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JUNE 2018

Interview Michael Green

The magazine off the Institute and Faculty of Actuaries

On how the Social Progress Index can benefit society

Investment Liquidity and pricing consequences of ultra long-term bonds

Technology ‘Fourth industrial revolution’ redraws insurance landscape

Environment Discussing advances in sustainable investment

How telematics could transform motor insurance

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IT TAKES VISION Advanced analytic techniques can turn large amounts of unstructured data into meaningful insights. In the case of Brexit, our experts identified trends on social media that indicated an emerging set of cultural attitudes—a shift in the zeitgeist that would ultimately drive the agenda through the vote and subsequent election. To read our study, visit

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Contents June 2018

14 18


At The Back

14 Interview: Michael Green The CEO of the Social Progress Imperative talks to Gemma Gregson

32 IFoA consultation: Framing a response Council’s reply to the Qualification Framework consultation

17 Catastrophe: Unforeseen losses Thomas Johansmeyer on the growth in unexpected events

Up Front 4 Editorial Francisco Sebastian on measuring social development and linking investment with the environment 5 President’s comment Marjorie Ngwenya considers progress on her three goals for the profession 5 CEO’s comment Derek Cribb advises members to familiarise themselves with the updated Actuaries’ Code

18 Investment: Too long? Peru Govindasamy considers ultra long-term bonds 20 Driverless cars: Telematics Andy Goldby looks at the potential benefits of advances in technology

24 Technology: y: Fourth revolution Ravin Jesuthasan asan and Day Bishop on insurance value lue chain changes

11 Letters and responses High time to consider dignity in dying; and the role of real-world risk in the EIOPA approach

28 Environment: nt: Panel debate Experts discuss uss advances in sustainablee investment


26 Regulation: IMAP Ashish Kwatra ra and Jennifer Khaleghy explain plain successful implementation tion

Get the app Did you know you can now read The Actuary magazine on any tablet or Android phone? Click through to read more online, download resources, or share on social media via our links in the app. It’s an exclusive free benefit for our members. Download on the App Store at: Visit:

03 CONTENTS__The Actuary 3

36 People/society news The latest news, updates and events 38 Puzzles 39 People moves

22 Risk: How’s your appetite? Chris Makomereh mereh draws up some principles forr a practical approach

7 IFoA news The latest news, updates and events from the IFoA

34 Student Joseph Mills explains why student actuaries need to consider the role of stress in mental health

40 On the record Deborah Parker describes her love of adventure, which has taken her as far as skiing alongside a world champion


Additional content including daily news can be found at Weekly newsletter: for all the latest actuarial news, features and opinion direct to your inbox, sign up at JUNE 2018 | THE ACTUARY | 3

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PUBLISHER Redactive Publishing Ltd Level 5, 78 Chamber Street, London, E1 8BL +44 (0)20 7880 6200 PUBLISHING DIRECTOR Joanna Marsh MANAGING EDITOR Sharon Maguire +44 (0)20 7880 6246 SUB-EDITORS Kathryn Manning Caroline Taylor NEWS REPORTER Christopher Seekings +44 (0)20 7324 2743 christopher.seekings D I S P L AY S A L E S EXECUTIVE Nila Marma 020 7324 2753 SENIOR RECRUITMENT SALES EXECUTIVE Shamil Bhoyroo 020 7880 6234 SENIOR DESIGNER Sarah Auld PICTURE EDITOR Akin Falope

EDITOR Francisco Sebastian F E AT U R E S E D I T O R S Jeremy Lee, investment, ERM Stephen Hyams, pensions Garry Smith, banking, regulation Joanne Joseph, general insurance Sharad Bajla, general insurance Chris Marsh, life insurance Paul Malloy, reinsurance, life insurance Contact: PEOPLE/SOCIETY NEWS EDITOR Yvonne Wan STUDENT EDITORS Joseph Mills Jason Whalley IFOA EDITOR Kate Pearce +44 (0)207 632 2118 EDITORIAL ADVISORY PANEL Peter Tompkins (chairman), Naomi Burger, Matthew Edwards, Martin Lunnon, Nick Silver, Jessica Elkin, Sonal Shah INTERNET The Actuary: Institute and Faculty of Actuaries:

SENIOR PRODUCTION EXECUTIVE Rachel Young +44 (0)20 7880 6209

Circulation 27,431 (July 2015 to June 2016)

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SUBSCRIPTIONS Subscriptions from outside the actuarial profession: UK: £100 per annum. Europe: £130 per annum, rest of the world: £160 per annum. Contact: The Institute and Faculty of Actuaries, 7th floor, Holborn Gate, 326-330 High Holborn, London WC1V 7PP. T +44 (0)20 7632 2100 E Students on actuarial courses may join and receive The Actuary as part of their membership. Apply to: Membership Department, The Institute and Faculty of Actuaries, Level 2 Exchange Crescent, 7 Conference Square, Edinburgh EH3 8RA. T +44 (0)131 240 1325 E Changes of address: please notify the membership department. Delivery queries: contact Rachel Young E Published by the Institute and Faculty of Actuaries (IFoA) The editor and the IFoA are not responsible for the opinions put forward in The Actuary. No part of this publication may be reproduced, stored or transmitted in any form, or by any means, without prior written permission of the copyright owners. While every effort is made to ensure the accuracy of the content, the publisher and its contributors accept no responsibility for any material contained herein. © Institute and Faculty of Actuaries, June 2018 All rights reserved ISSN 0960-457X


04 EDITORIAL__The Actuary 4


Green issues Every year, the spring season has two conflicting effects on me. The longer and brighter days raise my spirits and encourage me to bolster my vitamin D levels, by enjoying the outdoors. Unfortunately, my strong desire to do so is promptly curtailed by the very adverse effects of hay fever. Left between a rock and a hard place, my choice is to remain apart from nature. Earlier this month, as I was trying to forget my envy at seeing others enjoy the good weather, I decided to cheer up with some jokes about actuaries. But guess what? I found… nothing! Or at least not anything that most human beings would consider funny. I would love to be able to announce that the current issue of The Actuary is full of jokes about actuaries, but I can’t. However, I can assure you this issue is full of really interesting, forward-looking topics that, hopefully, you will be able to enjoy – be it in the sun or in the shade. In our monthly interview (p14), Michael Green discusses solutions to an extremely challenging global problem: how can social development be measured? Although measuring is not an end in itself, it is a great contribution that actuaries can make to evaluate the effectiveness of different policies. And on a tangentially related problem, several professionals discuss the link between investments and the environment (p28), a hot topic these days that continues to dominate among insurers and pension funds. In this issue, we also focus on non-life insurance, which technology is swiftly changing. Andy Goldby discusses the positive influence that telematics can have on road safety, and to what extent this affects those in the business of providing protection (p20). And continuing with the so-called fourth industrial revolution, Ravin Jesuthasan and Day Bishop provide some perspective on the implications of technology on the insurance value chain (p24). The highly stimulating content in this issue should make up for the lack of jokes about actuaries. Enjoy the read!


