China Insurance News
The Development of Insurance Market Will Bring More Actuarial Demand
"With the continued growth of the insurance markets within the Asia-Pacific region, demands for insurance products by commercial and individual customers continue to rise. In the process, risk assessment and management are increasingly important factors. In China in particular, the demand for general insurance actuaries is reaching levels yet unseen and the trend is escalating. Consequently, more professional actuaries are needed.” This is the view of the Society of Actuaries (SOA) President Ms. Tonya B. Manning, who spoke in an interview with China Insurance News on March 29th. The interview comes at a time as the SOA is positioning to become a comprehensive provider of premier actuarial education through the introduction of a general insurance designation. The SOA recognizes the increasing demand for general insurance actuaries in the Asia-Pacific area and have selected China as the most [prominent market] to promote the new SOA General Insurance track.
According to the introduction by Ms. Tonya Manning, SOA now has 670 members in China and 1322 candidates that are half way to becoming members. However, regardless of the number of Society of Actuary members or candidates, the overall ratio of students in general insurance remains very low. In light of this, the SOA is bringing the GI track into China and with it more professional training for the professionals in the field to help offer more opportunities for development within the occupation.
"Our actuarial exams are primarily for college students." Ms. Tonya Manning told reporters, "Now many students will be in a position to choose their directions and we are providing this general insurance designation to help offer more career opportunities and choices in the field. The needs of China’s general insurance actuaries continue to grow rapidly and our general insurance program will provide qualification and certification for students seeking particular advantages to engage working with international clients or at multinational firms."
As an actuary with expertise gained from many years of experience focused on pensions, Tonya Manning considered the current status of development in pension management in the United States and China. Reflecting on views related to potential adaption of retirement age, Tonya stated that "Pensions are essentially mechanisms to provide guaranteed income for retirees. It is clear that individuals are living longer, and consequently pensions need to cover more than previously required”. Given the dynamic Tonya noted that for some it could make sense to have payments start later, so that costs are more tolerable. Tonya also noted that whether increasing the retirement age makes sense or not depends on the ability of individuals to continue working, which would include factoring in the type of employment. “For instance, if employment involves intense physical exertion, working longer may not be viable and having a late retirement age may not be desirable. For those who are able to continue working or are able to find feasible employment, delaying retirement age would be one way of adjusting the cost for the program in light of increased longevity” remarked Ms. Manning. A further aspect involved current discussion on the future position of the US government to provide social insurance programs. The topic has warranted substantial debate, including on how efficient the current trust fund systems are and what assessments might be needed in the course of formulating sustained programs. "This question is quite complex, and informs discussions frequently raised in political circles. At this point, the future remains uncertain." Tonya Manning said.
"We think this is an excellent opportunity to collaborate with the firms, universities and the China Association of Actuaries to promote the development of China's Insurance market." Tonya Manning pointed out. She went on to note that China's current developments in auto insurance rates and growing interest in catastrophe insurance, represent areas in which the SOA is hoping to provide a useful reference and strengthen ties with China’s relevant authorities, thinkers and actuaries. "In North America the SOA is conducting research on climate change and its implications which will be useful for actuaries, companies and insurance needs. I am sure there will be similar research opportunities in China." Tonya Manning said.