Demand for actuaries in Kenya is projected to expand following implementation of the International Financial Reporting Standard 17 (IFRS 17) that needs more professionals, the insurance regulator has said.
The global standards that went live at the start of the year to replace IFRS 4 will bring together both actuaries and accountants to ensure companies' reports and disclosures are captured accurately.
According to the International Financial Reporting Standards Foundation, IFRS 17 will recognise profit from a group of insurance contracts over the period the entity provides to cover contract services, and as the entity is released from risk.
“The demand for actuaries is expected to rise as insurance companies start implementing IFRS-17,” said MrTitus Osero, senior manager, of actuarial services at the Insurance Regulatory Authority.
Mr Osero says the number of certified actuaries by the Institute and Faculty of Actuaries (IFoA) is approximately 70 as of July 2023.
IFoA is the professional body, which represents and regulates actuaries who sit up to 13 papers to be certified.
Actuaries will play a key role in pricing of insurance contracts, risk assessment, and expected cash flows, which lies in their domain as opposed to the actual cash flows which accountants are well versed in.
According to Deloitte, insurance service revenue under IFRS 17 consists of expected (not actual) claims and expenses, the release of expected risk margins, and contractual service margin (CSM), an expected profit margin.
These are actuarial numbers but are affected by accounting topics such as currency conversion hence a need for collaboration.
