TheActuaryJuly2014

JULY 2014 theactuary.com

Interview: Nick Salter

The magazine of the actuarial profession

The new president on his international strategy

Finance Curved time for behavioural investing

Soft skills Meeting objectives, better results

Education The Actuary

Introducing the new CertiďŹ ed Actuarial Analyst qualiďŹ cation

VOYAGE OF DISCOVERY Expanding the horizons of the actuarial profession

July 2014

p01_july_cover.indd 1

24/06/2014 10:41

Appointments

What’s underneath?

We look below the surface to spot trends early and show you what is really happening. Whether your need relates to risk management, capital, or strategy, our cutting-edge analysis techniques can help you see deeper than the competition.

Get new insights on your business at uk.milliman.com.

2

THE ACTUARY • May 2013 www.theactuary.com

p02_ACT.07.14.indd 2

24/06/2014 09:46

JULY 2014

Contents

17

2014

Expanding the horizons of the actuarial profession

22

UP FRONT 8

IFoA news

12 People/society news 15 Industry news 16 SIAS events

FEATURES

AT THE BACK

17 Interview: Nick Salter

34 Puzzles

The new president of the Institute and Faculty of Actuaries tells Kelvin Chamunorwa about his international focus for the year ahead and comments on the profession’s strategy

Try the latest cryptic crossword and Mensa puzzles

37 Student Jessica Elkin finds the upside of having to work through summer when there are interns to lean on

20 Finance: Curved time

OPINION

David Blake and John Pickles examine how our preference for time influences the way we value investments

22 Insurance: Eastern promise 5

Editorial Kelvin Chamunorwa highlights the international appeal of actuarial skills

6

Letters Readers’ views on Council responsibilities and the IFoA’s standpoint on the qualification process

7

President’s comment In his first article as president, Nick Salter champions the IFoA’s global presence and the range of skills actuaries can bring to many new areas

Faisal Zai looks at how Islamic Takaful insurance is growing as the burgeoning economies of MINT countries begin to make their mark

38 Actuary of the future Katie Johnson of Hodge Lifetime

38 Appointments and moves

ONLINE

24 Soft skills: Meeting objectives Alan Palmer considers the benefits of shorter meetings, quicker results and better relations

Available online Visit: www.theactuary.com/is2014

26 Pensions: Turning the tide in Oz? Countries worldwide are trying to balance provision of adequate retirement incomes with financial sustainability. Stephen Huppert reviews Australia’s retirement system

30 Education: Foot on the ladder Jenni Hughes provides an overview of the Certified Actuarial Analyst qualification

MORE CONTENT ONLINE Additional content can be found at www.theactuary.com

COVER: VINCE FRASER / ILLUSTRATION: BEN THE ILLUSTRATOR

p03_July_contents_1•CT.indd 3

WRITER OF THE MONTH Alan Palmer wins a £50 book token for his feature on Meeting Objectives courtesy of SIAS

July 2014 • THE ACTUARY 3 www.theactuary.com

25/06/2014 09:18

Appointments

6

*

We know our markets.

Due to demographic changes and constantly increasing life expectancy, exposure to longevity becomes a major issue for insurance companies and pension providers worldwide. We provide specialist expertise and innovative reinsurance solutions to support our clients in facing their challenges.

* hours per day is the average worldwide increase in life expectancy of newborns since 1990

4

www.hannover-re.com THE ACTUARY • May 2013 www.theactuary.com

p04_ACT.07.14.indd 4

24/06/2014 09:53

Opinion Editorial theactuary.com

Publisher Redactive Media Group 17-18 Britton Street, London EC1M 5TP +44 (0)20 7880 6200 Editor, Redactive finance division Mike Thatcher Publishing director Joanna Marsh Sub-editors Kathryn Manning Caroline Taylor News editor Vivienne Russell +44 (0)20 7324 2788 vivienne.russell@redactive.co.uk News reporter Judith Ugwumadu +44 (0)20 7324 2794 judith@redactive.co.uk Editorial assistant Tania Forrester tania.forrester@redactive.co.uk Sales manager Chris Dooley +44 (0)20 7880 8545 chris.dooley@redactive.co.uk Divisional director of digital and recruitment sales John Seaman +44 (0)20 7880 8541 john.seaman@redactive.co.uk

editor@theactuary.com

Internet The Actuary: www.theactuary.com Staple Inn Actuarial Society: www.sias.org.uk Institute and Faculty of Actuaries: www.actuaries.org.uk Managing editor Sharon Maguire +44 (0)20 7880 6246 sharon.maguire@redactive.co.uk Editor Kelvin Chamunorwa editor@theactuary.com Features editors Jeremy Lee, pensions, investment, ERM, banking Richard Purcell Richard Schneider, life, Solvency II, mortality/longevity, modelling and software Sonal Shah, GI, reinsurance, environment, careers (UK) Helen Lau, GI, reinsurance, environment, careers Areti Kalkani, International projects Contact: features@theactuary.com People/society news editor Yvonne Wan social@theactuary.com Student page editor Jessica Elkin student@theactuary.com Arts page arts@theactuary.com

Senior designer Gene Cornelius

Profession news editor Catherine Murray +44 (0)20 7632 2198 catherine.murray@actuaries.org.uk

Picture editor Akin Falope

SIAS representative Titas Bakanauskas

Production executive Rachel Young +44 (0)20 7880 6209 rachel.young@redactive.co.uk

Editorial advisory panel Peter Tompkins (chairman), David Campbell, Matthew Edwards, Martin Lunnon, Sherdin Omar, Richard Purcell, Nick Silver, Andrew Smith

Print Polestar Colchester

Circulation 24,028 (July 2012 to June 2013)

Subscriptions For subscriptions from outside the actuarial profession, UK: £90 per annum/£8.50 per copy. Europe: £110 per annum, rest of the world: £130 per annum. Contact: Catherine Murray, The Institute and Faculty of Actuaries, Staple Inn, High Holborn, London WC1V 7QT. T +44 (0)20 7632 2100 E catherine.murray@actuaries.org.uk Students on actuarial science courses may join and they will receive The Actuary as part of their membership. Apply to: Membership Department, The Institute and Faculty of Actuaries, Maclaurin House, 18 Dublin Street, Edinburgh EH1 3PP. T +44 (0)131 240 1325 E membership@actuaries.org.uk Changes of address should inform the membership department as above.

For delivery queries, contact: Rachel Young E rachel.young@redactive.co.uk Published by the Staple Inn Actuarial Society The editor, The Institute and Faculty of Actuaries and Staple Inn Actuarial Society 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, electronic, mechanical, photocopying, recording or otherwise, 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.

Important information for contributors to The Actuary By submitting content for publication you confirm that: (a) You (and/or other named contributors) are the sole author(s) of the content submitted; (b) The content you submit is original and has not previously been published (unless you specifically advise us to the contrary); (c) You haven’t previously licensed the use of the content you submit; (d) So far as you are aware, the content submitted will not infringe any third-party rights, be defamatory or in any way illegal.

Whistlestop tour Kelvin Chamunorwa highlights the international appeal of actuarial skills and considers the expanding geographic reach of the profession According to Robert Peston, economics editor for BBC News, Arsenal’s Emirates football stadium in London could seat every actuary in the world.

This is hardly scoop of the year, but it is a striking fact when I consider the wide geographic reach of our relatively small, but growing, profession.

One of the furthest places from London, Wellington in New Zealand, is home to many actuaries and I recently found out about an actuary doing work in Ouagadougou, Burkina Faso.

The buzz of the World Cup has been unavoidable, though unlike in 2010, it’s not because of the sound of the controversial vuvuzelas! It is fitting, therefore, that in this World Cup year, the articles in The Actuary this month cover topics in each continental region that is represented by the teams taking part in the tournament. This includes contributions from a number of actuarial students on our website – each future actuary provides insight into the local matters they face in their work and how they find study and life in their country of residence.

Actuarial skills travel, and they are being applied to address financial risk issues all over the world. In the case of the Institute and Faculty of Actuaries, membership is increasing and the pace is faster outside its UK base.

I believe that this will be compounded by the new Certified Actuarial Analyst technical qualification that was launched in May. One of the aims of the new IFoA president, Nick Salter, is testament to the need to adequately serve an increasingly dispersed membership.

I interviewed Salter to find out more about his plans for his term as president and asked for his thoughts on a range of other important issues for our profession (page 17).

Wherever you are, I hope that you enjoy reading the material in this edition, including the international supplement online (www.theactuary.com/is2014).

“Actuarial skills travel, and they are being applied to address financial risk issues all over the world”

Kelvin Chamunorwa Editor

© SIAS July 2014 All rights reserved ISSN 0960-457X

LIKE US ON FACEBOOK www.facebook.com/ TheActuaryMagazine

FOLLOW US ON TWITTER @TheActuaryMag @ActuaryEditor

JOIN US ON LINKEDIN www.linkedin.com/groups/Actuarymagazine-UK-Group-3751335

July 2014 • THE ACTUARY 5 www.theactuary.com

p05_july_editorial_FINAL•CT.indd 5

25/06/2014 09:19

Opinion Letters to the editor editor@theactuary.com

Cabinet responsibly

Have your say online

More comments are posted online about news stories published on www.theactuary.com.

Answers, of a sort So you expected to get answers to the questions in my letter (June 2014, bit.ly/1irlzWG)? Well for a set of questions about data analytics and data mining, you have to perform a bit of analytics yourself – so below are tips on one route to get to the answers.

1. Who was Thomas Bayes and what is he famous for?

Wikipedia 2 What is the GLM? Wikipedia 3. What is boot strapping?

Wikipedia – search “bootstrapping (statistics)” 4. What sort of software is R and can you use it?

First half: Wikipedia; second half: up to the reader 5. What are the four Vs? Google “Four V’s of Big Data” 6. In the context of my letter, what can fire hose deliver?

Google “fire hose data” 7. What is Nate Silver famous for? Wikipedia 8. Name the leading actress in Zero Dark Thirty and what is the relevance of this question?

First half: Wikipedia; second half: go to the ten minutes starting at 1 hour 40 minutes to see a risk-based way of decision-taking in the US which I have not seen operate in the UK (the reader is left to judge how often this approach is actually used in the US) 9. What is the difference you might get in newspaper headlines if you issue a press release saying: (a) up to 100,000 people may die; or alternatively (b) the chances of there being more than 100,000 deaths is very small This is anecdotal at present to the best of my knowledge, but if you issue (a), you should not be surprised with a headline such as “100,000 deaths forecast” and if you issue (b), you should not be surprised if there is no headline, as people don’t understand what is being said. The point behind this is just to show how critical style of communication and words are to public understanding of uncertainty – but is any of this taught in the exams?

10. Have you ever tweeted?

Be honest.

Thanks must go to those in government, academia, business and, most importantly, GAD, who have brought me up to speed on the issues raised by the questions and answers.

And I’m still only 9.5 out of 10 if I’m honest on question 4.

Trevor Llanwarne 1 May

MORE LETTERS ONLINE More letters are available online at www.theactuary.com/opinion

6

I am a Council member but this letter represents my personal views.

I write to express my concern at a new requirement this year in the ‘Task and person specification’ for Council members, of which members (and candidates!) may be unaware: ‘Except in special circumstances, to take on Cabinet responsibility and publicly support all decisions made by Council even if not privately agreed with’.

There was significant discussion in Council about using the phrase Cabinet responsibility. For my own take on this, see the IFoA matters! menu at actuary21c.com. My view is that Cabinet responsibility is not a good fit for Council members, unless she/he happens to be on the management board.

A rough analogy: MPs are elected to represent their constituents and party.

Cabinet members (chosen by the prime minister) must support the government. Council members are elected to represent members. One of Council’s goals is to take into account the interests of all members whatever their location or practice area. Sometimes Council members are elected on particular platforms and then have a responsibility if elected to try and meet (to the extent that they can in a Council of 30-32 people) the goals they mentioned.

The presidential team and directors, and the management board seem to me to be akin to the government and Cabinet, whereas Council members who are neither on the management board nor in the presidential team seem to be similar to MPs. Does this matter? I see Cabinet responsibility as introducing a subtle change in IFoA governance. Shouldn’t this be debated with members, rather than quietly appearing in the middle of 22 things that the IFoA expects of its Council members?

Patrick Lee, Council responsibly 18 June

Right to reply In response to Mr Khan’s letter, ‘Further Maths’ (April 2014), and the subsequent discussion, I think it is worth pointing out that the purpose of our qualification process is to prepare actuaries who, on qualification, are fit for purpose.

Being fit for purpose does certainly imply having very strong mathematical skills but also needs more. In particular, actuaries need to be capable of operating professionally and effectively in the modern business environment with a thorough understanding of a specialist practice area.

The reason for including a minimum of three years’ worth of work-based skills as a pre-requirement for qualification is to ensure qualifying Fellows acquire a range of practical experience alongside their exam passes. As Trevor Llanwarne points out in his letter (June 2014), there is a need also to ensure that actuaries can continue to be relevant as business needs change.

We update the syllabus each year in conjunction with Practice Boards e.g. to introduce material on Solvency II. We also consider the need for new subjects, notably with Enterprise Risk Management (ST9) which has been adopted by many overseas associations for the Chartered Enterprise Risk Actuary qualification. We currently have a working group looking at a possible specialist syllabus for data science/big data.

Strong mathematical skills will always be a trademark of actuaries but there are other skills and competences that contribute to making actuaries fit for purpose now and in the future.

We do not offer an academic qualification. It is a high quality professional qualification and mathematical excellence is not enough in itself.

Trevor Watkins, IFoA director of education 4 June

The editor welcomes readers’ letters but reserves the right to edit them for publication. Please email editor@theactuary.com.

The deadline for receiving letters for the August issue is 21 July 2014.

THE ACTUARY • July 2014 www.theactuary.com

p06_July_letters•SEMIFINALnew•CT.indd 6

25/06/2014 09:20

›

Opinion President’s comment

Nick Salter is the president of the Institute and Faculty of Actuaries

NICK SALTER

A diverse year ahead Let me open my first article as president of the IFoA by expressing a warm and heartfelt hello to all members and other readers of The Actuary. I look forward to meeting many of you over the next 12 months, at events both inside and outside of the UK. I am eager to hear about what you are doing and the challenges that you face, and I hope that you can take the time, whether in writing or in person, to share your experiences with me.

The actuarial profession faces a great many challenges, and over the past year David Hare has addressed some of these under the theme of ‘relevance’. Looking ahead at my year as president, I would very much like for us all to consider ‘diversity’. This may sound like a very different theme to David’s but actually it has a lot in common, and I shall be building on the great work that David has started.

We are an international global body with a diverse membership around the world that is getting more diverse by the day. My aim is to help the IFoA further harness the talents and expertise of our global membership within our fantastic team of volunteers who provide intellectual capacity and leadership across the organisation. No-one should feel that they cannot offer their talents to the profession by virtue of their geographical location or background.

To use David’s phrase, this will help to ensure our ‘relevance’ as an organisation to all our members, and to advance our profession forward around the world. However, this is not all that I mean by diversity.

What is the actuarial skill set? I have been undertaking some work to define this, which I look forward to sharing with you all soon.

However, for the purpose of this article I think I am able to summarise it as: actuaries understand risk. We take complex data and create insightful analysis that helps our clients and employers to make difficult decisions and informed business choices.

We do this within a clearly defined ethical and professional framework to which we are all accountable.

Put like that, it is clear that this is a valuable, regulated skill set that can be applied to many roles and types of organisation. Yet actuaries are known not for the skills that they have, but the areas where those skills are applied. This is something I

Nick Salter champions the IFoA’s global presence, and the range of skills actuaries can bring to many areas would like to help the actuarial profession to tackle.

Working outside of silos is already happening of course. The Resource and Environment Board is producing insights that feed into the many areas, traditional and non-traditional, that actuaries work in.

Recent research by the Pensions and Long-term Care Working Party utilised expertise from the health, life and pensions sectors.

A growing number of our members are already applying their skills to a range of roles and organisations that are not traditionally actuarial, leading the way and highlighting that the actuarial skill set has broad application.

There are many ways that this can be encouraged if members work in partnership with their professional body to do so. For example, better communication of the skills that we have as actuaries within our organisations, or perhaps by applying for roles that aren’t traditionally ‘actuarial’. Also, the ability to illustrate the value that assigning

those skills to non-traditional areas brings – through research for instance. And indeed by using our CPD requirements to learn about work being undertaken outside of our silos – are there techniques that colleagues working in other sectors are utilising that could benefit you in your role?

I will be working with the Executive and Council to help promote diversity in this way over the next year. As I mentioned earlier, I will be taking the time to meet members of regional societies, to learn more about the challenges that you face, and to hear your thoughts about how we can progress diversity as a professional body. I would urge that if we want to move forward as a profession, and remain ‘relevant’, we must all strive to consider diversity and help to change the perception of actuaries. a

“No-one should feel they cannot offer their talents by virtue of their geographical location or background”

Read more from Nick Salter, in his interview with The Actuary editor Kelvin Chamunorwa, on page 17

July 2014 • THE ACTUARY www.theactuary.com

p07_july_pres_comment•FINAL•CT.indd 7

7

24/06/2014 11:33

News IFoA NEWS UPDATES FROM THE ACTUARIAL PROFESSION

Upfront Opinion CEO’s comment

New pensions policy paper

Derek Cribb explains how the IFoA’s strategy is helping to ensure a uniform member experience

Following the surprise announcement in the 2014 Budget that pensions will become more flexible, the IFoA has published a policy paper for pensions. This reflects the views of the Life and Pension Boards, and was approved by the Public Affairs and Communications Committee.

Philip Doggart, policy manager, undertook a number of visits to regional societies in May and June to better garner the views of regional UK members and promote the paper. These meetings have seen participation by more than 300 members.

“The pensions policy paper is a road map that sets out the IFoA’s position on pensions following the 2014 Budget. It clearly highlights our priorities and concerns. Work will be undertaken by volunteers on the Boards and within working parties over the coming months to thoroughly investigate the challenges, opportunities and implications of the new flexible pensions regime, with full support from the Executive,” he said.

To play a part in further developing the pensions policy narrative outlined in this document, contact Debbie Atkins (debbie.atkins@actuaries.org.uk) or the Pensions and Life Boards at the IFoA. To read the paper go to bit.ly/SBSf3g

Engagement goes global Derek Cribb is the chief executive of the Institute and Faculty of Actuaries

on 30 June, when the Council election results were announced. It also marked the formal handover of the presidency from David Hare to Nick Salter, with Fiona Morrison coming in as president-elect. In an ever-changing world, where our members are moving into new areas of business in a growing number of jurisdictions, Nick’s presidential theme of diversity certainly resonates.

I would like to take this opportunity to thank David Hare for his commitment, passion and enthusiasm, which have been the hallmarks of his presidency. David’s dedication over the past two years on the presidential team has helped transform our relationship with members and stakeholders both in the UK and around the world.

Being the figurehead of the IFoA is a busy and important volunteer role, but one which is shared between the three members that make up the presidential team. By carving up responsibilities between the presidents, we can help ensure that the member experience is as similar as possible, whether in Norwich or Nairobi. While all our presidents undertake engagements in the UK, they are each given specific responsibility for one of our international priority areas.

This ensures a period of continuity for three years, which has proved extremely successful in helping us build and maintain our profile in these regions with our members and external stakeholders. So, looking at the current presidential team, Nick has responsibility for North America and Africa, David the Far East, and Fiona will lead on our relations in India and with the International Actuarial Association.

Finally, a quick update on the Certified Actuarial Analyst qualification (CAA). As you will be aware, in May we opened registration for the entry test exam, Module 0, for the new qualification.

I am delighted to report that, at the time of writing, we had received registrations from over 100 candidates in over 30 countries – making it a truly global professional qualification.

You can read more about this on page 30.

For more information on the IFoA’s International Strategy and how it supports our members, please visit the summary at bit.ly/1if8WOG

DEREK CRIBB

8

The IFoA held its annual general meeting

Genes, genomics, genetics: human or hubris?

On 15 May, the IFoA was delighted to receive Lord Robert Winston as this year’s speaker at the IFoA Spring Lecture. Delegates were taken through what Lord Winston sees as key challenges in public health.

While genomic medicine and analysis of the human make-up has had some impact on managing certain rare diseases, Lord Winston argued that environmental factors and other social conditions can play a bigger part in the development of certain diseases and the increasing prevalence of mental health conditions.

Read more about Lord Robert Winston in a future issue of The Actuary and listen to the lecture online at bit.ly/IFoAspringlecture

THE ACTUARY • July 2014 www.theactuary.com

p08-11_July_IFoA_news_FINAL•CT.indd 8

24/06/2014 10:16

IFoA elects six new Honorary Fellows The IFoA is delighted to announce that six outstanding individuals have been elected to join as Honorary Fellows. They are: ● Professor Wai-Sum Chan, professor of finance at the Chinese University of Hong Kong; ● Dr Peter England, worldwide expert in stochastic reserving techniques; ● Professor Karel Van Hulle, former head of insurance and pensions at the European Commission; ● Professor Carol Jagger, AXA Chair in Epidemiology of Ageing at Newcastle University’s Institute for Ageing and Health; ● Sir Philip Mawer, former chair of the IFoA’s Professional Regulation Executive Committee, now known as the Regulation Board; and ● Professor Hailiang Yang, professor in the department of statistics and actuarial science at the University of Hong Kong.

Professor Karel Van Hulle (above left) and Dr Peter England (above right) were the first of the six to be presented with their Honorary Fellowship Dr England and Professor Van Hulle received their Honorary Fellowship at the IFoA’s annual general meeting on 30 June. Professor Jagger and Sir Philip Mawer will be presented with their Honorary Fellowships at the IFoA’s Autumn Lecture in

Edinburgh on 1 October and Professor Chan and Professor Yang will receive their Honorary Fellowships in Hong Kong later this year.

