Continuing our series of conversations with actuarial leaders around the world, in this issue we are pleased to speak with Junseop Lee, the 28th president of the Institute of Actuaries of Korea (IAK). Founded in 1963, the IAK has a history spanning more than six decades and is a full member of the International Actuarial Association (IAA). Korea recently became one of the few markets to implement IFRS 17 and the Korea Insurance Capital Standard (K-ICS, Korea's risk-based solvency regime) at the same time—a sweeping transformation of both accounting and capital regulation. We are deeply grateful to President Lee for making time, amid a demanding schedule, to join us for this interview.
Sang Ahn (SA): Congratulations on your inauguration as the 28th president of the IAK. As you begin this new role, could you share your reflections on taking office, along with a brief introduction to your background and career?
Junseop Lee (JL): Since taking office as the 28th president of the IAK, I have felt both deeply honored and profoundly aware of the responsibility that comes with this role. Against this backdrop, I am especially pleased to have the opportunity to introduce the current state of the Korean actuarial profession and its key challenges directly to the readers of the Society of Actuaries (SOA) Career Development Community.
After graduating from Sungkyunkwan University with a degree in mathematics in 1985, I joined the Korea Insurance Development Institute (KIDI) in 1989. Over the course of approximately 35 years, including my tenure as vice president, I worked across a broad range of areas in both life and non-life insurance, including product development, statistics, actuarial work, risk management and IFRS-related matters, as well as planning, human resources and public relations. I have also served in several leadership roles within the IAK, including as secretary for general affairs, executive director and vice president. I currently serve as CEO of Nara Actuarial Consulting.
Having worked at an insurance rate-making organization, in the insurance industry and within the IAK, I intend to focus on delivering tangible change during my term. My vision is “An IAK that gets things done, and an IAK that people want to be part of.” We will work to enhance our members’ professional expertise and protect their interests, while also strengthening actuaries’ social responsibility and public standing.
SA: Korea took the rare step of implementing IFRS 17 and K-ICS simultaneously, a real-world precedent that offers a compelling point of comparison for US actuaries navigating the long-duration targeted improvements (LDTI) transition. What were the key lessons learned from that process, and what challenges remain?
JL: Korea is one of the few countries to have introduced IFRS 17 and K-ICS at around the same time, with both taking effect in 2023. Korea had, of course, spent many years preparing for IFRS 17 through regulatory groundwork and operational preparations. However, as the new accounting standard and solvency framework came into effect in parallel, insurers had to comprehensively reorganize their financial and risk management systems.
The greatest lesson from this process is that the successful implementation of a new framework does not end with building systems and producing figures. What matters more is interpreting the results consistently, explaining their implications clearly to management and the board, and connecting them to decision-making. Yet translating this lesson into practice has not been straightforward, and several challenges remain.
First, we need to continue improving consistency in the interpretation of standards and their practical application. Second, we need to manage the reliability of assumption-setting and experience analysis with greater rigor. Third, we need to further strengthen coordination among finance, risk, product and accounting functions to ensure stable implementation. Finally, actuaries need to further strengthen their communication skills to convey actuarial judgments more transparently and effectively, so that both the market and management can properly understand the heightened financial volatility associated with the new frameworks.
Korea’s experience goes beyond the introduction of new standards; it illustrates how actuarial judgment can become part of the language of organizational decision-making amid changes to accounting and solvency systems. I believe this experience offers valuable insights for actuaries in the United States and other markets.
SA: Since the introduction of IFRS 17 and K-ICS, actuaries have moved beyond their traditional role as reserve calculators to become accounting policy contributors and strategic business partners. The same trend is unfolding in the United States. How has this shift played out in Korea?
JL: One of the most significant shifts brought about by these changes has been in the role of the actuary itself. Before the introduction of IFRS 17 and K-ICS, actuaries in Korean insurance companies were primarily viewed as technical specialists responsible for calculating reserves and validating premiums. Since then, however, they have increasingly taken on the role of partners directly involved in policy decisions and corporate strategy.
