The Actuary International July 2015

Actuaries on the move

Nigeria calling

Great strides in US pensions

Be aware of frequently changing immigration rules in a global employment market, says Tim McMahon

Laura Llewellyn-Jones looks at the benefits and risks of working in the pensions and insurance sectors

Matthew Seymour compares pension risk management in the US to that in the UK

JULY 2015 theactuary.com

international actuary The magazine of the actuarial profession

Market movement What’s in a destination?

IN ASSOCIATION WITH

p33_supplement_cover_july_2•CT.indd 35

24/06/2015 10:12

The International Issue Contents

Actuary profiles Q&A: United Kingdom Jonathan Allenby had a varied career before deciding to become an actuary

Q&A: India Roopal Shard’s favourite pastimes include reading about theoretical physics, and singing

Q&A: Greece Nikolaos Kefallinos enjoys music and arts, and playing basketball with friends

ONLINE Q&A: The Netherlands Pieter Tjerkstra

Q&A: Singapore Joanne Gyte

Q&A: United States of America Jessica Hussong

Q&A: South Africa Francis Kocks

Q&A: Brazil Leonel Rodrigues Lopes Junior

Q&A: Spain El Lemdani Mustapha

Q&A: South Africa Joshay Harkoo

Q&A: India Carl Anthony

and many more...

Editor Kelvin Chamunorwa editor@theactuary.com International features editor Areti Kalkani features@theactuary.com Managing editor Sharon Maguire sharon.maguire@redactive.co.uk +44 (0)20 7880 6246 Display sales Vlad Harmanescu vlad@redactive.co.uk +44 (0)20 7324 2726 Recruitment sales Emmanuel Nettey emmanuel.nettey@redactive.co.uk +44 (0)20 7880 6234 Design / pictures Gene Cornelius / Akin Falope Sub-editors Kathryn Manning Caroline Taylor Production Rachel Young +44 (0)20 7880 6209

Circulation 25,331 (July 2013 to June 2014)

p34_35_supplement_Cribb.indd 34

A world to gain Chief executive Derek Cribb joined the IFoA in 2010. He has worked with IFoA staff and volunteers to turn the professional body into a modern, forward-looking organisation, putting it in a strong position to support its global membership. Five years on from the launch of a major strategy review and organisational restructure, he discusses the threats and opportunities facing the actuarial profession on a global scale

How has the external environment facing actuaries, and the IFoA, changed in the last five years?

That’s a big question to kick off with! It’s also something the IFoA’s council has been giving a lot of consideration to of late. A big change is the make-up of our membership. We have more members than ever before living and working outside of the UK. As of October 2014, 57% of IFoA students were based outside the UK, with most of the growth coming from emerging markets, particularly China, South and South East Asia, and Africa. In addition, general insurance has become the fastest growing of our major practice areas, and based on current projections, will become the largest community of IFoA student members within the next 10 years. Risk management and health are also very strong growth areas, albeit from a smaller base.

Another change is the evolution of business models. We have seen an increasing amount of work being done by those who are utilising actuarial skills, such as data analysts, but who do not necessarily want or need to qualify as actuaries. This goes hand in hand with a blurring of the lines between what is viewed as actuarial, versus more general analytics or IT work. Firms are also becoming increasingly globalised.

More UK pensions work is being carried out by those based overseas, and the growth of the insurance industry has reached parts of the globe where there has historically been little economic investment, as seen in the recent need for microinsurance in places like Africa.

What impact have these changes had on the profession?

The impact has been huge. We’ve had to review how we deliver our charter objectives to ensure that we are relevant on a global scale to an increasingly diverse membership. Equivalence of service and accessibility have become our mantras! We have been working hard to ensure that as we develop new offerings we recognise the needs of our members, not just in our traditional centres, but overseas and indeed those based regionally in the UK. The change in business models has led us

to re-examine our core education proposition to ensure that our qualifications are equipping students with the skills required by employers.

This has led to the development of the Certified Actuarial Analyst: the only qualification based on actuarial techniques aimed at those in more general financial, analytical and financial IT roles. We have also revised our Associate qualification to bring it in line with International Actuarial Association requirements and to address the increasing demand for broadly qualified actuaries.

What initiatives has the IFoA launched to meet the needs of international members?

Well, as I said, equivalence and accessibility are a major theme. In May we held our first-ever Asia conference in Beijing, a cross-practice event that saw a high calibre of speakers assemble to discuss issues impacting the profession, not only in Asia, but all over the world. This received the highest satisfaction rating of any conference we have produced.

We are also developing a Virtual Learning Environment which, once in place, will enable members to access conference plenaries and CPD events around the world, regardless of where those events have been held. Our online professionalism CPD has now been accessed nearly 100,000 times – that’s four times as many members as we have. Our new website when launched will also greatly facilitate access to our services.

Why would a potential actuarial student choose to be a member of the IFoA? I’m obviously biased, but I do think our global offering is truly market leading. We have offices in Beijing and Singapore staffed full time by Fellows, accreditation agreements with the leading universities around the world, and a unique and innovative suite of qualifications designed to meet the different needs of actuarial professionals.

We also know that, because of the way IFoA actuaries are trained, with a focus on business application and communication skills, our members are regarded very highly by employers. An independent survey in South

24/06/2015 10:13

The International Issue Derek Cribb East Asia, where many different actuarial bodies are present, showed us that IFoA Fellows tend to earn in excess of $1 million more than other actuaries through their career.

In your view, what is the biggest risk facing the IFoA globally?

Just as the broadening of the areas we see actuaries working in highlights an opportunity, it also represents a threat. Other professionals will seek to expand into common areas, so we need to be responsive as a profession and be able to demonstrate the unique value of actuaries. We must continue to be in a position to attract the brightest and best students to join the IFoA, as the quality of our members, their education and business relevance is key to the longevity of the profession. I also see the broadening of the areas as a massive opportunity for us to collaborate with other professions.

We should remember that while we have a strong position within the actuarial field, this is still only a small fraction of total professional activity and financial services. We must be

open to joint initiatives not just with other actuarial associations, but other professions, in pursuit of our charter objectives.

What can members do to ensure the longevity of the actuarial profession?

Relevance, diversity of skills, promotion and collaboration are all keys to success, and are all in the hands of our members. I would encourage actuaries around the world to do more to develop their local communities – set up a local society; act as a mentor to students in your organisation; give talks in local universities about actuarial careers; volunteer.

The only way we can get the word out about the value of the actuarial skillset is by being more outward facing, and the best actuaries will be ones that can benefit from the investment of those that have come before them. The development of communities is vital here – especially in those areas where there are only a handful of actuaries.

I would encourage every actuary to support those around them, for the good of the overall profession.

“Relevance, diversity of skills, promotion and collaboration are all keys to success, and are all in the hands of our members”

Institute and Faculty of Actuaries

Certified Actuarial Analyst Predictive analytics, big data, unstructured data modelling, climate change, health system modelling The world is changing faster and faster and the need to analyse data, produce new models and use actuarial skills in more industries is growing.

The actuarial analyst qualification is internationally recognised.

You will be equipped with the relevant modelling, statistical and actuarial skills to be a valued team member in any company. Become a member of a professional body and if you choose to become a Fellow later then there is a conversion route available from 2017.

For more information visit our website: www.actuaries.org.uk/becoming-actuary/caa or contact the Education Services team: +44 (0) 1865 268 207 email: caa@actuaries.org.uk

p34_35_supplement_Cribb.indd 35

24/06/2015 10:13

The International Issue

Actuaries on the move Actuaries are in a good position to meet the relevant immigration criteria of many popular migrant destinations, says Tim McMahon. But in today’s increasingly global employment market, actuarial professionals who want to take advantage of overseas opportunities need to be aware of frequently changing immigration rules

p36_37_supplement_aus_nz.indd 36

With employment opportunities growing worldwide, actuaries wishing to work overseas should keep up to speed with immigration regulations in various destinations. Here is a look at how things work in Australia, Canada and the UK, and how this impacts on actuaries.

Australia Actuarial professionals looking to move to Australia for work should be aware of the option to secure permanent residence and not rely on an employer-sponsored visa.

In the last few years, the Australian government has reduced the numbers of occupations that are eligible for skilled independent migration and instead are moving to steer their migration programme towards employer sponsored visas. This allows an applicant to work for a specific employer in a specific position. But here’s the rub – it does not readily allow an applicant to move from one employer to another, or indeed, even to switch positions with the same employer. In effect, the applicant is ‘tied’ to the sponsoring employer and position.

Despite the reduction in the number of occupations on the skilled occupation list –

the role of ‘actuary’ is still present for skilled independent migration. The main entry requirement is a relevant degree and at least one year of work experience.

Importantly, professional actuarial exams or membership of a professional actuarial body are not mandatory to migrate to Australia under the nominated occupation of ‘actuary’. So this can include actuarial graduates, part-qualified actuaries or fully qualified actuaries.

Before one can apply for skilled independent migration, an applicant must have received a positive skills assessment and meet the basic entry requirements on age and English language. The skills assessment remains a vitally important and timeconsuming part of the process for actuaries.

This involves an assessment of the applicant’s qualifications and work experience. Once the skills assessment is passed, the next stage is to apply for permanent residence through the skilled independent subclass. This is a pointstested system, with the main points awarded shown in the table on page 37.

Getting full marks The required pass mark to attain for an application is 60 points.

Applicants can also be awarded extra points for: Australian qualifications, Australian employment experience, state/territory sponsorship, partner skills, or sponsorship by an eligible relative living in Australia.

The main advantage to skilled independent migration is that it allows the applicant to secure full permanent residence at the outset without needing an offer of employment.

It can be seen that many actuaries

24/06/2015 10:17

The International Issue Tim McMahon (including those not fully qualified with a professional actuarial body) will score highly on this points test providing a pathway to permanent residence in Australia.

The overall timeframe to secure permanent residence is about 6-9 months.

Obviously, occupations are present on the skilled occupation list for Australia due to a recognised demand. Therefore, actuaries can be confident that their inclusion on the list means very good employment prospects ‘Down Under’.

Canada In January 2015, Canada launched its ‘express entry’ system to select immigrants.

