SJER3191 INDUSTRIAL TRAINING IN

ACTUARIAL SCIENCE

AIA BHD. MALAYSIA

INSTITUTE OF MATHEMATICAL SCIENCES

FACULTY OF SCIENCE
UNIVERSITY OF MALAYA

SESSION 2014/2015

NAME : YEAP CHUN KEAT

MATRIX NO : SER120031

SUPERVISOR : DR. KHANG TSUNG FEI

COORDINATOR : DR. NG CHOUNG MIN

CONTENTS

1.0 Abstract.............................................................................................................4
2.0 Acknowledgement.............................................................................................5
3.0 Introduction.......................................................................................................6
3.1 Organization Background..............................................................................6
3.2 Organization Chart of Actuarial Department.................................................8
3.3 Overview of Actuarial Department.................................................................9
4.0 Industrial Training Report................................................................................11
4.1 Summary of Tasks.......................................................................................11
4.1.1 Empower...............................................................................................11
4.1.2 Credit Life..............................................................................................15
4.1.3 Macro Compilation................................................................................18
4.1.4 Actuarial Certificate and product approval............................................19
4.1.5 Miscellaneous Task...............................................................................20
4.2 Application of Theoretical and Practical Knowledge...................................21
4.2.1 SJEM 1130 Introduction to Computing/ SJEM2231 Structured
Programming..................................................................................................21
4.2.2 SJER 2215 Introductory Life Contingencies / SJER 3216 Further Life
Contingencies.................................................................................................22
4.2.3 SJER3218 Introduction to General Insurance......................................22
4.3 Devices /Appliances used for Executing Task.............................................23
4.3.1 Microsoft Visual FoxPro........................................................................23
4.3.2 VBA Macro............................................................................................23
4.3.3 Microsoft Excel......................................................................................24
4.3.4 Microsoft Words / Adobe Reader..........................................................24
4.4 Problems faced /Challenges.......................................................................25
4.5 Lessons Learnt from Colleagues /Supervisor.............................................26
5.0 Conclusion and Suggestion............................................................................27
6.0 Reference.......................................................................................................28
7.0 Certification.....................................................................................................29

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8.0 Appendix.........................................................................................................30

List of Tables and Figures

List of Tables:
Table 1: Details of Company...................................................................................6

List of Figures:
Figure 1: Organisation Structure of Actuarial Department……...…………………..8
Figure 2: Pricing and Product Management………………………………………….8
Figure 3: Empower Manual………………………………………………..…………11
Figure 4: List of Macro Programs....…………..………………..……………………12
Figure 5: Empower Macro for GST.…………..………………..……………………14
Figure 6: List of Macro excel’s output.………..………………..……………………14
Figure 7: Credit Life GMDT and AP Procedure……...………..……………………16
Figure 8: Monthly Journal for GMDT and AP …………………....…………………17
Figure 9: GMDT and AP Manual.....…………..………………….…………………17
Figure 10: Journal’s location for Macro Compilation....………….…………..……18
Figure 11: List of temporary excel output files....…………….……..………………19
Figure 12: Microsoft Visual Foxpro.....………..……………………..………………23
Figure 13: VBA Macro……………….......…………..………………..………………24

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1.0 ABSTRACT
One of the core courses under the Bachelor of Science (Actuarial and
Financial Mathematics) program offered by University of Malaya is SJER3191
Industrial Training in Actuarial Science. The course offers an internship at
workplace for a minimum period of 16 weeks.

The purpose of this Industrial Training is to gain some insight on actuarial

field and apply actuarial knowledge learnt in university by performing related task
It provides a good experience for students in real working life. Besides, students
are prepared to join the work force upon graduation as they have the chance to
develop their relevant soft skills.

I have undergone my internship in the placement of reinsurance and pricing

partnership team at AIA Bhd. from 13th of April 2015 until 14th August 2014. I had
been assigned on reinsurance stuff and I gained a lot of practical knowledge
related to the actuarial working field such as Visual Basic for Application (VBA),
Microsoft Visual FoxPro, Microsoft Excel and Microsoft Word. Besides working, I
have known a bunch of great people and learn lots of stuff from them. The details
of the job assigned will be presented in the following sessions.