The IFoA has over 100 Honorary Fellows, who are leaders in their fields of business, academia, government and other public bodies, both in the UK and internationally.

New Honorary Fellows are elected by Fellows and Associates of the IFoA. The candidates have been invited on the basis of achieving distinction in fields relating to actuarial science or giving significant service to the actuarial profession, and will have an ongoing relationship with the IFoA. We welcome all six new Honorary Fellows to the IFoA and very much look forward to their involvement over the coming years.

Full biographies of all the new Honorary Fellows can be found on the IFoA’s website at bit.ly/IFoAHonoraryFellows

Research from Pensions and Long Term Care Working Party hits the headlines If you read any UK newspaper on 12 May, the likelihood is that you will have seen news headlines featuring IFoA research from the Pensions and Long Term Care Working Party that considered the social care cap that the government is introducing in 2016.

The research report, entitled ‘How pensions can help meet consumer needs under the new social care regime’, considered the impact that the government’s £72,000 cap on care costs for the over-65s would have on long-term care in the UK. Care costs are split under three headings: daily living costs; local authority set care costs; and top-up care costs. The cap only applies in relation to local authority set care costs. The report found that, although the cap is set at £72,000, people are expected to spend, on average, some £140,000 on care costs before reaching it. This can increase to around

£250,000, even allowing for the cap, if an individual is in long-term care for 10 years.

However, it also found significant regional variations in expected care costs and the time it is expected to take for the care cap to apply.

The report also considered how a new, more flexible pensions regime could be used to help people meet their long-term care costs. One of the ideas outlined was a new Pension Care Fund. This would ringfence money within a pension for care costs – when saving or after retirement. The money would be invested as stipulated by the tax rules for pensions and if not used for care would be exempt from inheritance tax, with the condition that the money could only be passed on for use for long-term care.

The research received a lot of media coverage and generated a buzz of conversation on social

Council members announced For the Scottish Constituency, Andy Rear, Karen Grant and Feifei Zhang became Council members at the AGM on 30 June 2014. Those elected to represent the General Constituency were announced at the AGM and details are on the website. www.actuaries.org.uk/about-us/pages/council-election-2014

GETTY

p08-11_July_IFoA_news_FINAL•CT.indd 9

media channels. To date, there have been over 200 mentions of the working party’s research and Thomas Kenny, chair of the Pensions and Long Term Care’s Products Research Group (pictured above), was interviewed for broadcast outlets that included the BBC and LBC Radio.

Following media dissemination of the research, the public affairs team at the IFoA has been liaising with a range of stakeholders to further discuss the reports findings.

To read the full research report, go to bit.ly/1n7eMPf

July 2014 • THE ACTUARY www.theactuary.com

9

24/06/2014 10:16

News IFoA NEWS UPDATES FROM THE IFOA

CPD: helping you to get it right Now the 2013/2014 continuing professional development (CPD) year has ended, we would like to remind Category 2 members to ensure that, by 31 July, they update their online CPD records with all activities completed between 1 July 2013 and 30 June 2014. Below is a useful summary of CPD requirements and tips on recording.

Remember, you may be asked to provide evidence of your activities if you are selected for monitoring.

CPD checklist Category 2 ● Between 15 and 20 hours of activities (depending on activities chosen). ● At least one external event. ● Stage 2 or Stage 3 as relevant to you.

Remember your PST activities count towards your overall requirement!

Recording CPD – how to get it right ● Remember to record a learning outcome for all private study activities. ● Ensure that the dates or activities and hours gained are correctly recorded. ● Don’t group activities run by the same

provider together as one entry – each activity or event should be logged separately.

on the IFoA’s website at bit.ly/1kqy13m

2014/2015 CPD scheme Professional skills training Stage 2: Professional skills course Members are offered this course as a face-to-face event or online course. For more information, go to bit.ly/IFoAProfSkills Stage 3: Professionalism for experienced members A series of short video clips is available, free of charge, via the IFoA’s website.

Members can access the videos at bit.ly/1i44aDu Members can also count events or activities run by external providers as Stage 3 activities – just make sure they meet the requirements set out in the PST handbook For more information about CPD recording for the 2013/2014 year, go to the reporting and recording pages of the IFoA’s website at bit.ly/1kQILgl, or contact the membership team at cpd_feedback@ actuaries.org.uk. Members can also find answers to some frequently asked questions

The 2014/2015 CPD scheme, which came into effect on 1 July 2014, aims to make things easier for members by bringing all their professional development obligations together in one place.

Members were sent a tailored email in June, setting out how the new scheme affects them personally. If you did not receive your email or have any questions about the new scheme or how it applies to you, please contact us at cpd_feedback@actuaries.org.uk.

Owing to improvements currently being made to the IFoA’s website, it won’t be possible for members to record any CPD for the 2014/2015 year during the month of July, although they will still be able to record 2013/2014 CPD activities as usual. Members can record any CPD activities completed during July, under the 2014/2015 Scheme, from 1 August 2014.

To learn more about the 2014/2015 Scheme visit the CPD pages of the website and look out for the upcoming article in the August edition of The Actuary.

How much do you know about ?

Volunteer opportunities The IFoA is looking for volunteers with an interest in the operation of the disciplinary process. There are vacancies available on the volunteer vacancies page of the website for investigation actuaries and disciplinary pool members.

If you are interested in applying, please go to the website for more details or contact Debbie Atkins, head of volunteer engagement, at debbie.atkins@actuaries.org.uk

10

The CERA qualification combines a robust and forward-looking curriculum underpinned by actuarial science with a strong code of professional conduct and continuing professional development requirements, making it the most advanced and rigorous enterprise risk management (ERM) qualification in the world. Businesses that rely on CERAs can make smarter, more confident decisions based on sound analysis and understanding of their risks. CERAs are working in a range of areas in strategic and leadership positions around the globe.

The CERA Global Association is dedicated to promoting and administering the CERA qualification worldwide and grants actuarial organisations the right to award the qualification to individual actuaries who have satisfied the requisite education and training

requirements set out in the CERA Global Treaty. Currently, there are 15 Treaty Award signatories spanning five continents. The qualification really does open up a world of possibilities for risk management professionals who are looking to stand out from the crowd.

The IFoA has 258 CERAs, with the number worldwide currently standing at just over 2,000.

A CERA pin is available free of charge to all qualified CERAs. If you are a member of the IFoA and would like to request yours, please contact dawn.mcintosh@actuaries.org.uk, providing your actuarial reference number.

If you are a member of another actuarial professional association, please contact them directly.

To find out more about the CERA Global Association or the CERA qualification, visit www.ceraglobal.org

THE ACTUARY • July 2014 www.theactuary.com

p08-11_July_IFoA_news_FINAL•CT.indd 10

24/06/2014 11:33

EVENTS AND Changes to reduced CONFERENCES rate subscriptions NED event: Evolving appetite for risk 08 September Staple Inn Hall, London For details and to book, visit: bit.ly/TN6ROE

The International Mortality and Longevity Symposium 15-17 September Conference Aston, Birmingham For details and to book, visit: bit.ly/1l3UoBo

GIRO Conference 23-26 September Celtic Manor Hotel, Newport For details and to book, visit: bit.ly/1uaTpPp

NED event: Matching the profile of a suitable non-executive director 3 November Staple Inn Hall, London For details and to book, visit: bit.ly/1oWOQXG

SAVE THE DATE Life Conference 9-11 November ICC Birmingham For more information, visit: bit.ly/SBQxyQ

Momentum 2014 3-5 December Edinburgh International Convention Centre For more information, visit: bit.ly/1mLpw48

SHUTTERSTOCK

p08-11_July_IFoA_news_FINAL•CT.indd 11

The new subscription year sees the introduction of a ‘Retired’ subscription rate category, linked to the 2014/2015 continuing professional development (CPD) scheme, where eligible members can apply for a reduced subscription rate. Members can be classified as retired if they are not in paid work that relies on their actuarial training and experience, or on their membership of the IFoA, and if they do not intend to return to such work in the foreseeable future.

Members may also apply for a reduced rate subscription if their total income from all sources, including pensions and investments, is less than 30 times the full subscription rate applicable to them. For example, if you are a fully regulated Fellow, your total income must be less than 30 times £690, ie £20,700.

Below are some frequently asked questions.

Q. The criteria states your total income from all sources must be less than 30 times the current subscription rate applicable to you. Do you mean the reduced rate of £69?

A. No, the rule refers to the current full subscription rate applicable to you. Members can refer to the application form, which outlines details of maximum total income eligibility according to their membership category. The form can be found on the IFoA’s website at bit.ly/1n8UXXM

Q. What is the reduced rate subscription?

A. The reduced rate remains at £69.

Q. In the past, members could exclude pensions income when applying for the reduced rate. Why has this changed?

A. The main reason is to ensure that we treat members consistently by bringing our definition of ‘total income’ in line with the UK government’s definition of what counts as taxable income. A list of what counts as taxable income can be found on the HMRC website.

Q. I think I am eligible. How do I apply for a reduced rate subscription?

A. Please complete the application form on the IFoA’s website at bit.ly/IFoAReducedSub and return to membership@actuaries.org.uk Q. I am currently unemployed. Must I still fill in the form to apply for a reduced rate?

A. Yes, all eligible members must apply to get the reduced rate.

Q. What is the ‘Retired’ subscription rate?

A. The 2014/2015 rate is £69.

Q. I would like to be classified as ‘Retired’.

What should I do?

A. Contact the membership team at cpd_feedback@actuaries.org.uk

Spotlight on International Mortality and Longevity Symposium 2014 A date not to be missed for your continuing professional development diary is for the International Mortality and Longevity Symposium on 15-17 September in Birmingham. There are many reasons to attend the symposium, which encourages networking and the sharing of ideas and encourages debate between academia, policy-makers and industry from around the world.

If you are an actuary concerned with pricing or reserving for mortality and longevity, or have an interest in better understanding and projecting mortality and longevity, this is the event for you.

Plenary speakers will include: ● Richard Willets, director of longevity at Partnership;

● Robert L Brown, president of the International Actuarial Association; ● Sir Harry Burns, ex-chief medical officer for Scotland and professor of global public health at Strathclyde University; ● Professor Harry Hemingway, director of the Farr Institute of Health Informatics; ● Professor Richard Faragher, chair of the British Society for Research on Ageing; ● Professor Majid Ezzati, chair in global environmental health at Imperial College, London; ● Dr Heather Booth of the Australian Demographic and Social Research Institute; and ● Joseph Lu, head of longevity risk at Legal & General.

For details or to book, visit bit.ly/1l3UoBo

July 2014 • THE ACTUARY www.theactuary.com

11

24/06/2014 11:33

If you have any newsworthy items for these pages please email social@theactuary.com

News People & Society

The cycle of life: London to Morocco Douglas Anderson, a partner at Hymans Robertson, helped to raise over £125,000 for caring charities by cycling from London to Morocco. He was one of three normally desk-bound businessmen – an actuary, a lawyer, Douglas Armstrong, and a social media strategist, Campbell McDermid – who styled themselves as the Fat Dads on Bikes. For the numerically inclined, their 21-day marathon took them over 2,300 miles, a height gain equivalent to climbing Everest four times, just three punctures and somewhere north of 300 croissants.

Anderson picks up the story, “Several people have asked me about my best bits. There were

many to choose from: stunning scenery awash with great weather, many tasty ways to take on calories – there are so many good cheeses out there – several high adrenaline descents, but the best bit was all the warm messages of encouragement from supporters, many of whom were unknown to us. Not only did this lift our spirits when the going got tough, but it was so refreshing to get direct – and often almost instantaneous – audience reaction to the latest photo or blog. This is not the sort of engagement I have ever got when writing about the drier subjects of actuarial valuations, employee benefits or risk. The lovely feedback encourages me to spend more of my time

Andrew O’Brien – 12-in-12 triumph!

Well done to Andrew O’Brien who has completed his impressive 12-in-12 feat raising over £10,000 for the ISIS Foundation. He finished his final run in the Copenhagen Marathon on 18 May 2014 and this is an extract from the final instalment of his blog.

What a race to end on! Copenhagen is a colourful and relaxed city in one of Scandinavia’s most dynamic regions. My day started on Islands Brygge, with runners asked to arrange themselves according to predicted finishing time. Once again I stuck with the four-hour pace group before breaking away towards the end – the norm for my post-stress-fracture marathons.

The crowd support was pretty decent along

much of the route as it looped around the city centre a few times and I kept spotting the kilometre markers intended for much later – reminding me of just how far I still had left to go!

Sadly, after a relatively warm start to the race, the heavens opened and the rain poured down shortly after I broke away from the pace group at around the 36km mark. As I was digging deep, a guy running with a pushchair went speeding past me – complete with a sleeping toddler and racing wheels! But the most surreal moment was still to come. As the rain lashed down around me I caught up with a crew of marathoners running with a Viking

ship – with a pair of runners at the back and front of the boat with another reclining on it like the Queen of Sheba! Feeling flummoxed and fatigued, I kept going.

I’m not prone to grandiose gestures but as I finally closed in on the finish for the very last time I triumphantly shook my fist in the air as I crossed the line, completing my twelfth marathon in the past 12 months.

Hobbling back to the hotel in the rain after the finish – cold and soaked – was an ordeal in itself and I was even tempted to run had my legs not turned to concrete.

I’m grateful for all the amazing support I’ve received and it’s really helped me to keep going.

If you would like to make a donation, visit

www.justgiving.com/ISIS12in12.

Geoffrey Heywood MBE JP (7 April 1916 – 25 May 2014) Geoffrey Heywood was born in Blackpool in 1916 and attended Arnold School. He won a scholarship to Cambridge, but his father encouraged him to follow a career instead. He began work at the Refuge Assurance Company in Manchester, qualifying as a Fellow of the Faculty in 1939, at the young age of 23.

He joined the Royal Artillery at the outbreak of war, serving in North Africa, Italy, Palestine, Greece and Crete, reaching the

12

rank of Major. He was made MBE in 1944, and mentioned in despatches in 1945. He married Joan Lumley in 1941.

After the war Geoffrey joined a small firm of consulting actuaries in Liverpool, Duncan C Fraser & Co (DCF). He qualified as a Fellow of the Institute in 1946, and became senior partner of DCF in 1952, remaining so until he retired in 1986.

Geoffrey was actuary to many pension schemes including the National Water Council and BP.

He established the Universities Superannuation Scheme in Liverpool in 1974, now the largest in the UK. He was the actuary to the Manchester Superannuation Scheme from 1949 and worked there with Sir Harry Page, the Manchester City Treasurer, to persuade the Treasury to allow extended investment powers, eventually permitted under the ct.

1956 Manchester Corporation Act. Geoffrey believed “each man iss a servant to his profession” and

THE ACTUARY • July 2014 www.theactuary.com

p12_13_july_soc_news•FINAL•CT.indd 12

24/06/2014 10:18

LIKE US ON FACEBOOK www.facebook.com/ TheActuaryMagazine

After a brave cycle with colleagues and family from London to Paris, the three self-styled ‘Fat Dads on Bikes’ continued on to Morocco to see how their fundraising had changed lives

FOLLOW US ON TWITTER @TheActuaryMag @ActuaryEditor

JOIN US ON LINKEDIN www.linkedin.com/groups/Actuarymagazine-UK-Group-3751335

encouraging more interactive communications with our firm’s communities.

Our adventure started with 70 friends and family cycling with us from London to Paris, including a dozen from Hymans Robertson.

When we were down to three, publishing our antics on Facebook grew a loyal following.

We were thrilled to receive over 1,500 individual donations for Maggie’s Cancer Centres, the Children’s Hospice Association of Scotland and Carers UK. We also supported Education for All, a charity that helps girls in remote parts of Morocco continue their studies. On reaching Marrakech we were delighted to meet some of the girls whose lives had already been changed for the better.”

On his safe return Douglas said “I strive to use superlatives sparingly, but the Fat Dads’ adventure probably merits one. Certainly my wife, Jill Harrison, said on my safe return that if I ever tried to pull a similar stunt she would reclaim her sponsorship and spend it on shoes.

That had an air of finality about it.”

Himalayan Marathon

WCA celebrates £1m for charity

By Richard Purcell The magnificent Mansion House, home to the Lord Mayor of London, was the setting for the Worshipful Company of Actuaries 2014 annual banquet on 24 April. Nearly 200 members and their family and friends, enjoyed the historic surroundings of one of the most iconic buildings in the city. It was a fitting venue to celebrate both individual excellence and the company’s charitable successes, of which there have been many.

Master of the company, Charles Cowling, announced: “My priority as master has been our charitable efforts, and so I am proud to confirm that, with the support of the Institute and Faculty of Actuaries and The Actuary magazine, the company’s £1m charitable target

was president of the Institute from 1972 to 1974 – the first consulting actuary to hold that post.

He was a founding member of the Association of Consulting Actuaries and founded the International Association of Consulting Actuaries with the late Max Lander. He was deputy chairman of the Mersey Docks and Harbour Board from 1975 to 1985; a director of Barclays Bank Trust Company from 1968 to 1986; a director of the Barclays Unicorn Investment Group from 1977 to 1985 and a member of the

has been reached ahead of schedule”.

The company’s charitable activities have included awarding bursaries and funding research into mathematical education. So fittingly a further £2,000 was donated to the Lord Mayor’s appeal, and £500 to the Mansion House Scholarship Fund on the night. In addition, three prizes for academic excellence in the profession’s specialist technical exams were presented to Heng Wen Kho, Darcelle Salkey and Oliver Gingell. On receiving the prize, Oliver said: “The opulent surroundings together with livery dinner rituals has made the evening truly memorable.”

Principal guest Jonny Ball also spoke about his experience representing the actuarial profession in the recent Lord Mayor’s show.

National Bus Council from 1975 to 1985. Geoffrey served on the 1973 Page Committee to review National Savings.

He was the founding master of the Worshipful Company of Actuaries in 1979. The company now has a Royal Charter and makes considerable annual charitable contributions.

Geoffrey’s wife Joan died earlier this year after 72 years of marriage.

He leaves behind two children, Ted and Corinna.

Obituary by the Worshipful Company of Actuaries

Deaths Mr Michael Gwyn LEWIS died on 23 April 2014, aged 61.

He became a Fellow of the Institute in 1980.

Mr William Graham Christie SHARP died recently, aged 67. He became a Fellow of the Faculty in 1972

James Borrett, of Faraday, came 6th in the Himalayan Kingdom Marathon in Paro, Bhutan on 27 May 2014. He ran this race to raise money and awareness for Myositis, an illness his sister has been suffering from for the last 10 years.

Myositis is a rare, debilitating disease where the muscles become inflamed leading to severe fatigue.

Having trained on flat roads in Peterborough and less than three days to acclimatise, 26 miles between 7,000 and 8,500 feet on the slopes of the Himalayas was always going to be a challenge for James. However, all the runners were lifted by Bhutan, a country where gross national happiness, a core Buddhist value, is a counterpoint to gross national product; where economic growth is a means to achieving more important ends such as cultural heritage, health, education, good governance, ecological diversity and individual wellbeing.

An inspiring pre-race talk was given by world champion ultra-runner Lizzie Hawker and following a small but evocative Buddhist ceremony at the start line everyone was ready.

It was an eventful race which included runners falling into streams and paddy fields much to the amusement of the locals, a participant being bitten by a dog and a number of wrong turnings especially on the isolated tracks high above Paro. Helped by the friendships and camaraderie built up in the days before the race, nearly everyone overcame the mental and physical challenge and managed to reach the end. The resulting feeling of euphoria and accomplishment just reflected what a tough race it had been.

If you would like to make a donation to Myositis UK, please visit www.justgiving.com/ James-Borrett.

For more information visit www.myositis.org.uk

Silver Service Kent Sandom has recently been involved in a reality television show headed by Mary Portas covering the useful employment opportunities for retired people. The programme called Mary’s Silver Service was broadcast on Channel 4 at 8pm on 4, 11 and 18 June.

If you missed any episodes, they are still available to view on 4OD at www.channel4.com/programmes/4od.

We would be delighted to hear from you if you have any newsworthy items for these pages. Please contact Yvonne Wan at social@theactuary.com

July 2014 • THE ACTUARY www.theactuary.com

p12_13_july_soc_news•FINAL•CT.indd 13

13

24/06/2014 10:18

www.theactuaryjobs.com

Advertorial

Why does insurance demand vary across countries?

Understanding the reasons behind the different levels of demand will help us to foresee the countries where we should expect higher/lower growth for the next few years and show us the reason for past growth of markets. It is also a way to highlight various strengths and weaknesses of each market. We concentrated on the OECD Insurance Database of 2010 with 34 countries.

-

Premiums per inhabitant There seems to be a relation between the premiums per inhabitant in each country and GDP per inhabitant. (Àg. 1) As GDP per inhabitant grows, the same happens in the non-life premiums spent per inhabitant. However, this relationship seems to be non-linear with an increase in the latter at a slower rate as the former increases.

On the life side, the relation between life premiums per inhabitant and GDP per inhabitant must be studied considering Luxembourg and Ireland as a special case. The following graph presents the relation between life premiums per inhabitant and GDP per inhabitant for all the OECD countries (excluding Luxembourg and Ireland). (Àg. 2)

-

The social security expenditure per capita, if it is high this creates a crowding out effect on life insurance; Two particular Àscal situations that increase demand through local or international consumers, Luxembourg and Ireland; One particular case, Portugal, where demand is much higher than expected due to bank policies of having more saving insurance products; And Àve particular groups of countries that share similar features in the environment of life insurance demand.

The results obtained for this model explain 99.9% of the observations found in the 34 countries. All the eleven variables are signiÀcant. Even if we do not consider the Àve particular groups of countries the model explains 98.3% of the observations. (Àg. 4)

Fig. 1

As in non-life insurance, we see a relation between life premiums per inhabitant and GDP per inhabitant. However, the life insurance relation seems to be linear. It also appears that for the same level of income per inhabitant there are several countries with different premiums per inhabitant.

What explains premiums per inhabitant?

After studying several alternatives of modelling the premiums per inhabitant, what we called insurance demand, we concluded that non-life insurance demand is different from life insurance demand and that the former also depends on the latter. Because of this connection the model was estimated as two simultaneous equations through Three Stages Least Squares (3SLS).

It was also detected in the non-life and life insurance model that the volatility of the model error depends on the country population. This situation was corrected through the use of Weighted Least Squares inside 3SLS, with each country population being the weight.

Fig. 2

In both cases some dummy variables were used to differentiate particular conditions between countries (with value 1 if the feature is present and 0 otherwise).

Non-Life Model Over the 34 countries studied in life insurance, four variables seem to explain the level of demand in each country: -

-

-

GDP per inhabitant, the most important one, but showing that after a certain level of income increases the demand of insurance does not increase to the same extent; The level of life premiums per inhabitant, since the higher they are the more non-life premiums per inhabitant we have (cross selling is important in insurance); The case of Ireland, where the Àscal attraction of insurers also brings international non-life business; And the level of the private health insurance market and workmen compensation when compared with the public system, a competitor to the insurance companies.

Fig. 3

The results obtained for this model explain 99.9% of the observations in the 34 countries. The seven variables are all highly signiÀcant.

The model without these dummy variables maintains its high degree of explanation of the reality, 98.2%. (Àg. 3)

Fig. 4

The model also shows that non-life premiums per inhabitant decrease if the public system reduces the motivation to have a private health insurance (case 4).

Life Model In life insurance eleven variables appear to explain the level of demand in each country: -

The GDP per inhabitant linear relation, with the level of demand increasing with increased income; The percentage of the population aged over 65 years old, older populations need to rely more on private life insurance;

May 2013 • THE ACTUARY 15

informations@actuarial.pt

Actuarial Grupo Advertorial p15_ACT.07.14.indd 15 FP.indd 1

|

Tel. +351 213 524 719

|

www.theactuary.com www.actuarial.pt

09:45 24/06/2014 09:56

News Industry news@theactuary.com

Pensions legislation dominates Queen’s Speech A Private Pensions Bill, introducing collective defined contribution schemes to the UK, was the centrepiece of the Queen’s speech, the last before the general election In a joint statement ahead of the state opening of Parliament on June 4, Prime Minister David Cameron and the Deputy Prime Minister Nick Clegg claimed that the coalition was making the ‘biggest transformation in the pension system since its inception’ by allowing workers to pool their money into Dutch-style CDCs. As well as making provision for CDCs, the Bill will put the pension ‘guidance guarantee’ announced in the March Budget on the statue book. It will also define the three models of pension scheme – defined benefit, defined contribution and defined ambition – by the ‘pension promise’ on offer.

A separate Pensions Tax Bill will change the tax rules on pension pots announced by the chancellor in the Budget and allow savings to be withdrawn at marginal rates of income tax.

Nick Salter, president-elect of the Institute and Faculty of Actuaries (IFoA), said additional flexibilities for pension scheme members and employers were welcome, but sounded a note of caution over the pace of change, saying it could lead to unintended consequences.

At the National Association of Pension Funds, chief executive Joanne Segars said the ‘real goal’ was for CDC schemes to be operating at scale.

See more at: bit.ly/1x6Ukos

Actuaries back TPR’s new defined benefit funding code Actuaries have welcomed The Pensions Regulator’s revised code of practice on the funding of defined benefit schemes, saying it strikes the “right balance” Following a lengthy consultation exercise, the TPR published the new, shorter code, entitled Funding DB Benefits. The code has been laid before Parliament and is expected to come into force in the next few months.

Stephen Soper, TPR’s interim chief executive, said: “The revised DB funding code and strategy set out our expectations of trustees, and how we will balance our current member and PPF protection objectives with our new objective to minimise any adverse impact on the sustainable growth of an employer.”

Among the changes it makes are: a requirement for schemes to demonstrate more clearly a “proportionate and positive” stance with regard to risk; and a change in the emphasis on “reasonable affordability”.

IFoA president-elect Nick Salter welcomed the emphasis on a more proportionate approach to managing risk. “The focus on identification, evaluation and monitoring of residual scheme risks rather than elimination of all risk, in our view, strikes the right balance.”

See more at: bit.ly/1s5jHab

MORE BREAKING NEWS ONLINE Visit www.theactuary.com for up-to-date news and to register for weekly news alerts

Budget changes prompt FCA to revise retirement study The Financial Conduct Authority has updated the terms of reference for its market study into retirement income following the pension changes announced in the March Budget. The market study was announced in February after the regulator found that the annuity market was “disorderly” and not working well for consumers. bit.ly/1jB2aNJ

EIOPA issues Solvency II consultation The European Insurance and Occupational Pension Authority (EIOPA) has issued its first Solvency II consultation on draft guidelines for Pillars I and II, together with an impact assessment study. Included in EIOPA’s consultation is a paper on Pillar I, covering guidance on technical provisions, own funds, the standard formula solvency capital requirement and group solvency. bit.ly/1nkMxv4

UK actuaries in demand, says OAC Global demand for the services of UK-based actuaries is on the rise thanks to major regulatory change such as Solvency II and Basel II, consultants OAC have claimed. According to the firm, British actuarial standards are highly regarded throughout the world and it named the UK as the “home of the actuarial profession”. bit.ly/1kRVpH2

Institute warns on ‘reckless’ retirement reforms The Pensions Institute has warned that the government’s ‘reckless’ pension reforms risk turning private sector defined contribution funds into a savings scheme that will not provide an income for life.

In a highly critical report, the institute today claimed that the March Budget, which removed the requirement to purchase an annuity, was likely to lead to thousands of retirees running out of money in their old age.

It called for the development of a decumulation product – where accumulated assets during an employee’s working life is used to fund their retirement income – to be integrated into auto-enrolment.

Pensions Institute director Professor David Blake said there was an urgent need to move away from retail decumulation products, such as individual drawdown and retail annuities, due to high costs and poor governance.

“It is essential the decumulation stage of a DC is institutionalised in the same way auto-enrolment has institutionalised the accumulation stage, rescuing pension savers from the high charges and poor investment strategies of retail personal pensions,” Blake said.

See more at: bit.ly/1ycB4Gz

ACA urges ministers to ‘go further’ on DB flexibility The Association of Consulting Actuaries has urged the government to give greater flexibility to members of defined benefit pension schemes and allow them to cash out their income directly rather than transferring it to a defined contribution scheme.

The Treasury’s Freedom and choice in pensions consultation paper, published in March following the Budget, is seeking views on aspects of the government’s flagship pension changes. One of its specific proposals is a ban on members of DB schemes from transferring their funds out into DC schemes.

However, the ACA said this would present significant new restrictions for both scheme members and employers.

“It will reduce the flexibility employers have to offer options that may suit members, and damage the ability that employers currently have to manage pension scheme costs and risks,” said ACA chair David Fairs.

“Furthermore, the practical consequences of a ban are that it would likely contain loopholes, and impose unintended consequences on schemes which are hybrid or more complex in nature.”

See more at: bit.ly/1l88798

July 2014 • THE ACTUARY 15 www.theactuary.com

p15_july_ind_news•FINAL•CT.indd 15

24/06/2014 10:19

FRIDAY 25 JULY

SOCIAL EVENT NT

SIAS boat party Temple Pier Victoria Embankment London, WC2R 2PN Tickets available from 30 June Please email social@sias.org.uk Members £21 Non-members £26 Price includes a complimentary Pimms, flower garland and BBQ buffet on arrival 6.30pm start TUESDAY 5 AUGUST

The future role of actuaries By members of the Education Team from the IFoA Staple Inn Hall, High Holborn, London, WC1V 7QJ

PROGRAMME ME TALK

We will be introducing the current International Actuarial Association discussion on the future role of actuaries and its impact on the qualification process, risk management, ‘big data’, and the role of the CERA qualification, alongside the balance of softer skills and technical skills.

Take this opportunity to get involved in the discussion in person on the day, or via live tweeting available before, during and after the talk #SIASAug14 – comments and questions welcome!

An additional bottle of champagne will be available to the best online contribution!

Refreshments will be served from 5.30pm with the talk starting promptly at 6.00pm. There is no need to register in advance for this meeting and non-members are welcome.

5.30pm start

SATURDAY 30 AUGUST

SAVE THE DATE! SIAS Sports Tournament 2014 PlayOn Sports, 100 Prestons Road, Wood Wharf, London, E14 9SB. Nearest station – Canary Wharf / Blackwall From 10am onwards

SOCIAL EVENT

Something a little different this year. Join the SIAS sports tournament and compete against fellow actuaries and friends in 5-a-side football, mixed netball and dodge ball all in one day!

The format of the tournament is as follows: • 16 teams, split into two groups • For each sport all 8 teams will play each other, then first and second place for both groups in each sport progress to the finals • The winners of each sport will be presented with trophies and prizes.

Places are limited and will be offered on a first come, first served basis. Email social@sias.org.uk to register your team with the following information from 30 June: a) Team captain name, SIAS membership status, mobile number and email address b) Names of players and SIAS membership status c) Team name If you do not have enough players to form a team please email us and we will try to allocate places.

Entry is £15 per person for SIAS members and £20 per person for non-SIAS members. Teams are a minimum of 5 players and can be mixed – no rules on gender split.

Please note refreshments will not be provided, but the venue has a bar and bar food options.

MORE EVENTS ONLINE For details of events, visit www.sias.org.uk

16

SIAS IS ON TWITTER! Follow us on @SIAScommittee for latest news on meetings, socials and more!

SIAS IS ON FACEBOOK! Check out the SIAS Facebook page for photos from the latest social events

THE ACTUARY • July 2014 www.theactuary.com

p16_july_sias•FINAL•CT.indd 16

24/06/2014 10:27

On my agenda features@theactuary.com

Nick Salter, the new president of the Institute and Faculty of Actuaries, tells Kelvin Chamunorwa about his international focus for the year ahead and comments on the profession’s strategy in a number of other areas The beginning of the interview with Nick Salter does not go to plan. Before I can ask the first question, the new president of the Institute and Faculty of Actuaries turns the tables and asks about a member interest group for southern African actuaries which I’m involved with.

The reason for his interest soon becomes clear, however, as he points out that a key focus of his year as president is to ensure a thriving international membership.

The affable and very well-spoken Salter tells me: “With 40% of our members now based outside the UK, it is important that we keep up to speed with what’s going on elsewhere in the world, to ensure that what the

Man

with a

plan SAM KESTEVEN

p17_19_july_interview_salter•FINALnew•CT.indd 17

July 2014 • THE ACTUARY www.theactuary.com

17

24/06/2014 10:28

On my agenda features@theactuary.com

“People save too little.

They underestimate their life expectancy and also underestimate the impact of inflation, because it has been relatively low historically”

profession does is relevant to our members, wherever they are based.”

But how can the IFoA make this happen, with such a wide geographical spread of members? He explains: “One way is through better use of the internet – for the exam system and through a virtual learning environment for example.”

“We are not there yet, but we are working towards that.

It’s also very important that we meet and talk to our members and make the effort to meet those in far-flung places too. Then we can find out what’s really interesting our members and how the profession can support them.”

Salter assumed the presidency in June, taking over from David Hare. He graduated from Cambridge University in 1978 with an Economics degree and qualified as an actuary in 1986. In 1989 he was one of the founding partners of Barnett Waddingham and is now senior partner, specialising in advising trustees and companies on pensions. He is also on the Court of the Worshipful Company of Actuaries and chairs its Finance Committee.

I press the new president for his thoughts on some of the IFoA’s other strategic objectives, starting with education. Are the exams set at the right level – so that they are challenging while not so tough that able students choose alternative career paths?

Salter jokes that “the exams have become easier since I sat them”, then suggests that the key is the expected time to qualification rather than the difficulty of the exams.

He says: “What I’d like to see is exams that are testing, but actuarial students should be able to see the end when they start. When I started the exams, the expected time to qualification was seven years, which was too long. Three or four years would be ideal, otherwise you just put people off.

“We could have another level of exams after qualifying as an actuary, and those exams would be done out of choice.”

His personal view is that it could be achieved under the current framework. He suggests that “the majority would go for the Associate qualification, with a few going further to complete the exams required for Fellowship if they aspire to specialise and hold a reserved role”.

18

I raise the topic of regulation and highlight to Salter some members’ fear that current proposals for additional actuarial standards could ultimately be of detriment to actuaries, for example those competing with nonactuaries for clients and staff.

Salter pauses; his response is considered: “The proposals should be embraced. I think that any substantive piece of work should be peer reviewed, and I don’t think that should be limited to actuarial work. If there is no sense check of the appropriateness of a piece of advice, there is a potential danger to the user of that advice and also to the person giving the advice. In principle, peer review is a good thing.”

But does it need to be made compulsory? Salter reinforces his earlier point: “Mandating actuaries to peer review is difficult, but I still think it’s a good thing.” He adds: “Maybe a phased approach to implementing the regulations would have been better: a light-touch review first to get members to understand the value of it.”

Salter believes members should see the proposals in a positive light. He says: “If an actuary does a piece of work, which has been through the necessary rigour and has been peer reviewed, a positive statement should be made about it to the client. If I’m an actuary working in a non-reserved role and I am pitching for work against a non-actuary, I might be perceived to be at a disadvantage if my work costs more because it needs a peer review. But we have to be prepared to highlight the benefits of it.”

Salter takes a similar stance on continuing professional development, which I gather is a subject that’s top-of-mind, as he raises it before I have the opportunity to.

“It upsets me that some see CPD as a tick-box exercise.

Rather than one sitting at the back during a conference on their BlackBerry, one should see the value of continuous learning, and be prepared to demonstrate that to their clients – that they are keeping abreast of market developments. I don’t think CPD is being seen for its true value by some.”

I ask Salter whether he thinks the public have the right view of the actuarial profession. He suggests that the perception is currently narrower than it should be.

“I think actuaries are seen as very competent technicians in pensions and insurance. This is true, but it does not paint the whole picture. Actuaries have a set of competencies, which are currently applied in pensions and insurance, but could be used in a number

THE ACTUARY • July 2014 www.theactuary.com

p17_19_july_interview_salter•FINALnew•CT.indd 18

24/06/2014 10:28

of other areas too. We should get this view out to people.”

I am keen to find out more about Salter’s background, and what led him towards the actuarial profession in the first place. He points out that he developed a talent for maths at school and that his grandfather worked in the insurance industry.

“My father suggested that I explore an actuarial career.

I didn’t have a clue what that was and at that time it was very difficult to find out. While at university, I arranged to talk to the actuary linked to it. At the time it was Peter Clark, who went on to become president of the Institute of Actuaries some years later. I asked him what an actuary was. His response didn’t put me off.

“I also had the arrogance of youth and thought I’d give it a go and if it didn’t go well I’d just try something else.”

I remark that it seems to have gone well. “I’ve muddled along,” he quips.

It’s the same go-getter spirit that seems to have led him to co-found Barnett Waddingham. He recalls the difficult decision he had to make 25 years ago.

“At the time I was reasonably senior at Mercer, working in its London office, relatively well-paid and my wife was heavily pregnant with our daughter. She was rightly concerned about the timing. I decided that I would leave my job in a way that would allow me to knock on the door if it didn’t go well. Fortunately I never had to test that.”

The UK pensions landscape has seen many changes since that time, with this year’s Budget bringing the most recent of such reform. I ask what he foresees for the industry over the next 25 years.

Salter thinks that defined contribution is not the universal solution. “People save too little. They underestimate their life expectancy and also underestimate the impact of inflation, because it has been relatively low historically. We won’t go back to defined benefit, but I think we’ll end up somewhere in between, with some sort of risk-sharing arrangements.”

He adds: “There is a tremendous opportunity for actuaries to innovate in this space, with solutions that cater to different employers’ appetite for risk on their balance sheet.”

So how does he juggle his various leadership roles?

“There is a lot to do. Fortunately, I have a strong team at work who look after my clients day-to-day and know when to involve me. It’s the same with the team here at the IFoA. I also have a very good PA, and an extremely understanding wife.” a

SAM KESTEVEN

www.theactuary.com

p17_19_july_interview_salter•FINALnew•CT.indd 19

24/06/2014 10:28

Finance Behavioural investment features@theactuary.com

David Blake and John Pickles examine how our preference for time influences the way we value investments How much will a £1 investment be worth in 30 years’ time? And what is that future value worth today? Actuaries are used to pondering such questions, so we’re interested in how your clients might answer them. As we’ll explain, we suspect that their answer to the second question might not always be £1. It might be more, it might be less.

In our paper, Value-time curve psychology, we consider a series of ‘thought investments’ in which the initial value of an investment is projected forward to a future date (prospection) and that future value is discounted back (retrospection) to give a present value. We use ‘value-time charts’ to trace this mental simulation of changing value over time.

We show that the first big distinction is between those who value ‘exponentially’ and those who value ‘hyperbolically’. Exponential valuation is standard in time value of money calculations where annual growth rates are assumed to be constant over time. But, in reality, many of us value hyperbolically, anticipating that £1 invested will grow more rapidly in the short-term than in the long-term.

In Chart 1 (below), £1 is projected forward 30 years: exponentially to £5.74 and hyperbolically to £3.32. In this example, the exponential investor is assuming a fixed annual growth rate of 6%. In contrast, the hyperbolic investor

20

6

Exponential Hyperbolic

5.74

5 4 Value (£)

Curved time

Chart 1: Exponential and hyperbolic curves

3

3.32

2 1 0 5

10

15 Time (years)

20

25

30

THE ACTUARY • July 2014 www.theactuary.com

p20_21_july_blake•FINAL•CT.indd 20

24/06/2014 11:34

DAVID BLAKE is director

of the Pensions Institute at Cass Business School JOHN PICKLES is a fellow of the Pensions Institute at Cass Business School

Chart 2: Symmetric exponential growth and discount curves over different investment horizons 16 14

“An investor who is temporally neutral has no time preference, that is, no preference for the past, the present or the future” then discounted to a present value of £0.57.

By implication, £1 today invested for 30 years is valued at £0.57. In this example, the myopic exponential investor and the myopic hyperbolic investor both happen to give this particular investment the same present value of £0.57, even though the mental time travel journeys each investor took to reach the same present value are very different. In general, we would

Chart 3: Myopic value-time curves showing both exponential and hyperbolic growth and discounting 6

8% growth / discount 6% growth / discount 4% growth / discount

5 4

10

Value (£)

Value (£)

12

contrast, are ‘hyperopic’, we value the future over the present: we have ‘negative time preference’.

Positive time preference, in a thought investment, implies that the present value is less than the initial value. Chart 3 illustrates the myopic investor’s value-time curves.

When valuing exponentially, £1 today is valued at £5.74 in 30 years’ time; and £5.74 in 30 years’ time at £0.57 today. When valuing hyperbolically, £1 today is projected to grow to £3.32 in 30 years’ time and that future value is

8 6

not expect such different journeys to lead to the same present value. In reality, we would expect the different mental time travel journeys that investors take to lead to a whole range of different present values.

In a thought investment with negative time preference, present value exceeds initial value.

Chart 4 shows the hyperopic investor’s value-time curves, both when valuing exponentially and hyperbolically. £1 is projected forward exponentially to £5.74 in 30 years’ time and then exponentially discounted to a present value of £1.77. And, £1 today is projected hyperbolically to £3.32 and then hyperbolically discounted to £1.77. By implication, £1 today invested for 30 years is valued at £1.77 for these two hyperopic investors, although this need not be the case in general.

We explore, in our paper, the reasons why investors might project and discount nonsymmetrically. One reason is their attitude to risk. We explain, for example, why a risk-averse investor might value £1 invested in equities at less than £1 invested in bonds whereas a risk-seeking investor might attribute a higher value to the equities.

Our paper is theoretical, albeit referenced to a comprehensive body of experimental evidence.

Our next task is to carry out our own testing. As a first step, we would much appreciate your feedback. In particular, do you recognise, or have any anecdotal evidence of ‘symmetric’, ‘myopic’ and ‘hyperopic’ valuation? Certainly, some traditional actuaries appear to have valued equities hyperopically: they could quite happily switch a pension fund’s bonds, valued at £100m, into equities and value the equities at £120m. Presumably this no longer happens? a Please download the report at bit.ly/T34juD and then email your comments to d.blake@city.ac.uk

Chart 4: Hyperopic value-time curves showing both exponential and hyperbolic growth and discounting 6

Exp. growth Exp. discount Hyp. growth Hyp. discount

5 4 Value (£)

initially expects that the investment will grow at a much higher annual rate than 6%. But as the hyperbolic investor looks further into the future, he or she anticipates that the annual return will fall well below 6% and that the average annual return will be just 4%.

We show the next big distinction is between those who value ‘symmetrically’, those who value ‘myopically’ and those who value ‘hyperopically’. Traditionally, ‘symmetry’ has been assumed between prospection and retrospection. An important implication of symmetry is ‘temporal neutrality’. In other words, an investor who is temporally neutral has no time preference, that is, no preference for the past, the present or the future. Temporal neutrality, in a thought investment, means the present value always equals the initial value.

If £1 is compounded forward, at 6% for 30 years, then a symmetric investor will use a 6% discount rate to arrive back at a present value of £1.

As Chart 2 illustrates, a symmetric investor values at £1 today £1 invested in any asset for any period of time. So, the present value of £1 invested in equities for, say, 35 years with an assumed return of 8% p.a. is the same as £1 invested in bonds for, say, 20 years with an assumed return of 4% p.a., namely £1, even though equities are riskier, offer a higher expected return and are held for a longer period than bonds. In other words, for a symmetric investor £1 worth of equities has the same present value as £1 worth of bonds.

Recent research in behavioural psychology, however, reveals that the ways in which many of us mentally represent the future and the past differ. Prospection differs, in context and experience, from retrospection. Many of us are not temporally neutral. Some of us are ‘myopic’ and have ‘positive time preference’: we value the present more than the future. Some of us, in

3

Exp. growth Exp. discount Hyp. growth Hyp. discount

3

2

2

1 #"

1

4 2 0

0 5

10

15 20 Time (years)

ALAMY / CHARTS COURTESY OF D BLAKE

p20_21_july_blake•FINAL•CT.indd 21

25

30

35

0 5

10

15 Time (years)

20

25

30

5

10

15 Time (years)

20

25

30

July 2014 • THE ACTUARY www.theactuary.com

21

24/06/2014 11:34

General Insurance Takaful features@theactuary.com

Eastern promise Faisal Zai examines how Islamic Takaful insurance is growing as the burgeoning economies of MINT countries begin to make their mark

According to a recent Wall Street Journal, Amazon has patented an ‘anticipatory shipping’ system which will use predictive analytics to deliver products to customers before they place an order. Though Amazon has not announced any plans to implement this service it shows why they are considered a pioneer in internet commerce. Innovation is essential for business leadership particularly when faced with a changing economic global structure.

Many believe that the future world economic growth will be driven by the BRIC (Brazil, Russia, India and China) and MINT (Mexico, Indonesia, Nigeria and Turkey) nations. Most people are aware of BRIC, but few people are familiar with MINT. Despite the current political and social turmoil, the MINT nations have favourable demographic structures giving them an economic edge compared to developed nations which are facing aging populations. Sustainable pensions, affordable insurance, and related businesses depend on having favourable demographic structures. The demographic dividend theory considers the ratio of nonworking to working age groups i.e. the

dependency ratio. As the dependency ratio falls, given the right public policies, disposable income grows thus spurring economic growth.

Pensions, insurance and related businesses should thrive as people realise that they will not have the traditional family support to rely on in the future. Three of the four MINT countries, Indonesia, Nigeria and Turkey, are Muslim concentrated countries where conventional insurances are incompatible with Islamic beliefs. Given the current low insurance penetration rates in these countries, insurers and reinsurers should probably have MINT countries on their new market radar, and develop compatible Islamic insurances, otherwise known as Takaful.

Are insurers MINTed? Takaful insurances have been rapidly growing globally over the last few years, but it is still very small in comparison with conventional insurance. Global Takaful premiums are a mere 2.5% of conventional global insurance premiums. According to a report by E&Y in 2013 global Takaful premiums grew by 22% per annum between 2007-11 and a further 16% in 2012 which was considered a bad year. In contrast, global insurance premiums for conventional insurance grow by a mere 2.4% according to the Sigma 2012 study by Swiss Re and was considered a good year. The last time conventional insurance saw an annual growth of 15% was in the 1980s.

The first Takaful company in modern history was set up in Sudan in 1979. There are now over 130 Takaful companies globally. The population of Muslims has been rising. Muslims account for 23% of total world population according to a Pew Report in 2010 and this is expected to grow to 27% by 2030. This has been coupled with growing spending power in the Muslim countries over the last few years, and GDP per capita grew faster at 6.8% pa than its global counterparts of 5% over the period 1990-2010.

Know your Arabic Although there is not much difference in the actuarial calculation kernel between Takaful and conventional insurance, there are fundamental philosophical differences. Islamic finance differs from conventional finance as it derived its principles from religious philosophy dating back more than 1400 years. The prime

22

THE ACTUARY • July 2014 www.theactuary.com

p22_23_july_islamic•FINAL•CT.indd 22

24/06/2014 11:34

US population pyramid

US median age

Great Britain population pyramid

US dependency ratio

China population pyramid

China median age

Great Britain dependency ratio

Indonesia population pyramid

China dependency ratio

Nigeria population pyramid

Nigeria median age

Great Britain median age

Indonesia median age

Indonesia dependency ratio

Turkey population pyramid

Nigeria dependency ratio

Turkey median age

Turkey dependency ratio

Charts show projected population pyramids from 2015 to 2050, their median population age and their dependency ratios. Those developed nations shown (US, Great Britain) and the BRIC nations shown (China) are facing an impending ageing population and increasing dependency ratios. This is in contrast to the MINT nations shown (Indonesia, Nigeria, Turkey), which have a significantly more favourable demographic structure and dependency ratios. Data source: World Bank

tenet of Islamic finance is the prohibition of usury (or riba in Arabic). This prohibition is common to all three Abrahamic faiths – Judaism, Christianity and Islam. Whereas the prohibition in Judaism only applies to transactions amongst Jews, it is universal when it comes to Christians and Muslims. However, a 16th century reinterpretation under the Protestant Reformation led to a reclassification of usury whereby only high rates of interests were considered usury. In Islam however all forms of interest are considered usury. Insurance plays a major role in personal finance, but most fall foul of the core Islamic Shariah concepts.

These include: ● riba – usury/interest based transactions; ● gharrar – (deceptive) uncertainty and unclear terms of contract; ● maysir – excessive risk taking or gambling; and ● haram investments – unethical investments such as alcohol, pornography or gambling.

Gharrar is generally considered acceptable as long as the contract does not lead to a party profiting over the other unfairly. Insurers generally have favourable information bias and can profit from higher premium rates. Maysir exists in an insurance contract when a policyholder contributes a premium in the hope or gamble to gain a larger sum. Endowment assurance policies promising a guaranteed return also contravene the riba principle. These concepts are hard to avoid for insurers. Takaful insurance is structured to avoid riba and haram investments and policyholders share their own risks collectively rather than transferring to shareholders, the elements of gharrar and maysir are thus avoided. This forms a mutual cooperation.

ISTOCK

p22_23_july_islamic•FINAL•CT.indd 23

The insurance fund in a Takaful company is owned by the participants or policyholders. The risks are pooled and shared amongst the participants. The shareholders, known as the Takaful operators, provide capital for the business, operate as an agent and are not directly exposed to the investment or underwriting risks.

The operators can charge a fee which is deducted from the premium contributions and in return is exposed to the expense risk. This structure is in complete contrast to conventional insurance where the risk is transferred to the shareholders who are then exposed to all the expenses, investments and underwriting risks.

In the event that a Takaful fund runs into a deficit, the shareholders are required to provide an interest free loan. This loan is to be repaid before any surplus can be distributed. Any surplus belongs wholly to the participants and is distributed amongst the participants, and in some cases, is shared with the shareholders in a predefined proportion to create an incentive for the operator to actively manage the investment and underwriting risks. All of this is overseen by an independent Shariah Board.

Next destination There are numerous challenges for Takaful companies. The most striking is the political and social turmoil in the populous Muslim nations where Takaful insurances operate. There are also issues of negative perception. Muslims have been told for some time that insurance contradicts their faith and Shariah rulings about Takaful have not pierced the perception.

Knowledge about the benefits of insurance is low and individuals generally prefer to rely on family support systems. The chronic lack of skilled

resource has meant that there is very little product innovation. There is also a lack of regulation and standardisation in the Shariah compliant Takaful models, although Malaysia has taken steps to develop the industry and as a result Malaysia is considered by far the most advanced Takaful market in the world.

Finding long-term Islamic assets is also tricky.

Sukuks, the Islamic equivalent of bonds are generally oversubscribed and not traded frequently. A lack of derivatives markets also poses issues for risk management.

In essence Takaful remains an exciting business proposition and many major insurers and reinsurers already have some presence.

Companies and governments will have to make greater efforts to develop a sophisticated resource pool and educate customers. Innovative thinking is required to overcome the challenges of the growing Takaful insurance.

This brings us back to Amazon. What happens if Amazon’s anticipatory shipping system delivers an item which is unwanted by the customers? Well, the item can be returned but Amazon said it might consider discounts or converting the delivery to a gift to build customer goodwill and reduce return costs. a

FAISAL ZAI is a

founding principal at Peraspera Consulting and a specialist in quantitive modelling and business strategy

July 2014 • THE ACTUARY 23 www.theactuary.com

24/06/2014 10:34

Soft skills Time management features@theactuary.com

Alan Palmer considers the benefits of shorter meetings, quicker results and better relations Many years ago as an enthusiastic but green strategy consultant, I worked in London for a US group, which also owned an actuarial firm. One day I was given the news that I was going to be working on an assignment with my actuarial colleagues, previously kept hidden from my view in a distant wing of our building.

I viewed this prospect with some apprehension; even if I hadn’t yet come face-to-face with an actuary, their reputation in the area of communication preceded them. To my immense relief, I quickly discovered that there was very little foundation for this reputation; but I also discovered that no-one was more assiduous in painting this unflattering portrait of actuaries than actuaries themselves.

Every day I was regaled with a fresh joke, each designed to highlight some social shortcoming on the part of actuaries, each recounted to me, with relish, by an actuary.

This went well beyond the traditional British penchant for self-deprecation. I eventually concluded that the constant stream of jokes was part of a worldwide conspiracy on the part of actuaries to set low expectations with regard to their ability to communicate, so that almost every time they spoke those expectations would be wildly exceeded.

Meeting objectives 24

THE ACTUARY • July 2014 www.theactuary.com

p24_25_july_soft_skills•FINAL•CT.indd 24

24/06/2014 10:35

“Contrary to the popular belief that the random sprinkling of talents has resulted in some people being naturally good communicators and others not, effective communication skills can be acquired by anyone” I don’t know if – and here as I’m writing for a magazine called The Actuary I feel legitimate in switching to the second person – you are still engaged in this conspiracy, but if you are, it strikes me as being wholly unnecessary.

Human beings, whatever their profession, are very frequently ‘challenged’ when it comes to communicating with others, and actuaries are neither more nor less blessed in this respect than the population at large.

In other words, expectations are already low. And, contrary to the popular belief that the random sprinkling of talents has resulted in some people being naturally good communicators and others not, effective communication skills can be acquired by anyone – even (whisper it softly lest the conspiracy be undermined) by actuaries.

I used to have my feet planted firmly in the ‘good communicators are born not made’ camp – probably because I believed I’d been born without them and this conviction excused me from having to acquire them – but I was forced to change camp when I met a man who, rather inconveniently for my belief, had spent 20 years ‘making’ effective communicators.

The man in question, now my colleague Philippe de Lapoyade, developed the approach.

Philippe has devoted his life to the study of professional relationships and his fascination with the subject led him to spend many years observing and analysing the attitudes and behaviours in meetings and conversations, which not only produce concrete results but do so rapidly and efficiently and with a positive impact on the relationship between the parties.

He was able to condense the results of his observations down into a simple but comprehensive framework for communicating more effectively. In hindsight, it turned out that what he had done was to solve a problem that had previously seemed intractable. He had worked out how systematically to speak to other people in a way that is on the one hand clear and direct, and on the other, polite and courteous. The discovery was a significant one because it turns out that if you ask any human being, of any age, sex, profession, function, management level, and even of any nationality or culture, how they like to be spoken to, you will invariably be told “direct but polite, candid but courteous”.

The problem of how to do this had seemed an intractable one because most people believe that they’re condemned to make a choice, that they can either be direct, but will then inevitably, be curt and abrupt, or that they can be polite and courteous but will then

ISTOCK

p24_25_july_soft_skills•FINAL•CT.indd 25

necessarily end up beating around the bush.

Squaring the circle is being both direct and courteous.

The first 30 seconds of a meeting is absolutely crucial to its productivity and to its impact on the relationship between the parties.

In particular, it’s critical that within 30 seconds, you’ve told the other person exactly what you’re hoping to obtain from them by the end of the meeting. Doing so is the only way you can conform to the universal human preference for directness, as long as it’s accompanied by courtesy. It’s also the only way to generate trust and respect because until you’ve told the other person what you want from them, they will regard you at best with wariness (if they don’t know what you want) at worst with distrust (if they think they know what you want but you haven’t yet admitted to it).

Lastly, identifying immediately what you want from the other person by the end of the meeting is also the only way of ensuring the meeting is efficient and productive.

A meeting is like a production line in a factory in that it exists to produce a concrete finished product – and, as in a factory, you won’t get the result you want if you haven’t defined and agreed the parameters of the finished product right from the start.

The observations by my colleague Philippe of effective behaviour patterns in meetings allowed him to identify a simple, three-part structure for starting a meeting that will allow you always to be direct about your goal within 30 seconds, while never appearing curt or abrupt.

The elements of this structure are – in order of preparation: i) My meeting objective ii) The inputs I’ve prepared that make it reasonable to hope I can achieve my desired outcome iii) My state of mind relative to the announcement to the other person of my chosen meeting objective.

This order is reversed when you actually state your introduction to the meeting: i) my state of mind, ii) what I did to prepare and, iii) my meeting goal.

The meeting objective you choose and announce must be the concrete result(s) you hope to obtain from the other person at the end of the meeting. You mustn’t confuse ends with mere means (not “I want to discuss…”, “I want to demonstrate…” but “I’m hoping that you will tell me…”, “I’m hoping that we can produce…”); and you mustn’t confuse meeting goals with broader business goals that won’t be

realised at the end of the meeting but only next week or next month or next year.

Your inputs must, at this stage – before the announcement of the objective – contain no arguments, no conclusions, nothing with which the other person can disagree. You should simply be looking to create curiosity, openness, an eagerness to know more. And your ‘state of mind’ about announcing the objective is exactly that, it’s how you feel looking forward to the announcement of your chosen meeting goal, it’s not how you feel, looking back, about the situation that led you to call the meeting.

As an example, an actuary who applies this to what may be one of the most challenging kinds of meeting he or she faces – announcing bad news to a client – might find themselves constructing an opening like this: “I’m conscious that what I have to say in this meeting will come as a very heavy blow to you and I don’t like being the messenger of such news. At the same time I want to do everything in my power to ensure the meeting’s a constructive one.

“I have to tell you today that I’ve just identified a hole in the pension fund of some £25m. I’ve prepared a detailed analysis to explain my conclusion; and I’ve also developed some recommendations about what we now need to do to fix this.

“What I am looking for in calling today’s meeting is first for us to agree on a draft plan for closing the hole within an acceptable time-frame; and second for you to make a commitment to turning the draft plan into a definitive one and to implementing it within a month. How do you feel about that as a goal?”

Direct and straight to the point, yet polite, courteous and respectful. Starting the meeting like this will probably result in the other person leaning forward, literally or metaphorically, and saying something like “I’m listening. Tell me about it.” And that’s a pretty good way to start even the toughest meeting. a

ALAN PALMER runs the UK arm of training company Interactifs, and is the author of Talk Lean: Shorter meetings. Quicker results.

Better relations

July 2014 • THE ACTUARY www.theactuary.com

25

24/06/2014 10:35

Pensions Australia superannuation features@theactuary.com

Can the tide turn for Oz pensions?

Australia’s system of superannuation has wide coverage but often provides an inadequate level of retirement income. Stephen Huppert says that government, regulators and the pension industry need to work together to improve the situation

26

Discussions about retirement systems often look to Australia. It is the world’s fourth largest system at over A$1.8trn (£1trn), 105% of GDP and is expected to quadruple in size within 25 years.

Figure 1 shows both historical and projected total assets under management.

Australia has a three-pillar retirement system: 1. Age Pension is a universal means-tested pension provided by the Federal Government and paid from consolidated tax revenue each year. Currently the pension commences at age 65 – eligibility age will gradually increase to 70 in 2035.

2. Compulsory superannuation contributions are made by employers, currently at the rate of 9.25% of salary. This rate will gradually be increased to 12% by 2022.

3. Voluntary superannuation contributions can be a mixture of pre-tax (salary sacrifice) and post-tax contributions.

As the system is mandatory, with no opt-out provision, coverage is very high. Over 98% of all employed Australians are covered by superannuation and 75% of self-employed.

However, the vast majority of assets are in

defined contribution schemes where members receive a lump sum at retirement. This means that having a superannuation account does not imply an adequate level of retirement income.

The superannuation industry is far from homogenous with a number of distinct segments chasing the money (see Figure 2). The industry and self-managed superannuation funds may be the least familiar to readers in the UK. The government decided not to establish a government-run scheme and so industry funds were established as an alternative to bank and insurance company options. They usually focus on particular industry sectors such as teaching, construction, health and public sector to name a few, and some of the funds position themselves as multi-industry. These funds are not-for-profit and the trustee boards consist of equal representation from union and industry groups.

Self-managed superannuation funds (SMSFs) represent the fasted growing segment.

An SMSF must have fewer than five members and all members are also trustees. These are very much DIY superannuation funds and there are more than half a million of them.

THE ACTUARY • July 2014 www.theactuary.com

p26_27_july_australia•FINAL•CT.indd 28

24/06/2014 11:34

“We are world-class at getting money into the system, but there is significant work to be done at the other end”

The structure, governance regime and size of the Australian system result in it consistently being rated highly in both the Mercer Global Pension Index and the Allianz Pension Sustainability Index. However, by certain criteria, it has a number of major challenges that must be addressed – for example, we are world-class at getting money into the system, but there is significant work to be done at the other end.

Figure 2: Share of superannuation assets, 31 July 2013

Corporate 32%

Corporate 4% Industry 20%

Investment choice About 85% of Australia’s superannuation assets are in defined contribution schemes and the majority of Australians are in the default investment option of their employer’s default superannuation fund. These default investment options are typically 70/30 balanced funds.

Funds do offer a range of alternative investment options and members do have choice, but less than 20% of members exercise this choice.

Unfortunately, when members do switch investment options it is often to chase returns and leads to worse rather than better outcomes.

We also see younger members shifting to more conservative options not understanding the concept of an investment time horizon.

Almost all retirees receive their benefit on retirement as a lump sum. If they want an income stream in retirement they must purchase one. Apart from a small number of defined benefit members, there is no default transition to an income stream. Australia has a very small market for annuities, either term certain or lifetime.

For the 85% in DC schemes, the most popular option is an allocated annuity. This is an account-based pension that provides a series of

Retail 28%

Self-managed fund 16%

Source: Australian PRA, Deloitte Actuaries & Consultants

A$bn

regular payments. The payment amount is subject to minimums described as a percentage of the account balance and the member can take lump sum amounts out.

The debate about compulsory annuitisation does surface from time to time but there is nothing to suggest it will occur in the foreseeable future. There is significant industry support for changes to tax legislation to make deferred annuities more competitive.

Since the introduction of compulsory contributions, the message has been that these contributions are deferred salary. Employees are told that it is their money. Anything other than account-based pensions will be a hard sell politically and commercially.

There are two dimensions to sustainability of a retirement system: national and individual. Like in all countries, improved longevity and other demographic pressures have led to significant tension between these Figure 1: Historical and projected total assets under management (A$) two dimensions.

The two major ways 8,000 the Commonwealth Government helps 7,000 retirees are the Age 6,000 Pension and superannuation tax 5,000 concessions. Treasury 4,000 estimates that tax 3,000 concessions on superannuation cost 2,000 around A$30bn each 1,000 year. It is claimed that almost half of the tax 1997 2002 2007 2012 2017 2022 2027 2032 concessions go to the Source: Australian Prudential Regulation Authority, Deloitte Actuaries & Consultants top 12% of income

GETTY

p26_27_july_australia•FINAL•CT.indd 27

STEPHEN HUPPERT

is a partner at Deloitte Australia

earners. There is heated debate about the equity and effectiveness of these concessions.

Despite the compulsory contributions and tax concessions, only 20% of Australians are completely self-sufficient in retirement and, of this group, only half manage to stay self-sufficient with the balance eventually relying on the government age pension.

The other 80% receive full or part pensions from the Commonwealth Government.

Most projections do not see the overall percentage changing significantly though the proportion receiving full pension is likely to decrease.

Politics and self-interest It is not surprising that successive governments are torn between the value of these concessions for encouraging self-funding of retirement and their need to balance the Federal Budget.

Various think tanks and interest groups have their views on the social and economic benefits of the tax concessions within superannuation.

The constant changes to tax and other legislative aspects over the history of the system have led to significant complexity.

This results in costs to providers and lack of engagement by consumers. The average Australian’s reaction when the topic of superannuation is raised is that it is all too difficult and the rules keep on changing.

This is a disincentive for members to be suitably engaged in saving for their retirement and discourages them from making voluntary contributions.

Furthermore, the very public, and often ugly, debate about the future direction cannot help.

There are many well-run superannuation funds that are constantly looking for better ways to improve the retirement outcomes of their members. But it is difficult to be overly optimistic about the future of the system as a whole. Australia does have the foundation of a good retirement system, but significant work is required to better prepare and provide for the post-retirement phase. This should include finding ways for members to make the right decisions at the right time, a better range of efficient post-retirement products and improved integration between superannuation systems, state pension and long-term care.

This will require cooperation between the government, the regulators and the industry.

Past experience suggests that this will not be easy. a

July 2014 • THE ACTUARY 27 www.theactuary.com

24/06/2014 10:36

Time to return to our roots...

Dawid and Tanya share their experience on coming back to South Africa after 8 years in the UK.

WHAT ARE YOUR BACKGROUNDS? We are both qualified actuaries who graduated in Actuarial Science from the University of Stellenbosch in 2005. After we graduated, we decided to move to the UK where we started our careers – Dawid at P-Solve Asset Solutions and Tanya at Munich Re UK. We lived in London for 3 years and then moved to Easton, a small village just outside Winchester. Dawid spent 6 years at P-Solve and then 2 years at LCP in Winchester. Tanya joined Aviva Health UK in 2010 after spending 4 years at Munich Re. WHY DID YOU LEAVE SOUTH AFRICA IN THE FIRST PLACE? We wanted to travel a lot and work to fund our trips. The plan was to return to South Africa within two years. 8 Years later, we have travelled a fair amount, qualified as actuaries, got married and started our family.

