The Mission and Quality of Actuaries

For some time, the word "actuarial" has been heated up by some media, and the reports on the actuarial qualification examination and the discussion on the needs of actuaries in China are also heating up, which makes people feel a little hot. In fact, how important actuarial positions are in the insurance field. How much actuaries want depends on the specific conditions of different countries. This is not only influenced by the national tradition, laws, the functions of relevant regulatory authorities and the employment opportunities created for actuaries, but also by the management system and thinking mode of the decision-making level of enterprises that employ actuaries, which largely depends on how much and how good actuaries can do. This paper mainly discusses the actuaries of insurance companies.

I. Functions of actuaries

Actuaries of insurance companies can at least play a role in the following aspects:

1. Innovation and pricing of insurance products. For example, according to the change of political and economic environment and the fluctuation of market demand, we will develop new products with different quality, cooperate with pricing strategy, and determine product prices according to the company's practice and goals.

2. Market analysis and profit analysis of insurance products. According to business objectives (such as capital appreciation rate, etc. ), the company's business characteristics (such as reinsurance arrangements, cash value formulation, investment performance, etc.). ) and market characteristics (such as the composition of customer base and the influence of target market, etc. ), analyze the feasibility of each product sales, lay the foundation for product pricing, and analyze the overall cost and profit on this basis.

3. Value display and preservation service of insurance products. For example, show the appropriate cash value of the policy in the product manual or policy, make bonus instructions, etc. , and handle the change of policy amount.

4. Empirical analysis of various factors affecting profit. On the basis of data sharing and statistical accumulation, this paper summarizes the characteristics of the company's mortality rate, termination, expense distribution, budget situation, policyholders and insurance coverage distribution, and provides basis for marketing and pricing decisions.

5. Prepare liability reserves and actuarial reports for various purposes. Compare and analyze various reserve calculation methods, choose the method that is most suitable for various product characteristics and company objectives or related policies, and analyze and evaluate the impact of hypothetical changes on the company's current situation and future under the legal premise. Select the evaluation hypothesis that is most beneficial to the company's business objectives. Provide corresponding actuarial reports for various reserve calculations and their results.

6. Cash flow analysis and participation in asset and liability management. Through the case analysis of cash flow under different conditions and its influence on the company's finance, as well as the analysis of asset composition and its matching with liabilities, we can find a better product and strategy combination and deal with more risks.

7. Participate in the discussion and formulation of investment structure and its strategy. According to the data of empirical analysis and the experience of asset-liability management, it affects investment decisions.

8. Participate in the preparation of major financial statements. For example, prepare different suitable reserves for statements provided by different objects, including long-term life insurance reserves, outstanding claims reserves, outstanding claims reserves, unreported reserves and various risk reserves.

9. Prepare various reports and statements regularly to provide detailed and reliable data and latest information for decision makers.

10. Prepare and calculate the policy bonus.

1 1. Participate in the promotion of internal informationization and the management of other financial risks.

At present, due to the limitation of quantity or technology or the definition of related positions, actuaries in China only engage in some work. To undertake these responsibilities, it needs the joint efforts of actuaries and all parties.

Second, the actuary's mission in China

As can be seen from the previous chapter, the work of actuaries is actually closely related to the growth of the company's profit rate or capital value. Its basic function is to predict risks, prevent and resolve risks, and make the company operate safely and effectively. Ensure the company's stable long-term interests. However, due to the lack of universality of this understanding. At present, domestic actuaries just "the company wants me to do this ...". The fact should be "I want to tell the company to do this …" or "I want to tell the company that I can do this …", so actuaries in China are given more responsibilities because of their status.

Actuarial science and modern life insurance are developing simultaneously, and this development process can be described as "changing with each passing day" in China. In just a few years. Whether it is citizens' insurance awareness, the company's products and their sales methods, or some management methods, it has condensed the development process of the West for decades. In this case, most domestic insurance companies are unconsciously faced with the status quo of external components (such as insurance policies, products, sales methods, etc.). ) follow up quickly and internal components (such as business philosophy and management methods, etc. ) are relatively lagging behind. However, some foreign companies are faced with the problem of how to correctly understand the China market, adapt to the competition as soon as possible and accurately position themselves.

This is indeed an opportunity for Chinese actuaries at present.

As many actuarial textbooks are imported from the west, actuarial science is a technology that can penetrate into all aspects as far as the insurance industry is concerned. Therefore, while studying actuarial technology, actuaries have at least learned about the development of foreign insurance industry, the evolution of products, the update of risk control and management technology, the development of actuarial technology and its rooted ideas. At present, there are very few talents in all aspects of domestic companies, especially those who are familiar with modern life insurance management. Because of its marginal technology and more international communication opportunities, actuaries can fully understand the requirements of insurance policies and their management, and accept western insurance management ideas more easily. Recognize the crisis that the company may face earlier.

Therefore, if the current actuaries in China only take learning technology to solve basic actuarial problems as their responsibility, the actuaries themselves and even the future development prospects of the industry will have many limitations. Due to quantitative reasons and the unique role of actuaries. Because of the promotion and publicity of education and practice, actuaries are paid more attention than other professions. However, there are only a few companies in China that fully understand the role of actuaries, which will more or less affect the development of China's national insurance industry. Therefore, I think actuaries in China should realize many of their missions historically. For example:

1. Improve your actuarial skills, correctly understand actuarial functions, and effectively solve practical problems. It is fundamental and fundamental to solve the basic problems such as the rationality of the price system and the effectiveness of reserve evaluation.

