Reflections of an Appointed Actuary in GI

In November 2025 I was delighted to be invited to make a few remarks to an Institute forum for General Insurance Appointed Actuaries. I introduced them as the thoughts of a shy and retiring actuary (well, retiring anyway).

For the actuarial profession in Australia, the Appointed Actuary (AA) regime has been a great success for the profession and the industry.

 A turning point

Younger people will not know about the critical turning point with the failure of HIH in 2001. At the time, it was Australia’s biggest corporate collapse, HIH having become the second-largest insurer in Australia after buying FAI.

In the search for who to blame, there was a lot of focus on the relevant actuaries and a real threat to the reputation and credibility of the profession in this major growth area. However, it was turned into a major boost and strengthening of the professional role. Tony Coleman , then Institute president, and Estelle Pearson , as “actuary assisting” the Owen Royal Commission, led the way and after the dust had settled, the Federal Government introduced the statutory role of AA into the Insurance Act 1973 (Cth).

As the new regulatory regime was developed by APRA, the AA role took on great importance and responsibility.

The British Institute had previously suffered huge reputational damage after problems with Equitable Life, and we could see the same fate being possible for us.

Responsibility

I’m sure all our members are conscious of the responsibility that comes with taking on an AA role. For most of the time – and for some of the fortunate ones, their entire career – the job is constructive, enjoyable and rewarding.

But things can and do go wrong. Whether sudden or gradual, and for a variety of reasons, occasionally the role will be extremely challenging, not only professionally but personally. Do I really want to follow my job description and put this company out of business? What if I am wrong?

There is no set procedure for dealing with this risk. Just be conscious that your privileged life and structured professional work is not a right. You need to be okay that should the tough time come, you will be able to cope with the demands. This is a time when it is dreadful to be alone and having a network of colleagues becomes hugely valuable.

Bravery

As individuals and as a profession we need to be brave and have the courage of our convictions.

A memorable example is when the development of the Financial Condition Report (FCR) saw the scope expanded to include commentary on risk management. A number of actuaries were against this, feeling that we were not experts and were seeing legal and reputational risks.

Together, we decided to push ahead. The profession was very supportive with material on risk management that was helpful for the AA function as well as from a career perspective. In my view, this has worked out well.

We are about to see further expansion, with outsourcing and conduct risk likely to be added. My own thoughts about this are:

• Yes, there are plenty of topics on which we have neither expertise nor experience
• But we are smart people and capable of learning pretty quickly, especially with support from our employers and the profession
• Be truthful – there is no problem with saying in an FCR that you are not expert in the area, especially if you plan to learn more
• The FCR is advice to the Board on some topics that are the AA’s direct responsibility (a sign-off opinion) and some that are offering the perspectives and comments of the AA (but no sign-off implied or given).

I hope these few thoughts may help in some small way as you craft your career, and I wish for you that it is at least half as rewarding and enjoyable as mine has been.