What Does a Pensions Actuary Do?

Actuaries are professionals who use actuarial methods and techniques to solve economic problems, and are experts in assessing the future financial risks of economic activities. The traditional field of actuaries is the insurance industry. In this industry, actuaries are mainly engaged in important work such as product development, liability reserve calculation, and dynamic solvency testing. On the basis. With the development and application of actuarial science, the field of actuarial work has gradually expanded to the fields of social insurance, investment, social security, population analysis, economic forecasting, and financial supervision. With the rapid development of the insurance industry, social welfare industry and consulting industry in various countries around the world, actuaries have become a hot and attractive profession in various countries around the world.

Chinese actuary

In 2011, China's actuaries performed a comprehensive reform. There are 8 required courses for prospective actuaries and 10 optional courses for positive actuaries. Candidates must

Application requirements for Chinese actuary qualification in spring 2013

(1) Conditions to be met when applying for the qualification of quasi-actuary:

1. Bachelor degree or above (nationally recognized equivalent education) or above;

2. Pass all examinations of A1-A8.

(2) Conditions to be met when applying for actuary qualification:

1.Have the qualification of Chinese quasi-actuary;

2. Meet one of the following requirements:

(1) Life insurance direction: Pass F1L, F2L, F3, and F8 subjects, and pass at least one of the three subjects F4, F9, and F10.

(2) Non-life insurance direction: Pass F1G, F6, F7, and F8 subjects, and pass at least 1 subject among 4 subjects: F2G, F5, F9, and F10.

(3) Special note: obtained before December 31, 2010 (including December 31)

Candidates who are qualified to act as an actuary in China can apply for actuary qualification as follows:

Life insurance direction: Pass F1L, F2L, and F3 subjects, and pass at least 2 subjects in 4 subjects: F4, F8, F9, and F10.

Non-life insurance direction: Pass F1G, F6, and F7 subjects, and pass at least 2 subjects in 5 subjects: F2G, F5, F8, F9, and F10.

3. Have three years of actuarial related work experience. ^[1]

Mr. Fu Jingbo, a senior overseas study consultant, said that actuaries are currently the scarcest talents in China, and major insurance companies are rushing to have actuaries with professional qualifications. The attraction is the high salary and high social status . However, because learning actuarial science requires a high level of mathematics and related professional knowledge, the difficulty is also daunting for many people. Although China has dozens of actuaries, according to British standards, China has only two actuaries, and according to the American Institute of Actuaries, there is no one qualified actuary in China. Once an actuary can get international certification, its treatment and status will be greatly improved, and the advantages are self-evident.

The annual salary of local actuaries in China is between 300,000 and 400,000 yuan. The value of returnees or foreign actuaries is generally above one million yuan or even higher. Internationally well-known actuaries exams for the Actuarial Society of Britain (The Faculty of Actuaries), the Actuarial Society of North America (Life Insurance) and the American Society of Non-Life Actuaries The actuarial exam may be one of the most difficult exams in the world. Naturally, for those actuaries, their income and social status are also very high. In recent years, the United States' Best Professional Survey has found that actuaries are consistently in the top three rankings. Opportunities for transformation: With the knowledge and professionalism of actuaries, the fields of the future are not limited to the insurance industry. Investment, financial supervision, social security, population analysis, economic forecasting, welfare lottery and other fields have actuaries. ^[2]

Insurance law and related regulations

Exam time: 4 hours

Exam format: multiple choice, subjective questions

Exam requirements:

The content of the examination for the subject is based on the current Insurance Law and is related to the operation of insurance companies.

Knowledge of tax law, company law, and administrative regulations issued by insurance regulatory agencies. By

The study of the Insurance Law and related laws and regulations requires mastering the basic theory of insurance law and relevant legal knowledge.

Examination Content:

Given that the advanced course F1 covers both the property and life insurance aspects, the exam content will be divided into the Ministry of Public Affairs

Scores (70%) and candidates' choice (30%).

A. Insurance Law (approximately 70% of points)

First, the public part.

The public part includes general content of insurance law, insurance contract law and insurance supervision law. (Bid in parentheses

(The identified chapters are the corresponding chapters of the specified textbook.)