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2.0 ACKNOWLEDGEMENT
First and foremost, I would like to take this opportunity to express a token of
appreciation to AIA Bhd. for giving me the opportunity to undergo my internship
program at Pricing Team of Actuarial Department. I was not sure of what I am
supposed to do in the future (for actuarial path) or for what purpose the courses
that we learned at University was for but after having my internship, I had a clear
picture of how insurance works and can be sure of the role of some current job
positions.

On top of that, I would like to express my earnest gratitude to my direct

supervisor, Mr. Low Wai Tzer (Oscar) for his guidance, patience, encouragement
and helpful advices on all the tasks given to me throughout this industry training.
Besides that, he also shares some of his working experience with me during his
free time. He believes in my capabilities and entrusts me some important tasks.
Whenever I face any difficulty, he is willing to spare his time to teach me and
share his valuable knowledge is very much appreciated.

Furthermore, I would like to convey my humble gratitude to all my fellow

colleagues and university staffs. Without their guidance, I would not be able to
complete this training, at some point exceed my expectation. I am grateful that I
have this training before entering the society as I gain hands-on knowledge in
actuarial science application.

Last but not least, I would like to extend my appreciation to Dr. Khang
Tsung Fei, my university supervisor for Industrial Training and Dr. Ng Choung Min,
the Industrial Training coordinator for their help and support.

Sincerely,
Yeap Chun Keat
5st August 2015

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3.0 INTRODUCTION
3.1 ORGANIZATION BACKGROUND
Company Name AIA Bhd.
Company Logo

Company Address Menara AIA, 99 Jalan Ampang

50450 Kuala Lumpur
P.O. Box 10140
50704 Kuala Lumpur
Contact 603-2056 1111
Company Website www.aia.com.my
Table 1: Details of Company

AIA Bhd., formerly known as American International Assurance Bhd., is a

leading life insurance organization in Asia with a unique heritage of serving
customers across the world’s most dynamic region over the last 90 years. AIA
Bhd. has been privileged to do business since 1948.

AIA Bhd. is building future success through investing in strategic growth

projects and broadening its distribution to create a full multi-channel system.
Moreover, the company meets the protection, savings and investment needs at
every life stage by offering a full range of risk management solutions including
comprehensive Life Insurance and Investment-Linked products, coverage for
Personal Accident and Group as well as Personal Lines and commercial business
insurance.

On 11 June 2015, Mrs. Anusha Thavarajah was appointed the role of Chief
Executive Officer (CEO). She is the first woman to join AIA’s rank of CEOs in its
six largest markets in the Asia Pacific region. Her key areas of focus include
growing and strengthening the company’s three main business lines comprising
Agency, Partnership Distribution and Corporate Solutions as well as overseeing
the growth and development of AIA’s Takaful business in Malaysia. After becoming

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single license, AIA Bhd has an enlarged entity with total assets worth RM42 billion.
With over 60 years of market presence in Malaysia, AIA Bhd. has now become the
largest independent publicly listed pan-Asian life insurance group with a well-
trained team of more than 2,000 employees and 16,000 agents who diligently
serve over 3 million policyholders.

AIA Malaysia vision is to be the undisputed number one life insurance

company In Malaysia. In layman term, no matter judging AIA Malaysia from any
area of insurance, AIA Malaysia is number one in Malaysia. Its mission is to meet
the different life stage needs of its customers by providing the right protection and
long term savings solutions. In other words, AIA Bhd. aims to fulfill all the needs of
its customers.

3.2 ORGANIZATION CHART OF ACTUARIAL DEPARTMENT

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 Figure 1: Organization structure of Actuarial Department

Figure 2: Pricing & Product Management

3.3 OVERVIEW OF ACTUARIAL DEPARTMENT

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 Actuarial Department’s job scopes can be divided into a few segments. They
are Valuations, Financial Modeling, Product Development, Reinsurance, Pricing
and others.

