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

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The Actuarial Profession David
AlexanderFellow of the Actuarial Society of
Hong Kongwww.actuaries.org.hk

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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

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• Should I become an Actuary?

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

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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.

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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

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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
  

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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

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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

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The Actuarial Profession has all that an
attractive profession should have

• Professional qualification
• Autonomy and responsibility
• Variety and flexibility of opportunities
• Excellent pay
• Its a well respected profession
• Internationally recognised qualification

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Excellent Pay

• Graduate entry salaries are offered between
  HK12-15,000 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
  HK40,000pm, however senior actuaries can earn
  over HK100 000pm depending on the job they do.

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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

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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

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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

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Internationally recognised qualification

• There are many overseas opportunities

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Geographical Distribution of UK Fellows
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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

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Actuaries are experts in assessing the financial
impact of tomorrows 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

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Some Examples

• Setting investment strategy
• Buying a life insurance company
• Developing a pensions strategy

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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

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Setting Investment Strategy - Considerations

• What proportion to invest in bonds, equities,
  property and cash?
• Consider
• What are the companys 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

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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?

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Buying another life insurance company

• Value future profit streams to shareholders
• Embedded Value
• Add the Value of future new business
• Appraisal Value

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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

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3. Developing a pensions strategy

• understanding the clients objectives
• understanding the organisation
• understanding legislation
• assumptions and analysis
• judgement and imagination
• communication

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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

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Becoming an Actuary

• How do I become an Actuary?

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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

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Qualification Routes
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Minimum Entry Requirements

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

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Examination Syllabus

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

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Study Support

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

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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!

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Why do I enjoy it?

• Its interesting
• Its challenging
• Its different all the time
• Its satisfying
• and it pays well!
• and I still have time to enjoy life outside
  work!

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Time to enjoy life outside work

• Peter Eliot ( BW Deloitte actuarial student)
  street lugeing in his spare time in San
  Francisco.

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Any Questions for our Panel?www.actuaries.or
g.hk