Studying Actuarial Science in Malaysia & How to Become a Professional Actuaries

All you need to know about Actuarial Science in Malaysia – The Career, Jobs, Salary, Education Path & Becoming a Professional Actuary

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The job demand for actuaries in Malaysia & globally is high with excellent remuneration. To become a professional actuaries, one needs to take the professional exams after completing an actuarial science degree. The pathway to become a professional actuary in Malaysia can be long. One must pass the actuarial professional examinations and various on-the-job assessments, in addition to obtaining a degree. A normal actuarial studies degree spans 3 years. Thereafter, completing the professional exams may take another 3-7 years (considering working full-time while studying). However, all these will be rewarding in the end when you are earning a high income. In this article, you can find out about the job, salary, and education pathway to becoming a professional actuary in Malaysia.

You might also be interested to read:

• Top Private Universities in Malaysia Best for Actuarial Science Studies Courses
• Pathway to Become an Actuary in Malaysia through the Institute and Faculty of Actuaries (IFoA) Curriculum 2019
• Actuarial Science in Malaysia – Job, Salary, Education Pathway & Professional Papers
• Which are the Top Private Universities Best for Actuarial Science Malaysia
• Top Universities in Malaysia for Actuarial Science Best for Preparing You for the Society of Actuaries (SOA) Exams
• How to Become a Professional Actuary in Malaysia through the Institute and Faculty of Actuaries (IFoA)
• Studying Actuarial Science in Malaysia & the Best Pathway to Become a Professional Actuary
• Studying Actuarial Science in Malaysia can get you a High Salary Career
• Best Pathway to Becoming an Actuary in Malaysia through the Society of Actuaries (SOA) Professional Exams
• Best Actuarial Science Degree Courses in Malaysia

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Actuarial Science in Malaysia – Career, Salary and Education Pathway

Actuaries build and use mathematical models based on statistical data to calculate the appropriate amount of premiums to charge policyholders. This will require projections of how events will unfold in the future. In calculating the right amount of premiums, the actuary will need to project how large potential claims will be and when they will occur.

Such projections are incorporated into the models to calculate the premium required. At the same time, judgement, business acumen and experience are required to understand and logically interpret the results of the model before finally coming up with a solution to the problem. Actuarial science is a combination of science and art!

Calculation of premiums is only one of the many contributions of actuaries to insurance companies. In addition to pricing decisions, actuaries are involved in designing insurance products, formulating investment strategies, determining reserves to be set up to meet future claims and recommending distribution of profits to shareholders after taking into account the insurance company’s future obligation to policyholders.

Actuaries evaluate and manage financial risks, particularly in the financial services industry. If you are good at mathematics, enjoy problem-solving and are interested in financial matters, you should enjoy studying actuarial science.

The pathway to become a professional actuary in Malaysia can be long. One must pass the actuarial professional examinations and various on-the-job assessments, in addition to obtaining a degree. A normal actuarial studies degree spans 3 years. Thereafter, completing the professional exams may take another 3-7 years (considering working full-time while studying).

What is an Actuary?

• Actuaries are business professionals who measure and manage the financial implications of future events—pro and con, certain and uncertain, probable and improbable.
• Actuaries measure and manage risk. With a deep understanding of mathematics, actuaries forecast possibilities and develop plans to manage financial risks. Applying a blend of math, statistics, computing and business knowledge, they serve as trusted financial and business advisors. Actuaries inform and make decisions that lead to profits, savings, stability and success.
• With actuaries’ help, businesses can grow and provide greater value; leaders can make strategic decisions based on a clear understanding of risks; and people can prepare for the future with greater confidence.

What you Will Study in Actuarial Science in Malaysia

Obtaining an Actuarial Science degree at a top private university in Malaysia provides the first step towards qualifying as an actuary. Actuarial Science is an extremely demanding field of study and only very dedicated and capable students are likely to succeed.

Not all people are suited to study actuarial science as it is a very challenging course and requires a long time to become a professional actuaries. Students after SPM, O-Levels or UEC with As in Maths and Add Maths can consider a career in actuary.

Actuarial Science is a very comprehensive course in the way that it covers Mathematics, Finance, Economics, Accounting, Business Models, Computer Programming and Risk Management. As such, a high aptitude in Mathematics is highly required.

Actuarial science includes a number of interrelated subjects, including mathematics, probability theory, statistics, finance, economics, and computer science. Historically, actuarial science used deterministic models in the construction of tables and premiums. The science has gone through revolutionary changes during the last 30 years due to the proliferation of high speed computers and the union of stochastic actuarial models with modern financial theory.

Actuarial Science degree students at top universities in Malaysia will also learn Calculus, Statistics, Probability, and Financial Mathematics. With this fundamental Mathematical knowledge graduates will be able to solve complex actuarial problems.

Actuarial science is the discipline that applies mathematical and statistical methods to assess risk in insurance, finance and other industries and professions. Actuaries are professionals who are qualified in this field through intense education and experience. Upon completion of the actuarial science degree programme in Malaysia, actuaries must demonstrate their competence by passing a series of thorough professional examinations.

Being an actuary also requires you to master several computer programming languages such as Microsoft Excel, Microsoft Visual Basic, Microsoft Visual FoxPro, and most importantly, Prophet – an actuarial software designed to crunch a large database. If you do not enjoy learning programming languages or writing codes, actuarial science would not be the career for you.

Actuaries are professionals who like to solve complex problems. There are many factors impacting an actuarial solution that even one assumption is inaccurate, it would affect the whole solution and result.

Consequently, actuaries employ the actuarial control cycle – a problem-solving approach that applies equally well to the most broad and the focused actuarial problems. It is a model of actuarial practice in a wide range of fields and provides common grounding for all candidates.

Through the control cycle, all actuarial work is categorized into three main functions:

1. Define the problem
2. Design the solution
3. Monitor the results

Because of their ability to analyse and solve complex problems, actuaries command a very high salary. In fact, it is one of the highest paid professions in Malaysia and globally.

Who Should Study Actuarial Science in Malaysia?

To become an actuary, you will generally need to have a high-level of mathematical ability and an above-average level of intelligence. However, actuaries must also have good verbal and written communication skills, strong computer skills, time-management skills, as well as possess good judgement, imagination and clear logical thinking.

They also should have a knack for problem-solving, be self-confident, and possess the ability to work under pressure. Sharpness, creativity, practicality coupled with good business sense are also some of the key personal attributes. An actuary who has devised a brilliant solution to complex problem must be able to explain his solution to non-actuaries!

