the actuarial profession david alexander fellow of the actuarial society of hong kong
TRANSCRIPT
The Actuarial Profession
David Alexander
Fellow of the Actuarial Society of Hong Kong
www.actuaries.org.hk
About me
Current role: Life Manager Hong Kong & Macau, Swiss Re Life & Health
FIA (Fellow of the Institute of Actuaries UK), FASHK
Studied Mathematics at Warwick Univ, UK
Has worked in the UK and Hong Kong
Should I become an Actuary?
Actuarial training is seen as a highly attractive career in finance.
What does an actuary do?
Communicate complex financial issues in an understandable way!
Actuaries apply their mathematical and financial expertise and knowledge in the business world.
Where do actuaries work?
Insurance Companies (Life & General) Consultancies (Actuarial, Management,
Accountancy, etc) Investment and Banking Government Service Other e.g. Healthcare, Capital Projects Universities
The Actuarial Society of Hong Kong - Mission
• To increase the value to the community of the actuarial profession.
• To encourage the study of actuarial science
• To uphold standards of professional conduct
• To regulate the practice by its members
• To discuss and comment on the actuarial aspects of public, social and economic topics
• To consider the actuarial aspects of legislation
The Actuarial Society of Hong Kong
• 205 Fellows
• 91 Associates
• 145 Students• www.actuaries.org.hk
• Students study the examinations of the actuarial bodies of:
• USA
• UK
• Australia
Actuarial Societies around the World
USA - The Society of Actuaries www.soa.org
UK - The Faculty & Institute of Actuaries www.actuaries.org.uk
Australia - The Institute of Actuaries of Australia www.actuaries.asn.au
Other Countries Many countries have an actuarial association Very few have a full examination system
IAA - The International Actuarial Association www.actuaries.org
The Actuarial Profession has all that an attractive profession should have:
Professional qualification Autonomy and responsibility Variety and flexibility of opportunities Excellent pay It’s a well respected profession Internationally recognised qualification
Excellent Pay:
Graduate entry salaries are offered between HK$12-15,000 per month, according to the sector and location of the position.
Student actuaries often get promotions and salary increases as they pass the exams.
A newly qualified actuary will earn in excess of HK$40,000pm, however senior actuaries can earn over HK$100 000pm+ depending on the job they do.
Actuaries In Hong Kong - Estella Chiu
Chief Actuary, HSBC Life FCIA, FSA, FASHK President of the ASHK Actuarial Science at
Univ of Western Ontario Worked in
Canada Hong Kong
Actuaries In Hong Kong - Dr Chan
Associate Professor of
Actuarial Science, HKU FSA, FASHK BBA Accounting,
Chinese University of HK Worked in
Canada Singapore Hong Kong
Actuaries In Hong Kong - K C Chan
Alternative Distribution Officer, Taiwan Prudential Assurance Co.
FCIA, FSA, FASHK BSc Electrical Engineering, Univ of Hong Kong Worked in
Canada Singapore Hong Kong Taiwan Japan
Internationally recognised qualification:
There are many overseas opportunities
Geographical Distributionof UK Fellows
A Chance to Travel on Business – Personal Experience
• England, Scotland• France, Spain,
Belgium, Holland, Germany, Switzerland, Hungary
• US, Canada• Brazil• Israel
• Hong Kong, Mainland China, Taiwan, Macau
• Japan, Singapore• Australia• India
Actuaries are experts in assessing the financial impact of tomorrow’s uncertain events by:
analysing the past modelling the future assessing the risks involved communicating what the results mean in financial terms...and human
terms deciding the appropriate course of action to implement or
recommend
Some Examples
Setting investment strategy Buying a life insurance company Developing a pensions strategy
Setting Investment Strategy
Scenario - You are an actuary advising a life insurance company where to invest its assets of HKD1000m
ensure solvency maximise policyholder return practical solution
Setting Investment Strategy - Considerations
What proportion to invest in bonds, equities, property and cash?
Consider What are the company’s liabilities (currency and
duration) What risk appetite does the company have What regulations are there on investment What are their competitors doing What is the risk of insolvency for any chosen strategy
2. Buying another life insurance company
Reasons for purchase? What are you buying? Type of purchase – hostile/agreed? What timescale is involved? How much are buyers prepared to pay?
Buying another life insurance company
Value future profit streams to shareholders Embedded Value
Add the Value of future new business Appraisal Value
Buying another life insurance company
Communicate the results Separate values for different components No right answer Price is what someone is willing to pay Similar deals provide a good check Iterative process
3. Developing a pensions strategy
understanding the client’s objectives understanding the organisation understanding legislation assumptions and analysis judgement and imagination communication
Communication, communication, communication!!!
Meet with company contacts Attend board meeting Present recommendation to the Trustees Write reports for the company / board Prepare announcements for employees Develop illustrative modellers for members Attend employee roadshows …
Becoming an Actuary
How do I become an Actuary?
What do employers look for?
a good academic record not only maths/actuarial science graduates!
good communicators IT skills language skills an interest in business commitment / staying power enthusiasm
Qualification Routes
U n ive rs ity D e g re e
P a rt-t im e S tu dyC o rre sp o n d en ce C o u rses
U n ive rs ity D e g re e
A c tu a ria l S c ien ce D ip lo m a
P a rt-t im e s tu dyC o rre sp o n d en ce C o u rses
F F A /F IA /F S A /F IA AF A S H K
Minimum Entry Requirements
Good school results especially in Mathematics
University Degree preferably in a science subject (Mathematics, Economics, Statistics, Engineering etc or Actuarial Science)
Examination Syllabus
Technical Examinations (similar for all actuarial associations around the world)
Practical Examinations (different for each country)
Specialist Examination Communications Paper
Study Support
Structured Correspondence Courses Study Leave Company Tutorials
Informal Work Experience Colleagues Actuarial Society Presentations Reading other actuarial research, magazines etc
Where can I find out more?
Your careers advisor Via the Actuarial Websites
Careers information packs Web-sites
Careers Guides Employers’ web-sites Work experience / summer placements Careers Expo!
Why do I enjoy it?
It’s interesting It’s challenging It’s different all the time It’s satisfying
… and it pays well!
… and I still have time to enjoy life outside work!
Time to enjoy life outside work…
Peter Eliot ( B&W Deloitte actuarial student) street lugeing in his spare time in San Francisco.
Any Questions for our Panel?
www.actuaries.org.hk