Session K1 Actuaries in China - Actuarial Techniques as an Important - PDF document

Session K1 Actuaries in China - Actuarial Techniques as an Important Cornerstone of Insurance Business Presenter: Yulong Zhao, HFIA, Ph.D. SO SOA A Anti titr trust D Disclaimer imer SOA P Presentatio ion D Discla laime

Actuaries in China —Actuarial Techniques as an Important Cornerstone of Insurance Business China Banking and Insurance Regulatory Commission Dr. Zhao Yulong 2018 SOA China Symposium

CONTENTS Current Situation of Chinese Actuarial I Practitioners II Forecast Analysis of Chinese Actuarial Industry III Perspective on Actuarial Career in China

目录 CONTENTS Current Situation of Chinese Actuarial I Practitioners II Forecast Analysis of Chinese Actuarial Industry III Perspective on Actuarial Career in China

In Recent Years, the Number of Actuaries in China has Increased Rapidly  Take the CAA as an example, since its qualification exam began in 2000, by the end of 2017, 2,476 qualifications have been issued. Among them, 657 are fellowship qualifications (including 191 non-life fellows). This has cultivated a group of technical personnel and high-level professional for China’s insurance industry 466 The Number of Fellowship Qualification 422 (1997 – 2017) 380 322 Life Insurance 269 Track 210 191 176 162 151 129 119 96 88 72 68 Non-life Insurance 56 50 43 41 Track 22 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 * By the end of 2017, 23 people have obtained both life insurance and non-life insurance FCAA qualification 4

In Recent Years, the Number of Actuaries in China has Increased Rapidly  The number of FSA, FCAS and FIA working in mainland China continues to increase The number of actuaries who work in mainland China and have qualifications from foreign actuarial associations 488 FSA 469 447 79 FIA 73 65 CAS 62 61 61 2015 2016 2017 * Above data are provided by actuarial associations 5 *In addition, according to the industry statistic, by the end of April 2018, there are 13 FIAAust and 20 fellows from other actuarial associations

Current Situation of Chinese Actuaries  By far, there are 1,108 fellows and 2,186 associates in China. – Fellowship Qualification: 1,108 people have obtained one or more fellowship qualification, including 634 people have obtained CAA qualification(FCAA), 488 people have obtained SOA qualification (FSA), 62 people have obtained CAS qualification (FCAS), 79 people have obtained the IFoA qualification(FIA), 13 people have obtained IAAust qualification(FIAAust), 20 people have obtained fellowship qualification from other associations.(other fellows) – Associate Qualification : 2,186 persons have obtained one or more associate qualification, of whom 1,905 held CAA qualification(ACAA), 506 people have obtained SOA qualification(ASA), 23 people have obtained CAS qualification (ACAS), 27 people have obtained IFoA qualification(AIA ） , 10 people have obtained IAAust qualification(AIAAust), and 6 people have obtained associate qualification from other associations(other associates).(excluding the people who have obtained any actuary qualification listed above) * Out of the above data, the number of FCAA, FSA, FCAS, FIA, ACAA, ASA, and ACAS are provided by actuarial associations as of the end of 2017. The number of FIAAust, other fellows, AIA, AIAAust, and other associates are based on the industry statistics as of April 2018. 6 ** * There are some differences between the data provided by actuarial associations and data from the industry statistics. This is because the assertion data are by the end of 2017, while industry statistics are by April 2018. Also, some members don’t keep most update to date database in the associations. Also, many association members are students, which cannot be collected from the industry statistics.

