The Actuarial Profession David Alexander Fellow of the

The Actuarial Profession David Alexander Fellow of the Actuarial Society of Hong Kong www. actuaries. org. hk

About me n Current role: Life Manager Hong Kong & Macau, Swiss Re Life & Health n FIA (Fellow of the Institute of Actuaries UK), FASHK n Studied Mathematics at Warwick Univ, UK n Has worked in the UK and Hong Kong

n Should I become an Actuary?

n Actuarial training is seen as a highly attractive career in finance.

What does an actuary do? n Communicate complex financial issues in an understandable way! n Actuaries apply their mathematical and financial expertise and knowledge in the business world.

Where do actuaries work? n Insurance Companies (Life & General) n Consultancies (Actuarial, Management, Accountancy, etc) n Investment and Banking n Government Service n Other e. g. Healthcare, Capital Projects n 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 n USA - The Society of Actuaries n www. soa. org n UK - The Faculty & Institute of Actuaries n www. actuaries. org. uk n Australia - The Institute of Actuaries of Australia n www. actuaries. asn. au n Other Countries n Many countries have an actuarial association n Very few have a full examination system n IAA - The International Actuarial Association n www. actuaries. org

The Actuarial Profession has all that an attractive profession should have: n Professional qualification n Autonomy and responsibility n Variety and flexibility of opportunities n Excellent pay n It’s a well respected profession n Internationally recognised qualification

Excellent Pay: n Graduate entry salaries are offered between HK$12 -15, 000 per month, according to the sector and location of the position. n Student actuaries often get promotions and salary increases as they pass the exams. n A newly qualified actuary will earn in excess of HK$40, 000 pm, however senior actuaries can earn over HK$100 000 pm+ depending on the job they do.

Actuaries In Hong Kong - Estella Chiu n Chief Actuary, HSBC Life n FCIA, FSA, FASHK n President of the ASHK n Actuarial Science at Univ of Western Ontario n Worked in n Canada n Hong Kong

Actuaries In Hong Kong - Dr Chan n Associate Professor of Actuarial Science, HKU n FSA, FASHK n BBA Accounting, Chinese University of HK n Worked in n Canada n Singapore n Hong Kong

Actuaries In Hong Kong - K C Chan n Alternative Distribution Officer, Taiwan Prudential Assurance Co. n FCIA, FSA, FASHK n BSc Electrical Engineering, Univ of Hong Kong n Worked in n Canada n Singapore n Hong Kong n Taiwan n Japan

Internationally recognised qualification: n There are many overseas opportunities

Geographical Distribution of 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: n analysing the past n modelling the future n assessing the risks involved n communicating what the results mean in financial terms. . . and human terms n deciding the appropriate course of action to implement or recommend

Some Examples n Setting investment strategy n Buying a life insurance company n Developing a pensions strategy

Setting Investment Strategy Scenario - You are an actuary advising a life insurance company where to invest its assets of HKD 1000 m n ensure solvency n maximise policyholder return n practical solution

Setting Investment Strategy - Considerations n What proportion to invest in bonds, equities, property and cash? n Consider n What are the company’s liabilities (currency and duration) n What risk appetite does the company have n What regulations are there on investment n What are their competitors doing n What is the risk of insolvency for any chosen strategy

2. Buying another life insurance company n Reasons for purchase? n What are you buying? n Type of purchase – hostile/agreed? n What timescale is involved? n How much are buyers prepared to pay?

Buying another life insurance company n Value future profit streams to shareholders n Embedded Value n Add the Value of future new business n Appraisal Value

Buying another life insurance company n Communicate the results n Separate values for different components n No right answer n Price is what someone is willing to pay n Similar deals provide a good check n Iterative process

3. Developing a pensions strategy n understanding the client’s objectives n understanding the organisation n understanding legislation n assumptions and analysis n judgement and imagination n communication

Communication, communication!!! n Meet with company contacts n Attend board meeting n Present recommendation to the Trustees n Write reports for the company / board n Prepare announcements for employees n Develop illustrative modellers for members n Attend employee roadshows n…

Becoming an Actuary n How do I become an Actuary?

What do employers look for? n a good academic record n not only maths/actuarial science graduates! n good communicators n IT skills n language skills n an interest in business n commitment / staying power n enthusiasm

Qualification Routes

Minimum Entry Requirements n Good school results especially in Mathematics n University Degree preferably in a science subject (Mathematics, Economics, Statistics, Engineering etc or Actuarial Science)

Examination Syllabus n Technical Examinations (similar for all actuarial associations around the world) n Practical Examinations (different for each country) n Specialist Examination n Communications Paper

Study Support Structured n Correspondence Courses n Study Leave n Company Tutorials Informal n Work Experience n Colleagues n Actuarial Society Presentations n Reading other actuarial research, magazines etc

Where can I find out more? n Your careers advisor n Via the Actuarial Websites n Careers information packs n Web-sites n Careers Guides n Employers’ web-sites n Work experience / summer placements n Careers Expo!

Why do I enjoy it? n It’s interesting n It’s challenging n It’s different all the time n It’s satisfying n … and it pays well! n … and I still have time to enjoy life outside work!

Time to enjoy life outside work… n 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