UNDP-Milliman Global Actuarial Initiative: Nepal
A major initiative to develop an actuarial profession in Nepal kicked off with Steve White (Senior Consultant) and Queenie Chow (Senior Program Manager) from Milliman (an international actuarial and consulting firm) visiting Nepal from 8th November to 16th November 2022. This is part of the UNDP-Milliman Global Actuarial Initiative program, which aims to build capacity in actuarial skills and risk modeling in developing countries. Milliman staff across the globe at all levels of management will be volunteering to provide the necessary support for this initiative.
The purpose of the visit was to assess the actuarial landscape in Nepal, understand gaps within the working environment and education systems for the actuarial profession, and to develop a 3-year roadmap to implement the program. The visit has been a success through active engagement with key stakeholders in Nepal: Ministry of Finance, Nepal Insurance Authority, Actuarial Society of Nepal, Jeevan Bimak Sangh Nepal, Nepal Insurers’ Association, School of Mathematical Science (Tribhuvan University), Social Security Fund and Nepal Bankers’ Association. The visit concluded with a workshop hosted by the UNDP Nepal to present their findings, discuss solutions and agree on the 3-year plan to enhance the development of the actuarial profession in Nepal.
Some of the key highlights of the visit were:
- Meeting with the Actuarial Society of Nepal (ASN) members
The ASN medicated an interactive session between its members and the Milliman team on November 9, 2022. The members represented the actuarial analysts working in life and non-life insurance companies, as well as undergraduate actuarial students from Tribhuvan University. This session provided the Milliman team with an actuarial students’ perspective on the actuarial science career in Nepal.
The ASN members shared their experiences on the current status of as well as the challenges faced by employed actuarial analysts and undergraduate actuarial students, students’ choice of affiliated institutions for accreditation, actuarial career growth prospect at work, and progression towards Associateship and Fellowship qualifications.
- Interaction Program with CEOs of Insurance Companies
The ASN organized an interaction program with the CEOs from the life insurance, non-life insurance, and reinsurance companies on November 9, 2022. The event was sponsored by Nepal Insurance Authority.
The event brought together all the key stakeholders to discuss a roadmap for strengthening the actuarial profession in Nepal. 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 a 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.
- Roadmap Workshop with Key Decision Makers
UNDP Nepal hosted a session on November 15, 2022, with the major decision-makers for this initiative. Representatives from UNDP Nepal, Milliman team, Nepal Insurance Authority, Jeevan Bimak Sangh, Nepal Insurers’ Association, local reinsurers, Tribhuvan University, and council members of the ASN were present at the workshop.
The Milliman team presented their findings and the three-year plan to develop an actuarial profession in Nepal and sought feedback from the stakeholders. 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.
All stakeholders present agreed that the development of the actuarial profession in Nepal is a necessity for the insurance industry, and all agreed to work together to make the three-year plan of the UNDP-Milliman Global Actuarial Initiative a success. The meeting ended with the formation of two committees: a Steering Committee to be led by Nepal Insurance Authority and a Working Group Committee to be led by the ASN.