First and foremost, Valuations is an area whereby future liabilities of the

company are estimated and its solvency is checked to ensure assets cover
liabilities. Whenever the statutory reserve for certain product goes below certain
level, they will bring this issue to the pricing team to check and amend the product
to ensure company does not suffer loss due to this product. Appointed Actuary is
required to set up adequate reserves in line with Bank Negara regulations. Such
action makes sure that insurance company has sufficient fund to pay the
beneficiaries in case of death, total permanent disabilities, diagnose with critical
illness and others depend on the type of coverage for insured. Valuation team has
to prepare quarter report to be filed to Bank Negara Malaysia(BNM) so that Bank
Negara aware of and keep check with the financial level of the insurance
company. The team also conducts Risk Based Capital (RBC) parallel testing
whenever they prepare the quarter report. It contains total number of policy which
is inforce or under underwriting for every classification of product.

Financial Modeling is to perform Dynamic Solvency Testing. It is a projection of

future condition of the company under different scenarios. This explains why
insurance company is less susceptible to economic change and the AIA BHD
Malaysia’s surplus is in the increasing trend. This team conducts bonus
investigations for participating policies which share in the company’s profits.
Under latest Bank Negara Guideline, RBC required has to be determined under
new requirement for solvency which require more capital to be held by reinsurers
who invest in more risky assets.

Product Development is the part where new products are developed. After
launching new products, the team has to set up in the database system, create
the templates, and run profit test whereby Value on New Business (VoNB) is
estimated.

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 Reinsurance is the field where AIA Bhd. Malaysia cedes out some portion of
the sum assured to reinsurers to minimize the impact of large claims. Treaties are
made between AIA and one or more reinsurers whereby there are certain criteria
being made for example policy’s sum assured that exceeds RM400,000 whereby
the surplus is ceded automatically to reinsurer but with an upper limit of eight
million ringgit. The ceding proportion is agreed by both parties before the treaty is
signed and be effective. This is known as quota share whereby the insurer and
reinsurer share proportionately in each risk.

Pricing is the part where price of a product is determined based on calculated

risks, amount of buffers set by actuary and after deciding the price, files
documents like Actuarial Certificate to Bank Negara and Product Approval to AIA
Regional Headquarter in Hong Kong. The pricing team has to make decision
whether the price is sufficient to cover company expenses and claims related
costs. They also do experience study whereby they collect and analyze statistical
data provided by reinsurer and from other sources in order to launch profitable yet
competitive product.

There are other tasks that are not grouped under those fields mention above.
For example, Actuarial department has to provide assistant in modelling
investment policy and activities related to business planning. Large cases
whereby sum assured more than 1 million will be referred to Actuarial Department
from Corporate Solution Entity and if required, Actuarial Department will provide
special quotations.

4.0 INDUSTRIAL TRAINING REPORT

4.1 SUMMARY OF TASKS

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4.1.1 EMPOWER
There are two monthly routine tasks that have been assigned to me,
Empower is one of them. Empower plan is a Regular Premium Investment-linked
Insurance Plan that provides both investment returns and protection. It offers
insured the flexibility to take control of the best solution to suit insured’s needs
against the unexpected and to grow with insured over the course of his/her life. My
task is doing the reinsurance part for the Empower plan and there is a manual
which include the steps needed to run the program.

Figure 3: Empower Manual

The source files of Empower are stored in dbf format as the data are large.
There are two separate files namely basic (ybif) and rider (yrif) files, and here
starts my task of preparing the data before starting to run the macro program.
Firstly, I compile the data into another dbf files as the original files contain other

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records that are not related to my task and there are headers added to both new
dbf files so that they can be compared to each other. Both compilation and
comparison are done using Microsoft Visual FoxPro 9 (Vfp9) and the purpose of
the comparison is to extract the policy number (polno) in rider file that exist in
basic file (matching process) using the records in basic file and present them(both
basic and rider) in two different excel files. After that, check for the repetition of the
polno as there are two scenarios, firstly it might be the duplication of the polno. In
case they are duplication, delete all the duplicated records. Another scenario is
that there are some insured that buy more than one basic plan which can be seen
through the different in sum assured (sa) value. Both records’ sa should be added
together to become a single record. After this step, all records should only exist
once and the data are ready to be used in macro program.