Express entry involves applicants submitting an electronic profile form to be considered under the main immigration programmes such as that for federal skilled workers. Applicants are ranked according to a points-based system called the comprehensive ranking system. Points are awarded using the information in the applicant’s profile relating to age, education, language ability in English/French and employment history. Additional points are awarded for an offer of employment in Canada.

Regular selections are made from the system, inviting the highest ranked applicants to then apply for permanent residence. Such a permanent residence application has to be submitted within 60 days.

Actuaries are included on the Canadian national occupational classification and are eligible to apply under the express entry system. Although it is too early to review its merits, the system certainly seems to be meeting one key goal – the process to secure permanent residence is now much quicker than before.

UK immigration changes May 2015 saw the election of a new Conservative majority government with its pledge to reduce net migration. While the focus now seems to be more on low-skilled EU migration, it should be remembered that in April 2011, an annual cap of 20,700 Tier 2 (general) visas was introduced. The cap created an annual limit on the number of workers that UK employers could sponsor to come from overseas.

However, this annual cap has not resulted in anyone being denied entry to the UK since it was introduced. This is because many applicants are not subject to the cap, such as: ● UK university graduates on student visas ● High earners ● Those in the UK on a current work visa ● Those coming to the UK on an intracompany transfer visa

The 20,700 available places are issued on a monthly allocation (as certificates of sponsorship) but demand has not yet exceeded the available places, so the cap has never been reached. Indeed, most months see a rollover of available places to the next month.

However, while the new government has pledged to continue the annual cap – it is important to note that in recent months the demand for available places has been increasing, month-on-month. So, for instance in May 2015 there were 2,277 granted out of 2,285 allocations available.

Once demand exceeds supply, the available places are allocated on a points system. This point system has not yet been relevant but as demand for overseas workers increases with the growing economy, it could soon be very important.

The points system is heavily biased towards offered salary, meaning that, in time, those who are paid more will get priority in the allocation. This gives an advantage to actuaries and other finance professionals who typically would be paid more than other sponsored workers in sectors such as healthcare, education and others.

UK employers can be confident that actuaries can continue to be sponsored for Tier 2 (general) visas within the annual cap.

Some other UK visa options include:

“The main advantage to skilled independent migration is that it allows the applicant to secure full permanent residence at the outset without needing an offer of employment”

Australia’s skills assessment points system for independent migration Educational qualifications Diploma / trade qualification

10 points

Bachelor degree / Masters degree

15 points

Doctorate degree

20 points

● Tier 5 (youth mobility scheme)

Citizens of the following countries are eligible for this two-year visa: Canada, Australia, New Zealand, Japan, Monaco, Hong Kong, Taiwan and South Korea. Applicants must be between 18 and 30 (so not have reached their 31st birthday) when they apply.

It is not possible to switch from this visa to another work visa category while in the UK. The applicant would need to return to their home country to submit a fresh application. ● Ancestral visas

If you have a UK-born grandparent and you are a citizen of a Commonwealth country such as Australia or Canada, then this visa can allow you to work in the UK and later to obtain settlement. The visa is issued for five years. A sponsoring employer is not required and the visa holder has freedom to work on a self-employed or employed basis. ● European Union (EU) nationals and spouses Although EU nationals do not require a visa to work in the UK, their non-EU spouses do.

This includes those who are married or in a civil partner/unmarried partner relationship with an EU national.

Age 18-24 (inclusive)

25 points

25-32 (inclusive)

30 points

33-39 (inclusive)

25 points

40-44 (inclusive)

15 points

45-49 (inclusive)

0 points

English language ability Proficient English

10 points

Superior English

20 points

Employment experience 3 years

5 points

5 years

10 points

8 years

15 points

Required pass mark

60 points

Tim McMahon is an immigration adviser with Commonwealth Immigration Consultants: www.commonwealthimmigration.com.

Contact the organisation through its website for any assistance with immigration

GETTY

p36_37_supplement_aus_nz.indd 37

24/06/2015 10:17

The International Issue

Matthew, what do you see as the key differences between pension risk management in the UK and the US? Working alongside plan sponsors, actuaries and investment consultancies on both sides of the pond, particularly through our alliance with Winklevoss Technologies, we have noticed a number of key differences. The UK has been one of the leaders in pensions risk management, driven by changes made by the UK regulator. However, the US is following hot on the UK’s heels and is taking action quickly.

In the US, not having the same organisational structure – no separate trustees – appears to make a noticeable difference when it comes to how actively sponsors can push their advisors, and how more decisively they can act in relation to risk management.

There is also a lot more fragmentation and specialisation in the US intermediary market, which means more often than not, you have multiple advisors working with a single plan. Each advisor will have their own slightly different slant on risk management and will be pushing to provide advice in the ‘middle ground’. So you see different types of intermediaries playing the lead role in providing risk management advice.

What are the big trends in pension risk management in the US? Liability-driven investment (or LDI) has become very popular, and we are seeing a lot of asset managers building up LDI solution teams. Also, more and more plans are implementing long-term investment strategies to manage the risk – such as using glide paths.

In terms of risk elimination, bulk lump sum cash-out windows have become common practice in the US – allowing corporates to reduce both the size of the pension plan in dollar terms, and also reduce the administrative cost of running the plan.

Elsewhere, the annuity buyout market is warming up, with high-profile cases such as GM, Verizon and Motorola paving the way for more activity in this area.

An interesting development is the release of new US mortality tables, which have already started to be reflected in accounting valuations – and will imminently be used in funding valuations. From what we have witnessed so far, the change will increase the accounting liability for plan sponsors by between 5 to 10%.

This is likely to have a dual impact. First, plan sponsors may want to beat the changes and pay out as much as the liability through lump sums as possible before the impact on funding valuations is felt. Second, it is making buyouts appear more attractive: annuity providers already use equivalent

p38_39_jul_pensions.indd 38

Making great strides

Jeremy Lee talks to RiskFirst managing director, Matthew Seymour, about the differences in approach to pension risk management in the UK and US, and the role of pension risk analytics levels of mortality when valuing liabilities, so the relative cost of a buyout valuation in comparison to the accounting valuation is lower than before.

Whether in relation to risk management or risk elimination, there is a major trend of intermediaries looking for ways to differentiate themselves and demonstrate the credibility of their teams and their solutions. A number of firms have embraced the use of risk management platforms and more of their clients are implementing derisking flight plans that use these analytics to better monitor their evolving position and decide when to execute changes in strategy.

Why has the US tended to follow in the footsteps of trends in the UK? Good question. In general, US plans provide less valuable benefits than UK schemes and so the cost of running these plans has taken longer to come to the fore. Also, government regulation on inflation-linked pensions in the UK means that companies there have less scope to design schemes that can lower cost. So the incentive to implement de-risking solutions has been greater in the UK. The US is now benefiting from replicating many successful UK practices – although only to the extent that they are applicable to the US market. For example, there is no big inflation swap or longevity swap market developing in the US due to differences in pension benefit plan design between the two countries.

Also, US accounting standards – where equity returns play a large role in determining the benefit cost – have also for a long time discouraged US plans from increasing their fixed income allocations with lower expected returns, or seeking to implement LDI or other de-risking measures.

Do you see a difference in focus between US advisors and their UK counterparts?

In the UK, because the advisory market is more consolidated, I think there has long been a focus on providing a broad range of advice. Most UK consultancies have a full-service offering encompassing actuarial advice, investment and risk consultancy.

I think we are witnessing somewhat of a replication of this model in the US – with many consultancies seeking to broaden their range of services, either to offer more to current clients, or to win new clients by displaying a broader understanding of the risks and issues they face.

Certainly, when seeking new clients and mandates, many advisors are very keen to provide a much fuller suite of analytics and to demonstrate their own understanding of a holistic, cross-balance-sheet view. This allows them to interact not only with the plans in a more credible way, but also with the other advisors the plan may be involved with.

24/06/2015 10:19

The International Issue United States of America Ultimately, sponsors are becoming much more focused on the risks in their pension plans, and increasingly looking at these risks holistically.

Is this driving a changing skill set necessary to be an actuary in the US? The role of a traditional pension actuary in the US is still very much driven by satisfying regulatory requirements such as annual valuations, determination of annual contributions, and completion of annual financial disclosures. Pension risk management activities are generally under the remit of the plan’s investment consultant.

However, many investment consultants typically have experienced pension actuaries on their staff and as pension risk management in the US grows, it would seem likely that more opportunities will arise for pension actuaries in these roles.

This will require actuaries to have a deeper understanding of both sides of the balance sheet.

Do different types of advisors tend to consume risk analytics in different ways?

I think the way advisors and consultants use technology – and the data and analytics it drives – depends heavily on what they are trying to accomplish. For instance, the actuarial consultancies are naturally much more focused on the funded status, so use technology principally to better value assets and liabilities, and to produce a ‘big picture’ view.

The investment consultants and the asset managers, on the other hand, are much more focused on risk or asset liability management (ALM). Obviously, the asset managers are trying to showcase their own products and want to do that inside a risk framework that includes the liabilities.

The investment consultants are trying to put together a long-term plan for a plan sponsor and therefore they often need systems with detailed ALM functionality.

Yet, they are all increasingly trying to stretch beyond these boundaries.

What are the barriers to plans and consultants implementing external technology?

Barriers come from a number of different areas.

A big one historically was the fact that many consultancies and intermediaries already had existing in-house analytics. The key question is whether it makes sense for them to continue to maintain those systems, and develop them to keep pace with the industry and technological change. Today we see intermediaries scaling their businesses in different ways, focusing on the elements of their work that are most valuable to clients – providing advice and solutions – rather than number crunching. They are also far more willing to outsource the development of technology to experts in the field.

What other markets have a growing demand for pension analytics tools?

We are seeing interest in Canada and also in the Eurozone. Demand is increasing for a global risk view and consistent analytics – across clients’ numerous pension plans globally. We are developing our platform to meet this.

Aon Benfield

ReMetrica: Bringing stochastic modelling to Life ReMetrica for Life, Health & Pensions now offers a fully stochastic framework to evaluate the key risks of long term products and more accurately influence reinsurance purchases, predict cash flow and analyse financial strategies.

