state of the profession study (phase 1) · 7 summary: industry participation actuaries are widely...
TRANSCRIPT
State of the Profession Study (Phase 1)
Report highlights
From 2010 to 2015, the number of fully qualified actuaries (FQAs) grew at an annual rate of over
5% on average. Changes in the regulatory environment and economic growth increased the
demand for actuaries in the job market (although the impact of the latter was muted in Europe).
Actuaries are widely employed in life insurance, pensions & retirement, general insurance and
consulting industries where they perform a range of tasks including, but not limited to, product
development, pricing, regulation, reinsurance, modeling, forecasting, cash flow testing, and
reserving.
Data analytics and business intelligence is seen as an emerging area of responsibility for
actuaries, by half of associations surveyed. Other promising areas include Enterprise Risk
Management (ERM) and Risk Capital Management. Associations plan to optimize these
opportunities by raising member awareness of them, and enhancing member skills through
education and training. Associations will also reach out to industry partners, regulators and
other actuarial groups to collaborate in new ways that will highlight actuarial talent.
Actuaries enjoy strong reputations with their employers and regulators for excelling in a range of
highly-valued skills, such as attention to detail, quantitative ability, problem solving,
trustworthiness and industry knowledge. To a lesser degree, they are also seen to demonstrate
business acumen. Based on this skill set, their education and experience, actuarial pioneers have
successfully transitioned into emerging roles in pricing analytics, business intelligence,
investments and asset liability management.
However, actuaries in general are perceived by employers to lack effective communication and
interpersonal skills. IAA members consider these particular ‘soft skills’ to be essential in
positioning actuaries as influential advisors and in transitioning them into senior leadership roles
and newer non-traditional jobs.
The greatest challenges and threats to the profession arise from the loss of traditional actuarial
work, competition from non-actuaries, regulatory changes and the public’s low familiarity.
These challenges are prompting organizations to focus their resources on educating their
professionals to improve their competitiveness against statisticians, data scientists and others.
Efforts are also underway to collaborate with partners from industry, government and other
actuarial groups to promote the actuarial skillset and to reposition actuaries for emerging roles.
Fully 84% of associations have established a code of conduct that sets out their actuarial
responsibilities to the public, clients and profession. A majority have also laid out qualification
standards, detailing requirements for education and/ or experience as well as standards of
practice, which offer a framework for the performance of professional assignments.
Examination by an actuarial organization or completion of university coursework are leading
methods of qualification. About three-quarters of associations (74%) report that their
professionals are required to participate in continuing professional development to maintain
their actuarial status.
STATE OF THE PROFESSIONPHASE ONE SURVEY REPORT
Prepared for:
The International Actuarial Association’s State of the Profession Project Task Force
August 2016
2
ObjectivesTo help create a global roadmap for IAA member organizations to see where they stand in relation to peers in terms of:
Actuarial employment by industry
Tasks performed by actuaries
Professional reputation of actuaries
Opportunities and challenges facing the profession
Education of actuaries
3
Methodology Online survey conducted by Society of Actuaries’
Market Research department
Fielding period: April 24 – July 1, 2016
Respondent sample:
Invitations were sent to 94 full and associate members of the IAA
47 full and associate members, based in 43 countries, from four global regions, completed the survey (50% response rate)
4
Geographic and Economic Groupings Number of participating IAA members, by base country’s geographic region:
Africa – 6
Americas – 9
Asia and Oceania – 9
Europe – 23
To reflect economic diversity within geographic regions, countries are also categorized using the World Bank’s analytical classification1 of the world's economies
Number of participating IAA members, by base country’s income level:
High-income economies – 31
Middle-income economies 2 – 16
1 World Bank. Country classifications by income level : Each year on July 1, the analytical classification of the world's economies based on estimates of gross national income (GNI) per capita for the previous year is revised. As of 1 July 2016, low-income economies are defined as those with a GNI per capita, calculated using the World Bank Atlas method, of $1,025 or less in 2015; lower middle-income economies are those with a GNI per capita between $1,026 and $4,035; upper middle-income economies are those with a GNI per capita between $4,036 and $12,475; High-income economies are those with a GNI per capita of $12,476 or more. http://blogs.worldbank.org/opendata/new-country-classifications-2016. 2 In this report, for simplicity, fourteen upper and lower-middle economies together with two low-income economies are collectively grouped as middle-income.
5
Summary
6
Summary: Demographics
47 organizations representing over 67,000* fully qualified actuaries (FQAs) in 2015
From 2010 to 2015, the number of FQAs grew at an annual rate of over 5% on average, across the associations surveyed. IAA members based in Europe and Africa experienced above average member growth during this period.
The majority of organizations (70%) report having professionals who reside outside the country they are headquartered. This is seen in associations of varying size in every region. The proportion of ‘expatriates’ employed within or outside their geographic region is unknown.
Professional membership in multiple actuarial organizations is most prevalent in the Americas region and lowest in Europe.
* Note: Overlapping memberships reported
7
Summary: Industry Participation
Actuaries are widely employed in life, pensions & retirement, general insurance, and in other industries, notably consulting services.
A small percentage of actuaries worldwide are employed in investment management and banking. The highest share in a region is seen in Africa.
Four-in-ten associations (39%) consider Information Technology and Data Analytics to be an emerging area of employment for actuaries in the country they are based. Organizations report:
The success of pioneers in creating value for firms leading to demand for actuarial talent
That traditional actuarial skills (e.g. quantitative skills) are transferable to pricing analytics and business intelligence
8
Summary: Current and Emerging Actuarial Tasks
Product development, pricing and management of actuarial departments are the most widely performed tasks for actuaries, as reported by over 90% of associations
Just over two-thirds of associations (68%) report having actuaries in executive management (e.g., CEO, CFO, Chief Risk Officer), outside of the actuarial function
In general, associations based in High-income countries report broader involvement of their professionals in a range of tasks, including teaching, financial reporting, underwriting and Information Technology as compared to those in middle-income economies
9
Summary: Current and Emerging Actuarial Tasks
Consistent with views on developing opportunities in the Information Technology and Data Analytics industry, half of associations (49%) report that Data analytics (e.g., predictive modeling) and business intelligence are emerging areas of responsibility for actuaries
About four-in-ten associations (44%) believe that enterprise risk management is a promising area for actuaries. A majority of organizations based in High-income countries (58%) share this view.