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A year of progress

Shaping the code


he IFoA’s members are increasingly diversifying into new geographies and work areas, and this brings with it fresh challenges in terms of how we carry out our regulatory role. With around half the IFoA’s membership, and 80% of new students, now based outside the UK, these challenges are only going to increase. Following a period of consultation, we recently published changes to our Actuaries’ Code, the ethical code of conduct that applies to all members. The changes are reflective of this continuing growth and diversification of our membership, and aim to ensure that we have in place an Actuaries’ Code that is fit for the future, for all our members. The Code is fundamental in helping to achieve and maintain the professionalism and reputation of our members, and underpins our ongoing commitment as a regulator to quality actuarial work. The updated Code takes a more simplified, principles-based approach, ensuring that it is relevant to all our members, whoever they are and wherever they work. We have clarified what we expect from our members, for example differentiating between the ‘must’ and ‘should’ elements of the Code. Additionally, we have made it clear that the Code applies not just to our members’ conduct in their professional work, but to any conduct which could reasonably be considered to reflect upon the profession. The new Code will take effect in May 2019. Ahead of this, I would encourage all members to familiarise themselves with the content of the Code. And I would like to thank the Actuaries’ Code Review Working Party, and everyone who took the time to respond to the consultation, DEREK CRIBB for helping to shape a Code that’s fit is the chief for our future. executive of the Please see the article on p10 for Institute and more details about the changes to the Faculty of Actuaries’ Code. Actuaries

hroughout my yearr as president, I have focused my energy around three goals for the profession: proactively seeking to be future fit, creating suitable professionals, and finding ways to serve our diverse membership. I would like the value of the actuarial skill set to be seen as relevant beyond financial services, and for the value of the actuarial skill set to be widely communicated and understood. With these aims in mind, we held a successful Global Data Science Summit in September 2017, bringing together actuarial associations, academics and industry experts from around the world to discuss the role of actuarial professionals within the realm of data science. Our Sustainable Development Goals campaign – the IFoA’s first global policy initiative– remains ongoing and explores how actuaries in diverse areas of practice can contribute. I was delighted so many people took part in our consultation on the Qualification Framework and Chartered Actuary proposal, helping us to take into account a diverse range of views. The consultation shared the IFoA’s aim of attracting a new generation of generalist actuaries, who will take less specialist roles in industry. Throughout the year, I have renewed my appreciation for the global nature of our profession and the spread of the IFoA’s membership. A personal highlight has been visiting the regional societies in the UK and beyond. The IFoA’s inaugural road show in Africa was a particular pleasure to host. I enjoyed meeting members who are our profession’s strongest advocates and constructive critics, and have enabled me to better MARJORIE understand the challenges they face and NGWENYA the opportunities they are embracing. is the president of It has been an honour to be your the Institute and president, and I wish Jules Constantinou Faculty of the best of luck for his term. Actuaries

05 PRESIDENT and derrick__The Actuary 5



25/05/2018 16:36


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© 2018 Moody’s Analytics, Inc. and/or its licensors and affiliates. All rights reserved.


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A ramble through actuarial history Voted the greatest British actuary ever by readers of The Actuary in 2003, Frank Redington is most widely known for his development of immunisation theory, a concept he introduced in a paper on life office valuations in 1952. It would receive recognition as a contribution to the emerging field of financial economics, which arguably the actuarial profession would not fully engage with for some decades. Born on 10 May 1906 in Leeds, Redington’s mathematical ability gained him an open scholarship to Magdalene College, Cambridge. His love for mathematics led him to begin studying for actuarial examinations during his last year at university. He joined the Prudential in 1928, gained Fellowship in 1934 and became a member of the Prudential management team as an assistant actuary at the age of 39. He was appointed chief actuary at the Prudential in 1951, and continued in that capacity until his retirement in 1968.

The profession was particularly close to Redington’s heart and was enriched by his long and distinguished service. He began his operational work at the Institute of Actuaries in 1937 as a member of the Board of Examiners, acting as chairman from 1945-48. He was also a member of the Lever Committee, which reviewed the Institute’s education and examination arrangements in 1946. He served on Council for many years, and became a vice-president and then president between 1958 and 1960. Redington’s ‘actuarial work of preeminent importance’ was recognised with an Institute of Actuaries Gold Medal in 1968. To celebrate the 60th anniversary of his being appointed president of the Institute of Actuaries, Redington’s family have loaned us his medal to display. Next time you are at Staple Inn, London, be sure to take a moment to view it. Read more about Redington’s actuarial impact in our blog:


Event addresses money shortages in retirement after pensions access On 25 April, we hosted a roundtable ble event with industry experts and government to launch our policy briefing Can We Help Consumerss Avoid Running Out Of Money In Retirement? (see Dl) Attendees discussed the proposals set out in the report, which addresses the risk of consumers running out of moneyy in retirement as they increasinglyy access their defined contribution pension pots without regulated advice. The briefing proposes combining drawdown and annuitisation to balance flexible access with guaranteed incomes.

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Oral evidence session on the funding of long-term care Following our consultation submission earlier this year, the IFoA was invited to provide oral evidence to the Housing, Communities and Local Government Committee and the Health Committee as part of their joint inquiry on the funding of long-term care. Jules Constantinou appeared before the committees on 24 April to discuss ways of balancing state and personal funding to meet the challenges of an increasingly ageing population. You can view the meeting at or read our consultation response at


25/05/2018 16:37

Upfront News


CPD reporting year almost over We would like to remind all members in continuing professional development (CPD) categories 2-6 that any CPD activity for the 2017/2018 CPD reporting year must be completed by 30 June 2018. If you are still looking to gain relevant CPD hours, you may find our online learning resource useful: Here you will find a variety of learning material specific to your area of work, all in one place on the virtual learning environment (VLE). The VLE is fully responsive, enabling it to be used on smartphones, tablets or desktops. When using the VLE, you can view an online resource then click the ‘claim CPD’ button to update your CPD record. When you do this, we will verify the activity for you, making it easier for you if you are chosen for audit. Events are also a great way to help you meet your CPD requirements. See our blog for the range of events we have to offer: If you are unsure of your CPD requirements for the 2017/2018 reporting year, please do not hesitate to contact or visit the CPD pages on our website at

Get involved and help shape the future of your profession


First QAS accreditations awarded outside the UK The benefits provided by QAS accreditation have allowed the scheme to go from strength to strength since its launch in 2015. In May, we accredited the first firms outside the UK in Hong Kong, Indonesia, Malaysia and Singapore. Congratulations to: Actuarial Partners Consulting, Malaysia; the Group Actuarial Function of AIA Group Limited, Hong Kong; Aon Singapore Centre for Innovation, Strategy & Management; and Willis Towers Watson Insurance Consulting and Technology in Singapore, Hong Kong, Malaysia and Indonesia. It is an incredibly exciting time for the scheme, and accrediting these organisations recognises the global importance of the working environment in enabling actuaries to fulfil their professional responsibilities. The awards for these newly accredited organisations were presented at the Asia Conference in Bangkok. More information can be found at FIND OUT MORE

Would you be interested in accreditation? Develop personal and professional skills as part of your lifelong learning Build and enjoy a strong and active network of peers Raise your profile and the profile of a particular area of your expertise Give something back and encourage actuaries of the future. Browse the latest volunteer vacancies:


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Applications are now open for organisations to apply from outside the UK. If your organisation would like more information about applying for the QAS, please visit our website at or get in touch with Sarah Keenan by email at or by telephone on 0131 255 0286.

