For the year ending 31 December 2022, a total of $18.3bn in premiums (excluding reinsurance) was received by the life industry in Australia (source: APR's quarterly performance statistics).
While a long-standing and stable institution in the Australian financial services sector, the life insurance industry is constantly evolving through changes in legislation, regulation, financial reporting, and mergers and acquisitions activity. Nonetheless, what is certain is that there will always be a customer need for life insurance products.
While there continues to be life insurance companies operating in Australia, life actuaries will play an integral role in designing sustainable products that meet customer needs and in the successful running of the business.
The Life Insurance Applications (LIA) subject, which is essentially the capstone course covering how life insurance operates in Australia, will be available as a microcredential from Semester 2, 2023.
Benefits
A microcredential in life insurance may appeal to actuaries working in the life sector who are seeking to up-skill or prepare for promotion. Similarly, it will be invaluable for those seeking to build their expertise in the Australian life industry, perhaps having changed industries, returned after working overseas, or returned from a career break. Further, it can provide a bridge for Fellows qualifying through the Data Science Applications stream who want to build a career in the life insurance sector.
This course is a one-stop shop that covers current issues in the life industry, interpretation and applications of the latest prudential and professional standards and reporting under the new accounting standard, AASB-17 (the Australian equivalent of IFRS-17).
This new accounting standard came into effect on 1 January 2023 and is followed by a change in prudential standards from 1 July 2023. Practicing actuaries studying this microcredential benefit from being taught about these major changes in the life industry from a foundation basis. No prior knowledge of IFRS-17 is required.
Feedback that we have received from some practicing actuaries is that, over time, it is easy to become focused in a particular area and lose touch with other aspects of running a life company. This microcredential gives you the opportunity to step back from your day-to-day work to think about how the jigsaw pieces of product management, valuations, risk management and business planning fit together. This may help you to move from having specialist knowledge in a particular area to considering some of the issues faced when running a life insurance company.
Student outcomes
Upon completion, you will be able to:
- Describe the commercial, legislative, regulatory, and professional environments that apply to Australian life insurers.
- Describe and apply the actuarial control cycle to product management, valuations, risk management and business planning for business sold by life insurers operating in Australia.
- Prepare components of key inputs used in, or outputs produced, as part of product management, valuations, risk management or business planning for life insurers working in Australia.
- Evaluate components of key outcomes from product management, valuations, risk management or business planning processes for life insurers operating in Australia.
- Understand how product management , valuations, risk management and business planning processes interact.
- Describe and apply the prudential requirements of actuarial advice within a life insurer operating in Australia.
Study options
A key element of the microcredential design is a tiered structure that gives you the flexibility to chooses the investment of time and type of study that meets your needs.
- If you're interested in developing your life insurance modelling skills whilst learning the latest prudential and professional standards, a more rigorous tier - one with assessment - may be more appropriate such as the professional certificate or certificate.
- If you want to refresh your knowledge of the latest prudential and professional standards but have limited time to complete professional development, you can attend tutorials and engage with the learning modules without completing assessments by course participation.
Recommended background knowledge
Studying the Life Insurance Applications subject usually requires the following prior knowledge:
- Life Insurance and Retirement Valuation subject
- Life Insurance and Retirement Product Development subject
However, individuals taking the microcredential will likely have a diverse set of skills and experience meaning you do not need to study these principles based subjects in order to complete the microcredential with assessments. If you would like a refresher in certain areas we encourage you to speak to the education team to see how we can assist you.
Microcredential syllabus
Completion
Professional certificate: Successful completion of this tier (pass result) is equivalent to the Life Insurance Applications Fellowship subject which includes an assignment and exam. Upon completion, you will receive a Life Insurance Applications Professional Certificate digital badge and up to 312 CPD points.
Certificate: Upon your successful completion of this tier (pass result for this assignment) you will receive a Life Insurance Applications Certificate digital badge and up to 182 CPD points.
Course: Upon completion of the course materials and tutorials, you can claim up to 36 CPD points.
Any hours spent reading or attending tutorials can be claimed as CPD as per the Institute's Professional Standard 1: Continued Professional Development.
Next steps
The new Life Insurance Applications microcredential will ensure you can interpret and apply the latest prudential and professional standards and reporting under the new accounting standard and expand your career options as a life actuary. It's designed so you can tailor the time and effort you invest to line up with your needs.
Want to enrol for the next course?
Check out the important dates for the next teaching period.
Have any questions?
Contact Louise Atkins, Education Director, via email louise.atkins@actuaries.asn.au