10
Summary: Employer Perceptions of Actuaries
There is near-universal belief among associations that employers would rate actuaries’ quantitative skills and attention to detail as “excellent” or “good” (96%). Fully 91% of associations share this view of actuaries’ problem solving ability, while 87% rate them highly for their trustworthiness. This suggests a widespread appreciation of these actuarial strengths.
However, just over one-quarter of organizations (28%) believe that employers would rate actuaries’ communication or interpersonal skills as good or better. This too indicates wide acknowledgement of the professions’ weak spots.
A majority of associations (57%) believe that it is important for actuaries to develop communication skills. This is seen as a key step in:
Remaining competitive with other professions
Securing positions in senior leadership
Breaking into new roles
11
Summary: Biggest Opportunities / Optimizing Opportunities
Data analytics and risk management top the list of the biggest opportunities for actuaries over the next five years. Almost three-quarters of associations based in High-income nations (73%) believe that demand for actuarial talent will grow in the data analytics field.
The majority of associations (74%) will use education and training to optimize opportunities over the next five years. Over one-quarter of organizations (28%) will seek to raise awareness of these opportunities with their stakeholders. Others will reach out to industry partners, regulators and other actuarial groups for collaboration. A few mention that they will create strategic plans to help focus their resources on these opportunities.
12
Summary: Greatest Challenges & Threats / Managing them
Loss of traditional actuarial work, competition from other professionsand regulatory changes are seen as key challenges over the next five years, by almost one-third of associations.
Organizations warn of the potential disappearance of traditional actuarial jobs due to the decline of defined benefit pensions; advent of disruptive technologies; Perceived narrow actuarial skillset; and Insurance industry consolidation
Low awareness of the profession and the need to maintain or improve its reputation in light of competition are noted as challenges by one-in-five associations
Associations plan to educate and train their professionals, to help them stay competitive
Several associations plan to counter lost/ losing ground by raising awareness of the actuarial skillset to new and existing audiences. Others will work closely with regulators, industry groups and other actuarial bodies to help reposition their professionals.
13
Summary: Education
The majority of responding associations have established a code of conduct for their professionals
Codes of conduct and qualification standards are almost universal among associations based in High-income nations
Examination by an actuarial organization or completion of university coursework are leading methods of qualification
Almost three-quarters of associations (74%) report that their professionals are required to participate in CPD to maintain their actuarial status
14
Industry Participation
15
Actuaries are widely employed in life, pensions & retirement, general insurance, and in other industries, notably consulting services
Using your best estimate,
what percentage of your
actuaries are employed in
the following industries?
ALL
(47)
Africa
(6)
Americas
(9)
Asia &
Oceania
(9)
Europe
(23)High-income
(31)
Middle-
income
(16)
Life 29% 32% 25% 41% 33% 29% 33%
Pension & Retirement 21% 18% 21% 14% 23% 21% 15%
Property & Casualty or
General Insurance13% 14% 9% 19% 18% 13% 16%
Health 13% 10% 19% 1% 5% 13% 9%
Investment Management 3% 8% 2% 4% 4% 3% 7%
Banking 2% 5% 3% 3% 1% 2% 4%
Regulator or Public Sector 2% 1% 2% 2% 1% 1% 2%
Information Technology and
Data Analytics1% 1% 1% 2% 1% 1% 1%
Natural Resources, Utilities
and Energy0% 1% 0% 1% 0% 0% 1%
Private Equity 0% 1% 0% 0% 0% 0% 1%
Other Industries, including
Consulting16% 10% 18% 13% 13% 16% 11%
Percentages are based on estimates of the number of actuaries employed by industry, in each region and group
16
Four-in-ten associations (39%) consider Information Technology and Data Analytics to be a new or emerging area of employment for actuariesOf the industries listed below,
which do you consider to be new
or emerging areas of
employment for actuaries?
Total
(36)
Africa
(5)
Americas
(7)
Asia &
Oceania
(7)
Europe
(17)
High-
income
(26)
Middle-
income
(10)
Information Technology and Data
Analytics39% 40% 43% 43% 35% 42% 30%
Investment Management 22% 40% 29% 29% 12% 23% 20%
Property & Casualty or General
Insurance19% 20% 0% 14% 29% 23% 10%
Other Industries, e.g. Risk
Management19% 0% 29% 29% 18% 27% 0%
Health Insurance 17% 0% 29% 14% 18% 23% 0%
Banking 17% 40% 14% 14% 12% 8% 40%
Pensions and Retirement 14% 0% 14% 0% 24% 19% 0%
Regulator or Public Sector 11% 0% 14% 29% 6% 8% 20%
Life Insurance 8% 0% 0% 29% 6% 0% 30%
Private Equity 6% 40% 0% 0% 0% 0% 20%
Natural Resources, Utilities and
Energy0% 0% 0% 0% 0% 0% 0%
Percentages are based on respondents (i.e., not counting missing responses)
17
How actuaries transitioned into new and emerging industries
Information Technology and Data Analytics
Personal initiative and ambition
Initial pioneers created value for firms and consequently actuarial expertise has been in demand
Quantitative skills have been applied to pricing analytics and business intelligence in telecommunications
The expansion of available data and tools for analyzing this data has led to a natural integration of these skills into actuarial work
Technical skills that actuaries developed in insurance are transferrable and can be applied to data analytics
Actuaries received training in this area from their association and/ or employer
18
Investment Management
Initial pioneers created value for firms and consequently actuarial expertise has been in demand
Technical skills that actuaries developed in insurance are transferrable and they are now well established in the asset liability management field
University training in investments field has enabled actuaries to transition
Mismanagement and investment losses in pension funds and new regulatory requirements triggered demand for actuarial talent
Some actuaries working on defined benefit plans, which require asset management, have transitioned into jobs on the asset side
How actuaries transitioned into new and emerging industries
19
Property & Casualty or General Insurance
Regulation/ legislation mandating actuarial employment
University training in both life and non-life areas allows for actuaries who are versatile
International experience has helped actuaries transition
New solvency rules are spurring demand for actuaries
Health Insurance
Regulation/ legislation has increased demand for actuaries
University training in both life and non-life areas allows for actuaries who are versatile
International experience has helped actuaries transition
New solvency rules are spurring demand for actuaries
How actuaries transitioned into new and emerging industries
20
Current and Emerging Actuarial Tasks
21
Just over two-thirds of associations (71%) report having actuaries in executive management, outside of the actuarial function
41515
1921212121
2427282929303131323232
35353636
38414141
0 10 20 30 40 50
Other, please specify:
Expert Witness
Marketing
Accounting
Information Technology (e.g., programing, software development)
Financial advising for corporate structures, mergers & acquisitions
Non-executive directors (i.e., Board Directors not part of the executive…
Strategy formulation
Auditing
Investments
Operational Risk Management
Financial Reporting
Underwriting
Teaching/ Research
Risk Capital Management
Planning - Strategic and Financial
Data analytics (e.g., predictive modeling) and business intelligence
Enterprise Risk Management
Executive Management (e.g., CEO, CFO, Chief Risk Officer)
Modeling, forecasting, cash flow testing
Reserving
Asset Liability Management
Reinsurance
Regulation
Management of Actuarial Department or Function
Pricing
Product Development
Axis Title
Axis
Title
Tasks Performed by Actuaries
# of orgs indicating task is performed
22
Product development, pricing and management of actuarial departments are the most widely performed tasks, as reported by over 90% of organizations
In which of the following tasks
are your members currently
involved?
