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Actuaries thrive under new accounting standards



Market News


Actuarial scientists say last January’s activation of the International Financial Reporting Standards (IFRS9) has created new actuarial jobs.

The Actuarial Society of Kenya (Task) said members’ contribution to financial sector development was now held highly since an expert’s opinion on individual financial histories was crucial to determining risk profiles, before determining the amount of money one can be loaned.

“IFRS9 triggered a higher provisioning for loans and this means banks need professionals who can calculate loanees’ risk profile on an anticipated default basis rather than the realised loan losses,” said Task national treasurer Ezekiel Macharia.

Task has formed a taskforce to oversee formulation of a new post-university curriculum for actuarial scientists to enjoy mentoring from Kenya’s 40 practising scientists.

He said University of Nairobi, Strathmore University and College of Insurance had been roped in as host institutions for the soon to be launched practical curriculum.

The curriculum has also received support from training institutions in Uganda, Seychelles and Tanzania and is set for rollout next year.

“We prepare long-term financial modelling plans that enable businesses to understand clients “future’ financial positioning and enable government to rollout programmes on a gradual pace that ensures value for money,” he said.