Africa Sub-Committee Three Year Draft Work Plan Cape Town, 21 November 2016
Agenda State of the Actuarial Profession in Africa Draft Work Plan of Africa Sub-Committee
STATE OF THE ACTUARIAL PROFESSION IN AFRICA
Survey Survey questionnaire prepared and sent out to known associations And individuals in some countries with no association Of 15 known associations, 8 responses obtained Timing of survey vs global survey Hence, presenting limited findings and plea for participation in subsequent surveys
Associations Participating Egyptian Society of Actuaries The Actuarial Society of Kenya Association Marocaine des Actuaires Society of Actuaries of Namibia (Namibia) Nigeria Actuarial Society Actuarial Society of South Africa Association Actuarielle au Togo Actuarial Society of Zambia
IAA Full and Associate Membership in Africa Morocco Egypt Senegal Cote D Ivoire Uganda Kenya Ghana Benin Togo Tanzania Zambia Nigeria Namibia Zimbabwe South Africa Full Member Associate Member Source: IAA
IFOA and SOA Members in Africa IFOA: 52 SOA: 19 IFOA: 42 SOA: 5 IFOA: 5 SOA: 0 IFOA: 23 SOA: 0 IFOA: 80 SOA: 5 IFOA: 4 SOA: 0 IFOA: 20 SOA: 0 IFOA: 28 SOA: 28 IFOA: 216 SOA: 0 IFOA: 1273 SOA: 17 IFOA: 484 SOA: 2 IFOA: 21 SOA: 0 Source: IFoA, SOA, does not cover much of non English speaking Africa
IFoA Membership in Africa Member Type No. Members Mix Student 1,446 60% Fellow 758 32% Student Actuarial Analyst 78 3% Affiliate 68 3% Associate 44 2% Grand Total 2,394 100% Source: Institute and Faculty of Actuaries
Membership in Africa - IFOA Country Affiliate Associate Fellow Student Analyst Students South Africa 64 31 704 21 453 Kenya 1 2 18 21 442 Zimbabwe 1 8 4 203 Mauritius 2 6 13 4 81 Nigeria 1 7 5 67 Egypt 3 2 47 Ghana 1 1 2 38 Botswana 1 1 26 Tanzania 8 15 Uganda 9 14 Zambia 20 Namibia 4 2 10 Ethiopia 5 Malawi 5 Cameroon 4 Rwanda 4 Swaziland 3 Lesotho 2 Sierra Leone 1 1 Sudan 2 Cote D'ivoire 1 Madagascar 1 Morocco 1 Mozambique 1 TOTAL 68 44 758 78 1446 MIX 3% 2% 32% 3% 60% Source: Institute and Faculty of Actuaries
Number of Actuaries in select African Countries Survey Question: How many actuaries are in your country? Name of Association Qualified Actuaries Partly-qualified Actuaries Interested Persons Association Marocaine des Actuaires (Morocco) 125 100 - Actuarial Society of Zambia (Zambia) - 10 20 Association Actuarielle au Togo (Togo) 1 16 2 Egyptian Society of Actuaries (Egypt) 33 73 - Actuarial Society of South Africa (South Africa) 1,200 1,800 - Society of Actuaries of Namibia (Namibia) 5 15 10 The Actuarial Society of Kenya 18 100 1,000 Actuarial Society of Nigeria 10 30 100
Growth in the number of Fully Qualified Actuaries (FQAs) in Africa ALL Africa Americas Asia & Oceania Europe Number of FQAs in 2015 Number of FQAs in 2010 67,430 1,141 37,853 5,866 22,570 51,826 807 30,719 4,830 15,470 Average annual growth rates of FQAs, 2010-15 5.4% 7.2% 4.3% 4.0% 7.9% Source: IAA Survey Status of the Global Actuarial Profession 2016
University education remains the most preferred mode of Actuarial education Question: How have actuaries in your country received their actuarial education? Actuarial options on other first degree Institute of Actuaries of India 0% 0% Actuarial Society of South Africa 8% Doctorate degree Distance learning education 1% 1% Actuarial Science first degree programme Faculty and Institute of Actuaries Masters programme Society of Actuaries 7% 8% 11% 11% University Education 60% 0% 10% 20% 30% 40% 50% 60% 70%
Proportion of actuarial graduates absorbed into mainstream actuarial work Country % Egypt 50-75% Kenya <10% Morocco 80% Namibia 10% Nigeria 1% South Africa 65% Togo 67% Zambia tbc Inadequate job opportunities forcing many students to abandon career
Adequacy of supply of actuaries Country Egypt Kenya Morocco Namibia Nigeria South Africa Togo Zambia Y Y Y N N Y N N
In what field of activity are actuaries employed in your country? - Not well answered Country Life insurance Health care General insurance Social security pension schemes Investment Other Morocco 9% 9% 17% 4% 4% 0% 0% Togo 9% 0% 0% 0% 0% 0% 0% Zambia Egypt 13% 0% 4% 9% 4% 0% 9% South Africa Namibia 0% 0% 0% 0% 9% 0% 0% Kenya 20% 15% 7% 1% 60% 5% 5% Nigeria
Areas of Work as Reported in IAA Global Survey In which of the following tasks are your members currently involved? Total (47) Africa (6) Americas (9) Asia & Oceania (9) Europe (23) Highincome (31) Middleincome (16) Management of Actuarial Department or Function 91% 83% 89% 78% 100% 97% 80% Pricing 91% 100% 78% 89% 95% 90% 93% Product Development 91% 100% 67% 100% 95% 90% 93% Regulation 84% 83% 78% 89% 86% 90% 73% Asset Liability Management 80% 50% 100% 89% 76% 93% 53% Reinsurance 80% 50% 67% 78% 95% 87% 67% Modeling, forecasting, cash flow testing 78% 33% 89% 78% 86% 93% 47% Reserving 78% 50% 67% 78% 90% 87% 60% Data analytics (e.g., predictive modeling) and business intelligence 71% 67% 78% 78% 67% 77% 60% Enterprise Risk Management 71% 67% 56% 67% 81% 90% 33% Executive Management (e.g., CEO, CFO, Chief Risk Officer) 71% 50% 56% 78% 81% 83% 47% Planning - Strategic and Financial 69% 67% 56% 78% 71% 80% 40% Risk Capital Management 69% 50% 44% 78% 81% 83% 80% 16 Percentages are based on respondents (i.e., not counting missing responses)
