MARCH 2014 ISSUE Pages 60• ` 20
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VOL. VI • ISSUE 3 MARCH 2014 ISSUE Pages 60• ` 20 For Private Circulation Only Palreddy Vishnuvardhan Patrick Curtin Shivank Girish Chandra Devadeep Gupta Philip Jackson Anurag Rastogi Dinesh K D Pant Pankaj Kumar Tewari FELLOWSHIIP being awarded at 2014 AGFA at the hands of M. Karunanidhi, President, IAI Neel Chheda Ajai Kumar Tripathi Joydeep Saha Raunak Jha Shamit GuptaShamit Gupta Vikash Kumar Sharma Sunayana Mahansaria Bhavna Verma March 2014 the Actuary India 2 Parasurambabu Varakavi Mehtab Khan Ramakant Malpani Ravi Balaji C O N T E N T S www.actuariesindia.org FROM THE CHIEF EDITOR • Institute and Faculty of Actuaries, UK Award Chief Editor by Sunil Sharma................................................... 4 Presentation Event by B. V. Deepak ........... 37 Sunil Sharma TH • IAI Student Event Email: [email protected] 16 GCA INTRODUCTORY ADDRESS by Prerana Sadarangani .............................. 38 by M. Karunanidhi, President, IAI, .................... 5 Editors FEATURES 16TH GCA INAUGURAL & KEY NOTE ADDRESS Kollimarla Subrahmanyam by T. S. Vijayan, Chairperson IRDA ..................... 8 Email: [email protected] 16TH GCA REPORTAGE 40 Raunak Jha Email: [email protected] 11 Puzzle Editor Effect of current Indian Economic Scenario Shilpa Mainekar use of discounting rate under Email: [email protected] AS 15 R (G sec rate) for the valuation of Employee Benefits As on 31-3-2014 • 2014 Actuarial Gala Function and Awards by Akshay Pandit Librarian (AGFA) by B. V. Deepak • Plenary Sessions Akshata Damre BUDDING ACTUARY by Neha Agarwala ....................................... 13 by Sumesh Sheth ............................................... 42 Email: [email protected] • Concurrent Sessions on Life Insurance by Aditi Goel ............................................... 17 ANNUAL SUBSCRIPTION NOTICE COUNTRY REPORTERS • Concurrent Sessions on General Insurance YEAR 2014-15_04 03 2014 ...........................................43 by Sourav Mahapatra .................................. 22 Krishen Sukdev • Concurrent Sessions on Health Care Insurance STUDENT COLUMN South Africa by Bhumika Bhatia & Swati Kwatra ......... 26 Email: [email protected] • Concurrent Sessions on Pension, Employee Benefits and Social Security 45 Frank Munro by Chitra Jaisimha ...................................... 29 Srilanka • Panel Discussion on Bancassurance Email: [email protected] by Khushwant Pahwa .................................. 32 Pranshu Maheshwari FROM THE DESK OF Indonesia Volatility Index Demystified Chairperson - 2014 AGFA & 16th GCA Organizing by Chinnaraja Pandian ...................................... 45 Email: [email protected] Group – D C Chakraborty .................................. 35 John Laurence Smith BEST ARTICLE & BEST REPORTAGE 2014 AGFA & 16TH GCA EVENTS New Zealand Awards In The Year 2013 .....................................47 Email: [email protected] 16TH GCA MEDIA COVERAGE .................................................48 Rajendra Prasad Sharma COUNTRY REPORT USA MAURITUS by Vijay Balagobin .......................... 56 Email: [email protected] CAREER CORNER Nauman Cheema 36 Oliver James Associates invites application for multiple vacancies (Actuaries) in Indonesia .......57 Pakistan • The Whizzing Math Wizards Email: [email protected] by Divya Dadlani SHILPA’S PUZZLES ..................................................................58 Andrew Leung Thailand Disclaimer : Responsibility for authenticity of the contents or opinions expressed in any material Email: [email protected] published in this Magazine is solely of its author and the Institute of Actuaries of India, any of its editors, the staff working on it or "the Actuary India" is in no way holds responsibility there for. In respect of the Vijay Balgobin advertisements, the advertisers are solely responsible for contents and legality of such advertisements and Mauritius implications of the same. Email: [email protected] The tariff rates for advertisement in the Actuary India are as under: Back Page colour ` 35,000/- Full page colour ` 30,000/- Half Page colour ` 20,000/- Kedar Mulgund Canada Your reply along with the details/art work of advertisement should be sent to [email protected] Email: [email protected] ENQUIRIES ABOUT PUBLICATION OF ARTICLES OR NEWS Please address all your enquiries with regard to the magazine by e-mail at [email protected]. Kindly do not send it to editor or any other functionaries. March 2014 Printed and Published monthly by Gururaj Nayak, Head - Operations, Institute of Actuaries of India at ACME PACKS AND PRINTS(INDIA) PRIVATE LIMITED, A Wing, Gala No. 55, Ground Floor, Virwani Industrial Estate, Vishweshwar