1. 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

2. Current Scenario A good number of students
Fewer Opportunities in Traditional Areas

3. Profile of new entrants

4. 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
Rough Estimates based on Phone Calls

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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)

12. 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

13. 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

14. 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.

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. Discussion