Discover more at aonbenfield.com/remetrica_demo

Risk. Reinsurance. Human Resources.

p38_39_jul_pensions.indd 39

24/06/2015 12:17

Nigeria calling Laura Llewellyn-Jones describes the opportunities, beneďŹ ts and risks of working in a country with underpenetrated insurance and pensions sectors

p42_43_jul_Africa_2•CT/KC.indd 26

24/06/2015 10:20

The International Issue Laura Llewellyn-Jones

Nigeria is the largest economy in Africa, since taking over from South Africa in 2014. It also has the largest population in the continent, of around 170 million inhabitants.

Oil and gas are currently the major foreign exchange earners but the country has massive potential, not just for actuarial work, insurance and investment, but for a wide variety of different sectors.

There are about 60 insurance companies in Nigeria, regulated by the National Insurance Commission (NAICOM). The insurance sector is relatively underpenetrated. Regulation is improving, and growing foreign influence is providing more product innovation. However, there appears to be a fairly low market perception of insurance, due to legacy issues such as non-payment of claims and fake insurance firms.

The law around insurance provision is not well understood. For example, it is compulsory to have at least third-party motor insurance in Nigeria before using or keeping a vehicle on public roads. However, many drivers see the insurance documentation as proof of ownership or paperwork to show law enforcement agents, rather than for the cover it provides them in case of accident or loss.

Raising awareness Following an accident, drivers may well pay for the repairs themselves as they simply do not appreciate the insurance cover they already have in place. This highlights that more education is required about insurance so individuals can understand its value. It also underscores the importance of insurance companies building confidence with their client base that they will pay out if legitimate claims are made.

There are a small number of consulting firms based in Lagos who complete the actuarial reporting for the bulk of the insurance companies. There is significant growth potential in the consulting sector, for product development and innovation as well as within the regulatory framework.

The pension sector is regulated by the Pension Commission (PENCOM). The Pensions Act 2004 obliged firms with a certain number of employees to provide workers with a pension, and introduced individual retirement savings accounts. This has increased pension take-up, although in practice, individuals in the informal sector who make up the majority of the population (those who are not taxed or monitored by any form of government) do not have pension provision.

Take ‘Grace’ for example. She is 24 years old, and works as a housekeeper in Abuja. From her salary, she puts money each month into her mother’s bank account in order for her to buy

food. She has never considered paying for a private pension. If she does not have children herself who could support her in retirement, she intends to keep working in order to survive.

She would, however, like to have a pension, so that her savings are secure and they grow with interest. A growing and tailored pension industry could reach people like her, providing not just a safety net but also greater access to finance for businesses within Nigeria.

In the formal sector, individuals are empowered to select their own Pension Fund Administrator (PFA) who will then manage their individual defined contribution retirement savings account. The choice of administrator may depend on the investment choice it offers, its network of branches and the service and communication it provides. For example, as an employee changes job, they may keep their retirement savings account with the same PFA. Employers may therefore need to pay into a number of PFAs depending on where employees have their accounts, and have to pay at least a minimum percentage of salary as contribution.

Over recent years, there has been a deliberate move away from defined benefit provision, a push for greater coverage of the population, as well as a clampdown on fraud and mismanagement. There is still a long way to go, but the perception of the pension sector has improved. This has been helped by better communication. Recent political developments may also provide opportunities.

Entering into a new market requires fully understanding the politics and monitoring them carefully to try and anticipate any potential changes that could impact business. For example, if an economy is particularly reliant on one sector, should there be instability within that area this will have a greater impact on the whole country than if the economy is reliant on a larger number of sectors. In the case of Nigeria, oil and gas form the significant part of the economy and provide well over 70% of federal tax receipts.

The drop in oil price has therefore had a significant impact.

Nigeria held the most expensive election ever in the African continent on 28 March 2015. The opposition candidate, Muhammadu Buhari won by more than 2.5 million votes and the incumbent president Goodluck Jonathan conceded defeat. This is the first time an incumbent president has lost re-election in Nigeria. These events show a growing maturity and sense of expectation from the voting public: they wanted a peaceful election and change of government, and they got it.

President Muhammadu Buhari was sworn into office on 29 May 2015. The atmosphere in Abuja is still full of optimism and excitement.

He has vowed to tackle corruption, insecurity

and create jobs and is keen to bring in more international businesses – particularly when it comes to diversifying the Nigerian economy and bringing in new capital to invest in infrastructure.

Connecting So how should those who are interested begin thinking about Nigeria?

First, engage with its culture. Diverse and vast, the country can be overwhelming for some, however keen they are to do business.

But there are some common traits that matter when engaging with Nigerians, wherever they are from. They are often more direct compared to people in the UK, less willing to talk around the point and more clear about what they want and need. That can be off-putting but it can also be quite refreshing. It makes conversations about business or anything more vibrant, fun and engaging.

Fuel shortages, bad roads and crazy driving are some things people complain about and these are not going away in a hurry. But they are also not good reasons to quit and there is always a way around whatever shortage you are faced with. Nigerians are among the most entrepreneurial people in the world, and most impressive are those who sidestep, swerve and overcome obstacles with good grace and resilience. They show us how it can be done.

Finally, don’t be put off by the concerns about insecurity. It is true Boko Haram in the north-east of Nigeria is still a cause for serious concern. Also that crime and kidnapping are a problem. But by being sensible, taking precautions and following good advice you can still come to Nigeria and do business safely. At any one time, there are between 10,000 and 20,000 British nationals living and working in Nigeria. The vast majority do so without security problems, and come to enjoy the cut and thrust of the business and social environment Nigeria offers.

Doing business in Nigeria is not easy, corruption is a challenge and there are many other issues that can make people stop and want to look for an easier market to enter. But there are significant opportunities for actuaries, risk consultants and others in the financial services industry looking for frontier markets to enter.

Now is the time to take advantage of political changes, demographics, economic growth and the keenness of the new government to bring in foreign businesses. It might not be easy but Nigeria will be rewarding, exciting and certainly never dull.

Laura Llewellyn-Jones is an independent actuarial consultant in Africa

ALAMY

p42_43_jul_Africa_2•CT/KC.indd 27

24/06/2015 10:20

The International Issue Spotlight

Let the dice decide A game of chance for making life-changing decisions, or just a bit of fun? It’s all in your hands, says Darryl Boulton

As a small boy I exhibited some early actuarial traits; specifically I loved playing with dice. Home computers were still at a very early stage so I employed all manner of combinations of dice to mimic tennis, football and cricket matches with loadings for better players and teams. Whether this prepared me best to be a bookmaker or an actuary is a moot point, but it certainly helped my early understanding of probability.

Whether I have any other actuarial traits is best judged by others, although I generally take it as a compliment when people express astonishment that I am an actuary.

They could, of course, be considering my intellect but unfortunately the profession still has a reputation as being full of dullards, and I hope I can at least demonstrate that is not true of all actuaries. So this article had better be interesting… no pressure then.

My favourite book Some years ago, drawn by the title, I bought a book called The Dice Man by Luke Rhinehart. I recall it had rather a slow start, which perhaps reflected the boredom the psychiatrist in the book had with life. But this all changed one evening when he made a bold decision all based on the throw of a die.

From that point on he becomes obsessed with dice, such that virtually every decision he makes is based on the roll of one or two of these little cubes. His life degenerates hilariously and rapidly to such an extent that at one point he tries

p44_July_spotlight•KC.indd.indd 44

to eat and sleep all according to the roll of the dice.

The secret behind an exciting dice life is to have a balance of options, in particular there should be at least one option that you do not care for – however if that is what the dice decides then you must do as it decrees.

Go with the throw In line with the international theme this month a good place to dip your toe in the water, so to speak, would be on deciding your holiday destination. If I had to list six choices – assuming no tight budgetary constraints – then I would list Canada, Croatia, India, Poland, South Africa and Thailand.

In line with my own rules for a good dice game I am very happy with two of these, broadly neutral on three and not too keen on one option. Please note I have listed in these destinations in alphabetical order which is not necessarily the order of my preference!

So what else? Well, meal choice is a relatively harmless area you can dabble in.

Anyone following the 5:2 diet may want to vary it slightly by letting the dice decide each week between 4:3, 5:2 and 6:1 perhaps.

Actuarial couples can of course have twice the fun.

Do or die Fans of Heartbeat may recall a scene where a man was put in the same cell as a hardened criminal who held a grudge

against him. He was a fair man though and said only if, on the throw of a dice, the man threw anything from one to five would he beat him up. When the trembling man asked what would happen if he threw a six he was told: “It’s Christmas, you get to have another roll”.

Then there’s work. I think it was David Brent of The Office fame who threw half the CVs he had to look at straight in the bin on the basis he did not like to employ unlucky people. So the dice can certainly help there!

Actuarial connotations On a more serious note can dice help in actuarial work?

Not in 2015 I think, but the concepts of chance and probability do play a big part in our work and a few harmless dice games may even help your general level of understanding, particularly early on in your career. Life insurance is a game of chance and, from a personal perspective, if the dice fall wrong you win big.

Something for fun So it may not be Christmas, but I am nearly at the end of this article and am feeling suitably de-mob happy, so how about a dice game? If you throw: 1 – donate £5 to charity 2 – go for a brisk walk 3 – fetch a coffee for your colleagues 4 – write a letter to The Actuary 5 – treat yourself in a small way 6 – point this article out to your colleagues.

Darryl Boulton is an independent actuarial consultant

24/06/2015 10:21

The international actuary The actuarial profession is recognised worldwide as a leading player in promoting professionalism, developing educational standards and encouraging research within the finance and insurance sectors.

Actuaries can be found in all corners of the world, and their skill set is growing in demand; not only in the traditional pensions and insurance markets but also in other fields of practice, such as banking, risk management and the environment.

The international actuary issue serves as a reminder of what a truly global profession it is. Our aim is to provide a snapshot of the roles, responsibilities, risks and challenges of actuaries on the global stage.

We have invited student and newly qualified actuaries living and working in an international capacity to discuss their experiences and provide an insight into the actuarial practices of their own homelands.

To read more from our international actuaries, visit www.theactuary.com/international

IN ASSOCIATION WITH

p45 supplement_ad_july_45.indd 45

24/06/2015 10:22

The International Issue United Kingdom

I am a student actuary working for Ernst & Young in London.

