Asia Pacific Perspectives: Working as a Consulting Actuary in Asia: Key Trends and Challenges

Leandro Ao, FIAA and Partner at KPMG relocated his family from Sydney to Hong Kong two years ago.

As a consulting actuary in Hong Kong, Leandro has gained valuable insights from working in this unique life insurance hub of the region, with its diverse markets all within a few hours' flight time.

While his professional life keeps him engaged with regional trends, his toddler and preschooler have been equally impressed by Hong Kong's distinctive double-decker vehicles and vibrant urban scenery. Despite embracing their new surroundings, the family still maintains some Australian traditions, with vegemite remaining a breakfast staple in their home.

Speaking with Actuaries Digital, Leandro shares his observations on actuarial trends within the Asian market including his clients’ priorities and challenges.

Transformation, innovation, and AI

Transformation has been the biggest topic in town given the pressure on cost and efficiency, and the ambition of the leading insurers in driving customer experience.

The Actuaries Institute and our members have been providing leading thoughts and cases on AI and digital, but I found Asia has the most potential to realise benefits at scale.

The challenge in providing a vast customer base with the right insurance solution, and pressure to modernise the back-office value chain are pushing insurers to transform and innovate.     

Through the participation in the International Actuarial Association’s AI Taskforce (thank you to the nomination from the Actuarial Society of Hong Kong), I also believed that actuaries can have a meaningful role to support these changes, given our role as a guardian to the insurance industry and policyholders.

Leandro presenting at a university career talk

Insurance as a wealth and health solution

This is the second time I’ve worked in Hong Kong, and I am amazed by the product innovation in this city that has occurred over the last decade.

For example, the new generation of saving products with multiple-currency options are serving the needs of increasing globally mobile customers and their families.

The investment universe has also been widened substantially for performance and diversification, while actuaries need to navigate the new risks emerging. 

Life insurance is also a core solution to address the wealth planning and protection needs of affluent families in Asia, using Hong Kong and Singapore as the hub.

I can also see the same for health. The design of critical illness and health insurance are being tailored to fulfill cross-border customer needs that are connected to health and lifestyle offering of the insurance policy issuing location. 

Regulatory development and public trust

The increasing penetration of insurance needs to be supported by a robust regulatory framework. I have been witnessing the go-live of Hong Kong RBC and some similar changes in other Asia jurisdictions.

The regulators are also focusing on customer communication and protection. It is quite clear to me that actuaries can provide meaningful contribution through our advice to the stakeholders, enhancing public trust in insurance.

I believe Australian actuaries should find chance to share some of the industry learnings such as members’ best financial interest duty, future of financial advice, life insurance code of practice and more.

Leandro (far right) with KPMG colleagues at the Asian Actuarial Conference 2024.

Close-knit community of Australian actuaries in the region

The opportunity to connect with a small but close-knit group of Australian actuaries in the region also excites me.

I was able to learn about each market quickly through the connections as I travel, and I am very proud that the Institute’s members are at the forefront especially on topics like data analytics, innovation and customer experience within the Asia-region.