State of the Profession Study (Phase 1) · 7 Summary: Industry Participation Actuaries are widely employed in life, pensions & retirement, general insurance, and in other industries,

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.

http://blogs.worldbank.org/opendata/new-country-classifications-2016

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


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


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


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%


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%


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%


responses)

30




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%


responses)

Near-universal belief among associations that employers would perceive actuaries’ attention to detail as “excellent” or “good” (96%)

31




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%


responses)

Fully 91% of associations believe that employers would rate actuaries’ problem solving skills as “excellent” or “good”

32




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%


responses)

Fully 87% of associations believe that employers would rate actuaries’ trustworthiness as “excellent” or “good”

33




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%


responses)

Over three-quarters of associations believe that employers would rate actuaries’ industry knowledge as “excellent” or “good” (76%)

34




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%


responses)

A majority of associations (60%) believe that employers would perceive actuaries’ business acumen as “good” or “excellent”

35




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%


responses)

Over one-quarter of associations believe that employers would rate actuaries’ communication skills as “good” or better (28%)

36




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%


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


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


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


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%


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


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%


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


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%


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


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


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


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%



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%



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%


responses)

65

Almost four-in-five associations believe that actuaries have a “good” or “excellent” reputation with employers (78%)



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%


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.



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%


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%


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


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%


Don't know 0% 0% 0% 0% 0% 0% 0%

Not applicable 18% 17% 0% 22% 25% 17% 20%


responses)

69

In all regions, the general public’s familiarity with the actuarial profession is low



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%


Don't know 0% 0% 0% 0% 0% 0% 0%

Not applicable 0% 0% 0% 0% 0% 0% 0%


responses)

70

In Africa and the Americas, actuaries are under increased pressure from other professions



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%


Don't know 5% 0% 0% 0% 10% 7% 0%

Not applicable 7% 0% 0% 11% 10% 0% 20%


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


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


responses)

Documents

State of the Profession Study (Phase 1) · 7 Summary: Industry Participation Actuaries are widely employed in life, pensions & retirement, general insurance, and in other industries,