the actuarial profession in insurance renata de leers, executive director, actuaries without...

The actuarial profession in insuranceRenata De Leers, Executive Director, Actuaries Without Borders, IAA SectionActuary IA|BeQueenie Chow AIAA, Associate Actuary, ACB Consulting, Lomé, Togo (Melbourne, Australia)AIO Life Seminar, 25-27 November 2015, Lomé (Togo)

AIO Life Seminar, Lomé Togo, 25-27 November 2015

2 Actuaries: who they are and what they doUARIES – What The Do and Where They Practice

WHAT IS AN ACTUARY?Actuaries are highly qualified business professionals who analyze the financial impact of risk for organizations like insurers; pensions fund managers, and more. Governed by rigorous standards of practice, they apply their mathematical expertise to forecast and minimize financial uncertainty.

WHAT DOES AN ACTUARY DO?Actuaries design and develop ways in which to manage risk. This requires a combination of strong analytical skills, business knowledge, and understanding of human behaviour to manage the complex risks facing our society.


3 List of activities of the actuarial profession

Evaluate the likelihood of future events; Design creative ways to reduce the likelihood of undesirable events; Decrease the impact of undesirable events that do occur; Assist in the scientific analysis and quantification of risks; Measure, manage, and mitigate risks; Establish premiums, policy and claim liabilities, and appropriate capital levels; Assess financial security systems; Evaluate pension plan liabilities; and Determine the level of contributions required to finance pension, health care,

and social insurance programs.


4 Who needs an actuary?

WHO NEEDS AN ACTUARY?Many companies, organizations and agencies employ actuaries: Banks; Life insurance companies; Property and casualty insurance companies; Employee benefit consulting firms; Universities-teaching actuarial studies and undertaking research; Government agencies; Organizations that have oversight roles; Other financial institutions; and The public, and customers and users of all of the above.


5 Organisation of the profession worldwide: International Actuarial Association (www.actuaries.org)

The IAA is the worldwide organisation representing professional country-level actuarial associations.

IAA Vision

The actuarial profession is: Recognized worldwide as a major player in the decision-making process within the financial services industry in

the area of social protection and in the management of risk Contributing to the well-being of society as a whole.

IAA Mission To represent the actuarial profession and promote its role, reputation and recognition in the international

domain to promote professionalism, develop education standards and encourage research, with the active involvement

of its Member Associations and Sections, in order to address changing needs


6 Ensuring the quality of the work

Qualifications: who is an actuary? Professionalism (ISAPs, ethics code, deontology, junior and senior levels) Continuous professional development (mandatory in most FMAs,..) Regulation and supervision


7 3 out of 4 good governance functions need actuaries (ICP8): AF, RM and IA Function Actuarial Function: at least following tasks:

Coordination and review of the actuarial liaibilities (A.L.) Methods, assumptions and data:

Appropriateness of methodologies, assumptions and models Sufficiency and quality of data used in evaluation of A.L. Compare best estimates against experience

Reporting requirements: Express an opinion on underwriting and reinsurance policies Inform on the reliability and adequacy of A.L.

Contribute to risk management system with respect of risk modelling and to ORSA Risk Management Function: 60 % of CRO’s are actuaries (CERA) Internal Audit function


8 Actuarial Function / Appointed actuaryRelations between Acturial Function, Appointed Actuary and External Auditor

Actuarial Function: usually internal function (but can be externalised) AA: Comparable with the ‘external accountant’: ‘usually’ established by

regulations Always a qualified actuary Internal/external Also ‘whistleblower’ in some jurisdictions Preparation of the financial condition report, certification of new products or amended

products, etc. Issues paper on ‘role and relation between the Actuary and the External Account

in the preparation and audit of the financial report’ from IAIS (October 2009)


9 What role should actuarial profession play in microinsurance? MI is a relatively new field for actuaries – the role is still being debated… Role is largely driven by product complexity. Examples levels of actuarial

involvement.


10

Questions?

Thank you !

the actuarial profession in insurance renata de leers, executive director, actuaries without...

Documents