci of the report.
According to the results of the study report, the initial phase of developing actuarial standards in Iran is forming a technical committee that is suggested to include Central Insurance of I.R. Iran (Insurance Supervisory and Regulatory Authority of I.R. Iran), Actuarial Society of Iran, Iran Insurers Syndicate as the representative of the insurance companies, Insurance Research Center and some of the insurance chartered professionals.
The study also suggests that after the endorsement of Central Insurance of I.R. Iran, the sole legal entity to advise and approve such standards (based on Bylaw No. 78 of High Council of Insurance), IRC by conducting a research project, create the model and the framework required for developing actuarial standards and thoroughly study the actuarial standards of the selected countries (without going into their details) and finally, given the present condition of the insurance industry, propose the prerequisites for developing such standards in Iran. The latter, then, must be employed in the proposed technical committee.
The study report recommends the following steps as the next phase of developing actuarial standards in Iran: forming a subcommittee for each standard, creating a taskforce for formulating the initial draft for each standard, finalizing the standard draft after the endorsement of two third of the technical committee members and passing the final draft for advice and approval. Since the advice of the standard will be finally passed on by Central Insurance of I. R. Iran, the study suggests that this authority directs the whole procedure of standard development. Based on the other results of the study, the actuarial standard development model is an “external regulation” type and it is highly recommended that the Central Insurance of I. R. Iran as the regulatory authority, with all the other beneficiaries, uses a “mixed model” for developing standards.
The Persian full text of the research project is available at this link.