Important characteristics for an actuary to have would be as follows:

• Mathematics is one of your favourite subjects. You study mathematics at the highest possible level and achieve good grades for it. You have a strong interest in solving complicated problems.
• You see yourself working as an actuary or risk manager for an insurance company, consultancy, pension fund or another financial or government institution.
• You have an affinity for numbers as well as the societal reality behind them, you are a good abstract thinker and you have strong analytical skills.
• Students should have achieved high marks in English and possess good oral & written communication skills.
• You are capable of working independently: you know how to use a library. Initiative and inquisitiveness are also of great value.

What are the Entry Requirements?

Students after SPM or O-Levels with at least 5 credits including the relevant subjects may enter the  Foundation in Business  or Foundation in Arts for 1 year before continuing on to the Actuarial Studies degree. Pre-University graduates in Malaysia from programmes such as UEC, STPM, A-Levels, SAM, CPU, AUSMAT and others may enter directly into the Actuarial Science or Actuarial Studies degree providing they meet the minimum entry requirements.

What type of students should study Actuarial Science in Malaysia?

Students who have a passion for Maths and excel in it can consider Actuarial Science as a career in Malaysia. Actuarial Science is a very comprehensive course in the way that it covers Mathematics, Finance, Economics, Accounting, Business Models, Computer Programming and Risk Management. As such, a high aptitude in Mathematics is highly required.

Degree students will also learn Calculus, Statistics, Probability, and Financial Mathematics. With this fundamental Mathematical knowledge graduates will be able to solve complex actuarial problems.

However, actuaries in Malaysia must also have good verbal and written communication skills especially in English, strong computer skills, time-management skills, as well as possess good judgement, imagination and clear logical thinking. They also should have a knack for problem-solving, be self-confident, and possess the ability to work under pressure.

Sharpness, creativity, practicality coupled with good business sense are also some of the key personal attributes. An actuary who has devised a brilliant solution to complex problem must be able to explain his solution to non-actuaries!

Being an actuary also requires you to master several computer programming languages such as Microsoft Excel, Microsoft Visual Basic, Microsoft Visual FoxPro, and most importantly, Prophet – an actuarial software designed to crunch a large database. If you do not enjoy learning programming languages or writing codes, actuarial science would not be the career for you.

Other than that, actuaries bring a special set of skills to their work such as:

• Specialised math knowledge
• Calculus, statistics, probability
• Keen analytical, project management, and problem solving skills
• Good business sense
• Finance, accounting, economics
• Solid communication skills (oral and written)
• Strong computer skills
• Formulating spreadsheets, statistical analysis programs, database manipulation, programming languages

Actuaries are talented professionals, with personal characteristics such as:

• Self-motivation
• Creativity
• Independence
• Ability to work with others
• Ambition

The skills developed and honed by successful actuaries include an excellent business sense with knowledge of finance, accounting, and economics; keen analytical, project management, and problem solving skills; specialized math knowledge; strong computer skills; and solid written and oral communication skills.

In addition, actuaries enjoy learning, like to solve complicated problems, enjoy writing and talking to people, can work effectively alone or as part of a team, are interested in a variety of historical, social, legislative, and political issues, and are self-motivated achievers.

As you can see, future actuaries need to be very well equipped to face the challenges of completing the professional papers and then to succeed in the competitive work environment. Students should choose universities that are reputable with an English-speaking environment so that they are forced to communicate in English and therefore improve. Remember, if you want to work for top Multi-National Insurance companies, banks and investment firms, you have to have a strong command of the English language.

Future actuaries should also be interested in research and reading a lot, so if you do not finish reading this article, you should know that you may not be suited to become an actuary.

What are the Rewards for Actuarial Science Graduates in Malaysia?

• Financial – qualified actuaries have significantly higher salaries than most other professionals in the financial services industry. In addition, due to increments commonly offered for exam progress, actuarial executives can expect to outperform their peers in other sectors even before qualifying.
• Intellectually stimulating – actuaries are rewarded for their problem solving and analytical skills. As such, job satisfaction comes from working in an intellectually stimulating and challenging environment. This encourages continual growth in one’s technical skill and ability, paving the way to involvement at senior levels of all organisations.
• Employment opportunities – due to the constant demand for actuaries exceeding supply, there is rarely ever a shortage of demand for actuaries. Many actuaries have also successfully transitioned to other non-traditional areas such as corporate finance and investments, where their analytical and quantitative skills are highly sought after.

Actuarial Science Salary and Career Opportunities in Malaysia

By and large, the rewards & remuneration for actuarial science professionals are good. It is no secret that an actuary is one of the higher paid jobs in Malaysia.  Of course, salaries can vary according to company policy and market forces of supply and demand. Actuaries have excellent promotion opportunities as they gain more experience and advancement to higher management levels will usually come rapidly with good job performance.

Actuaries are well compensated. Experienced fellows have the potential to earn from USD$150,000 to USD$250,000 in the USA annually, and many actuaries earn more than that.

Compensation may vary significantly according to years of experience, industry, geographic region, and responsibilities. For example, an actuary with a fellowship designation working as a financial manager in the banking industry could earn a higher salary than another fellow working in the health insurance industry.

The actuarial profession is perfect for individuals who enjoy challenges and problems solving. Those who develop a track-record of success will have many opportunities for growth and advancement. Most employers of actuaries in Malaysia award merit increases as you gain experience and pass the actuarial examinations. Most companies also offer cash bonuses, salary increases, and promotions for each professional designation achieved.

Skills acquired by actuaries, especially the quantitative analysis of risk, are valued in the marketplace. As such, those who have the will to succeed can aspire to career advancement with an actuarial credential.

Future job prospects for actuarial science professionals in Malaysia

The Actuarial Society of Malaysia observed that with the expected continuous growth in the insurance market, the demand for actuaries in Malaysia will continue to grow in the next few decades. The rewards for an actuary is good and is one of the higher paid jobs. There is a demand for actuaries in Malaysia.

• Given the expected continuous growth in the insurance market, it is anticipated that the demand for actuaries in Malaysia will continue to grow in the next few decades.
• Future regulatory developments (e.g. requirement for certification of IBNR) and the increasing need for risk management are likely to result in significant increase in demand for actuarial services by general insurers.

• With only 100 qualified actuaries in Malaysia, the market for actuaries can perhaps still be considered unsaturated.

High demand for qualified actuaries in Malaysia

According to Actuarial Society of Malaysia (ASM), there are only about 30-40 qualified actuaries in Malaysia at present. ASM predicts that given the continuous growth of the insurance industry, demand for qualified actuaries will continue to grow over the next few decades.

The president of ASM estimated that a minimum of 100 actuaries are needed to serve the Malaysian population of 24 million people. Overseas, actuaries are employed in various work areas ranging from strategic planning to weather forecasting.