Areas of Growth in next 5 years In the next five years, which new industries or tasks will offer the biggest opportunities for your members to play a role? Data Analytics & Business Intelligence 17 Total (40) Africa (6) Americas (9) Asia & Oceania (8) Europe (17) Highincome (26) Middleincome (14) 55% 33% 67% 75% 47% 73% 21% Risk Management inc. ERM 45% 50% 44% 50% 41% 46% 43% Banking 25% 33% 22% 25% 24% 23% 29% Asset Management & Investments 15% 17% 11% 13% 18% 15% 14% Regulation/ Reporting Standards 15% 0% 33% 0% 18% 23% 0% Healthcare 15% 17% 22% 0% 18% 15% 14% Property & Casualty / General Insurance 15% 17% 22% 13% 12% 12% 21% Other Industries: Natural Resources, Government, Manufacturing, etc. 13% 50% 0% 13% 6% 8% 21% Pension & Retirement 13% 0% 11% 25% 12% 15% 7% Other Tasks: IT, Marketing, Strategy, Board, etc. 10% 0% 11% 13% 12% 15% 0% Consulting & Auditing 10% 0% 11% 0% 18% 8% 14% Pricing 8% 17% 0% 13% 6% 0% 21% Telecommunications 5% 33% 0% 0% 0% 0% 14% Life Insurance Percentages are based on respondents (i.e., not counting missing 5% 0% 0% 13% 6% 0% 14% responses)
Profile of Profession/Association in Country Is the association consulted by government or by regulatory bodies? Yes 100% No 57% Yes 43% Is membership in your association recognised by any regulatory or official body? Does the association play an active role in marketing the profession? No 43% Yes 57%
Associations do seem to say they play an active role in educating actuaries Does your association play an active role in educating actuaries? Initial technical education Country specific education in applications of actuarial science Professionalism education Name of Association Association Marocaine des Actuaires (Morocco) Yes Yes Yes Yes Association Actuarielle au Togo (Togo) Yes Actuarial Society of Zambia (Zambia) Yes Yes Yes Yes Egyptian Society of Actuaries (Egypt) Actuarial Society of South Africa (South Africa) Society of Actuaries of Namibia (Namibia) Yes Yes Yes Yes The Actuarial Society of Kenya Yes Yes Yes Actuarial Society of Nigeria Yes Yes Yes Continuing professional development or education
Professional Code of Conduct Country Egypt Kenya Morocco Namibia Nigeria South Africa Togo Zambia Y Y Y Y N Y N N
Codes of conduct and qualification standards in Africa need lots more work to be done Has your organization established any of the following professional standards for actuaries? Total (43) Africa (6) Americas (9) Asia & Oceania (9) Europe (19) Highincome (28) Middleincome (15) Code of conduct - the ethical responsibilities to the public, clients, employers and profession Standards of practice - the framework for performing professional assignments Qualification standards - the requirements for education and experience Other (e.g. CPD, Technical Guidelines, Disciplinary Process etc.) 84% 67% 67% 89% 95% 96% 60% 60% 50% 44% 67% 68% 71% 40% 74% 67% 67% 67% 84% 89% 47% 23% 17% 44% 11% 21% 21% 27% None of the above 9% 33% 0% 11% 5% 0% 27% Multiple responses accepted 21 Percentages are based on respondents (i.e., not counting missing responses)
Challenges/Threats Too few (fully qualified) actuaries working in Africa other than SA Limited resources for teaching and training Lack of practical/industrial training and attachment opportunities Mentoring of students, particularly those who are working Limited employment opportunities Sense of frustration of partly qualified actuaries as they are viewed somewhat as not good enough during the transition phase
Challenges/Threats Ensuring a consistent interpretation of what is an actuary Minimum associated professional standards should be Lack of awareness among policy makers, regulators and industry Regulation is weak Recognition of actuaries is poor Recognition of actuaries by company directors Lack of support from the key Government agencies in recognizing the profession alternatives like economics are given more prominence
Challenges/Threats Raising actuaries awareness on having a strong local profession Maintenance of professional standards through consistent pre and post qualification requirements and experiences Brain drain to developed economies Retention within the profession Competition from accountants and CFAs Lack of members involvement and hence lack of profession activites Lack of financial resources Poor links with policy makers, regulators, industry and other stakeholders