Total
(47)
Africa
(6)
Americas
(9)
Asia &
Oceania
(9)
Europe
(23)
High-
income
(31)
Middle-
income
(16)
Management of Actuarial Department
or Function 91% 83% 89% 78% 100% 97% 80%
Pricing 91% 100% 78% 89% 95% 90% 93%
Product Development 91% 100% 67% 100% 95% 90% 93%
Regulation 84% 83% 78% 89% 86% 90% 73%
Asset Liability Management 80% 50% 100% 89% 76% 93% 53%
Reinsurance 80% 50% 67% 78% 95% 87% 67%
Modeling, forecasting, cash flow
testing 78% 33% 89% 78% 86% 93% 47%
Reserving 78% 50% 67% 78% 90% 87% 60%
Data analytics (e.g., predictive
modeling) and business intelligence 71% 67% 78% 78% 67% 77% 60%
Enterprise Risk Management 71% 67% 56% 67% 81% 90% 33%
Executive Management (e.g., CEO,
CFO, Chief Risk Officer) 71% 50% 56% 78% 81% 83% 47%
Planning - Strategic and Financial 69% 67% 56% 78% 71% 80% 40%
Risk Capital Management 69% 50% 44% 78% 81% 83% 80%
Percentages are based on respondents (i.e., not counting missing
responses)
23
In which of the following tasks
are your members currently
involved?
Total
(47)
Africa
(6)
Americas
(9)
Asia &
Oceania
(9)
Europe
(23)
High-
income
(31)
Middle-
income
(16)
Teaching/ Research 67% 67% 56% 56% 76% 80% 47%
Financial Reporting 64% 33% 44% 67% 81% 80% 40%
Underwriting 64% 67% 56% 67% 67% 67% 33%
Operational Risk Management 62% 50% 67% 78% 57% 70% 60%
Investments 60% 83% 67% 78% 43% 63% 47%
Auditing 53% 17% 67% 56% 57% 60% 53%
Financial advising for corporate
structures, mergers & acquisitions 47% 33% 44% 78% 38% 57% 40%
Information Technology (e.g.,
programing, software development) 47% 17% 33% 56% 57% 60% 20%
Non-executive directors (i.e., Board
Directors not part of the executive
management team)47% 33% 33% 56% 52% 57% 27%
Strategy formulation 47% 50% 44% 56% 43% 57% 27%
Accounting 42% 17% 56% 67% 33% 53% 27%
Expert Witness 33% 17% 67% 44% 19% 43% 20%
Marketing 33% 17% 44% 67% 19% 47% 13%
In general, associations based in High-income countries report broader involvement of their members in a range of tasks, including teaching, financial reporting, underwriting and IT as compared to those in Middle-income economies
Percentages are based on respondents (i.e., not counting missing
responses)
24
New and emerging areas of responsibility for actuaries
1
1
1
1
1
1
2
2
2
2
3
4
5
5
5
7
7
8
9
11
17
19
0 5 10 15 20
Financial advising for corporate structures, mergers & acquisitions
Financial Reporting
Planning - Strategic and Financial
Product Development
Regulation
Reinsurance
Auditing
Pricing
Strategy formulation
Other, please specify:
Teaching/ Research
Management of Actuarial Department or Function
Executive Management (e.g., CEO, CFO, Chief Risk Officer)
Information Technology (e.g., programing, software development)
Non-executive directors (i.e., Board Directors not part of the executive…
Asset Liability Management
Investments
Operational Risk Management
Modeling, forecasting, cash flow testing
Risk Capital Management
Enterprise Risk Management
Data analytics (e.g., predictive modeling) and business intelligence
Axis Title
Axis
Title
New and emerging tasks performed by Actuaries
Figures based on responses by organization
25
Half of associations (49%) view data analytics and business intelligence to be an emerging area of responsibilityOf the tasks listed below, which
do you consider to be new or
emerging areas of responsibility
for actuaries?
Total
(39)
Africa
(6)
Americas
(8)
Asia &
Oceania
(9)
Europe
(16)
High-
income
(26)
Middle-
income
(13)
Data analytics (e.g., predictive
modeling) and business intelligence49% 67% 63% 67% 25% 50% 46%
Enterprise Risk Management 44% 17% 38% 33% 63% 58% 15%
Risk Capital Management 28% 17% 0% 22% 50% 35% 15%
Modeling, forecasting, cash flow
testing23% 0% 38% 0% 38% 27% 15%
Operational Risk Management 21% 0% 13% 22% 31% 19% 23%
Asset Liability Management 18% 0% 13% 11% 31% 15% 23%
Investments 18% 17% 13% 22% 19% 15% 23%
Executive Management (e.g., CEO,
CFO, Chief Risk Officer)13% 17% 13% 0% 19% 12% 15%
Information Technology (e.g.,
programing, software development)13% 0% 0% 22% 19% 12% 15%
Non-executive directors (i.e., Board
Directors not part of the executive
management team)13% 0% 13% 11% 19% 19% 0%
Management of Actuarial Department
or Function10% 17% 0% 0% 19% 12% 8%
Percentages are based on respondents (i.e., not counting missing
responses)
26
Not surprisingly, few associations consider tasks related to pricing, product development or reinsurance to be new and emerging Of the tasks listed below, which
do you consider to be new or
emerging areas of responsibility
for actuaries?
