Indian Actuarial Profession Serving the Cause of Public Interest Wider Areas Fields for Actuaries Opportunities in Wider Fields Outside Traditional Areas Young Actuaries Connect 14th October, 2017 Mumbai - Sunil Sharma Mumbai, India Indian Actuarial Profession Serving the Cause of Public Interest

Current Scenario A good number of students Fewer Opportunities in Traditional Areas www.actuariesindia.org

Profile of new entrants www.actuariesindia.org

Current Employers of Actuarial Services Nos of cos. Employed per co. Total employed Life Insurance cos 24 20 480 General Ins cos 30 5 150 Reinsures 8 40 KPO : GE 1 KPO: Swiss RE KPO: Prudential PMS 50 KPO: WNS GGn/Chennai KPO: Mercer 250 KPO: Aon Hewett Narang Axa : Pune TCS KPO 10 Consulting Pension consulting 25 Regulator Misc Total   1,825 www.actuariesindia.org Rough Estimates based on Phone Calls

Traditional Areas for Actuaries Currently actuarial students working with Life Insurance companies General Insurance companies Reinsurance companies Health Insurance companies Consultants : Retirement Benefit Valuation Insurance Regulator www.actuariesindia.org

Traditional Areas for Actuaries There are over 10,000 student Members Currently expected employed around 2-3 K There are lot of members looking for jobs With current opportunities in traditional fields, in absence of any intervention, the situation is likely to deteriorate over a period www.actuariesindia.org

Wider Areas for Actuaries Banking and Finance Enterprise Risk Management Wealth management and Finance Planning Social Security Government: MoF- Planning and Budgeting/ Health Ministry/ Welfare Data Scientist / Analytics / Mining www.actuariesindia.org

Banking and Finance Enterprise wide Risk Analysis in Financial Institutions Including Basel II implementation work. Capital management and Capital Allocation in Financial institutions Credit Risk Analysis in Financial Institutions Potential Derivative Structuring (hedging) sales side and also analysis on buy side Structured Finance ( e.g. Securitization ) Valuation of Illiquid assets Rating Agencies www.actuariesindia.org

Enterprise Risk Management Risk management Overview Risk Culture Risk Framework /Governance Risk Tolerance Risk Mathematics ( loss Distributions etc) Tools and Techniques ( GLM, Risk Measures, Aggregation and simulations) Applications and Aggregation ( Credit, Market, Pricing , ALM and ops Risk) Risk Control and Mitigation Mechanism ( Reinsurance, Hedging, Alternative Risk Transfer) Role can be in Investment Bank and Commercial Banks www.actuariesindia.org

Wealth Management and Finance Planning Actuarial Skills can be very useful for the Broader Wealth Management Firms Sr. Role in Banking Head of Wealth Management arm of Major Bank and Director of Trustee. Investment Manager in the investment Banking www.actuariesindia.org

Social Security Projection of Population Advice on development of Social security and government policies Provisions for the Long term care of Sr Citizens Social security Administration- Chief Actuary ( USA) Govt Actuary Department ( GAD) www.actuariesindia.org

Data Mining Exploration and Analysis of Large quantities of data to find useful pattern and Frame Rules in general techniques used are: decision Tree Logistic regression Fuzzy Logics /Ge Fraud Prediction, Churn Prediction, Customer segmentation, Claim Analytics, Pricing www.actuariesindia.org

Data Mining - Roles Example: Analytics in Insurance Analytics in Banking, Credit Cards use analytics, Portfolio Performance Analyst in Pharmaceutical co Role Analysis of Global R&D Portfolio Risk management Use Applied Maths, Operational Research, Economic and Actuarial Skills for Research and Financial Analytics www.actuariesindia.org

Data Mining - scope As per a paper by Burning Glass Technologies, around 23.5 lac jobs were listed in North America in 2015. By 2020 the demand for data scientist and data engineers is projected to grow by 39%. Further, over 3.6 lac jobs listing is expected by 2020. Positions are advertised with average salary of around $ 80,000 which is relatively higher than positions requiring graduation degree. www.actuariesindia.org

Data Mining – Potential Low difficulty of filling position and high growth High difficulty of filling position and high growth Human Resources Analytical manager Market Research Analyst Financial Examiner Business Intelligence analyst Statistician Business Management analyst Data Scientist Data Engineers Business Intelligence architect Director of analytics System Analyst   high difficulty of filling position and low growth: low difficulty of filling position and low growth: IT Project Manager Marketing Manager Product Manager Finance and Risk Analytics Manager compensation and Benefit analyst Risk Consultant Data Mining Analyst Data base administrator Budget Analyst Procurement Sourcing Manager Computer/system engineer www.actuariesindia.org

Data Mining - Skills Statistician Data Scientist communication skills to ensure proper communication of results Communication skills to interact with business to explore challenges Visualization skills to ensure he/she able to spot the relationship in data Visualization skills required to clearly communicate insights for the business Data modeling to analyze the data Modeling to integrate analytic workflows and data and further understand to solve business challenges Programming to do proper analysis Programming to ensure analytics is embedded into the deployable applications www.actuariesindia.org

Data Mining – are actuaries are ready ? Strength Development Core Statistical Training programming Skills Analytical Strength Visual Representation Skills Quantitative Analysis Technologist Insurance domain Knowledge Communicating Insights to Business www.actuariesindia.org

Use of R – certificate course Generalized Linear Modeling Advance Business Analytics – Skills development Use of R – certificate course Generalized Linear Modeling Cluster Analysis Credibility Using GLM Predictive Analytics SAP www.actuariesindia.org

Where do opportunities exist ? Government of India, MOF, Health Ministry, Planning division, ESI. / Postal Insurance / agriculture Insurance Other department of Insurers ; Risk functions, Finance, Products head and marketing, Underwriting, compliance, Claims Actuarial Audits ( statutory) by Actuaries Risk Audit (statutory) by Actuaries Insurer Brokers to employ actuaries Risk Management across financial services and industrial companies, Banks, investment banks Analytics/ Data scientist All public sector and medium to large size public limited companies managing employees benefit, Insurance, Gratuity , pensions Assets Valuation (Valuers) Actuaries as Independent directors in Board / audit committee and risk committee of all Insurers www.actuariesindia.org

IAI Initiatives: Constituted 4 members Wider Fields Committee Launched IAI Job Portal connecting Potential Employers to Members Educating potential employers about the what Value actuaries can add to their business Lobby with decision makers in Ministry Seminars www.actuariesindia.org

Discussion www.actuariesindia.org