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 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
■ Government Service
■ 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

• 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
■ 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

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
■ Actuarial Science at

Univ of Western Ontario
■ Worked in
■ Canada
■ Hong Kong


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


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

Internationally recognised qualification:

■ 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:

■ 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