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Upfront News


23–26 10 18

Mortality and Longevity Seminar 2018

GIRO Conference 2018

R O YA L C O L L E G E O F P H Y S I C I A N S , 11 ST ANDREWS PL ACE, LO N D O N , N W 1 4 L E The multi-disciplnary programme is designed for life, pensions and health and care actuaries who are eager to learn about the latest developments in mortality and longevity. The sessions have been designed to be very accessible to a broad range of experience.

I C C , B R O A D S T R E E T, B I R M I N G H A M , B 1 2 E A GIRO is attended annually by over 800 delegates and speakers, who are keen to discuss key topics such as pricing, reserving, modelling and the future of the insurance industry. GIRO 2017 was a huge success, so we have opened bookings early for what we trust will be another topical and successful conference with significant networking opportunities.

20 06 18

21–23 11 18

Reserving Seminar

LIFE Conference 2018


ACC, KINGS DOCK, LIVERPOOL, L3 4FP The reserving seminar is an important event for all those involved in general insurance reserving, from those conducting the analysis to those overseeing it and providing insights. Every year, for one day, a diverse line-up of speakers present a thought-provoking but accessible technical and professional programme to qualified actuaries and students alike.

27–28 06 18 Risk and Investment Conference 2018 T H E G R A N D H O T E L , 9 7 - 9 9 K I N G S R O A D, BRIGHTON, BN1 2FW Offering an interesting and thought-provoking programme of plenaries and workshops, this year’s conference offers an opportunity to discuss current trends and topics with colleagues in the risk and investment sector. As after-dinner speaker, we have one of the UK’s most respected economic commentators, Dame Frances Cairncross. The Life Conference is the premier event for professionals interested in life insurance. Offering a wide range of workshops and plenary sessions, it’s the perfect opportunity to discover what’s hot and current in life insurance. Whether UK-based or international, the conference is open to anyone with an interest in the life sector. It offers an ideal forum to meet and exchange ideas with a broad range of professionals. If you want to get up-to-date on the latest thinking and innovation, this is the event for you!

1/15/28 11 18 Current Issues in Pensions Seminars L E E D S 1 N O V E M B E R – G L A S G O W 1 5 N O V E M B E R – B R I S T O L 2 8 N O V E M B E R – These seminars cover current issues and highlights in the UK pensions sector and are designed for qualified actuaries and nearly qualified actuaries who work or have an interest in UK pensions.


Features editors The Actuary magazine is currently recruiting for new volunteer features editors. If you are interested in getting involved with this dynamic and thought-provoking magazine, please take a look at the volunteer vacancies page on the website for information about the role and how to apply ( The closing date for expressions of interest is 3 July.

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25/05/2018 16:37


Nominate for Peter Clark and Geoffrey Heywood prizes

IN BRIEF... Join us at the IFoA AGM

The IFoA is seeking nominations for papers to be considered by the Research and Thought Leadership Board (RTLB) for the Geoffrey Heywood Prize and the Peter Clark Prize. Both prizes cover all practice areas, with the Geoffrey Heywood Prize focusing on excellence in communication and the Peter Clark Prize awarded for overall excellence. Eligible papers are those: Presented to a mainly actuarial audience (for example, at an IFoA conference or a sessional research meeting) between 1 June 2017 and 31 May 2018 First published in any actuarial or related journal, any conference or congress proceedings or transactions, either in print or electronically, with a publication date in 2017. Eligible candidates are students, associates, fellows and honorary fellows of the IFoA, and co-authors who are not members of the IFoA, provided that at least half of the authors are IFoA members. If you have read any outstanding papers that you think are eligible and should be recognised, please submit your nominations using the online form on the IFoA website ( Nominations close on 1 July.

Our annual general meeting (AGM) and presidential address offer excellent opportunities to network with your peers and share your views with IFoA members and staff who set the strategic direction of your professional body. The results of our Council election will be announced at the IFoA’s AGM at Staple Inn, London, on 28 June. The IFoA Council exercises governance and control over the IFoA and its affairs. Representative and accountable to the IFoA’s members, the Council demonstrates leadership and drives the mission, vision and values of the IFoA by setting its strategic direction. The AGM will be followed by the presidential address, where newly inaugurated president Jules Constantinou will outline his vision for the IFoA. Visit our AGM webpage at to find out more and book your place.


Actuarial Interaction and Challenge webinars

Changes to the Actuaries’ Code Following a substantive review and public consultation, the IFoA has published changes to the Actuaries’ Code. The revised Code, which will come into force in May 2019, will be clearer, more concise and relevant to all IFoA members. The changes to the Code reflect the ongoing growth and diversification of our membership and aim to ensure that the Code remains fit for the future. The revised Code: Is simplified and more principles-based Uses updated language to ensure it remains relevant to all members, wherever they are based and regardless of their employer Aims to clarify members’ 10 | THE ACTUARY | JUNE 2018

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obligations using the words ‘must’ and ‘should’; and Introduces a new standalone ‘Speaking up’ principle. The existing Code will continue to apply p until the revised Code comes iinto force. The IFoA is developing non-mandatory guidance n to accompany the revised Code. This will contain information about each of the principles of the Code, as well as its application, scope and status and purpose. The guidance will be published in spring 2019. You can find more information about the revised Code on the IFoA website at If you have any questions about the revised Code, you can contact the IFoA’s regulation team at

The end of the continuing professional development (CPD) year is fast approaching. If you still need to do your professional skills CPD, join our Actuarial Interaction and Challenge professional skills webinars (each with different content) on Thursday 7 June from 08.30-09.30 at and 16.30-17.30 BST at The webinars will have a special focus on the revised Actuaries’ Code, due to be published on 18 May 2018, and will offer an opportunity to familiarise yourself with the changes before the new Code comes into force on 18 May 2019. A selection of case studies (video and illustrated) will be used to bring the Code to life, and you can put questions to our panel via a live feed and join in the debate wherever you are. Videos of the webinars will be made available on the IFoA’s website. Alternatively, access the IFoA’s online professional skills content at

