Board member for five days - strategy, team spirit and expertise are called for
Being a board member of an insurance company and making important strategic decisions - this possibility is only given to actuaries or employees working in the insurance industry after many years of professional experience and a very successful career. A faster way to take on this role - at least temporarily - is offered by the insurance simulation game "actuteam Championship". Five teams with up to five participants each manage an insurance company for five days under realistic conditions - a competition that is not only fun but also provides further training.
Using a web-based program developed by the renowned Swiss Re Institute, the five participants of a team will take on the position of a board member of a small to medium-sized insurance company and manage it under very realistic conditions and scenarios. How do I react strategically in a volatile market in order to run my insurance company successfully? What adjustments need to be made to keep my company competitive and how do I best work with my team to make quick and effective decisions? In an interview with Henning Wergen, Managing Director of EAA and Co-Vice-Chair of the Education Committee of the IAA, we talked about the advantages of such further training and the possibility to take part.
Mr Wergen, as Managing Director of the EAA you plan and organize various continuing education programs for actuaries worldwide. As Co-Vice-Chair of the Education Committee of the IAA you work together with colleagues from other international actuarial associations to promote and support uniform professional standards and the continuous education of actuaries internationally. An insurance simulation is a new type of continuing education - what exactly does it mean?
Continuing professional development of actuaries is extremely important. Especially since the economic and socio-political conditions in which they work are constantly changing. Digital transformation and issues such as Big Data or AI are also becoming professional challenges for actuaries. Individual training and professional exchange with colleagues both nationally and internationally have therefore become important for actuaries.
In addition to the classic training seminars, an insurance simulation game is a particularly effective and realistic opportunity to experience the possible consequences of strategic decisions. In the actuteam insurance simulation game, five international teams of up to five people compete against each other and try to manage a virtual insurance company with different lines of business under the currently valid Solvency II requirements. Realistic market developments will occur which require strategic action in order to lead the company successfully through the scenarios. A total of around 25 hours are scheduled for the game - a winning team will be selected at the end of the simulation.
What do the participants of the insurance simulation game learn?
During the five days of the simulation, the teams face different challenges. The players take an overarching economic view of their company and define strategies for action: among other things, risks must be mitigated or supported by capital, a corporate strategy must be defined and the business portfolio must be analyzed. Players gain a deeper understanding of various methods of risk capital management, the impact of the European supervisory regime Solvency II and the insurance business in general.
Teamwork is required throughout the game - actuaries from different companies and with different professional focuses and experience work together in a team and have to make strategic and operational business decisions together. The teams compete against each other to become the actuteam champion at the end. The insurance simulation game is all the more enjoyable because of the competition between the teams. At the end of five simulated business years, central strategy decisions of all teams are discussed and debated together: What did the other team supposedly do better or worse, how did they evaluate the market scenarios and work out solutions and what were the consequences of the decisions? I think one of the great advantages of such a digital, interactive training format - also in comparison to conventional seminars - is that "learning by doing" gives participants the opportunity to put their theoretical knowledge directly into practice - even though the companies are simulated here.
For whom is the insurance simulation game suitable and how can I participate if I am interested?
In general, the simulation game is suitable for a broad target group - actuaries, trainees, students, risk managers and all professional groups working in risk assessment or in the field of Solvency II are welcome to participate.
Four of the five teams are already in place for the simulation game in September (September 6 to 10, 2021). There will be one team from the German Association of Actuaries (DAV), the Swiss Association of Actuaries (SAV), the ASTIN Section of the IAA and the French Institute of Actuaries (Institut des Actuaires). The European Actuarial Academy (EAA) will form the fifth team and offers the only opportunity for individual participation. If you would like to join the EAA team, you can book your place for a fee via the EAA website. There you will also find all further relevant information about the insurance simulation game. We are looking forward to a diverse team and an exciting game in September.
Further information on the EAA can be found here: www.actuarial-academy.com