| A C T U A R I A l | C L U B | @ | I T A M | The current period is proving to be, the world over, a very exciting one for actuaries. The insurance landscape is being shaped by a myriad of factors, a few among them being -
Convergence of financial services -- Bancassurance concept -
Evolution of insurance distribution -- Internet as a distribution channel -
Increasing capital requirements -- Demutualisation -
Deregulation in emerging markets -- Mexico and recently India -
Consolidation in the financial services -- Economies of scale -
Globalization Moreover, with the dynamism of the present day financial markets, insurance companies can no longer ignore the asset side of the balance sheet, the case of General American Life of St. Louis being a recent example. The above and the effect of the Moor's Law (computing) has made obsolete the traditional actuarial methods. As a result, the tool chest of a modern day actuary is bearing an increasing resemblance to that of a financial economist, the difference being that the actuary addresses a larger set of risks than a financial economist. A reflection of this coming-together can be seen in the changes to the educational systems of the two most prominent actuarial societies in the world, namely Society of Actuaries (SoA) of the USA and the Institute of Actuaries (IA) of the UK. Globally, it is the practice that an actuary, by definition, is one who has qualified as a fellow of the local actuarial society, which usually requires one to pass a series of exams and maybe undergo some seminars and/or have some professionally relevant experience. For example, a fellow of the SoA carries the designation FSA and that of IA carries the designation FIA. It is not uncommon to find actuarial talent crossing borders these days, the causal effects being chiefly the folllowing; -
Shortage of actuaries -- In UK, for example, actuary is an official shortage occupation -
Internationalization of markets -- Global insurers and reinsurers and consultants -
Movement of talent to developed countries -- Brain-drain This has prompted the actuarial societies to come up with mutual recognition treaties, for example, the one agreed between the SoA and the IA. In other words we are talking of the convergence of even actuarial qualifications. Moreover, the syllabi of SoA has become devoid of country specific details to a large extent, clearly indicating a global vision on the part of the SoA. Hence we are seeing the emergence of a Global Actuary. All the above lead then to the question that in Mexico where one becomes an actuary by undergoing a Licenciatura en Actuaría program in any of the recognized schools, why is it worth the effort to qualify as a fellow in one of the above societies. The reasons could be one or more of the following, depending of course on the individual. -
If a current ITAM student, 3 courses qualify you for titulacion -
Purely educational point of view -
Increasing presence of foreign insurers in Mexico -- Global hierarchies -
Lifestyle choice -- Globe trotting actuary In this scenario and given my sincere belief that the qualification of FSA/FIA would put a Mexican actuary in good stead for the ever uncertain future, it is my desire to offer help to those who wish to attempt the exams of the Society of Actuaries (USA) or even the Institute of Actuaries (UK). This "unofficial" club is nothing but a formal structure in which to house not only this effort but also of others who wish to contribute in this mainly academic endeavor. This is a work in progress; any constructive suggestions/criticisms would be most welcome. The views expressed are strictly my own and do not reflect in any way of my employer. |
