Based on the graduate profile, the insurance industry is the largest employer of graduates. Referring to Minister of Finance Regulation No. 53/PMK.010/2012, which stipulates that the valuation of liabilities in the form of reserves for insurance companies must be carried out by a company actuary, effective as of 31 December 2014, each insurance company is consequently required to employ actuarial professionals.
Considering the wide range of products and business lines operated by insurance companies, ideally each company should employ at least five actuarial professionals for general insurance and up to ten for life insurance. With approximately 100 insurance companies, this means that at least 500–1,000 actuarial professionals, including those in conventional and Sharia insurance, were needed in 2015.
Furthermore, both conventional and Sharia insurance companies require their own actuarial professionals, which doubles the overall demand. The increasing awareness among Indonesians of the importance of insurance has contributed to the growth of the insurance industry in Indonesia. This growth will naturally lead to a greater demand for actuarial professionals. In addition, some actuarial positions are currently filled by graduates of Statistics or Mathematics programs.
The estimated demand for actuarial professionals is based on data from Statistics Indonesia (BPS), the Financial Services Authority (OJK), the Society of Actuaries of Indonesia (PAI), the Indonesian Life Insurance Association (AAJI), and the Indonesian General Insurance Association (AAUI). According to PAI, the ideal staffing requirement is four FSAI and six ASAI professionals for each life insurance company, and two FSAI and three ASAI professionals for each general insurance company.
Assuming annual insurance company growth of 5%, in line with Indonesia’s economic growth, and a 10% annual increase in demand for actuarial professionals, the latest 2015–2016 data on the number of insurance companies can be projected based on economic growth over the next five years, as shown in Table 1
Tabel 1. Demand for Actuarial Professionals