theactuary.com
PUBLISHER Redactive Publishing Ltd Level 5, 78 Chamber Street, London, E1 8BL +44 (0)20 7880 6200 PUBLISHING DIRECTOR Joanna Marsh MANAGING EDITOR Sharon Maguire +44 (0)20 7880 6246 sharon.maguire@redactive.co.uk SUB-EDITORS Kathryn Manning Caroline Taylor NEWS REPORTER Christopher Seekings +44 (0)20 7324 2743 christopher.seekings @redactive.co.uk D I S P L AY S A L E S EXECUTIVE Charles Boutwood charles.boutwood@redactive.co.uk 020 7880 7661 SENIOR RECRUITMENT SALES EXECUTIVE Shamil Bhoyroo shamil.bhoyroo@redactive.co.uk 020 7880 6234 SENIOR DESIGNER Sarah Auld PICTURE EDITOR Akin Falope SENIOR PRODUCTION EXECUTIVE Rachel Young +44 (0)20 7880 6209 rachel.young@redactive.co.uk
EDITOR Francisco Sebastian editor@theactuary.com F E AT U R E S E D I T O R S Jeremy Lee, investment, ERM Stephen Hyams, pensions Garry Smith, banking, regulation Yves Colomb, general insurance David Boland, life insurance Joanne Joseph, general insurance Sharad Bajla, general insurance Chris Marsh, life insurance Paul Malloy, reinsurance, life insurance Contact: features@theactuary.com PEOPLE/SOCIETY NEWS EDITOR Yvonne Wan social@theactuary.com STUDENT EDITORS Joseph Mills Jason Whalley student@theactuary.com IFOA EDITOR Kate Pearce +44 (0)207 632 2118 kate.pearce@actuaries.org.uk EDITORIAL ADVISORY PANEL Peter Tompkins (chairman), Naomi Burger, Matthew Edwards, Martin Lunnon, Nick Silver, Jessica Elkin, Sonal Shah INTERNET The Actuary: www.theactuary.com Institute and Faculty of Actuaries: www.actuaries.org.uk Circulation 27,431 (July 2015 to June 2016)
PRINT Southernprint
SUBSCRIPTIONS Subscriptions from outside the actuarial profession: UK: £100 per annum. Europe: £130 per annum, rest of the world: £160 per annum. Contact: The Institute and Faculty of Actuaries, 7th floor, Holborn Gate, 326-330 High Holborn, London WC1V 7PP. T +44 (0)20 7632 2100 E kate.pearce@actuaries.org.uk. Students on actuarial courses may join and receive The Actuary as part of their membership. Apply to: Membership Department, The Institute and Faculty of Actuaries, Level 2 Exchange Crescent, 7 Conference Square, Edinburgh EH3 8RA. T +44 (0)131 240 1325 E membership@actuaries.org.uk Changes of address: please notify the membership department. Delivery queries: contact Rachel Young E rachel.young@redactive.co.uk Published by the Institute and Faculty of Actuaries (IFoA) The editor and the IFoA are not responsible for the opinions put forward in The Actuary. No part of this publication may be reproduced, stored or transmitted in any form, or by any means, without prior written permission of the copyright owners. While every effort is made to ensure the accuracy of the content, the publisher and its contributors accept no responsibility for any material contained herein. © Institute and Faculty of Actuaries, April 2018 All rights reserved ISSN 0960-457X
4 | THE ACTUARY | APRIL 2018
04 EDITORIAL•CT__The Actuary 4
FRANCISCO SEBASTIAN
Surviving change Professor Stephen Hawking, one of the greatest thinkers of our time, sadly passed away in March. His research on gravitational singularity changed the orbit of theoretical physics and cosmology. And his non-conformist personality earned him a place in our hearts. This note is a humble tribute to Hawking’s positive view of change. He affirmed that “intelligence is the ability to adapt to change”, and change is constant in life. The actuarial profession is certainly not exempt. Therefore we need to take an intelligent approach to successfully adapt. In the current issue, The Actuary raises several topics that are changing the dynamics of the actuarial profession. Jennifer Strickland and Kyle Audley provide a great example of how to anticipate change in the political environment: they assess how several Brexit scenarios could affect insurance firms on Solvency II and other relevant regulations (p24). Quintin Rayer discusses challenges and opportunities from adding ethical and sustainability factors into investments (p18). This rapidly developing trend has important implications for actuaries and investment professionals, as it affects pension funds, insurers and other investors. Continuing with the change theme from a more human angle, Rachael Docking explains how adverse factors make it hard for certain groups to adjust to the later stages of life (p26). And in our interview this issue, Anthony Painter, director of the Action & Research Centre at the RSA, discusses universal basic income, a concept that defies the current welfare system (p14). Leaving aside the economic controversy Painter’s ideas may trigger, he prompts two issues actuaries are familiar with: the cost and sustainability that defined benefit schemes entail and the threat to the actuarial profession (as we know it) that the fast-evolving technology landscape may pose. Hopefully the topics discussed in this issue will help readers smoothly and intelligently navigate through change. Enjoy the read!
FRANCISCO SEBASTIAN EDITOR editor@theactuary.com
www.theactuary.com
03/04/2018 12:44