How many Professional Actuaries are there in Malaysia? Actuarial Society of Malaysia (ASM) Society Statistics as at 30 June 2019

Membership Breakdown by Class

Class	Total
Fellow	164
Associate	65
Ordinary	721
Student	18
Total	968

Membership Breakdown by Professional Body

Professional Body	Total
Society of Actuaries	515
Institute & Faculty of Actuaries	286
Institute of Actuaries of Australia	38
Casualty Actuarial Society	88
Others	41
Total	968

Membership Breakdown by Class

Class	Total
Fellow	287
Associate	135
Ordinary	1618
Student	90
Total	2130

Membership Breakdown by Professional Body

Professional Body	Total
Society of Actuaries	30
Institute & Faculty of Actuaries	27
Institute of Actuaries of Australia	3
Casualty Actuarial Society	8
Others	2062
Total	2130

Actuaries Salary and Career Opportunities in Malaysia

Actuaries are well compensated. Experienced fellows have the potential to earn from $150,000 to $250,000 annually, and many actuaries earn more than that.

Compensation may vary significantly according to years of experience, industry, geographic region, and responsibilities. For example, an actuary with a fellowship designation working as a financial manager in the banking industry could earn a higher salary than another fellow working in the health insurance industry.

The actuarial profession is perfect for individuals who enjoy challenges and problems solving. Those who develop a track-record of success will have many opportunities for growth and advancement.

Most employers of actuaries award merit increases as you gain experience and pass the actuarial examinations. Most companies also offer cash bonuses, salary increases, and promotions for each professional designation achieved.

Skills acquired by actuaries, especially the quantitative analysis of risk, are valued in the marketplace. As such, those who have the will to succeed can aspire to career advancement with an actuarial credential.

According to Hays Recruitment Malaysia 2019 Salary Guide 

The yearly salary for the various job positions in actuaries in Malaysia are:

• Chief Actuaries 420 – 660k
• Department Head 180 – 300k
• Senior Manager 180 – 264k
• Manager 84 – 192k
• Associate 60 – 84k

According to the 2020 Robert Walters Salary Report

The annual salary for an actuary in Malaysia is:

			4 – 7 Years Experience	8 – 12 Years Experience	12+ Years Experience
Actuaries – Pricing & Valuation			90 – 180k a year	180 – 264k a year	264k+ a year

The Job of an Actuaries in Malaysia

Basically an Actuary calculates the amount of premiums to charge to a policy holder using mathematical models based on statistical data from the past. Since we are not able to predict the future, the actuary has to use mathematical models to make projections as accurate as possible on the chances that disease, accidents or death will occur to a person at a particular age and the potential for claims.

Then the insurance company is able to charge the premium for the financial protection. For example, a premium for a young male driver would be higher as the risks are higher as compared with an experienced driver or the premium for a non-smoker is lower because of the lower health risk.

In short, actuaries use and analyse historical data using mathematical models to come up with projections on the chances of something happening in order to formulate the pricing.

Actuaries are also involved in designing insurance products, formulating involved in designing insurance products, formulating investment strategies, determining reserves to be set up to meet future claims and recommend distribution of profits to shareholders taking into account the insurance company’s future obligation to policyholders.

Actuaries also estimate the amount of future claims by analysing past data or experience to assign probabilities to events such as death, sickness, disability, loss of property or even loss of business profits. Actuaries provide solutions to today’s insurance and financial problems that properly take into account the financial impact of future events. With the actuaries’ expert knowledge in financial matters, they are often key advisors to the Board of Directors.

An actuary’s job is not just boring desk-bound number crunching. Actuaries are faced with challenges of the ever-changing economic environment in which they have to constantly update their techniques of assessment and calculation. It is an intellectual challenge to analyse current trends and predict the future as we live in a world where the unexpected (e.g. the SARS outbreak, September 11 etc.) can happen.

Due to the demand for actuarial technical skills and knowledge, there are vast career options and opportunities for an actuary. Traditionally, actuaries worked only in the insurance industry.

However, with the growing acknowledgement and recognition of actuarial skills today across the various financial sectors, the potential employment opportunities of an actuary have expanded to encompass banks, investment companies, security and commodity broker firms, regulators and even lecturing in the education sector. With such demand, there is an ever-increasing need for actuaries all around the world.

In Malaysia, most actuaries are still working in the traditional life and non-life insurance industry. However, based on trends worldwide and the rapid growth of the Malaysian financial industry, it is expected that more and more actuaries will ventured into the non-traditional areas as mentioned above.

Graduates of the Actuarial Studies major are well prepared for careers in the following areas:

• Banking and finance
• Capital and risk management
• Financial planning
• Financial reporting and performance management
• General insurance
• Health insurance
• Investments and asset management
• Life insurance: product pricing, design and distribution
• Superannuation
• Valuation of insurance liabilities and financial instruments.

 What are the examples of actuarial work?

The traditional areas in which actuaries operate in Malaysia are: consultancy, investment, life and general insurance and pensions. Actuaries are also increasingly moving into other areas of the financial sector where their analytical skills can be employed.

• Consultancy
  • Actuarial consultancies offer a whole range of services to their clients on issues such as acquisitions, mergers, corporate recovery and financing capital projects. Many also offer advice to employers and trustees who run occupational pension schemes. In fact, such consultancies are probably the biggest employers of actuaries in the UK.
• Investment
  • In the area of investment, actuaries are involved in a range of work such as: pricing financial derivatives, working in fund management, or working in quantative investment research. Often investment actuaries work in fields where their understanding of insurance or pension liabilities helps them to manage the investment of the corresponding assets.
• Insurance
  • The work carried out by actuaries in insurance includes designing new insurance policies, setting premium rates, calculating a company’s financial status (based on the policies already sold), and answering technical queries from policyholders. Insurance actuaries also undertake detailed investigations of different experiences; such as how assets and expenses have performed and the extent of different types of claims for different types of insurance policies (eg death claims for life insurance or car theft for motor insurance).
• Pensions & Employee Benefits
  • In the pensions field, actuaries are usually involved in designing and advising company pension schemes, especially where a value needs to be placed on a scheme’s accumulated pension promises. Actuaries are also involved in designing schemes for employee benefits.

Where do most actuaries work in Malaysia?

Actuaries are normally found in the insurance industry. They also work in consulting, financial institutions, banks, investment, brokerages, or as lecturers.

The American Society of Actuaries defines actuaries as ‘professionals who provide expert advice and relevant solutions for business and societal problems that involve economic risk.’  In Malaysia, one of the places where actuaries are often found is at insurance companies. Using mathematical models based on statistical data, they are the brains behind the calculation of the amount of insurance premium that a policyholder has to pay.

