The nation’s insurance industry is getting bigger with different aspects of the market requiring special skills and knowledge for growth and sustainability.
One skill that more than ever before has become highly needed is actuarial skills, particularly with the need to do proper pricing of risks, and effective risks management.
Importantly, and most demanding at the moment in insurance industry is the growing size of annuity business following increasing growth in pension funds under management currently standing at about N10 trillion, to which large chunk of it is expected will empty itself in insurance.
According to Sunday Thomas, acting commissioner for Insurance/CEO, National Insurance Commission (NAICOM), the growing size of annuity as well as other aspect of the business had demanded the need for more actuaries in our industry.
According to him, and more are whey the Commission is driving a new initiative to increase the number of actuarial analysts in the industry.
Thomas said this informed the decision to grow about 100 actuarial analysts in the next five years, who will help to enhance the growth of the insurance sector.
Thomas, who disclosed this in Lagos at the Actuarial Development Sensitization Workshop organised by the Commission in partnership with College of Insurance and Financial Management (CIFM), stated that the initiative is aimed at developing necessary professional skills set and talents to drive the insurance sector.
He said 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.
He said this is one of the market development initiatives to grow the insurance industry, stating that as a regulator human capital development was critical for its success and effective supervision of the industry.
“Part of the development is the human capital development, as the growing potential of the industry is built on the capacity to have the required capital that will drive it forward.
“The issue of measuring and taking necessary step for effective pricing has made the Actuarial profession to be more pertinent than ever before .
“There is need to develop young professionals and give them a future in the insurance industry and we are determined to develop their potentials and make them relevant to the sector, “he posited.
According to him, only a couple of the Insurance companies have an in-house Actuaries and this is why the commission has intervened to stem the tide ,
Thomas said Actuaries are also needed to manage the Annuity business which was becoming quite significance and almost accounting for 35 to 40 per cent of the life portfolio.
He urged the potential beneficiaries to be committed to the programme to succeed, as the commission would only give candidates the opportunity to those who show commitment and decication.
“This programme requires sharp, determined, qualitative minded and serious individuals, so think critically about it before opting for it.
“We are ready to give you all the necessary support and will persuade the Chief Executive Officers of the Insurance companies to give the candidates adequate time to study, ” he said.
Thomas also noted that the NAICOM Academy would kick-off operations within the year in Abuja to train and empower its in-house staff, said there were all the efforts to build human capital for the industry.
He said the academy would be the first of its kind for regulators in West Africa and would be structured to acquire and share more knowledge to promote the industry.
Tope Smart, chairman of Nigerian Insurers Association (NIA) in his remark said there is no way the industry can do business of insurance very well without actuaries because of their role in proper pricing and risk management.
He noted that this is a big market development initiative, thanking the acting commissioner for Insurance and the NNAICOM management for driving and sponsoring the programme.
Pius Agboola, director, Policy and Regulation, NAICOM described Actuarial Analyst as a noble, enviable and rewarding profession while urging the potential candidates to put in their best and take advantage of the opportunity offered by the Commission.
Yeside Oyetayo, rector CIFM lauded NAICOM for offering full scholarship for the programme as a way of giving back to the industry.
Oyetayo said the processes for the programme commences immediately and the college would be developing an Actuarial development policy in collaboration with the Nigeria Actuarial Society (NAS) to train the candidates home-based.
She said among other roles, the college would conduct an assessment of candidates for the sponsorship, register selected candidates, offer free registration for CAA examination twice a year.
“We will also offer two weeks intensive tutorial and mock examination before the actual examination and arrange for a compulsory 160 hours study leave for candidates with their employers,” she noted.
The Rector maintained that the prerequisite for admission into the programme includes that a candidates must be citizens of Nigeria with a valid identity card and must possess an analytic skills.
She said the beneficiaries must also be engaged in the industry , either as an underwriter, loss adjusters or academia ,among others .
Tola Fakoya, head actuaries with Axa Mansand Insurance Plc, listed the function of the Actuaries to include: Risk Assessment, Product development, Product pricing , Liability Valuation, Asset Liability Matching, Experience Analysis.
Other functions according to Fakoya listed are Profitability Assessment, Solvency, Financial Reporting, Reinsurance optimisation, Capital adequacy and Expenses analysis.
