The Institute and Faculty of Actuaries, the UK based chartered international professional body for actuaries, launched a suite of Actuarial Training Modules aimed at helping businesses providing Micro-insurance in the developing world at the 8th International Micro-insurance Conference in Dar es Salaam on 8 November 2012.
The Actuarial Modules are a suite of models designed to aid the education of Micro-insurance practitioners in running their businesses on sound actuarial principles. The models are spreadsheet based; containing a clear process for setting premium rates, calculating reserves and risk financing requirements.?By improving access to training in this way the modules aim to help the poorest people in developing countries to be able to access insurance products that benefit them via companies that utilise sound business principles.
The launch included the first two modules which cover agricultural crop insurance and credit life insurance.? A third module covering health insurance is planned for 2013.
The development of the modules was led by the Institute and Faculty of Actuaries, following the identification of a need for Micro-insurance practitioners in low income countries to have training in robust actuarial principles.? As there are few if any actuaries in many of these countries the modular approach was viewed as the most practical first step in improving the way that businesses in this area were run. The modules are publicly available and provide clear guidance on the key actuarial processes of pricing, reserving and risk finance.
The development of the modules was undertaken by the Institute and Faculty of Actuaries in collaboration with the International Actuarial Association, the Micro-insurance Network and the Oxford University Department of Statistics.
The modules will be continuously updated in order that they remain fit for purpose.? Further modules will be developed based on demand.
Dermot Grenham, spokesperson for the Institute and Faculty of Actuaries said:
?We hope that these modules will help to improve the quality of actuarial and general financial management of Micro-insurance providers in developing countries, especially where there is a lack of formal actuarial education.? This is a really exciting project that has enabled a wide range of actuaries from across the globe to work together for the public good, work which will be of particular benefit to low income people in developing countries.?
SOURCE: The Actuarial Profession