25/05/2018 16:37


Have your say


Upfront Letters

To the student editor We always like to hear from our learners, and I am sure your readers enjoyed your editorial in the last issue of The Actuary. I’d like to use these letter pages to respond directly to some of the issues you raised and to show how the IFoA is already ‘on track’ with some of these. You highlight some of the developments around ‘Work Based Skills’ (WBS) which is being phased out and replaced by ‘Personal & Professional Development’ (PPD). PPD makes it easier for our learners to gather and present their evidence and brings our pre-qualification process more in line with the CPD scheme for qualified members. The arrangements for this transition are in place and initial feedback from both employers and learners has been positive. Our Student Consultative Forum (SCF) is important to us. We have also recently relaunched Advent of change the Global Student Consultative Jason Whalley believes change is inevitable, uncompromising, and generally for the good Forum. Your invitation for more feedback is welcomed. I recognise the important job members on the SCF do in raising a considered set of strategic issues to the Forum for discussion; ensuring the voice of our learners is heard. Changes to our curriculum and assessments have been accompanied by a more transparent marking process, including the release of individual marks, pass marks and marking schemes. You mentioned in your editorial the release of scripts. This is on our agenda, but has been interrupted by a recent European court ruling involving a professional body in another EU member state. The UK Information Commissioner is yet to offer definitive advice following this case and the IFoA will keep you informed of the outcome once the final direction becomes clear. Managing 141 examination centres in 74 countries always has its challenges and we aim to ensure that we continuously meet our exacting standards. We consider all new formats of assessment and you will see some of these developments in our new curriculum. Assessment materials delivered online for completion in the workplace or at home do have their challenges. There is evidence of increasing plagiarism, collusion, and cheating in all educational systems, and professional bodies take this very seriously. While there are some technologies to




he IFoA is making changes to the Associate and Fellowship qualification process. With effect from 2019, the first half of the exam structure is set to be changed, as the Core Technical examinations are grouped together and statistical packages implemented in order to bring the syllabus closer to real-world actuarial work. This will primarily affect the actuarial students who have joined the IFoA within the past few years, as most of the specialist assessments are staying true to their topics and format. Work-based skills are gradually being phased out of the requirement for qualification as a Fellow; replaced with personal and professional development. Clearly, the actuarial governing body is striving to update the syllabus to be more in line with the skill set of the modern actuary. Although, ultimately, the task of amending the path to qualification will remain a never-ending job. The IFoA provides the opportunity for students to speak out about change at the student consultative forum, where student representatives can raise issues as requested and push for resolution. But what changes would current students like to see in 2018 and afterwards? More opportunities to sit examinations each year? A more objective – and less subjective – mark scheme for the later assessments? It was not so long ago that exact marks were hidden from students. Unbeknown to some, breakdowns of marks are actually available upon request. Perhaps the IFoA could go one further, if demand was high enough, and provide marked scripts for

IFOA NEWS__The Actuary 11

mitigate these, they are not always easy to implement online in a global environment. We review these technologies as we upgrade our online platforms and you can expect to see some systems introduced alongside our new curriculum. Finally I’d like to respond to your remarks about the IFoA marking process; an area where there have been many anecdotes shared in discussion forums. The quality of marking is continuously reviewed by our Board of Examiners and Education Committee, with oversight from the Financial Reporting Council (FRC). Our processes are in the public domain and available on our website. I encourage all examination takers to review them. This will help to reassure At the back School of thought you that the processes are robust and fit for purpose. We publish our marking schemes so that the “The greatest teacher, objective criteria examiners use in failure is” coming to their judgments are clear. While I agree with you that it is important to have this clarity, there will always be an element of academic judgment required by examiners in our marking, as there is in all examination systems. Inevitably, despite the training we undertake with examiners, there will be a small number of occasions among our 30,000 scripts per year where there is some discrepancy in view between our two independent, blind markers. As our procedures outline, where this occurs a final review is undertaken by the Principal Examiner (PE). The marking process is also monitored by our quality team in Oxford, and ongoing feedback is provided to the PE and all our assistant examiners. You may also be interested to know that we will be trialling a new online marking system during 2018, which we hope to roll out in time for the first examinations under the new curriculum 2019 syllabus. This is intended to improve further the robustness of our marking. We will share more about this after the trial is completed. Thank you again for the observations contained in your recent editorial, and I hope this response helps to show that the IFoA is already addressing some of these key issues.

students – to allow students to identify where they went wrong. After all, “the greatest teacher, failure is,” according to one wise old swampdwelling hermit. CA2 spreadsheets and papers can be submitted online, negating the requirement for an assessment centre. Although an issue with publishing pass lists back in December highlighted the governing body’s next area to target for improvement, other technological changes may be just around the corner, if enough people were to call for it. The option to perform examinations using computers – rather than pen and paper – represents a viable alternative for those who can type faster than write. Examination centres experience frequent complaints, and such problems could potentially be solved by sitting assessments online – albeit this could introduce complications for those without a stable internet connection. In recent times there have been calls for clarity on the operations of the IFoA, especially concerning the communications policy. The back-and-forth over CT9 could undoubtedly have been handled more appropriately – and is certainly not the only example of unclear communication that left students in the dark over prevalent qualification issues. The student consultative forum was recently notified of a request for greater transparency surrounding the marking procedure, of which some students are still not fully aware, and also of the reasons that would cause an additional script reviewer to be involved.

The papers are marked by two separate examiners and the average mark taken to be the final grade, unless a third reviewer is required – perhaps owing to a high disparity between the two grades. However, there have been situations where the same individual scripts were judged to have a difference of up to 24 marks between two different assessors, which calls into question the attentiveness of those involved in marking for the IFoA. Furthermore, it should cause concern that a pass or fail could, ultimately, depend on who is allocated to review each script. The Student Consultative Forum takes place biannually, and the representatives act to provide a voice to each and every student member of the IFoA. Representatives liaise with the actuarial governing body about certain topics and make sure issues are properly discussed, receiving necessary attention. Joseph Mills and I are happy to raise any issues at the student consultative forum; please feel free to share your thoughts by contacting us at

JASON WHALLEY is joint student editor

MAY 2018 | THE ACTUARY | 35

PROFESSOR CLIFFORD FRIEND is director of engagement and learning, Institute and Faculty of Actuaries

JUNE 2018 | THE ACTUARY | 11

25/05/2018 16:45

Upfront Letters More comments are posted . online about news stories published . on


Time to tackle an age-old issue In the April issue, the president draws attention to the “many implications for individuals in the ways in which we conduct our lives... of living beyond the age of 100... as actuaries we are well placed to deal with the many permutations that are implied”. Marjorie Ngwenya hopes that “medical advances will continue to improve the quality of our lives”. Medical research is largely funded by the pharmaceutical giants, whose financial interests lie in extending lifespan rather than in the quality of the added years. Having been a member of the institute since 1942, I am among the longest surviving members, and the longest serving past-president. Years of service as a member of the Continuous Mortality Investigation committee, 12 years’ membership of Dignitas, and even longer membership of the Voluntary Euthanasia Society – now euphemistically renamed Dignity in Dying – entitle me, I hope, to add my two-pennies’ worth to the debate Marjorie has initiated. Opinions about ‘assisted suicide’ are sharply divided. Surveys carried out by the British Social Attitudes series have consistently shown that, among the population at large, there is a ‘silent majority’ – around 80% – in favour of permitting assisted voluntary suicide in medically certified cases of incurable terminal conditions. However, an attempt to legislate in favour of strictly controlled assisted suicide, initiated in the House of Lords, was defeated in the House of Commons in 2015 by a well-organised and well-funded opposition. Fifteen associations representing members of the medical profession have considered the issue. Five, including the British Medical Association, have expressed opposition to assisted dying while four, including the Royal College of Nursing, have declared themselves to be neutral. Six, including the General Medical Council, have not taken up a position. The opinions of individual members of our profession may or may not be equally divided. But in considering the implications of living beyond 100 as Marjorie invites us to do, ‘assisted suicide’ is surely an issue which our profession is not only qualified, but has a duty, to consider in the public interest. As Derek Cribb writes in the same issue of this magazine, “If we are quiet we risk becoming lost in the background noise, failing both our members and the public interest.”

