Soat professionalism english

The Actuary and Professionalism Origins, Mission and Recognition of the Society of Actuaries of Thailand (SOAT) • • • • • •

Founded in 1975. Original Bylaws in place and no restructuring to date.

To provide programs for continuing education, to support research and to provide a forum for discussion of actuarial issues.

Profession is little known. Handful of internationally qualified actuaries among our membership.

No proscribed role for the Society of Actuaries in current insurance regulations.

Link with other actuarial associations in the region. Participate in EAAC. More a Social Society than a Professional Body quite similar to the historical developments of actuarial societies in the region. However, in the last ten years the actuarial associations of neighboring countries such as Malaysia and Singapore have transformed into true professional bodies. This resulted from regulatory changes to the qualification of actuaries, role and responsibilities of actuaries and actuarial associations. Singapore and Malaysia require actuaries practicing in their countries to be members of their national association and at the same time have received their educational and professional qualifications from internationally recognized actuarial associations only.

Role of Actuaries Globally • •

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Actuaries are the multi-skilled thinkers trained in the theory and application of mathematics, statistics, economics, probability and finance. They are the financial architects in the insurance business.

In life insurance, governments around the world have accorded actuaries the statutory authority to certify that life insurance companies have sufficient resources to meet obligations of policy holders. They also have the primary role in areas of pricing, product design etc.

In general insurance actuaries are deeply involved in the areas of pricing analysis, establishing claims reserves, and structuring reinsurance programs. Increasingly, actuaries are involved in modeling techniques to help general insurers plan for and address natural disasters and effect of climatic changes.

In the areas of health insurance, actuaries assist insurers meet their financial obligations in environment of ever-increasing costs of medical care and accelerating demand for coverage.

In the areas of Employee Retirement and Benefit Plans, actuaries make recommendations on the adequacy of funding levels for pension plans and provide statutory certifications to support pension and benefit plan legislation in countries around the world.

Actuaries also are involved in many areas of investment and finance services, such as the design of investment products that incorporate insurance elements, analysis of mortgage portfolios and lending risks and project investment returns and various future-based model scenarios.

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Actuaries and Public Policy • •

Actuaries take seriously their responsibility to public and recognize that their blend of skills can be enormously beneficial when applied to general public group.

Through their national association, actuaries provide assistance to national and regional governments, analyzing legislative and regulatory proposals, advising on social trends and suggesting solutions to a wide range of social problems.

Importance of Professionalism • • • • • • •

Actuaries recognize and appreciate the exceptional degree of public trust that is bestowed upon it.

Accordingly, the profession acknowledges its corresponding responsibility to fulfill its duty to the public by maintaining a high level of professionalism among its members.

Candidates must meet successfully complete rigorous educational programs and achieve significant levels of appropriate experience before being admitted to membership in the actuarial profession.

They are required by their membership organizations to meet high standards of professional integrity and competence.

They must comply with exacting standards of practice developed by experienced practitioners to guide actuaries in conducting their complex analyses.

Actuaries who do not comply with the standards of their profession are subject to discipline by their membership organization The establishment of the maintenance of uncompromising professional standards helps actuaries maintain their reputation for being responsible, competent, objective and ethical.

What is required for the SOAT to contribute to the fulfillment of the Thai Insurance Industry Master Plan (2549-2554) 1. The SOAT needs to be restructured to be a Professional Body that: • Represents comprehensively actuaries practicing the profession in Thailand both in life and non-life insurance.

• Ensures the development of technically competent and professionally reliable actuaries.

• Ensures that public interest is served 2. Work closely with Regulators to introduce legislative changes on who may be admitted to membership in the actuarial profession, in defining the actuary’s roles and responsibilities and to consider the appropriate role for the Society of Actuaries of Thailand in the equation.

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3. Seek support from the International Actuarial Association (IAA) to help SOAT develop into a full member of the IAA. In order to be a full member of the IAA, the SOAT needs to develop and implement: • Articles of Incorporation (already exists) • Code of Professional Conduct • Formal Discipline Process • Recommended Standards of Practice if standards of practice process exists or is introduced • Implement and maintain education requirements in accordance to IAA guidelines Hong Kong, Indonesia, Japan, Singapore, Malaysia, Philippines are all full members of the IAA

Conclusion In my personal opinion, to build the capacity of insurance companies and regulators in accordance with the Thai Insurance Development Master Plan, it is necessary to set an uncompromisingly high professional standard for actuaries. A standard less than that of an internationally recognized actuarial association or the IAA would compromise the competitiveness and stability of insurance companies in Thailand in the long run.

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The Actuary and Professionalism