WHAT WAS YOUR REASON FOR RETURNING TO SOUTH AFRICA? Our family. Although, we both had good jobs, good friends and a relatively uncomplicated and comfortable life, we missed our family a great deal and with our children getting bigger and missing out on knowing their grandparents and extended family that we were privileged to know, we decided it was time to return to our roots.

WHAT WERE THE CHALLENGES INVOLVED IN GETTING A JOB IN SOUTH AFRICA? ANY RESTRICTIONS? When we first started job-hunting, we were still in the UK, which made things a bit difficult. However, with modern technology, almost anything is possible and we were able to have interviews telephonically and via Video Conferences.

The fact that we were determined to live in Cape Town, close to our families, narrowed the options a bit too and then we were obviously restricted by not being BEE candidates. However, we both found jobs that we’re passionate about and really enjoy – so we believe that if you have the right skills (and a bit of patience) you will find something that is right for you.

WHERE DO YOU SEE THE GREATEST DEMAND FOR ACTUARIES? The Life Insurance Market definitely provides the most opportunities in the Western Cape. We have also noticed that businesses look for actuaries with all-round skills rather than just being technically adept.

p28-29_ACT.07.14.indd 28

HOW DOES THE SOUTH AFRICAN CULTURE DIFFER FROM UK CULTURE IN THE WORKPLACE (AND IN EVERYDAY LIFE)? We have found the office environment a little more relaxed and friendly, especially in Cape Town. At the same time, everyone seems to be very conscientious and works as a team. We miss the UK public transport system though – Cape Town traffic takes some getting used to!

HOW DO THE SALARIES AND COST OF LIVING IN SA COMPARE TO THAT OF THE UK? Salaries are lower than in the UK, especially if you take into account the current exchange rate. The cost of living, however, is also lower in South Africa. We were pleasantly surprised by the difference in child care costs – which was a major expense in the UK, as we are both working parents.

WHAT DO YOU DO IN YOUR SPARE TIME? We spend time with our family. I think we’re trying to catch up on the time lost during the past 8 years. We also enjoy everything our beautiful country has to offer - everything we’ve missed so much: the weather, the sea, the mountains, good food, good wine and lots of sunshine.

HOW DO YOU SEE BLACK ECONOMIC EMPOWERMENT IMPACTING THE JOB MARKET? BEE has definitely significantly impacted the professional dynamics in companies and has empowered many people to rise above significant obstacles.

WHAT IS THE BEST THING ABOUT WORKING IN SOUTH AFRICA? Lots of things – working with a diverse group of people, having the opportunity to take on increased responsibilities at a fairly early stage of one’s career and also having the opportunity to develop all-round skills as opposed to being solely technically focused.

ANYTHING ELSE YOU WANT TO SHARE? Our country is certainly facing some significant challenges, even 20 years after achieving democracy. However, we have such a wonderful country with so much to offer. We need to stand together to achieve peace and prosperity in our beautiful country.

24/06/2014 09:59

South African Actuaries Abroad

SA3 is a dedicated actuarial recruitment company, run by actuaries. We pride ourselves in offering exceptional service and have many satisfied clients and candidates in South Africa and abroad. Our aim is to make the job searching process as easy and discreet as possible for the candidate and the filling of vacancies quick and effective for the employer. Whether you are looking for a new challenge in South Africa, the UK, Australia or the rest of the world, we offer a dedicated and service-focused recruitment solution that is unmatched by anyone else in South Africa.

0ɄɄȰȨȽȝ ȘɄɑ Ǹ ȽȐɬ ȃȣǸȵȵȐȽȝȐѵ

Wilhelm (FIA, FASSA) qualified as an actuary in 2004 and co-founded SA3 (South African Actuaries Abroad) in 2005 with his wife Helena. He worked in the Life Insurance Industry in both the South African and UK markets and gained his experience at some of the major insurers in both countries. His 3 children take up most of his spare time. He is a keen traveller and his hobbies include any sport that is played with a ball.

Henda (FIA, FASSA) qualified in 2001 and has 12 years experience in the industry. She worked in life and health insurance in South Africa and Australia before joining our team in 2009. Her hobbies include reading, running, herb gardening and going on 4x4 trips with her husband and children.

wilhelm@sa3.co.za Cell: +27 (0)82 823 9978

henda@sa3.co.za Cell: +27 (0) 83 603 2961

CREDIT AND MARKET RISK MANAGER

Johannesburg Our large client requires a suitably experienced senior actuarial student or newly qualified actuary to take ownership of the credit and market risks relating to their business while leveraging the bigger group’s capabilities. A minimum of 5-8 years of risk management experience in the banking / asset management sector is required and a FRM qualification would be an advantage.

SENIOR HEALTH SPECIALIST

Johannesburg Our client is searching for a senior health specialist to provide advanced statistical analytical services for a wide range of products. Experience in the medical scheme or managed health care industry will be beneficial.

GI ACTUARIAL PRICING SPECIALIST

Johannesburg A position for a newly qualified actuary has become available in our client’s short-term business. We are looking for a candidate with relevant short-term pricing experience and good technical skills to become involved in pricing and product development.

LIFE VALUATIONS SPECIALIST

Johannesburg/Cape Town We have various positions for candidates with previous life valuations experience at all levels. Positions range from valuations actuaries to actuarial analysts and involve the delivery of all the company corporate actuarial deliverables.

LIFE CONSULTING ACTUARY

Johannesburg /Cape Town Our client requires a nearly or newly qualified actuary to take a senior role in their Cape Town or Johannesburg office.

Responsibilities will include the full spectrum of actuarial services across a range of companies and include exposure to leading technical developments in the industry. A previous valuations or technical life insurance background is required.

PENSIONS CONSULTING ACTUARY

Johannesburg/Cape Town The Employee Benefits business of our client requires an actuarial specialist with previous pensions experience to join their team. The team is responsible for delivering a comprehensive list of actuarial consulting services to a portfolio of retirement funds (defined benefit and defined contribution) and to deliver client-specific solutions to large employers.

GI CONSULTING ACTUARY

Johannesburg We have a number of clients who require experienced GI actuaries wanting to work in consulting. Responsibilities will include the full spectrum of actuarial services across a range of companies. Previous reserving or capital modelling experience will be advantageous.

www.sa3.co.za

p28-29_ACT.07.14.indd 29

24/06/2014 09:59

Education CAA qualification features@theactuary.com

Foot on the ladder Jenni Hughes provides an overview of the Certified Actuarial Analyst (CAA) qualification as it continues to attract global interest

On 21 May the IFoA opened registration for the first CAA exam session. It has been many years since the IFoA offered a new membership qualification and its aim is to provide an internationally recognised credential for professionals working alongside actuaries, and to extend actuarial knowledge to a broader reach of technical and analytical roles in the financial services industry.

As well as a level of technical expertise, the qualification develops wider skills such as communication and professionalism. It provides a level of assurance through ongoing professionalism and personal development

30

requirements, within the regulatory framework and membership requirements of a globally respected professional body.

Within a month of launch, the IFoA had already seen interest from more than 30 countries, serving to confirm the global appeal of the CAA. You can see the breakdown by region in Table 1 below.

Table 1 Interest in CAA by region UK 41 Africa 72 South Asia 71 Rest of world 17

Who should consider the CAA? Over the past few years there has been an increase in the number of analysts working in professional technical roles in financial services, and we recognise that the Fellowship qualification may not be relevant for all roles within the actuarial arena. It helps employers to broaden the scope of relevant qualifications that may be applicable to the wide range of roles that their employees perform worldwide.

The qualification would be suitable for school leavers: candidates with strong maths skills interested in starting their career and learning on the job without having to undertake

THE ACTUARY • July 2014 www.theactuary.com

p30_31_july_education•FINALnew•CT.indd 30

25/06/2014 09:21

“Pursuing the CAA is an opportunity of a lifetime.

I think it will go a long way in ensuring people have the necessary skills to work in all spheres of actuarial, finance and risk management” Grainne Burke was the first candidate to register for the CAA. She is based in Dublin, Ireland.

“I started working with AXA as a business support analyst in September 2013 and quickly found that I really enjoyed the work I was involved in. The next natural step forward for me was a professional qualification related to my position. When I researched the CAA, I realised this was a technical qualification that would be hugely beneficial and highly relevant to my role.

“Being a member of such a prestigious and recognised professional body with a global community means that my CAA qualification will be recognised worldwide. I will have gained a greater understanding of insurance and the calculations of premiums that need to be charged. The work-based skills part of the qualification will also assist me in improving my communication and professionalism skills.

“I believe this qualification will help me to move forwards with my career. The technical and communication skills I will gain will enable me to become a more successful analyst and will assist me in taking on a more senior analytical role. The communication and professionalism skills I think are necessary in order for me to progress into more managerial positions.

“The next step for me is to pass the Module 0 exam in August and then continue to complete the CAA qualification. After that I would like to take on more responsibility within my present role and eventually work towards progressing to a teamleader position.”

Moses Chege works as a life and investment consultant at JW Seagon & Co Ltd in Kenya.

“I am proud to be associated with the IFoA and more so through the newly introduced CAA qualification. I am keen on qualifying as a CAA and much more so here in Kenya, where the market, though competitive, is growing to be a leader in Africa.

“I graduated in May 2013 with a BSc in Actuarial Science from Dedan Kimathi University of Technology. But before that, I had started working at JW Seagon & Co Ltd as an intern in the Life and Investments department.

After a three-month internship I was confirmed as a full-time Life and Investment consultant.

“At first, I was involved in the day-to-day activities of the life department, but was soon allocated a group of clients on our international medical portfolio, as well as generating new business and updating our clients on the investments side on how their offshore investments are performing.

“This year, I wanted to pursue another professional course, but one with a blend of insurance, finance and investments. CAA was the first to come to mind. I decided to approach my employer with the proposal on whether I could be fully or partially sponsored and fortunately enough, I got the go ahead.

“Pursuing the CAA is an opportunity of a lifetime, and am thankful to my employer and most of all the IFoA for this new qualification. I think it will go a long way in ensuring people have the necessary skills to work in all spheres of actuarial, finance and risk management. I am excited to be an IFoA student and cannot wait to qualify as a CAA in the near future.”

Tony Carter is a risk analyst and statistician and works for SLE Worldwide Australia in Sydney.

“I work for SLE Worldwide, a managing general underwriter that has grown to be Australia’s largest independent, privately owned business of its kind. Our portfolios are now of a size where they would benefit from regular and detailed actuarial analysis.

“I already hold a Masters in biostatistics and previously researched in public health for over a decade, so I’m fairly comfortable with the mathematics, statistics and modelling required for the CAA course and the insurance industry in general.

“Nonetheless, the actuarial approach has traditionally dominated analytics in insurance. So as a relative newcomer to insurance, I see the CAA qualification as complementary to my skills, in that I’ll have a solid grounding in the actuarial standards and methods specific to insurance.

“With a blend of statistics and knowledge gained via the CAA qualification, I’ll have the skills to answer the questions that keep not only the chiefs but also the underwriters awake at night, and provide an evidence base to guide their strategic decisions.

“I was asked what my next steps were: as the old Buddhist saying goes: ‘Before enlightenment, chop wood and carry water. After enlightenment, chop wood and carry water’.”

a degree; degree-level candidates who have left university and are interested in actuarial work; those who already have a professional qualification and are looking to add an actuarial dimension to their current skillset; and current employees of an actuarial organisation – who perhaps are working in an analytical support role or who has started the Fellowship exams but feels their skills are better served by a more technical qualification.

They explain in their own words above why the CAA is of benefit to their work and careers.

details for the Pearson VUE website where they can book the venue, date and time of the Module 0 exam. The exam will be taken at one of Pearson VUE’s test centres available in hundreds of locations around the world. a

Why would candidates take the CAA? All kinds of people are interested in the CAA.

GETTY

p30_31_july_education•FINALnew•CT.indd 31

What should I do if I want to complete the CAA? Registration for the first exam session closes on 18 July. To help you prepare for the exam, you can access study material and tool kits such as the resource guide, syllabus and specimen exam paper for Module 0 on the IFoA website. External study support is also available.

After registering with the IFoA and paying for the exam, candidates will be given login

Jenni Hughes is careers marketing leader, IFoA. If you and/or your colleagues would like to arrange a meeting with the IFoA to hear more about the CAA and how it can benefit you or your business, email: caa@actuaries.org.uk; or visit the website: www.actuaries.org.uk/ becoming-actuary/caa

July 2014 • THE ACTUARY 31 www.theactuary.com

25/06/2014 09:21

Singapore

festivals through public holidays. This diversity is at the heart of what makes Singapore a tolerant and all-encompassing place to live.

Why Singapore? Why Now?

Cuisine – With the multi-cultural backdrop comes an array of food. Dining, along with shopping, are often seen as the national pastimes of Singapore. From the hawker centres on street corners to the Michelin starred restaurants in stunning locations overlooking the City, there are dishes available for every budget. Chilli crab is famed in Singapore and if you can overcome the smell, durian is the “national fruit”.

According to a recent report by Boston Consulting Group, private wealth in Asia-Pacific (excluding Japan) jumped 31% to $37 trillion last year. As the 4th largest financial centre behind New York, London and Hong Kong, Singapore is well placed to capitalise on this boom especially within the insurance industry.

As a major insurance recruiter in Asia, a question we are frequently asked is “why move to Singapore?” The answers we give include the following:

Insurance Hub Ravi Menon, the Managing Director of the Monetary Authority of Singapore (MAS) recently described Singapore as a “Global Insurance Market Place”. It is recognised as a regional Reinsurance hub with 16 of the top 25 Reinsurers in the world having regional

p32-33_ACT.07.14.indd 32

offices there. By 2020 the vision is to accept global risks, with serious headway already being made in some areas; for example Singapore is ranked second to London in structured credit and political risk. This will expand across all sectors as insurance is expected to increase 8% per annum, with Asia predicted to account for 40% of the global insurance market by 2020.

With a wave of regulatory change, new products and the concentration of catastrophe risk in the region, there are plenty of job opportunities for Actuaries.

As a place to live Of the 5 million people living in Singapore nearly 2 million were born overseas. This creates a vibrant mix of cultures, cuisine and languages.

Culture – Singapore recognises major Chinese, Western, Malay and Indian

Language – Singapore has four official languages: English, Malay, Mandarin and Tamil with English being the business language. That being said, everyday you will hear languages from around the world being spoken.

Travel in & around Singapore Singapore is ideally located for travel; with the beaches of Bali

24/06/2014 10:07

or the temples of Myanmar a short flight away. There are plenty of budget airlines who have affordable and well timed flights in and out of Singapore making short trips to idyllic locations quick and cheap. This is made even easier by the the fact Changi Airport was rated the World’s Best Airport in the 2014 World Airport awards.

Within Singapore it is just as simple to get about. Taxis are reasonably priced with a daily taxi to work often being cheaper than a Zone 1 London tube ticket. Public transport is straightforward; both the bus and the MRT (ie. the tube) are efficient and air conditioned with tickets costing less than £1. Unlike most other major cities, there is no need to own and drive a car.

Cost of living This year Singapore was named the most expensive city in the world in a 2014 report from the Economist Intelligence Unit. This is largely

driven by rent and cars.

However once you arrive and start looking there is a huge variation in what you can get for your dollar. 20/30 minutes away from the City centre rental prices become more palatable. You also get a lot more for your money with most properties being securitised condominiums with large swimming pools, on-site gyms, tennis courts and in some cases climbing walls! Shopping around is essential and the process can become complex.

If you can go direct or if you’re sharing, join Facebook groups or websites like EasyRoomMate.com to find the best deals.

Cars are deliberately expensive to avoid congestion and restrict numbers to stop Singapore becoming the traffic jam of neighbouring Asian cities. To buy a car in Singapore you have to buy a licence which can be as much

as the car itself. Therefore most rely on the excellent taxi and public transport system.

The benefit of Singapore is its low tax, equating to around 15% of annual earnings for a normal taxpayer. This makes saving money a lot easier with an increased disposable income compared to London.

Also has anyone told you how safe and clean Singapore is?

Making the move If you have ever contemplated a career move within insurance abroad and would like to explore Singapore a bit further please contact us. In addition to having substational information with regard to the Asian insurance job market, we can advise you on much more including housing, schooling, banking and relocation. The good news is that work permits for skilled professionals are easy to receive although new rules will apply from August 2014 so please email us today to get the latest information.

We look forward to hearing from you.

CLARE BETHELL DIRECTOR - HFG

www.hfg.com.sg clare@hfg.com.sg +65 6829 7153

p32-33_ACT.07.14.indd 33

24/06/2014 10:07

At the back Coffee break

Nylfia is an actuary who solves and sets cryptic crosswords created especially for The Actuary

puzzles@theactuary.com

Puzzles

— RD SWO CROS IZE PR E PUZZL

For a chance to win a £25 Amazon voucher, please email your crossword solution to: puzzles@theactuary.com by Wednesday 23 July

—

A CROSSWORD FOR ACROSS THE WORLD

Across

As this is the international edition of The Actuary, this puzzle celebrates 1 9 12 which facilitates the provision of 17 19 through the 18 efforts of 32 in areas with a lack of 34 and contributes to 8 of the profession and the spread of 7

16 19

1

2

3

4

5

6

7

1 6 9 10 12 14

21 22 26 27 30

8

32

9

10

33 34

11

Deed everyone read on sign in US! (9) Irishman picked up daughter in vehicle (5) Lacking humour, call for beheading (7) PA lures pervert in Reading (7) Touches one who lives in without a suggestion, initially (7) One gaining from entrance in shelter from wind (7) Staff mean to good man? (5) Routine examination given by Special RN is one of them? (8) Dish served with character, mostly, at East End residence (8) Dread essentially changed good man (5) Poet, no names, no ID? (4,3) Rugby team turns me over (7) Technical standard covering period of denial for accomplishments (7) Glowing remains emanate from a large number of constituents (7) Legendary Hardy creation? (5) Core users disrupted supplies (9)

Down 12

13

2 3

14

15

16

17

18

19

20

22

21

23

24

25

26

30

27

31

32

28

29

4 5 7 8 11 12 13 15 17 18 20 23 24 25

© Nylfia

28

34

33

34

29 31

Capital music experienced in company (5) International organisation has introduction to Democrat discovered (5) French novelist destroyed our picture (6) Bleed lifeblood (3) It’s academic to have Dotty cautioned (8) Developing news areas provide perception (9) Spider seen regularly in teepees in road (6) Train alternative reserve to return (3) Wind over lake? (3) Benefit in the manner specified (5) Provisional party more confused? (9) Offer of true love misplaced around noon (9) Disgusting smut taken to the nth degree? (6) See 24 23 Sailor to realise objective (6) Ditched first former lover in exposed situation backed by DJ (6) Serious wound having heart replaced by order (5) Money Riemann saved as a bit for home (5) General address desired centrally (3)

THE ACTUARY • July 2014 www.theactuary.com

p34_35_july_crossword•FINAL•CT.indd 34

24/06/2014 10:37

5 9 6 4

2 3

7 3

Squaring up Mensa puzzle 591

2 3 8 4

1

5

3

?

—

A MENSE PRIZ E PUZZL

HAVE YOU GOT WHAT IT TAKES? For information on IQ testing in your area, visit www.mensa.org.uk

—

For a chance to win a £25 Amazon voucher, email your solution to puzzle 591 to: puzzles@ theactuary.com by Wednesday 23 July

Bridge puzzle 44 Give us a break!

♠ K9432 ♥9 ♦ 542 ♣ 8752

What number should replace the question mark?

TERMS AND CONDITIONS The prize will be awarded for the first correct entry drawn at random from those received before the closing date. The winner’s name will be announced in the next edition. Please note, the puzzle editor’s decision is final and no correspondence will be entered into. We reserve the right to feature the winner’s name in The Actuary. Your details will not be passed to any third party in connection with this draw.

Mix and match Mensa puzzle 592

BARKS

On each row place two letters that can be attached to the beginning of the word to the right to give a longer word. When completed the eight added letters will give a word reading downwards.

NOBLE

What is it?

STATE

SHUTTERSTOCK / ISTOCK

p34_35_july_crossword•FINAL•CT.indd 35

E

NECESSARILY ESCAPED

R

INVESTMENT UNSUITABILITY

Use the letters given to complete the square so that four other words can be read downwards and across. What are the words?

T R E E S

W

E S

VINES

Word search Mensa puzzle 593

AEEEEEILLRRRVVYY

N

♠ A8 ♥ AKQJ432 ♦ – ♣ 9643 With E-W vulnerable, you as South decide to open 4♥ . East doubles for penalties. West leads the Q♦ . Provided clubs are 3-2, you have seven hearts, two spades and one club. So you ruff the diamond and….

Plan the play.

Bridge puzzle provided by David Lampert

Finding the link Mensa puzzle 594 There is a connection between the words (left).

What is it?

July 2014 • THE ACTUARY www.theactuary.com

35

24/06/2014 10:37

1

6

3

puzzles@theactuary.com 10

SOLUTIONS FOR MAY 2014

L

12

C

15

L

20

Hong Kong 140 Poland 100 Congratulations to this month’s winner – James Duggan of Punter Southall

Australia ?

Canada 90

The road to Oz Mensa puzzle 589 How many miles should it be to Australia on this signpost? Answer: 130. Each consonant is worth 20 and each vowel is worth 10. They are totalled to give the miles..

1

1 3

0 Numbers game Mensa puzzle 590

2 5

4

What numbers should replace the question marks?

36 252 43 Answer: Answer: 261 and 38.

15 120 23 Top row: second box = first box multiplied by 6, third box 29 ? ? = first box plus 6 Next row: second box = first box multiplied by 7, third box = first box plus 7, Next row: second box = first box multiplied by 8, third box = first box plus 8. Bottom row: second box = first box multiplied by 9, third box = first box plus 9

2

8

3 1

23

25

21

1 2 3

13

3

E S

THE ACTUARY • July 2014 www.theactuary.com

p36_july_puzzle_solution•FINAL•CT.indd 36

R O I

B E D E H R A T E L S F I S H Y 22

26

24

K I E V

6

P D A U P C A L Y I A L 18

S O R I G A E N I R S T

N N T Z

1 ?

