China Association of Actuaries

Actuarial Practice in China

Jiangang He, FSA, FCIA
19th Asian Actuarial Conference
November 5th,2015

01

Introduction to China Association of Actuaries

Roles and Responsibilities

Establishing professional standards, code of conducts

Organizing qualification exams, training and CPD

Educating, supervising and inspecting members
professional ethics and regulatory compliance

China Association of
Actuaries (CAA)
established on
November 30, 2007.

Practice sharing, carrying out researches and studies

Coordinating internal and external relationships

International communication and cooperation

China Association of Actuaries

01

Introduction to China Association ofActuaries

The 16th China Actuarial Conference

Held in Beijing on 22nd ,23rd

September 2015
Around 1,000 attendees, including
delegates from IAA, SOA, CAS, AAA,
IFoA etc.
Conference app is used
Hot topics: C-ROSS, Internet and Big
Data, Pricing deregulation,
Investment deregulation.

China Association of Actuaries

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Development of Regulations

Marketsation on Front-end
Reformation on asset
management
Remove restrictions on
available investment
instruments
Remove the proportion
limitations of investment
categories

Motor Insurance
Deregulation(2015)

China Association of Actuaries

Pricing deregulation on
life products
Traditional life2013
Universal life 2015
Deregulating
front-end

Participating life2015

Prior Approval
to Filing
Afterward

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1

Development of Regulations

Strengthen Back-end: C-ROSS

2

One Principle - Risk Oriented

- Measure risks using quantitative and
scientific methodology

Two Objectives

Build a new system targeting:

- Globally comparable
- Emerging Market Features

Three Pillars under C-ROSS framework

- Pillar One: Quantitative capital requirement
- Pillar Two: Qualitative regulatory requirement
- Pillar Three: Market discipline mechanism

China Association of Actuaries

02

Development of Regulations

Emerging Market Features

C-ROSS
Rapid growth

Industrial
policies
changes
quickly

Immature
market

Emerging
Market
Low risk
management
capabilities

Data issues
Lack of
expertise

China Association of Actuaries

Standard approach, no internal model

requirements, lower implementation costs,
easier to regulate.
Covering both quantitative and qualitative
measurements, operational risk is assessed
under Pillar II.

Assessment of risk management

capabilities led by regulator is appropriate
for emerging market

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Development of Regulations

Timeline and Framework

Fully
Implementation

Transitional
Implementation
Technical
standards

Conceptual
Framework
Review and
Research

Overall
Planing

Where to go
How to go
How long

Mar 2012

C-SI self-evaluation
C-SI vs. RBC vs. SII
Research of Emerging
Market Solvency Regimes

Oct 2012

China Association of Actuaries

May 2013

9
3
3
1
1

Effective

Transitional
Arrangements

standards for Pillar I

standards for Pillar II
standards for Pillar III
standard for insurance group
standard for reporting

Dec 2014

Feb 2015

03

Looking into future

21st ACC in 2017

Welcome to China!

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China Association of Actuaries