D.gantulga: A New Political Step Will Be Taken If the State Budget is Linked to Monetary Policy

Trans. by B.DULGUUN

The following is an interview with Managing Director of the Society of Actuaries of Mongolia D.Gantulga about actuary, current economic situation in Mongolia, as well as state budget and monetary policy issues.

D.Gantulga has experience in actuarial consultancy, business valuation, lead advisory, management consulting, and company management. He has led numerous professional projects and missions in the field of management consulting, assets valuations and financial planning in the local market.

Can you explain what an actuary does?

The Society of Actuaries of Mongolia was established in 2008. It's a supporting body of the International Actuary Association. Basically, actuary professionals evaluate, manage and advise on financial risks. They determine risks, predict future financial outcomes from that risk, and advise measures for minimizing the cost of that risk.

Financial and statistical models need to be used for this profession as it discusses future events. Actuaries must have a broad range of knowledge and good sense on business operations to function the model, correctly explain its effectiveness, and have the model used. Actuaries mainly work in social insurance, commercial insurance, health and investment sectors. Lately, actuaries are greatly involved in risk management of businesses. Demand for actuarial professionals is growing only in the insurance industry.

Mongolia has many insurance companies. These companies often say that they face a great deal of loss. Do many companies request insurance risk surveys?

Insurance is a unique financial business. In return for paying money, insurance companies promise to insure any potential risk. The insurer must keep this promise as long as they've taken money from the insured person or this system would be meaningless. This business is operated under the regulation and control of professional organizations. In accordance with relevant regulations, the Financial Regulatory Commission (FRC) is in charge of this role in Mongolia. The FRC regulates insurance companies to undertake annual actuarial reviews. However, these regulations are not fully practiced due to lack of professional skills and experience in the local market.

Moreover, actuaries certified by the FRC have poor professional skills. Since the Society of Actuaries was established with a NGO status in 2008, it has mainly focused on training actuarial professionals. Government participation and support is crucial...