A fire engine travels seven miles to a fire at 45 mph. Its tank holds 500 gallons of water but has been leaking throughout the journey at a rate of 20 gallons per hour. The fire engine needs 497 gallons of water to put out the fire. By how much will it be short? Answer: 2 0.111111

—

Honeycomb quiz Mensa puzzle 588

A MENSE PRIZ E Z PUZ L

—

What numbers should replace the question mark? Answer: 1. Five. The vertical totals are 10, 12, 14, 16 and 18.

Congratulations to this month’s winner – Abbie Phillips of Mercer

You, as South, have 5 points and spades are not very good yet South has bid 4. Why do you think it is a good bid (if you do)? Don’t forget you can’t see partner’s hand.

♠102 ♥AK ♦K10965 ♣Q1093

♠J9854 ♥1073 ♦A742 ♣6

36

A

E N D O S M O S I S

NB: North’s 3♠ bid is a gross overbid with only 3 trumps. Two questions:

N

The Bidding N E 1♦ 1♣ 2♠ Pass Pass Pass

17

5

Bridge Puzzle 43 With a little help

♠AK6 ♥9865 ♦3 ♣AK842

W

H E C U B A

14

19

S L I I P I I N T P O 9

Think tank Mensa puzzle 587

7

21 126 27

♠Q73 ♥QJ42 ♦QJ8 ♣AJ75

8

16

2

1

4

11

2 4

0

3

N E R D E N N O W

R

C A M E L L I A

2

A F Y L E I G L E V Y R E C I C H E A P L A C E C R G A T I V N B G E N E R U L R M A L S A

7

© Nylfia

At the back Coffee break

S 1♠ 4♠

W 2♦ Pass

Disappointed to see partner only has 3 trumps, how do you play this after the Q♦ lead?

Note that assuming you play clubs, East shows up with 4. Hint: Look at the title.

Answer: 1. Why do you think South’s bid of 4♠ is a good bid? First, you quite reasonably expect partner to have 4 spades for his jump raise. Also, the opposition appear to have 8 diamonds between them, leaving partner with a singleton. It therefore looks as though you can ruff all your diamond losers. This must give 4♠ a sporting chance.

2. You need some help. You do not want trump leads. You have 5 tricks and need to make 5 more separately from the other 6 fairly low trumps. Win A♦ and play 2 clubs discarding a heart. Now lead a 3rd club and ruff it. Ruff a diamond and play a 4th club. When East follows with a winning club, discard another heart. This is the key play. If you ruff, West will overruff and lead a trump. East is now worried that you are getting rid of hearts and cashes AK♥ Bad decision but difficult for East to see that he must lead a trump and then another when in with A♥. You ruff the 2nd and ruff a diamond with K♠.

You ruff a 3rd heart (East discarding – which means that he probably doesn’t have Q♠, otherwise he would ruff and lead another trump) and now ruff your 4th diamond with A♠ (West discarding his last heart). You now ruff your 4th heart with 9♠, hoping East started with 10♠. You are in luck. West overruffs with Q♠ but you take the 13th trick with J♠. Game made – well played but a bit lucky!

Bridge puzzle provided by David Lampert

SHUTTERSTOCK

24/06/2014 10:38

At the back Student student@theactuary.com

Student Summer means the great outdoors is beckoning. Jessica Elkin looks at the upside of working through it when there are interns to lean on

such opportunities, as even firms that don’t offer a paid internship programme may allow you to get some work experience for a week or two. A cursory Google will tell you all sorts of things that will help you when applying, and many employers’ websites have careers blogs that are useful and informative.

Nobody puts Baby in the corner

MAKE HAY WHILE THE SUN SHINES As a kid, summer was the best time of year.

For starters, you didn’t have to go to school.

This entailed all sorts of other advantages, such as lie-ins, no exams, summer holiday telly, and never needing to wear anything stifling or tedious to put on and button up.

It’s not the same nowadays. No long holidays, for starters. Nice places become clogged with families on days out, which must be frustrating whether you are part of this maelstrom yourself or not. When you’re having a bad day already, everything becomes more difficult and tedious than usual.

For Londoners, entering any tube station is like descending into the pits of hell. Plus, like most grown-ups, I am convinced that those were endless halcyon days of clear azure skies before the weather got permanently rubbish circa 2005.

As actuarial students, summer sees a spate of early procrastination followed by increasing concern and stress over how much of your study notes you’ve yet to cover. “We’ve got how long till exams?”… But this student page isn’t about that, so sorry to bring it up.

Worker bees As well as the above, of course, summer heralds the commencement of internships at many companies nationwide. The more jaded of readers – missing the long summer holidays that university signified – may derive a sense of bitter satisfaction at the arrival of interns in their workplace. Fresh-faced youngsters

PHIL WRIGGLESWORTH

p37_july_student•FINAL•CT.indd 37

trading in the best part of their university holidays for a slice of working life, and some actuarial seasoning on their CV. If you’re one of these youngsters waiting to get started, you might like to check out the profession’s ‘Get a taste of actuarial work’ page on the ‘Becoming an Actuary’ section of its website. You can find accounts of internship experiences by various students, including a helpful page by Barnett Waddingham where three interns list what they wish they’d known before starting their placement.

If you’d like to be one of these youngsters, there’s information there on actuarial employers and the sorts of experiences they offer. You could always speculatively apply for

For those of us already embedded in an actuarial firm and career, the question becomes how to give interns not only the best possible experience while they’re working alongside us, but also a useful and realistic insight into the work that we do. If it’s not for them, best that they know sooner rather than later. How much control you personally have over this may vary.

Some companies may offer specific work programmes whereas for others the interns are accepted onto teams as though regular graduates and placed under the warm feathery wing of a current student.

It’s easier to utilise an intern over the course of a few months than it is to work with a short-term work experience student, if only because learning actuarial skills takes a lot of trial and improvement, and a week or two may not give as full a picture of the day-to-day job as you’d like.

To this end, I personally like to alternate between giving the student work to do and letting them see what I am doing. The latter is always impressive and important.

The other important function of an intern is to lighten the workload of everyone else when it’s a bit heavy. Forget getting them to make tea for everyone – I look forward to being able to delegate to gain more breathing space, and then I can make the tea myself. It’s good to keep them busy, and interns may be pleased to find that they are actually a valuable member of the team, and not merely boondoggling*.

So, while the season may not be what it once was to you, due to lacking blissfully long holidays rife with lie-ins and ice cream, you may at least have an intern to lean on. This may be especially helpful towards the end of summer when exams loom threateningly on the horizon. Cheery thought, isn’t it? A nice silver lining in the ever-cloudy British summer. *Boondoggle: word of the day meaning “to do work of little or no practical value merely to keep or look busy”. Never let it be said that this page is not educational. a

July 2014 • THE ACTUARY 37 www.theactuary.com

24/06/2014 10:39

At the back Appointments

SPONSORED BY

peoplemoves@theactuary.com

Moves Exeter Family Friendly has appointed David Cobley as its chief actuary in a newly created executive role to head up its pricing and actuarial function.

Cobley was previously commercial director for Simplyhealth. Prior to joining Simplyhealth in 2011 he had a number of senior roles within the Lloyds Banking Group and has most recently worked with Legal & General Insurance.

Exactval has appointed Jim Adkins (above right) as senior valuation technician. He was previously at Aon Hewitt where he ran valuation teams in Hungary and India. Now returned to the UK he will coordinate and complete defined benefit scheme

valuations outsourced to Exactval by both employee benefit consultants and insurance companies.

a number of defined benefit schemes with total assets in excess of $85bn. Clark is currently treasurer for Shell’s global Downstream and Trading businesses; he will take up his new role later this year.

JLT Employee Benefits has announced the appointment of Ian Burns as director in its investment consulting business.

Burns joins from KPMG where he was principal investment consultant.

He has 17 years’ experience.

and pension advisory for the UK, Scandinavia and CEMEA countries.

Barnett Waddingham has appointed Scott Eason (above) as its new head of insurance consulting. Eason will succeed John O’Neill, who is retiring. He joins Barnett Waddingham from Société Générale’s Corporate and Investment Bank, where he was managing director and head of insurance

Michael Clark (above) has been appointed as vice president for group pensions at Shell which sponsors

and frequency of my sneezes.

Life insurance.

If you could learn one random skill, what would you learn? Beat boxing.

Favourite Excel function? Large. Max is great,

If you could go back in history, who would you like to meet? Michael Jackson – His music was superb and I would ask him for a dance lesson or two.

but what if you want to find the second largest number? Eh?

What’s your most treasured possession? My

What would be your personal motto?

How do you relax away from the office?

Don’t be jel, be reem.

When I’m not dancing with my hip hop crew, I spend hours with my housemate singing y songs g and playing ‘would you silly rather?’

What are the top 3 things you would like to achieve in your lifetime? 1. To have my photo in The

What motivates you? Attractive gym instructors.

Name five dream companions to be stuck on a desert island with? Bear Grylls – He would uld vival keep me safe with his incredible survival skills; Tom Kerridge – He could cook me he is delicious meals; Beyoncé – because she ling – the pinnacle of perfection; Ryan Gosling everybody needs some eye candy on a ause desert island; Captain Sparrow – because rt he managed to get himself off a desert island by just drinking rum.

What’s your most ‘actuarial’ habit?

I’ve been known to carry out experience analysis on the quantity

38

ACTUARY OF THE FUTURE

Employer and area of work Hodge Lifetime.

Like a pimple on her derrière.

building Metlife’s UK bulk annuity business from scratch to a market leading provider with approximately £2.5bn of assets under management.

A Fellow of the IFoA, he has a detailed understanding of insurance regulation and the drivers of bulk annuity pricing.

www.hfg.co.uk

KATIE JOHNSON How would your best friend describe you?

KPMG’s UK pensions practice has recruited Adam Davis (right) formerly head of pricing and product development at Metlife UK, as a senior member of its Insurance Solutions leadership team.

Davis is based in its Manchester office. He is very experienced in the pensions insurance industry with a wealth of bulk annuity experience.

From 2007 until this year, David was an instrumental figure in

Alternative career choice? Elphaba Alternativ in the W West End musical Wicked.

Tell us ssomething unusual about yoursel I can stick my tummy yourself re out really far to resemble a bab bump. It’s quite freaky! baby

G Greatest risk you have ever t I travelled in a tuk taken? tuk in Thailand. My life flashed before my eyes!

calculator phone case. It’s cool, honest!

Actuary magazine and qualify, of course.

2. To have a happy, healthy family.

3. To help design my own house.

If you ruled the world, what would you change first? I would make it totally acceptable to break out into song and dance whenever you feel it is necessary.

Do you know an actuary destined for greatness?

You can nominate an Actuary of the Future by emailing

aotf@theactuary.com

THE ACTUARY • July 2014 www.theactuary.com

p38_july_AOTF_peop•FINAL•CT.indd 38

24/06/2014 10:40

www.theactuaryjobs.com

Appointments

A P PO I N TME N TS To advertise your vacancies in the magazine and online please contact: Emmanuel Nettey +44 (0) 20 7880 6234 or emmanuel.nettey@redactive.co.uk

You cannot be serious!

HFG work on a variety of roles across the market from roles at the Big 4 to niche Consultancies. If you don’t see a role that matches your requirements and interests, please contact one of our consultants as we do not advertise all of our jobs.

General Insurance Roles Capital Manager

Head of Capital Modelling £130k - £160k Basic, London

£100k - £130k Basic, London

Leading Lloyd's syndicate is looking for a Head of Capital modelling to head up their team. Whilst reporting to the Risk Officer, there is scope to build and strengthen this team and make it your own. The right person should have previous capital modelling experience. To find out more please get in touch. william@hfg.co.uk

A General insurer is looking for a qualified Actuary to run their capital division. A vital role requiring someone to work closely with the regulator.

The right person should have previous capital modelling experience and experience working with Non Actuaries. Reporting to the Chief Actuary this is a great chance to further your career. william@hfg.co.uk

Head of Pricing

Reserving and Pricing Actuary £90k - £125k Basic, London

Lloyd’s syndicate is looking for a qualified Actuary to lead their pricing function. With one direct report there is scope for the pricing division to really grow under this person. Reporting directly to the Head of Actuarial, this role is a great chance to grow and lead the pricing team. To be considered previous pricing experience is needed. william@hfg.co.uk

Pricing Analyst (Personal Lines)

£75k - £90k Basic, London Large General Insurer is looking for a nearly/newly qualified Actuary to work across pricing and reserving. The role will work closely with the underwriters and senior management within the group. The Chief Actuary is looking for a dynamic self starter who can work well across both areas. william@hfg.co.uk

Pricing Analyst

£45k - £65k Basic, London

£45k - £55k Basic, London

Large composite insurer are looking for a part qualified student to join their pricing team. This position will sit on the personal lines side of business; as such, experience in pricing personal lines is highly desirable. Furthermore there are good internal progression and rotation opportunities, offering exposure across the business and lines. ben@hfg.co.uk

Mid tier Lloyd’s syndicate looking for a part qualified actuarial student to join their pricing team. The intimate nature of the actuarial department offers an entrance into the capital modelling team as well. This role provides great career progression, with high degrees of responsibility and autonomy. Experience in Remetrica software is desirable. ben@hfg.co.uk

Actuarial Analyst

Actuarial Analyst £55k - £65k Basic, London

Leading managing agent is looking for a part qualified actuarial student to join their capital modelling team. The ideal candidate will have 3yrs+ experience in a similar London Market role. A highly technical position, this role requires good knowledge in Igloo or Remetrica. Reporting directly into the Head of Capital of the firm, this position offers good exposure across the whole of the internal model. ben@hfg.co.uk

£65k - £75k Basic, London Reputable Lloyd’s syndicate are looking for a senior-level student to sit in their reserving team. The role offers responsibility across all the lines of business the syndicate underwrites, but will involve predominantly reserving Lloyd’s business. This is the perfect role for a reserving actuary looking to broaden their experience and increase their development. ben@hfg.co.uk

WILLIAM GALLIMORE

RUPA PITHIYA

BEN HICKEY

Director

General Insurance Contract

General Insurance

+44 (0) 207 337 8826 william@hfg.co.uk

+44 (0) 207 337 1200

+44 (0) 207 220 1106

rupa@hfg.co.uk

ben@hfg.co.uk

+44 (0) 207 337 8800

www.hfg.co.uk July 2014 • THE ACTUARY 39 www.theactuary.com

p39_ACT.07.14.indd 39

23/06/2014 16:12

Appointments

Your new Actuarial recruitment gateway FIND OUT MORE ON OUR WEBSITE WWW.FENASSOCIATES.COM

LONDON MARKET PRICING ACTUARY

CAPITAL ACTUARY (IGLOO)

FIRST IN-HOUSE ACTUARY

4XDOLþHG 3ULFLQJ $FWXDU\ PLQ \UV 34(

WR MRLQ DQ HVWDEOLVKHG DQG KLJKO\ UHJDUGHG 3ULFLQJ WHDP ,QGLYLGXDO ULVN RXWZDUGV 5, 3ULFLQJ SURþWDELOLW\ DQG SRUWIROLR DQDO\VLV DQG UDWLQJ HQJLQHV QHZ SURGXFW GHYHORSPHQW

,QVXUHU VHHNV QHDUO\ WR QHZO\ TXDOLþHG 'HYHORSLQJ DQG UXQQLQJ H[LVWLQJ LQWHUQDO FDSLWDO PRGHOV FDOFXODWLRQ RI VWDQGDUG IRUPXOD FDSLWDO UHTXLUHPHQWV PRGHO EDFN WHVWLQJ PRGHO YDOLGDWLRQ DQG LQWHUDFWLRQ ZLWK 6HQLRU 0DQDJHPHQW

6SHFLDOLVW ,QVXUHU VHHNV WKHLU þUVW LQ KRXVH $FWXDU\ HLWKHU TXDOLþHG RU WKURXJK H[SHULHQFH 5ROH LQFOXGHV 5HVHUYLQJ &DSLWDO 0RGHOOLQJ 6ROYHQF\ ,, 256$ GHYHORSPHQW DQG WHFKQLFDO SURYLVLRQV :LOO FRQVLGHU FDQGLGDWHV RQ D SDUW WLPH EDVLV

b ¸ ­

b ¸ ­

b ¸ ­

/RQGRQ e e SHU DQQXP PERMANENT

INFO@FENASSOCIATES.COM | +44 (0)20 3322 7474

40

/RQGRQ e e SHU DQQXP PERMANENT

6RXWK (DVW e e SHU DQQXP PERMANENT

WWW.FENASSOCIATES.COM

THE ACTUARY • July 2014 www.theactuary.com

p40_ACT.07.14.indd 40

24/06/2014 09:08

London : Chicago : Hong Kong : Singapore : Shanghai

www.theactuaryjobs.com

Reserving Actuary - London $WWUDFWLYH 6DODU\ %RQXV %HQHÂżWV Our client wants to enhance their team with a junior reserving actuary with responsibilities for reserving. That includes the calculation of the reserves , the writing of reserving reports and documentation of estimations for auditors and regulators.

The actuary will be also involved in business planning, underwriting VXSSRUW DQG 6ROYHQF\ ,, VSHFLÂżF UHTXLUHPHQWV 7KLV LV D JRRG FKDQJH IRU D SDUW QHDU TXDOLÂżHG DFWXDU\ WR ZRUN IRU D global player. They will train and support you for your actuarial exams.

Knowledge of Excel and VBA programming as well as R would be D SOXV *RRG FRPPXQLFDWLRQ VNLOOV DUH LPSRUWDQW DV WKH SHUVRQ ZLOO interact with international colleagues as well.

Contact phu.ngoc@ipsgroup.co.uk +44 207 481 8686

3HQVLRQV %X\RXW 6SHFLDOLVW /RQGRQ $WWUDFWLYH 6DODU\ %RQXV %HQHÂżWV 7KLV SUHVWLJLRXV ILUP VHHNV D TXDOLILHG DFWXDU\ WR MRLQ LWV VXFFHVVIXO specialist team which develops buy in/buyout business and other insured GHULVNLQJ SURGXFWV <RX ZLOO UHYLHZ GHULVNLQJ SURSRVDOV DQG GHWHUPLQH WKH WUDQVDFWLRQV WR SXUVXH DQG ZRUN ZLWK WKH SULFLQJ WHDP WR SXW IRUZDUG D FRPSHWLWLYH TXRWH <RX ZLOO DOVR OHDG QHJRWLDWLRQV RU VXSSRUW WKH 'HDO Principal, and present at client pitches as well as helping transition schemes. $Q LPSRUWDQW SDUW RI WKH UROH ZLOO EH WR ZRUN ZLWK WKH QHZ EXVLQHVV WHDP DQG FXOWLYDWH UHODWLRQVKLSV ZLWK HPSOR\HH EHQHILW FRQVXOWDQFLHV <RX ZLOO EH D TXDOLILHG DFWXDU\ ZLWK DW OHDVW \HDUV 34( DQG D GHHS NQRZOHGJH of DB schemes gained either in a large consultancy or buyout provider.

Experience of accounting, transactions and buyouts would be advantageous DV ZHOO DV SUHYLRXV H[SHULHQFH RI ZRUNLQJ VXFFHVVIXOO\ DORQJVLGH D UDQJH RI VWDNHKROGHUV Contact a.chitnis@ipsgroup.co.uk +44 207 481 8686

Reserving Manager - Yorkshire Investment Consultant, â&#x20AC;&#x2DC;Big 3â&#x20AC;&#x2122; Consultancy - London $WWUDFWLYH 6DODU\ %HQHÂżWV 3DFNDJH Â&#x2026; Â&#x2026; %HQHÂżWV $ JURZLQJ LQVXUDQFH FRPSDQ\ LV ORRNLQJ WR KLUH D 5HVHUYLQJ 0DQDJHU to join their Actuarial Team. Reporting to the Head of Actuarial, this is D NH\ UROH GHDOLQJ ZLWK YDULRXV VWDNHKROGHUV LQFOXGLQJ WKH %RDUG DQG ([HFXWLYH 'LUHFWRUV 0DLQ WDVNV ZLOO EH WR PDQDJH D WHDP DQG OHDG DQG participate in the development and implementation of the reserving function/strategies. The reserving manager will carry out regular reviews of technical provisions and communicate results to the Technical Provisions Committee. This is a great opportunity for an ambitious and technically strong actuary who wants to manage a team in a great ZRUNLQJ HQYLURQPHQW Contact phu.ngoc@ipsgroup.co.uk +44 207 481 8686

Leading global consultancy with blue chip client base and meritocratic culture is expanding their London Investment Consulting practice.

Wide ranging responsibilities include managing and developing client relationships, recommending investment strategies and conducting manager research. ([SHULHQFH DQG 4XDOLILFDWLRQV FOLHQW IDFLQJ LQYHVWPHQW RU SHQVLRQV FRQVXOWLQJ H[SHULHQFH DQG QHDUO\ QHZO\ &)$ RU ),$ TXDOLILHG 7KLV LV D rare opportunity to build a career in Investment Consulting in a supportive, FROOHJLDO HQYLURQPHQW ZRUNLQJ ZLWK VRPH RI FRXQWU\ÂśV PRVW FRPSOH[ clients.

