WHAT IS AN ACTUARY ANYWAY?

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WHAT IS AN ACTUARY ANYWAY?

• Actuaries are professionals who provide expert
  advice and relevant solutions for business and
  societal problems that involve economic risk.
• An actuary working for an insurance company might
  calculate how much a company would charge for a
  new type of car, homeowners, or health insurance.
  He or she may have to figure out how much money
  needs to be invested in a pension fund today so
  that years from now, when the employees retire,
  there will be funds to pay them benefits. Or, an
  actuary might calculate how much damage an
  earthquake or hurricane could cause.

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WHAT IS AN ACTUARY ANYWAY?

• Besides insurance, actuaries work in many other
  fields. That's because their skills are readily
  transferable to any business that deals with
  risk. An actuary could work in finance,
  marketing, manufacturing, or in the development
  of new products. For example, an actuary might
  determine how a company should invest its money
  based on risk and potential return. An actuary
  might determine potential profit gaines when a
  business enters a new international market or
  forecast the return on investment to develop a
  new product.

3
IT'S ALL ABOUT PROBLEM SOLVING

• Actuaries solve business and societal problems
  and help corporations and government agencies
  make decisions. To do this they make financial
  forecasts and apply other analytical skills to
  today's business and economic problems. Some
  actuaries do technical work. Others are in the
  business of creating innovative financial
  products for the insurance, banking, and
  investments sector. Because actuaries wear a lot
  different hats, they often step up to management
  positions. Many actuaries move on to become
  senior executives of major companies or partners
  in consulting firms. Some go into business for
  themselves.

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IT'S ALL ABOUT PROBLEM SOLVING

• Opportunities for actuaries range from education
  to research to government agencies such as Social
  Security. Still other actuaries choose careers in
  investments or banking, or work for companies
  that write computer software with financial
  applications. Because of the importance of the
  work, actuarial science is a profession that's
  respected throughout the business community.

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WHERE DO ACTUARIES WORK?

• Most actuaries live and work in urban or suburban
  areas where financial firms, banks, investment
  houses, and insurance companies are
  headquartered. But because of the versatility of
  the profession, there are actuaries in large and
  small towns everywhere.

WHAT ARE THE FINANCIAL REWARDS?

• Actuaries make good money even when they're just
  beginning their careers. The typical starting
  salary in the U.S. Midwest is about 40,000 a
  year. As an actuary completes a series of
  professional exams, salaries climb. Actuaries who
  have passed all the exams can earn as much as
  100,000 a year by their early 30s.

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DO I NEED A COLLEGE DEGREE?

• No specific degree is mandatory but, like most
  good jobs, graduating from college gives your
  career a "jump start." Most practicing actuaries
  today have a degree in math, actuarial science,
  statistics, or computer science. A degree in
  business economics or finance would also give you
  a great start.

ARE THERE PROFESSIONAL EXAMS?

• Just like doctors, lawyers and accountants,
  actuaries need to pass professional exams that
  test their professional knowledge and skill. Some
  people take the early exams while still in
  school. The later exams are taken after a course
  of self-study.

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Being an Actuary

• Superior job security through economic cycles.
• Want a professional title, but dont want to be a
  doctor, lawyer, or accountant.
• Self-motivated, goal oriented, and have superior
  math aptitude and communication skills.
• Highly competitive salary and excellent benefits.

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How ?

• PROFESSIONAL EXAMS
• Self Study
• Text book material Study guide
• Just like TOEFL Compete with every students
  around the world
• Just like doctors, lawyers and accountants FSA
  title (once you get it, you can hold for entire
  life)
• Company sponsor
• Earn while you learn

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Company Sponsor
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Monthly salary for Actuarial industry (baht) 2006
Earn while you learn
Experience (yr) Level 1 (None) Level 2 (ASA) Level 3 (FSA)
0 - 3 14,000 40,000 40,000 65,000 gt 60,000
4 - 7 25,000 70,000 60,000 90,000 gt80,000
8 - 12 40,000 - 100,000 80,000 - 140,000 gt120,000
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The Myths vs The Reality

• Myths
• Number crunchers with their noses in statistics
  books.
• Math geeks best suited to back room
  pencil-pushing.

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The Myths vs The Reality

• Reality
• Risk professionals with a strong quantitative
  focus.
• Broader expertise than most insurance
  professionals.

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The Myths vs The Reality

• Reality
• Exposure to all of these areas and readily
  complements the skills of an accountant,
  attorney, underwriter and even marketer.
• Hold positions throughout financial services
  organizations and is well suited for the
  executive suites. 

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Role Responsibilities of Actuaryin Life
Insurance Company

• Product/Production Management
• Design and Pricing of new products
• Monitor existing products with making changes or
  withdrawals if not profitable
• Design and Costing of sales compensations
• Evaluate feasibility of new distribution channels
  i.e. Bancassurance, direct marketing, broker,
  internet etc.
• Evaluate profitability of marketing initiatives
  or promotions

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Role Responsibilities of Actuaryin Life
Insurance Company

• Financial Management
• Calculate reserve for future policy liabilities
• Prepare and Report company financial status
• Monitor company solvency and Review any
  initiatives which will distort financial health
• Review and Advise investment policy to ensure
  best asset/liability management
• Review and Advise financial impacts on business
  strategies i.e. MA, joint venture, take-over or
  disinvestment etc.

