Strategy Day The Actuarial Society of Hong Kong Council 27 May 2015

2 Purpose Enhanced understanding of our current status, and that of similar professional bodies Discussion of the expected environment for actuaries in 2020 The ASHK’s status within this environment in 2020 Outcome: vision for ASHK 2020 Not an outcome: a plan for how to get there

3 Rules Lots of discussion, not much presentation The more ideas the better IGNORE IMPLEMENTATION PRACTICALITIES COMPLETELY Special Projects Committee members manage the day, act as “agents provocateurs” to challenge ideas Council members brainstorm & discuss Write everything up on the flip charts (we will summarise them later)

4 Agenda (1) 9:00amIntroduction 9:05amCurrent status & profile: ASHK & similar bodies History & current profile of the ASHK Profile of the SoA, I&FoA, Australia Profile of HKICPA & HK Law Society 10:00amBreak 10:30amEnvironment for actuaries in HK in 2020 A: Regulatory requirements & types of work B. HK industry requirements & exports / imports C. Overall expected demand for actuaries 12:30pmLunch

5 Agenda (2) 2:00pmThe ASHK in 2020 Part 1:Status, Scope, Host Country, Membership Part 2: Admission, Maintenance, Standards & Guidance 3:30amBreak 4:00pmThe ASHK in 2020 Part 3: Governance, Operations 4:30pm“ASHK 2020: What I hope for” – anonymous polling 5:00pmFinish

6 About the Actuarial Society of Hong Kong The Hong Kong actuarial profession body was formed in 1968 as the Actuarial Association of Hong Kong (AAHK) Its successor, the Actuarial Society of Hong Kong (ASHK) was duly incorporated in January 1994 The ASHK became an affiliated member of the International Actuarial Association (IAA) in 1971 and a full member in 1999 The ASHK is governed by an elected Council and provide guidance to it members by setting Professional Standards and Actuarial Guidance Notes First life insurance seminar in Hong Kong held in 1979 Hosted EAAC in Hong Kong in 1990s and 2011

7 Actuarial Society of Hong Kong – Mission To increase the value to the community of the actuarial profession To encourage the study of actuarial science To uphold standards of professional conduct To regulate the practice by its members To discuss and comment on the actuarial aspects of public, social and economic topics To consider the actuarial aspects of legislation

8 Membership of the ASHK 1968: 12 members (Ordinary and Associate) 1984: 68 members (54 Ordinary and 14 Associate) 1994: 231 members (81 Fellows, 97 Associates, 53 Students) 2004: 498 members (245 Fellows, 110 Associates, 143 Students) 2014: 1055 members (664 Fellows, 145 Associates, 246 Students) Average growth rate of around 6% per year in the last 15 years.

9 Membership of the ASHK

10 Membership of the ASHK

11 Membership of the ASHK

12 Session A, Group 1 HK regulatory requirements for actuaries in 2020 Insurance & pensions Who will the regulators be? –HK only, or overseas regulators too? –Power / influence vs now: lower, same, higher? What will be the main regulations? –What will be new? –Which ones will change (strengthen / weaken)? What will actuaries’ roles be with respect to the regulations? –Level of responsibility / complexity vs now: lower, same, higher?

13 Session A, Group 2 Types of work done by HK actuaries in 2020 Insurance –Will the types of tasks change? –Will the areas of work change, eg health insurance? –Amount of work for actuaries: lower, same, higher? Pensions – same questions as above What % will be outside of insurance & pensions? What % of actuaries will work on HK work vs non-HK work? –What will drive non-HK work? –Can the ASHK influence this in some way?

14 Session B, Group 1 HK economy & industries in 2020 How much bigger will the HK economy be (GDP)? –What influence will Mainland China have on this? –Could there be a crash? Insurance –How big could the HK insurance industry become? –How big could Asia-Pacific regional offices become? –Will there be a lot of consolidation in the market? Pensions –How much will the demand for pensions rise?

15 Session B, Group 2 Overseas actuaries in HK / HK actuaries overseas in 2020 Do we expect many overseas actuaries to come to HK? –Will anything make them leave other places? –Will anything encourage them to come to HK / block them from going elsewhere? Do we expect many HK actuaries to go overseas? –Will anything make them leave? –Will anything encourage them to go elsewhere?

16 Session C, Groups 1 & 2 Overall demand for HK actuaries / actuaries in HK in 2020 Note: the ASHK will cover actuaries in HK + HK actuaries overseas How many actuaries (Fellows +Students) do we expect in 2020? –In HK –HK actuaries overseas How many actuaries will we need to go through universities each year? How many actuaries will we need to import into HK from overseas? Will these actuaries have more / same / less demanding responsibilities than now?

17 Lunch

18 The ASHK in 2020: Part 1 Complete the “ASHK 2020” grid, for: –Status –Scope –Host country environment –Membership Polling questions used as prompts –Go to:

19 The ASHK in 2020: Part 2 Complete the “ASHK 2020” grid, for: –Admission requirements –Maintenance of qualification Polling questions used as prompts –Go to:

20 The ASHK in 2020: Part 3 Complete the “ASHK 2020” grid, for: –Governance –Operations Polling questions used as prompts –Go to:

21 Wrap Up Wrap-up polling – free-form responses: –“ASHK 2020: What I hope we will become” –“ASHK 2020: What I think could most hold us back” –“ASHK 2020: My personal commitment” Go to: