Kathmandu: UNDP backed technical support program UNDP-Milliman Global Actuarial Initiative program has been executed in four countries including Nepal for the development of actuarial profession and insurance risk assessment techniques.
Starting with a group of countries in 2022, including Colombia, Egypt, Nigeria, and Nepal, the UNDP-Milliman Global Actuarial Initiative will build improved capacity in actuarial skills and risk modelling through UNDP Country Offices to roll out the programme at country level. The actuarial situation in each country will be assessed and a roadmap will be developed with local stakeholders, including regulators, central banks, universities, insurers, actuarial organizations and associations to address identified gaps and opportunities. Based on the roadmap, interventions will be coordinated at country level.
The actuarial profession in Nepal is at very early stage of development despite a wide opportunity. There are around 19 life insurance, 18 general insurance and 2 re-insurance company at present. All these companies along with the Nepal Insurance Authority is largely dependent on the actuaries from neighboring country or abroad. The program aims to develop the profession through shared experiences, resources, training and opportunities for the Nepalese actuaries and students of mathematics.
The 3 year plan put forth by the UNDP-Miliman Global Actuarial Initiative in Nepal for the development of actuarial skill and risk modelling.
In the course of the program, the week long visit of a team of representatives from Milliman( a global consulting and actuarial firm) was concluded on 16th November 2022.The visiting team of Milliman was aided by Steve White (Senior Consultant) and Queenie Chow (Senior Program Manager). Following the visit and meeting with stakeholders, two separate committees have been formed for the development of the actuarial services and profession in Nepal.A Steering Committee has been formed under the leadership of Nepal Insurance Authority and a Working Group Committee has been formed under the coordination of the Actuarial Society of Nepal(ASN). The committees aim to provide road map and valuable suggestions to the stakeholders for the development of actuarial services and profession in Nepal.
During the visit, the Milliman team shared the objectives of the initiative: educational and employment opportunities, professional development, policy and regulatory development and thought leadership. They also presented on two topics: “The Role of Actuaries in Mergers and Acquisitions” and “The Case of Mobile Microinsurance Disruption”.
The actuarial profession can play a key role in building sound and resilient insurance sector and social protection in Nepal. “The actuarial profession is starting to flourish in Nepal, and events such as these will help the industry to understand the importance of having in-house actuarial professionals and build actuarial capability within the country,” said Prechhya Mathema, FIA, President of the Actuarial Society of Nepal.
The three-year plan focused on three areas: supply side (with the ASN members and undergraduate actuarial students being the major contributors), demand side (with the insurance companies, Nepal Insurance Authority and other public organizations as the major contributors), and regulatory side (with Nepal Insurance Authority as the major player). The Milliman team agreed to provide its expertise and resources to assist the contributors in each of the three areas.