Actuarial professionThe western Balkan case
Klime Poposki
CEE & SEE – Regional Actuarial Insurance Conference, 22 February 2018, Skopje
Content
Actuarial profession in Macedonia
From the beginning
The role of the Insurance Supervision Agency
Actuarial education in Macedonia
History, organization and specifics
Actuarial education in the region
What next?
Actuarial profession in Macedonia - beginning
Until 2010 out of 13 companies, 9 companies were sharing the same actuary
GENERAL PERCEPTION about ACTUARIES:
• Considered to be a regulatory imposed burden;• Believed that without them, companies would work equally good and
maybe even better,• Involved only in reserving, as “this is what actuaries know to do”;• Understood as working against the interest of the company – as ”they”
reduce the profit.
Warning situation with the technical provisions
Phase 1
Observed conditions
In November 2009, the ISA was established
Regulatory framework• Qualified actuary;• Education standards;• Appointed actuary;• Responsibilities of the appointed actuary• Rules of the actuarial profession
‒ Minimum standards of conduct and the continuing actuarial education• Penalties and revoking the license
Supervisory activities and measures• Intensified and standardizes reporting standards• Frequent on-site inspections• Main focus on technical provisions • Supervisory measures - orders, warnings, recommendations, guidance• Broadened the scope of actuarial work,
‒ Besides technical provisions, focused on reinsurance operations, pricing, product design, companies information systems etc.
‒ Increased the number of company’s documents that should be signed by the appointed actuary
Actuarial education
Close cooperation with MAA “Actuary”
Actuarial profession in Macedonia - the role of ISA
Phase 2
Activities
Actuarial profession in Macedonia - the role of ISA
Where are we now?
There are 32 actuaries who passed the actuarial exam, • of which 29 are qualified
Each company has at least one actuary
Appropriate level of technical provision
Actuaries are involved not only in provisioning, but also in other areas of insurance operations
Phase 2
Achievements
Actuarial profession in Macedonia - the role of ISA
What are we going to do?
Actuaries and the risk management and decision making
Information system of the companies
Actuaries and external audit
MTPL Tariff liberalization
Solvency 2 implementation
Phase 3
Future challenges
The Macedonian actuarial association
Macedonian actuarial association “Actuary”
• Established 2004
• Mission statement
• MAA “Actuary” documents that regulate the actuarial profession‐ Code of professional conduct‐ Rulebook on the disciplinary procedure‐ Educational program for actuaries‐ Rulebook on the continuing professional development
• Associate member of IAA (2006 – 2016)
• Regular member of IAA, since 2016
History of the actuarial education in Macedonia
2002 – 2004
2007 – 2009
2011 – 2013
9actuaries
10actuaries
11actuaries
• Ministry of finance• Financial Services Volunteer Corps
(FSVC)
• Insurance supervision agency• Syllabus restructure (to fully
comply with the structure of Croatian syllabus)
Specifics of the actuarial education in Macedonia
Syllabuses• In compliance with the IAA guidelines (until 2017)
1. Probability and statistics2. Financial Mathematics3. Stochastic modeling4. Survival models5. Economics6. Actuarial mathematics 1 - Life7. Actuarial mathematics 2 - Nonlife8. Investment and Asset Management
Studying materials Lecturers• Not available in Macedonian Univers. Professors from Croatia and Macedonia• Copyright Agreement Experts in the field from Croatia
Organizing exams Qualification of foreign actuaries• 2 possible examinations for each subject• If candidate doesn’t pass, he/she ends the education
9. Life insurance10. Non-life insurance11. Pension insurance12. Health insurance13. Accounting and financial statements14. Professionalism and ethics15. Law
No. of qualified actuaries
No. of companies
Average Source
Albania 31 11 2.8Albanian financial supervisory authority
BiH 36 13 2.8 Insurance agencyof Bosna and Herz.
Kosovo 10 15 0.7 Central Bank of Kosovo
Macedonia 29 16 1.8Insurancesupervision agency of Macedonia
Montenegro 13 10 1.3Insurancesupervision agency of Montenegro
R. Srpska 37 14 2.6 Insurance Agency of Republika Srpska
Serbia 73 21 3.5 National bank of Republic of Serbia
Actuaries in the region
Average number of actuaries per insurance company 0.7 – 3.5
Availability
Actuarial education in the region
Yes No N/A
AContinuity
ConvenienceEmerging
Self-sustainabilitySystemic solution
4 13
1 33
1 33
6 1
1 33
1 17
CCESS
!!!
Conclusions and reccomendations
For the western Balkan:
Harmonized regulatory framework for actuarial education and licensing
Regional Center – what role?
Education
Actuarial education Continuous education for actuaries Diploma’s equivalence
Statistics
Research Catastrophe modelling Probability tables
Thank you
Klime PoposkiThe President of the Council of Experts
Insurance Supervision Agency of the Republic of MacedoniaEmail: [email protected]
www.aso.mk