Whither the with-profits actuary?
A recent survey by GAAPS Actuarial has indicated an increasing trend among life companies to outsource their with-profits actuary (WPA) function. Carried out over six months, the survey found that as many as 42% of WPA functions were now being outsourced to external providers.
GAAPS managing director Dr Geraldine Kaye commented: “One reason for this drive to outsourcing might well be the terms of reference governing the responsibilities and conduct of a WPA, which are increasingly complex and burdensome.”
Serving as a WPA also bars the employee from serving on the board of directors. The complex compliance and independence issues mean that the function is often best handled by experts. “This opens up two distinct opportunities from a career point of view,” Dr Kaye said. “There is now the opportunity of working for consulting firms, which are increasingly being appointed to undertake the role of WPA.
“On the other hand, for those more interested in pursuing a managerial role, the traditional life offices might offer a more defined career path.”