1. The concept, characteristics and classification of insurance (Chapter 1);

2. The concept, adjustment object and status of insurance law; the basic principles of China's insurance law; China's insurance law

Role and effectiveness (chapter 2);

3. Concepts and characteristics of insurance contracts; types of insurance contracts (Chapter 3);

4. Basic principles of insurance contract law (Chapter 4);

5. Conclusion and effect of insurance contract (Chapter 5);

6. The legal status of the subjects and related parties of the insurance contract and the rights and obligations enjoyed and assumed (Article 6

chapter);

7. The content of the insurance contract (Chapter 7);

8. Performance of insurance contracts; changes, transfers and termination of rights and obligations of insurance contracts (Article 8,

Chapter 9);

9. Relevant theories of insurance supervision, such as the connotation of insurance supervision; the need for supervision of the insurance industry;

Subjects, methods, and regulatory means and measures of insurance supervision; the objectives and insurance supervision of insurance supervision in China

Management principles (chapter 10);

10. Formal conditions and procedures for the establishment of insurance companies; changes and terminations of insurance companies (Chapter 11);

11. Supervision of insurance intermediaries, mainly including the legal status and establishment of supervision of insurance agents; insurance

Code of conduct for agents and legal responsibilities; supervision of insurance brokers, insurance brokers

Norms of conduct and legal responsibilities; establishment of insurance assessors, norms of conduct and legal responsibilities, etc. (section

Chapter 12);

12. Supervision of insurance business activities and management activities, mainly including insurance company operating rules and insurance

Legal liability for companies violating insurance operating rules; supervision of insurance terms and rates; insurance

Supervision of the use of company funds; rectification and takeover of insurance companies; market exit for insurance companies

Regulation, etc. (Chapter 13).

Second, the optional part (candidates choose one of birth and life)

Candidates are required to master the characteristics of the life insurance contract based on the public part.

It is stipulated that property insurance candidates should mainly grasp the special provisions of property insurance contracts, and the content of the examination will highlight the

Different requirements and characteristics of life insurance. The standard is China's "Insurance Law" on personal insurance contracts and property insurance contracts.

Distinguished from the content of the two sections,

B. Relevant laws (about 30% of points)

Relevant laws no longer distinguish between public and optional parts, but candidates for property insurance exams do not have to focus on marriage

Marriage law, inheritance law.

1. General rules of civil law and contract law (proportion of score is about 10%)

2. Company law, marriage law, inheritance law, etc. (proportion of score is about 10%)

3 Business tax law, corporate income tax law and personal income tax law (fraction ratio is about 10%, see attached

record)

Examination-specific teaching materials and materials:

China Actuary Qualification Examination Book "Insurance Law and Related Regulations", edited by Xu Chongmiao, and reviewed by Wei Yingning,

China Finance and Economics Press, 2010.

1. The Insurance Law of the People's Republic of China

2. General Principles of the Civil Law of the People's Republic of China

3 Contract Law of the People's Republic of China

4 The Company Law of the People's Republic of China

5. "Marriage Law of People's Republic of China"

6. "Inheritance Law of the People's Republic of China"

7. "Personal Income Tax Law of the People's Republic of China"

8. Law of the People's Republic of China on Enterprise Income Tax (The Tenth National People's Representative on March 16, 2007

(Adopted at the fifth meeting of the General Assembly)

9. Interim Regulations of the People's Republic of China on Business Tax (December 13, 1993

Decree No. 136 of the State Council issued on November 5, 2008

Ever)

10 "Administrative Provisions on the Solvency of Insurance Companies" (CIRC Order [2008 No. 1])

11. "Administrative Measures for Insurance Protection Funds" (CIRC Order [2008] No. 2)

12. Regulations on the Administration of Insurance Companies (China Insurance Regulatory Commission Order No. 2009 No. 1

13. Regulations on the Supervision of Insurance Professional Agencies (Decree of the China Insurance Regulatory Commission, 2009

number)

14. Regulations on the Supervision of Insurance Brokerage Institutions (Order of the China Insurance Regulatory Commission, 2009 No. 6)

15. Regulations on the Supervision of Insurance Valuation Institutions (Order of the China Insurance Regulatory Commission, 2009 No. 7)

16. "Interim Measures for the Management and Administration of Insurance Funds" (Order of the China Insurance Regulatory Commission, No. 9 of 2010

number)

17. "Interim Measures for the Investment of Real Estate with Insurance Funds" (Bao Jian Fa [2010] No. 80)

Financial management of insurance companies

Exam time: 4 hours

Exam format: multiple choice questions (10%), subjective questions (90%)

Exam requirements:

This course includes five aspects of financial management overview, accounting, analysis, management, and practice.

After studying this course, candidates should master the systematic theory of financial management and understand the financial performance of insurance companies.

Basic content and principles of business management, master the relevant content of new Chinese accounting standards, and be able to use financial

Management methods make evaluations and recommendations on the financial status of insurance companies. At the same time,

Camp management provides constructive financial strategic planning and decision-making.

