Kathmandu. Lack of insurance is not a new problem in the Nepali insurance sector. Although the Nepali insurance sector has crossed half a century of age, insurance companies are still wandering every year in search of skilled insurers. Lack of insurance is a permanent excuse for not being able to hold the annual general meeting on time. So far, there is not a single insurer in Nepal and this problem has always been strong as it has to depend on foreigners for this manpower.
Realizing this long-term problem in the insurance sector, Tribhuvan University established a school of mathematics science in 2073 BS and started teaching insurance science.
#inline_tags_PLACEHOLDER_5##कसरी get the title of insurer?#inline_tags_PLACEHOLDER_7##
When talking about the lack of insurance, it is important to understand how this title is obtained, that is, how someone becomes an insurer. ‘Insurance’ is not a university degree. It is a professional qualification like a chartered accountant. Which are provided by recognized professional organizations. Therefore, obtaining a bachelor’s or master’s degree from a university does not make a person insuring. On the contrary, a person is given the title of insurer only after passing all the professional examinations conducted by recognized professional organizations. Which is called fellow insurer.
Developed countries have their own commercial insurance institutions. Among them, the Institute of Faculty of Actuaries in the UNITED Kingdom and the Society of Actuaries (SOA) in the United States are world-renowned institutions. The examination and other criteria for obtaining an insurer’s degree vary from institution to institution. For example, to become an insurer from a UK institution, you have to pass a total of 13 examinations and have 3 years of work experience. Similarly, you have to pass 10 main examinations and some other assistant examinations from the US institution.
Tribhuvan University offers courses under the Institute of Faculty Actuaries in the UK at the undergraduate level. Out of the total 13 subjects, the first 7-8 subjects are taught. Although the university teaches the curriculum, students have to participate in the vocational examination by choosing the subject they like themselves. Professional examinations have nothing to do with the bachelor’s degree offered by the university. Some pass 6-7 exams when they graduate, while others can not appear for a single professional exam but can also graduate. On an average, students have passed 4-5 examinations at the time of graduation.
Generally, insurance students start their career after passing the initial examination. Under which they work in insurance companies or actuarial firms and also appear in the remaining examinations.
#inline_tags_PLACEHOLDER_5##नेपालमा Current Situation##inline_tags_PLACEHOLDER_7#
One is a very difficult subject, including passing many levels of examination and taking education and employment together after starting a job. Because of this complicated path of insurance, it takes years to obtain an insurer’s title. Talking about the Mathematics Science School, it has been almost nine years since the first batch started studying, but no one has yet received the title of Fellow Insurer. Students who can count on their fingers are close to the title.
It may be recalled that as per the directives of The Nepal Insurance Authority, 2 years of work experience is required even after the fellow actuary to make an actuarial assessment of the Nepali insurance company or to prepare the insurance plan. Therefore, nepali insurers will have to wait longer to work as fellow actuaries in the Nepali insurance market. Although the fellow insurer may take more time, the student insurer or actuarial analyst has given a big support to the Nepali insurance sector.
#inline_tags_PLACEHOLDER_5##बीमांकीय Analyst#
Nepal Insurance Authority (NEA) has given the status of actuarial analyst to a person who has passed at least a bachelor’s degree in mathematics and three professional examinations and has a provision to have at least one in all life insurance, non-life insurance, reinsurance as well as micro insurance companies.
Actuarial analysts are playing a big role, especially in the life insurance sector. Experts in the insurance sector and high officials of insurance companies themselves say that there is a lot of difference in the absence of an actuarial analyst in the insurance company. With the approval of the regulatory body, the company must appoint a fellow insurer, known as the appointed insurer, to prepare an insurance plan, make an actuarial assessment and other necessary reports as demanded by the regulator. In Nepal, where there are currently no Fellow insurers, foreign fellow insurers are made their appointed insurers by insurance companies. Those who live abroad and work for Nepali companies.
Earlier, in the absence of an actuarial analyst, insurance companies had to rely solely on appointed insurers and even in general, they had to approach the appointed insurer. Moreover, due to the lack of basic knowledge of the actuarial subject at the management level of the company, the insurance company did not understand some of the things said by the appointed insurer and in some cases the insurance company could not give clear instructions to the insurer. In such a situation, there was a situation of spending a lot of time to complete the normal work, even if the actuarist made some mistake by mistake, but due to the lack of general knowledge to see the report, the sentence of the insured was a Brahma sentence and whatever was written, it was a situation to accept it. Put another way, there was a huge gap in the knowledge and cooperation of the insurance company and the insurer. Actuarial analysts did the construction of the bridge in the same bay. As a result, the actuarial work of the entire company has become effective and the managers of the insurance company have also gained basic knowledge of insurance.