I originally graduated in natural sciences from Cambridge, and have had a varied career working in publishing, training and software development.

Most recently, I ran my own software and design agency for 14 years. Apart from spending time with my children, I love photography, cycling, kung-fu and throwing parties.

I am also passionate about understanding the cultural and philosophical dimensions of technical decision-making; I spent a lot of my spare time over 10 years working towards my doctorate in cultural studies from Goldsmiths.

Jonathan Allenby

Which actuarial field(s) do you specialise in?

Non-life and insurance data analytics.

Why did you decide to study and work in this specific field?

When the recession hit my business, I decided to rethink my future career by looking at career profiles for different professions, and matching them up with my own existing and potential skill set.

Having spent 14 years as an entrepreneur, I felt I wanted a high level of professional guidance, mentoring and CPD to help me on my way. I also wanted to re-engage my maths skills. As a technical career with a reasonable work/life balance, good career prospects and a high level of professionalism, the actuarial field strongly appealed.

To get the CT1 – CT8 exemptions I did a part-time distance-learning PGDip in Actuarial Science with Leicester University – and I’m very happy I did, as the actuaries I’ve met so far are very nice people.

Which actuarial society are you a member of?

I’m a member of the Institute and Faculty of Actuaries

Q&A p46-47 UK Allenby SM-1.indd 46

Which actuarial fields are most dominant in the UK and why?

Solvency II has driven the expansion of capital modelling.

Tell us a bit about the market that you work and study in?

I am involved in non-life personal lines, mainly home and motor. I am interested in usage-based insurance (UBI) and the opportunities opened up for insurers by the internet of things.

I think we will see some very interesting developments in non-life within the next few years and I hope to be closely involved.

What kind of support do students get in your company and elsewhere in the market?

At EY, students get excellent study leave and support for exams. There is a general understanding among the team of what the exams involve, and how challenging it may be to combine studies with work, particularly near year end.

From what I hear, there is pretty good support for exams in all the big consultancies and many of the major insurers in the UK.

24/06/2015 12:13

What kind of activities does the actuarial student society in the area where you work organise?

The Staple Inn Actuarial Society (SIAS) arranges a wide variety of activities both professional and social, which are designed to appeal primarily to students and recently qualified actuaries.

Can you tell us about the challenges and benefits of your actuarial activities outside your day job?

I am a member of the Herd-Like Behaviour working party, looking at areas where actuaries ‘follow the herd’ in decision-making, due to regulatory pressures, benchmarking and other factors.

So far this has involved some research, writing and presenting at a break-out session of the CIGI (Current issues in general insurance) conference. It has been a brilliant opportunity for engaging with a variety of senior actuaries and other industry figures about issues which don’t get talked about very often. The main challenge has been to find the time to meet commitments on top of work, but overall it has been very rewarding.

What do you believe are the social and economic drivers for actuarial work in the UK? In the area I’m interested in, a lot of the factors driving change are technological in nature: the digitisation of things, telematics, big data, advances in online policy applications and claims handling.

In the longer term, technologies like driverless cars will completely transform the nature of motor risk and insurance.

What’s the reputation of actuaries and the profession in the UK? Amongst those who know us, there is a lot

Q&A p46-47 UK Allenby SM-1.indd 47

of respect for actuaries, our technical capabilities and professionalism. We are generally perceived as quite risk-averse, a good foil for the more buccaneering approach of some other financial professionals.

How does the professional body try to enhance its image?

Actuaries are perceived as being highly uncommunicative and introverted, which is usually not true in my experience.

The IFoA is trying hard to change this perception, by promoting the importance of communication, which will be vital if actuaries are to play a central role in articulating risk at board level, to the media and public at large.

What are your views on the role of an actuary in the market you work in, now and in the future?

It is a very exciting time to be an actuary.

Emerging technologies will require actuaries to develop new skill sets and understanding of a more integrated risk environment.

At the same time, the actuarial skill set will be needed by data-driven risk businesses in order to critically assess the limitations of the data they rely on.

What were the influences that shaped your career decisions to date?

As a career changer, my decisions have been focussed on how best to repackage and reuse my existing skills whilst looking to build a solid foundation of actuarial skills and experience.

It has been difficult to work out the best route into the profession, but I would say it is vital in this situation to make as many relevant contacts as possible, get plenty of advice and work out exactly what you want.

The programme director for actuarial

distance learning at Leicester, Leena Sodha, gave me lots of useful tips and encouraged me to volunteer for the IFoA – which was very helpful. I also benefited by knowing someone who could pass my CV to the relevant people.

However, I think more help and guidance could be provided for career-changers by the IFoA, particularly because the profession gains from expanding the diversity of experience and viewpoints amongst actuaries.

Could you tell us about your immediate and longer term goals?

In the short-term I aim to become fully qualified and build up my industry knowledge by working on a variety of jobs: analytics, reserving, capital modelling, actuarial review.

Longer term I want to be involved in formulating innovative strategies for customer engagement throughout the whole lifecycle from the marketing of insurance products right through to claims handling.

What do you say when asked “What is an actuary”?

Usually it starts with “no, I’m not like an accountant”. My short answer is “a mathematically skilled adviser on risk, mainly involved in insurance”.

How will you celebrate the day you qualify?

Whatever I do, it will probably start with a glass of champagne!

24/06/2015 12:13

The International Issue India

I am an economics graduate from the University of Delhi.

I currently work at Milliman India specialising in pensions.

I am also part of a nongovernment organisation in Delhi that looks into matters of public interest.

I have an avid interest in singing and passed my grade 4 exam from Trinity College, London. I plan to sit further singing exams.

As well as my interest in fiction, I also enjoy reading about theoretical physics and the latest discoveries in the field of science

Roopal Shard

Why did you decide to study and work in this specific field?

I chose to be an actuary because I wanted to pursue a career that uses mathematics practically, and is also a part of the financial services industry.

Which actuarial society are you a member of?

I am a member of both the Institute and Faculty of Actuaries and the Institute of Actuaries of India.

Which actuarial fields are most dominant in India and why?

Life insurance is the most dominant field because it is one of the first actuarial services in India and is in high demand.

Tell us a bit about the market that you work and study in?

I work in the employee benefits team at Milliman, focused on Asian clients. We value the liabilities of firms with respect to end-ofservice-benefits the company are obliged to pay to their employees.

What kind of support do students get in your company?

The exam fee is paid by the company if the student passes the exam. There are also exam-based salary increments to encourage students to pass exams, and study leave.

Is there an actuarial student society in the area where you work? If so, what kind of activities does it organise?

The Institute of Actuaries of India regularly organises seminars and workshops for actuaries specialising in various fields.

However, most of these events take place in Mumbai.

What do you believe are the social and economic drivers for actuarial work in India?

The main driver for gratuity benefits and health insurance is the lack of a strong social security system and a universal healthcare system provided by the government.

What’s the reputation and image of actuaries and the profession in India?

The Institute of Actuaries of India is very highly regarded in India. It is also recognised by the IFoA.

Q&A p48 India Shard SM-1.indd 48

The IAI exams are extremely difficult and have a low pass percentage year after year. The IAI makes sure that member actuaries follow the guidelines and law laid down by it.

What are your views on the role of an actuary in the market you work in, now and in the future?

I think the role of an actuary has become quite important in the field of end-ofservice-benefits because as companies expand, so do their liabilities.

Firms are facing a pressing need to actuarially certify their liability figures. There is also a growing awareness among clients about what an actuary does and why it is important.

In the UK the skill set of an actuary is being recognised across many non-traditional disciplines. Is this also true of India?

I don’t think this trend is very popular in India as there are a large number of management graduates with similar skill sets that are able to secure jobs in challenging areas such as investment banking, financial risk management and enterprise risk management.

What were the influences that shaped your career decisions to date?

My love for economics and mathematics led me to choose a career in actuarial science. The mix of mathematics and finance was one of the key attractions of this field.

What are your immediate and longer term goals?

My immediate goals are to learn more about my field and work on more challenging projects. My long-term goal is to become a fully qualified actuarial consultant in the field of pensions and employee benefits.

What do you say when asked “What is an actuary”?

My reply is that an actuary quantifies the level of risk for a company or individual, designs complex insurance products and/or helps clients make risk-driven decisions.

How will you celebrate the day you qualify?

I will take a really long vacation.

24/06/2015 10:23

The International Issue Greece

I was born and live in Greece and work for Ernst & Young in Athens.

I am a student actuary specialising in non-life and risk – mostly related to the quantitative elements of the Solvency II framework.

Outside the actuarial world, I am one of the shareholders of a company that promotes music and the arts in general. When I find some free time I spend it playing basketball and other sports with friends, listening to music and watching movies

Nikolaos Kefallinos

Why did you decide to study and work in this specific field?

Given the theoretical nature of a pure mathematics undergraduate degree I was keen on specialising in a field that is closely related to applied mathematics and statistics and so I continued to study by pursuing a MSc in actuarial science and risk management.

Which actuarial society are you a member of?

I am a member of the IFoA. Which actuarial fields are most dominant in your country and why?

In past years the life business would be considered as dominant. However, more recently growth in the non-life actuarial field has been observed since companies have begun to use more ‘sophisticated’ methods.

The non-life sector is expected to develop significantly in the near future.

Tell us a bit about the industry or market that you work and study in?

I have already worked on projects for the largest insurance companies in Greece, Italy, Turkey and Cyprus covering a wide range of different assignments from technical reserves estimations to embedded valuations.

What kind of support do students get in your company?

There is a structured plan for study leave, which depends on the course the student will be examined on. The costs of exam fees and study materials are also covered.

Is there an actuarial student society in the area where you work?

Not a student society as such, but there is the Hellenic Actuarial Society which established the profession in Greece.

What do you believe are the social and economic drivers for actuarial work in Greece?

The main social-economic drivers are related to healthcare and pension issues. Until recently, the main healthcare coverage was provided by the state but due to the recession, the government’s budget for the healthcare system has been decreased dramatically.

Therefore, the private healthcare insurance business has already seen notable development, which is expected to increase in the near future. Similarly, the pension system is expected to be restructured, which in

Q&A p49 Greece Kefallinos SM-1.indd 49

combination with an ageing population, can be considered a very hot topic.

