PAI-ADB Project - International Actuarial Association · PERSATUAN AKTUARIS INDONESIA THE SOCIETY...

PERSATUAN AKTUARIS INDONESIATHE SOCIETY OF ACTUARIES OF INDONESIA

PAI-ADB Project: A Route to Development of Actuarial

Profession in Indonesia

By Iene Muliati, FSAIVice President II

Society of Actuaries of Indonesia

IAA Fund MeetingSeptember 6-7, 2007Bangkok, Thailand

2PERSATUAN AKTUARIS INDONESIATHE SOCIETY OF ACTUARIES OF INDONESIA

Society of Actuaries of IndonesiaPersatuan Aktuaris Indonesia (PAI)

Founded in 1964

Full member of the International Actuarial Association

Board of Governors:PresidentVice President & Secretary GeneralVice President IITreasurerSecretarySix Working Commissions on areas of Code of Ethics, Standard of Practice, Curriculum and Examination, Continuing Professional Development, Insurance, and Employee Benefits


Roles of PAI

Represents and regulates its members for the benefit of the profession and in the public interest

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, other professions and related stakeholders


PAI Vision & Mission

Our Vision

“To make PAI as an Internationally-recognized Professional Organization”

Our Mission

“To Make PAI as a Professional Organization that will continue to improve its quality, capability and

professionalism of its all members through continuous training programs and through an

Internationally-recognized examination”


PAI Objectives

Support the development of actuarial science in Indonesia

Improve the Members’ understanding of actuarial science

Promote and maintain the application of high standard of competency and the application of the Actuary (Actuarial) Code of Ethics in the profession of Actuaries with full awareness and responsibilities among the Members

Encourage and maintain good relationship among the Members of the Organization

Support the development of the industry of insurance, pension fund, and other types of financial industry in Indonesia.


How to be an Actuary?

Pass first 5-exams for Associate (ASAI) level

Pass next 5-exams for Fellowship (FSAI) level

Professional Seminar


Profile of Actuary*

020406080

100120140160180200

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2006

Year

Cou

nt FellowAssociate

The profession growth is relatively small !* Source: PAI database


Where do the Actuaries work?*

3.5%

6.1%

13.5%

1.3%

0.3%

17.4%

57.7%Life InsuranceNon-Life InsuranceGovernment EntityActuarial ConsultingPension FundUniversityOthers

* Source: PAI database


Challenges

Open MarketTighten competitionCompete with international actuary with broader experience and expertise

Lack of expertise and experience in other areas than life insurance and pension

Country 2001 2003 2006People's Rep. of China 26 29 19India 42 50 29Malaysia 28 21 23Philippines 39 49 49Indonesia 46 57 60Number of countries/regions ranked 49 59 61

World competitiveness rankings

Source: World Competitiveness Yearbook, 2006, published by IMD, Switzerland.


Challenges

Unknown professionLow awareness of the public of the roles of actuariesLow appreciation toward the profession

Limited Network Capital

Lack of involvement from the individual actuary to the profession / industry / regulatory body


Strategic Plans

Increase quality of work and professionalismStandard PracticeCode of Ethic and ProfessionalismBusiness Planning & Strategy

Increase knowledge and skillsCPD rulesSeminar / Workshop


Strategic Plans

Brand ImagePromote the profession

Increase PAI InvolvementActive working committeesNetwork / Relationship CapitalStrategic Alliances with other professional organizations and universities

Individual Contribution


PAI First Move

Lobbied MoF and ADB to support the development of actuarial profession in Indonesia

Received Technical Assistance from ADB in November 2006

Received funding from ADBProject started in November 2006 and completed in May 2007


PAI-ADB Project

Objective Assist PAI to become an Internationally-recognized

Professional Organization and to bring the Indonesian actuarial profession in line with

international standards.

FocusImprovement in human capital quality and

professional standards of PAI through continuous training programs and through an Internationally-

recognized examination.


PAI-ADB Project

Area of development Education and curriculumContinuing professional development (CPD) systemStandard of practices, Code of ethics, and professionalismKnowledge management / Library System Enhancement

International and domestic experts involvement in the project implementation stages.

to assist PAI on developing best practices and guidelines


Project Activities

Project ManagementTOR preparationsExpert Identifications & AppointmentsActivities

Non workshop projectsWorkshop projects

Financial ManagementProject Cost & Benefit AnalysisActivity Cost Tracking


Non-Workshop Projects

Curriculum and Examination System Revision and Development Continuing Professional Development (CPD) System DevelopmentStandard Practices System Review and Development on PensionCode of Ethics System Review (CE, Disciplinary Aspect, and Professionalism Aspect) Knowledge Management / Library System Enhancement


Workshop Projects

Employee Benefit Accounting and Valuation Standards Social Security Issues Insurance Reporting Risk Based Management and Asset Liability Management on PensionRisk Based Management and Asset Liability Management on InsuranceRole of Actuaries in Non-life Insurance


Follow Up Actions

Provide continuous information and/or training/workshop through new CPD system scheduled to be fully implemented in 2007

Build more effective communication with its members concerning new regulations or issues affecting its members

Ensure professionalism by effectively implementing professional conduct and ethics and disciplinary procedure


Follow Up Actions

Establish networks and alliances with other professional organizations, universities, and also related government bodies.

Take active part in all actuarial related issues in the country,

support and involve in the development and implementation of non-life insurance, employee benefits and social security system.

Encourage members’ involvement in domestic/ international events


Thank YouThank You

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