Actuarial professionThe western Balkan case

Klime Poposki

CEE & SEE – Regional Actuarial Insurance Conference, 22 February 2018, Skopje

Content

Actuarial profession in Macedonia

From the beginning

The role of the Insurance Supervision Agency

Actuarial education in Macedonia

History, organization and specifics

Actuarial education in the region

What next?

Actuarial profession in Macedonia

Roadmap

The role of the ISA

Actuarial association

Actuarial profession in Macedonia - beginning

Until 2010 out of 13 companies, 9 companies were sharing the same actuary

GENERAL PERCEPTION about ACTUARIES:

• Considered to be a regulatory imposed burden;• Believed that without them, companies would work equally good and

maybe even better,• Involved only in reserving, as “this is what actuaries know to do”;• Understood as working against the interest of the company – as ”they”

reduce the profit.

Warning situation with the technical provisions

Phase 1

Observed conditions

In November 2009, the ISA was established

Regulatory framework• Qualified actuary;• Education standards;• Appointed actuary;• Responsibilities of the appointed actuary• Rules of the actuarial profession

‒ Minimum standards of conduct and the continuing actuarial education• Penalties and revoking the license

Supervisory activities and measures• Intensified and standardizes reporting standards• Frequent on-site inspections• Main focus on technical provisions • Supervisory measures - orders, warnings, recommendations, guidance• Broadened the scope of actuarial work,

‒ Besides technical provisions, focused on reinsurance operations, pricing, product design, companies information systems etc.

‒ Increased the number of company’s documents that should be signed by the appointed actuary

Actuarial education

Close cooperation with MAA “Actuary”

Actuarial profession in Macedonia - the role of ISA

Phase 2

Activities

Actuarial profession in Macedonia - the role of ISA

Where are we now?

There are 32 actuaries who passed the actuarial exam, • of which 29 are qualified

Each company has at least one actuary

Appropriate level of technical provision

Actuaries are involved not only in provisioning, but also in other areas of insurance operations

Phase 2

Achievements

Actuarial profession in Macedonia - the role of ISA

What are we going to do?

Actuaries and the risk management and decision making

Information system of the companies

Actuaries and external audit

MTPL Tariff liberalization

Solvency 2 implementation

Phase 3

Future challenges

The Macedonian actuarial association

Macedonian actuarial association “Actuary”

• Established 2004

• Mission statement

• MAA “Actuary” documents that regulate the actuarial profession‐ Code of professional conduct‐ Rulebook on the disciplinary procedure‐ Educational program for actuaries‐ Rulebook on the continuing professional development

• Associate member of IAA (2006 – 2016)

• Regular member of IAA, since 2016

Actuarial education in Macedonia

History

Organization

Specifics

History of the actuarial education in Macedonia

2002 – 2004

2007 – 2009

2011 – 2013

9actuaries

10actuaries

11actuaries

• Ministry of finance• Financial Services Volunteer Corps

(FSVC)

• Insurance supervision agency• Syllabus restructure (to fully

comply with the structure of Croatian syllabus)

Specifics of the actuarial education in Macedonia

Syllabuses• In compliance with the IAA guidelines (until 2017)

1. Probability and statistics2. Financial Mathematics3. Stochastic modeling4. Survival models5. Economics6. Actuarial mathematics 1 - Life7. Actuarial mathematics 2 - Nonlife8. Investment and Asset Management

Studying materials Lecturers• Not available in Macedonian Univers. Professors from Croatia and Macedonia• Copyright Agreement Experts in the field from Croatia

Organizing exams Qualification of foreign actuaries• 2 possible examinations for each subject• If candidate doesn’t pass, he/she ends the education

9. Life insurance10. Non-life insurance11. Pension insurance12. Health insurance13. Accounting and financial statements14. Professionalism and ethics15. Law

Actuarial profession in the region

Common challenges

No. of qualified actuaries

No. of companies

Average Source

Albania 31 11 2.8Albanian financial supervisory authority

BiH 36 13 2.8 Insurance agencyof Bosna and Herz.

Kosovo 10 15 0.7 Central Bank of Kosovo

Macedonia 29 16 1.8Insurancesupervision agency of Macedonia

Montenegro 13 10 1.3Insurancesupervision agency of Montenegro

R. Srpska 37 14 2.6 Insurance Agency of Republika Srpska

Serbia 73 21 3.5 National bank of Republic of Serbia

Actuaries in the region

Average number of actuaries per insurance company 0.7 – 3.5

Availability

Actuarial education in the region

Yes No N/A

AContinuity

ConvenienceEmerging

Self-sustainabilitySystemic solution

4 13

1 33

1 33

6 1

1 33

1 17

CCESS

!!!

Conclusions and reccomendations

For the western Balkan:

Harmonized regulatory framework for actuarial education and licensing

Regional Center – what role?

Education

Actuarial education Continuous education for actuaries Diploma’s equivalence

Statistics

Research Catastrophe modelling Probability tables

Thank you

Klime PoposkiThe President of the Council of Experts

Insurance Supervision Agency of the Republic of MacedoniaEmail: klime.poposki@aso.mk

www.aso.mk