Building actuarial capacity through GAIN: Q&A with Steve White

What led you to take a leading role in GAIN?

In recent years, the UNDP has recognized the importance of risk management and insurance in achieving sustainable economic growth and it sees the importance of actuarial capacity. In discussions on this need with Ken Mungan in 2021, the Milliman chairman of the board then, Ken suggested Milliman work with the UNDP to grow actuarial capacity. Ken knew I was retiring and asked if I’d be interested in working on it. I thought it would be meaningful and an area where I could contribute, see different parts of the world, and meet new and interesting people.

How do countries participate in GAIN?

The UNDP takes the lead in identifying the countries and prioritizing countries with a strong team and a need for greater actuarial capacity. Then, we connect with the local actuarial society. We also connect with other stakeholders, including insurance associations that represents the insurers, insurance companies, insurance regulators, and universities with actuarial programs. Beyond that, we might connect with the Ministry of Finance, social security programs, or other government entities.

Many of the interventions are common across countries, but others vary. Pakistan, for example, is in a little different situation, because they produce a fair number of actuaries, but most of them leave Pakistan or work as consultants with clients outside of Pakistan. So, their capacity need is to support the Pakistan insurance industry in a greater way.

Our interventions generally fall into three categories: First, supply: Are there sufficient actuaries and are the numbers growing? Second, demand: Are there opportunities for those actuaries? If you produce actuaries but they don't have jobs, that doesn't solve anything. Finally, regulatory framework: Is the regulatory environment in the country encouraging the use of actuaries within the insurers?

The interventions call for action by the stakeholders, not just from Milliman and the UNDP. Ultimately, the local stakeholders will be key to sustainable growth of the actuarial profession. In this regard, there have been some real champions at the local level within the local actuarial associations, and they tend to be very interested in providing support and working with us to help the profession grow in their country.

What types of projects have been the focus of GAIN’s work?

On the supply side, part of it is helping people that are in the process of becoming actuaries to move forward in their careers. Some of that is as basic as exam tutorials. We've also initiated mentorship programs in several countries and worked with universities. Josh Collins, a Milliman consulting actuary, was key to setting up the Actuarial Faculty Development Program to provide insight to actuarial science instructors to make university programs more relevant. And we look at job fairs or other ways to connect people to employers.

On the demand side, experienced professionals have presented webinars to communicate the value of actuaries. In Ghana, we’ve worked directly with new actuaries hired by non-life insurers.

Work with regulators varies. In Pakistan, the regulator asked us to provide a comparative overview of the regulatory framework across a number of countries. In Nepal, we supported a change to require insurers to hire actuarial analysts, with the expectation that this ultimately leads to the growth of experienced actuaries.

Countries start at different places, and in Nepal, they started with almost no actuaries. So, it’s important that countries are on a path to build capacity, because it can take time with the education and exam process.

What are highlights of your experience with GAIN?

One of the most satisfying outcomes is meeting at the end of the initial trip to discuss and develop the roadmap, or the plan to go forward. The meetings in the country are critical, and much more useful than remote interactions. For example, a recent follow-up visit in Ecuador was very productive, and we have a good plan to push a lot of initiatives forward.

It has also been gratifying to work with other Milliman employees who have been inspired by the program and participated in big ways. The program is structured to be relatively affordable for volunteers and their Milliman practices, and it relies on people who have a particular interest and the capacity to participate. Many of our volunteers come back for multiple projects. I applaud them and credit their practice leaders who give them the freedom to participate.

Joining a GAIN trip provides perspective. You realize that the local stakeholders have different challenges, including financial limitations and lack of resources that are available to them. And you also recognize they’re facing similar concerns that we have.

GAIN visits are a special experience. However, you can participate without traveling, including through mentorships, research projects, and remote presentations. These also provide opportunities to connect with people virtually.