What’s the reputation and image of actuaries Greece?

In general, the profession is highly regarded – at least by other professionals who know what an actuary does. During the last year, possibly due to the upcoming Solvency II implementation, the number of actuaries has begun to increase.

The Hellenic Actuarial Society is currently under reorganisation in order to enhance the quality of its study programme.

What are your views on the role of an actuary in the market you work in, now and in the future?

Most actuaries work in insurance companies in actuarial and the risk management functions. They have a very important role within an insurance company, as they have a wide range of responsibilities, such as pricing, reserving, capital modelling.

Is the skill set of an actuary being recognised across many non-traditional disciplines in Greece?

It is true for the insurers’ risk management departments, which mostly consist of actuaries. On the other hand, the banking sector has not yet absorbed professionals with actuarial experience; that is expected to happen in the near future.

What were the influences that shaped your career decisions to date?

From day one I tried to learn quickly, in depth and with minimum supervision in order to improve my skills and develop professionally. In general, this is something that is encouraged by the company.

Could you tell us about your immediate and longer term goals?

The immediate goal is to become a qualified actuary. In the long term I would like to specialise in capital modelling related to non-life underwriting risk.

What do you say when asked “What is an actuary”?

A professional that uses applied mathematics and statistics to assess an insurance company’s risks.

How will you celebrate when you qualify?

I will probably organise a multi-day party.

24/06/2015 10:23

The International Issue India

I am a student actuary currently working for AIG in Bangalore, India. Originally from Mumbai where I completed most of my schooling, I went on to complete my Masters in Actuarial Science from the University of Waterloo, Canada.

I have considerable experience in the non-life insurance market particularly in the pricing domain, and I am constantly looking to improve my technical and analytical skills.

I’m a fun loving person and like travelling and exploring new regions. I get along with people well and also like to network with people outside my area of interest.

Carl Anthony

Which actuarial field(s) do you specialise in?

I specialize in the health and the non-life insurance domain primarily on the pricing side Why did you decide to study and work in this specific field?

I was quite interested in mathematics and went on to pursue my undergraduate degree in statistics. It was during this period that I came across actuarial science as a career.

The enormous application of statistics and the idea of solving complex problems got me intrigued into pursuing this degree.

Which actuarial society are you a member of?

Currently I’m a member of Institute of Actuaries in the UK, the Institute of Actuaries of India and, the Casualty Actuarial Society, in the US. Which actuarial fields are most dominant in your country and why?

The life and the pensions fields are more dominant in India as compared to other areas as these areas are quite developed and have a high penetration level within the Indian Market.

Tell us a bit about the industry that you work and study in?

I work in the non-life industry in the pricing area and it is still in the evolving stage. Post the tariffing of non-life insurance products the importance of actuaries in the pricing area has increased significantly.

It has also significantly increased the importance of analytics and risk mitigation techniques to achieve appropriate pricing.

What kind of support do students get, in your company and elsewhere in the market?

Most of the companies have an Actuarial Development Program policy in place for the students who wish to pursue Actuarial Science. The students generally get reimbursed for their exam fees and the study material along with paid time off to study.

Apart from that they also get monetary benefits on passing the exams to keep them motivated Is there an actuarial student society in the area you work. If so, what kind of activities does it organise?

The Society for Cultural and Youth affairs is one of the societies in India that organises

activities for actuarial students. It serves as a platform for students to showcase their skills in different areas, and network with people from a similar domain Are you involved in any actuarial activities outside of your day job. If so tell us about its benefits and challenges?

I used to a part of an actuarial group that constituted mainly of student members. I used to responsible for organising doubt clearing sessions before the exam diets, trainings on Excel/VBA and other relevant software to build up programming skills. I also organised trips to informative actuarial seminars.

What do you believe are the social and economic drivers for actuarial work in your region, for example, healthcare issues, pension issues, political change?

There is considerable room for development in the micro insurance and healthcare insurance sector in India, but there are a lot of challenges in order to gain penetration in these areas.

Also due to the population’s low income levels and less awareness it’s been quite challenging to market these products. With the current passing of the Insurance Bill, foreign direct investment in the country has been increased to 49%, which should bring in much needed innovation in product lines, along with an improvement in reach and penetration.

What is the reputation of actuaries and the profession in your country? How does the professional body try to enhance their image?

Not many are aware of actuarial science as a career, and the kind of work that actuaries are responsible for. Some consider them the wizards of finance, yet others know fleetingly that they deal with time value of money in some way.

The Institute of Actuaries of India has been doing a good job in organising the General Conference of Actuaries on a yearly basis, which draws some of the most influential actuarial minds from across the globe It comprises all the relevant fields: property and casualty, life and health, pensions and financial economics. This congregation

of ensemble actuaries deliver lectures on current hot topics; discussions and panel debates on the ills of longevity and technology advancements.

Other topics that affect our industry and practices are discussed and debated with religious-like fervour.

What are your views on the role of an actuary in the market you work in, now and in the future?

Actuaries are highly regarded in the life and pension industry in India. Their importance is also gradually increasing in the non-life scetor post de-tariffing. Currently, actuaries are mainly responsible for pricing products under different lines of businesses and reserving.

In the UK the skill set of an actuary is being recognised across many nontraditional disciplines such as risk management and banking. Is this also true in India?

The role of actuaries in the non-traditional disciplines has increased significantly in recent years in India. Actuaries are now considered broadly for their roles as risk officers and also as fund managers.

What were the influences that shaped your career decisions to date?

Having pursued my masters degree in actuarial science helped me a lot to take informed in my career. Also I feel fortunate to be working in the area of my interest which I believe would help me significantly in achieving my careers goals.

Could you tell us about your immediate and longer term goals?

My immediate goal is to gain considerable knowledge in the pricing area for the non-life industry, at the same time work on improving my technical skills.

I would also like to seek the opportunity to develop my role within this industry and achieve a position where I could take on more data driven decisions.

In the longer term I’m looking to achieve my

fellowship and work as a consultant, and also contribute significantly to the Indian Actuarial Society.

What do you say when asked, “What is an actuary”?

I would say an actuary is someone who looks into to the future to quantify the risk that the company might face. Then be able to present an appropriate solution to mitigate it, monitor the progress and provide feedback in order to optimise the recommended solution.

How will you celebrate the day you qualify?

I would like to take my parents on a short trip to Europe to celebrate my success, as they had immense faith in my decision to embark on an actuarial journey.

The International Issue Brazil

I am a PhD student currently studying at Cass Business School – City University, London. I am from Belo Horizonte, capital of the Minas Gerais state, Brazil. The city is one of the largest in Brazil and is known for its traditional food, friendly people, and the incredible hills and mountains that surround the metropolis.

Now that I am in London, I like to travel around the city and find new and interesting places. I often enjoy a coffee while reading Time Out magazine, in search of my next adventure.

I like go to places with live music, and try to find a venue where I can enjoy some Brazilian flavour. I recently bought a ukulele, so am spending some time trying to play it – and occasionally succeeding! Travel is also another passion of mine. I want to enjoy my time in Europe to get to know as many different countries as I can

Leonel Rodrigues Lopes Junior

Which actuarial field do you specialise in?

Life and health.

Why did you decide to study in this specific field?

After I got my bachelors degree in Actuarial Science in Brazil, I started working for a large private Brazilian healthcare company (Unimed-BH) in my hometown. My experiences there helped me to understand the complexity of providing access to healthcare services for the population. Also, as people are living longer, the demand for healthcare is increasing.

I want to be able to understand the trends in population longevity and mortality, and hopefully contribute to the provision of necessary care to future generations.

Which actuarial society are you a member of?

I am a member of the Brazilian Institute of Actuaries (IBA).

Which actuarial fields are most dominant in Brazil and why?

Life and health fields are becoming more dominant with the increase in penetration of life insurance, private medical insurance and

pensions. This is due to the perceived need by the population to complement state benefits related to healthcare and retirement.

Tell us a bit about the degree subject that you are studying?

As a PhD student, I want to investigate the trends of chronic diseases, particularly in Brazil. I also want to study the patterns of claims that generate extremely high costs (with hospitalisation, therapies and more) for a private healthcare company. In some of these cases, the high cost can be reduced or even prevented. However, it’s rarely achievable due to the difficulty in predicting when they will happen and how much they will cost.

What kind of support do students get?

Unfortunately, Brazilian companies do not provide much support. However, ever more people are starting to study for international qualifications such as the IFoA, and the SoA. Three years ago, a scholarship was created by the Brazilian College of Insurance – ESNS, allowing Brazilian actuaries to come to London and study for the MSc in Actuarial Science course offered by Cass Business School. As this course offers exemptions for

IFoA exams, students can start their journey to become a qualified actuary, and eventually contribute to the development of the Brazilian market. I was one of the first students to receive this scholarship, and completed the MSc in 2013.

people are becoming aware of what we do and how important our role is in protecting their future.

Is there an actuarial student society in the area where you work? What kind of activities does it organise?

The Brazilian College of Insurance – ESNS has similar objectives to those of SIAS. As part of their activities, they stimulate and publish research in the sector, offer professional specialisation and training courses – in national and international institutions – promote workshops and congresses in Brazil bringing together experts in the insurance sector from around the world, and provide scholarships, among many other activities.

What are your views on the role of an actuary in the market you work in now, and in the future?

One of the main issues of the healthcare market is to make the service viable for insurers and consumers. The sharp increase in medical costs makes this issue even more challenging for the future.

Actuaries working in health and care will play an important role in developing solutions for these concerning trends.

Are you involved in any actuarial activities outside your day job?

As a PhD student, I am involved with some academic activities with the Faculty of Actuarial Science of Cass Business School, helping them checking the students’ coursework. The greatest benefit for me is that it creates the possibility to follow an academic career when I conclude my PhD. What do you believe are the social and economic drivers for actuarial work in Brazil?

Over the past decade, more people have been able to buy life and health insurance policies, and have started saving for their retirement due to Brazil’s economic ascension and the consequent financial improvement of large parts of the population.

The challenge for actuaries now is to increase the penetration of these products, possibly targeting that part of the population on lower incomes. This will develop the insurance market in Brazil, and give the state the opportunity to provide assistance to the poorest parts of society, which unfortunately, is still a high percentage of the population.