Total
(39)
Africa
(6)
Americas
(8)
Asia &
Oceania
(9)
Europe
(16)
High-
income
(26)
Middle-
income
(13)
Teaching/ Research 8% 17% 0% 11% 6% 8% 8%
Auditing 5% 0% 25% 0% 0% 0% 15%
Pricing 5% 17% 0% 0% 6% 4% 8%
Strategy formulation 5% 17% 0% 11% 0% 4% 8%
Other, please specify: 5% 0% 13% 11% 0% 4% 8%
Financial advising for corporate
structures, mergers & acquisitions3% 0% 0% 0% 6% 0% 8%
Financial Reporting 3% 0% 0% 0% 6% 4% 0%
Planning - Strategic and Financial 3% 0% 0% 0% 6% 4% 0%
Product Development 3% 17% 0% 0% 0% 0% 8%
Regulation 3% 0% 0% 11% 0% 4% 0%
Reinsurance 3% 0% 13% 0% 0% 0% 8%
Percentages are based on respondents (i.e., not counting missing
responses)
27
Employer Perceptions of Actuaries
28
A strong majority of associations believe that employers would rate the quantitative skills, attention to detail, problem solving and trustworthiness of actuaries as “Excellent” or “Good”
1
12
13
26
35
38
41
42
43
0 10 20 30 40 50
Other: Professionalism
Interpersonal skills
Communicating effectively
Business acumen
Industry knowledge
Trustworthiness
Problem solving skills
Attention to detail
Quantitative skills
Axis Title
Axis
Title
Business Skills rated “Excellent” or “Good”
Top 2 Box RatingFigures based on responses by organization
29
There is near-universal belief among associations that employers would rate actuaries’ quantitative skills as “excellent” or “good” (96%)
To the best of your knowledge,
how would employers rate the
performance of actuaries in
Quantitative Skills?
Total
(47)
Africa
(6)
Americas
(9)
Asia &
Oceania
(9)
Europe
(23)
High-
income
(31)
Middle-
income
(16)
Excellent 67% 67% 89% 56% 62% 73% 53%
Good 29% 33% 11% 33% 33% 23% 40%
Fair 2% 0% 0% 11% 0% 0% 7%
Marginal 2% 0% 0% 0% 5% 3% 0%
Poor 0% 0% 0% 0% 0% 0% 0%
Don't know 0% 0% 0% 0% 0% 0% 0%
Percentages are based on respondents (i.e., not counting missing
responses)
30
To the best of your knowledge,
how would employers rate the
performance of actuaries in
Attention to detail?
Total
(47)
Africa
(6)
Americas
(9)
Asia &
Oceania
(9)
Europe
(23)
High-
income
(31)
Middle-
income
(16)
Excellent 64% 33% 88% 56% 67% 76% 40%
Good 32% 67% 13% 33% 29% 21% 53%
Fair 2% 0% 0% 11% 0% 0% 7%
Marginal 2% 0% 0% 0% 5% 3% 0%
Poor 0% 0% 0% 0% 0% 0% 0%
Don't know 0% 0% 0% 0% 0% 0% 0%
Percentages are based on respondents (i.e., not counting missing
responses)
Near-universal belief among associations that employers would perceive actuaries’ attention to detail as “excellent” or “good” (96%)
31
To the best of your knowledge,
how would employers rate the
performance of actuaries in
Problem solving skills?
Total
(47)
Africa
(6)
Americas
(9)
Asia &
Oceania
(9)
Europe
(23)
High-
income
(31)
Middle-
income
(16)
Excellent 42% 33% 33% 44% 48% 47% 33%
Good 49% 67% 67% 44% 38% 47% 53%
Fair 7% 0% 0% 11% 10% 3% 13%
Marginal 2% 0% 0% 0% 5% 3% 0%
Poor 0% 0% 0% 0% 0% 0% 0%
Don't know 0% 0% 0% 0% 0% 0% 0%
Percentages are based on respondents (i.e., not counting missing
responses)
Fully 91% of associations believe that employers would rate actuaries’ problem solving skills as “excellent” or “good”
32
To the best of your knowledge,
how would employers rate the
performance of actuaries in
Trustworthiness?
Total
(47)
Africa
(6)
Americas
(9)
Asia &
Oceania
(9)
Europe
(23)
High-
income
(31)
Middle-
income
(16)
Excellent 55% 33% 63% 56% 57% 69% 27%
Good 32% 50% 25% 33% 29% 28% 40%
Fair 9% 0% 13% 11% 10% 0% 27%
Marginal 2% 17% 0% 0% 0% 0% 7%
Poor 0% 0% 0% 0% 0% 0% 0%
Don't know 2% 0% 0% 0% 5% 3% 0%
Percentages are based on respondents (i.e., not counting missing
responses)
Fully 87% of associations believe that employers would rate actuaries’ trustworthiness as “excellent” or “good”
33
To the best of your knowledge,
how would employers rate the
performance of actuaries in
Industry knowledge?
Total
(47)
Africa
(6)
Americas
(9)
Asia &
Oceania
(9)
Europe
(23)
High-
income
(31)
Middle-
income
(16)
Excellent 33% 50% 22% 11% 43% 30% 40%
Good 44% 33% 33% 67% 43% 53% 27%
Fair 16% 0% 44% 22% 5% 10% 27%
Marginal 4% 0% 0% 0% 10% 7% 0%
Poor 2% 17% 0% 0% 0% 0% 7%
Don't know 0% 0% 0% 0% 0% 0% 0%
Percentages are based on respondents (i.e., not counting missing
responses)
Over three-quarters of associations believe that employers would rate actuaries’ industry knowledge as “excellent” or “good” (76%)
34
To the best of your knowledge,
how would employers rate the
performance of actuaries in
Business acumen?
