Economic/social factors

Extension of insurance market and non-bank financial service market caused the needs in highly qualified specialists-actuaries able to perform such typical actuarial tasks as: risk management, evaluation of contingent liabilities, reserving ratemaking, optimization of investment policy, funding costs, cash flows and improvement on this base business decision-making. Now there are 350 insurance companies in Ukraine, this number would extensionally increase as well as number of investment and pension funds.

Development of social insurance programs, namely, unemployment, occupational disability, temporary disability and, mainly, reform of pension system (the relevant laws have been approved in July 2003), which includes both obligatory and non-obligatory pension insurance, also demand specialists-actuaries for proper functioning of state and non-state pension funds on national, regional and local levels. The main conception and corresponding legislation for medical insurance is now under preparation.

Globalization of insurance/financial service markets, rapid development of international cooperation in this sphere caused the needs of specialists acquainted with European standards in their profession.

The shortage of specialists-actuaries and absence of national scheme of their certification is an obstacle in the further development of insurance and financial sector in Ukraine, because now 350 functioning insurance companies have only 44 certified actuaries, who in accordance with the law of Ukraine “On Insurance” (approved 1996, revised 2001) are eligible to prepare and sign actuarial calculations of insurance tariffs. These persons graduate from Actuarial Training Courses organized by British Institute of Actuaries in 1999, and since that time no one was eligible for this type of activity. Expert estimation is about 500 actuaries that would satisfy short term needs of Ukrainian insurance industry.

Analysis of international, first of all European experience (where the systems of actuaries certification exists for decades), consultations with EU experts show that such problems can be solved through organization of special training courses (usually under supervision of governmental structure and actuarial associations) with subsequent examination and certification procedure for persons with University diploma and experience of practical work in insurance/financial institutions.