The Actuary International July 2015

8/17/2019 The Actuary International July 2015

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Actuaries on the move

Be aware of frequentlychanging immigrationrules in a globalemployment market,says Tim McMahon

NigeriacallingLaura Llewellyn-Joneslooks at the benefitsand risks of workingin the pensions andinsurance sectors

Great strides inUS pensionsMatthew Seymourcompares pensionrisk managementin the US to thatin the UK

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The International

Issue

Contents

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

A world to gain

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 10years. 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 indeedthose 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 Asiaconference 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 offi ces 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 communicationskills, our members are regarded very highly

by employers. An independent survey in South

Actuary profiles

Q&A: United Kingdom

Jonathan Allenby had a variedcareer before deciding to becomean actuary

Q&A: IndiaRoopal Shard’s favourite pastimesinclude reading about theoreticalphysics, and singing

Q&A: GreeceNikolaos Kefallinos enjoys music andarts, and playing basketball with friends

ONLINE

Q&A: The NetherlandsPieter Tjerkstra

Q&A: SingaporeJoanne Gyte

Q&A: United States of AmericaJessica Hussong

Q&A: South AfricaFrancis Kocks

Q&A: BrazilLeonel Rodrigues Lopes Junior

Q&A: SpainEl Lemdani Mustapha

Q&A: South AfricaJoshay Harkoo

Q&A: IndiaCarl Anthony

and many more...

EditorKelvin [email protected]

International features editorAreti [email protected]

Managing editorSharon [email protected]+44 (0)20 7880 6246

Display salesVlad [email protected]+44 (0)20 7324 2726

Recruitment salesEmmanuel [email protected]+44 (0)20 7880 6234

Design / picturesGene Cornelius / Akin Falope

Sub-editorsKathryn ManningCaroline Taylor

ProductionRachel Young+44 (0)20 7880 6209

Circulation 25,331(July 2013 to June 2014)


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The International

Issue

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 overseasopportunities need to be aware

of frequently changing

immigration rules

Actuaries onthe move

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 occupationof ‘actuary’. So this can include actuarial

graduates, part-qualified actuaries or fully


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 time-

consuming 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 points-

tested 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 outsetwithout needing an offer of employment.

It can be seen that many actuaries


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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 beconsidered 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. Sucha 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 intra-

company 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 workersincreases 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:

●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 ina civil partner/unmarried partner relationship

with an EU national.

Educational qualifications

Diploma / trade qualification 10 points

Bachelor degree / Masters degree 15 points

Doctorate degree 20 points

Age

18-24 (inclusive) 25 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

“The main advantage

to skilled independentmigration is that it

allows the applicant

to secure full

permanent residence

at the outset without

needing an offer of

employment”

Tim McMahon is an immigration adviser with

Commonwealth Immigration Consultants:

www.commonwealthimmigration.com .Contact the organisation through its website

for any assistance with immigration

Australia’s skills assessment points

system for independent migration

GETTY


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The International

Issue

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

Makinggreat strides

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) hasbecome 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 ismaking buyouts appear more attractive:

annuity providers already use equivalent

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 andso 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 amore credible way, but also with the other

advisors the plan may be involved with.

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 de-

risking flight plans that use these analytics to

better monitor their evolving positionand decide when to execute changes

in strategy.


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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 pensionactuaries 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 thatincludes 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.

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8/32

NigeriacallingLaura Llewellyn-Jones describes the opportunities,

benefits and risks of working in a country withunderpenetrated insurance and pensions sectors


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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 issuessuch 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 forthe 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 hersalary, she puts money each month into her

mother’s bank account in order for her to buy

and create jobs and is keen to bring in more

international businesses – particularly when it

comes to diversifying the Nigerian economyand 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 wantand 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.

food. She has never considered paying for a

private pension. If she does not have children

herself who could support her in retirement, sheintends 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 andcommunication 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 hasimproved. 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 offi ce on 29 May 2015. The atmosphere inAbuja is still full of optimism and excitement.

He has vowed to tackle corruption, insecurity

The International

Issue

Laura Llewellyn-Jones

Laura Llewellyn-Jones is an independent

actuarial consultant in Africa

ALAMY


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The International

Issue

Spotlight

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 ofprobability.

