The Hindu Business Line : Opportunities for foreign actuaries in India

In demand
Out of only 132 active members in the Actuarial Society of India, only 50 are in India
With a number of insurance companies in India being in joint ventures with a foreign partner, it has paved the way for foreign actuaries

Mumbai , July 20

Spurred on by the challenges and opportunities of an evolving insurance market, foreign actuaries are being drawn to Indian shores. With Indian insurance companies offering pay packages that are on par with developed markets such as the UK and the US, they say the move makes eminent professional sense.

`Broader role'

Mr Bryce Johns, Vice-President, Business Development Actuary of Kotak Mahindra Old Mutal Life Insurance, has several years of international professional experience to his credit. He moved to India recently.

"In a large company in the UK, the role of the actuary is often more specialist than generalist. A qualified actuary in India has a much broader role to play in the business at all levels given the current skills shortage in India," he said.

"Many insurers are in an embryonic stage and hence product development (retail and group), valuations, pricing, reinsurance, business planning and marketing have to be done by the same team," Mr Johns added. Actuaries in India are currently in short supply. While there are 206 members in the Actuarial Society of India, only 132 are active and the rest are past retirement age. Of these 132 members, only around 50 are in India. Since a number of insurance companies in India are joint ventures with a foreign partner, it has paved the way for foreign actuaries.

High salary

Mr K.S. Gopalakrishnan, Secretary-General, Actuarial Society of India, said that there would be around ten foreign actuaries in India. Actuaries are also being offered compensation packages that are more or less on par with countries like the UK, if one considers the cost of living.

A qualified actuary with experience of around 5-10 years would earn about 80,000-100,000 (Rs 68-85 lakh) a year in the UK. The salary on offer in India is currently close to this level. "The compensation package for an experienced actuary in India is rapidly moving in line with what is on offer in developed countries, especially if one takes into account the relative costs of living," said Mr Johns.

`Dynamic market'

Mr Heerak Basu qualified as an actuary from the UK and has 10 years of international experience. But the `Indian growth story' inspired him to join Tata AIG Life as their appointed actuary in 2004. "As an actuary in India, one has to compute liabilities and calculate lapse rates, mortality rates and a gamut of other actuarial rates because the market is dynamic and there are new players. In the UK, the experience is more stable as the market is mature," he said

Analysts say that India and China are currently viewed as the hot spots in terms of the growth of the insurance market. "Once the Indian regulation requires insurance companies to move towards the risk-based capital model or implement international accounting standards, foreign actuaries will definitely be more in demand," Mr Basu said.