Nagar Road, Goregaon (E), Mumbai-63. for Institute of Actuaries of India : 302, Indian Globe Chambers, For circulation to members, connected 142, Fort Street, Off D N Road, Near CST (VT) Station, Mumbai 400 001. • Tel +91 22 6784 3325 / 6784 3333 individuals and organizations only. Fax +91 22 6784 3330 • Email : [email protected] • Webside : www.actuariesindia.org the Actuary India 3 FROM THE CHIEFC EDITOR'S DESK SUNIL SHARMA [email protected] t gives me immense pleasure to highlight the Profession and the It was a great effort by the profession connect with you post 16th GCA. Conference in the News and print by learning from the past experience to I This was the 16th successive global Media and get attention of the people. contribute a bit towards meeting Vision, conference successfully conducted in Mission and Values of the Actuarial For managing the reporters from Prints India by the Institute of Actuaries of profession in India. I am very pleased and Media, the profession engaged a PR India. It was a massive event with to share that today the Indian financial agency Genesis BM which had strong representation form all across the reporters to some extent understand relationship with media reporters globe. More than 700 people attended who actuaries are, what they do and reporting in the area of Finance and the conference held in Mumbai. There how important they are for the Insurance. The invitations were sent to is always scope for improvement; management of the Insurance the reporters of all major key Print & however, I must say this was a grand companies. However, a lot more has to digital media and TV network. Over 20 success event given the challenge of be done in this direction. reporters came to attend the Global managing such a large number of conference of actuaries to cover the The current issue of Actuary India has a attendees. There was wide varieties of 16th GCA on day one and day two. A pretty good coverage of the various papers presented by Indian and separate room was set as the Press plenary and concurrent sessions. It is overseas speakers. The Event was truly conference room where media can intention of the report writers is to a global event. interact with the Key leaders in provide readers a feel of the event, Over the last few years IAI has made financial services from India and even for those who could not attend significant progress in enhancing the overseas. There were various the events. I would like to thank all the awareness about the actuarial interviews conducted by media during reporters for puting their efforts to take profession among the general public in the GCA event. notes during the seminar and put India. However, it’s just the beginning together the minutes of the proceedings. An exclusive press conference was of a long Journey and the profession arranged for reporters from TV and The financial year end is coming closer has to work more to enhance the News media to interact with Mr. TS and it’s going to be a busy season for communication. In this constantly Vijayan, Chairman, IRDA. The reporters actuarial community. Therefore, changing world, the importance of felt very pleased with IAI having given without taking too much of your time, I communication with all stakeholders them opportunity to interact with IRDA would like to sign off to spare you more cannot be overemphasized. Chairman and other key Business time to work on new products settings I would like to take this opportunity to leaders in the financial services for valuation and reporting. give an update on some of Initiatives Industry. that were taken during the 16th GCA to To laugh often and much; to win the respect of intelligent people and the affection of children; to earn the appreciation of honest critics and endure the betrayal of false friends; to appreciate beauty, to find the best in others; to leave the world a bit better, whether by a healthy child, a garden patch or a March 2014 redeemed social condition; to know even one life has breathed easier because you have lived. This is to have succeeded. - Ralph Waldo Emerson the Actuary India 4 16TH GCA INTRODUCTORY ADDRESS 16th GCA 2014 AGFA INTRODUCTORY ADDRESS by M. KARUNANIDHI - IAI, President, during the Inaugural function on [email protected] 17th February 2014 [email protected] adies and Gentleman! Good profession to continually remain Actuarial science being a science has Morning and Welcome to the relevant in the increasingly complex universal applicability. And so, L 16th GCA. social, commercial and economic ensuring that actuaries go through environment. Secondly, state of the education and training that are globally It gives me great pleasure to be speaking industries in which actuaries operate relevant