2. Focus on actuarial learning courses. Taking the relevant actuarial qualification examination should still be an important part of actuary's life at present. Its function is obviously reflected in two aspects: first, through active high-density learning, we can understand and master more advanced technologies and theories in a short time, so as to explore various ways and means to solve problems and play a more effective role in practice; Second, other tasks can be better guaranteed by obtaining certain qualifications, being objectively recognized and being in line with international standards.

3. Promote technical exchanges between domestic insurance industry and foreign counterparts. While the domestic insurance industry knows more about overseas technology, it will help overseas colleagues to correctly understand the domestic market environment, relevant standards and technical level, and promote mutual understanding and cooperation, which will be more conducive to solving practical problems in China's insurance industry and help practitioners to see the contribution and influence of actuaries in solving important problems.

4. Educate and guide the domestic industry to correctly understand the significance and role of actuarial science, and expand the operation scope of actuarial technology in insurance companies and their regulatory departments. At present, the re-export of actuary knowledge is also extremely important. Through dialogue, persuasion and actual work performance verification, the operator's risk awareness and sense of crisis are enhanced, so that the company's top management. Turning to the thinking mode of relying on reliable data and actuarial analysis to make risk prevention decisions will greatly promote the healthy development of the national insurance industry.

5. Constantly improve personal quality, make yourself a more comprehensive financial talent, and better assume the responsibility of risk management. At present, excellent actuaries are likely to bid farewell to actual actuarial work in the near future and become managers in a certain field.

Three, actuarial personnel should have the quality.

The quality required by actuaries can be composed of three parts: one is knowledge structure, the other is ability composition, and the third is personality quality. You can't be an excellent actuary without any of these three aspects.

The composition of knowledge mainly includes the basic knowledge and skills of mathematics, the macro knowledge of economic, financial and insurance theories, and the basic means of applying these knowledge to practice, such as mastering information technology and computer programming ability. The key is to master. Instead of high scores and low energy.

The requirement for actuaries' ability is based on a comprehensive grasp of the above knowledge, which can generally include independent thinking and innovation, analysis and comparison, coordination and expression. The ability of independent thinking and innovation means that the mission of actuaries is not only to solve current problems with technology, but also to educate and introduce advanced ideas. Based on the actual situation in China, many times the new generation of actuaries rarely have the opportunity to find routines or experience that they can rely on completely when encountering difficulties, so the ability of independent thinking and innovation is particularly important. This kind of innovation is of course based on rational thinking and repeated practice. On the other hand, today's actuaries are also very lucky. What they face is almost a blank sheet of paper. Their work is very challenging and creative in domestic companies, and they can draw beautiful pictures on their own. The ability of analysis and comparison means that although actuarial science is achieved through the application of mathematical techniques, it is not a pure mathematical process, which requires actuaries to make a more macroscopic and reliable prediction for the future, that is, to make an economic prospect by mathematical means. Its foundation is based on the collection and summary of past experience and the vertical and horizontal comparative analysis. In a sense, setting an appropriate goal and a set of reasonable assumptions is more important than correct calculation. Due to historical reasons, there is little statistical analysis of relevant data in China at present. How to make the most effective achievements with limited data is largely reflected in the ability differences of actuaries. The coordination ability is important because the actuarial department is not an isolated department, and the acquisition of its basic information often depends on other departments, and its analysis results and policy implementation often need extensive discussion, persistence and concessions with relevant departments. Therefore, the higher the position of the enumerator, the more time you need to spend on management and coordination, and the more you need to have better expression skills. That is to say, report the purpose or result of one's work in as simple and clear a language as possible, or skillfully persuade decision makers to adopt more reliable and effective strategies according to the obtained predictions. Actuaries can sometimes be said to be "predictors" of risks, but unfortunately, they cannot be effectively expressed in the face of this situation. Good expression ability has great influence on realizing the risk management function of actuaries and improving the right to speak in the company.

In addition to the necessary knowledge and ability, character and accomplishment are the necessary conditions for assessing whether an actuary can make a difference and be respected. A qualified actuary needs a strong sense of responsibility, down-to-earth style, modest and prudent quality and enterprising spirit. In fact, actuarial science is valued not because of its advanced technology or few employees, but because of the problems it can solve and the important mission of actuaries. Because of this, if an irresponsible person is engaged in actuarial work, it is like installing a useless lock at home, which can't be opened at a critical time, or just installed, but it paralyzes the owner and can't prevent thieves at all, and its adverse consequences are even more serious. Actuaries' sense of responsibility should be manifested in working realistically and reflecting the situation. Even if you encounter difficulties and resistance, you should bear the burden of humiliation, have the courage to persistently reflect the real situation to the top, and try your best to persuade the decision-makers to take decisive measures. It can even be said that the responsibility of actuaries affects the fate of the company. Of course, it also depends on the company's mechanism. Actuarial science is an extremely important position, but we should also start with very simple things. If an actuary lacks a down-to-earth spirit, he may not be able to do great things in his life. Senior actuaries not only have the corresponding theoretical level, but also come through hard work step by step. Because most actuaries are engaged in future-oriented calculation and analysis, its accuracy is difficult to be tested or takes a long time, so the quality of modesty and prudence is particularly important. Especially at present, the actuarial software systems of most domestic companies are not very advanced. Actuaries should listen to opinions widely, be cautious and test repeatedly to ensure high accuracy.