What’s the reputation of actuaries and the profession in Brazil?

Unfortunately, the actuarial profession is still largely unknown in Brazil. However, more

In the UK the skill set of an actuary is being recognised across many non-traditional disciplines. Is this also true of Brazil?

This integration with non-tradition disciplines is still restricted in Brazil, with a large majority of professionals still working in traditional roles. I hope the market follows the steps in the UK market, and more professionals get involved in different activities.

What were the influences that shaped your career decisions to date?

The decision to pursue a PhD degree, which is very unusual among actuaries, was not easy to make. However, I was inspired by some interesting people I met while working in the Brazilian healthcare insurance market.

I was part of a team responsible for analysing the company’s data, and supporting the decision-making of the executive directors. During that time, I worked with very different professionals: demographers, economists, statisticians, actuaries, epidemiologists and even geographers.

Most of them had a PhD or a Masters degree.

Their way of working and their capacity to innovate and create solutions for the problems within the healthcare field fascinated me. It inspired me to hope that I too will have the chance to contribute on the development of actuarial knowledge – specifically, health and care – with the research I’ll be carrying out in the future.

Also, I’ll be able to pass on this knowledge to others who want to become actuaries, or those interested in this field.

Could you tell us about your immediate and longer term goals?

My immediate goal is to produce research during my PhD that could bring a contribution to the development of the health insurance sector, particularly in Brazil. As a long-term goal (and ambition), I would like to become an expert in the healthcare insurance field, hopefully as a qualified actuary by then.

What do you say when asked “What is an actuary”?

After searching for years for a simple answer to this question, I usually now say something like: “Actuaries understand and quantify risk, with many working in insurance companies.

So we are responsible for calculating how much you’ll pay for your car insurance.” They usually say: “You actuaries must be very intelligent people!”

How will you celebrate the day you qualify?

I’ll celebrate with my family, closest friends and the people who supported me on my journey. Hopefully with a barbecue back in Brazil.

The International Issue South Africa

I was born and live in South Africa, and currently work at Sanlam in Cape Town, specialising in life insurance, while also studying for my actuarial exams.

I am a young, vibrant and outgoing individual. I enjoy keeping active by playing golf, hiking, running, cycling and, more recently, I am especially keen on trail running.

I balance my social life with studying, and on the weekends you can catch me doing anything from grabbing a beer after a hike up Table Mountain, to playing around on my guitar.

Joshay Harkoo

Why did you decide to study and work in this specific field?

I enjoyed mathematics and statistics at high school and I was interested in the financial world. I narrowed my decision down to two options – accounting or actuarial science – the latter appeared more enticing.

Which actuarial society are you a member of?

The Actuarial Society of South Africa (ASSA) Which actuarial fields are most dominant in your country and why?

Life insurance and pensions are traditionally the most dominant fields, however, pensions roles have decreased significantly since the shift to defined contribution funds became more establised.

In the past, an individual would save with an insurer since they provided the easiest access. With the availability of asset managers, individuals are increasingly opting for this approach.

This non-traditional role, as well as others such as actuarial consulting and banking, is growing as the actuarial skill set is acknowledged and valued in alternative positions.

Tell us a bit about the industry or market that you work in The South African life insurance market is quite an interesting place to be right now. There are a number of regulatory changes on the horizon such as the implementation of Solvency Assessment and Management (SAM) on 1 January 2016 which is closely aligned to Solvency II in the UK. As challenges become apparent, actuaries within the industry are consulted by the regulator to better improve the environment.

With all the regulatory changes and the South African economy being sluggish since the 2008 recession, the life insurance industry has still managed to release promising results.

What kind of support do students get in your company?

Registration and exemption fees, annual subscriptions, study material – including course notes, tutorials, counselling sessions and study leave can be covered. Depending on the environment you work in, the policies tend to differ. The amount of leave you are able to take will depend on the role you are in, however, companies tend to remain market consistent as the study policy is a large factor in attracting and retaining the best actuarial students.

Is there an actuarial student society in the area where you work? What kind of activities does it organise?

Yes, the Association of South African Black Actuarial Professionals (ASABA) organise a number of events including mentoring, school outreach programmes and vacation work for students. ASABA are also set to co-host the first young member’s convention with the profession. ASABA’s vision is to realise a South African actuarial profession that represents the demographics of South Africa Are you involved in any actuarial activities outside your day job?

Unfortunately not. Due to studying, time constraints are an issue. I am part of the actuarial committee within my organisation and in the future aim to leverage of this knowledge to get involved in broader activities.

What do you believe are the social and economic drivers for actuarial work in South Africa?

Traditional life insurance products are becoming more difficult to sell within the South African market with the rise of alternative savings vehicles such as unit trusts. Coupled with the historically low trust levels people generally have with life insurers, actuaries are required to be innovative to generate new business.

Regulatory changes are a key driver as actuarial input and judgment is required in the process of drawing up the regulation through to the implementation and monitoring. The increased need for compliance to regulation and the volume of information required by regulators has created a greater demand for actuaries.

A recent introduction is that of the tax free savings product proposed by the regulator.

The South African market is largely made up of the lower income class who require flexibility. This resulted in the need for actuarial judgment to develop a product which is flexible, competitive and meets the regulator’s requirements.

What is the reputation of actuaries in South Africa? How does the professional body try to enhance their image?

ASSA has a strong reputation and is affiliated with the UK profession. The professional body

is continuously growing and enhances their image by providing strong commitment to their stated goals.

The profession plays a vital role with the South African government and is regularly consulted on government economic policy and intended changes – these types of activities help develop and enhance the professions image.

What are your views on the role of an actuary in the market you work in, now and in the future?

Actuaries historically filled the insurance valuations roles. As companies, across various industries, have begun taking a more risk-based approach, actuaries are valued in more business-orientated roles.

Previously, you would rarely see actuaries as part of the executive committee of a company. I see this changing greatly in the future as actuaries fill these strategic, business roles. Last year, one of the large mobile communications companies in South Africa hired a large group of actuaries. This indicates how actuaries are perceived to add value out of the traditional roles.

In the UK the skill set of an actuary is being recognised across many non-traditional disciplines. Is this also true of South Africa?

Yes, recently ASSA have added the banking subject to the syllabus as an option for one of the specialist exams , as well as the enterprise risk management subject which was added a few years ago.

What were the influences that shaped your career decisions to date?

My elder brother is an actuarial consultant and he has often advised and educated me – particularly giving me an insight into the actuarial and corporate world.

Vacation work programmes played a vital role in gaining exposure to various types of actuarial work – This has helped in making career decisions such as the type of firm I joined after university.

I have also gained great insight through

mentorship programmes, networking events and attending a range of seminars.

Could you tell us about your immediate and longer term goals?

Immediate goals: Progress through the last set of exams I still have to write while putting in maximum effort at work. Maintain a healthy work/study/life balance. Long-term goals: Obtain international exposure and grow my skill set to incorporate a range of actuarial ability. I would aim to join interesting and new projects which develop my skills and ability to solve problems while giving back to society.

What do you say when asked “What is an actuary”?

An actuary is an individual who deals with risk and uncertainty and methods of solving financial and business problems. Many people understand what an accountant does, so I sometimes take this approach: An accountant looks at events which have occurred and how to report on what has happened. An actuary looks at events which have occurred and how to plan for what is going to happen.

How will you celebrate the day you qualify?

I will celebrate with those who have supported and guided me to qualification – in particularly my parents and two brothers who have supported, advised and encouraged me through my development to reach this significant milestone.

The International Issue

United States of America

I was born in the United States of America and currently work for Praedicat in Los Angeles, California. I qualified as an Associate of the Casualty Actuarial Society, and am working towards becoming a Fellow of the Casualty Actuarial Society.

I have a passion for dancing, music and maths. My favourite way to spend time in Los Angeles is taking professional dance classes from top choreographers, and performing.

While the actuarial and dance worlds don’t often collide, it’s fun to have a diverse group of friends. Being from Green Bay, Wisconsin, my Sundays during the autumn are spent watching the Packers while eating vegan snacks – the perfect combination of Wisconsin and Californian culture. Every chance I get, I book a trip to a new country, because exploring new places puts my life into perspective

Jessica Hussong

Why did you decide to study and work in this specific field?

Property and casualty (non-life) – casualty catastrophe modelling, used for pricing, reserving, capital modelling, underwriting and ERM, and reserving for all major lines. I have always excelled in math and I feel as though I have the skills necessary to make a difference and contribute to the overarching benefit of insurance to society.

Which actuarial society are you a member of?

I am an associate of the Casualty Actuarial Society and a member of the American Academy of Actuaries.

Which actuarial fields are most dominant in the USA and why?

Actuaries have traditionally specialised in life, health, retirement, or property and casualty insurance.

The two main professional bodies for actuaries are the Society of Actuaries and the Casualty Actuarial Society (CAS).The latter specialises in either reserving or ratemaking.

Modelling in various areas and enterprise risk management roles are growing quickly across all lines of business.

Tell us a bit about the industry or market that you work and study in?

The company I work for is currently developing the world’s first forward-looking casualty catastrophe model. For a line of business that suffers from a scarcity of data and operates in an environment where the risk landscape shifts after catastrophic events, we are applying a novel approach and new technologies to the problem.

Harnessing data extracted by text-mining peer-reviewed science, it identifies systemic, catastrophic liability risks and provides estimates of future potential loss from mass litigation events arising from such risks. Much like the way in which property catastrophe models changed the property insurance market, casualty catastrophe models can support growth in the casualty space.

What kind of support do students get in your company?

For upper level exams, students are generally allotted 120 working hours to study per exam with all exam expenses paid, including preparation seminars and travel if needed.

The typical rule is that students need to spend 100 hours studying per hour of exam.

Upper level CAS exams are typically four

hours. For the property and casualty track, there are 10 exams, two online modules including multiple choice exams for each and Validation by Educational Experience (VEE) credits that need to be completed before obtaining the FCAS designation.

Is there an actuarial student society in the area where you work?

While we do not have any formal candidate society, Future Fellows is a quarterly newsletter for candidates of the Casualty Actuarial Society and there is an online forum called Actuarial Outpost.