Contact david.higgo@ipsgroup.co.uk +44 207 481 8686

/RQGRQ 2IÂżFH ,36 *URXS /OR\GÂśV $YHQXH +RXVH /OR\GÂśV $YHQXH /RQGRQ (& 1 (6 7HOHSKRQH (PDLO DFWXDULDO#LSVJURXS FR XN /HHGV 2IÂżFH ,36 *URXS 6W 3DXOÂśV 6WUHHW /HHGV /6 /( 7HOHSKRQH (PDLO DFWXDULDO#LSVJURXS FR XN p41_ACT.07.14.indd 41

September 2013 â&#x20AC;˘ THE ACTUARY 41 www.theactuary.com

23/06/2014 16:15

Appointments We are a recruitment consultancy with a difference Bringing Talent Together

Pensions Investment Risk Manager London £100,000 plus excellent bonus and bene¿ts A large pension fund is seeking to add a recently quali¿ed investment consultant to its in-house function. The role will involve assisting in the management and oversight of the asset portfolios of the UK Pension Schemes. While the work will mainly focus on the investment aspects, a thorough understanding of the wider pension liability and risk management will be required.

International Investment Strategy Manager London £100,000 plus highly competitive bonus

Contact

We are seeking a senior investment specialist to co-ordinate the development and implementation of investment strategies for a number the European business units of a global insurance group based.

This includes developing an appropriate asset management structure and the selection and oversight of third party managers.

Head of Actuarial, Insurance Pensions Risk Management 020 7092 3237

Actuarial, Pensions & Insurance Risk Management 020 7092 3265

rob.bulpitt@eamesconsulting.com

Ian.povey@eamesconsulting.com

Of¿ce Number +44 (0)20 7092 3200

For current opportunities please visit www.eamesconsulting.com

Pensions & Investments | Non-Life | Life & Health

Rob Bulpitt

UK | Europe | Asia Paci¿c

Ian Povey

www.eamesconsulting.com

Your specialist actuarial recruiter in the UK, Mainland Europe, and Asia-Pacific, with dedicated sector specific consultants covering; Non-Life Life Pensions and Investments For a confidential career discussion please contact us on +44 (0)207 332 5870 or actuarial@mansionhouse.co.uk 42

THE ACTUARY • July 2014 www.theactuary.com

p42_ACT.07.14.indd 42

23/06/2014 16:19

www.theactuaryjobs.com

Life Insurance Roles Consulting Managers & Directors

Pricing Manager £75k - £100k Basic, London

£60k - £100k Basic, London

An ambitious manager is needed in the Pricing and Product Development team within a large life insurer. Leading a team of students, you will play a key part in the producing, pricing and marketing of products. If you are looking for the next step up where you can really make a difference and get involved in key areas of the business, this is perfect. sophia@hfg.co.uk

A big four consultancy is building their life practice and looking for a number of qualified life Actuaries across all specialisms. An opportunity to broaden your actuarial experience and gain insight into various insurers within the market. If you have come from a consulting background or have always wanted to go into this area, then this is the position for you! sophia@hfg.co.uk

Reinsurance Valuations Actuary

Risk & Capital Actuary £55k - £70k Basic, South West England

£60k - £80k Basic, London A leading life reinsurer is looking for a qualified Actuary to join their expanding team. You will manage two students and liaise regularly with senior stakeholders to make key decisions in the company. Prior reinsurance experience is not essential but a commercial outlook and previous life insurance experience will really help with this position. sophia@hfg.co.uk

A leading composite insurer is looking for a nearly/newly qualified actuary to join their capital management team. You will sit across the actuarial and risk team and get involved with the risk oversight within the business. This role is perfect for a life actuary who is looking for a more versatile role and interaction with various teams across the company. sophia@hfg.co.uk

Reporting Actuarial Analyst

Solvency II Risk Actuarial Analyst £35k - £50k Basic, Surrey

£30k - £45k Basic, London This growing reporting team within a multinational life insurer needs a hard working student looking to expand their experience. You will work alongside influential life actuaries and get exposure to both quarterly and yearly valuations. Good progress through the exams is preferred with previous life office experience. You will get the chance to rotate and take full advantage of the study package. sophia@hfg.co.uk

With the Solvency II deadline approaching, this large life insurer needs a part to nearly qualified actuary to help with the implementation of Solvency II. You will not need any prior experience working in Solvency II but a good technical foundation and the ability to pick up work quickly. A competitive study package and good rotation programme included. sophia@hfg.co.uk

Contract Roles Capital Analyst

S2 Actuary Contractor FTC £75k - £100k, 6 months, London

£700 - £900 per day, 6 months, London

A leading insurer is currently looking for a capital analyst to work in their centre of excellence team. You will be a core team member helping with enhancing the model as well as documenting it. You must have strong capital modelling and methodology experience and excellent written skills for the documentation work. rupa@hfg.co.uk

This leading insurer is looking for a contractor, for an initial 6 month period (subject to extension) with reserving experience. You will be required to help backfill the day to day reserving work as well as help the quarterly GAAP/technical provisions under Solvency II and reserve risk parameters. You must have relevant GI experience. rupa@hfg.co.uk

Solvency II Actuaries

Financial Reporting

£550 - £1100 per day, 6 months, London

£600 - £900 per day, 6 months, London

A growing niche insurer is keen on recruiting a number of Solvency II Actuaries to work within their Internal Model, Balance Sheet and Systems teams for 6 months to build upon the existing Solvency II project. Roles are typically seeking Qualified Actuaries with significant Solvency II experience in either the Standard Formula or Internal Model approach. rupa@hfg.co.uk

A nearly/newly qualified Actuary with a good understanding of Financial Reporting including MCEV and IFRS is required for this 6 month contract in London. Experience covering different international regulations and relaying key themes and ideas to different business units overseas would be highly desirable. Prior projects, consultancy or contracting experience would also be beneficial. rupa@hfg.co.uk

Risk Roles Economic Capital Methodology Manager

Senior Quantitative Risk Analyst

£90k - £110k Basic, London

£45k - £55k Basic, London

You are an accomplished Risk Actuary with in depth Solvency II experience and strong communication skills. The role sits within the Risk function of a multinational composite insurer and will be responsible for the authoring of the firms Solvency II justification and methodology. The successful candidate will have strong technical expertise in Solvency II and risk management who will be able to interact and effectively communicate with Actuarial, Investment and other risk management functions. You will report into a Risk Director and take management of a small team. This role offers huge variety and scope to progress within the business. james@hfg.co.uk

My client is looking for a quantitative Senior Risk Analyst to join their small team. Working on the ERM framework you will help with all quantitative enhancements and be responsible for providing the Board with clear information of all the financial and non financial risks. You will have the opportunity to contribute new ideas to this evolving team and get exposure to all risk types and business areas. Quantitative modelling skills are desirable whereas previous experience of working in risk within insurance is essential. erin@hfg.co.uk

SOPHIA CROSSMAN

JAMES KITT

ERIN O’DONNELL

Life Insurance

Risk Management

Risk Management

+44 (0) 207 337 1207

+44 (0) 207 337 1202

+44 (0) 207 337 1202

sophia@hfg.co.uk

james@hfg.co.uk

erin@hfg.co.uk

0207 337 8800 p43_ACT.06.14.indd 43

www.hfg.co.uk

September 2013 • THE ACTUARY 43 www.theactuary.com

actuarialteam@hfg.co.uk

23/06/2014 16:20

Appointments

QUIZ

Solvency II Contract Opportunities – Various locations Seeking Solvency II Programme Managers, Lead Actuaries, Prophet Developers and Modellers – quali¿¿ed and part quali¿ed actuaries for multiple opportunitiess in MAP London and green ¿eld sites. Client work includes IMAP ngevity gevity contracting, Standard Formula Model contracting, Longevity tracting. g. documentation contracting, Partial Internal Model contracting.

For a con¿dential discussion call Adam Goodwin on 0207 929 7667 or email a.goodwin@darwinrhodes.com A large, global insurer is looking for a quali¿ qualili¿ qua li¿ed ed Actuary to join their eir London of¿ of¿ce ce in a reserving focused role. The role will sit within the Corporate team covering European and UK Financial Lines. A solid reserving and large commercial lines background is required as well as a business approach where this person can be innovative and bring new ideas to the team. Travel is required to various European countries, four times a year.

For a con¿dential discussion, please contact Victoria Cruickshank on v.cruickshank@darwinrhodes.com or call 0207 929 7667

The lowest possible aggregate score in a completed frame of sn ooker is 24.True or false?

Please subm it your answ ers to London@da rwinrhodes .com

Modelling Systems Dev Development Manager – Scotland Scotla This permanent role focuses on, and is responsible for, delivery of all aspects of the maintenance and developments to the actuarial modelling systems which are used in the ¿nancial modelling required for the capital position, IFRS reporting, Value of New Business and reinsurance treaties. Would suit newly Quali¿ed or Quali¿ed with experience, salary Àexible.

For a con¿dential discussion call Clinton Poore on 0207 929 7667 or email c.poore@darwinrhodes.com

Congratulations to Michael Doyle for winning last months quiz

W www.darwinrhodes.com E London@darwinrhodes.com

Senior Actuary – Re-Insurance Broking

Regional Chief Actuary – Asia Pacific

Hong Kong, HK$1.3m + package and bonus

Singapore, Competitive Package + Relocation

Leading global broker based in Hong Kong is seeking to hire a talented actuary to liaise with its Greater China clients and provide varied actuarial support. This is a commercial role which will see you assist clients with technical pricing, reinsurance optimisation, portfolio management and capital advisory services. Fluency in Mandarin required. Superb prospects. jason@hfg.com.sg

Our client is searching for a Regional Chief Actuary to report directly to the European headquarters and have responsibility for Asia Pacific. An influential and commercial role where you will be providing regional oversight for corporate matters as well as technical pricing, reserving and reinsurance. The role requires Life and Health Insurance experience ideally in Asia. clare@hfg.com.sg

Technical Lead – Asia Pacific

Actuarial Opportunities in China

Hong Kong / Singapore, Competitive Package

Beijing or Shanghai, Dependent on Experience

A fantastic opportunity to be the senior technical lead of this highly respected player based out of their Singapore or Hong Kong office. They a seeking a highly experienced Life Actuary who has deep knowledge of With Profits and MCEV reporting. This is a career defining role with influence across Asia Pacific both internally and externally. graeme@hfg.com.sg

Are you based in the UK and considering actuarial opportunities in China? There is an unprecedented demand for nearly / newly qualified actuaries in China who have gained international experience and can speak Mandarin. Whether you want to move actuarial jobs today or next year, I can advise you on the types of roles and who is hiring. tong@hfg.com.sg

Part-Qualified GI Actuary

EV, Prophet Modelling Manager Singapore, SGD 8,000/month + bonus

Singapore, Market competitive

Global insurer enjoying prestigious reputation and huge premium market share, writing locally and internationally, is looking for a part-qualified Non-Life actuary to be based in Singapore. They want a strong, well-rounded profile with a mix of pricing and reserving experience. Outstanding academics highly regarded. merri@hfg.com.sg

A global Life insurer in Singapore are looking for a Manager in their Financial Reporting (Embedded Value, MCEV) and Prophet Modelling space. If you have got solid EV or/and MCEV experience with good Prophet Modelling skill, as well as previous supervisory experience, you will be the right person for them. hallie@hfg.com.sg

HFG Singapore Office: Jason Sykes Clare Bethell Graeme Braidwood 44

Managing Director Director Senior Consultant

Hallie Chin Merri Knox Tong Yu

Consultant Consultant Consultant

www.hfg.com.sg +65 6829 7153

THE ACTUARY • July 2014 www.theactuary.com

p44_ACT.07.14.indd 44

23/06/2014 16:25

www.theactuaryjobs.com

“The best thing about working for Mercer is the people, working with very clever individuals, you can learn from them on a daily basis” ZAHID ZAMAN, RETIREMENT ACTUARY

Are you looking for a career where excellent training and attractive rewards come as standard? Then you’ll fit in perfectly at Mercer. We are a global consulting leader in talent, health, retirement and investments and we can promise you outstanding prospects as part of our world-class team.

FINANCIAL STRATEGY GROUP ANALYST

LONDON

Mercer’s group of pension risk experts, the Financial Strategy Group, specialise in delivering strategic risk advice to pension scheme trustees and sponsors. Our multi-disciplinary team brings together strong capital market expertise with actuarial and investment consulting to provide a holistic approach to pension risk management. Our advice covers the broad spectrum of risk management solutions ranging from innovative liability hedging to risk transfer or balance sheet financing. Through our innovative approach, the group has been involved with a number of market leading transactions.

As an analyst joining the group you will work as part of a dynamic team to develop and deliver customised and innovative solutions and advice to our clients to help them manage pension risk, whilst working at the forefront of the changing pensions landscape. Our interventions are often bespoke and frequently involve combining asset solutions, liability management and the use of the corporate balance sheet. This is a fantastic opportunity for you to develop your core investment and/or actuarial skills and knowledge and learn from others as you build a platform for career growth at a global consulting firm.

PART QUALIFIED ACTUARIAL ANALYSTS

NATIONWIDE OPPORTUNITIES

Within this role you will work as part of a team supporting consultants and actuaries in all aspects of pensions consulting and actuarial work whilst gaining significant exposure to clients and developing your knowledge and consulting skills. With opportunities in many of our UK locations, this is a fantastic chance to develop your career as a key member and part of a team recognised for the quality of its thinking and the consistency of its performance.

Looking for a new challenge? Then discover more and apply online by visiting

careers.uk.mercer.com

TALENT. HEALTH. RETIREMENT. INVESTMENTS.

July 2014 • THE ACTUARY 45 www.theactuary.com

p45_ACT.07.14.indd 45

24/06/2014 09:12

Appointments LI FE HEALTH LONGEVITY ACTUARY

LIFE ACTUARY - RISK & CAPITAL

£ excellent + bonus + benefits

up to £80k + bonus + benefits

LIFE LOCATION UPON APPLICATION

LIFE SOUTH WEST

STAR1888

LIFE CONSULTANT - ECONOMIC CAPITAL £ excellent + bonus + benefits STAR1960

LIFE LONDON

STAR1865

Market-leading insurer is seeking a qualified life actuary with the ability to engage with and influence stakeholders to be responsible for the implementation of the strategic road map for its internal longevity capability.

Play a key role within risk and capital management for a leading life insurance business, working to ensure the provision of sound second line assurance through identification, assessment and mitigation of risks.

Leading professional services firm is seeking a qualified life actuary to support developments in economic capital, including contributing to the development of new products and services.

SENIOR LIFE MANAGER

ASSET MODELLING ACTUARY

SOLVENCY II OPPORTUNITIES

£ excellent + bonus + benefits LIFE EDINBURGH

£ very attractive package STAR1954

up to £80k + bonus + benefits

LIFE SOUTH COAST

STAR1811

LIFE SOUTH WEST

STAR1961

Leading financial services group has an exciting opportunity for a qualified actuary to join its financial analysis team, where you will provide senior actuarial input to profitability, capital and other metrics.

Our client has an exciting opportunity for a qualified life actuary to lead and manage its asset modelling activity for both regulatory and economic capital purposes.

A leading global insurer has a number of vacancies for qualified life actuaries providing exposure to Solvency II related work. Contact us to learn more about these challenging and exciting opportunities.

TECHNICAL MARKETING ANALYST

DEVELOPMENT ACTUARY

MODELLING MANAGER

£ very attractive

£ excellent + bonus + benefits

£ excellent + bonus + benefits

LIFE LONDON

STAR1921

LIFE NORTH WEST

STAR1896

LIFE SCOTLAND

STAR1956

Take up a key role within a market-leading and innovative insurer. Provide insight and intellectual leadership as you work with teams from across the business to ensure products are appropriately positioned.

Leading financial services firm has an exciting opportunity for a qualified life actuary to make an impact within its team. Please contact us for more information regarding this role.

Seeking an expert modeller with significant experience of Prophet to be responsible for the maintenance and development of our client’s actuarial modelling systems.

TECHNICAL MANAGEMENT ACTUARY

PROPHET MODELLING ACTUARY

REPORTING ACTUARY

£ excellent + bonus + benefits

£ excellent + bonus + benefits

£ excellent + bonus + benefits

LIFE BRISTOL

STAR1947

LIFE BRISTOL

STAR1948

LIFE & HEALTH SOUTH COAST

STAR1841

One of the UK’s largest insurance companies is seeking a qualified life actuary with strong technical skills to take up a key management role. Please contact us for more information.

Major UK life company is seeking a qualified actuary to build, control and maintain actuarial models. You will make recommendations for, implement and support best practice architecture and standards.

Please contact us for more details of a wide-ranging leadership role and a brilliant career opportunity for a qualified actuary with this niche insurer.

LIFE CONSULTANT

ACTUARIAL SYSTEMS ANALYST

ACTUARIAL ANALYST

£ excellent + bonus + benefits

up to £50k + bonus + benefits

up to £40k + bonus + benefits

LIFE LONDON

STAR1874

Global professional services firm has an exciting opportunity for a part-qualified actuary to support a wide range of assignments from Solvency II to capital management, reserving and actuarial modelling.

LIFE SOUTH EAST

STAR1950

LIFE SOUTH WEST

STAR1959

Seeking an actuarial systems analyst from an insurance background with experience in actuarial work, model development, programming and asset-liability modelling.

Our client, a leading global insurer, is looking to add an analyst to their Actuarial Development team within Corporate Actuarial. Working with Prophet, you will deliver a range of reporting measures including IFRS and MCEV .

HEDGING MANAGER

SOLVENCY II ACTUARY

LONGEVITY AND ANNUITY PRICING

£ excellent + bonus + benefits

£ excellent package

£ excellent + bonus + benefits

STARVACANCIES LIFE LONDON

STAR1907

Take this opportunity to play a leading role in the development and implementation of hedging and alternative investment strategies within an innovative team for a global insurer.

46

STAR1812

Leading insurer is seeking a qualified life actuary to support senior management by providing specialist actuarial technical expertise and advice in relation to the implementation of Solvency II.

LIFE LONDON

STAR1863

Seeking a qualified life actuary with a very strong subject matter expertise in longevity and annuity pricing to lead the development of new products and services.

Antony Buxton FIA Anton

Lance Randles MBA La

Paul C Cook

Joanne Young Joa

MANAGING DIRECTOR MANAG

ASSOCIATE DIRECTOR AS

SENIOR CONSULTANT

OPERATIONS DIRECTOR OPER

THE ACTUARY • September 2013 www.theactuary.com M +44 7766 414 560 E antony.buxton@staractuarial.com

p46-47_ACT.07.14.indd 46

LIFE SOUTH COAST

M +44 7889 007 861 E lance.randles@staractuarial.com

M +44 7740 285 139 E paul.cook@staractuarial.com

M +44 7739 345 946 E joanne.young@staractuarial.com

23/06/2014 16:27

www.theactuaryjobs.com PENSI ONS I NVESTM ENT HIGH-FLYING PENSIONS

CLIENT INVESTMENT SPECIALIST

£ to attract the best

£ excellent + bonus + benefits

PENSIONS NATIONWIDE

INVESTMENT LONDON WITH TRAVEL

£ excellent package STAR1966

PENSIONS LONDON

STAR1878

We are working on a variety of Senior Manager, Director and Partner level consulting roles with a wide range of clients. Please contact us for more details of these fantastic opportunities for high-flying pensions actuaries.

Prestigious global fund manager seeks institutional investment specialist to advise Middle Eastern clients on strategy and technical matters.

A unique opportunity for a pensions actuary with significant business development experience to build a trustee practice for a leading consultancy.

BUSINESS DEVELOPMENT ACTUARY

PENSIONS LEADERSHIP

INTERNATIONAL BENEFITS CONSULTANT

£ to attract the best

£ excellent + bonus + benefits

PENSIONS SCOTLAND

STAR1940

PENSIONS EDINBURGH

£ excellent package STAR1704

PENSIONS LONDON WITH TRAVEL

STAR1911

A unique opportunity for a pensions actuary with local market knowledge and a proven track record of developing new business to join a leading consultancy.

Seeking a qualified actuary with strong pension consulting skills (corporate, trustee or a mix) to assume responsibility for a small portfolio of clients and to increase our client’s presence in the Scottish market.

Our client, a leading global firm, is looking for a consultant with strong communication skills and experience of the employee benefits and pensions industry gained within a developing market environment.

NEW BUSINESS ACTUARIES

LONGEVITY ACTUARY

PENSIONS CONSULTANT

£ depends on experience PENSIONS LONDON

£ excellent + bonus + benefits STAR1846

PENSIONS LONDON

£ excellent + bonus + benefits STAR1703

PENSIONS LONDON

STAR1942

Our client has a number of exciting opportunities for qualified pensions actuaries to strengthen the practice's actuarial and consulting capability within its London office through involvement in marketing and new business activity.

Our client is seeking a qualified actuary to develop the firm's knowledge, briefings and house views on longevity, undertake peer reviews of advice, create and develop new actuarial models and foster new business.

Global multi-disciplinary financial services group seeks a qualified actuary with experience of contributing to the delivery of defined benefit pension workstreams to work on challenging projects for high-profile clients.

EXCLUSIVE - SCHEME ACTUARY

PENSIONS CONSULTING OPPORTUNITIES

DC HERO

£ excellent package

£ excellent + bonus + benefits

£ excellent + bonus + benefits

PENSIONS EDINBURGH

STAR1944

PENSIONS NORTH WEST

STAR1929

PENSIONS LONDON

STAR1937

We are currently working on an exclusive opportunity for a talented individual to step up to Scheme Actuary and contribute to the business, making a real difference within the Scottish Market.

Our client has a number of opportunities for part qualified pensions actuaries to join its consulting team, where you will provide trustee and corporate advice to a wide range of clients.

Leading professional services firm seeks a part qualified actuary with understanding of the DC pension framework in the UK to support DC design, provider selection, implementation and communication of new DC schemes.

ACTUARIAL MODELLER

PENSIONS NEXT STEPS

ACTUARIAL TRAINEE OPPORTUNITIES

£ excellent + bonus + benefits

up to £48k + bonus + benefits

up to £35k + bonus + benefits

PENSIONS EDINBURGH/GLASGOW/LONDON STAR1844

PENSIONS NORTH WEST

Leading consultancy is seeking a part-qualified or qualified actuary to develop and support a range of pension scheme asset, liability and risk models.

