An Actuary is a professional who assesses the financial risk of a particular situation primarily using probability theory, financial theory, computer science and mathematical theories. Per the nature of their work, actuaries undergo a rigorous educational training process which focuses on areas including; Probability, Mathematics, data science, finance, Insurance, economics, accounting, computer science and communication. Actuaries are needed in almost all institutions in order to minimize the riskiness of their activities which might lead to financial loss. But they are in very high demand in the financial sector especially the banking and insurance industry. FYI: Actuaries are responsible for the pricing of your insurance policy.
Chartered Enterprise Risk Actuary (CERA) is the highest qualification one can attain as an actuary. As of today, August 2017, there are only 4000 CERA holders in the world due to the rigorous qualification process one has to go through.
In 2016, Times ranked actuaries as the 19th highest paying profession in the USA, with a median base salary of $115,000. Careercast.com in 2013 as well ranked the Actuarial profession as the best job in the USA with a median salary of $91,211 and a projected growth rate of 29.21%. And in the UK, the average graduate salary is £33,000 according to High fliers research. The CNN on May 23, 2012 reported Actuarial Science as one of the four college degrees with relatively 0% unemployment. These data and articles speaks volumes on the importance of the Actuary’s work.
But the same cannot be said about the profession here in Ghana. Insurance has been in Ghana for a very long period, with Enterprise being over 90 years on the Ghanaian insurance market. Today Insurance contributes about 2% of the GDP of Ghana and with the Insurance act of 2006 (Act 724), which separates life insurance companies from general business insurance, the number of industry players within the insurance industry has tripled but yet the actuarial science graduate struggles to find his way out on the job market.
Most companies like to employ the services of consultants due to the high cost in maintaining a permanent desk for the Actuary in the office. I will recommend the National Insurance Commission for their intervention on the matter by making it compulsory for insurance companies to maintain two actuarial desk in their office. But frankly speaking, it is not enough for promoting the profession.
Most countries like the USA, UK, Canada, China, South Africa (just to mention a few) have an actuarial body that is responsible for training, licensing and modulating the Actuarial profession. But here in Ghana, to be an Actuary you need to join one of these Actuarial bodies outside the country (preferable institutes are the American Society of Actuaries (SOA) and the UK Institute and Faculty of Actuaries (IFOA)) with their exorbitant subscription fees and exams fees. This does not encourage Ghanaian Actuaries to stay in the country. Hence, lack of knowledge of the profession by industry players in the country as such lack of essential data to the country. Example, as of today Ghana do not have a life table, our insurance companies and Pensions companies depend on data from South Africa and Australia for their analysis and calculations, which is unfortunate. I will charge the Actuarial Society of Ghana and the NIC to up their game.
Today there are 7 universities offering Actuarial Science degree in the country (which should tell us the demand of Actuaries in the country is increasing) with the University of Ghana and UPSA being the freshest schools to include the course in their curriculum in 2013 and 2016 respectively thereby leading to the increase in Actuarial graduates in the country. But with the lack of knowledge on the skill set an Actuarial graduate possess by corporations like the NSS, graduates are placed into areas which are not related to their field of study, hence making the graduate doubt his importance in the country. I think the various departments handling Actuarial Science needs to liaise with industry players to enable graduates secure at least National Service posting into some of these actuarial related companies in order to heighten peoples interest in the course. Corporations as well that know the role of the actuary towards the growth of their company, tend to demand for qualified Actuaries like an associate or a fellow of a recognized actuarial body, a status most graduates do not hold. Hence leaving no room for Actuarial trainees in the country.
Again, the Actuarial Society of Ghana has been quite for quite too long. They need to be heard on issues concerning risk and insurance on the Ghanaian financial sector. Like the collapse of UT bank and capital bank, like the Minister of finances decision on using a Single Treasury Account, like how the collapse of these two banks will lead to default of insurance premiums and the consequence on the individual policyholder as well as the insurance companies. This will draw people’s attention on some of the training actuarial graduates receive, hence accord them the respect desired.
Recently, the IFOA, SOA and the Canadian Society of Actuaries conducted a joint research on the reason why the rate of growth in life expectancy in the UK, USA and Canada has slowed down and the effect on pension companies. The ASG can do same by carrying out other researches pertaining to the financial services in Ghana. Early this year, the ISSER revealed that only 10% of university graduates are able to secure jobs within their first year after graduation which is alarming. It is therefore the responsibility of the various professional bodies within the country to reach out to the public and make them understand what their graduates bring to the table if they are serious about promoting their profession. If the ASG is able to meet this obligation, the number of graduate seeking to travel outside the country is going to reduce significantly.
Emmanuel Sackey
Actuarial Science Student
University of Ghana
Sackey143@gmail.com