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