Actuarial Seminar with the Financial Services Authority and Andalas University | Risk Management, Economic Sustainability, and Actuarial Science Development in Indonesia

Seminar participants are listening to presentations

The Risk Management, Economic Sustainability, and Actuarial Science Development in Indonesia (READI) project, in collaboration with the Otoritas Jasa Keuangan (OJK) Financial Services Authority and the Faculty of Mathematics and Natural Sciences in Andalas University, held a seminar titled Actuary, Largest Career Opportunity in Mathematics in Padang City, West Sumatra on May 3rd, 2018. This event was attended by 90 high school students along with 60 mathematics teachers and school counselors, as well as 105 students and 47 lecturers from Padang State University, Andalas University, Bung Hatta University, and Taman Siswa University.

Asep Suwondo, Director of Statistics & Informatics for Non-Bank Financial Industry and the Financial Services Authority, explains:

In order to face the open market of the world and the ASEAN [Association of Southeast Asian Nations] Economic Community, there is a need for preparedness from the national industry, especially the Non-Bank Financial Industry (IKNB) [Institusi Keuangan Non Bank]. One of the preparations needed by the IKNB sector is the availability of skillful and ready-to-use human resources, including actuary professionals.

According to Asep Suwondo, Director of Statistics and Information Non-Bank Financial Industry - OJK, the need for actuaries in 2018 is approximately 115% of the number of actuaries available. There is high demand for people within the actuary profession in 38 Non-Bank Financial Services Institutions, including insurance companies and pension funds. To fill the need for actuaries in Indonesia the OJK launched the 1000 Actuaries Program in mid-2013 with the objective to increase the number of actuary professionals and meet the needs of the actuary profession in Indonesia.

Budi Tampubolon from the Society of Actuaries of Indonesia explained the importance of the role of actuaries in the financial, and especially in the insurance industries. Applying financial science and statistical theory, actuaries manage financial uncertainty by making educated predictions about future events, especially those relating to the management of future payout obligations. The role of an actuary is vital for an insurance company. Insurance companies use actuarial analysis to design new insurance products, determine premium levels, as well as assess financial status and/or company value (Embedded Value and Appraisal Value), and to answer technical questions from policyholders. However, Budi Tampubolon emphasized that the need for actuary professionals goes beyond insurance companies and includes other industries, such as banks, government agencies and corporations that use analytical skills in managing risk.

Participants are holding their certificates

In addition to actuarial seminars, a one-day educational seminar was held for mathematics teachers and school counselors. The aim of this seminar was to provide information about various career opportunities in the field of mathematics as well as to introduce a mathematics outreach program from the READI project. The seminar program was complemented by an exhibition titled Mathematical Village. During this exhibition, students had the opportunity to interact directly with mathematics and actuarial science students from the University of Indonesia, Gadjah Mada University, and Pelita Harapan University.

This one-day seminar received overwhelmingly positive feedback from participating students, teachers, and lecturers. The participants demonstrated their enthusiasm during the question and answer session of the seminar as well as in the interactions with their peers during the exhibition. The hope is that this seminar will not only give participants insights into actuarial science, but also foster their interest in becoming an actuary.