Total
(47)
Africa
(6)
Americas
(9)
Asia &
Oceania
(9)
Europe
(23)
High-
income
(31)
Middle-
income
(16)
Excellent 5% 0% 0% 0% 10% 7% 0%
Good 55% 83% 25% 56% 57% 55% 53%
Fair 27% 17% 63% 33% 14% 31% 20%
Marginal 11% 0% 13% 11% 14% 7% 20%
Poor 0% 0% 0% 0% 0% 0% 0%
Don't know 2% 0% 0% 0% 5% 0% 7%
Percentages are based on respondents (i.e., not counting missing
responses)
A majority of associations (60%) believe that employers would perceive actuaries’ business acumen as “good” or “excellent”
35
To the best of your knowledge,
how would employers rate the
performance of actuaries in
Communicating effectively?
Total
(47)
Africa
(6)
Americas
(9)
Asia &
Oceania
(9)
Europe
(23)
High-
income
(31)
Middle-
income
(16)
Excellent 4% 0% 0% 0% 10% 3% 7%
Good 24% 33% 44% 11% 19% 20% 33%
Fair 62% 33% 44% 89% 67% 70% 47%
Marginal 7% 33% 11% 0% 0% 3% 13%
Poor 2% 0% 0% 0% 5% 3% 0%
Don't know 0% 0% 0% 0% 0% 0% 0%
Percentages are based on respondents (i.e., not counting missing
responses)
Over one-quarter of associations believe that employers would rate actuaries’ communication skills as “good” or better (28%)
36
To the best of your knowledge,
how would employers rate the
performance of actuaries in
Interpersonal skills?
Total
(47)
Africa
(6)
Americas
(9)
Asia &
Oceania
(9)
Europe
(23)
High-
income
(31)
Middle-
income
(16)
Excellent 0% 0% 0% 0% 0% 0% 0%
Good 28% 0% 25% 33% 35% 32% 20%
Fair 51% 67% 63% 67% 35% 54% 47%
Marginal 14% 33% 13% 0% 15% 7% 27%
Poor 2% 0% 0% 0% 5% 4% 0%
Don't know 5% 0% 0% 0% 10% 4% 7%
Percentages are based on respondents (i.e., not counting missing
responses)
Just over one-quarter of associations believe that employers would rate actuaries’ interpersonal skills as “good” or better (28%)
37
A majority of associations (57%) believe that it is important for actuaries to develop communication skills
0
1
2
2
3
6
6
10
27
0 10 20 30
Attention to detail
Other
Quantitative skills
Problem solving skills
Trustworthiness
Industry knowledge
Interpersonal skills
Business acumen
Communicating effectively
Axis Title
Axis
Title
Important attributes for actuaries to develop
Figures based on responses by organization
38
Why developing communication and interpersonal skills is important
An essential skill for effective business persons
To be considered for positions in senior leadership
With increasing complexity and detail in tasks, actuaries need to be effective in communicating results, models, limitations and recommendations
To help actuaries to be effective advisors and partners to clients, colleagues and board; and to help convince others of the merits of their ideas
This will help improve awareness and recognition of the profession
To remain competitive with other professions
To help actuaries break into new areas and roles
To help support business decisions by clearly explaining technical issues to non-technical audiences
39
Biggest Opportunities
40
Data analytics and risk management top the list of the biggest opportunities for actuaries in the short term
2
2
3
4
4
5
5
6
6
6
6
10
18
22
0 5 10 15 20 25
Telecommunications
Life Insurance
Pricing
Other Tasks: IT, Marketing, Strategy, Board
Consulting & Auditing
Other Industries: Natural Resources, Government, Manufacturing, etc.
Pension & Retirement
Asset Management & Investments
Regulation/ Reporting Standards
Healthcare
General Insurance
Banking
Risk Management inc. ERM
Data Analytics & Business Intelligence
Axis Title
Axis
Title
Biggest Opportunities for Actuaries in the Next Five Years
Figures based on responses by organization
41
Almost three-quarters of associations based in High-income economies (73%) expect demand for actuaries will grow in the data analytics fieldIn the next five years, which new
industries or tasks will offer the
biggest opportunities for your
members to play a role?
Total(40)
Africa(6)
Americas(9)
Asia & Oceania
(8)
Europe(17)
High-income
(26)
Middle-income
(14)
Data Analytics & Business Intelligence
55% 33% 67% 75% 47% 73% 21%
Risk Management inc. ERM 45% 50% 44% 50% 41% 46% 43%
Banking 25% 33% 22% 25% 24% 23% 29%
Asset Management & Investments 15% 17% 11% 13% 18% 15% 14%
Regulation/ Reporting Standards 15% 0% 33% 0% 18% 23% 0%
Healthcare 15% 17% 22% 0% 18% 15% 14%
Property & Casualty / General Insurance
15% 17% 22% 13% 12% 12% 21%
Other Industries: Natural Resources, Government, Manufacturing, etc.
13% 50% 0% 13% 6% 8% 21%
Pension & Retirement 13% 0% 11% 25% 12% 15% 7%
Other Tasks: IT, Marketing, Strategy, Board, etc.
10% 0% 11% 13% 12% 15% 0%
Consulting & Auditing 10% 0% 11% 0% 18% 8% 14%
Pricing 8% 17% 0% 13% 6% 0% 21%
Telecommunications 5% 33% 0% 0% 0% 0% 14%
Life Insurance 5% 0% 0% 13% 6% 0% 14%Percentages are based on respondents (i.e., not counting missing
responses)
42
Optimizing Opportunities
43
The majority of associations will use education and training to optimize opportunities over the next five years
2
2
2
4
4
5
7
11
29
0 10 20 30 40
Other: Offer Consulting Services
Creating Special Interest Groups
Working with Universities
Creating Strategic Plans/ Priorities
Partnering with Other Professional Bodies
Working with Regulator or Government
Working with Industry
Increasing Stakeholder Awareness
Education and Training
Axis Title
Axis
Title
How Associations Plan to Optimize Opportunities in the Next Five Years
Figures based on responses by organization
44
Over one-quarter of organizations (28%) will seek to raise awareness of these opportunities with their stakeholders
What are you doing to optimize
these opportunities within the
next five years?
