Macro-economic factors such as growth of the insurance sector in emerging economies, increased regulatory requirements and complexity of insurance products is creating huge demand for actuaries, especially in emerging markets.
Whist demand continues unabated, supply doesn't seem to be keeping up. Whilst the number of aspirant student actuaries continue to rise, the required numbers are not getting through qualifications quickly enough.
This paper explores the viability of South Africa as a destination for high end actuarial knowledge based outsourcing.
South Africa has a highly qualified actuarial workforce with a vibrant first world financial services industry. In 2011, South Africa had 751 qualified actuaries, with more than 90% obtaining a UK qualification. Apart from regulatory developments which will increase actuarial demand, South Africa's insurance market is saturated with the highest penetration of insurance products per GDP in the world. Unlike India, South AFrican insurance markets are not growing as rapidly and hence demand for actuaries is stable.
If potential risks of outsourcing are appropriately managed, and if Cape Town is the chosen destination either for outsourcing or setting up a captive actuarial outsource function, then it certainly is worth exploring this country.
The South African Government also offers some attractive cash incentives for establishing operations in the country.
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