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 lifedegenerates hilariously and rapidly to

such an extent that at one point he tries

Let the dicedecide

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 thismonth 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

hardenedcriminal 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 Offi ce fame who threw half the

CVs he had to look at straight in the bin onthe 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


11/32

The international actuaryThe actuarial profession is recognised worldwide

as a leading player in promoting professionalism,

developing educational standards and encouraging

research within the f inance 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 f ields of practice, such as banking, riskmanagement 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 theirown homelands.

IN ASSOCIATION WITH

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


12/32

The International

Issue

United Kingdom

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

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 bigconsultancies and many of the major

insurers in the UK.

JonathanAllenby

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.


13/32

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


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 andthe profession in the UK?

Amongst those who know us, there is a lot

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 thisperception, 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 diffi cult 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 andwork 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 therelevant 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!


14/32

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.


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-of-

service-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 veryhighly regarded in India. It is also

recognised by the IFoA.

The IAI exams are extremely diffi cult 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.



and in the future?

I think the role of an actuary has become

quite important in the field of end-of-

service-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 jobsin challenging areas such as

investment banking, financial risk

management and enterprise

risk management.



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.


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 youqualify?

I will take a really long vacation.

RoopalShard

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 non-

government 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

The International

Issue

India


15/32

NikolaosKefallinos

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



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.


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.


the area where you work?

Not a student society as such, but there

is the Hellenic Actuarial Society which

established the profession in Greece.



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 notabledevelopment, which is expected to increase in

the near future. Similarly, the pension system

is expected to be restructured, which in

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.



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.



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.



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.


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.

The International

Issue

Greece


16/32

The InternationalIssue

India

Which actuarial field(s) do you specialise

in?

I specialize in the health and the non-life

insurance domain primarily on the pricing side



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 meintrigued into pursuing this degree.


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.


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 havea 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 themarket?

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


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

CarlAnthony

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.


17/32

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 thatconstituted 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.



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 doesthe 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: propertyand 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 affectour industry and practices

are discussed and debated with

religious-like fervour.



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 non-

traditional 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.



Having pursued my masters degree in

actuarial science helped me a lot to takeinformed 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.



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 moredata 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 embarkon an actuarial journey.


18/32


Brazil

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 healthcareis 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.


member of?

I am a member of the Brazilian Institute of

Actuaries (IBA).


in Brazil and why?

Life and health fields are becoming moredominant 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 evenprevented. 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 ActuarialScience course offered by Cass Business

School. As this course offers exemptions for

LeonelRodriguesLopes

Junior

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


19/32

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.


the area where you work? What kind ofactivities 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.

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.


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 theirretirement 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

people are

becoming aware

of what we do and

how important our

role is in protecting

their future.

What are your views on

the role of an actuary in themarket 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.

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.



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.



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.


an actuary”?

After searching for years for a simple answerto 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.


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South Africa



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.


member of?

The Actuarial Society of South Africa (ASSA)

Which actuarial fields are most dominantin 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 setis acknowledged and valued in alternative

positions.


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 SouthAfrican economy being sluggish since the

2008 recession, the life insurance industry has

still managed to release promising results.


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 consistentas the study policy is a large factor in attracting

and retaining the best actuarial students.

JoshayHarkoo

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.


21/32


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 withthe 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.



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 byregulators 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 andis regularly consulted on

government economic policy and

intended changes – these types of

activities help develop and enhance the

professions image.



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 ofthe specialist exams , as well as the enterprise

risk management subject which was added a

few years ago.



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.



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 withrisk 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 methrough my development to reach this

significant milestone.


22/32


United States of America



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.


member of?I am an associate of the Casualty Actuarial

Society and a member of the American

Academy of Actuaries.


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 riskmanagement roles are growing quickly across

all lines of business.


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 providesestimates 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.


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 tospend 100 hours studying per hour of exam.

Upper level CAS exams are typically four

JessicaHussong

I was born in the United States of America and currently work for

Praedicat in Los Angeles, California. I qual

Documents

The Actuary International July 2015