Actuarial Department

WE WILL HAVE ……
 Who is an Actuary?
 What is the Department structure like?
 What are the key working areas?
 Some products
 Questions and Answers
WHO IS AN ACTUARY?

Actuaries are experts in assessing the financial impact of the risks likely to be
faced by the company over far into future. They enable financial decisions to be
made with more confidence by:
 Analyzing the past
 Modeling the uncertain future
 Assessing the risks involved and
 Communicating what the results mean in financial and non-technical terms
 Actuaries Enable the top management take more Informed Decisions
 Actuaries Balance the Interests of All Stakeholders
Team Structure- SAMPLE
Actuarial
Managing Director

Director Finance & Actuarial

Appointed Actuary

Associate Director

Head Valuation

Team of Managers, Analysts, Assistant Managers

and Trainees
KEY PERFORMANCE AREAS
Product Review/Development Financial Management & Reporting

Valuation Business Planning

Regulatory/Group Compliance System Support

Risk Management Others

Reinsurance
KEY STRATEGIES

 Product Development (Review)

 Need Based Product
 Benchmarked Profitability
 Competitiveness
 Capital Efficiency
 Guarantees/options
 Flexibility
 Long Term relationship with customers
 Valuation
 Setting valuation assumptions
 Adequate provision for guarantees & options
 Allowance for Policyholders Reasonable Expectations (PRE)
 Peer Review
KEY STRATEGIES
 Risk Management
 Experience analysis
 Product review when conditions change
 Efficient use of reinsurance to optimise profitability vis-à-vis risk
 Making reinsurance arrangement with more than one reinsurer to manage
reinsurance counter party risk
 Asset/Liability matching/modeling
 Framing underwriting guidelines
 Management of guarantees & options
 Financial Management
 Generate Key Performance Indicators on realistic assumptions
 Monthly review of actual performance vis-à-vis budgeted target
 Suggest corrective actions to arrest adverse impact on profitability
 Monitor solvency margin on monthly basis
KEY STRATEGIES

 Reinsurance
 Drawing up the need for reinsurance
 Formalizing the treaty arrangement
 Carry out the reinsurance administration on periodic basis
 Liaison with the reinsurers for various matters

 Business Planning
 Develop models for determining the capital requirements over the plan
period.
 Prepare the plan
 Interpreting the key results for shareholders/management
KEY STRATEGIES

 System support
 Give inputs to set up products in the system
 Carry out testing which requires actuarial expertise

 Regulatory/internal compliance
 Submission of periodic statistics/reports
 Liaison with regulator to sort out various issues
 Submission of various internal reports to the Group
management in UK/Singapore

 Others
 Any issue requiring understanding risks in relation to
insurance
THANK YOU