“If we are quiet we risk becoming lost in the background noise”

ANTONY RATCLIFF 13 April 2018 The editor welcomes readers’ letters of approximately 300 words in length but reserves the right to edit them for publication. Please email 12 | THE ACTUARY | JUNE 2018

12 LETTERS__The Actuary 12

Real-world risk In the April issue, the IFoA Risk Margin working party responded to my letter of December 2017. In that letter, I had pointed out that, in my opinion, the risk discount approach of Hans Waszink was more appropriate than the EIOPA risk-free approach for calculating the cost of capital. I had given more detailed arguments in my opinion piece in The Actuary in October 2016. I think we can all agree that if the owners of the reference portfolio could ‘pocket’ the risk margin, then there is no possible way in which this could be greater than the capital or SCR that has to be injected, no matter how many times that capital could subsequently be lost as is argued by the working party. On this premise, the risk discount approach of Waszink seems eminently sensible. But the risk margin cannot be pocketed. It must be left in the company. Thus in the real world, the risk margin would itself be regarded as a form of capital – although the Solvency II text would seem to be clear that the SCR alone is the capital requirement. The following text appears in the delegated acts: “After the transfer, the reference undertaking raises eligible own funds equal to the SCR necessary to support the (re)insurance obligations over the lifetime thereof.” Thus on this premise, the risk margin can be seen to itself not be economically at risk over the lifetime of the obligations. In theory, then, the new owners could borrow the risk margin at risk-free rate, and so the capital that they actually have to provide is the SCR less the risk margin. Put another way, the risk margin in this sense guarantees the providers of the capital the CoC of 6% a year on that amount. I know of no financial model whereby the providers of capital, while prepared to lose that capital, require an effective guarantee that they should enjoy their required cost of capital. It seems particularly farcical when this ‘guarantee’ could itself exceed the original capital, or even the original capital rolled up at current low risk free rates. The Waszink approach is appropriate where the risk margin does not have to be reinvested in the company. The use of the EIOPA approach might be seen as a way of compensating for the real-world situation where the risk margin would itself be regarded as a form of capital, but it is a crude and ad hoc way of achieving this. BRIAN WOODS FSAI 27 April 2018

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INSIDE Interview: Michael Green


The CEO of the Social Progress Imperative talks about aligning with the UN’s Sustainable Development Goals

Looking forward to a global future

13 SECTION BREAK__The Actuary 13

With catastrophes on the rise, reinsurers should prepare for a broader range of significant threats to capital, says Thomas Johansmeyer

Is long-term too long? Peru Govindasamy advises caution on the liquidity and pricing consequences of ultra long-term bonds

Driving change Telematics technology could transform the insurance and mobility industries, says Andy Goldby

How’s your appetite? Chris Makomereh believes firms providing financial solutions need to have clear, relevant and practical risk appetites

New industrial revolution As technology changes the way we work Ravin Jesuthasan and Day Bishop consider the effects on the insurance value chain

An independent view Ashish Kwatra and Jennifer Khaleghy explain the implementation of successful IMAP programmes

Question of sustainability IMAGE: ISTOCK

The actuarial profession is one with multiple angles; it leverages a powerful quantitative skillset and techniques that apply to a variety of problems involving risk situations. Then it aims to make sense of those problems, interpreting the results of the analysis and facilitating informed decision-making. The variety of angles is changing fast, which makes actuarial problems particularly exciting. Beyond the quantitative and qualitative aspects, an emerging angle arises from globalisation; as the world comes closer together, many actuarial problems cross borders. Therefore, solutions tested in one part of the world can be relevant to others. In the July issue of The Actuary we will be paying special attention to the international and career development sides of the actuarial profession. From the international standpoint, the July issue will discuss some of the challenges that actuaries face in Europe, Latin America, Asia and Africa. The varying stages of development of the industries in which actuaries normally work, as well as the degree of penetration of the actuarial profession itself in different countries, creates new opportunities for actuaries globally. And last, but not least, as the decision-making part of the profession becomes more prominent, many actuaries are increasingly interested in building up their expertise beyond the purely technical aspects. This involves focusing on soft skills, people management, communication styles and strategy. In July, we will kick off a series of discussions with actuaries who have achieved the most senior levels in their respective organisations. They have kindly agreed to share their thoughts and experiences about which qualities make actuaries successful. This may be a valuable learning experience for professionals at different levels who are looking to make a difference in their careers. Altogether, the July issue will provide a different view of the actuarial profession, aiming to be eye-opening on international topics and inspirational on the career development front.

Losses no-one saw coming

A panel of experts discuss recent developments in sustainable investment

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Features Interview


ichael Green is the chief executive officer of the Social Progress Imperative, a not-for-profit organisation that has developed an index of social and environmental indicators that complement GDP as a measure of a country’s success. “The big idea with the Social Progress Index is that we measure social progress independently of economic progress.” The seeds of thought for the index were planted when Green co-authored a book with The Economist’s Matthew Bishop about the 2008 financial crisis. “One of the things we talked about was the way that the financial crisis was a crisis of measurement. Not just measurement in terms of the balance sheet of Lehman Brothers, but also of the whole way of valuing success in our societies. It was really from there that we started to think about this ‘beyond GDP’ measurement space from which the Social Progress Index emerged.” The idea gained traction at a World Economic Forum (WEF) meeting. Inspired by the WEF’s economic Global Competitiveness Index, Bishop suggested an index that would encourage countries to compete on who delivers the best quality of life. Several attendees at the meeting liked the idea, which led to the formation of the Social Progress Imperative. Green is keen to point out that the Social Progress Index is robust. “The world has too many indices and a lot of them are rubbish,” he says. “We had a very clear sense of doing proper, robust work. We were very honoured that one of the members of our advisory board, Scott Stern, is a professor at the Massachusetts Institute of Technology. He makes sure that the work we do is the best-in-class and has proper econometric foundations. We also approached Michael Porter,

economist and professor at Harvard Business School in the US, who accepted our offer to chair the advisory board.” Although there are other indices that include social performance indicators, Green explains that no one else has produced a measure of social performance independent of economic indicators. “We measure social progress independently of economic progress, not because we think the economy doesn’t matter, but because then we can look at the relationship between economic and social progress, and try and unpick this question of what ‘inclusive growth’ is. In so many places we are seeing the economy growing but people’s lives are not getting better.” Although there are differing views of what ‘inclusive growth’ means in practice, the concept is centred around the idea that economic growth benefits all areas of society. Measuring social progress is key and the first challenge for the Social Progress Imperative was to define it. Drawing on existing literature and understanding of what makes a good society, a framework consisting of three basic building blocks was developed. Green explains: “The first is does everyone have the basic needs for survival: food; water; shelter; safety. Secondly, does everyone have the foundations to build a good life: education; access to information; good health; a good quality environment. Thirdly, does everyone have the opportunity to pursue their hopes and dreams, so: rights; freedom of choice; freedom from discrimination; and access to higher knowledge.”