Explanation of the industry statistics of the actuarial practitioners’ situation in China  In order to collect the situation of actuarial practitioners in China, in May 2018, we sent out questionnaires on actuarial statistics to various insurance groups (holding) companies, insurance companies, insurance asset management companies, mutual insurance societies, accounting firms, actuarial consulting companies, Internet start-ups, actuarial associations, some universities and relevant industrial companies, and collected Number 268 valid questionnaires. Types Reported The coverage of this statistic includes ：  P&C 88 Life Insurance 86 − 197 insurance groups and insurance companies Reinsurance 11 Insurance Groups 12 − 38 companies in related industries, such as insurance asset Subtotal 197 management, actuarial consulting, accounting firms, Insurance Asset Management 14 Internet start-up companies, securities funds and insurance Consulting 5 Accounting Firms 4 intermediaries Internet start-ups 4 − 24 universities and 5 actuarial associations Securities fund 4 Insurance Agents 2 − The former CIRC system as well as data from UK, Australian Others 5 and Hong Kong insurance regulatory institutions. Subtotal 38 Universities 24 Actuarial Association 5 Regulatory Institutions 4 Total 268 7

The Overall Situation of Chinese Actuarial practitioners and Actuaries  From the industry statistics, by the end of April 2018, there were 1,013 fellows and 1,152 associates, in total there were 3,937 actuarial practitioners in China. – Fellowship Qualification: 1,013 people have obtained one or more fellowship qualification, of whom, 605 have obtained the CAA qualification(FCAA), 500 people have obtained the SOA or the CAS qualification (FSA or FCAS), 72 people have obtained the IFoA qualification(FIA), 13 people have obtained the IAAust qualification(FIAA), 20 people have obtained other fellowship qualification. Of these, 269 have obtained two or more fellowship qualification from actuarial associations  29 people who have obtained the CAA qualifications, 50 people who have obtained the SOA qualifications and 7  people who have obtained IFoA qualifications were not in the scope of this statistical coverage because they might work in other industries or in other countries. – Associate Qualification: 1,152 persons have obtained one or more associate qualification, of whom 639 have obtained the CAA qualification(ACAA), 592 people have obtained the SOA qualification(ASA), 27 people have obtained IFoA qualification(ALA ） , 10 people have obtained IAAust qualification(AIAA), and 6 people have obtained other associate qualification (excluding the people who have obtained any associateship qualification listed above). * In this survey, actuarial practitioners refer to those people whose work require a professional background in actuarial science or work experience in the actuarial industry 8 ** There are some differences between the data provided by actuarial associations and data from the industry statistics. This is because the assertion data are by the end of 2017, while industry statistics are by April 2018. Also, some members don’t keep most update to date database in the associations. Also, many association members are students, which cannot be collected from the industry statistics.

Characteristics of Actuarial Practitioners in China: (a) Mainly Concentrated in the Insurance Industry Chinese Actuarial Practitioners Mainly Concentrated in the Insurance Industry ：  3,357 people work for insurance companies and insurance groups, accounting for 85.3% – Among them, 1,999 people work for life insurance companies, 962 people work for P&C insurance companies, 197 people work for reinsurance companies and 199 people work for insurance groups  312 people work in the insurance related industry, accounting for 7.9% – Among them, there are 207 people working for accounting firms, 81 people working for actuarial consulting companies, 15 people working for insurance capital management companies and 9 people working for actuarial associations  178 people work in colleges and universities, who are engaged in actuarial science education, accounting for 4.5%  29 people worked in the regulatory institution, accounting for 0.7%  61 people worked for Internet start-ups, securities funds and other industries, accounting for 1.5% * It is difficult to make comprehensive statistics for actuarial practitioners outside the insurance industry, so there may be some missing data from universities, securities funds and other industries 9

Characteristics of Actuarial Practitioners in China: (b) High Degree The overall Chinese actuarial practitioners have advanced education Background:  There are 2,948 people who have master's degree or above, accounting for 78%, of whom 87 are PhD, accounting for 2%  811 people have a bachelor degree, accounting for 22% * The statistics above do not include college teachers  1,246 people have overseas study experience, accounting for 33% – Among them, 357 people have studied in the United States, 338 people have studied in the United Kingdom, 213 people have studied in Australia, 142 people have studied in Canada, 92 people have studied in Hong Kong and 104 people have studied in other countries  1,633 people graduated from universities with traditionally strong actuarial program, accounting for 44% – NKU: 450, CUFE: 202, SUFE: 190, ECNU: 164, RUC: 132, HNU: 128, FDU: 122, SWUFE 113, PKU: 75, USTC: 57 * The above statistics do not include college teachers and regulators ** The above statistics only consider the highest educational degree they had 10