This transformation is not yet complete. For actuarial judgment to be consistently reflected in board-level decisions, actuaries need to go beyond interpreting figures and communicating their implications in strategic terms. Systems can process data, but assessing the reasonableness of assumptions and bearing responsibility for outcomes remain the responsibilities of human experts. This ability to interpret results and bear responsibility for outcomes is the core value of actuarial expertise.
SA: I have read that while approximately 1,200 actuaries are currently employed in Korean insurance companies, industry demand is estimated at around 3,000—a figure cited in a CEO Score Daily article from April 8, 2024. How does the IAK plan to address this talent shortage?
JA: It is clear that demand for actuarial talent is increasing rapidly in the Korean insurance industry. Since the implementation of IFRS 17 and K-ICS, the scope of actuarial work has expanded beyond reserve calculations to include accounting, risk management, capital management, product strategy and support for management decision-making.
However, I do not believe this issue can be resolved simply by increasing the number of actuaries. As actuarial work becomes increasingly important, we need to expand the profession both quantitatively and qualitatively, growing the talent pool while deepening professional expertise. In particular, it is important to establish a framework that enables actuaries to continuously develop their capabilities in advanced areas such as new accounting and solvency frameworks, data analytics, model validation and risk communication.
To this end, the IAK intends to further strengthen its Continuing Professional Development (CPD) framework. Through practice-oriented training, seminars, specialized programs by area and programs that share international developments, we plan to help actuaries adapt to a changing environment. We also need to work more closely with insurance companies and related institutions to attract young talent to the actuarial profession and support their development.
Ultimately, addressing the talent shortage requires both growing the number of actuaries and continuously deepening the expertise of those already in the profession. When the number and capabilities of actuaries grow together, the actuarial profession can provide a stable foundation for the transformation and risk management of the Korean insurance industry.
SA: As artificial intelligence (AI) and automation take over an increasing share of actuarial tasks, how should the competencies required of actuaries evolve at different career stages? And what kinds of education and support do you hope the IAK and insurance institutions will provide to both junior and senior actuaries?
JL: As AI and automation become more widespread, I believe the competencies required of actuaries will become more differentiated and advanced. Because the roles of actuaries vary according to their career stage, the required skills and approaches to training should also differ.
For junior actuaries, it is increasingly important to build data literacy and familiarity with digital tools on top of a strong foundation in mathematics and an understanding of accounting and risk management frameworks. Although repetitive calculations and standardized tasks can be automated, people must still assess whether the results are reasonable and identify anomalies. The key capability for junior actuaries is therefore not simply the ability to produce results, but the ability to understand and question them—in other words, to critically review models and assumptions. The IAK should support this through practical, case-based training and regional workshops that strengthen readiness for real-world work, while insurance companies and other institutions should go beyond assigning routine tasks and create learning environments in which junior actuaries can gain integrated experience with data, models, accounting and risk.
Senior actuaries require a different set of capabilities. As AI improves the efficiency of calculation and analysis, senior actuaries will increasingly need to connect the resulting insights to organizational judgment and decision-making. It will become more important to explain uncertainty and risk to management and the board in clear, accessible terms and to connect actuarial judgment to business strategy. Senior actuaries must also help embed emerging governance issues, such as model risk, data governance and the responsible use of AI, into policies and processes. The IAK should strengthen programs for senior actuaries focused on leadership, communication, global regulatory developments and case studies, while the insurance industry should provide senior actuaries with the roles and authority needed to function as key decision-making partners rather than merely as technical managers.
Taken together, these considerations point to a new vision for actuarial education—one that goes beyond the transfer of knowledge. It should be designed to strengthen data and validation capabilities for junior actuaries and strategic judgment and communication skills for senior actuaries. When the IAK and the insurance industry work together to systematically support this growth path, the professional value of actuaries will become even clearer in the AI era.
SA: Beyond the challenges we have discussed, are there any other priorities or visions you would like to highlight for the Korean actuarial profession or the broader insurance industry?
JL: Beyond talent and capability, a foundational challenge for the Korean actuarial profession is strengthening the institutional basis for actuarial independence and professional ethics. Actuarial judgment affects core areas such as reserves, premiums, solvency and risk management, and its outcomes are ultimately linked to consumer protection and market confidence. It is therefore essential to create an environment in which actuaries can make independent and responsible judgments as professionals, without being swayed by commercial interests or short-term management pressures.
Actuarial independence and expertise are particularly important in areas such as external reserve reviews. The IAK has been continuously refining guidelines for external reviews, practice manuals and quality control standards to strengthen its self-regulatory function and improve the reliability and transparency of actuarial judgment.
More broadly, the IAK intends to ensure that actuaries are recognized, not merely as technical experts within insurance companies, but as professionals who help uphold trust in the insurance industry and society as a whole. Balancing and reinforcing expertise, independence and ethics will be a key priority for the sustainable development of the Korean actuarial profession.
SA: What role does the IAK play in cooperation with global actuarial organizations such as the IAA, and what forms of partnership do you hope to develop going forward? Are there specific areas or projects where you see opportunities for collaboration with the SOA?
JL: The IAK regards cooperation with global actuarial organizations, including the International Actuarial Association, as an important priority. Issues such as IFRS 17, solvency frameworks, climate risk, AI and aging populations are shared challenges and addressing them effectively requires shared effort.
In recent years, the IAK has significantly expanded the participation of its members in IAA committees, sections and forums. Through this engagement, we share Korea’s implementation experience and practical examples with the international community, while also bringing global discussions and standards back to Korea. This helps enhance the international capabilities of Korean actuaries and provides a foundation for the IAK to make a more substantive contribution to the global actuarial profession.
The IAK and the SOA have also maintained a long-standing partnership. Each year, usually around September, we co-host a seminar to share insights into global actuarial issues and developments in practice. Going forward, we hope to further develop this collaboration by expanding our joint seminars into a more structured platform for knowledge exchange and career development.
There is no shortage of topics ripe for joint exploration, from IFRS 17 and K-ICS to the US experience with LDTI, the evolving role of actuaries in the AI era and the challenges of aging populations and longevity risk. I hope the SOA and the IAK will move beyond information exchange and work together as partners that learn from one another and seek solutions together.
SA: Finally, could you share your broader vision for the IAK and the future of the Korean actuarial profession? And is there a message you would like to offer to your fellow actuaries in the SOA Career Development Community?
JL: If I were to capture my vision for the IAK—and for the actuarial profession more broadly—in one sentence, it would be this: Actuaries should become professionals who interpret change and help set direction. In an era in which technology handles calculations, the value of actuaries lies in their judgment and accountability. As long as we remain grounded in these qualities, I am confident that the future of the profession is bright.
To my fellow actuaries in the SOA Career Development Community, despite differences in scale and institutional context, the challenges facing Korea and the United States are fundamentally the same. Aging populations, AI, emerging risks and the redefinition of the actuarial role are challenges that we are addressing together in the same era.
I look forward to further opportunities for dialogue and collaboration, and I warmly encourage you to join us at the Asian Actuarial Conference (AAC 2027), to be held in Seoul in October 2027. I hope to see many of you there. Thank you.
This article is provided for informational and educational purposes only. Neither the Society of Actuaries nor the respective authors’ employers make any endorsement, representation or guarantee with regard to any content, and disclaim any liability in connection with the use or misuse of any information provided herein. This article should not be construed as professional or financial advice. Statements of fact and opinions expressed herein are those of the individual authors and are not necessarily those of the Society of Actuaries or the respective authors’ employers.
Sang Ahn is an editorial board member of the SOA’s Career Development Community newsletter articles. He can be reached at shahn27@vcu.edu.
Junseop Lee is the president of the Institute of Actuaries of Korea. He can be reached at actuary@actuary.or.kr.
