ACTUARIAL SEMINAR

ACTUARIAL SEMINAR

.. SOURAV SIR’S CLASSES ..

1 EXEMPTION

Eligibility Criteria ❖ Institute and Faculty of Actuaries ❖ Casualty Actuarial Society ❖ Indian Statistical Institute, Kolkata ❖ University Courses and IFoA Exemptions ❖ Other Professional Qualifications Institute and Faculty of Actuaries We grant exemption to students who have passed Core Technical Subjects (CT), Core Applications Subjects (CA) and Specialist Technical (ST) Subjects from Institute and Faculty of Actuaries. Students will be awarded exemption from the corresponding IAI Exam. Casualty Actuarial Society We grant exemption to students who have passed Casualty Actuarial Society (CAS) exams from our exams as below:

CAS Exam

Corresponding IAI Exam

Exam 2

CT1

VEE Corporate Finance

CT2

Exam 1 and VEE - Applied Statistical Methods

CT3

Exam 3, 4

CT4

VEE - Economics

CT7

Exam 3F - Financial Economics

CT8

Exam 5 & 6

ST7 and ST8

Indian Statistical Institute, Kolkata We grant exemptions to students for Core Technical Subjects (CT3-CT8) depending on the modules taken and the grades obtained while completion of these actuarial degree programmes (Year 2005 onwards).

ISI Exam

Corresponding IAI Exam

Probability Theory I and II (Probability 101A-B)*, Statistical Methods I, II and III (Stat 101A-C)*, Statistical Inference I & II (Stat 105A-B)* or M. Stat Selection Test

CT3

Actuarial Models **

CT4

Life Contingencies **

CT5

Actuarial Methods **

CT6

Economics I and II (Econ 101 A-B)* OR Macroeconomic Theory ***

CT7

Theory of Finance I ***

CT8

* B.Stat (Hons.) ** M.Stat *** M.Stat and M.S. (Q.E) Note: - The exemption application will be approved depending upon the recommendations received from ISI and external examiner.

University Courses and IFoA Exemptions We grant exemptions to Core Technical subjects (CT), Core Application subjects (CA) and specialist technical subjects (ST) against respective qualification from UK based universities to which Institute and Faculty of Actuaries grants exemption. These UK based universities are listed as below:

University

University of Bristol

University of Warwick

University of Cambridge

University of Birmingham

Heriot-Watt University

Cass Business School

Imperial College London

University of East Anglia

Lancaster University

Imperial College Business School

University of Leicester

University of Kent

London School of Economics

University of Leeds

University of Manchester

Newcastle University

University of Nottingham

University of Oxford

Queens University Belfast

Queen Mary, University of London

Said Business School, Oxford

University of Southampton

University of Stirling

Swansea University

Other Professional Qualifications If you are Qualified Chartered Accountant and are Associate member of Institute of Chartered Accountants of India then you will be granted exemption for ST0 – Alternative Specialist Technical Subject. Exemption Fees

Subjects

Exemption Fees

CT1 - CT9

INR 2000 each

CA1

INT 6000

CA2 & CA3

INR 7500 each

ST0 - ST9

INR 3200

Documents

#

Institution

Documents Required

1

Institute and Faculty of Actuaries

Individual pass result of respective subjects from IFoA duly attested

2

Casualty Actuarial Society

Individual pass result of respective CAS Exam duly attested

3

Indian Statistical Institute, Kolkata

Mark sheets of all semesters of respective ISI course duly attested

4

University Courses and IFoA Exemptions

1. Transcripts from respective University duly attested

2. Exemption recommendation letter from the University duly attested

3. Exemption letter from Institute and Faculty of Actuaries duly attested

5

Other Professional Qualifications

1. Final Mark sheet of CA Final Exam duly attested

2. Associate Membership Certificate of Institute of Chartered Accountants of India duly attested

Attestation Attestation can be done by either a Fellow or an Associate of Institute of Actuaries of India or Institute and Faculty of Actuaries and is a member of the said Institute or IAA recognised Actuarial Association. The Associate or Fellow who certifies the document must include the following information:

• Full Name

• Signature

• Actuarial Reference Number (ARN)

• Job title and company

• Contact Number

• Email ID

Attestation can also be done by a Notary Officer. The Notary Officer who certifies the document must include the following information:

• Full Name

• Signature

• Registration Number

• Contact Number

• Email ID

Note : Attestation should be done in Blue ink only. Attestation done from a relative is invalid. Procedure to apply for Exemption You are required to submit your application to Institute of Actuaries of India with a covering letter, documents (as per the criteria) and demand draft of Exemption fees as applicable. Demand Draft should be in favour of “Institute of Actuaries of India”