Seeking a part-qualified or qualified pensions actuary looking to take more responsibility within a well-respected consultancy where your career development is paramount.

STAR1750

PENSIONS BIRMINGHAM OR LONDON

STAR1589

Leading UK employee benefits consultancy seeks a part-qualified actuary of the highest quality to strengthen the practice's actuarial and consulting capability.

Star Actuarial Futures Ltd is an employment agency and employment business

STAR1788

MARKET-FACING SCHEME ACTUARY

www.staractuarial.com EXCITING NEW PENSIONS ROLES

INVESTMENT MANAGER

PENSIONS M&A

£ upside potential

£ excellent + benefits

£ excellent + bonus + benefits

PENSIONS NATIONWIDE

STAR1967

Niche consultancy seeks innovative pensions actuaries with strong business development skills and entrepreneurial flair to explore developing markets. Please contact us for more details on these unique opportunities.

STAR1858

Seeking a qualified actuary to work within a multi-disciplinary environment across the pension scheme risk management spectrum. You must possess a strong investment background with an understanding of asset class behaviour.

PENSIONS LONDON

STAR1914 & STAR1915

Leading financial services firm seeks part-qualified and qualified pensions actuaries to provide specialist advice to companies and private equity firms on the pensions aspects of M&A.

Louis Manson Lou

Irene Paterson FFA Ire

Peter Baker

Clare Roberts

MANAGING DIRECTOR MAN

PARTNER PAR

SENIOR S SEN IOR CONSULTANT

SENIOR CONSULTANT

M +44 7595 023 983 E louis.manson@staractuarial.com

p46-47_ACT.07.14.indd 47

INVESTMENT LONDON

M +44 7545 424 206 E irene.paterson@staractuarial.com

M +44 7860 602 586 E peter.baker@staractuarial.com

September 2013 • THE ACTUARY 47 www.theactuary.com M +44 7714 490 922 E clare.roberts@staractuarial.com

23/06/2014 16:28

Appointments

S E LE C T E D 2014 PL A C EMENTS

L I F E H E A LTH N O N -LIFE P E N SI ONS I NVESTM ENT

2014 PLACEMENTS

HEAD OF MODELLING CONSULTING ACTUARY

HEAD OF PRICINGRESERVING ACTUARY RISK ACTUARY SENIOR ACTUARIAL ANALYST

LIFE ACTUARY

HEAD OF RISK

LEAD CONSULTANT MANAGER - INVESTMENT ACTUARIAL ANALYST

SENIOR MANAGER - PENSIONS RESERVING & CAPITAL ACTUARY PRICING ACTUARY INVESTMENT ACTUARY

PRINCIPAL RESERVING ACTUARY

GI DIRECTOR ACTUARIAL ANALYST

PRICING ACTUARY

HEAD OF ACTUARIAL CAPITAL MODELLING CONTRACTOR RISK MANAGER

ACTUARIAL ANALYST SENIOR ACTUARIAL ANALYST

RISK PRICING MANAGER RISK PRICING ANALYST SOLVENCY II CONTRACTOR

SENIOR ACTUARIAL ANALYST

HEAD OF MODELLING

STRATEGIC RISK CONSULTANT MANAGEMENT

CONSULTANT

ACTUARIAL ANALYST SYSTEMS ANALYST

SENIOR MANAGER - LIFE PRICING ACTUARY

TECHNICAL PRICING ANALYST RESERVING ACTUARY IN-HOUSE PENSIONS MANAGER LIFE CONTRACTOR

PROPHET MODELLER HEALTHCARE ACTUARY TECHNICAL PRICING ANALYST CATASTROPHE ANALYST

SENIOR LIFE ACTUARY SENIOR AUDIT MANAGER SOLVENCY II ACTUARY

48

Louis Manson Lou

Irene Paterson FFA Ire

Peter Baker

Clare Roberts

MANAGING DIRECTOR MAN

PARTNER PAR

SENIOR CONSULTANT

SENIOR CONSULTANT

THE ACTUARY • September 2013 www.theactuary.com M +44 7595 023 983 E louis.manson@staractuarial.com

p48-49_ACT.07.14.indd 48

M +44 7545 424 206 E irene.paterson@staractuarial.com

M +44 7860 602 586 E peter.baker@staractuarial.com

M +44 7714 490 922 E clare.roberts@staractuarial.com

23/06/2014 16:30

www.theactuaryjobs.com NON- LI FE DIRECTOR LEVEL PRICING

DIRECTOR LEVEL CAPITAL

£ excellent package

£ excellent + bonus + benefits

NON-LIFE LONDON

NON-LIFE LONDON

£ excellent + bonus + benefits STAR1851

NON-LIFE LONDON

STAR1839

Leading firm seeks reinsurance pricing expert with hands-on experience of pricing property catastrophe business. Please contact us for more information on this unique role.

Our client is seeking a qualified non-life actuary to lead the delivery of a wide range of capital modelling and capital management solutions.

Market leader seeks actuary with strong interpersonal skills and experience of traditional reinsurance pricing for casualty business, including exposure rating and experience rating.

RISK MANAGER

ERM OPPORTUNITIES

PRICING SPECIALIST

£ excellent + bonus + benefits

up to £95k + bonus + benefits

up to £80k + bonus + benefits

NON-LIFE LONDON

STAR1854

NON-LIFE EAST ANGLIA

STAR1920

NON-LIFE MIDLANDS

STAR1886

Leading insurer is seeking a part qualified or qualified non-life actuary with an underwriting, pricing or capital background to be responsible for the second line oversight within its risk function.

Our client has a number of exciting opportunities for talented finance or insurance professionals to review, challenge and catalyse improvements to the management/mitigation of risk within a leading insurance business.

Seeking a qualified non-life actuary or candidate with underwriting/pricing experience to contribute to the advancement of the technical and market pricing capability of our client's business.

COMMERCIAL LINES PRICING

PRICING ACTUARY

PRICING EXPERTISE

£ excellent + bonus + benefits

£ excellent + bonus + benefits

NON-LIFE LONDON

NON-LIFE SOUTH COAST

STAR1725 & STAR1786

up to £75k + bonus + benefits STAR1924

NON-LIFE SOUTH EAST

STAR1941

Seeking qualified and part-qualified non-life actuaries with proven pricing ability to contribute to the commercial lines pricing strategy, developing and presenting pricing recommendations to senior management.

Leading provider of insurance solutions is seeking a part-qualified or qualified non-life specialist to develop and produce technical guidance for actuarial and statistical pricing analysis of underwriting performance.

Leading financial services group seeks a part qualified or qualified pricing expert to contribute towards the delivery of appropriate technical price and target price in line with the underwriting strategy.

PERSONAL LINES PRICING ANALYST

CASUALTY PRICING ANALYST

PRICING ANALYST

up to £65k + bonus + benefits

£ excellent + bonus + benefits

up to £65k + bonus + benefits

NON-LIFE LONDON

STAR1900

NON-LIFE LONDON

STAR1840

NON-LIFE SOUTH EAST

STAR1943

Seeking a part-qualified non-life actuary with personal lines pricing experience to lead on a wide range of projects, including price optimisation. Experience and understanding of a wide range of software packages is desirable.

Our client seeks a part-qualified non-life actuary to take responsibility for reinsurance optimisation and design. This is an excellent opportunity for a highly-driven, detail-focused, and self-motivated actuary.

With extensive personal lines pricing experience, this is an ideal role to accelerate your career within a fast-growing organisation.

You will provide deep statistical, financial and claims experience analyses.

RISK AND CAPITAL MODELLING

RISK ANALYST

TELEMATICS ANALYST

up to £60k + bonus + benefits

up to £55k + bonus + benefits

up to £50k + bonus + benefits

NON-LIFE SOUTH EAST

STAR1969

Our client seeks a part-qualified non-life actuary with strong risk and capital experience to design, develop and implement cutting-edge modelling solutions.

NON-LIFE LONDON

STAR1968

London Market insurer seeks a Risk Analyst to maintain a robust ERM framework which actively identifies, assesses, measures, controls and reports on significant risks from all sources.

NON-LIFE LONDON/SOUTH EAST

Take this exciting chance for a part-qualified actuary to aid the development and implementation of telematics propositions in pricing, underwriting and wider business processes throughout the policy lifecycle.

www.staractuar ial.com

STARVACANCIES ACTUARIAL ANALYTICS

PRICING AND RISK DEVELOPER

LONDON MARKET PRICING

£ excellent package

£ excellent + bonus + benefits

£ excellent package

NON-LIFE SOUTH EAST

STAR1889

Leading client requires a part-qualified or qualified pricing expert to join its commercial lines pricing team. You will develop cuttingedge technical and market pricing techniques across many lines of business.

NON-LIFE LONDON

STAR1881

Seeking an IT specialist to support and develop in-house pricing and risk-analysis applications. The successful candidate will design and build tools to optimise, monitor and support the catastrophe exposed portfolio.

NON-LIFE LONDON

STAR1803

We have an exciting opportunity for a high-calibre qualified or part-qualified non-life actuary with pricing experience and strong stakeholder management skills to join a leading London Market insurer.

Antony Buxton FIA Anton

Lance Randles MBA La

Paul C P Cook

Joanne Young Joa

MANAGING DIRECTOR MANAG

ASSOCIATE DIRECTOR AS

SENIOR CONSULTANT

OPERATIONS DIRECTOR OP OPER

M +44 7766 414 560 E antony.buxton@staractuarial.com

p48-49_ACT.07.14.indd 49

STAR1784

Star Actuarial Fut Futures Ltd is an employment agency and employment business

STAR1945

CASUALTY PRICING ACTUARY

M +44 7889 007 861 E lance.randles@staractuarial.com

M +44 7740 285 139 E paul.cook@staractuarial.com

September 2013 • THE ACTUARY 49 www.theactuary.com M +44 7739 345 946 E joanne.young@staractuarial.com

23/06/2014 16:30

GENERAL INSURANCE - UK Chief Pricing Actuary Rob Bentham

London Up to £150,000

Head of Pricing Sarah Robins

London £135,000 + Bonus + Benefits

A London Market insurer is seeking a Chief Pricing Actuary to join their team. This is a newly created position for the business and will offer the successful candidate a senior management position with the opportunity to build a team around them.

I am recruiting for a Head of Pricing position with a well-known insurer. You will lead and drive the personal lines pricing area along with developing and delivering required business plans. You must have strong personal line pricing experience and be already operating at a senior level.

Solvency II Lead Rob Bentham

London (City) Up to £130,000

Newly / Nearly Qualified Actuaries London Paul Francis £90,000+ Bonus + Benefits

An exciting opportunity has arisen within a boutique London based consultancy. The business is looking for a charismatic and technically strong candidate with strong, hands-on knowledge of Solvency II. The role will have excellent career building potential.

I have three opportunities paying up to £90k. I am seeking candidates that want to work in pricing, RI pricing, capital / risk modelling and/or reserving. You must be a senior student. Training will be provided, so a great chance to diversify your skill set!

Reinsurance Analyst Rachel Kelly

Pricing & Reserving Analyst Rachel Kelly

London Up to £65,000 + Bonus + Benefits

My client is looking for a part qualified Actuary with previous reinsurance experience to work on pricing and capital projects. A varied role offering autonomy and exposure to key senior stakeholders. Good progress with actuarial exams is required.

London £45,000 + Bonus + Benefits

Are you looking for variety in your next role? I have an excellent opportunity for a part qualified Actuary to work on pricing and reserving across both personal lines and syndicate business. Candidates from various G.I. backgrounds will be considered.

CONTRACTS - GENERAL INSURANCE - UK Contractor - Technical Provisions Elise Ogden

UK - Multiple Locations £800 - £1,000/day

We are working with a number of clients, both London Market and Retail, to carry out technical provisions calculations in line with Solvency II regulations and produce the necessary documentation.

Personal Lines Pricing Elise Ogden

UK - South Coast £Fixed Term Contract

Our client a personal lines insurer is looking for a NNQ Actuary to join their commercial analysis team on a fixed term contract. Candidates must have extensive pricing experience preferably with a personal lines business, commercial lines will also be considered.

LIFE INSURANCE - UK Head of Actuarial - Health London Richard Howard £120,000 - £130,000 + Bonus + Benefits

ERM Actuary ctuary Clare N Nash ash

One of the leading health insurance providers in the market is looking to recruit a senior Actuary into their team in London. The role will have oversight for a number of qualified actuaries and have significant exposure across the group.

EXCLUS EXCLUSIVE SIVE AP APPOINTMENT: My client seeks an experienced Actuary to lead le ead thei their market leading team. You will have a strong track record in n embe embedding risk framework and enjoy holding a highly visible appo appointment ointmen in a dynamic environment.

Economic Capital Actuary Clare Nash

London (City) £100,000 + Package

Risk Actuary - Solvency II London Richard Howard £70,000 - £80,000 + Bonus + Benefits

Head office seeks a technically sound professional to lead capital projects. You will have experience in economic capital/reporting and be competent in senior stakeholder management. Exposure to both life and G.I.

Excellent opportunity within a leading group head-office in London.

They are looking to recruit a talented, qualified Actuary with experience in Solvency II, Internal model validation and economic capital.

Must have excellent documentation skills.

Prophet Modelling Natalie Lightfoot

South East £40,000 - £50,000 + Bonus + Benefits

Senior Manager - Consultancy South East Natalie Lightfoot £40,000 - £50,000 + Bonus + Benefits

A new opportunity for an actuarial student (or exam stopper) to join a prestigious prophet modelling team for a well-known life insurer.

Superb opportunity for any ambitious Actuary who is looking to join a well-regarded team.

We have an exciting mandate to recruit a qualified Actuary to spearhead projects and lead client engagement teams. An excellent blend of technical and strategic work.

London (City) £120,000 + Package

CONTRACTS - LIFE INSURANCE - UK Solvency II Pillar I Methodology Kaylash Kukadia

South East £700 - £900/day

I am currently working on an exclusive assignment to engage a Solvency II Pillar I Methodology Actuary for an initial 6 months. Ideally, you will be a qualified Actuary but we will also consider those with strong technical experience in similar roles. Skills: Solvency II/internal model/developing methodology.

p50-51_ACT.07.14.indd 50

Reinsurance Pricing Contractor Benjamin Moses

London & Europe £800 - £1,200/day

I am currently working on an exclusive assignment to engage a reinsurance pricing actuarial consultant for a 3 - 6 month project with an international client. I am seeking a qualified Actuary who has extensive experience in the reinsurance sphere or specifically in a group environment.

23/06/2014 16:32

ASIA General Insurance – UK Head of Pricing & Customer Analytics Philip Chau

Hong Kong £££Competitive

Paul Francis

0207 649 9469

This is a unique opportunity to join one of the most dynamic and innovative insurers in HK. It is a highly commercial role where you will be focusing on leadership, providing direction and adding value to the business with regards to pricing and product innovation.

Rob Bentham

0207 649 9351

Sarah Robins

0207 310 8552

Appointed Actuary Hamza Mush

Rachel Kelly

0207 310 8579

Malaysia £££Competitive

Contracts - G.I. - UK

My client is a large insurance conglomerate that is expanding rapidly across the South East Asian region. They are seeking an appointed Actuary to be based in their Malaysian office. Excellent opportunity for a fully qualified and senior individual.

Elise Ogden

Global Head of Product Strategy Gary Rushton

Clare Nash

0207 649 9350

A top tier financial services business is currently seeking a business orientated and commercial minded senior Actuary to drive the product strategy for the global life and health business lines. This role will operate at executive and board level.

Richard Howard

0207 649 9356

Natalie Lightfoot

0207 310 8547

Regional Head of Insurance Risk Gary Rushton

Contracts - Life Insurance - UK/Europe

Hong Kong £££Competitive

Singapore £££Competitive

0207 649 9355

Life Insurance - UK

Benjamin Moses

0207 310 8793

This opportunity is essentially unique to the Asia market where you will be implementing and embedding the risk management framework for my clients APAC business. Extensive experience of mortality risk essential plus the ability to lead an international team.

Ani Pannell

+353 144 75975

Kaylash Kukadia

0207 310 8581

Regional Actuary Toby Weston

Asia

Hong Kong £££Competitive

My client is a major European composite insurer, due to rapid P&C growth they are looking for their first G.I. Actuary. This is a fantastic opportunity to help local entities in Asia adopt best practice from head office across reserving, pricing, and capital.

Gary Rushton

+852 5804 9223

Toby Weston

+852 5804 9042

Head of Pricing Toby Weston

Philip Chau

+852 5804 9287

Hamza Mush

+852 6086 9879

Hong Kong £££Competitive

My client is one of the world’s largest insurance companies and a dominant player in Asian markets. They are looking for a regional Head of Pricing to cover eight countries, manage a team and report in at C level. Looking for a talented, qualified pricing Actuary.

EUROPE Actuary Consultant - Life Emérique Opou

Paris €55,000 - €65,000

France Emérique Opou

+33 1 76 77 46 30

Agathe Ibazizen

+33 1 76 77 46 31

Ireland Patrick McMahon

+353 1 437 0625

An international company is currently recruiting two life actuaries specialised in the quantitative side of Solvency II. The candidate is required to have a minimum of two years’ experience, especially in modelling (MoSes, Prophet). Fluent French required.

Benelux Niels van Nieuwkerk

+31 20 716 8327

Prophet Modeller - ALS Emina Biscevic

Julien Fabius

+31 20 716 8450

Laurence Baken

+32 24 012 249

Dusseldorf/Cologne €€€Competitive

Currently recruiting for a leading insurance group in Germany who is seeking qualified DAV actuaries with Prophet skills for group projects in stochastic/deterministic modelling and ALM. Candidates should have at least a basic knowledge of German.

Pricing Actuary/Analyst G.I. Dublin Patrick McMahon Up to €75,000 + Bonus + Benefits One of Ireland’s leading general insurance providers is looking to recruit a number of people for their actuarial pricing team. The roles range in level up to qualified. If you have relevant actuarial experience please get in touch.

Capital ICA Contracts - Contract Italy Alessio Montaruli £900 - £1,200/day I am currently working with a number of Italian clients who require interim support on their Solvency II work streams. Ideally candidates must be willing to work predominantly in Italy and be FIA/equivalent qualified.

ESG Actuary - Contract Ani Pannell

Dublin €350 - €500/day

My client requires several part qualified actuaries to assist with their product governance project. The successful candidates will have at least two years of actuarial experience, good product knowledge, as well as excellent communication skills.

p50-51_ACT.07.14.indd 51

Manuel Lovell

+49 89 2109 3362

Emina Biscevic

+49 89 3803 8965

Alessio Montaruli

+49 89 2109 3339

Switzerland Audrey Dresen

+41 43 508 0444

Please contact one of the team for further information on any of the opportunities above or visit www.ojassociates.com/jobs

Dublin €600 - €650/day

My client seeks nearly/newly qualified actuaries, the ideal candidates will have at least four years of actuarial experience within life businesses and previous exposure to ESG.

Product Governance Actuaries - Contract Ani Pannell

Germany

General Contact Details:

E

actuary@ojassociates.com

W

www.ojassociates.com @OJAssociates oliver-james-associates

23/06/2014 16:32

www.the-arc.co.uk

The Actuarial Recruitment Company

A fresh approach Principal and Senior Consultants Central London

Competitive base salaries plus very good bonus potential Insight Risk Consulting is an ambitious actuarial and risk consultancy looking to continue its rapid expansion. Insight was founded by Managing Director, Buu Truong, with a vision of bringing a new and different offering to the general insurance consultancy / contractor market.

Insight is looking for a motivated and entrepreneurial actuary with over five years post qualification experience to take up the position of Principal Consultant. This is the first at this level for Insight. The individual will have a clear path to partnership with a joint brief of business development and project delivery. The successful candidate will manage Insight’s delivery teams to ensure excellent quality and value. They are likely to have either experience of a senior company market role in risk, capital or pricing, or demonstrable hands-on consultancy experience.

In addition to the Principal Consultant role, Insight is also looking for two newly qualified actuaries to join as Senior Consultants. Insight’s senior consultant roles offer the opportunity to work with some excellent people in a professionally run consultancy that places a high value on the well being and development of the team. It offers the variety of a busy consultancy with the knowledge in depth gained by longer term engagements in the company market.

For more detailed information, or a confidential discussion, please contact Roger Massey on +44(0)781 398 9016 or e-mail roger@the-arc.co.uk Any cvs sent to The Client, either directly or through another agency will be forwarded to The ARC

Reserving Actuaries London

General Insurance £60 To £100K Base

Capital Modelling Analyst London

General Insurance To £43K

We have a number of London Market reserving opportunities for

Reporting into the Capital Reporting Manager the Capital Modelling

recently qualified actuaries and senior trainee actuaries to work

Analyst will be involved in the development, maintenance and

within a large London Market insurer that writes both insurance

documentation of the Firms’ capital models. A good insurance

and reinsurance across a large number of territories and through a

knowledge and understanding of statistical theory and capital

number of different entities. Full and detailed role descriptions are

modelling methods is needed. Whilst not essential, familiarity with

available. If you’re interested in a new reserving focused position

ReMetrica and VBA would be advantageous. A full role description is

please do get in touch. Ref: ARC Reserving

available on application. Ref: ARC26211

Call us anytime including evenings and weekends on 020 7717 9705 or email enquiries@the-arc.co.uk Andy Clark BSc FIA Roger Massey BSc MBA FIA

0781 333 7891 0781 398 9016

andy@the-arc.co.uk roger@the-arc.co.uk The Actuarial Recruitment Company is an employment agency

p52_ACT.07.14.indd 52 ARC FP.indd 1

23/06/2014 20/06/2014 16:33 11:50