In the management of insurance company assets and liabilities management, capital investment management, surplus and its management, financial reporting analysis

On the basis of analysis, based on understanding the solvency management, value management, and strategic planning of insurance companies,

Enough to establish a systematic financial control and management model, to achieve effective capital management, and to comprehensively use finance,

Actuarial evaluation method supports comprehensive budget and performance management.

Examination Content:

The content of the exam is divided into the public part, the direction of life insurance companies and the direction of non-life insurance companies. Common part score

The ratio is 70%; the score of the elective part is 30%.

Students can choose one of them.

Public section (70 points):

A. Overview of Financial Management of Insurance Companies

o Understand the particularities and goals of insurance company financial management

o Understand the content and environment of financial management of insurance companies

o Understand the governance structure of insurance companies and the basic principles of financial management organization

o Understand the role of actuaries in the financial management of insurance companies

B. Overview of the basic principles of financial accounting and reporting systems for insurance companies

Master the basic principles of financial accounting for insurance companies

Understand the contents of the insurance company's balance sheet, income statement, cash flow statement

Understand the contents of Accounting Standards for Business Enterprises No. 30-Presentation of Financial Statements

Understanding the consolidation of financial statements of insurance companies

C. Overview of enterprise accounting standards and operational practices

Understand the general development process of Chinese accounting standards and the main features of the new accounting standards

Master the requirements of new enterprise accounting standards for the recognition and measurement of financial instruments

Master the requirements of the new enterprise accounting standards on the original insurance contract

Master the requirements of new business accounting standards for reinsurance contracts

D. Business Accounting Standards Interpretation No. 2 Implementation Practices

Candidates who are not in the direction of life insurance do not need to master the examples of life insurance products in the book)

Understand Accounting Standards Interpretation No. 2 and its content related to insurance companies

Master the execution principle of premium income split

Master the principle of financial report reserve / liability measurement

Can not use the content in the book to analyze and solve practical problems in insurance companies

E. Financial reports and analysis of insurance companies

Comparative analysis of financial reports of listed insurance companies

Investment business

Summary of Annual Reports of 4 Listed Companies in 2008

A comparative analysis of the financial report of the insurance company's investment business using the contents of the book

Understand the annual reports of listed insurance companies

F. Profits and management of insurance companies

Analyze the profit and sources of insurance companies

Understand the factors affecting the profitability of insurance companies and their impact on companies

G. Value Management of Insurance Companies

Understand the concept of insurance company value and the source of value;

Understand the background, definition and calculation steps of embedded value reports

Master the content, use and method of EV report

Understanding European CFO Forum's standard operating methods for EVs

Master the composition and calculation of economic value assessment

Ability to apply the content and knowledge points in the book to solve and analyze the evaluation of embedded value and economic value

Practical issues

Master the value management and valuation methods of insurance companies

H. Insurance Fund Investment and Management

Understand the principle and management of insurance fund investment

Understand the organizational structure of insurance fund investment

Master the main asset types and management methods of insurance fund investment

Understand the theory of strategic allocation of insurance funds, understand the allocation steps and processes

Understand the basic connotation and model of insurance asset entrustment management

Master the performance evaluation method of insurance fund management

I. Asset Liability Management of Insurance Companies

Understand the background and basic principles of asset liability management

Master the main content and modeling techniques of asset-liability models

Master asset-liability matching management and ALM reporting

Able to apply the knowledge points in this chapter to solve and analyze practical problems

J. Solvency and supervision of insurance companies

Understand minimum solvency requirements, risks faced by insurance companies and solvency versus distributable profits

Impact

Master the management measures for solvency

Master international comparative analysis of solvency management

Master China's Solvency Management Supervision System and Practice

Understanding the latest developments in solvency regulation

Can apply the content of this book to analyze and solve solvency and regulatory practical issues

K. Capital and earnings management of insurance companies

Understand the background, purpose, content, etc. of insurance company capital management

Master capital needs assessment of insurance companies

Understand internal and external sources of insurance company capital

Understanding the role of financial reinsurance in capital management of insurance companies

Master the factors that determine the dividend policy and the company's dividend policy

L. Strategic planning for insurance companies

Understand the relationship between insurance companies' medium and long-term plans and corporate strategy

Master the preparation steps and content of medium and long-term plans for insurance companies

Master the feasibility analysis of medium and long-term plans for insurance companies

Can apply the contents of this book to analyze and solve practical problems in the preparation of medium and long-term business plans