With their readily transferable skills, actuaries can also be found in many other fields. Besides the hugely popular insurance field, an actuary can work in finance, marketing, manufacturing or in the development of new products.

For example, an actuary might be hired by a business to help determine where it should invest its money based on risk and potential return analysis. Opportunities for actuaries range from the education industry to research work and even to government agencies. Because of the importance of their work, actuaries are respected throughout the business community.

In Malaysia, most actuaries can be found in life insurance companies, financial institutions such as banks, consultancies providing advice in the fields of employee benefits, life insurance and general insurance, Bank Negara Malaysia and public universities.

The areas of work for actuaries are not limited to insurance firms only. Instead, the horizon for this line of job is very wide. Below are some of the areas of work which actuaries do:

• Life Insurance / Family Takaful
• General Insurance / General Takaful
• Reinsurance / Retakaful
• Actuarial Consulting
• Investment and Financial Services
• Employee Benefit Industry (e.g. EPF)
• Government Sector (e.g. BNM)
• Colleges and Universities

What are the career options available to actuaries?

Actuarial Science is a qualification you can take anywhere in the world. It’s a highly regarded profession that is high in demand in Malaysia and you’ll be well rewarded for your analytical and problem solving skills and your ability to lead. Emerging as a key growth sector of the 21st century, actuarial science applies elements of economics, finance, statistics and advanced mathematics to interpret, manage and evaluate risk.

Employment opportunities include working as an investment analyst, portfolio manager, actuarial consultant, insurance actuary, superannuation actuary, risk analyst, big data analyst, liability manager and high level manager.

Actuaries have historically taken on the following positions in companies:

• Chief Executive Officer (CEO)
• Chief Risk Officer (CRO)
• Chief Financial Officer (CFO)
• Appointed Actuary / Signing Actuary
• Asset/Investment Consultant
• Management Consultant

Actuaries can Specialise in Various Fields in Malaysia

Combining their skills in mathematics, statistics, economics and finance, actuaries are able to gauge and make expert financial predictions about the future.

Actuaries can specialise in the following fields:

• Traditional life insurance
  • They focus on the analysis of mortality, the production of life tables and the application of interest to produce life insurance, annuities and endowment policies. It also includes credit and mortgage insurance, long term care insurance and health savings account.

• Health insurance
  • They focus on the analyses of rates of disability, morbidity, mortality, fertility and other contingencies. Also of great importance are the effects of consumer choice and the geographical distribution of medical services as well as the procedures and use of drugs and therapies.

• Pension industry
  • They measure costs of alternative strategies with regards to the design, maintenance or redesigning of pension plans. The strategies are greatly influenced by collective bargaining, the changing demographics of the workforce, changes in internal revenue code and financial and economic trends among others.

• Property and casualty
  • They focus on data collection, measurement, estimation, forecasting and valuation tools to provide financial and underwriting data for management to assess marketing opportunities and the required degree of risk taking.

• Reinsurance
  • Focus on designing and pricing reinsurance and retro-reinsurance schemes. Their responsibility also includes establishing reserve funds for known claims and future claims as well as catastrophes.

What do Actuaries work as in Malaysia?

Actuaries work in insurance and everywhere in-between.

Actuaries are at work all over the world—anticipating and solving financial, economic and other problems for companies, institutions and societies.

Actuaries are in demand in financially focused businesses including insurance, employee benefits and consulting. The field is expanding to include just about any industry or opportunity where decisions carry financial weight: banking and investments, government, energy, e-commerce and marketing. More and more, leaders want to reinforce their decisions with trusted analysis.

Actuaries measure risk and discover ways for people and organizations to stay secure, even when the risks are high. And because risk is everywhere, so are actuaries.

People generally know that actuaries work in the insurance industry but what is it that an actuary really does? If you have a life insurance policy, you’ll have to pay premiums regularly to your insurance company in exchange for the financial protection that the company is providing you. Have you ever wondered who calculates the amount of premium you have to pay?

Actuaries build and use mathematical models based on statistical data to calculate the appropriate amount of premiums to charge policyholders. This will require projections of how events will unfold in the future. In calculating the right amount of premiums, the actuary will need to project how large potential claims will be and when they will occur.

Such projections are incorporated into the models to calculate the premium required. At the same time, judgement, business acumen and experience are required to understand and logically interpret the results of the model before finally coming up with a solution to the problem. Actuarial science is a combination of science and art!

Calculation of premiums is only one of the many contributions of actuaries to insurance companies. In addition to pricing decisions, actuaries are involved in designing insurance products, formulating investment strategies, determining reserves to be set up to meet future claims and recommending distribution of profits to shareholders after taking into account the insurance company’s future obligation to policyholders.

Actuaries also estimate the amount of future claims by analysing past data or experience to assign probabilities to events such as death, sickness, disability, loss of property or even loss of business profits. Actuaries provide solutions to today’s insurance and financial problems that properly take into account the financial impact of future events. With the actuaries’ expert knowledge in financial matters, they are often key advisors to the Board of Directors.

An actuary’s job is not just boring desk-bound number crunching. Actuaries are faced with challenges of the ever-changing economic environment in which they have to constantly update their techniques of assessment and calculation. It is an intellectual challenge to analyse current trends and predict the future as we live in a world where the unexpected (e.g. the SARS outbreak, September 11 etc.) can happen.

Due to the demand for actuarial technical skills and knowledge, there are vast career options and opportunities for an actuary. Traditionally, actuaries worked only in the insurance industry. However, with the growing acknowledgement and recognition of actuarial skills today across the various financial sectors, the potential employment opportunities of an actuary have expanded to encompass banks, investment companies, security and commodity broker firms, regulators and even lecturing in the education sector. With such demand, there is an ever-increasing need for actuaries all around the world.

In Malaysia, most actuaries are still working in the traditional life and non-life insurance industry. However, based on trends worldwide and the rapid growth of the Malaysian financial industry, it is expected that more and more actuaries will ventured into the non-traditional areas as mentioned above.

In the wide field of opportunities to manage risk, one industry employs more actuaries than any other: insurance. Within this industry, actuaries hold significant positions:

• In insurance companies, where actuaries develop, price and manage products across all lines of business—life, health, retirement, and general insurance (property and casualty).
• With consulting firms, where actuaries advise employers on the design and management of pension, retirement and other employee benefit programs and provide actuarial advice to insurance companies and other providers of financial services.
• Within employee benefits departments, where actuaries define, create and manage pension and retirement plans for employees.
• In government agencies, where actuaries operate retirement and insurance programs.
• For financial advisories, where actuaries provide financial planning guidance to individuals.

