Financial fortunetellers: A myth or reality?

• This article was written to commemorate International Actuaries Day, celebrated on 2 September every year

Just before the world went into pandemic mode last year, our sunny island had the privilege of an extraordinary visitor who was here on holiday. Christopher David Daykin (or Chris Daykin as he is known widely) is a British Actuary and was the head of the United Kingdom Government Actuary’s Department (GAD) for 18 years (1989 -2007).  While on holiday, he was kind enough to meet with authorities to share his thoughts and immense experience.

Daykin addressed a distinguished gathering at a meeting organised by S.R. Attygalle, Secretary to the Treasury and Ministry of Finance, where there were representatives from the Ministry of Finance, Central Bank, State banks, and financial institutions.  

In his speech, Daykin explained that an actuary is a professional who applies mathematical skills to financial, business, and social problems especially those which involve uncertain future events.  Thus, sometimes they are known as “financial fortunetellers”. He further explained that actuaries work across insurance, reinsurance, pensions, social security, corporate finance, investments, risk management, regulation, government service, education and research.

The former Government Actuary also spoke about the GAD. It dates to 1912 and it is a unique self-standing government department with many actuaries providing a wide range of services which hold significant influence on government policymaking.  The GAD contributes to formulating national policy involving long-term issues, management of public sector finance and investment, issues on risk management and insurance, projecting the impact of population changes and modelling the impact of policy decisions, to name just a few.

He stated that government organisations such as the Treasury, Department of Education, Department of Health, Department of Work and Pensions, Ministry of Defense, Department of Housing, Planning and Local Government, Department of Environment, Food and Rural Affairs, Trustees of Public service Pension Schemes in the UK would come for advice from the Government Actuary’s Department.  Additionally, he discussed some of the more unusual roles undertaken by the GAD, such as certifying randomness of the monthly National Lottery Schemes, manpower planning for public bodies and guidance to courts and tribunals, etc.

Daykin emphasised that the society would benefit from the specialist skills, which comes with integrity and objectivity in the form of advice, as Actuaries are bound by the Professional Code of Conduct.  Having identified that the Government of Sri Lanka does not have any Actuaries working in the public sector, he expressed that creating strategies to pave way for a Government Actuary’s Department in Sri Lanka would be beneficial for policymakers.

He noted there is a small actuarial community in Sri Lanka working mainly within the insurance sector, and he highlighted the advantage of beginning a dialogue that would materialise in a longer-term plans to promote this global profession in Sri Lanka

The ideas shared at the meeting are valid, relevant perhaps now more than ever with the prevailing uncertainly of these times.

(The writer has been part of the actuarial profession and has over 15 years of experience working across multiple actuarial roles.)