Asset shares are widely used in the management of participating business globally. As part of its Non-linked Insurance Products regulations, the Insurance Regulatory and Development Authority (IRDA) has made it mandatory for life insurance companies to calculate asset shares for participating business.
Recently, Milliman carried out a survey of the Appointed Actuaries of life insurance companies in India, to assess the industry’s readiness for asset shares and to assess any emerging market practices in respect of the application of asset shares. Our survey revealed that practices are still evolving, but that significant progress has been made. This e-alert presents the results of our survey.