With actuarial work, opportunities grow and change along with the world. For instance, changes in healthcare laws have created the need for more actuaries to evaluate the effects of those laws on insurance programs and benefit plans. Additionally, catastrophic weather brings opportunity for actuaries in the general insurance field to predict, evaluate and cover the risks associated with potential storms.

Examples of actuarial work:

• Valuation –performs experience studies, cash flow testing and other tasks to set the amount of reserve and capital to be held by an insurer
• Pricing –determines product features and pricing of products
• Pension –certifies the contributions needed to adequately fund a pension plan
• Consulting –advises clients on actuarial financial risks, usually associated with employee benefits and insurance
• Reinsurance –performs traditional actuarial duties for a reinsurer that would accept risk from a direct insurance company
• General Insurance – performs roles like a valuation or pricing actuary, with a specialty in property and casualty insurance
• Health Insurance –performs actuarial duties for a health organization or insurer
• Product Line or Segment Risk Management – performs risk management functions for a specific line of business for an insurance company

Non-traditional Career Pathways for Actuaries in Malaysia

In terms of employment opportunities for actuaries, the insurance industry is number one—but not the only industry for actuaries.

Wherever there is risk—and a desire to manage it—there is opportunity for actuaries to apply analytical skills and business knowledge to solve problems. Changes in the world bring new risks; and new risks mean new challenges for actuaries. Also, as more leaders and organizations see that risk modeling and management can help them navigate volatile situations, actuarial careers are taking exciting turns.

Actuaries are finding roles in industries where actuaries have never been.

As companies seek greater control over risk, they are bringing actuarial work in-house. Enterprise Risk Management has become such a trusted, essential function that some organizations employ a Chief Risk Officer, a risk management-focused position at the most senior level of business leadership.

Additionally, actuaries find professional growth and personal satisfaction in fields such as:

• Financial services, such as banking, investment management and stock markets in developing economies
• Technology, e-commerce and business start-ups of all sorts
• Environmental causes, climate change and weather risk management
• Transportation, such as shipping and air travel
• Energy, such as utilities, oil and gas
• Government institutions, social programs and other groups that help shape legislation

Examples of non-traditional actuarial fields in Malaysia

• Business Analytics, where actuaries work on predictive modeling and data mining
• Enterprise Risk Management, where actuaries provide tools, techniques and perspective to manage operational risks at an enterprise or corporate level
• Senior Management, where actuaries provide broad business and management oversight for an organization’s most senior decision makers
• Investments and Fund Management, where actuaries focus on asset risks for asset managers but also contribute in areas such as hedging strategy, derivatives structuring and structured finance
• Banking and Financial Services, where actuaries help banks and financial services companies with product portfolio, capital management and risk analysis
• Environmental Finance, where actuaries apply finance techniques and practices to environmental issues
• Wealth Management and Financial Planning, where actuaries contribute skills and expertise to wealth management firms and individuals (rather than to insurance companies)
• Health and Retirement Financing, where actuaries offer advice on aspects of social insurance including funding levels and population projections
• Sales and Marketing, where actuaries help set policies, messages and compensation levels for those directly involved in marketing
• Entrepreneurial Actuaries, which represents a wide range of opportunities for actuaries who desire to set up and run their own business

The Best Education Pathway to Become a Professional Actuary in Malaysia

The path to becoming an actuary in Malaysia involves going through a well-structured education plan. This involves university-level education and post-university examinations, as well as other requirements.

After SPM or O-Levels, students can go for the Foundation in Business Administration or Foundation in Arts and then enter into a degree programme in Actuarial Science with VEE exemptions from the Society of Actuaries (SOA). At most universities in Malaysia, students will also receive credits for all the 3 Validated by Educational Experience (VEE) papers from SOA as long as they receive a minimum mark of 70% in the equivalent papers.

Upon completing the Actuarial Science degree, students can then begin to take the professional exams.

During their undergraduate studies, students can attempt the examinations conducted by professional bodies such as Society of Actuaries (SOA) or Institute and Faculty of Actuaries (IFoA).

How long does it normally take to become an Actuary in Malaysia?

A normal bachelor degree takes 3 years (+1 year if you consider an Honours degree in Australia). Thereafter, writing the professional exams through the Institute and Faculty of Actuaries (UK) or Society of Actuaries (USA) takes an average of 3-7 years (working and studying) after the degree.

Actuarial Science/Math Degree (3-4 years) + Professional Papers (3-7 years taken part time as you work)

Qualifying to become a professional Actuary in Malaysia

No specific degree is mandatory, but like most good jobs, graduating from university will give one a certain edge and credibility. Most practising actuaries today have a degree in mathematics, actuarial science, statistics or computer science. Similar to accountants, graduates must also pass professional exams, before they become recognised as an actuary.

In Malaysia, to be recognised as an actuary, one will have to be a registered member with the Actuarial Society of Malaysia (ASM).

What are the Passing Rates like for the Actuarial Science Professional Exams?

Passing rates are generally low compared with other professions.
For the Institute, Society or Faculty professional exams, passing rates as low as 15% – 25% per subject are not uncommon.

What kind of support do local and foreign companies provide?

Most, if not all local and foreign companies support their actuarial students by having actuarial development programs with the following incentives:

• Study and exam leave
• Full/partial reimbursement on costs of study material
• Salary increment and/or bonus upon passing of exams

Which Actuarial Professional Bodies are Recognized in Malaysia?

Malaysian insurance regulator, Bank Negara Malaysia and the Actuarial Society of Malaysia (ASM) recognize Fellows of the following organizations as qualified actuaries:

• Society of Actuaries (U.S.)
• Institute and Faculty of Actuaries (UK)
• Faculty of Actuaries (Scotland)
• Institute of Actuaries of Australia
• Canadian Institute of Actuaries
• Casualty Actuarial Society (U.S.)

Currently, the ASM does not conduct any of its own exams, but aspiring actuaries in Malaysia can choose to take the exams conducted by one of the above professional bodies.

What about professional exams and qualifications for Actuary?

The ASM does not conduct its own exams but actuarial students in Malaysia have a choice of taking any of the USA, U.K. or Australian exams from the above professional bodies.

About the Society of Actuaries (SOA) – USA

The Society of Actuaries (SOA) is a professional organization for actuaries based in North America. It is a full member organization of the International Actuarial Association.

The Society’s vision is for actuaries to be recognized as the leading professionals in the modeling and management of financial risk and contingent events. The SOA has three overall goals: providing primary and continuing education for students and practicing actuaries, maintaining high professional standards for actuaries, and conducting research on actuarial trends and public policy issues.[5]

The Society’s members are mainly involved in the life, health, and pension areas of the actuarial profession. There are three designations offered by the Society. The two Associate-level designations are Associate of Society of Actuaries (ASA) and Chartered Enterprise Risk Analyst (CERA), which was introduced in 2007. The highest designation is Fellow of the Society of Actuaries (FSA). As of April 1, 2011, SOA membership consisted of 8,712 Associates and 13,489 Fellows.

