Actuarial Services Eye Growing Indian Demand
The Society of Actuaries has evinced interest in expanding its India footprint barely a month after WNS and ARM announced a strategic tie-up
India appears to be gaining momentum as a location for actuarial service with many global majors eyeing the growing market where enterprises are looking for strategies that the post-Covid-19 world has thrown up. The latest to evince interest is the Society of Actuaries (SoA), which wants to engage with more companies in India that provide these services.
The world’s largest actuarial association may have received a nudge towards India based on their own clients that have large offshoring arrangements in the country. A recent market research by Facts and Factors said the global insurance outsourcing business is expected to grow by 8.8% CAGR and be worth $9.8 billion by 2028.
India’s insurance market presents a good lure
A report published by the ET quoted SoA board member Dave Ingram to suggest that members of the association in the United States having large offshoring arrangements in India were now seeking an increased presence to support the education and credentialing of the staff in India. In September, WNS Limited, a leading provider of global Business Process Management solutions, had tied up with Actuarial Risk Management, Ltd. (ARM), a U.S.-based consultancy specializing in comprehensive actuarial and modeling services.
On its part, the SoA has been keeping a keen eye on the actuarial offshoring business which has seen a sizable growth over the past two to three years. It is this growth that has generated interest, given that it opens up specific opportunities for the association to bring its globally proven credentialing process into the country.
Partnerships could be the way forward
In fact, the SoA hadn’t been very active in India all these years after the country opened up its insurance sector to private players more than two decades ago. Currently, they are seeking to collaborate with the Institute of Actuaries of India as an initial means to enter the highly lucrative market, given the global as well as local business growth.
The association considers two distinct approaches for operating in India that includes the domestic actuarial market as well as the offshoring business. However, it would make more sense for SoA to operate in the offshoring market, given that it provides a globally recognized credential and association education.
This is where they may be looking at working closely with the Institute of Actuaries in India to make the industry aware of new and emerging risks and the process of managing them in the post-Covid world.
As for the other partnership between WNS and ARM, it plans to offer the former’s offshore-centric actuarial services and end-to-end insurance capabilities including front, middle, and back-office solutions. WNS will leverage ARM’s 250 senior-level credentialed actuaries to provide its BPM clients with complimentary, project-based strategic advisory services.
