Derek Cribb considers the future for actuaries in terms of global spread and the opportunity that could offer to expand the scope of actuarial sciences. He also introduces Wen Li, lead representative of the Institute and Faculty of Actuaries in China and south-east Asia
A global future
Derek Cribb considers the future for actuaries in terms of global spread and the opportunity that could offer to expand the scope of actuarial sciences. He also introduces Wen Li, lead representative of the Institute and Faculty of Actuaries in China and south-east Asia
Recognising the geographic diversity of our members and fostering a global community of actuaries is at the core of the IFoA's international strategy, so I am extremely pleased to welcome you to this year's international supplement.
At June's IFoA Pensions conference, I was delighted to present a session with Dr Yally Avrahampour from the London School of Economics, which reviewed the development of the actuarial profession and also looked to the future. Many opportunities seem to be emerging outside the UK for actuaries. But the term 'actuary' seems to mean slightly different things in different locations, depending on the maturity and regulatory cultures of different markets. His thorough analysis of historical growth periods of actuarial science showed that in more permissive governance regimes, there was more scope for actuaries to work outside their traditional fields. The stringent regulatory system in the UK means that opportunities could be more restricted, so opportunities for developing a broader profession are likely to be located overseas.
In developing countries, the move from agriculture to manufacture and services brings improved longevity and increased assets, contributing to a marked growth in insurance premiums. As these countries take a greater share of global insurance business, the demand for actuaries can be expected to grow. The BRIC countries of Brazil, Russia, India and China tell a similar story. In Brazil, there are now almost 100 reinsurers; in 2007, there was only one. Similarly, the number of life insurers in India (including joint ventures) has shown steady growth from three in 2000 to over 20 in 2010. These new markets are an enticing opportunity for those willing to take advantage of them.
However, this is not to say that there are not opportunities closer to home - we often talk about actuaries moving into 'wider fields'. In the UK, the convergence of the insurance and banking markets will continue to lead to a greater demand for actuaries in banking. In South Africa and Australia, other opportunities have opened up. In South Africa, employers view banking as a core activity for actuaries. And if we plot the changing practice areas of our membership against Australia, for example, we can see a clear trend. Although there are still lots of roles in traditional areas, one might look to investment banking and investment management as obvious growth opportunities.
With more actuaries embedded in these wider fields, the profession has exemplars for new candidates who are targeting careers outside pensions and insurance, creating a virtuous circle. We must help address the mind-set of employers and candidates in mature markets. It is a challenging task but with an increasingly globalised market we should look to build on advances into wider fields made by actuaries around the world.
To pick up the final point that Dr Avrahampour made at the Pensions conference, new qualifications should help actuarial science to develop. With this in mind, I remain excited about the Certified Actuarial Analyst qualification. If this is approved by our membership, then its broad nature will allow actuaries to cross sector boundaries and ensure that we continue to advance the scope of actuarial science in accordance with our Royal Charter.
The Institute in China and SE Asia, by Wen Li
When I took up the role of lead representative of the Institute and Faculty of Actuaries (IFoA) in China and south-east Asia three months ago, I realised it was going to be different from any actuarial roles I had undertaken in the past.
In the capacity of this role, I am looking after the IFoA's interests in China, Hong Kong, Singapore and Malaysia. My priorities include developing links with universities; encouraging a vibrant member community as well as building links with employers, local associations and regulators. I would like to ensure that members in the region feel a part of our global community and that our expertise can influence and boost the local markets.
We are currently organising quarterly member events in Beijing and Shanghai and have set up a mentoring system for our student actuaries. I'm also trying to help Fellows in the region to build technical links with Fellows in the UK.
Please get in touch to discuss any ideas: [email protected] or (0086) 138 1098 1647.