Requirements for membership for the SOA include the actuarial exams, a comprehensive series of competitive exams. Topics covered in the exams include mathematics, finance, insurance, economics, interest theory, life models, and actuarial science. Non-members working in the actuarial profession and taking exams are often referred to as actuarial students or candidates.

Overview of the Society of Actuaries (SOA) Examinations in Malaysia

Professional designations in the Society are earned by completing a rigorous system of examinations. It is common for actuarial students to work full-time in the profession while studying for the exams.

The first five (“preliminary”) exams consist mostly of core mathematics related to actuarial science including probability, statistics, interest theory, life contingencies, and risk models.

A series of online learning modules, called the Fundamentals of Actuarial Practice (FAP), are intended to be taken after the preliminary exams. They cover real-world topics such as insurance and professionalism with readings, case studies and projects. The preliminary exams and FAP modules comprise the majority of the education requirement for the ASA designation.

Upper-level exam topics for the FSA designation include plan design, risk classification, enterprise risk management, ratemaking and valuation. Three fellowship exams are taken in one of six specialization tracks chosen by the candidate – Finance & Enterprise Risk Management, Investments, Individual Life Insurance & Annuities, Retirement Benefits, Group & Health Insurance, or General Insurance.

Candidates completing the Finance & Enterprise Risk Management track will also earn the CERA designation. Candidates in any of the other five tracks have the option of replacing their track-specific Enterprise Risk Management exam with a more generalized ERM exam in order to obtain the CERA designation in addition to FSA

Meaning of FSA and ASA Designations

The Society of Actuaries Bylaws states that a member may use the designation “Fellow of the Society of Actuaries” or “Associate of the Society of Actuaries,” as applicable, or the corresponding initials. Since these designations will be viewed by the public as conveying a certain professional standing, this brief explanation of their meaning is intended to be helpful to our members and to the public.

The Society of Actuaries, as described in our Mission and Vision Statement, is an education, research, and professional membership organization. Achieving Fellowship or Associateship status is based primarily on completing specified educational requirements, with no requirement related to a certain number of years of practical actuarial experience. The FSA and ASA designations and CERA credential signify completion of the following educational achievements:

• Chartered Enterprise Risk Analyst: A Chartered Enterprise Risk Analyst (CERA) of the Society of Actuaries has demonstrated knowledge in the identification, measurement and management of risk within risk–bearing enterprises. The CERA has also completed a professionalism course covering the professional code of conduct and the importance of adherence to recognized standards of practice. CERAs who have the Application for Admission as an Associate approved by the SOA Board of Directors will be granted membership as an Associate.
• Associate: An Associate of the Society of Actuaries has demonstrated knowledge of the fundamental concepts and techniques for modeling and managing risk. The Associate has also learned the basic methods of applying those concepts and techniques to common problems involving uncertain future events, especially those with financial implications. The Associate has also completed a professionalism course covering the professional code of conduct and the importance of adherence to recognized standards of practice. Associates who have been members of the SOA for five or more years may also vote in Society of Actuaries elections.
• Fellow: Has demonstrated a knowledge of the business environments within which financial decisions concerningpensions, life insurance, health insurance, general insurance and investments are made including the application of mathematical concepts and other techniques to the various areas of actuarial practice. The Fellow has further demonstrated an in–depth knowledge of the application of appropriate techniques to a specific area of actuarial practice. Fellows may vote in Society of Actuaries elections.

When Associate status is achieved, the individual becomes a member of the Society of Actuaries, is able to attend meetings, join in discussions, participate on Committees, join Sections, and is subject to the code of conduct for the profession. All Fellows and five-year Associates may vote in Society of Actuaries elections.

While these educational accomplishments are a vital part of an actuary’s progress, they must be combined with appropriate training and practical experience in order for an actuary to be qualified to practice and to give advice on a specific issue.

It is important to note that the Society of Actuaries’ professional designations and credentials, of themselves, recognize educational accomplishment only.

In most cases, by the time an individual reaches the Fellowship level, considerable practical experience has been acquired.

The combination of educational achievement, practical experience, and formal qualification (e.g., Enrolled Actuary; Fellow, Canadian Institute of Actuaries; Member, American Academy of Actuaries) permits the actuary to practice within his or her area of expertise.

Qualifying to become a professional Actuary in Malaysia through taking the Society of Actuaries (SOA) Professional Papers

No specific degree is mandatory, but like most good jobs, graduating from university will give one a certain edge and credibility. Most practising actuaries today have a degree in mathematics, actuarial science, statistics or computer science. Similar to accountants, graduates must also pass professional exams, before they become recognised as an actuary.

In Malaysia, to be recognised as an actuary, one will have to be a registered member with the Actuarial Society of Malaysia (ASM).

What kind of support do local and foreign companies provide?

Most, if not all local and foreign companies support their actuarial students by having actuarial development programs with the following incentives:

• Study and exam leave
• Full/partial reimbursement on costs of study material
• Salary increment and/or bonus upon passing of exams

Which actuarial professional bodies are recognized in Malaysia?

Malaysian insurance regulator, Bank Negara Malaysia and the Actuarial Society of Malaysia (ASM) recognize Fellows of the following organizations as qualified actuaries:

• Society of Actuaries (U.S.)
• Institute and Faculty of Actuaries (UK)
• Faculty of Actuaries (Scotland)
• Institute of Actuaries of Australia
• Canadian Institute of Actuaries
• Casualty Actuarial Society (U.S.)

Currently, the ASM does not conduct any of its own exams, but aspiring actuaries in Malaysia can choose to take the exams conducted by one of the above professional bodies.

What are the passing rates like for the Actuarial Science Professional Papers?

Passing rates are generally low compared with other professions.
For the Institute, Society or Faculty professional exams, passing rates as low as 15% – 25% per subject are not uncommon.

What about SOA exams and qualifications for Actuary?

The current structure for the Society of Actuaries (U.S.) exam series is briefly described below:

• 6 Preliminary Exams
• Validation by Educational Experience (VEE) – 3 subjects
• Fundamental Actuarial Practices (FAP) – 8 modules + 2 assessments
• Project (Predictive Analytics)
• Associateship Professionalism Course
• FSA Module – 2 Modules
• FSA Exams – 2 Exams
• Strategic Business Management Module
• Fellowship Admissions Course

Society of Actuaries (SOA) – USA

The journey to become a qualified actuary as outlined by the Society of Actuaries (SOA) – one of the most prominent professional organisation for actuaries in the world – is divided into four stages.