Are you involved in any actuarial activities outside your day job? Tell us about the benefits and challenges I am a member of the Innovation Council for the CAS. We focus on helping them bring innovative thinking to their products and services, while expanding and deepening the innovative roles actuaries play in both existing and emerging areas of practice.

I also volunteer for the University Outreach programme in Southern California. Being a volunteer not only broadens your network within your field, but expands your thinking beyond that of your current role, and gives you the opportunity to influence the course of the profession.

What are the social and economic drivers for actuarial work in the USA? Currently, I am focused on casualty catastrophe modelling. Rating agencies and regulation drive companies to understand and quantify their casualty exposures. With several years of favourable catastrophe losses, companies are faced with market pressure to decrease prices when the underlying risk is abundant and growing.

By harnessing new data sources, companies are able to refine exposure and future loss estimates to drive growth in the insurance market.

What’s the reputation of actuaries and the profession in the USA? How does the professional body try to enhance their image?

No matter the source, being an actuary is consistently rated as one of the best jobs in America. The rigorous examination process

supports the reputation by rewarding dedicated, determined and thought provoking students with entry into the profession. The SOA and CAS require continuing education, and internal initiatives like the Innovation Council of the CAS are created to help keep the actuarial field relevant and adept in our evolving, data hungry world with the growing field of data science.

What are your views on the role of an actuary in the market you work in, now and in the future?

Wherever there is risk, there are opportunities for actuaries. Just as fast as technology is changing, such as automated cars, insurance products need to be innovative and adaptive.

The key is to bring fresh ideas to the traditional actuarial mind-set. While actuaries specialise in insurance analytics and risk to date, I think they will be challenged to occupy more roles within insurance companies, technology companies and other industries than they are today.

In the UK, the skill set of an actuary is being recognised across many nontraditional disciplines. Is this also true of the USA? Yes. I have seen a shift in actuaries not only moving into non-traditional roles, but seeking them out, both within reinsurance companies and outside traditional companies. With the right skill set, actuaries can be beneficial in many fields for those with both soft and technical skills.

I consider my role non-traditional, as I work with economists, lawyers, scientists and software engineers every day, which traditional actuaries do not typically do. Collaboration is key to understanding the underlying risks and expanding solutions to current problems.

What were the influences that shaped your career decisions to date?

The starting influence was my mathematical skillset combined with encouragement, and

my competitive drive to be among the best.

By attending a university strong in actuarial science and risk management, it would have been hard to miss the intersection of business and math that encompasses actuarial science.

I have a desire to be intellectually stimulated in a way that leads to altruistic outcomes.

Working for my current company was an easy decision, fitting that requirement in a much more direct way than most traditional actuarial roles.

Could you tell us about your immediate and longer term goals?

My short-term goal is to get my FCAS and help my company succeed in any way I can.

With my underlying aspiration of making a difference in other’s lives, my long-term goal is to educate and challenge myself to think in ways outside of the norm.

What do you say when asked “What is an actuary”?

An actuary builds mathematical models to put a price tag on future risks, and help prepare for future financial uncertainty.

How did you celebrate the day you qualified?

I climbed Mount Kilimanjaro in Africa because sitting, for what seems like endless hours, at a desk studying for all those actuarial exams makes you quite fidgety.

The International Issue Singapore

I grew up in (not so) sunny Glasgow, Scotland, and studied maths and theoretical physics at the University of St Andrews.

After nearly a decade in London, I relocated to Singapore two years ago to work as a consulting actuary, specialising in employee benefits at Milliman. The location is fantastic for two of my favourite things – travel and food. I get as many weekend trips away in the region as possible

Joanne Gyte

Why did you decide to study and work in this specific field?

I had a summer internship at Hymans Robertson. I loved it and wanted to come back.

Which actuarial society are you a member of?

I am a Fellow of the Singapore Actuarial Society, and also partially regulated through the Institute and Faculty of Actuaries.

Which actuarial fields are most dominant in Singapore and why?

For various reasons, there are not many employer sponsored retirement schemes here.

This is partly cultural, and partly because the social security retirement benefits are good compared to other countries in the region.

Tell us about the market that you work in?

I work across Asia and in the Middle East.

Although employer sponsored retirement benefits are limited in Singapore, there are established defined benefit promises in the wider region, such as Indonesia, Thailand and the Middle East. I work with employers from local companies and mutli-nationals on their long-term employee benefit plans.

Is there an actuarial student society in Singapore? If so, what kind of activities does it organise?

As a fully qualified member I’m not sure – but the Singapore Actuarial Society organises several social events each year. The most recent was a trip to Universal Studios on Sentosa island in Singapore. There are also soft skills-based events like public speaking.

Are you involved in any actuarial activities outside your day job?

Working in a smaller actuarial community, the volunteer opportunities are really accessible.

I co-chair the International Committee and sit on the Retirement Committee for the Singapore Actuarial Society. The International Committee hopes to raise the profile of the Singapore Actuarial Society internationally, and has a proactive relationship with the International Actuarial Association. In the Retirement Committee we contribute to public debate on retirement provision in Singapore. Separately, I recently ran a session on professionalism at the Practising Certificate day for actuaries in the insurance fields.

What are the social and economic drivers for actuarial work in Singapore?

The main driver for employee benefits is compliance requirements for statutory

benefits, but ex-gratia benefits also exist.

With rising longevity and healthcare costs and a decrease in inter-generational support, there are many areas where actuaries could positively influence financial outcomes for individuals.

What’s the reputation of actuaries and the profession in Singapore?

I think we are a recognised and respected professional body. The society works hard to raise its profile through various conferences, committees, and providing input to authorities such as the Central Provident Fund, and the Monetary Authority of Singapore. It also has its own set of professional standards.

What are your views on the role of an actuary in the market you work in, now and in the future?

Despite the demise of DB markets in the West, I think there will always be a role for actuaries in helping facilitate adequate retirement savings, wherever we are based.

The role of DC plans will continue to evolve in many markets as well as the UK. In the UK the skill set of an actuary is being recognised across many non-traditional disciplines. Is this also true of Singapore?

Newer disciplines such as enterprise risk management are as much a buzz-word here as in the UK. However, from what I have seen the concepts are mainly applied in the more traditional areas such as insurance firms.

What were the influences that shaped your career decisions to date?

Like most students I just wanted to qualify and get the exams out of the way. The biggest change was the decision to relocate to Singapore. I wanted to get broader experience and work in less established markets.

Could you tell us about your immediate and longer term goals?

For me it would have to involve leadership in people skills – with client relationships and the internal teams that I work with.

What do you say when asked “What is an actuary”?

An expert in long-term risk management.

How did you celebrate when you qualified?

I qualified in July 2010 in London. Hazy memories involving a long hot summer’s day, good company, cigars and a cheeky McDonalds on the way home.

The International Issue The Netherlands

I was born and live in The Netherlands, and currently work for ASR, Utrecht, as a non-life pricing actuary.

I am a Dutch econometrician, and have studied in Groningen – a student town in the northern part of The Netherlands.

Besides doing fancy calculations, I like to ride my racing bike. I prefer riding in the hills – some are actually called mountains by the Dutch – but since the area around Amsterdam is pretty flat, I am limited to riding against the wind.

Pieter Tjerkstra

Why did you decide to study and work in this specific field?

The application of statistics in the non-life field appeals to me. Pricing, in particular, is a wonderful application of statistics in business.

Which actuarial society are you a member of?

I am a member of the Royal Dutch Actuarial association, the ‘Koninklijk Actuarieel Genootschap’.

Which actuarial fields are most dominant in the Netherlands and why?

Due to the large defined benefit pension funds in the Netherlands, a lot of actuaries are working in pensions. There is some consolidation going on in the pension sector, so there is a shift in movement over to non-life.

Tell us a bit about the market that work in?

Since early June I have been working as a pricing actuary at Ditzo a direct writer for personal insurance. Based on statistical analysis I set the premiums in cooperation with the marketing department. Before that I worked as an actuarial advisor for the Dutch Ernst & Young practice, advising all kinds of Dutch non-life and disability insurance companies.

What kind of support do students get in your company?

My employer generally supports my studies in order to become a qualified actuary. Alongside that there is a talent development program in place, providing a lot of soft skill training.

Is there an actuarial student society in the area where you work? What kind of activities does it organise?

During my time at University I was a member of the econometric study association ‘VESTING’.

All kinds of social and formal activities were organised for and by students.The activities provided the opportunity to get to know the other students, as well as become familiar with career paths and opportunities.

During my study time I was active as a board member of the study association, which was a wonderful experience.

What do you believe are the social and economic drivers for actuarial work in The Netherlands?

That is a difficult question. My personal driver is to be insightful. Discussions in the current field are healthcare costs, low interest rates, solidarity in pensions and big data in insurance.

What is the reputation of actuaries and the profession in the Netherlands? How does the professional body enhance their image?

I think the majority of the Dutch population do not know what actuaries do. A small proportion think that actuaries are intelligent boys and girls. The professional body tries to enhance the image by training and thought leadership publications.

What are your views on the role of an actuary in the market you work in, now and in the future?

Currently actuaries mainly work on reports required by their supervisor. Due to the increase in the amount of available data, I think actuaries are becoming more like data analysts – my recent job shift makes me a perfect example of this.

In the UK the skill set of an actuary is being recognised across many nontraditional disciplines. Is this also true of The Netherlands?

There is a similar trend going on, the new actuary is called the Actuary 2.0. The market demands not only technical skills but also the ability to explain results, and to collaborate with non-actuarial personnel.

What were the influences that shaped your career decisions to date?

My passion for maths and statistics made me want to become an actuary. I started in an advisory role to get a broad view on the possibilities within in the market. I then moved towards pricing as a direct writer. The vast amounts of data available are like a playground to me.

Could you tell us about your immediate and longer term goals?

My immediate goal is to obtain more insight by analysing the available data. In the future I would like to manage a team of actuaries.

What do you say when asked “What is an actuary”?

I ask “What do you think it is?”. When I finish laughing at the funny answers, I tell them that an actuary is a mathematician in insurance and pensions.

How did you celebrate the day you qualified?

I celebrated with a dinner with my parents after the ceremony, then met up with my fellow students to explore Amsterdam.