SPECIAL NOTE

NO EXEMPTION FOR

MBA , CFA and ICFAI

&

SA LEVEL AS ITS BASED ON COUNTRY LEVEL

2. LIST OF PAPERS

Syllabus for the Year 2016 CT Series

CT1 Financial Mathematics

CT2 Finance and Financial Reporting

CT3 Probability and Mathematical Statistics

CT4 Models

CT5 General Insurance, Life and Health Contingencies

CT6 Statistical Methods

CT7 Business Economics

CT8 Financial Economics

CT9 Business Awareness Online Module

CA Series

CA1 Actuarial Risk Management

CA2 Model Documentation Analysis and Reporting

CA3 Communication

Specialist Technical Stage (ST)

ST1 Health and Care

ST2 Life Insurance

ST4 Pension and Other Employee Benefits

ST5 Finance and Investment A

ST6 Finance and Investment B

ST7 General Insurance Reserving and Capital Modeling Specialist Technical

ST8 General Insurance Pricing Specialist Technical

ST9 Enterprise Risk Management

Specialist Application Stage (SA)

SA1 Health and Care

SA2 Life Insurance

SA3 General Insurance

SA4 Pension and Other Employee Benefits

SA5 Finance

SA6 Investment

3 Examination Fees

Sr. No

Subject

For India and SAARC Countries (INR)

Core Technical Stage (CT)

1

CT1 - Financial Mathematics

2000

2

CT2 - 2 Finance and Financial Reporting

2000

3

CT3 - Probability and Mathematical Statistics

2000

4

CT4 - Models

2000

5

CT5 - General Insurance, Life and Health Contingencies

2000

6

CT6 - Statistical Methods

2000

7

CT7 - Business Economics

2000

8

CT8 - Financial Economics

2000

9

CA1 - Actuarial Risk Management

6000

Specialist Technical Stage (ST)

10

ST1 - Health and Care Insurance

3200

11

ST2 - Life Insurance

3200

12

ST4 - Pension and Other Employee Benefits

3200

13

ST5 - Finance and Investment A

3200

14

ST6 - Finance and Investment B

3200

15

ST7 - General Insurance : Reserving & Capital Modeling

3200

16

ST8 - General Insurance : Pricing

3200

Specialist Applications Stage (SA)

17

SA1 - Health and Care Insurance

4000

18

SA2 - Life Insurance

4000

19

SA3 - General Insurance

4000

20

SA4 - Pension and Other Employee Benefits

4000

21

SA5 - Finance

4000

22

SA6 - Investment

4000

• 4 Students who have cleared all subjects leading to Fellowship:

#

Name

Member No.

1

PAWAN KUMAR SHARMA

10068

2

NAKUL YADAV

6847

3

ABHISHEK PATODIA

4655

4

RIPUDAMAN R SETHI

5541

5

HEMANT KUMAR

12270

6

A V KARTHIKEYAN

3101

7

PRASUNKUMAR SARKAR

5392

8

PRIYANK GUPTA

2391

9

SANGHAMITRA DEY

1752

10

YOGITA RAWAT

7701

5

WHERE TO WORK

Actuaries in India can work in the following areas:

• Life Insurance

• General Insurance

• Health Insurance

• Reinsurance Companies

• Pension Funds

• Consultants

• Investments

• Government

• Academics

• Risk Management

Life, General, Health Insurance & Reinsurance Companies

Traditionally Actuaries work with Life Insurance Companies, but their importance lies equally in General and Health Insurance Companies also. The areas of their concern include:

• Product design, which includes designing new policies as per the changing requirements of the customers, Pricing the policy, ie. Setting the suitable premiums for the benefits and services offered by the company Profit Testing and distribution of profits among Shareholders and Policyholders.

• Actuaries help the management of the company in running the business in sound financial manner and to take strategic decisions from time to time.

• The Appointed Actuary of a Company has the responsibility of demonstrating financial stability of the company to the State Regulatory Authorities at all times.

Pension Funds

Their areas of concern include:

• Designing a Scheme of Benefits to the Members of the Pension Scheme, Calculating the Past Service Cost and the Future Service Cost of Benefits

• Certifying to the Regulator that the Fund Assets are sufficient to meet the liabilities and that the Assets are invested as per the Investment Pattern prescribed

• Calculating and Certifying the Pension cost on Acquisitions and Merger of Companies

Investment

• Quantifying the risk and the amount of investment returns available in the market

• Projecting the market expected investment returns using scientific methods and judgment to project the inflation rates, returns on the various market segments - manufacturing, technology, pharma, etc.

• Choosing an Investment Strategy which strike an appropriate balance between risk and returns

• Analyzing and identifying the Opportunities for increasing the returns

• Advising on the Investment Pattern to match the cash inflow and liability outgo for Insurance companies, pensions funds, banks, mutual funds, etc.

