BD to establish first national actuarial institute

Bangladesh is taking steps to set up a national actuarial institute to build a pool of qualified professionals capable of assessing and managing complex financial and insurance-related risks.

The move, led by the Insurance Development and Regulatory Authority (IDRA), seeks to enhance the country's financial resilience by ensuring proper product pricing in the insurance sector, improving risk management across industries, and boosting investor and policyholder confidence as the economy grows more sophisticated.

Actuarial science, regarded as one of the most prestigious and highly paid professions worldwide, combines mathematics, statistics, economics, and finance to assess and forecast future risks -- particularly in the insurance, banking, pension, and investment sectors.

The establishment of a local actuarial institute is expected to strengthen the country's financial stability, ensure sound pricing of insurance products, and boost confidence among investors and policyholders -- an important step as Bangladesh moves towards a more sophisticated and risk-aware financial ecosystem.

At present, Bangladesh has only a handful of qualified actuaries. Several Bangladeshi professionals work remotely for local firms from abroad due to the absence of a domestic certification system, while some Indian actuaries are employed by local insurance companies.

Although aspiring students can currently sit for international actuarial examinations through global institutions, the upcoming institute will provide structured training, local examinations, and professional accreditation, making the path to qualification more accessible.

According to officials familiar with the development, the IDRA has already drafted a proposal to establish the institute through a government ordinance.

"Once the ordinance is passed, the work of setting up the institute will begin in full swing," said an IDRA official on Thursday, requesting anonymity.

The proposed institute will design its own syllabus, conduct examinations, and confer professional qualifications.

IDRA officials said the syllabus will be aligned with international actuarial standards to ensure global recognition.

"The curriculum and reference materials are globally uniform, so there will be no controversy over content," a senior IDRA official told The Financial Express, adding that specialised committees will be formed to oversee examinations and certification.

The headquarters of the institute will be located in Dhaka, with plans to establish regional centres in major cities -- similar to the structure of the Bangladesh Institute of Management (BIM), formerly known as the Bangladesh Management Development Centre (BMDC).

Neighbouring India established its own Institute of Actuaries of India (IAI) in 2006, while Pakistan operates through an actuarial society but has yet to form a statutory national institute.

Bangladesh's existing Actuarial Society will be dissolved once the new institute is established under law.

Speaking at a recent event in Dhaka, IDRA Chairman Dr Aslam Alam said the actuarial profession plays a vital role in product design, pricing, solvency assessment, and risk modeling, particularly for insurance companies, financial institutions, and pension funds.

"Actuaries use mathematical, statistical, and economic models to assess and manage future financial risks," Dr Alam said. "Their expertise is essential not only for insurance and finance but also for pension and gratuity schemes that ensure long-term financial security."

jasimharoon@yahoo.com