Figure 4: List of Macro programs

Next step is running the macro program. At first, the macro program will
arrange all the records with basic and riders of the same polno in the same row.
There might be a record without rider, with one rider or more than one riders in the
same row. There are two macros to be running each consume 45 minutes and the

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preparation of data takes one and half hour to be done. The difficulty that I faced
during my first week was that the alignment of the data should be the same as
what was written on macro coding, if not, the data would not be transferred
completely, macros could be running smoothly and there was no error reminding
the user that the data was incomplete. In the end, the data that I generated was
not the same as previous month as there were huge amount of polno that were
not inforce ( the assumption for those disappearing records could be lapsed,
withdrawn, expired or cancellation of inception) and it was not normal. So, I had to
redo from the beginning. In conclusion, it will take me 2 hours to prepare the data
before running the macro for calculation of premiums and the time can be
extended in multiple if I have to redo for multiple times.

After the arrangement, the same working file will be running for 5 different
macro programs. These macro programs are used to calculate the final premium
to be paid to reinsurers and the reason for 5 different macros is there are 5
different treaties at different time frame. (Treaties might be different in reinsurers’
number, reinsurer’s rates and certain plans are covered under that specified
reinsurer)

All these macros that I have run so far are already written and modified by
other colleagues and other previous interns. I get the opportunity to write a new
additional macro for the GST part for the empower plan that would be running
calculation after those macros. The implementation of GST affects the critical
illness ( known as CI, a type of rider) and I have asked to include the GST charges
on those policy that embedded critical illness.

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 Figure 5: Empower Macro for GST

Figure 6: List of Macro excels’ output

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4.1.2 CREDIT LIFE
Another monthly routine task is preparing the monthly journal for Group
Mortgage Decreasing Term (GMDT), one type of credit life. Credit life is designed
to settle any outstanding mortgage balance should untoward incidents like death
or total permanent disability happen. Therefore, your family will be securely
protected.

GMDT includes some features like flexiloan, hire purchase, group mortgage
decreasing term and AGS. Another type is advantage program (GMDT AP), in which the
company charges the insured with loadings for those facing occupational risks or other
related risks but cede out the normal proportion to reinsurer. I am using coding written in
FoxPro program to run and generate a final excel file comprise all the records with
reinsured premiums fully calculated according to reinsurers’ proportion.

Here is a brief explanation on the steps to generate the final excel file. Firstly, the
data are splitting according to their status whether they are inforce (IF) or underwriting
(UW). For the UW records, filter out those that the coverage persistent more than 2 years
as the company will start provide coverage for insured once it enters into underwriting
process and the company only cedes out those less than 2 years. Thus, they will only
include in journal if they undergo underwriting process less than 2 years. Then the data
are further splitting according to their network (FL,SV,HP) or same as what I have
described earlier the feature. All are stored in different dbf files, each will then be arranged
(add new columns for new fields) according to the templates/journal format. Then all
records will be appended together before calculating for their premiums. Premiums are
calculated according to respective ages for different gender and each reinsurer have
different rate tables.

After generating final excel file, I will split records manually into the journal
according to date of inforce (DOI) to group them into Renewal Business before effective
date (RB Before), New Business (NB) and Renewal Business after effective date (RB
After). The reason for this splitting is a new treaty had been made after that effective date
and the number of reinsurers and their respective rates had changed as well as the
proportion ceded to each reinsurer. Check for settle claims for those missing records
(compare current month records with previous month records) and for those records that
are not inforce current month, compare them to an excel file containing up-to-date settle

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claim records to identify whether they are settle claims or other status. The last step is
prepare three similar journals for that current month to be sent to three different reinsurers
each contains only their respective information like their own rates and premiums paid to
them. The steps for GMDT AP are similar to GMDT.

There are a few modifications that I have been assigned. Firstly, use the coding to
split records into RB Before, NB and RB After. Secondly, prepare the new rate table and
modify the GMDT AP program so that it can refer to two different rate tables for the
policies inforce before and after certain years. Thirdly, for GMDT part, compile a RB
Before master listing so that the program extract those polno exist in the master listing
from all the records into RB Before. (Previously using DOI to group into RB Before),
prepare UW master listing so that the program replaces the DOI dates with the real
coverage dates for those exist in the listing as this would affect the rebate for the policy.
For GMDT AP, compile a RB Before master listing and the intention is similar to GMDT.

