A shortage of actuaries in Thailand's insurance industry could be aggravated after a new accounting standard and an insurance law take effect.
According to a report in The Bangkok Post, Suthiphon Thaveechaiyagarn, secretary-general of the Office of the Insurance Commission (OIC) said the preparation of the International Financial Report Standards 17 (IFRS 17) accounting standard, which is expected to be adopted in Thailand tentatively in 2022, will require professional work from actuaries both in designing and assessing insurance business models along with related infrastructure.
He added that actuaries are increasingly required to assess enterprise risk management, solvency surveillance, product pricing, and liability valuation.
Suthiphon said: "The actuarial profession is a key function in the insurance business. However, human resources within this profession in Thailand are quite limited."
Meanwhile, Society of Actuaries of Thailand (SOAT) president Pichet Jiaramaneetaweesin said the Non-Life Insurance Act, which is being amended, will require non-life products to be certified by actuaries. Currently, only life insurance products require certification.
There are 127 certified actuaries in the domestic insurance industry, with 75 fellowship members from the Society of Actuaries. Out of 127 actuaries, 76 are employed in 23 life insurance companies, while 51 are employed in 60 non-life insurance companies, said the OIC.
The OIC is promoting the role of the SOAT to support educational and professional arrangements to enhance the standards in the profession in Thailand.