CIA (e)Bulletin/(e)Bulletin de l'ICA
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December 2018
 
 

Strengthening Ties with Indonesia

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By Bonnie Robinson

On November 20, President John Dark, Immediate Past President Sharon Giffen, Actuarial Standards Board (ASB) Vice-chair Josephine Marks, and directors from the CIA Head Office met with delegates from Indonesia to discuss the status and future of the actuarial profession.

Representatives from the Indonesian Financial Services Authority, the Ministry of Finance of the Republic of Indonesia, the country’s actuarial society, Persatuan Aktuaris Indonesia (PAI), and the University of Waterloo, made up the visiting delegation. Their key objectives for the visit were the following:

  • A deeper understanding of the role and contribution of actuaries to the integrity of the financial sector;
  • Enhanced understanding of the means to ensure the quality of actuarial education and continuing professional development; and
  • Discussion of best practices for governance of the profession by acquiring a better understanding of the processes in place in Canada and in the global context.

Developing the Actuarial Profession in Indonesia

A member of the G-20, Indonesia is the largest economy in Southeast Asia. To sustain its economic growth, Indonesia needs to develop ever more sophisticated and durable insurance, financial, and complementary infrastructure; a task that requires a robust, home-grown actuarial community. As detailed in a September 2017 (e)Bulletin article, Actuaries on the World Stage: Indonesia, building and sustaining the actuarial profession in emerging economies is a significant challenge.

READI Project

Bill Duggan, field director with the READI Project (Risk Management, Economic Sustainability and Actuarial Science Development in Indonesia), provided an overview of the project.   

Launched in 2015, READI is a cooperative effort among the University of Waterloo, Global Affairs Canada, and organizations in Indonesia, including the government, with some funding from Manulife Indonesia and Sun Life Indonesia.

READI’s primary goal is to help develop Indonesia as a centre of actuarial excellence. It does this through a number of initiatives, such as increasing awareness of the actuarial profession among students in Indonesia, educational support for Indonesian actuarial students, undergraduate scholarships, and research support. It also works with industry associations like the PAI, Indonesian life and general insurance associations, and financial services associations.

The project estimates that it has reached 50,000 people, including students, teachers, and parents. They have had good success with universities, where actuarial science now has the highest ratio of applicants to seats in any discipline.

PAI Overview

Senior representatives of the PAI were part of the delegation, including the organization’s executive director, Giovani Gracianti. The PAI has 280 Fellows, mostly educated through their own exams. A member of the IAA since 2007, the PAI follows the IAA education syllabus. Ms. Gracianti explained that part of the challenge they face is managing these resources and also the issue that many of the original PAI members have lower educational levels than more recent candidates. The consulting part of the profession is very small in the country; there is not yet a large enough pool of actuaries who can fill this gap.

A Robust Discussion

Some of the topics the group discussed included how to encourage Associates to become Fellows, how to retain candidates, particularly women, in the education system, and how to promote the role of the Appointed Actuary among employers. The Indonesian delegation were particularly interested in how the CIA manages continuing professional development (CPD), and how our Actuarial Standards Board (ASB) works. They asked questions about the self-governance process for the supervision of actuaries, the contribution of actuaries to implementing the rules and standards that protect the public interest and the integrity of the financial sector, as well as the factors that have contributed to the growth and recognition of the actuarial profession in Canada.

Fostering a Strong Relationship

The CIA plans to continue working with members of the delegation to help with the ongoing development of Indonesia’s actuarial profession. Information about our University Accreditation Program, our code of conduct for candidates in the CIA education system, and how our criminal conviction/discipline processes work, are just three areas for which we will provide more detail.

This type of outreach and knowledge sharing strengthens the international actuarial profession, and has the potential to help create the infrastructure that supports financial security around the globe. 

Bonnie Robinson is the CIA’s English editor.

 

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