Within the next five years, what are the greatest challenges or threats to the actuarial profession? Total (37) Africa (5) Americas (8) Asia & Oceania (7) Europe (17) Highincome (24) Middleincome (13) Loss of Traditional actuarial work 38% 20% 50% 43% 35% 46% 23% Competition from Non-Actuaries 30% 60% 25% 14% 29% 33% 23% Regulatory Changes 27% 20% 38% 14% 29% 33% 15% Low Awareness/ Recognition/ Bad Publicity 22% 20% 50% 29% 6% 25% 15% Maintaining/ Improving Reputation 19% 20% 38% 0% 18% 8% 38% Technology/ Computerization 14% 40% 13% 29% 0% 8% 23% Other Market changes (e.g. Interest Rates) Rote/ Automated Work/ Over reliance on Models 11% 20% 13% 14% 6% 13% 8% 8% 0% 0% 0% 18% 13% 0% Lack of Students/ Candidates 8% 20% 0% 0% 12% 8% 8% Consolidation in Insurance Industry 8% 0% 13% 14% 6% 8% 8% 25 Percentages are based on respondents (i.e., not counting missing responses)
Awareness of IAA All responses indicated awareness of activities of IAA 5/8 indicated awareness of IAA Sections All had suggestions for the Africa Sub- Committee
Support from Africa Sub-committee requested in Engaging regulatory authorities and industry Working with regulators to develop statutory actuarial roles Actuarial profession marketing More local training opportunities Support through availability of qualified actuaries to be part of the local university faculty Financing of examinations and courses News on Africa actuarial activities Funding education of African actuaries
Suggested further survey through targeted calls to: Get more accurate and verifiable data and information Better assessment of in country and regional status and needs Target to get in country reports from each country in time for Budapest
AFRICA SUB-COMMITTEE DRAFT WORK-PLAN 2016-2018
Role of Africa Sub-Committee To provide advice and assistance that will support the development, organization and promotion of the actuarial profession and actuarial education in Africa
Key Strategic Themes (2016 2018) Actuarial Associations Supporting & facilitating the creation of national/ regional associations Marketing Marketing/branding actuarial profession with emphasis on its relevance to Africa Actuarial Education Supporting actuarial education and training programs Standards/Professionalism Establishing and maintaining high standards of professional conduct
Strategic Object 1 - Supporting & facilitating the creation of national associations Activity Timeline Accountability Identify actuarial associations that exist in the relevant countries and their membership and level of activity Partially done Verification by April 2017 Done Identify potential: FMA candidates AMA candidates Creation of association Prepare framework to: Enable formation of actuarial associations where none exist Strengthen existing associations Create support system and ideas for collaboration amongst actuarial Done Done To be done IAA material available, review and tailor by Dec 2016 In 2018 Tbd With assistance of IAA Tbd
Strategic Object 1 - continued Activity Timeline Accountability FMA Get status on current FMAs Target countries Nigeria Mauritius (AMA and FMA) Ghana Zimbabwe Namibia April 2017 Dec 2017 Apr 2018 Dec 2016 Dec 2017 Dec 2017 SKR SKR tbd Almost done tbd tbd
Strategic Object 1 - continued Activity Timeline Accountability AMA Get status on current AMAs Target Countries Cameroon Rwanda Ethiopia Botswana April 2017 Apr 2017 Apr 2018 Dec 2018 Apr 2018 SKR tbd tbd tbd tbd Others
Strategic Object 2 - Marketing/Branding Actuarial Profession in Africa Activity Timeline Accountability Building actuarial brand Supporting actuarial associations with actuarial brand, work off IAA brand kit Identify 2 pilot FMA associations and 2 pilot AMA associations Oct 2017 Engagement and lobbying Regulators Supranational bodies -WB,IDB, ILO,IAIS Industry and business Outreach Educational institutions Other professions Support research activities Regional forums proposed 2017
Strategic Object 3 - Actuarial Education Activity Timeline Accountability Route to qualification as actuary (recognize no single route) Identify parallel initiatives Study and make recommendations on designations, CAA, ASSA education strategy, others, etc? What is realistic? Will there be duplications? Seminars and courses AWB Reaching out to other associations - ASSA, TASK Regional forums proposed 2017
Strategic Object 4 - Actuarial Standards and Professionalism Activity Timeline Accountability Develop/disemminate actuarial standards that may be considered for adoption/tailoring by individual country associations or regionally, including: Categorizations and roles Codes of Conduct Relevant professional guidance notes Professionalism courses Develop/ share guidance notes for actuarial work and get regulatory buy in Pilot test? What is realistic? Training of trainers for conducting professionalism courses in 2017
Any others?
THANK YOU