It takes an average of eight years to draft an actuary
Of the 2.1 million people employed in South Africa’s formal financial sector in the third quarter of last year*, actuaries represented less than 0.1%. This is because there are fewer than 2,000 actuaries in South Africa, most of whom are members of the Actuarial Society of South Africa (ASSA).
An actuary is either an associate member of ASSA (AMASSA) or a member of ASSA (FASSA). Student members and technical members are not actuaries and may not use this title.
In an environment where demand for actuarial skills significantly outstrips supply, the unemployment rate for South African actuaries is zero, according to Mike McDougall, CEO of ASSA. The deficit in South Africa is exacerbated by the emigration of actuaries to countries seeking to meet their own growing needs. ASSA’s membership statistics show that some 25 South African actuaries took jobs outside of South Africa last year.
McDougall says the demand for actuaries is not unique to South Africa. For example, the US Bureau of Labor Statistics** forecasts a 24% growth in US actuary employment from 2020 to 2030, far exceeding growth expectations for all other occupations.
South Africa is nevertheless one of the countries with a high number of actuaries, with the United States (US) and the United Kingdom (UK) being the only countries in the world with more than 10,000 actuaries. ASSA is one of the 10 largest actuarial associations in the world and the largest on the African continent.
McDougall explains that the actuarial qualification is one of the most difficult to achieve, both in South Africa and abroad. In 2010, ASSA introduced a homegrown actuarial qualification, which meant that actuaries no longer had to go to the UK for their actuarial qualification.
Approved by the International Actuarial Association (IAA) as a primary qualification, the South African qualification is just as difficult to obtain as those offered by professional bodies in other countries, McDougall adds. He explains that once a student member has graduated from university with a degree in Actuarial Science, it takes a minimum of three years to complete the additional requirements to become a Fellow of the Actuarial Society of South Africa (FASSA).
However, most student members take at least eight years to pass the required 13 technical skills exams and complete the required on-the-job learning under the supervision of a mentor.
Transforming the profession
While a consistent focus on transforming the South African actuarial profession produces results, progress is painfully slow as it takes nearly a decade to produce an actuary.
Actuarial Association of South Africa Membership Figures – Fellows
| Year | white | black african | Coloured, Indian, Asian | Total | Male | Female |
| 2006 | 628 | 28 | 23 | 679 | 588 | 91 |
| 2016 | 1149 | 82 | 157 | 1417 | 1095 | 322 |
| 2019 | 1228 | 113 | 245 | 1586 | 1198 | 388 |
| 2022 | 1 315 | 142 | 293 | 1754 | 1289 | 465 |
In 1998, only 2.2% of Fellows were African, Colored and Indian. Now, 24 years later, this has risen to 25%, meaning the number of African, Colored and Indian Fellows is growing at an annual rate of 20%. By way of comparison, the total number of Fellows is growing at an average of 6% per year. While we recognize that the transformation of our profession is slow, we are encouraged that the Society’s many transformation initiatives are beginning to make a difference.
Students who come from disadvantaged backgrounds and who were not raised with English as their first language face significant hurdles in their path to achieving Fellowship.
The journey to become an ASSA Fellow Member consists of several stages:
- Student members are expected to pass three basic exams and four basic technical skills exams and complete basic professionalism training to earn the Technical Member of ASSA (TASSA) designation.
- A TASSA becomes an Associate Member of ASSA (AMASSA), also known as a Generalist Actuary, upon completion of the remaining general skills exams, further training in professionalism and business skills, and two years of work experience.
- To qualify as Fellow Member of ASSA (FASSA), which is the top qualification, members choose a primary and secondary area of specialization. They must pass another series of technical proficiency exams and further professionalization training and undergo another year of hands-on learning. Members who choose risk management as their secondary specialization are also awarded the Chartered Enterprise Risk Actuary (CERA) title.
The table below summarizes the demographics of each of the four ASSA membership categories:
| black | Indonesian | colored | white | Asian & Oriental | |
| Student | 47% | 15% | 3% | 33% | 1% |
| Technical (TASSA) | 26% | 18% | 5% | 48% | 3% |
| Employee (AMASSA) | 16% | 17% | 3% | 60% | 3% |
| Employee (FASSA) | 8% | 13% | 2% | 75% | 2% |
Strong pipeline of potential actuaries
Looking at the pipeline of potential actuaries, the number of black African student members and technical members will likely exceed the number of white members on track to become actuaries next year.
Actuarial Association of South Africa Membership Figures – Pipeline (Associate, Technical and Student Members)
| Year | white | black african | Coloured, Indian, Asian | Total | Male | Female |
| 2013 | 1054 | 463 | 371 | 1888 | 1308 | 580 |
| 2016 | 1090 | 971 | 484 | 2629 | 1802 | 827 |
| 2019 | 1130 | 1075 | 589 | 2767 | 1840 | 927 |
| 2022 | 1191 | 1056 | 637 | 2897 | 1855 | 1042 |
With the aim of helping students who are struggling students achieve their qualifications, the Actuarial Society Academy was established in 2016. The Academy provides working student members with both educational support and soft skills training, such as communicating in a business environment, reconciling work and study, and coping with the demands of the workplace.
Mike McDougall is CEO of the Actuarial Society of South Africa.