Actuaries Recommend Innovative Solutions for Farmers and Urban Populations
As climate risks intensify, experts stress the growing need for expanding insurance coverage in Pakistan to protect both rural and urban populations from the increasing frequency of extreme weather events.
Speaking to the media, Andrew Peterson, Managing Director of the Society of Actuaries (SOA), emphasized the importance of developing new insurance products tailored to climate-related damages. He was joined by Zain Ibrahim, SOA’s Regional Director, who pointed to the recent hailstorm in Islamabad as a reminder that climate threats are not confined to rural or agricultural regions.
“People with everyday cars or solar panels also require proper insurance protection,” Ibrahim noted, highlighting the disconnect between the insurance industry and the broader population in Pakistan.
Experts pointed out that many farmers remain unaware of existing crop insurance options, and insurance providers have shown limited engagement in this space. Nonetheless, some companies in Punjab and Khyber-Pakhtunkhwa have introduced insurance solutions aimed at mitigating risks from floods and droughts—critical coverage in a country highly vulnerable to climate change. Such protection, they argue, is even more essential than traditional theft insurance.
To further develop the insurance sector, the experts stressed the need to promote actuarial education in Pakistan. Actuaries—specialists in assessing risk using mathematics, statistics, and financial theory—play a key role in designing models that help businesses and governments navigate uncertainty.
“The core responsibility of actuaries is to build and verify financial models, turning risks into strategic opportunities,” said Peterson. He encouraged Pakistani youth to consider a career in actuarial science, noting its strong global demand.
Founded in 1889, the SOA now has over 34,000 members worldwide. Its mission is to advance actuarial science and support professionals in addressing both financial and societal challenges. In Pakistan, the SOA is actively working to grow the profession by offering exam discounts, scholarships, and partnerships with universities to build awareness and capacity.
The actuarial field is gaining momentum in the country, with a 17% increase in the number of Pakistani candidates sitting for SOA exams in 2024. Currently, there are over 1,700 SOA affiliate members based in Pakistan.
Looking ahead, demand for actuaries is expected to rise significantly, especially as the Securities and Exchange Commission of Pakistan (SECP) now requires every insurance company to establish an official actuarial function, according to Ibrahim.