Consultants

• Consultants can act as Appointed Actuaries for General Insurance companies

• They also provide actuarial advice and their opinion on actuarial matters for Insurance Companies, Pension Funds, Government, etc.

• They provide investment advice to individuals that best suit their needs and family circumstances.

• They calculate the reversionary interests of members of Trusts.

Government

• Population projections

• Managing State Pension Schemes

• Identifying the regional differences based on geographical location, life style, income level, diseases prevalent, common occupation, etc.

• Regulatory role for Insurance Companies, Reinsurance Companies, Pension Funds

• Their role is increasing in designing Social Security Schemes, allocation of funds for development projects

Risk Management

• Fast Evolving field in recent days, for any massive project with lot of uncertainties.

• Identifying the various stages in the project while execution

• At each stage, identifying all the risk which may result in not meeting the expected outcome or estimated time

• Assigning a probability parameter to each of the identified risks

• Finding out a suitable measure to avoid or transfer those risks

• Processing the above-identified stages to various steps after allowing for the risk measures.

6 Directorate of Postal Life Insurance

* The Oriental Insurance Co. Ltd. inuary

* AEGON Religare Life Insurance Co. Senior Executive/Assistant Manager - Actuarial Modeling and Senior Executive/Assistant Manager - Actuarial Pricing

 Universal Sompo General Insurance Co. Ltd. Appointed Actuary, Manager Actuarial , Actuarial Trainee

 RGA Assistant Manager – Actuarial Services.

 Magma HDI invites Appointed Actuary.

 Milliman Life Consulting Support Center.

 National Insurance Company invites applications from resident India Citizen for the post of ‘Consulting Actuary’.

 Reliance General Insurance Co. invites applications for the post of • Pricing Analyst • Reporting Analyst • Reserving Analyst.

 RSA Actuarial Services (I) Pvt. Ltd. invites applications for multiple vacancies.

 Max Bupa Health Insurance invites applications for Senior Manager / Chief Manager, Actuarial Function

 Walk-In Drive for Actuarial Management Trainees on Aug. 7-8, 2015 at WNS Chennai and Mumbai.

 Towers Watson invites application for the post of Benefits Consultant (Candidates can directly apply on our company’s website : towerswatson.com)

 PwC Actuarial Services India - Full-time entry-level vacancy 2016.

 Decimal Point Analytics Pvt. Ltd. invites applications for multiple positions.

 Mercer Invites applications from fresh graduates/post graduates and experienced professionals for our NCR offices.

 Agriculture Insurance Company of India Limited invites applications for the post of full time “APPOINTED ACTUARY” on contract basis.

 Directorate of Postal Life Insurance invites applications for engagement of a full time Actuary.

7 List of Insurance and Actuarial Firms

Insurance Firms

• Allianz Cornhill (Corporate Management, Underwriting, Finance and IT)

• AON (Insurance & Risk Management and Actuarial Consulting)

• AXA (Underwriting, Insurance & Risk Management)

• Brit Insurance (underwriting, insurance and risk management)

• Catlin (Underwriting, Actuarial, Catastrophe Aggregate Management, Claims and Finance & Accounting)

• Congruent Solutions UK Ltd

• Endsleigh

• First Assist

• Fortis Insurance UK

• Irish Life

• JLT Insurance Brokers (insurance and enterprise risk management)

• Legal and General

• Lloyd's of London

• Marsh (international risk management and insurance)

• Norwich Union

• Prudential

• Punter Southall

• RBS Insurance (brands include Churchill, Direct Line and Green Flag - part of the Royal Bank of Scotland Group (RBOS))

• Royal & Sun Alliance

• Saga

• Standard Life (accountancy and actuarial)

• Talent Pro

• Buck Consultants

• Lane Clark & Peacock

• Barnett Waddingham

• Hymans Robertson

• Skandia

• FSA (Financial Services Authority)

• Zurich Financial Services

Actuarial Firms and Accountancy Firms (who offer actuarial services).