Figure 7: Credit Life GMDT & AP procedures

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 Figure 8: Monthly Journal for GMDT & AP

Figure 9: GMDT & AP Manual

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4.1.3 MACRO COMPILATION
As the name suggest, macro compilation is the process whereby a macro program
is designed and used to compile all the journals in a quarter. It is used for generating a
master file which contains all the policy numbers, and their information related to
reinsurance like sum reinsured, date of inforce, type of plans and others. The purpose of
compiling a master file is easing the process of checking the information for a particular
policy number when there is a settle claim.

Settle claim is claim that has been approved and paid out to the insured and now
the record is now passed to reinsurance team and they have to check whether it is
coincides with the quarter’s journals that they produce using the result they generate each
month. After validating the status, they have to check reinsured amount to be claimed
from one or more reinsurers depending on the type of treaty they made. In conclusion,
they refer to the master file that has been generated to check for all required information.

Here is the brief explanation regarding the steps needed to generate the master
file. First and foremost, extract all data from all journals produced that quarter and output
into their respective excel files by selecting the require information. There are 24 types of
products that I deal with and generate approximately 170 temporary excel files. It is
common that the first three quarters contain 130 files each quarter as some of the
journals are not produced in journal format but presented as text file in the last quarter
due to data contain in different system. Below is the self-input journals’ location so that
macro can trace the location and extract the data.

Figure 10: Journals’ location

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Figure 11: List of temporary excel output files

After producing the temporary files, another macro is used to append all the
data together into a single excel file. The reason for combining the excel files in
another step is to check back whether excel file is correctly generated when there
is lack of some information for certain journals as different journals have different
headers and it might cause the macro to extract less data. The last step is to
append it into the original master file in dbf format using Microsoft Visual FoxPro.

4.1.4 ACTUARIAL CERTIFICATE AND PRODUCT APPROVAL

Actuarial Certificate is used for the approval of Bank Negara when

launching a new product. It will be prepared by actuarial team, include all product
information, signed by Appointed Actuary and to be look through by CEO. Then,
Actuarial Certificate will be sent to Bank Negara for approval. At the same time, all
the information contain in Actuarial Certificate will be used to produce Product
Approval as this pdf file will be sent to AIA Regional Headquarter located at Hong
Kong after getting approval for the launching of a new product. Actuarial
Certificate and Product Approval are similar things, they just present in different
format. Thus, I have been assigned to change the format of Product Approval so

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that it is coincide with the Bank Negara Guideline. To date, Product Approval use
Hong Kong format as it refers to the sample of Product Approval from Hong Kong.
So, the Head of Pricing and Product Management, Senior Manager, Mr. Hung
Kean Teong decided to change the format so that whenever there is any additional
information required by Bank Negara, that information can be straightaway include
in the same section. If old format is used, although that section exists, but it is
named as other terms, it might make the process of preparing the Product
Approval become tedious as they have to look for the location of field that refers to
the same thing.

I have been assigned the task in multiple steps. After completing one step,
then I can only get the new instruction from Mr. Hung Kean Teong to proceed to
the next step. At first, I compare the latest Bank Negara Guideline with the a
sample of existing old format actuarial certificate to identify is there any new
information requested by Bank Negara and if so, highlight them in yellow colour
and green colour for not required field. After that, I have to prepare an actuarial
certificate to be used by group office. So what I have produced is the guideline for
the department as they can refer to the new actuarial certificate in future as
reference. So the new task is by comparing the Product Approval with the
actuarial certificate and mark out the location of the fields of the Product Approval
inside the actuarial certificate so that the information can easily traced out and be
used as a reference when needed.

4.1.5 M ISCELLANEOUS TASK

During the 16 weeks internship period at AIA Bhd., I am also helping in some
miscellaneous tasks such as following:
- Metlife
I have been given a list of required addendum for different products and my
task to find out the all the ceding portion listed inside the addendums. In
some case, I have to refer to original treaty to find out the required filed.
Addendum is the modification that has been made to the original treaty so
as most of the agreement in the original treaty still be effective and only the

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 part listed in the addendum will be used instead when there is a conflict of
interest between the two.

