Careers Talk 05 - David Alexander

The Actuarial Profession David Alexander Fellow of the Actuarial Society of Hong Kong... About me■ Current role: Life Manager Hong Kong & Macau, Swiss Re Life & Health ■ FIA Fellow of th

The Actuarial Profession

David Alexander

Fellow of the Actuarial Society of Hong Kong

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

■ 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

Actuarial Societies around the World

■ USA - The Society of Actuaries

■ Many countries have an actuarial association

■ Very few have a full examination system

■ IAA - The International Actuarial Association

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

Actuaries In Hong Kong - Dr Chan

Actuaries In Hong Kong - K C Chan

■ Alternative Distribution Officer, Taiwan Prudential Assurance Co.

■ FCIA, FSA, FASHK

■ BSc Electrical Engineering, Univ of Hong Kong

Internationally recognised qualification:

■ There are many overseas opportunities

Geographical Distribution

of UK Fellows

A Chance to Travel on Business

• 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!

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

■ 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

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?