Total(39)
Africa(6)
Americas(9)
Asia & Oceania
(9)
Europe(15)
High-income
(24)
Middle-income
(15)
Education and Training 74% 100% 78% 67% 67% 79% 67%
Increasing Stakeholder Awareness 28% 17% 33% 33% 27% 33% 20%
Working with industry 18% 33% 11% 11% 20% 13% 27%
Working with Regulator or Government
13% 17% 22% 0% 13% 13% 13%
Creating Strategic Plans/ Priorities 10% 0% 22% 11% 7% 8% 13%
Partnering with Other Professional Bodies
10% 0% 11% 11% 13% 17% 0%
Creating Special Interest Groups 5% 17% 0% 11% 0% 4% 7%
Working with Universities 5% 0% 11% 0% 7% 8% 0%
Percentages are based on respondents (i.e., not counting missing
responses)
45
Greatest Challenges & Threats
46
3
3
3
4
5
7
8
10
11
14
0 5 10 15
Consolidation in Insurance Industry
Lack of Students/ Candidates
Rote/ Automated Work/ Over reliance on Models
Other Market changes (e.g. Interest Rates)
Technology/ Computerization
Maintaining/ Improving Reputation
Low Awareness/ Recognition/ Bad Publicity
Regulatory Changes
Competition from Non-Actuaries
Loss of Traditional Actuarial work
Axis Title
Axis
Title
Greatest Challenges and Threats for the Profession in the Next Five Years
Figures based on responses by organization
Loss of traditional actuarial work, competition from other professions and regulatory changes are seen as key challenges for actuaries
47
Low awareness of the profession and the need to maintain or improve its reputation in light of competition is noted by one-in-five associations Within the next five years, what
are the greatest challenges or
threats to the actuarial
profession?
Total(37)
Africa(5)
Americas(8)
Asia & Oceania
(7)
Europe(17)
High-income
(24)
Middle-income
(13)
Loss of Traditional actuarial work 38% 20% 50% 43% 35% 46% 23%
Competition from Non-Actuaries 30% 60% 25% 14% 29% 33% 23%
Regulatory Changes 27% 20% 38% 14% 29% 33% 15%
Low Awareness/ Recognition/ Bad Publicity
22% 20% 50% 29% 6% 25% 15%
Maintaining/ Improving Reputation 19% 20% 38% 0% 18% 8% 38%
Technology/ Computerization 14% 40% 13% 29% 0% 8% 23%
Other Market changes (e.g. Interest Rates)
11% 20% 13% 14% 6% 13% 8%
Rote/ Automated Work/ Over reliance on Models
8% 0% 0% 0% 18% 13% 0%
Lack of Students/ Candidates 8% 20% 0% 0% 12% 8% 8%
Consolidation in Insurance Industry 8% 0% 13% 14% 6% 8% 8%
Percentages are based on respondents (i.e., not counting missing
responses)
48
Managing Challenges & Threats
49
Associations plan to educate and train their professionals, to help them stay competitive
2
2
3
3
5
5
7
12
16
0 5 10 15 20
Creating Actuarial standards
Creating Special Interest Groups/ Discussion Groups
Other inc. Funding Research, Environmental Scanning
Creating Strategic Plans
Working with Industry
Working with Other Actuarial Organizations
Working with Regulators/Government Affairs Activities/ Lobbying
Raising Awareness/ Promoting & Repositioning Actuaries
Education & Training
Axis Title
Axis
Title
How Associations will Manage Key Challenges and Threatsover the Next Five Years
Figures based on responses by organization
50
Over the next five years, several associations plan to counter lost/ losing ground by raising awareness of the actuarial skillset and collaborating with stakeholders
Within the next five years, what
are you doing to manage the
challenges you’ve listed?
Total
(31)
Africa
(4)
Americas
(8)
Asia &
Oceania
(7)
Europe
(12)
High-
income
(20)
Middle-
income
(11)
Education & Training 52% 50% 38% 57% 58% 45% 64%
Raising Awareness/ Promoting & Repositioning Actuaries
39% 75% 13% 29% 50% 30% 55%
Working with Regulators/Government Affairs Activities/ Lobbying/ Tracking Regulation
23% 25% 50% 0% 17% 20% 27%
Working with Industry 16% 50% 0% 0% 25% 15% 18%
Working with Other Actuarial Organizations
16% 25% 13% 14% 17% 10% 27%
Creating Strategic Plans 10% 0% 13% 14% 8% 15% 0%
Creating Actuarial standards 6% 0% 0% 14% 8% 5% 9%
Creating Special Interest Groups/Discussion Groups
6% 0% 13% 14% 0% 5% 9%
Other (inc. Funding Research, Environmental Scanning)
6% 0% 13% 0% 8% 10% 0%
Percentages are based on respondents (i.e., not counting missing
responses)
51
Professional and Qualification Standards
52
The majority of associations have established a code of conduct for their professionals
4
10
26
32
36
0 10 20 30 40
None of the above
Other (e.g. CPD, Technical Guidelines, Discplinary Process)
Standards of practice - the framework for performingprofessional assignments
Qualification standards - the requirements for educationand experience
Code of conduct - the ethical responsibilities to the public,clients, employers and profession
Axis Title
Axis
Title
Professional Standards Established for Actuaries
Figures based on responses by organization
53
Codes of conduct and qualification standards are almost universal among associations based in High-income economies
Has your organization
established any of the following
professional standards for
actuaries?
Total
(43)
Africa
(6)
Americas
(9)
Asia &
Oceania
(9)
Europe
(19)
High-
income
(28)
Middle-
income
(15)
Code of conduct - the ethical responsibilities to the public, clients, employers and profession
84% 67% 67% 89% 95% 96% 60%
Standards of practice - the framework for performing professional assignments
60% 50% 44% 67% 68% 71% 40%
Qualification standards - the requirements for education and experience
74% 67% 67% 67% 84% 89% 47%
Other (e.g. CPD, Technical Guidelines, Disciplinary Process etc.)
23% 17% 44% 11% 21% 21% 27%
None of the above 9% 33% 0% 11% 5% 0% 27%
Multiple responses accepted
Percentages are based on respondents (i.e., not counting missing
responses)
54
Examination by an actuarial organization or completion of university coursework are leading methods of qualification
6
12
13
15
15
20
0 5 10 15 20 25
Other (e.g. Examination by Supervisory Authority,Hybrids)
Through regulatory licensing
Through work experience
Examination by an actuarial organization but with possibleexemptions from part of syllabus based on university
results
Through university coursework
Through examination by an actuarial organization
Axis
Title
How Actuaries become Qualified
Figures based on responses by organization
55
The ways in which actuaries become qualified vary within region and income group
How do actuaries become
qualified?
