How Nigerians can qualify as actuaries

An actuary is a professional with advanced mathematical skills, who deals with the measurement and management of risk and uncertainty. These risks can affect both sides of the balance sheet and require asset management, liability management, and valuation skills. Professionals trained in this discipline are actuaries, according to Wikipedia.

In many countries, actuaries must demonstrate their competence by passing a series of rigorous professional examinations focused in fields such as probability and predictive analysis.

Becoming a fully credentialed actuary requires passing a rigorous series of professional examinations, usually taking several years.

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In some countries, such as Denmark, most study takes place in a university setting. In others, such as the US, most study takes place during employment through a series of examinations. In the UK, and countries based on its process, there is a hybrid university-exam structure.

Nigeria for now do not have the capacity to qualify actuaries by examinations, but have criteria of admitting members into the society. The qualified actuaries in Nigeria got their qualifications abroad, but came together under the umbrella of Nigerian Actuarial Society (NAS).

NAS is the premier Nigerian actuarial professional body comprised of actuaries and students practicing in the Federal Republic of Nigeria and its neighbouring countries. Established in December 1986, NAS has been committed to serving the Nigerian community of persons with an interest in pursuing or practicing actuarial science.

The society’s membership is comprised of five classes including Student Member, Analyst, Associate, Fellow and Honorary.

A person may be admitted as a student member if he/she has interest in pursuing a professional career in actuarial science, while another person may be admitted as analyst member if he/she has at least four examination credits within the professional actuarial course programme of an approved/recognized international actuarial professional body. A person who has obtained the CAA global certificate may also be admitted as an analyst of the society.

In the case of associate, a person may be admitted as an associate of the Society if the person has been awarded associate status by a recognized international actuarial professional body.

To be admitted as a Fellow, an individual must hold fellow status from a recognized international actuarial body. For honorary membership, a person may be inducted based on a majority vote by the council, recognizing significant contributions to the growth of the actuarial profession in Nigeria, even if they do not qualify for associate or fellow status.

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“However, with recent developments in financial reporting, particularly implementation of IFRS 17, increasing financial size of Nigerian companies, Annuity regulation in insurance industry, among other factors, there has been an increased demand for actuaries.

The National Insurance Commission (NAICOM) in 2019 announced plans to raise actuarial analysts for the industry in the next five years.

The actuarial analysts, according to the commission, would help to enhance the growth of the insurance sector.

According to the Commission, NAICOM and the College of Insurance has offered to sponsor and prepare insurance professionals who are interested in writing an international examination on Actuarial Management.

It said that the initiative was aimed at developing necessary professional skills set and talents to drive the insurance sector, noting that all expenses of the course and examination would be fully funded by the commission and offered at no cost to the selected participants.

“Part of our plans is that within the next five years, we want to produce at least 100 Certified Actuarial Analyst and we will take responsibility for the commitment, according to NAICOM.

Being a rigorous examination process to scale through, support is usually available to people progressing through the exams. Often, employers provide paid on-the-job study time and paid attendance at seminars designed for the exams.