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Studying Actuarial Science: Worthless Or Worth The Wait?
Analysis in brief : What are the prospects for Zambian Actuarial Science graduates in the local market? Developments such as the creation of the Actuarial Society of Zambia as well as local employers increasingly investing in professional development schemes have raised the profile of the career. But much more needs to be done.
The question of the future prospects for Actuarial Science graduates in the Zambian market has long awaited an answer. Especially considering all it takes to become a qualified actuary. The article below outlines the stages until qualification as an actuary as well as the resources currently available to young graduates.
The Road to Qualification
In order for one to study Actuarial Science, they are required to perform exemplary in Secondary school and University foundation mathematics, which is a prerequisite throughout the course. The first year of university study mainly focuses on sharpening one’s maths skills. Going forward, students are introduced to different levels of advanced calculus, statistics and essential principles of the global financial sector.
There are six known Actuarial professional bodies globally that offer exams for Fellowship:
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Casualty Actuarial Society (CAS - United States)
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Institute and Faculty of Actuaries (IFoA - United Kingdom)
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Institute of Actuaries of India
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Society of Actuaries (SoA - United States)
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Actuarial Society of South Africa
The actuarial Science degree is offered at the University of Zambia and University of Lusaka which are not accredited under the Institute and Faculty of Actuaries (IFOA). Although Students acquire an understanding of what the Professional Exams by the IFOA comprise, they will not be able to obtain exam exemptions from the said body. The ripple effect of this is that students will spend the next four to seven years, after graduation, sitting for thirteen professional exams in order for them to obtain the Fellowship status if they so wish to. The exams range from ZMW 8,000 to ZMW 16,000, per exam, exclusive of an annual membership fee, thus proving to be costly for any average Zambian student.
This tends to demoralise more students and leave many thinking that going through 4 years of study in Zambia is worthless. However, approximately 80% of Actuarial Science graduates from the University of Zambia and University of Lusaka are offered employment in various sectors like banking, insurance, pensions and consulting. These sectors selected the new graduates as they have an understanding of the general principles in the named sectors and are capable of being fully solution-oriented in whichever field they are placed in. The benefit of this to graduates is that a number of employers will offer them opportunities to enhance their career prospects by paying for their professional exams.
The role of the Actuarial Society of Zambia
The Actuarial profession is slowly gaining visibility around the country due to the creation of the Actuarial Society of Zambia (ASZ), which was registered on the 18th of December 2008 under the Societies Act. This is the main professional body representing the actuarial profession in Zambia. The body currently has a total membership of 64 individuals, comprising 8 fellows, 3 associates, 33 students and 20 affiliates.
This professional body aims to help aspiring actuaries and students by providing:
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Comprehensive Help and Support through providing practical help, support, and career development to aspiring actuaries;
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Enhanced Professional Status by advocating for high standards of work within the Actuarial Science Profession
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A Strong Collective Voice focused on ensuring that the entity is stronger than the sum of its individual parts; and,
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Advocacy to influence stakeholders as well as the Zambian government on key policy areas.
What next?
Going forward, in order to boost the need for local Actuaries within the financial sectors in the country, it must be made mandatory by law for every practising Actuary or aspiring Actuary to obtain membership from the ASZ. This move will inspire students to pursue this degree locally as visibility of the profession grows steadily, hence making the study of Actuarial Science worth it to many.
By Chilufya Mutale : Actuarial Analyst at Gralix Actuarial Consulting