• The first is the Validated by Educational Experience (VEE) stage where students who receive grades of 70% and above for subjects in economics, corporate finance and applied statistics – will receive credit for these professional papers.
• The second stage involves 6 preliminary exams that candidates must pass before proceeding to the penultimate stage, namely, the Fundamentals of Actuarial Practices (E-Learning), Project (Predictive Analytics) and the Associateship Professionalism Course (APC). This will qualify them as an Associate of the Society of Actuaries (ASA).
• The final hurdle would be to qualify as a Fellow of the Society of Actuaries (FSA).

Route to Becoming an Actuary throught the Society of Actuaries professional exams – SOA

To attain the Associate of the Society of Actuaries (ASA) designation a candidate must successfully complete the requirements shown below, and have the Application for Admission as an Associate approved by the SOA Board of Directors. Requirements include examinations, an e-Learning course, a proctored project assessment, validation of educational experiences outside the SOA Education system (VEE), and a professionalism seminar.

 

 

 

 

 

 

 

1. Preliminary Education Component

Consists of 6 papers:

• Exam P Probability
• Exam FM Financial Mathematics
• Exam LTAM (Long-Term Actuarial Mathematics)
• Exam IFM (Investments & Financial Markets)
• Exam STAM (Short-Term Actuarial Mathematics)
• Exam SRM (Statistics for Risk Modelling)

2. Validation by Educational Experience (VEE)

There are three required VEE topics as of July 1, 2018:

• Economics
• Accounting and Finance
• Mathematical Statistics

NOTE: VEE topics are not prerequisites for the preliminary examinations. They need not be completed prior to writing any of the preliminary exams and may be fulfilled independently of the preliminary exam process.

Credit for VEE can be obtained through various courses completed from colleges or other education programs. Within Malaysia, candidates can gain credit via the following Private Universities:

• Heriot-Watt University Malaysia
• Asia Pacific University (APU)
• Taylor’s University

3. Fundamentals of Actuarial practice (FAP) – E-Learning

A series of online learning modules, called the Fundamentals of Actuarial Practice (FAP), are intended to be taken after the preliminary exams. They cover real-world topics such as insurance and professionalism with readings, case studies and projects. The preliminary exams and FAP modules comprise the majority of the education requirement for the ASA designation.

Web-based course comprising eight modules and two assessments:

Modules:

• Module 1 – Introduction / The Role of the Professional Actuary
• Module 2 – Core External Forces
• Module 3 – Risk in Actuarial Problems
• Module 4 – Actuarial Solutions
• Module 5 – Actuarial Models
• Module 6 – Model Selection and Solution Design
• Module 7 – Selection of Initial Assumptions
• Module 8 – Monitoring Results and Completing the Control Cycle

Assessments:

• First Assessment upon completion of Modules 1 to 5
• Final Assessment upon completion of Modules 6 to 8

4. Project (Predictive Analytics)

5. Associate Professionalism Course (ACP) – Seminar

Half day course covering professionalism, ethics and legal liabilities.

Upon completion of the Preliminary Education Component, VEE, FAP and ACP, the candidate will obtain the title of Associate of the SOA (ASA).

5. Specialty Tracks for Fellowship Courses 

Upper-level exam topics for the FSA designation include plan design, risk classification, enterprise risk management, ratemaking and valuation. Three fellowship exams are taken in one of six specialization tracks chosen by the candidate – Finance & Enterprise Risk Management, Investments, Individual Life Insurance & Annuities, Retirement Benefits, Group & Health Insurance, or General Insurance.

To proceed from Associate to Fellow in the SOA, specific exams and modules have to be completed from one of the following specialty tracks:

• Corporate Finance and ERM (CFE)
• Quantitative Finance and Investment (QFI)
• Individual Life and Annuities
• Retirement Benefits
• Group and Health
• General Insurance

6. Decision Making and Communication (DMAC) Module

E-learning module on written and oral communication skills and decision making skills, applied in solving business problems.

7. Fellowship Admissions Course (FAC)

Final fellowship course consisting of lectures, case studies and presentations to increase awareness in professional ethical and malpractice issues, encourage problem-solving from different perspectives and facilitate coaching in oral communications.

Upon completion of all of the above, the candidate will obtain the title of Fellow of the SOA (FSA).

The Pathway to Become a Qualified Professional Actuary through the Institute and Faculty of Actuaries UK

What is the Institute and Faculty of Actuaries (IFoA), UK?

As a professional body the Institute and Faculty of Actuaries (IFoA) has a responsibility to ensure that the curriculum is relevant, up-to-date and reflects the skills, knowledge and attributes required of actuaries in an ever-changing global business environment. At the same time the IFoA, as a full member of the International Actuarial Association (IAA), must ensure that its curriculum reflects the international standards set by them. This we have done by ensuring that the core subjects align themselves to the agreed 2017 IAA syllabus.

To become an Associate member you need to complete the following:

• Core Principles subjects (CS1-2, CM1-2 and CB1-3) either by examination or exemption
• Core Practices subjects (CP1, CP2 and CP3) either by examination or exemption
• Personal and Professional Development (PPD) – A minimum of 2 years of PPD
• Professional Skills Course (PSC)
• Online Professional Awareness Test (OPAT)

To qualify as a Fellow you need to complete the following:

• Core Principles subjects (CS1-2, CM1-2 and CB1-3) either by examination or exemption
• Core Practices subjects (CP1, CP2 and CP3) either by examination or exemption
• Two Specialist Principles (SP1, SP2, SP4, SP5, SP6, SP7, SP8 and SP9) subjects either by examination or exemption
• One Specialist Advanced (SA1, SA2, SA3, SA4 and SA7) subject by examination or dissertation
• Personal and Professional Development (PPD) A further minimum 1 year of PPD
• Professional Skills Course (if you have not yet taken this course you must do so within 12 months of becoming a Fellow)
• Online Professional Awareness Test (OPAT). Must take OPAT before taking CB3

Core Principles (7 Subjects)

General Structure

The Core Principles cover three main areas. These are:

1. Actuarial Statistics (CS)
   • Actuarial Statistics (CS1)
   • Risk Modelling & Survival Analysis (CS2)
2. Actuarial Mathematics (CM)
   • Actuarial Mathematics (CM1)
   • Financial Engineering and Loss Reserving (CM2)
3. Business (CB)
   • Business Finance (CB1)
   • Business Economics (CB2)
   • Business Management (CB3) – Pre-requisite in OPAT

Within each area there are a number of subjects shown opposite. The Core Principles therefore comprises seven subjects.