Total
(43)
Africa
(6)
Americas
(9)
Asia &
Oceania
(8)
Europe
(20)
High-
income
(29)
Middle-
income
(14)
Through examination by an actuarial organization
47% 67% 44% 63% 35% 45% 50%
Examination by an actuarial organization but with possible exemptions from part of syllabus based on university results
35% 17% 33% 50% 35% 45% 14%
Through university coursework 35% 0% 44% 0% 55% 45% 14%
Through work experience 30% 0% 33% 13% 45% 38% 14%
Through regulatory licensing 28% 0% 22% 25% 40% 28% 29%
Other (e.g. Examination by Supervisory Authority, Hybrid-process)
14% 17% 22% 13% 10% 10% 21%
Multiple responses accepted
Percentages are based on respondents (i.e., not counting missing
responses)
56
Almost three-quarters of associations (74%) report that their professionals are required to participate in CPD to maintain their actuarial status
Are actuaries required to
participate in continuing
professional development
(CPD) in order to maintain their
actuarial status?
Total
(43)
Africa
(6)
Americas
(9)
Asia &
Oceania
(8)
Europe
(20)
High-
income
(29)
Middle-
income
(14)
Yes 74% 50% 67% 63% 90% 83% 57%
No 26% 50% 33% 38% 10% 17% 43%
Multiple responses accepted
Percentages are based on respondents (i.e., not counting missing
responses)
57
Appendix
58
List of Participants
59
Participating Associations
Instituto Actuarial Argentino (Argentina)
Actuarial Society of Armenia (Armenia)
Institute of Actuaries of Australia (Australia)
Aktuarvereinigung Österreichs (Austria)
Actuarial Association of Azerbaijan (Azerbaijan)
Actuarial Society of Bangladesh (Bangladesh)
Instituto Brasileiro de Atuaria (Brazil)
Canadian Institute of Actuaries (Canada)
Instituto de Actuarios Matemáticos de Chile (Chile)
Croatian Actuarial Association (Croatia)
Cyprus Actuarial Association (Cyprus) Estonian Actuarial Association
(Estonia)
Actuarial Society of Finland (Finland)
Institut des actuaires (France) Association of Actuaries and Financial
Analysts (Georgia)
Deutsche Aktuarvereinigung -DAV (Germany)
Actuarial Society of Ghana (Ghana)
Hellenic Actuarial Association (Greece)
Actuarial Society of Hong Kong -ASHK (Hong Kong)
Hungarian Actuarial Society (Hungary)
Félag íslenskra tryggingastærðfræðinga -FÍT (Iceland)
The Institute of Actuaries of Japan (Japan)
The Japanese Society of Certified Pension Actuaries -JSCPA (Japan)
The Actuarial Society of Kenya (Kenya)
Latvijas Aktuaru Asociacija (Latvia) Macedonian Actuarial Association
(Macedonia)
The Society of Actuaries of Mongolia (Mongolia)
Koninklijk Actuarieel Genootschap (Netherlands)
New Zealand Society of Actuaries Inc. (New Zealand)
Den Norske Aktuarforening (Norway)
Asociación Panameña de Actuarios (Panama)
Instituto dos Actuarios Portugueses (Portugal)
Russian Guild of Actuaries (Russian Federation)
Serbian Actuarial Association (Serbia)
Slovensko aktuarsko društvo (Slovenia)
Actuarial Society of South Africa (South Africa)
Instituto de Actuarios Españoles (Spain)
Actuarial Institute of Chinese Taipei (Taiwan)
Actuarial Society of Tanzania (Tanzania)
The Society of Actuaries of Thailand (Thailand)
The Actuarial Association of Uganda (Uganda)
Institute and Faculty of Actuaries (United Kingdom)
ASPPA College of Pension Actuaries -ACOPA (United States of America)
Casualty Actuarial Society (United States of America)
Conference of Consulting Actuaries (United States of America)
Society of Actuaries (United States of America)
Actuarial Society of Zambia (Zambia)
60
Demographics
61
Organizations based in Europe and Africa have seen the highest growth in fully qualified actuaries (FQAs) over the 2010-15 time period
ALL
(47)
Africa
(6)
Americas
(9)
Asia &
Oceania
(9)
Europe
(23)
High-
income
(31)
Middle-
income
(16)
Number of FQAs in
201567,430 1,141 37,853 5,866 22,570 65,188 2,242
Number of FQAs in
201051,826 807 30,719 4,830 15,470 50,094 1,732
Average annual
growth rates
of FQAs, 2010-15
5.4% 7.2% 4.3% 4.0% 7.9% 5.4% 5.3%
62
Professional membership in multiple actuarial organizations is most prevalent in the Americas region and lowest in Europe
ALL
(46)
Africa
(6)
Americas
(9)
Asia &
Oceania
(9)
Europe
(22)
Number of FQAs in 2015 67,430 1,141 37,853 5,866 22,570
Number of FQAs residing
in country where HQ is
based52,893 * 26,792 5,391 19,529
Number of FQAs
registered with another
actuarial organization28,487 452 24,068 1,565 2,402
Number of organizations
with members residing
outside the country they
are based
33 6 6 8 13
* Figure under review
63
Actuaries and the Marketplace
64
Actuaries enjoy a strong reputation with regulators, according to 94% of associations
How would you rate the overall
professional reputation of
actuaries with…
Regulators
Total
(44)
Africa
(6)
Americas
(9)
Asia &
Oceania
(9)
Europe
(20)
High-
income
(29)
Middle-
income
(15)
Excellent 48% 50% 67% 22% 50% 52% 40%
Good 46% 33% 33% 67% 45% 45% 47%
Fair 7% 17% 0% 11% 5% 3% 13%
Marginal 0% 0% 0% 0% 0% 0% 0%
Poor 0% 0% 0% 0% 0% 0% 0%
Don't know 0% 0% 0% 0% 0% 0% 0%
Percentages are based on respondents (i.e., not counting missing
responses)
65
Almost four-in-five associations believe that actuaries have a “good” or “excellent” reputation with employers (78%)
How would you rate the overall
professional reputation of
actuaries with…
Employers
Total
(44)
Africa
(6)
Americas
(9)
Asia &
Oceania
(9)
Europe
(20)
High-
income
(29)
Middle-
income
(15)
Excellent 26% 33% 44% 0% 27% 32% 13%
Good 52% 50% 56% 78% 41% 52% 53%
Fair 20% 0% 0% 22% 32% 16% 27%
Marginal 2% 17% 0% 0% 0% 0% 7%
Poor 0% 0% 0% 0% 0% 0% 0%
Don't know 0% 0% 0% 0% 0% 0% 0%
Percentages are based on respondents (i.e., not counting missing
responses)
66
A majority of associations report that the profession’s reputation with the public is “excellent” or “good” (54%). However, one-in-five organizations lack information in this area.