The International Issue Spain

I was born in Algeria and moved to France just after high school. I studied mathematics and economics in two of the top French engineering schools. I currently live in Madrid, Spain and work at AXA Mediterranean and Latin American Region.

I am passionate about meeting new people and learning about different cultures I am unfamiliar with. For that reason, moving to Spain has been an amazing opportunity. I love travelling, going to the theatre, reading and, more importantly, spending good-quality time with my friends

El Lemdani Mustapha

Which actuarial field(s) do you specialise in?

I am currently working in property and casualty, risk management, and non-life insurance. More specifically on reserving topics.

Which actuarial fields are most dominant in Spain and why?

The most dominant ones are linked to reserving, pricing, and economic capital linked to the Solvency II directive.

Why did you decide to study and work in these specific fields?

I graduated from the French engineering schools École Polytechnique and École des Ponts, which provide multidisciplinary scientific education. I specialised in applied mathematics to finance, computer science and economics.

I also hold a research degree from Université Pierre et Marie Curie in optimisation and game theory. It might seem at odds with conventional actuarial fields; but students with my background usually work in different areas, in both the public and private sector.

I have decided to work in the actuarial field because I really believe in the added value that insurance companies can bring to society; protecting people and their property, as well as protecting companies.

Tell us a bit about the industry or market that you work and study in?

I am working for an international company, on both mature and emerging markets in the EMEA region and Latin America. In these markets, a significant proportion of this business is non-life insurance. Whereas entities in mature markets struggle with the financial crisis, with low growth in very competitive markets, entities in emerging markets see a double digit growth, but in a very flexible environment. In the latter, competition and regulation can be tough – for example, changes in healthcare provided by social security, or regulation on indemnities provided for bodily injury claims or thirdparty liability ones. These changes impact significantly on insurance companies and therefore it is important to be very agile.

Which actuarial society are you a member of?

I am a student member of the Institute and Faculty of Actuaries.

What kind of support do students get in your company?

Being outside the UK, support for students

involved in actuarial studies is not common.

The actuarial title is given after university and therefore only a few people continue their studies while they are working.

Case-by-case support is provided by human resources and managers – helping with exam subscription fees and transportation. Flexible working hours is also a possibility.

What do you believe are the social and economic drivers for actuarial work in Spain?

As mentioned previously, healthcare is definitely a key topic for insurance companies in both mature and emerging markets.

The introduction of ‘Big Data’ will be a game changer – introducing numerous additional variables, and completely changing the relationship with clients, for example, telematics in motor insurance. Actuarial work will have to adapt to these new topics, as they will most probably change the face of the industry, from the clients’ relation to the product design and therefore pricing, reserving, risk assessment and so on.

What’s the reputation of actuaries and the profession in Spain?

The actuarial profession is not very well known in Spain.

What are your views on the role of an actuary in the market you work in, now and in the future?

On the one hand, the role of an actuary is to further strengthen the existence of a ‘risk culture’ in insurance companies and drive the implementation and use of risk-based indicators to follow the business.

On the other hand, and as already mentioned, actuaries will have to adapt to the many transformations society will face, such as the evolution of digital instruments, big data, a shared economy, among others.

Their role is crucial not only for the insurance industry, but also for the public sector, in order to define and regulate for these new challenges and changes society will face.

What were the influences that shaped your career decisions to date?

It started with discussions with people working in the profession, and then, while

working, it continued through regular communication with my immediate managers and some of my colleagues and friends.

These discussions are important because it is a way for me to structure my own thinking and progress as a whole, while debating ‘business as usual’ topics, and learning the best way to do the job. At the same time I can focus on the future, new opportunities and career paths.

Could you tell us about your immediate and longer term goals?

My immediate goal is, to continue learning more about my company and the industry in general. I also want to qualify as an associate of the IFoA. My longer term goal is to be able to add real value either in the insurance industry or in the public sector. I do believe that actuaries have a key role in that.

What do you say when asked: “What is an actuary”?

A mathematician/statistician who is specialised in risks; being able to identify, measure and price them.

How will you celebrate the day you qualify?

I will celebrate with my friends and my family.

The International Issue Hong Kong

I was born and raised here in Hong Kong, and am studying and working for AIA Hong Kong, specialising in life insurance.

To balance my life against all the actuarial work, I like to do things which do not require too much thinking in my leisure time. I seldom read books, and instead, I like to travel and play sports at the weekends

Chi Chung Cheng

Why did you decide to study and work in this specific field?

Your career path can be very narrow if you are not studying life in Hong Kong.

Which actuarial society are you a member of ?

The Society of Actuaries.

Which actuarial fields are most dominant in Hong Kong and why?

Life insurance is most dominant because only a few types of insurance currently exist in the market. General insurance and mandatory provident funds are quite standard and mature so there is not much scope for an actuary. Also, there is no standard pensions scheme in Hong Kong as the government has no plans to support universal retirement protection.

Tell us a bit about the market you work and study in?

I am currently working in vitality, which is the idea of promoting healthy lifestyles and providing attractive benefits for boosting the sales of other insurance products.

I know vitality has existed in the UK for years, but it is new to Hong Kong, and new to many Asian countries.

What kind of support do students get in your company?

It depends on the company policy, as support can differ from one company to another. Most of them will provide study leave and exam fee refunds for actuarial employees. There may also be a salary increment scheme once an exam is passed, but there is no standard incremental rate set by the market for this.

What do you believe are the social and economic drivers for actuarial work in Hong Kong?

I think actuarial work would be driven by pension issues in the foreseeable future.

The proposal of launching universal retirement protection has been raised a couple of times; the only obstacle now is disapproval from the government.

What’s the reputation of actuaries and the profession in your country?

How does the professional body try to enhance their image?

Actuaries in Hong Kong have a very good reputation. However, when it comes to asking someone from a non-actuarial

background, they generally do not know what the job role of an actuary is.

What are your views on the role of an actuary in the market you work in, now and in the future?

New types of insurance products have been introduced in recent years, which has led to actuaries specialising in other areas rather than just life insurance.

Non-insurance companies will also probably start hiring actuaries to invent and modify their products in the near future.

In the UK, the skill set of an actuary is being recognised across many nontraditional disciplines, is this also true of Hong Kong?

Actuaries mainly work in insurance companies. I would expect the role of an actuary to become broader and become recognised in other industries in the near future.

Some actuaries will work in the fields of risk management and investment banking, but they are in a minority, and the skill set of an actuary would not be a key consideration for companies in these sectors.

What were the influences that shaped your career decisions to date?

I love solving problems and turning complicated ideas into simple practices.

Could you tell us about your immediate and longer term goals?

The first goal for me is to qualify as an actuary as soon as possible. After that, I would like to see what else I can do by applying the actuarial skill set in other industries.

What do you say when asked: “What is an actuary�?

An actuary explains, interprets and applies complex ideas into practice.

How will you celebrate the day you qualify?

Take a long trip.

The International Issue Malaysia

I graduated from Heriot-Watt university, in Edinburgh, Scotland, and have worked for two years in the United Kingdom.

I recently returned home to Malaysia to be closer to my family, and am currently working for Prudential Assurance Malaysia Berhad, Kuala Lumpur. I am in the reporting team where my job scope lies largely in statutory risk based capital reporting.

My interests involve weightlifting and eating.

Wee Phin Yap

Which actuarial field do you specialise in?

The life industry.

Why did you decide to study and work in this field?

Initially, when I enrolled onto an A-level course, I wanted to be an engineer; then I found out that many of the other students wanted to be engineers too, and it was too mainstream, so I looked for another career I could pursue.

After doing some research and talking to people, I heard about actuarial science and found the job scope to be very interesting.

I was also told that actuaries are paid well, and it’s a relatively specialised profession, so I enrolled. I soon realised that people had focused too much on the salary rather than the exams involved.

Which actuarial society are you a member of?

Institute and Faculty of Actuaries, UK. Which actuarial fields are most dominant in Malaysia and why?

Life and takaful insurance, since the majority of Malaysians are Muslims

and there is demand for Sharia compliant products.

Tell us a bit about the market that you work and sudy in?

Currently, Malaysians are generally underinsured or not insured, and there is a lack of understanding of insurance products by the general public. However, as the country develops and the middle-working class population grows, there will be an increase in financial awareness. This will create a lot of potential growth in the Malaysian market.

What kind of support do students get in your company?

Students get the standard exam study leave and exam fee reimbursement. This is quite usual among insurers, with varying number of study days.

Is there an actuarial student society in the area you work? If so, what kind of activities does it organise?

There are no specific societies for actuarial students in Malaysia, but there is the Actuarial Society Malaysia (ASM). They organise get-togethers such as movie nights,

as well as talks and training.

What do you believe are the social and economic drivers for actuarial work in Malaysia?

The ever-increasing cost for healthcare and an increase in education and financial awareness would be the key drivers.

What’s the reputation of actuaries and the profession in Malaysia? How does the professional body try to enhance their image?

Generally, actuaries are seen as walking calculators and spreadsheets rather than actuaries – risk managers and problem solvers.

What are your views on the role of an actuary in the market you work in, now and in the future?

Currently, actuaries are mostly found working in insurance companies. As the business environment develops, there will be an increase in the need for risk management and data analysis in order to perform well in any industry. Actuaries will play the role of incorporating these practices into the businesses as they join them, or as consultants.

In the UK, the skill set of an actuary is being recognised across many nontraditional disciplines. Is this true of the market you work in?

Speaking from my company’s perspective, there is a growing number of actuaries who are moving out from the actuarial department into other departments such as risk management, claims management, product development and marketing.

What were the influences that shaped your career decisions to date?

Definitely the people that I have worked with. The level of understanding of risk, and the problem-solving skills that they exhibit inspires me to continuously improve and challenge myself.

Could you tell us about your immediate and longer term goals?

My immediate goal is to qualify as an actuary.

My long term goal would be to use the skills

I have obtained as I progress through my career to lead businesses and organisations.

What do you say when asked: “What is an actuary”?

An actuary is capable of making sense of something when no one else can.

How will you celebrate the day you qualify?

I will take the day off work (if it’s a working day), travel back home to my hometown, and take my parents and grandparents out for a nice meal at a fancy restaurant.