Meeting the Challenges of the Change as an Opportunity at the 14th Global Conference of Actuaries (GCA)

FOR IMMEDIATE RELEASE
Mumbai, Maharashtra, India, Republic of (Free-Press-Release.com) February 21, 2012 -- The 14th Global Conference of Actuaries (GCA) organised by the Institute of Actuaries of India (IAI) and the International Actuarial Association [IAA] was inaugurated with a key note address by Mr. J Hari Narayan, Chairman IRDA. Mr. Liyaquat Khan, President of IAI welcomed Mr. J Hari Narayan and traced the development of the Indian Actuarial Profession to the present and outlined the strategies for shaping the future landscape of the Indian Actuarial Profession.

The theme for this year’s GCA was ‘Meeting the Challenges of the Change’. Given the increased linkage among various markets around the world, if anything happens in one part of the world, the impact is seen in rest of the world. In this new world the only thing that does not change is the change itself.

While speaking at the inauguration of 14th GCA, Mr. Khan said, “Most Insurance companies in India are joint ventures between an Indian company and an overseas JV partner. India is emerging as a global hub for Actuarial outsourcing activities. There are over 1,000 actuarial professionals in these offshore Actuarial Centres. In this context, the globalisation of the actuarial studies, quality and experience of actuaries is of paramount importance.”

The number of actuarial students has been increasing rapidly; however, he was not happy with the examination pass rate. He mentioned that Institute of Actuaries of India (IAI) has started an online test, Actuarial Common Entrance Test (ACET). He was very pleased with the interest shown by students in taking the ACET to become members of the Indian Actuarial Profession. He further mentioned that the IAI is fully geared to produce the increased number of the quality actuaries to take the challenges that this new environment is posing to the insurance industry.

Looking at the surge in the number of students in the actuarial profession in India, Mr. Khan said, “The rigorous series of examinations required to qualify as an actuary makes them fit to take any challenges in risk management space even outside traditional areas of actuarial practices and they can play a greater role in areas such as finance, investment, social sector planning, government health planning etc.”

Inaugurating the conference, Mr. J Hari Narayan spoke on various initiatives taken and guidelines that IRDA has issued for orderly development of the insurance market. He further mentioned that various types of assets like interest and equity derivatives that are required by the insurance companies to hedge the guarantees embedded in the guaranteed products are not available for appropriate duration in India. He emphasised on the increasing need for strengthening the skill set of actuaries in India, particularly in the area of general insurance.

He mentioned that Pension benefit is a critical benefit from the customer perspective. At present majority of the annuity contracts are being bought from LIC of India. This poses a systemic risk and therefore there is a need for increased private sector participation in this line of business.

“Meeting the Challenges of the Changes” was the central theme for the 14th GCA held at the Renaissance Hotel, Mumbai on the 20st and 21nd February, 2012. Spread over 10 sessions, the key themes covered at the GCA include responsible intermediation, Enterprise wide risks, Asset Liability Management (ALM), India as Global destination for actuarial service delivery, Educating Actuaries for business leadership, Reinsurance solutions, Micro-insurance and Microfinance. The four concurrent sessions around Life Insurance, General Insurance, Health & Care Insurance and Pensions, Employee Benefits, Social Security were designed to enable subject specific debates on prevailing issues concerning the insurance and employee benefits industry.

Mr. J Hari Narayan, Chairman IRDA, Ms. J Meenakumari, HOD – Actuarial, IRDA, Mr Ashwin Parekh, Partner of Ernst & Young; Mr. Desmond Smith, President of the International Actuarial Association; Mr. Ronnie Bowie, Immediate Past President of the Institute and Faculty of Actuaries, UK ; Ms. Patricia Teufel, President of Casualty Actuarial Society, USA; Brad Smith, President elect of the Society of Actuaries United States, Dr. Fatta Bahadur K. C., Chairperson, Bima Samiti, Nepal and; some of the eminent panellists and presenters who participated in the GCA.

The common binding thread across the sessions at this GCA is Enterprise Wide Risk Management (ERM). There were presentations and round tables delving deep into the ERM framework, which should enable the insurance companies to understand where the risk lie, how to measure these risks; and to find out ways and means of means of managing/reducing these risks.

Global Conference of Actuaries (GCA) is a mega event organized annually by the IAI since 1999, with growing participation from key stakeholders in the Insurance and Financial Services Sector across India and the international actuarial community. Delegates from the Institute of Actuaries of UK, USA, South Africa, International Actuarial Associations, IASB, CAS, International Association of Insurance supervisors (IAIS), IRDA and all insurance and reinsurance companies in India participated in the conference.

Having underscored the message that in these turbulent times, “The World Needs Actuaries – and It is time the World Knows It”, the 14th GCA is truly global event having witnessed participation of over 700 delegates.

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