• A J Bell Group

• Act4You

• Atkin & Co

• Barnes & Sherwood

• Barnett Waddingham

• Bartlett Actuarial Services

• BBS Consultants and Actuaries

• BDO Stoy Hayward Investment Management

• Boal & Co

• Brian Watson Associates

• Buck Consultants

• BWCI Group

• Capita Hartshead

• Cartwright Consulting

• Collins Actuaries (Scotland)

• Congruent Solutions UK Ltd

• CPRM Limited

• Deloitte

• E B Consultants

• EMB Consultancy

• Ernst & Young

• Exactval

• Excalibur Actuaries

• FarrSight Solutions

• First Actuarial

• Geoffrey Bernstein & Cor

• Golding Smith & Partners

• GAD (Government Actuary's Department)

• Grant Thornton

• HamishWilson & Co

• Hanover Pensions Ltd & Associated Companies

• Harvey & Clamp

• Hazell Carr

• HSBC Actuaries and Consultants

• Hughes Price Walker

• Hymans Robertson

• J A Jolliffe & Co

• Jagger & Associates

• Jardine Lloyd Thompson

• John Riley Bristol

• Johnston Actuarial Services

• Joseph G Byrne & Sons

• Kerr Henderson Hewitt

• KKW Pensions Management

• KPMG

• Little & Company

• M L Owen & Co

• Matrix Consultancy

• Mazars Actuarial Services

• Mercer Human Resource Consulting

• Michael J Field

• Milliman

• Mitchell Consulting Actuaries

• N H Taylor

• Nigel Sloam & Co

• OAC Actuaries and Consultants

• Paul G Meins

• Pension Capital Strategies

• Pilgrim Consultants (UK)

• Pope Anderson

• Premier Pensions

• Punter Southall

• PwC

• Quantum Advisory

• Regent Pensions Limited

• SBJ Benefit Consultants

• Spence & Partners Limited (Actuaries, Consultants and Pensions Administrators)

• Steve Dixon Associates

• Thomson Dickson Consulting

• Towers Watson

• Verulam Consultants

• Wolanski Checkley Fisher

Other Firms

• Congruent Solutions UK Ltd

• Hewitt Associates

8 If we talk about the insurance sector specifically, there are four types of actuaries that you can find there. The four types are briefly explained.

1) Life Insurance Actuaries: The work involves analyzing the life expectancy of a person based on high risk factors like current age, health status and gender. Based on this analysis, insurance programs are developed for individuals and groups.

2) Health Insurance Actuaries: The work involves analyzing the life expectancy of a person solely based on the person’s current medical health, past health records, genetic history, occupation and geographic location. All these factors determine the expected cost of a promised health policy and cost of the organisation for policy adherence towards short-term and long-term medical expenses.

3) Pension and Retirement Actuaries: The profile involves assessing and evaluating the existing pension plans and derives future pension plans, and determines whether the company will possess sufficient funds in future to pay off employee pensions and other retirement benefits. Sometimes, you also need to advice individuals to best utilize their retirement money.

4) Property and Casualty Insurance Actuaries: The work involves analyzing the life expectancy of a person against the potential of injury and/or death due to automobile accidents. Factors like driving history, gender, age and car type factor here. As an actuary, you also have to develop insurance policies to insure people against property losses due to untoward events and natural disasters like fires.

Education, interest, knowledge and experience will help you to choose which type of actuary you want to become. Experienced actuaries also have the option to act as consultants for industries other than the industry sector, provided they have excellent understanding of that industry and its business components.

9 Actuary License / Certification

The Society of Actuaries (SOA) and the Casualty Actuarial Society (CAS) are the two professional societies handling the task of granting “professional status” to trainee actuarial. Both the SOA and CAS grants “associate” and “fellowship” statuses on clearing specific examinations. Pursue SOA certification if you want to go into retirement benefits, finance, investments, health insurance and life insurance. Pursue CAS certification if you want to go into medical malpractice, automobile insurance, property and casualty and workers’ compensation insurance.

There are five exams in SOA and seven exams in CAS. Clearing SOA and CAS will give associate certification, ASA and ACAS respectively. Getting the ASA or ACAS certification takes about four to six years. Each exam takes months of preparation. Another two to three years are involved in moving from “associate” to “fellowship” status. Group and health benefits, investments, retirement benefits, life and annuities and enterprise risk management are SOA fellowship options; specific options don’t exist for CAS.

SOA Certification

CAS Certification

To remain associated with either SOA or CAS, you have to keep attending their professional seminars, both online and offline. It is mandatory and employers to make provisions for this. You need to be analytical skills, problem solving skills, math skills, computer skills, interpersonal skills and communication skills to get actuarial certifications. You need to be dedicated, committed and hardworking to become a certified actuary. You need to invest almost a decade to go from being a “trainee” to a “fellow”.

9 WORK EXPERIENCE In order to qualify, there is a minimum work experience requirement of three years in an Actuarial field. Almost all reputable actuarial employers have attractive study programs to support your development and growth. These include time off from work to study and sit examinations, mentoring by senior colleagues as well as financial support. Being an actuary is a professional qualification and you are expected to gain sufficient and relevant work experience alongside your studies. Typically, if you have passed two to four core technical papers, then you should begin actively researching your preferred career options and find an appropriate job.

10 DROPOUT ISSUE…11 There are only 225 actuaries