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The Actuary The magazine of the Institute & Faculty of Actuaries

Indian actuaries in demand

According to local press reports, business process outsourcing (BPO) companies such as Infosys BPO, Patni’s BPO arm, EXL Services and Genpact are increasing their focus on providing high-end actuarial services to insurers in the US and UK. The Indian IT companies, which have until now been providing back-office services, are now planning to provide actuarial valuations.

“One of the key reasons for work coming to India, other than mature practices, is the shortage of skill-sets. An actuary in the US with five or six years’ experience will receive a package of $150 000 to $250 000 and an actuarial student will draw about $70 000 to $125 000. When the same work comes to India, the cost saving is almost half,” said a Genpact spokesperson.

On the other hand, Indian insurance firms, which need actuaries to help develop products, assess profits, conduct valuation and reinsurance based on historic statistics, have only half the number of specialists they need, according to R. Kannan, member of the Insurance Regulatory and Development Authority (IRDA). “There are 225 actuaries in India compared with a requirement of at least 400 at present, and many of them are close to retirement,” he said. “Demand for the specialised talent will only grow as more Indians opt for insurance.”