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Role Responsibilities of Actuaryin Life
Insurance Company

• Risk Management
• Quantify risk impact for management decisions
• Prepare reports and Review actual experiences of
  assumptions regularly
• Design and Implement risk/loss control mechanism
• Procure appropriate reinsurance to mitigate the
  assumed risks
• Review and Advise any operation initiatives which
  will impact portfolio risks

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Qualification of Good Actuary

• Actuary is not human calculator
• Balance Mathematical knowledge/expertise and
  Business acumen
• Have various knowledge necessary for business
  i.e. economics, marketing, legal, medical,
  accounting, finance etc.
• Good skills of communication to various parties

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Qualification of Good Actuary

• Actuarial certificate is a measurement for
  quality standard of Actuary.
• Certificate is from passing exams requirement.
• Well recognized organizations for actuarial
  certificate exams-
• Society of Actuaries (USA)
• Institute of Actuaries (UK)
• Institute of Actuaries of Australia (Australia)
• Canadian Institute of Actuaries (Canada)

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Society of Actuaries (USA)

• One of the most established and well accepted
  actuarial society in the world
• Almost all of Thai actuarial take SOA(US) exams
• Two level of certificates Associateship (ASA)
  and Fellowship (FSA)
• Currently, there are 4 Thai FSAs and around 20-30
  Thai ASAs

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Society of Actuaries (USA)
Thai Fellows by passing qualified exams

• Amornthip Chansrichawala (Mittrae Insurance)
  FSA 1993
• Suwaphand Sangprakai (ManuLife) FSA 2003
• Suchin Pongpuengpitack (AIA) FSA 2004
• Pichet Jiaramaneetaweesin (AIG HK) FSA 2005

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Society of Actuaries (USA)
Thai Fellows by passing qualified exams

• Amornthip Chansrichawala (Mittrae Insurance)
  FSA 1993
• Suwaphand Sangprakai (ManuLife) FSA 2003
• Suchin Pongpuengpitack (AIA) FSA 2004
• Pichet Jiaramaneetaweesin (AIG HK) FSA 2005

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Society of Actuaries (USA)
Thai Fellows by passing qualified exams

• Amornthip Chansrichawala (Mittrae Insurance)
  FSA 1993
• Suwaphand Sangprakai (ManuLife) FSA 2003
• Suchin Pongpuengpitack (AIA) FSA 2004
• Pichet Jiaramaneetaweesin (AIG HK) FSA 2005

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Society of Actuaries (USA)

• The syllabus is being revised.
• Pre-2005 Exam syllabus
• 8 courses 4 Basic 4 Advance
• Course 1 Mathematical Foundations of Actuarial
  Science
• Course 2 Interest Theory, Economics and
  Finance
• Course 3 Actuarial Models
• Course 4 Actuarial Modeling

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Society of Actuaries (USA) exams

• Course 5 Application of Basic Actuarial
  Principles
• Course 6 Finance and Investments
• Associate Professionalism Course (APC)
• Course 7 Applied Modeling
• Pretest exam
• Seminar
• Course 8 Advanced Specialized Actuarial
  Practice
• Professional Development
• Fellowship Admission Course

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Society of Actuaries (USA) exams

• 2005 Syllabus
• Preliminary Education (PE)
• Calculus
• Linear Algebra
• Introductory Accounting
• Business Law
• Mathematical Statistics
• Validated Educational Experience (VEE)
• Economics
• Corporate Finance
• Applied Statistical methods

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Society of Actuaries (USA) exams

• Exam P Probability
• Exam MF Financial Mathematics
• Exam M Actuarial Models
• Exam C Construction and Evaluation of
  Actuarial Models
• Fundamentals of Actuarial Practice Courses (8
  Modules)
• Associate Professionalism Course (APC)

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Society of Actuaries (USA) exams

• Practical Area Exams (2 Exams)
• Individual Insurance
• Health, Group Life and Managed Care
• Retirement Benefits
• Investments
• Finance/Enterprise Risk Management
• FSA Modules (Internet based learning)
• Capstone Module
• Fellowship Admission Course (FAC)

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Good Things about Actuarial Exams

• Generally companies provide supports for
• Exams Fee
• Cost of Study materials
• Study leave
• Benefit to career
• Salary increment
• Career advancement
• Chance for Go Inter

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Interesting Websites

• www.soa.org -gt Society of Actuaries (USA)
• www.actuaries.org.uk -gt Institute of Actuaries
  (UK)
• www.actuaries.asn.au -gt Institute of Actuaries of
  Australia
• www.actuaries.ca -gt Canadian Institute of
  Actuaries
• www.thaiactuary.org -gt Society of Actuaries of
  Thailand
• www.beanactuary.org -gt Website to promote
  actuarial career

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Contact Info

• Tommy Pichet Jiaramaneetaweesin. FSA
• Telephone numbers 852-65043371
• Email address Tommy.Pichet_at_Gmail.com

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