- Claim Checking
It is a process whereby the amount of total sum reinsured will be identified
and listed out so that the company can claim that particular amount from
the reinsurance company. There is a different in the calculation of sum
reinsured for angioplasty surgery compare to other critical illness and
caution must be taken to identify the value. So I have to look into the
original journals to identify them by using the referred quarters stated with
the policy number.

- EMP Calculator
There has been malfunctioning inside the EMP calculator whereby the two
types of riders should not influence each other to the extent that when the
percentage of one rider is zero, another rider is 30%, the percentage shown
should be 0% & 30% and not 0% & 0%. This template would be used by
marketing to calculate how much premium should be paid when customer
asked about it. There are some coding errors and I have to identify and
modify them until they work correctly.

4.2 APPLICATION OF THEORETICAL AND PRACTICAL KNOWLEDGE

Throughout the industrial training period, there are a few courses that we
learnt in university help me in the workplace as some of the basic concepts
applied when I was dealing with my task.

4.2.1 SJEM 1130 I NTRODUCTION TO COMPUTING / SJEM2231 STRUCTURED

PROGRAMMING
Microsoft Excel, Matlab and C++ programming provide from these courses
help me in dealing with almost all of the tasks except those tasks that did not
involve calculation and sorting like preparing documents in Microsoft Word. From

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these programming, we learn the basic structure of coding, the concepts and their
logics. Although the language is different like SQL language needed for Microsoft
Visual FoxPro, but the concept learn from C++ still apply, the only different is the
syntax, on which how we program will help the computer understand and perform
the task. Besides, the basic built-in functions in Microsoft Excel, for instance
vlookup, if, sum, sumif and counta functions that learn from this subject are often
applied in constructing an excel calculation template. Hence, the template will then
sort out the information needed and generate the result by using the basic built-in
functions after we input some information.

4.2.2 SJER 2215 I NTRODUCTORY LIFE CONTINGENCIES / SJER 3216 F URTHER

LIFE CONTINGENCIES
Most of the actuarial term like premium, reserve, mortality, cash value and
others have learnt from this subject. With the knowledge learns in Life
Contingencies, I have less ambiguous for some of the actuarial terms. For
example, the journal that I have to prepare each month as well as results
generated from macro programming. As there are lots of column with the headers
label in abbreviation and some of the abbreviations are created by the person who
wrote the coding. The reason for abbreviation is that the Microsoft Visual FoxPro
only can input headers in up to 10 letters. In such case, if I have some basic
knowledge for some common actuarial terms, it helps me shorten the time needed
to familiarize with the template given to me.

4.2.3 SJER3218 I NTRODUCTION TO GENERAL INSURANCE

I apply my knowledge of this course in the basic parts of an insurance
contract. Although what I have learnt is about general insurance, but I noticed that
it is quite similar for the contract of life insurance. The basic parts of an insurance
contract include declarations, insuring agreement, exclusions, conditions and
miscellaneous provisions. For example, it is useful when I have to study through
the treaties and journals, understand them and find out the required information to
be used in writing and modifying macro coding and FoxPro program when there
were changes in treaties. Besides that, it is helpful in familiarize with Bank Negara

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Guideline, and some minor tasks like preparing documents and reports in
Microsoft Word.

4.3 DEVICES /APPLIANCES USED FOR EXECUTING TASK

4.3.1 MICROSOFT VISUAL FOXPRO

FoxPro is a text-based procedurally oriented programming language and
database management system (DBMS) and helps in building database of all size.
It manages the data from organizing tables of information to running queries and
one of the important functions is to convert the dbf file to excel file and vice versa
when the company would like to store the information in the system. Most of the
time, I have been using FoxPro in generating the result for GMDT product to be
used in preparing the monthly journal. When there were changes in treaties like
different rate, some additional network(AGS) and different sorting method by using
the date, I have to modify the program so as the result generated by FoxPro fulfill
the requirement of journals.

