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Insurance News

  -  Mar 8, 2013
Composite insurers and takaful operators are given 5 years to split their life and general insurance businesses to separate entities under the new Financial Services Act (FSA).
Will this result in the increase in the demand for actuaries? While RHB Research thinks so, we are of slightly different opinion.
Most composite players currently do not share their actuarial resources across their life and general operations. In fact most general insurers and the general insurance section of composite insurers outsource their actuarial functions to consultants. The separation of life and general units is therefore not likely to result in an increase in the demand for actuaries.
The demand for actuaries will increase however if BNM makes it compulsory for general insurers to set up in-house actuarial department. This move makes sense especially with the pending detariff of motor and fire insurance.
While the current 100 actuaries or so in the country are kind of sufficient to serve the insurance industry, most of the actuaries practise in the life insurance sector. There is a shortage of experienced general insurance actuaries in the country.
There is also a shortage of bumi actuaries in the country. However, as non-bumi actuaries are not prohibited to work in the takaful industry, currently the demand is partially met by non-bumi actuaries.  Approximately half of the takaful appointed actuaries are currently non-bumi.
Financial Services Act to spark new insurance company mergers? - The Star PETALING JAYA: Will the soon-to-be-gazetted Financial Services Act (FSA) and Islamic Financial Services Act (IFSA) spark another round of consolidation among domestic insurers?


Posted by Loo Hai Friday, March 8, 2013 4:25:00 PM Categories: actuary Regulations
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