Download The Society of Actuaries of Indonesia >> Membership

Introduction to
The Society of Actuaries of Indonesia
by Rianto A. Djojosugito
IAA Meetings
May 24 - 28, 2006
Paris, France
Contents
• Where is Indonesia?
• How is the Local Economic Condition?
• The Society of Actuaries of Indonesia
>> Organization
>> Membership
>> Role of Organization
>> What do the Actuaries do?
>> Where do the Actuaries work?
>> What are Major Roles of the Actuaries?
>> Challenges Ahead
2
Where is Indonesia?
• Situated in Southeast Asia
• Archipelago with about 13 thousand islands
• Population size is about 230 million
• Of various ethnics (majority are Malay tribes), and of various
religions (majority are moslems)
• Got its independence in 1945 (effectively in 1950, from
Netherland)
• Capital is Jakarta, situated in the island of Java
• Other cities and islands are for examples: Banda Aceh and
Medan (in Sumatra), Surabaya and Bandung (in Java),
Denpasar (in Bali), Pontianak and Banjarmasin (in Borneo),
Makassar and Menado (in Celebes), and Jayapura (in
Papua)
3
How is the Local Economic Environment?
• Banking industry and real sector are open to international
players
• Capital Market, Insurance and Pension Fund industries are
open to international players and supervised by the Ministry of
Finance (of the Government)
• There are about 50 life insurance companies (with penetration
to only about 5% of the population) and 150 general insurance
companies in the local insurance market
• Actuaries work in life insurance companies (mostly), pension
and employee benefit consulting companies (increasingly),
reinsurance companies, the Ministry of Finance, and
universities (on part-time basis)
• Demand for actuaries can be expected to increase in the future
especially in the general insurance industry, pension and
employee benefit consulting industry, and social security area
4
The Society of Actuaries of Indonesia
>> Organization
• Professional body for actuaries in Indonesia, founded in 1964
• Indonesian name is “Persatuan Aktuaris Indonesia”
• Full member of the International Actuarial Association (IAA),
with education system improvement (underway) as condition
• Board members are elected through Member General Meeting
for a three-year term of office (term of current Board is from
2005 to 2008)
• Current Board consists of President, Vice President (also
serves as General Secretary), Treasurer, and six Working
Commissions on areas of Code of Ethics, Standard of
Practice, Curriculum and Examination, Continuing Education,
Insurance, and Employee Benefits
5
The Society of Actuaries of Indonesia
>> Membership
• The Society of Actuaries of Indonesia has now 324 members
(134 Fellows and 190 Associates) – compared to only 33 in
1990
• Its membership growth can be described as follows:
Year 1990:
24 FSAIs,
9 ASAIs,
33 members
Year 1993:
33 FSAIs,
16 ASAIs,
49 members
Year 1996:
53 FSAIs,
28 ASAIs,
81 members
Year 2000:
96 FSAIs, 133 ASAIs, 229 members
Year 2003: 118 FSAIs, 183 ASAIs, 301 members
Year 2006: 134 FSAIs, 190 ASAIs, 324 members
6
The Society of Actuaries of Indonesia
>> Role of Organization
• Represents and regulates its members for the benefit of the
profession and in the public interest
• Regulates standards of practice, and codes covering conduct,
ethics and technical matters
• Runs own curriculum and examinations for new entrants
• Conduct seminars and workshops for member continuing
education and professional development
• Create and maintain cooperative relationship with
Government, business community, and other professions
7
The Society of Actuaries of Indonesia
>> What do the Actuaries do?
• Financial institutions: life, health, and general insurances,
pension funds
• Public programs, including long-term health services
• Deposit insurance and guarantee fund
• Financial reporting and other statutory requirements
• Prudential requirements
• Market conduct
• Regulation and supervision
• Public policy
8
The Society of Actuaries of Indonesia
>> Where do the Actuaries work?
• About 85% of practicing actuaries are concentrated in life (and
health) insurance companies
• Remaining majority work mostly in pension and employee
benefit consulting firms
• Around nine work for pension and insurance directorates of the
Ministry of Finance (of the Government)
• Around ten work in the fields of reinsurance, general insurance
and other financial sectors combined
• No full time actuary is on the staff of any university
9
The Society of Actuaries of Indonesia
>> What are Major Roles of the Actuaries?
• Major roles of pension (and employee benefit) actuaries are to
perform statutory valuations, plan design, plan documentation,
conversion and liquidation, training, and expense calculations
for accounting purpose
 Demand for role of actuaries is growing, in particular on
expense calculations for accounting valuation
• Major roles of life (and health) insurance actuaries are to
monitor financial condition and solvency of companies and to
advice to their boards, in particular
 Identify and monitor any risks run by the company which
may impact company’s ability to meet its liabilities to
policyholders
 Design and price products, and sign and certify statutory
liabilities
10
The Society of Actuaries of Indonesia
>> Challenges Ahead
• Creating better education system for new entrants and better
continuing education and professional development system for
existing members
• Meeting market demand
• More involvement in the traditional fields
• Competing with other professionals in non traditional fields
• Acquiring tools and methodologies to meet improvements in
technology and social economic condition
• Maintaining highest quality of work and professional ethics
• Gaining recognition, internally and externally
11
Thank You
12