Figure 12: Microsoft Visual FoxPro

4.3.2 VBA MACRO
VBA Macro enables building user defined functions and automated
processes in completing task. It reduces manual works that is complicated in
Microsoft Excel. Usually, I run the existing VBA Macro programming to generate

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the output, such as the task in Empower plan as well as in Macro Compilation
task. I get the chance to create an additional macro for GST part of Empower
plan.

Figure 13: VBA Macro

4.3.3 M ICROSOFT EXCEL
Microsoft Excel is one of the most common programs I have exposed to
throughout my internship period due to the automated processes are usually done
in Excel templates. It is very important for a department as all the data are well-
organize and calculations and outputs can be done efficiently. The result can be
generated by using the built-in functions and the information needed can be sorted
out.

4.3.4 MICROSOFT WORDS / ADOBE READER

Microsoft Words and Adobe Reader are useful in preparing all
documentation works. For example, the Actuarial Certificates and Product
Approval were prepared in the Microsoft Words format before converting into PDF
format. The documents are important as they are sent to Bank Negara for
approval of product and to Hong Kong as well as use by the colleague as a
reference in preparing new product.

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4.4 PROBLEMS FACED /CHALLENGES
This internship is my first exposure in the actuarial society. It provides a
good experience for me as everything seems new to me. I have faced several
problems throughout this industrial training. Thus, I need guidance most of the
time when completing the tasks given to me and always depend on my colleagues
to instruct me and make decision.

In the task of credit life, I take quite some time to study about the coding in
Microsoft Visual FoxPro as it is new to me. The results to be placed in journal are
solely based on the data generated by FoxPro. So, at first I have to identify out the
location of input source files as to where I should place them when I extract them
from the system. After that, study through the coding at least once before running
the program for the first time. After generating journals for few months and modify
the coding for satisfying new requirement, my programming skill has obviously
improve as practice will always make thing perfect and my confidence in writing
coding increase as the day pass by.

In addition, another challenge that I face is running macro coding in

generating result for Empower plan. As running all macro will take up half a day,
before running the macro, I have to input data in the template in the way that the
coding is designed for. At first, I stuck in the early two macro as the result
generated are not correct and cannot proceed in running the rest of the macro.
Only those two macro consume one and half hours and I have to waste another
one and half hour to proceed to the same step when I have input the data in the
way not in tandem with coding. After I familiarize with the coding, the macro would
run smoothly to the extent that I manage to create additional macro for it.

Another difficulty that I face is preparing the Actuarial Certificate and

Product Approval. Although the basic terms are learnt in general insurance course,
there are still plenty of fields that I am not familiar with. I search through the
internet to look for the definition of the fields and somehow there are still some
fields that I am not sure. Luckily, Mr. Hung Kean Teong, Head of Pricing who
assign the task, ask me to discuss with him all the fields that I am not sure of. I am

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grateful for that as he is willing to spare his time for teaching me as he is busy for
meetings and discussions with other colleague.

4.5 LESSONS LEARNT FROM COLLEAGUES /SUPERVISOR

During these sixteen weeks of industrial training, I have learnt and gained a
lot of knowledge from my colleagues and supervisor. All the positive
characteristics shown by them have inspired me, for example hardworking,
patience and responsible. Besides, they have explained the purpose of the task
assigned to me before I carry out the task. Whenever there is a problem arises,
they would guide me indirectly how I should be looking into the problem helps me
cultivate my critical thinking so that I can try to resolve the problem that I
encountered. Communication skill is another vital part for working in the society as
miscommunicate might lead to loss in company.

Apart from that, I get a lot of advices and information about the Society of
Actuaries (SOA) pathways. Their enthusiasm towards the actuarial field has
definitely motivated me to be more determined to continue in this path. They work
hard and strive to achieve balance in both study and work. They also manage
their time well in achieving success by passing their professional papers and
working at the same time.

Last but not least, my computer skills have improved a lot after undergoing
this internship. My colleagues are willing to spend their precious time to explain
some shortcut keys to me to speed up my process of doing the task. They will
explain to me whenever I use incorrectly the basic function of the commands on
Microsoft Visual FoxPro and Microsoft Excel that I learn by searching through the
internet.