M. Comprehensive budget and performance management for insurance companies

Understand the concept, content and preparation method of comprehensive budget management for insurance companies

Master performance management of insurance companies

Appendix: Cases of Business Plan Preparation by Insurance Companies

Life insurance direction (30 points):

E. Financial reports and analysis of insurance companies

Practice of financial statement project of life insurance company

Comparative analysis of financial reports of listed insurance companies

Insurance Business: Financial Data Analysis of Life Insurance (China Life, Ping An of China and CPIC)

· Master the financial statement items and financial analysis indicators of life insurance companies

Source analysis

· Can use the contents of the book to compare and analyze the financial reports of insurance companies' life insurance business

F. Profits and management of insurance companies

An overview of insurance company profits and their sources

Profits of insurance companies and their sources: (2) analysis of profit sources of life insurance business

Insurance company expense management (life insurance related)

Case Study of Insurance Company Profits: Life Insurance Business

Can not analyze the profit and source of life insurance companies

Understand the various expenses of life insurance companies and master the method of cost sharing

Can not use the knowledge in the book to analyze the profit of life insurance companies

M. Comprehensive budget and performance management for insurance companies

Performance management of insurance companies:

Setting of Key Performance Indicators (KPIs) for Insurance Companies --- Value Trees for Life Insurance Companies

KPI design case of insurance company --- KPI design example of life insurance company

Able to design KPIs for performance management based on the value tree of life insurance companies

Non-life insurance direction (30 points):

E. Financial reports and analysis of insurance companies

Financial statement project of property insurance company

Comparative analysis of financial reports of listed insurance companies

Insurance business: (2) Financial data analysis of property insurance (PICC, CPIC and Ping An of China)

Master the financial statement items and financial analysis indicators of property insurance companies, and be able to make profit

analysis

Comparative analysis of the financial reports of the insurance company's property insurance business using the content in the book

F. Profits and management of insurance companies

An overview of insurance company profits and their sources

Profits of insurance companies and their sources: (3) analysis of profit sources of property insurance business

Insurance company expense management (non-life insurance related)

Insurance Company Profit Case Study: Property Insurance Business

Value management and valuation of insurance companies:

Overview of Property Insurance Company Valuation

Example of a property insurance company valuation

Can not analyze the profit and source of property insurance companies

Understand the various expenses of property insurance companies and master the method of cost sharing

Can not use the knowledge in the book to analyze the profit of property insurance companies

M. Comprehensive budget and performance management for insurance companies

Performance management of insurance companies

Setting of Key Performance Indicators (KPIs) for Insurance Companies --- Property Insurance Company Value Tree

KPI design case of insurance company --- KPI design example of property insurance company: can be based on the value of property insurance company

Tree design KPIs for performance management

Examination designated materials:

China Actuary Qualification Examination Book "Financial Management of Insurance Companies"

Economic Press. 2010

Recommended reference materials (reference use by candidates, non-examination textbooks, no questions):

Candidates in the public section can refer to:

China Insurance Regulatory Commission [2010] No. 7 on Printing and Distributing the "Reporting Rules for the Solvency Report of Insurance Companies-Questions and Answers

No. 9: Notice on the Linkage of the Compilation Rules for Solvency Reporting and the Interpretation of Accounting Standards for Business Enterprises No. 2

Insurance Regulatory Commission Letter [2009] No. 333 on Soliciting Guidance on Implementation of Major Insurance Risk Tests (Consultation Opinions

Manuscript)

Bao Jian Fa [2009] No. 121, Notice on Printing and Distributing the Compilation Rules of the Actuarial Report

China Insurance Regulatory Commission [2009] No. 21 on the revision of the "Actuarial Report-Dividend Insurance Business Report"

know

Bao Jian Fa [2008] No. 89, Notice on the Implementation of the "Regulations on the Management of Solvency of Insurance Companies"

Bao Jian Fa [2006] No. 90, Notice on Printing and Distributing the "Guidelines for the Cost Allocation of Insurance Companies"

Candidates for life insurance can refer to:

Edited by Wei Yingning, "Theory and Practice of Embedded Value in Life Insurance Companies", Economic Management Press, 2005

Ge Chen, "Research on Economic Capital of Life Insurance Companies", China Commercial Press, 2009

Bao Jian Fa [2005] No. 83, Notice on Printing and Distributing the "Guidelines for the Preparation of the Embedded Value Report of Life Insurance"

For non-life insurance candidates, please refer to:

Wu Xiaohui, "Research on Solvency Management of Chinese Non-life Insurance Companies", Southwestern University of Finance and Economics Press, 2010.