Assessments for Core Principles

All Core Principle subjects will be assessed. Actuarial Statistics and Actuarial Mathematics have two elements of assessment. For each subject there will be a 3 hours 15 minutes written paper and a 1 hour 45 minutes problem-based assessment. For these subjects both elements of assessment must be taken at the same examination sitting. The two papers will be weighted (70% for the written paper and 30% for the problem based assessment). A single aggregate mark will then be calculated. Failure to reach the overall pass mark will require both elements of assessment to be retaken. The problem-based assessments will be computer based and taken at home or in your office.

Core Practices (5 Papers)

The Core Practices cover three areas. These are:

1. Actuarial Practice (CP1)
2. Modelling Practice (CP2)
3. Communications Practice (CP3)

Assessments for Core Practices

All three will be assessed using written and computer-based examinations. For CP1 and CP2 there will be two elements of assessment for each subject. Each assessment carries equal weighting. A single aggregate mark will then be calculated. Failure to reach the overall pass mark will require both elements of assessments to be retaken. For CP3 there will be a single paper.

Specialist Principles (Choose 2 out of 9)

The Specialist Principles (SP) subjects require individuals to demonstrate an understanding of the concepts of specific specialist areas. Each subject will be assessed using a 3 hours and 15 minutes paper-based examination. These will be taken in an examination centre. Those who have obtained an alternative qualification have the option of applying for SP0.

This is normally through a Level 7, Master’s Thesis in an actuarially relevant subject. The Specialist Principle subjects are:

• SP0: Master’s Level Thesis
• SP1: Health and Care
• SP2: Life Insurance
• SP4: Pensions
• SP5: Investment and Finance
• SP6: Financial Derivatives
• SP7: General Insurance: Reserving
• SP8: General Insurance Pricing
• SP9: Enterprise Risk Management

Two of these SP subjects have to be passed to be eligible to qualify as a Fellow. You do not need to take any SP subjects to qualify as an Associate.

Specialist Advanced (Choose 1 out of 7)

The Specialist Advanced (SA) subjects require individuals to apply specific knowledge and principles of actuarial practice to the provision of specific practice areas.

Subjects SA1 – SA7 will be assessed using a 3 hours and 15 minutes paper-based examination. These will be taken in an examination centre. Those who are planning to undertake some original research on an actuarial topic can apply to take the SA0 route. The research should be at MPhil or PHD level and is likely to require at least 2 years of study. The IFoA must be involved from the start of the project and agree the objectives of the research.

The Specialist Principle subjects are:

• SA0: Research Master’s Thesis
• SA1: Health and Care
• SA2: Life Insurance
• SA3: General Insurance
• SA4: Pensions
• SA7: Investment and Finance

One of these subjects has to be passed to be eligible to qualify as a Fellow. You do not need to take any SA subjects to qualify as an Associate.

Actuaries’ Code

Throughout their career as an actuary, individuals are expected to act within the framework of the Actuaries’ Code. The principles of which are:

• Integrity – Members will act honestly and with the highest standards of integrity. Competence and Care – Members will perform their professional duties competently and with care.
• Impartiality – Members will not allow bias, conflicts of interest, or the undue influence of others to override their professional judgement.
• Compliance  – Members will comply with all relevant, legal, regulatory and professional requirements, take reasonable steps to ensure they are not placed in a position where they are unable to comply and will challenge non-compliance by others.
• Communication – Members will communicate effectively and meet all applicable reporting standards.

To help members develop their understanding of how to apply this code in practice, the IFoA has developed different stages which need to be completed. For students these are:

Stage 1: Online Professional Awareness Test (OPAT) This is a 90 minute, mainly knowledge based, multiple choice online exam, which it is recommended you sit within your first year of membership. This must be sat and passed before applying to sit CB3.

Stage 2: Professional Skills Course (PSC) This is an online course which continues the development of professionalism through case-study discussion. These discussions explore the concepts of professionalism and business ethics. They also provide an opportunity to demonstrate judgement and decision making to resolve issues. The PSC must be completed in order to qualify at either the Associate or Fellow

Personal and Professional Development (PPD)

As part of the journey to become a qualified member of the IFoA, an individual needs to demonstrate they have the relevant skills and experience within a work environment. To do this, the IFoA requires PPD to be completed in addition to the examinations and professionalism requirements.

The PPD requirement includes three categories, subdivided into key competencies, which will carry a credit value. All credits will be recorded online and there will be a minimum annual requirement for each qualification route.

The PPD requirement will align with the CPD scheme which all members need to adhere to when qualified. The three key categories of PPD are:

1. Effective Communications
2. Problem Solving and Decision Making
3. Professionalism

PPD was introduced in September 2017 and replaces Work Based Skills (WBS). There is also a requirement to complete 2hrs of formal learning each year

Actuarial Society of Malaysia (ASM) – Persatuan Aktuari Malaysia

Membership Classes (To become a member of Actuarial Society of Malaysia)

There are four membership classes under the ASM:

1. Fellow
2. Associate
3. Ordinary
4. Student

The requirements for each class are as follows:

Fellow

To join, professionals must be a Fellow of one of the following bodies:

• Society of Actuaries (USA)
• Casualty Actuarial Society (USA)
• Faculty and Institute of Actuaries (UK)
• Institute of Actuaries of Australia (Australia)
• Canadian Institute of Actuaries (Canada)
  • Recommended by 2 Fellow members of the Society
  • Resident in Malaysia or deemed to be familiar with Malaysian conditions
  • At least 1 year’s experience in the Malaysian actuarial industry

Associate

To join, professionals must be an Associate of one of the following bodies:

• Society of Actuaries (USA)
• Casualty Actuarial Society (USA)
• Faculty and Institute of Actuaries (UK)
• Institute of Actuaries of Australia (Australia)
• Canadian Institute of Actuaries (Canada)

OR

– Passed examinations of any professional actuarial bodies to be recognized as Fellow, which is
deemed to be at least equivalent to the examination requirements to become an Associate of the
above actuarial bodies.

Ordinary

– Satisfies one of the following:

• Ordinary member of a professional actuarial body; OR
• Passed at least 1 part/subject of the examinations of a professional actuarial body which has no class of Ordinary membership and is continuing to study for other examinations of the actuarial body; OR
• Completed an actuarial course or other related statistical course in a university, college  or other academic institute and has achieved a qualification thereof; OR
• Carrying out actuarial or other related work in a life or non-life insurance company, government office or actuarial consulting office.

– Nominated by 2 members of the Society

Student

• Nominated by 2 persons delegated by the Vice Chancellor of the university
• Does not meet the requirements for admission as Fellow, Associate or Ordinary member; OR meets       the requirements but is not gainfully employed and chooses to seek Student membership
• Has a declared interest in actuarial matters
• Undergraduate/postgraduate student in an actuarial-related program