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5.0 C ONCLUSION AND SUGGESTION
In a nut shell, there are ups and downs throughout the internship and I
successfully finish all the tasks given to me. It provides me an invaluable and
great experience in real working life that related to actuarial field. I get to know the
organization structure and the role of each team in actuarial department. I have an
insight to the actuarial field and can relate some future courses to practical
knowledge that I learn throughout sixteen weeks.

Additionally, I have learnt to produce quality works within a limited time

period by managing my time well and increase my productivity and efficiency in
working. Besides, I manage to apply some of my theoretical knowledge learnt
from Actuarial and Financial Mathematics course in the task assigned to me. I also
get the chance to expose to different programs and software to carry out my
duties that will help in my future working life.

In my opinion, students should explore deeper into Microsoft Excel and

other database programming before entering to a workplace as programming
courses offered in university only provide and train students on the concept of
applying the language and it is insufficient to manage the data in the workplace
since students lack of the technic required. Students are encouraged to be more
independent and prepare a good resume for finding an internship placement. They
should send in their resume and cover letter via email to company’s email instead
of using MYUM online system.

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6.0 REFERENCE
AIA Bhd. (2014) About AIA. Bhd. Retrieved August 3, 2015 from AIA Bhd.

website: http://www.aia.com.my/en/about/about-us/about-aia-bhd/

AIA Bhd. (2014) Our Achievements Retrieved August 5, 2014 from AIA Bhd.

website: http://www.aia.com.my/en/about/about-us/our-achievements/

AIA Bhd. (2014) Our Commitments Retrieved August 5, 2014 from AIA Bhd.

website: http://www.aia.com.my/en/about/about-us/our-commitments/

7.0 C ERTIFICATION

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For and on behalf of AIA Bhd., I hereby declare that this report has been submitted
for my verification and approval.

The content of this report has been reviewed and confirmed to be true, accurate
and does not contain any confidential materials or issues that cannot be viewed by
public.

_______________________
(Low Wai Tzer)
Associate
Actuarial Department
AIA Bhd.
14th August 2015

8.0 APPENDIX
Microsoft Visual FoxPro Command

***** Getting Inputs *****

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set defa to "\\kaiwksgh415thw9\d$\Ryan\GMDT (compile ver)\Group
RI\GroupRI_GMDT \Input

*****Extract of a GMDT procedure*****

sele * ,b.polno, b.recur_sa as stat_res, b.Sa_80 as sa, 0000000 as rate_scor,
00000000 as premium from ‘&gmdt’ a left outer join ‘&dtb91B_new’ b into table
‘&ags’
alter table ‘&ags’ add column polnopc c(12)
alter table ‘&ags’ alter column polno c(8)
alter table ‘&ags’ add column pc c(4)
close all

Use ‘&ags’ in a
Do while not eof(‘a’)
replace isblank(doi) with occdate
replace polnopc with polno+pc
skip in a
enddo

VBA Macro Command

*****Create Workbook*****

Sub Create()

Dim Mycell As Range, MyRange As Range

Set MyRange=Sheets(“Macro”).Range(“e9”)

For each MyCell In MyRange

Workbooks.Add

ActiveWorkbooks.SaveAs Filename:=MyCell.Value, File

Format:=xlOpenXMLWorkbook, CreateBackup:+False

Next

Windows(“Intermediate Worksheet.xlsx”).Activate

ActiveWorkbook.Close True

Windows(“01 MacroStep1”).Activate

EndSub

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****Plan*****

Range(“AM6”).Select

Application.CutCopyMode=False

Activecell.FormulaArray=”=IFERROR(INDEX(PC!
$D$3:$D$50000,MATCH($D6,IF(PC!$E$3:$E$50000=1,PC!
B$3:$B$50000),0)),0)”

Dim lr1 As Long

lr1=Range(“AL”&Rows.,Count).End(xlUp).Row

Range(“AM6”).AutoFill Destination:=Range(“AM6:AM”&lr1)

Range(“AM6:AM”&lr1).Select

Selection.copy

Range(“AM6:AM”&lr1).Select

Selection.PasteSpecial Paste:=xlPasteValues, Operation:=xlNone,

skipBlanks:=False Transpose:=False

Application.CutCopyMode:=False

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