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
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 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.