Global goals The Social Progress Index provides an opportunity to really make a difference in the world. Explaining that initial efforts were focused in Latin America, Green says: “The first country in the world to adopt the Social Progress Index formally into its planning process was Paraguay. It has a national plan which has a GDP target and a social progress target. One of the goals is to eliminate child hunger by the end of the year and with that target in sight, there are budget allocations, so this has very much cascaded through the national planning process.” Elsewhere, India has adopted the index through its policy thinktank, The National Institution for Transforming India (NITI Aayog). The work in India also demonstrates that a number of sub-indices have been developed to allow countries to analyse their performance profile in more detail. “India is interested in how to


Michael Green talks to Gemma Gregson about the Social Progress Index, explaining how it can benefit society and monitor progress against the UN’s Sustainable Development Goals

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Features Interview

“We measure social progress independently of economic progress, not because we think the economy doesn’t matter, but because we can look at the relationship between economic and social progress”

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Features Interview compare the performance of each state on these measures, as well as how to track performance against the Sustainable Development Goals (SDGs).” Green explains that, although the Social Progress Index doesn’t look like the SDGs, they are conceptually well-aligned. “The SDGs are a massive achievement, but they were a political compromise,” he says. “If you try to make an index out of the 17 SDGs, it wouldn’t be very robust. The Social Progress Index works as a decent measure of progress against the SDGs and, critically, it’s one that can measure the whole package. One of the big risks of the SDGs is we are going to end up focusing on just a small number of those we can measure.” The SDGs build on the success of the Millennium Development Goals (MDGs) that were established in 2000 to improve the lives of the world’s poorest people. Green is concerned that the strategies used to meet the MDGs won’t work with the SDGs. Describing some analysis conducted in 2015 by professional services firm, Deloitte, Green says: “The question we had was ‘how much social progress could we buy with GDP growth and would that get us to the SDGs?’ The results were incredibly disappointing in terms of what economic growth is going to get for us. I think the story there is that we have used up the quick wins and I think we have sent out a very clear warning that the world will come nowhere near achieving success with the SDGs through economic growth alone.”

Productivity revolution Green is clear about what is needed to achieve the goals: “The SDGs have got to be about a productivity revolution in how we use our resources to deliver wellbeing for citizens,” he says. Believing that innovation is needed he adds: “There are two sets of problems in the world. The first are problems that are already being solved, such as nutrition, water, sanitation and education. There is a tight correlation with GDP per capita and we just need to push enough resources down the pipe. The second type is the unsolved problems around environmental policies, health and wellness, and tolerance and inclusion where there is no correlation with GDP. We need innovation to see what the solution is.” The Social Progress Index can help by providing insight into how the SDGs can be achieved, which can then be used as the basis of an action plan. Around the world, groups of countries have different challenges and the index provides countries with a means of comparing their performance with their peers. Denmark outperforms other countries, but Green doesn’t think it is appropriate to use it as the standard by which all countries are compared. “When we look at which countries overperform on social progress relative to their GDP, it’s not Denmark or any of the other usual suspects, it’s Nepal, Malawi, Costa Rica and Ghana. That’s important to say, because it’s a group of developing countries doing a really good job, which sometimes gets forgotten, and it provides much better examples of peer learning for the poorest countries.” 16 | THE ACTUARY | JUNE 2018

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It is not just developing countries that the index can be used for. In England, a project is being launched in the summer in Barking and Dagenham, results for US states were published in April, and an index developed by the Social Progress Imperative is being used to support the European Union’s cohesion policy. The index is also being used to shape policies for businesses. For example, Coca-Cola has been using it to think about the communities that are important to their supply chains. “The Social Progress Index is helping Coca-Cola, not just in its own corporate social responsibility but also to have a dialogue with the other actors, both public and private, to come up with consistent plans. And that’s been one of the real strengths of the index – it has created a common language that can bring different stakeholders together around what are the greatest needs of our community.”

Hopes for the future Green believes that businesses have a key role to play in social progress through the capital markets. “If we think about how the world is going to move on a more positive path, it’s going to have to be the capital markets that drive a lot of this effort. It’s tough in politics because the short term is so powerful. Capital markets can think longer term. If we had the bond markets pushing the government to do things that make more sense, this would be a help to both government and long-term, economic success. I think that’s a critical lever in our success.” Looking ahead to the future, Green has lots of plans and thinks there is an opportunity for actuaries to get involved. He says: “This is a great opportunity to speak to the actuarial community and think about what we have to do with the data so that it can start influencing decisions. We see all our data as a global public good and we love people to go away and work with it because experts will always use it better than we can. We know there are issues that actuaries have solutions to, so we are open to offers and ideas.” The Social Progress Index aims to track social progress over time. By offering policymakers a way to think of lots of different issues in one framework, it can also help inform discussions around priorities. Investment in the MDGs has already made a positive difference to the world and through initiatives such as the Social Progress Index and the SDGs, further steps are being taken for the future. While there are still many issues to be addressed, it is important to remember that changes are being made for the better. Green sums this up by saying: “The areas of risk are around human rights and measures of inclusion and tolerance, which have flatlined or got worse over the last five years. That is a concern but there is a lot of potential for progress. The data highlights that the world is moving forward. People have a misconception about how bad things are and don’t see how much things are changing.”

25/05/2018 16:39

Features Catastrophe

The losses

nobody saw coming Thomas Johansmeyer considers how reinsurers should react to the growing number of unexpected events during the past few years

Trend extends Outside North America, the trend continues. PCS Turkey has reported on three events since launching the service in 2015 with the Istanbul Underwriting Center – all of them unexpected within the realm of the unexpected. Historically, the only events on record with

17 THOMAS V VERI__The Actuary 17

Five-year historical hail catastrophes 35






Number of catastrophes


n the reinsurance industry, we’re trained to expect the unexpected. Strategic planning, capital management, and regulatory compliance require that even the most remote risks be contemplated. However, no view of the range of all possibilities is perfect. Sometimes a particular risk falls through the cracks. Fortunately, even when such events are severe, they provide fantastic learning opportunities when small enough to be absorbed by a company’s balance sheet and operations. Over the past few years, the team at PCS has seen a growing number of these unexpected events across both propertycatastrophe and specialty lines of business. Even before the three hurricanes of 2017 made landfall, there were signs of change in the US catastrophe market. Many insurers and reinsurers saw hail events as likely to be smaller and more manageable. Yet the magnitude of those events in the US has crept higher over the past few years. In 2015, PCS recorded two events with hail that had combined industry-wide insured losses of at least US$1bn. The following year, we saw four events at that level, with 2017 ultimately reaching seven. Over that period, PCS reported on three events with hail that had insured losses of at least US$2bn. While the increase in large hail events may not have caused alarm in the global reinsurance market, it should at least indicate that reinsurance contracts can be impaired by events other than hurricanes and earthquakes. Perhaps the greatest example of an historically ‘small’ peril having a disproportionate impact is the Fort McMurray wildfire. The largest insured loss on record with PCS Canada, the fire caused C$3.98bn in insured loss in Alberta in 2016. It was taken as an outlier, so nobody seemed to think that a larger wildfire could occur soon after. Yet that’s exactly what happened. In the fourth quarter of 2017, the Tubbs wildfire in Northern California resulted in more than twice the insured loss caused by the Fort McMurray fire the year before.