At present, actuarial analysts are leading large projects in life insurance companies. RBC-based actuarial assessment is the latest example of this. Collaborating with the appointed insurer, assisting the regulatory body in preparing the report, simply explaining what the appointed insurer says to the top management, and participating in the big decisions taken by the company is like a routine task of the actuarial analysts.
Since there is no insurance subject in other courses of Nepali University, those who enter the insurance sector after studying other management subjects do not have any basic knowledge about insurance and learn everything only from the job experience. However, students who have studied actuarial subjects have prior knowledge about insurance and basic knowledge from the pricing of insurance plans to actuarial evaluation. As a result, they are ahead in technical matters and in a short time, they become aware of the overall subject of the company and catch the pace of the company.
At present, most of the insurance sector, whether it is seminars on insurance plans or training on actuarial evaluation, is found to be actuarial. Often, such events seem more like a gathering of classmates studying mathematics science than a gathering of insurance companies. As soon as the technical issues of the insurance sector come up, the company looks at the actuarial analyst. Since the appointment of actuarial analysts, the basic knowledge of insurance has also increased among those who are in the top management of insurance companies. As a result, companies look at decisions from an insurance point of view, which has never happened before. In this way, in this situation, the actuarial analysts, especially the life insurance company, have become a strong pillar.
प्रायः Actuarial Analyst Dissatisfied
Recently, The Insurance Authority of Nepal (INSURANCEA) conducted a survey of the actuarial analysts and their heads of department and presented its report by organizing a program on the occasion of the visit of the President of IFOA to Nepal. The report showed that many students were dissatisfied with the environment of the company they worked in. It is an international practice to support the education of actuarial students after hiring them. Under this, the provision of leave for the students to prepare for the examination and maintenance of the examination expenses is a general facility. However, most Nepalese insurance companies do not provide this facility, and they are reluctant to give adequate leave during exams.
Another dissatisfaction was with the position and salary, the report said. Although they play a big role in the company’s very sensitive work to managerial decisions, companies are benefiting by keeping them in the same position as assistants. A lot of work is held in the same position as an actuarial officer. They have complained that the company does not promote and provide the necessary services by making many excuses for giving posts and services based on the contribution, skills, experience and passing examination number of actuarial subjects. On the one hand, they have to pay very expensive examination fees themselves, on the other hand, they get less service facilities than work.
On the other hand, the insurance company says that the insurance analysts do not commit to working in the company for a long time and there is a tendency to go abroad after working for a short time, so they have not been able to invest in the actuarial analysts even if they want. Some companies have even accused actuarial analysts of asking for more services than the company can offer.
#inline_tags_PLACEHOLDER_5##डर bay
The increase in migration from every region in Nepal is no longer new. Whether it is players or doctors, engineers and other good professionals, there is a high tendency to leave the country. Their main complaint is that there is not enough opportunity. Although there seems to be no insurance in the actuarial sector so far and there seems to be an opportunity, the current situation indicates the exact opposite. This program, which was said to produce skilled manpower when there is no insurance in the country, produced skilled manpower, but ironically for another country. So far, most of the students who have done well in the actuarial field have gone out and some of the remaining are in the process of exiting. It is difficult for them to stay in Nepali insurance companies for two years. Moreover, the Nepali company has become like a place for them to prepare abroad. There are foreigners who have gained some experience in the company and new students will come and start learning from the beginning and they will also go abroad after some time. This cycle is going on in the insurance sector now. Some are fleeing with the idea of pursuing higher education and living abroad, while others are forced to flee due to the neglect of the insurance company despite wanting to stay in the country. Since this profession is in great demand all over the world, the production manpower here is easily sold anywhere. Moreover, developed countries, including the UNITED States, recognize this subject more than students of other subjects, so it is a bit easier to get a visa. Which is adding more strength to its escape.
In the current situation, if Nepali companies do not properly appreciate this profession, those who say that they live in the country are also forced to flee, and the insurance company itself is not able to prepare the manpower to serve the company in the long run. Therefore, in order to produce skilled manpower like insurers in the country, insurance companies need to groom their future appointments as insurers without bothering about service facilities, while actuarial analysts also need to move forward with a long-term vision by committing long service to the insurance company.
