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Global crisis ups actuary demand

Feb 15 2010 12:54

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Johannesburg - Actuaries are in high demand following the global financial crisis, the Actuarial Society of SA said on Monday.

"The global credit crisis has resulted in high demand for professionals qualified in risk assessment and management.

"Increasingly actuaries are required to lead the risk strategies of organisations instead of restricting themselves to the traditional field of product design," the society's president Peter Doyle said.

He said the global financial crisis had opened a whole new career path for actuaries.

"Where previously organisations were generally happy to appoint as head of risk management anyone available and willing, leaders now have to apply their mind as to who is best suited to take charge of the company's risk management portfolio," Doyle said.

He said companies were increasingly turning to actuaries to fulfil this role since they were already skilled at identifying and mitigating risks.

Doyle said the evolution of the actuarial profession had placed an added responsibility on actuarial societies around the world to assist actuaries in improving their skills.

"As a result the society late last year joined 14 actuarial societies from other countries in adopting a tough new credential for actuaries - the Chartered Enterprise Risk Actuary (Cera) designation."

Doyle said the global financial crisis exposed the practice of excessive risk taking by those who were trusted by shareholders and consumers as the guardians of their savings and investments.

"This has led to a global review of regulatory frameworks for financial services institutions.

"While the South African financial services industry did not suffer a single casualty to the global crisis we are a global player and have therefore not escaped the wide reaching changes that are being implemented to prevent a recurrence of the carnage that shook the world late in 2008 and early last year."

In addition to dealing with the fallout from the global financial crisis, South Africa was also embracing dramatic changes such as retirement and social security reform and healthcare reform.

Doyle said all these initiatives involved the actuarial profession since the society was required to provide experts to contribute to the development of these reforms and to develop pro-active thinking on these changes.

"It is therefore imperative that the society assists in developing local actuaries with an in-depth knowledge of local conditions."

Doyle said this had been made easier by the launch late last year of South Africa's own professional actuarial qualification.

Previously South Africans had to turn to foreign countries to qualify as actuaries, with the majority qualifying via the UK system.

Doyle said critical for the society was the development of black actuaries.

"We have commissioned research into obstacles that black South African face in qualifying as actuaries.

"In addition we also support several mentorship programmes with the aim of helping black students at varsity level succeed in their endeavour to become qualified actuaries."

- Sapa

 
 
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