25 25

20 20 15 10 5 0 2013

Source: PCS




PCS Turkey (going back to 1999) that exceeded the TRY30m catastrophe designation threshold were earthquakes and floods. In 2016, we designated our first new catastrophe event, a terror attack in southeastern Turkey with aggregate insured losses of around TRY500m. Low insurance penetration and insured values made reaching the threshold extremely unlikely. Last summer, the surprises in Turkey continued, with a pair of hailstorms striking Istanbul and causing TRY1.3bn in insured loss. Although the hail intensity would look familiar in Texas, it was unprecedented in Turkey. What does this all mean? Should insurers and reinsurers hedge everything from a landslide in Amsterdam to an alien pandemic? After all, the US Navy has reported an increase in the THOMAS sightings of unidentified flying objects. JOHANSMEYER is assistant Some restraint does make sense when vice-president and trying to anticipate that which, by definition, co-head, PCS, at can’t be anticipated. However, it seems that Verisk Insurance the scope of what’s possible is widening – and Solutions that our industry should be ready for a broader diversity of significant threats to capital. The key is to arrive at the right balance between the absurd and the imminent. In between, you’ll find that point where you can optimise capital allocation to drive profitable growth. JUNE 2018 | THE ACTUARY | 17

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Features Investment


long-term Peru Govindasamy looks at the liquidity and pricing consequences of developed market ultra long-term bonds

is too long


overnments have, historically, issued bonds to enable them to meet their outgo when this exceeds their current revenue from taxes and duties. While unexpected events are a key lever of government debt issuance in the short-run, long-run issuance is largely driven by political factors. In November 2016, Austria issued an ultra long-term government bond of 70 years, maturing in November 2086. Austria is not the first European country to issue these ultra long-term bonds (see Figure 1). Longest yielding bond in issue (years)

Rationale for ultra long-term bond issuance In the Eurozone, the European Central Bank (ECB) has adopted an accommodating stance, through zero and negative interest rate policies, to stimulate the European economy. As the ECB pushes interest rates to record low yields, issuers are extending the average maturity of their funding in order to lock in these low funding costs for as long as possible. A similar trend is noted in other developed markets.

The market for ultra long-term government debt Demand is primarily from pension funds (which are sometimes bound by their investment mandates to invest in government debt), insurance companies (which use these long-term instruments to match the liabilities on their policies) as well as other institutional and retail investors with sufficient risk appetite and a long enough investment horizon.










Figure 1: Longest yielding bonds in a selection of EU countries Pricing and analysing an ultra-long instrument introduces an interest-rate challenge, as yield curves that extend past 20 to 30 years typically lack sufficient credibility to be used for pricing. This article explores the concept of the last liquid point (LLP), which is the point on the yield curve beyond which there is insufficient liquidity to value cash flows accurately. 18 | THE ACTUARY | JUNE 2018

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A number of financial publications have highlighted the duration risk inherent to ultra long-term bonds. As issuers rush to issue this long-term debt, bond duration has increased to historic highs – the effective duration of the Bank of America’s (BoA) global government bond index hit a record high of 8.23 in 2016, from just 5 when the index started back in 1997. The modified duration (comparable with effective duration for option-free Treasury instruments) of the 70-year Austrian bond has been calculated at 43 by the Global Association of Risk Professionals (GARP, 2016). Practically, this


Duration 0

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Features Investment

resulted in a 3.5% loss for investors in this bond after global bond yields rose during the first week after issuance. However, to what extent can these duration and price figures be relied upon? As mentioned, yield curves spanning beyond 30 years are rarely published and even when published, are of questionable reliability. The European Insurance and Occupational Pensions Authority (EIOPA) has published the following guidance regarding LLPs for various currencies: CURRENCY






Swiss Franc



Pound Sterling



Australian Dollar



Canadian Dollar








Figure 2: LLPs for a selection of currencies Source: EIOPA

It follows that the term of the recently issued Austrian bond exceeds its LLP by 50 years.

When yield curves break down In order to value cashflows beyond the LLP, extrapolation approaches are used. These typically involve one of the following: Extrapolation with a focus on liability stability. This approach attempts to reduce the business impacts of volatility in order to produce a more stable yield curve. Extrapolation with a focus on market consistency. This approach is premised on market consistency and, as a result, is often recommended by regulatory authorities. In summary, this method aims to quantify the cost of transferring a liability within the context of the prevailing (immediate) market conditions. The implementation of both methods involves the following features and is illustrated in Figure 3: 1 Selection of a starting point (on the known yield curve) for the extrapolation 2 Finding an appropriate proxy for the long-term rate (referred to as the ultimate (or unconditional) forward rate (UFR)) 3 Determination of the path between points 1 and 2.

There has also been research into using moving UFRs at different durations, for example a Smith-Wilson model using a moving UFR has been proposed.

Implications for actuaries and investment

8% UFR

7% 6% Foward rate

It is evident that the valuation techniques rely on the selection of both the starting point and the UFR as they drive the parameterisation of the extrapolation model. Since there is little established methodology to guide investors through this selection process, the entire valuation technique is, effectively, largely based on presumptions. This implies that even the duration figure quoted by GARP is illusory. Firms may wish to select the above mentioned parameters with an objective of: Achieving consistency across a group of subsidiary entities and/or similar markets If there is insufficient data to inform a starting yield curve value and/or UFR, it may be useful to follow that used in other entities within a group, especially if those entities are operating in similar markets. This may aid communicability and understanding of, as well as confidence in, the overall method. However, this should not be done at the expense of creating undue basis risk in the assumptions applied across the group. Ensuring consistency with issued territorial guidance (e.g. from EIOPA) Prudential supervisors (both for insurers and banks) issue guidance on setting the UFR and starting yield for various territories (e.g. EIOPA has issued such guidance). Often, this guidance incorporates industry experience and expert perspectives, making it a reliable source. Prioritising expert forecasts over currency It is sometimes the case that current data represents an outlier with respect to historical experience and/or most likely future experience. In these cases, it may be useful to prioritise expert perspectives over what current market data may be implying. Regressive models could also be used, perhaps with exponential weightings, to incorporate a more unbiased representation of past experience. Achieving a certain velocity of convergence Depending on the term of the underlying instruments, it may be useful to consider setting the starting yield so that the extrapolation process converges to the UFR after a certain period (say 20 years).