How would you rate the overall
professional reputation of
actuaries with…
The Public
Total
(44)
Africa
(6)
Americas
(9)
Asia &
Oceania
(9)
Europe
(20)
High-
income
(29)
Middle-
income
(15)
Excellent 15% 17% 22% 11% 14% 13% 20%
Good 39% 50% 67% 33% 27% 42% 33%
Fair 13% 17% 0% 22% 14% 13% 13%
Marginal 11% 0% 11% 0% 18% 10% 13%
Poor 2% 0% 0% 0% 5% 0% 7%
Don't know 20% 17% 0% 33% 23% 23% 13%
Percentages are based on respondents (i.e., not counting missing
responses)
67
In all regions, changes in the regulatory environment are thought to have had a favorable impact on the demand for actuaries
To what extent do you agree with
the following statements about
actuaries
Changes in the regulatory
environment have increased
the demand for actuaries in
the job market
Total
(44)
Africa
(6)
Americas
(9)
Asia &
Oceania
(9)
Europe
(20)
High-
income
(29)
Middle-
income
(15)
Strongly Agree 45% 50% 56% 33% 45% 45% 47%
Agree 39% 33% 33% 56% 35% 41% 33%
Disagree 7% 0% 11% 0% 10% 7% 7%
Strongly Disagree 7% 0% 0% 11% 10% 7% 7%
Don't know 0% 0% 0% 0% 0% 0% 0%
Not applicable 2% 17% 0% 0% 0% 0% 7%
Percentages are based on respondents (i.e., not counting missing
responses)
68
There is general agreement that economic growth has contributed to increased demand for actuaries in every region, with the exception EuropeTo what extent do you agree with
the following statements about
actuaries
Economic growth has
increased the demand for
actuaries in the job market
Total
(44)
Africa
(6)
Americas
(9)
Asia &
Oceania
(9)
Europe
(20)
High-
income
(29)
Middle-
income
(15)
Strongly Agree 14% 17% 22% 11% 10% 7% 27%
Agree 43% 67% 56% 67% 20% 45% 40%
Disagree 20% 0% 22% 0% 35% 31% 0%
Strongly Disagree 5% 0% 0% 0% 10% 0% 13%
Don't know 0% 0% 0% 0% 0% 0% 0%
Not applicable 18% 17% 0% 22% 25% 17% 20%
Percentages are based on respondents (i.e., not counting missing
responses)
69
In all regions, the general public’s familiarity with the actuarial profession is low
To what extent do you agree with
the following statements about
actuaries
The general public's
familiarity with the actuarial
profession is low
Total
(44)
Africa
(6)
Americas
(9)
Asia &
Oceania
(9)
Europe
(20)
High-
income
(29)
Middle-
income
(15)
Strongly Agree 43% 50% 67% 22% 40% 38% 53%
Agree 50% 50% 33% 67% 50% 55% 40%
Disagree 7% 0% 0% 11% 10% 7% 7%
Strongly Disagree 0% 0% 0% 0% 0% 0% 0%
Don't know 0% 0% 0% 0% 0% 0% 0%
Not applicable 0% 0% 0% 0% 0% 0% 0%
Percentages are based on respondents (i.e., not counting missing
responses)
70
In Africa and the Americas, actuaries are under increased pressure from other professions
To what extent do you agree with
the following statements about
actuaries
Actuaries face increased
competition from other
professions for jobs
Total
(44)
Africa
(6)
Americas
(9)
Asia &
Oceania
(9)
Europe
(20)
High-
income
(29)
Middle-
income
(15)
Strongly Agree 20% 33% 33% 11% 15% 21% 20%
Agree 36% 50% 56% 33% 25% 41% 27%
Disagree 27% 17% 0% 33% 40% 31% 20%
Strongly Disagree 5% 0% 11% 11% 0% 0% 13%
Don't know 5% 0% 0% 0% 10% 7% 0%
Not applicable 7% 0% 0% 11% 10% 0% 20%
Percentages are based on respondents (i.e., not counting missing
responses)
71
Competition for JobsNon-Actuaries
72
Statisticians, Accountants, Economists and Data Scientists compete with actuaries for jobs
7
14
15
16
17
0 5 10 15 20
Other (e.g. Financial Engineers, Risk Managers etc.)
Data scientists
Economists
Accountants
Statisticians
Axis Title
Axis
Title
The Groups that Compete with Actuaries for Jobs
Figures based on responses by organization
73
Statisticians lead the list of professions that compete with actuaries for jobs. Data scientists are noted rivals in High-income countries.
Which of the following groups
compete with actuaries for jobs
Total
(24)
Africa
(5)
Americas
(7)
Asia &
Oceania
(4)
Europe
(8)
High-
income
(17)
Middle-
income
(7)
Statisticians 71% 80% 86% 75% 50% 71% 71%
Accountants 67% 100% 71% 75% 38% 53% 100%
Economists 63% 80% 57% 75% 50% 53% 86%
Data scientists 58% 20% 71% 100% 50% 71% 29%
Other (e.g., Financial Engineers, Risk Managers etc.)
29% 40% 43% 0% 25% 24% 43%
Sample: Associations that indicated that they “Strongly Agree” or “Agree” that actuaries face increased competition from other professions for jobs
Percentages are based on respondents (i.e., not counting missing
responses)