Why More Businesses Are Choosing This Smarter Solution

Discover the advantages of outsourced actuarial services in Malaysia. Learn how businesses benefit from cost savings, expertise, compliance, and scalability.

Introduction

Actuarial services play a critical role in today’s business world, especially for industries like insurance, finance, employee benefits, and investment planning. But building a full-fledged in-house actuarial team can be costly and time-consuming—particularly for startups, SMEs, and even large companies trying to stay lean. This is where outsourced actuarial services in Malaysia come into play.

With Malaysia emerging as a regional hub for actuarial talent, more companies are turning to third-party specialists to access world-class expertise without the overhead of hiring full-time staff. This article explores why outsourcing actuarial functions is a smart move, what services are available, how it benefits businesses, and how to get started.

1. What Are Outsourced Actuarial Services?

Outsourced actuarial services involve partnering with external actuarial firms or consultants to manage specialized functions such as:

• Risk modelling and financial forecasting

• Insurance product pricing

• Pension and employee benefit valuations

• Reserving and regulatory reporting

• Capital modelling and solvency analysis

Instead of building in-house capabilities, companies rely on these experts to deliver on-demand actuarial insights, often at a fraction of the cost.

2. Why Businesses in Malaysia Are Outsourcing Actuarial Services

The Malaysian corporate environment is increasingly leaning towards outsourcing for agility, cost-effectiveness, and scalability. Actuarial work, being complex and highly specialized, is ideal for outsourcing.

Key Reasons for Outsourcing:

• Cost Savings: Avoid high fixed salaries and employee benefits.

• Access to Expertise: Tap into a team of qualified actuaries with diverse industry experience.

• Regulatory Compliance: Stay up-to-date with Bank Negara Malaysia (BNM), MFRS 119, IFRS 17, and other compliance standards.

• Speed and Efficiency: Complete actuarial projects faster with established methodologies and automation tools.

• Scalability: Add or reduce actuarial support based on project needs.

3. Services Offered by Outsourced Actuarial Firms in Malaysia

Actuarial outsourcing in Malaysia covers a wide spectrum of services. These can be custom-tailored to fit the needs of insurance companies, pension funds, multinational corporations, and SMEs.

Common Services Include:

• Life & General Insurance Actuarial Valuation

• Takaful & Re-Takaful Consulting

• Pension Valuations under MFRS 119 or MPERS 28

• Financial Modelling & Forecasting

• Asset Liability Modelling (ALM)

• Product Development & Pricing

• Solvency II and Risk-Based Capital (RBC) Modelling

• Actuarial Support for IFRS 17 Reporting

Companies like Actomate, Nicholas Actuarial Solutions, and Milliman Malaysia are known for offering full-spectrum actuarial outsourcing solutions in the region.

4. Benefits of Outsourced Actuarial Services in Malaysia

Let’s look at how outsourcing actuarial work helps businesses grow smarter, not harder.

a. Cost Efficiency

Instead of maintaining an expensive internal team, you pay only for the services or projects needed. This is especially beneficial for companies with seasonal or project-based actuarial requirements.

b. Higher Accuracy and Risk Control

Outsourced teams use advanced modelling tools, simulations, and software (like Prophet, R, Python, SAS), improving the accuracy and robustness of forecasts and risk analysis.

c. Faster Turnaround Time

Actuarial firms in Malaysia are known for delivering high-quality work quickly. Many operate with streamlined systems to produce results in days rather than weeks.

d. Regulatory Confidence

A major concern in Malaysia’s financial and insurance sector is staying compliant with complex regulations. Outsourced firms help ensure your valuations and reports meet BNM and international standards.

e. Flexibility and Focus

Internal teams can focus on core business operations, strategy, and customer engagement by outsourcing complex actuarial tasks.

5. Choosing the Right Actuarial Partner in Malaysia

Not all actuarial outsourcing firms are equal. Here’s what to consider when selecting one:

a. Qualifications & Certifications

Ensure the firm has qualified actuaries—look for credentials like FIA (UK), FSA (US), FASM (Malaysia), or FIAA (Australia).

b. Industry Experience

Choose a firm that has experience in your specific sector (e.g., life insurance, takaful, pensions, healthcare).

c. Compliance Knowledge

Your partner should be well-versed in Malaysian regulations, including BNM, MFRS, and tax guidelines.

d. Technology & Tools

Ensure they use modern actuarial software and are proficient in automation and data analytics.

e. Communication & Reporting

Look for firms that provide clear, timely, and jargon-free reports. Regular updates and accessibility are a must.

Conclusion

Outsourcing actuarial services in Malaysia is no longer a cost-cutting trend—it’s a strategic necessity. With the country’s growing pool of actuarial talent and cost-efficient service providers, companies can now access world-class expertise while optimizing budgets and improving business outcomes.

Whether you’re an insurer, multinational corporation, startup, or fund manager, outsourcing allows you to scale quickly, stay compliant, and make smarter decisions based on accurate, professional analysis. It’s a win-win model for organizations that want to stay competitive in today’s risk-sensitive world.

FAQs

1. What industries in Malaysia typically outsource actuarial services?
Primarily insurance (life, general, takaful), reinsurance, pension funds, banking, healthcare providers, and large corporations with employee benefit obligations.

2. Is outsourcing actuarial services safe and confidential?
Yes. Reputable actuarial firms in Malaysia follow strict confidentiality protocols and comply with data protection laws such as Malaysia’s PDPA.

3. What is the average cost of outsourced actuarial services in Malaysia?
Pricing depends on the complexity and scope. A basic MFRS 119 valuation could cost RM 5,000–RM 10,000, while larger projects like IFRS 17 reporting or capital modelling could range from RM 20,000 to RM 100,000+.

4. Can small companies or startups benefit from actuarial outsourcing?
Absolutely. Many actuarial firms offer tailored packages for SMEs and startups, especially for employee benefits, insurance consulting, and investment risk planning.

5. How do I get started with outsourced actuarial services?
Start by identifying your actuarial needs, then reach out to a few firms for consultations and quotes. Look for those with industry experience, certified actuaries, and positive client feedback.