Exploring Global Actuarial Opportunities

Moving abroad to pursue actuarial career opportunities might not be something you have ever considered because of personal responsibilities, tax complications or cultural differences—but it could be the right move for a number of reasons.

Actuaries on the Move

According to recent data from Statista, the United States is the largest insurance market globally by a wide margin. In 2022, the highest value of life and nonlife direct premiums was written on the U.S. market, followed by China, the United Kingdom, Germany, Japan and France. This partly explains why the United States is a popular destination for Canadian actuaries looking to move abroad. However, it is not the only destination, especially for those looking to pursue global actuarial jobs in emerging markets.

The emerging insurance markets in Asia have great potential because population is a key factor in driving insurance demand. For reference, Statistics Canada states that Canada’s population surpassed 41 million in the first quarter of 2024. Looking at Asia, as of mid-2023, China and India were leading with populations of approximately 1.42 billion each. Hong Kong, whose land mass is 9,011 times smaller than Canada’s, has a population less than ¼ of the size of Canada’s. Singapore is similar to Hong Kong in that it is a global financial center with a large population on a relatively small island. The Philippines, Vietnam and Indonesia each have larger populations than Canada.

Additionally, Asian markets have lower insurance penetration on average compared to North America. According to Global Insurance Report 2023: Reimagining Life Insurance from McKinsey & Company, in the full year 2020, the ratio of sum assured for life insurance to gross domestic product (GDP) is 251% in the United States, while Asian markets like Singapore, Taiwan and Japan have ratios of 332%, 307% and 252%, respectively. Meanwhile, India and China’s ratios are only 48% and 35%, respectively.

The McKinsey report noted: “Despite low penetration in the Asian insurance market, growth is expected as more of Asia’s population enters the consumer class and more occupy the high-net-worth and middle-income sectors of the economy. Asian consumers’ spending power is expected to grow by 20% per year (through 2030). This represents an additional $1.2 billion in consumer spending by 2030.”

Market Trends

One of the benefits of international work for Canadian actuaries is to gain a broader level of experience. This can be achieved by working in a country with multiple market changes. Asian countries are perfect examples of this. Compared to Canada, in my estimation, there is more intense competition, more regulatory changes, higher demand for more innovative products and fast economic growth. There’s also the need to stay current with global market trends such as environmental, social and governance (ESG) practices and artificial intelligence (AI).

Here are a few exciting trends in emerging insurance markets in Asia:

• According to GlobalData, the Hong Kong general insurance industry witnessed consistent growth of 5.5% in 2022 and 2023 and is forecasted to grow approximately 6% on average in the next few years.
• In India, the Insurance Regulatory and Development Authority’s “Bima Trinity” blueprint aims for universal insurance coverage by 2047. Key reforms include bundling health, life, property and accident insurance into one policy and using a unified platform for policy transactions. These changes, designed to improve customer access, await parliamentary approval in the second half of 2024.¹
• Indonesia’s insurance sector faces transformative regulations that will require higher capital, influence product offerings and revise reinsurance practices by 2028. The Financial Services Authority’s (OJK) plan to increase minimum equity requirements may force insurers to seek additional capital or consider mergers and acquisitions to comply.²
• The rapid aging of populations in the Asia Pacific region presents both alarming and favorable prospects for the reinsurance industry. A recent report from Swiss Re underscored the opportunity for life insurers to play a crucial role in addressing global retirement preparedness—the retirement savings gap is estimated to escalate to a combined US$483 trillion across major markets by 2050, up from US$106 trillion in 2022. Notably, advanced markets like Japan and the United States are anticipated to witness annual gap expansions of 2.5% and 4.7%, respectively, while emerging markets such as China and India are projected to experience faster growth rates at 7% and 10% annually.³

One Actuary’s Journey

I had the opportunity to interview Zirui Wang, FSA, FCIA, chief actuary at Manulife-Sinochem, about his experience working in China. Wang started his career journey in Canada before relocating to Shanghai.

“The way actuaries work in China is very different from Canada,” Wang said. “In China, it is a fast-growth market requiring swift adaptation—you always have to think about the next steps and be prepared for changes. You do a bit of everything compared to Canada.”

Wang further detailed the growth and outlook of the Chinese market. “From 2010 to 2021, China’s insurance market grew very fast (especially for health and critical illness products), with an annual premium growth rate of 11%,” he said.

“More recently, China’s insurance market is transitioning from a phase of fast growth to one that is more customer-focused and quality-driven. With a relatively low penetration rate in China’s insurance market, there is still a lot of growth potential. Driven by demographic trends and a growing middle class, people will seek more comprehensive insurance coverage and benefits. The future is promising.”

According to Wang, demand has been “huge,” and he noted that actuaries are key to the success of insurance companies. He further emphasized the opportunities for actuaries moving abroad, saying: “Even if you spend a year or two in Asian markets, you won’t regret it. It is a value-add to your career path.”

Opportunity for Growth

While leaving Canada for actuarial jobs in Asia may present challenges, relocating could provide professional growth opportunities. The United States remains a top destination due to its vast insurance market, but emerging markets in Asia present exciting prospects driven by larger populations and growing economies.

Actuaries can gain invaluable experience in dynamic environments, contributing to their career development. As highlighted by Wang’s journey, the potential for growth and the demand for skilled actuaries in global markets can make international experience a valuable asset.

Statements of fact and opinions expressed herein are those of the individual authors and are not necessarily those of the Society of Actuaries or the respective authors’ employers.

Copyright © 2024 by the Society of Actuaries, Chicago, Illinois.