5% Predicted forward rates 4% Last available forward rate

3% 2% 1% 0% 0


20 Term to maturity (years)


Figure 3: Generalised illustration of yield curve extrapolation methodology

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Investors should exercise caution before investing in these instruments to ensure that their portfolios remain in line with their risk tolerances and investment strategies. Further, institutional investors (particularly banks and insurers subject to asset admissibility restrictions) should investigate more sophisticated methods of valuing these instruments, in order to accurately quantify the impacts (including liquidity, credit and future potential regulatory risks) on their balance sheets.

PERU GOVINDASAMY is a senior actuarial analyst at Liberty in South Africa

JUNE 2018 | THE ACTUARY | 19

25/05/2018 16:40

Features Driverless cars


hen the first motor policy was written back in the early 1900s, no guidelines existed for an industry more accustomed to insuring cargo ships than cars. A lot has changed since, with UK motor insurance spanning 20 million UK households and paying out £27m in claims every day. As we head full throttle into the Fourth Industrial Revolution – the data revolution – the industry is undergoing an unprecedented digital transformation, which some will find intimidating. But harnessing and mining the vast lake of Internet of Things data delivered by telematics offers a wealth of potential new insights. While this is a demanding task, the data derived from telematics provides actuaries with powerful new capabilities to price their

policies and inform their understanding of risk. Traditional factors associated with age, postcode, profession and claims history are no longer the only indicators. Telematics introduces a new set of policy-holder scores based upon a true picture of their driving behaviour.

Telematics scoring predicts risk Telematics providers work with insurers to deliver device-agnostic solutions, enabling insurers to take journey data from any type of device, including smartphones, which are powerful mobility sensors. It is possible to capture a variety of data. Firstly, sensor data which looks at GPS location, speed and phone usage and secondly, contextual data which records which roads are being driven, third-party transient data and other external benchmarks. Raw data can be translated into hundreds of KPIs for every journey. For example, though distraction can be caused by many factors, perhaps the most significant is using a mobile phone. There is a clear relationship between having a high distraction score and a person’s propensity to claim – distracted drivers are twice as likely to have an accident – so scores can relate to the time spent on a call as well as

Driving change with telematics Advances in telematics are transforming the insurance industry. Andy Goldby looks at the benefits this technology can bring

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Features Driverless cars

RESPONSES TO YOUGOV Telematics offers very useful indicators to handling a phone while driving. Similarly, RESEARCH (MARCH 2018) help insurers identify dishonest drivers. As an in terms of contextual data, telematics can industry, we will never be able to completely understand the unique attributes of individual prevent fraud, but understanding potentially roads, analysing data in the context of external fraudulent behaviour before it impacts your factors, such as how other people are driving, bottom line helps improve the likelihood of road layouts and pedestrian crossings. preventing the damage it could cause. At The Floow we have been developing these The creation of indices has helped to detect types of telematics solutions. Through various Autonomous cars will how honestly drivers are using our telematics machine-learning techniques, data scientists have required insurance companies to totally apps, for example, the patterns of how they tag analyse and score against six key components of rethink risk completed journeys and a measure of the our algorithm, which include speed, distraction, contiguousness of the journeys tagged where the smoothness of driving, time of day, fatigue and policy-holder is driving (they may appear to have road risk. By blending a set of behavioural scores missing journeys or appear to be tagging as well as contextual scores, we’ve developed a low-scoring journeys as if they were a passenger). scoring platform that is proven to challenge the Additionally, we have indices relating to the traditional proxy-based model which assesses integrity of their declarations for mileage totals risk for an insurance policy. There will be greater car sharing, completed in the insurance year, or the ‘risk Data gathered via client deployments over replacing outright car ownership, and address’ where the vehicle is really kept and the past six years, suggests that telematics a move to usage-based insurance parked overnight. With these we are able to portfolios deliver a 25% improvement in burn identify discrepancies which help to identify cost. Its scores deliver a predictive power to dishonesty within the early days of the policy, this create up to 10 times the difference in the likely enables insurers to make informed decisions on claims frequency between drivers achieving a how to treat these customers before their low score of less than 30 and a good score of ‘cooling-off’ period is over. over 80. Using this telematics scoring system alongside traditional rating factors (customer Telematics will become the new factors, vehicle factors and policy factors) can To the future benchmark for defining risk and pricing of policies add significant value to the combined model’s Telematics will also help pave the way for predictive power, adding five to 10 times the autonomous vehicles. When a machine is additional impact to adding credit scores. programmed to make decisions in place of a When client actuaries and underwriters work human driver, who is to blame when something with providers to further run the scores against goes wrong? This is of critical importance to the their own claims data, they report a significant UK motor insurance industry where classically boost of up to three times the profitability per it’s the driver, not the vehicle, who is insured. telematics customer, versus traditional policy When a machine is in the driver’s seat, it will Drivers will have an overall score for their driving ability, affecting types, and a set of scores that represent be essential to understand the cause when an their premiums powerful and unique intellectual property. accident occurs. This kind of insight is only This brings a new paradigm of fairness into possible via the data that telematics can deliver, motor insurance pricing, and many senior which is why we’re collaborating with several decision-makers in the industry agree. In a industry partners in the MOVE_UK project. YouGov survey recently conducted among Together, the partners will see MOVE_UK decision makers from international insurance accelerate the entry of automated, driverless car companies, the widespread adoption of technologies to the UK market. It will increase The insurance industry will focus telematics is now seen to be dominant in the rate of development more on 'mobility' as an issue shaping the future of car insurance. and testing of When asked how the motor insurance technologies at a ANDY industry would change over the next decade, all lower cost to vehicle GOLDBY FIA, the top five factors mentioned relate directly to the application manufacturers, and lead on to see driverless chief product officer of telematics. technology trialled in real-world conditions of The Floow on roads in Greenwich, London. Telematics will be critical to the evolution Identifying and predicting fraud of the mobility and insurance industries. As Fraudulent claims cost the industry many billions every year. we find more ways to use telematics, it is clear The ABI states that insurers detected 67,000 fraudulent claims that its insights will be a powerful contributor, valued at £837m last year but it’s likely that many more went making mobility safer and insurance smarter undetected, driving up the cost of motor insurance for everyone and more profitable for all involved. and impacting the profitability of insurers.












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Features Risk

How’s your


Chris Makomereh outlines principles for a practical approach to setting risk appetite statements

Start from the top Risk appetites must be approved, and any changes reviewed and signed off by the board. As well as being a standard set out in the draft Prudential Regulation Authority supervisory statement on “financial management and planning by insurers”, in order for the statements to deliver the objective of improving risk-based decision making, they have to be shaped and owned by the decision makers. Any risk appetite framework process must engage the board early, through discussions that outline the boundaries around the strategy that company operates within. It is also necessary to set high-level principles that establish the general attitude to each class of risk, for example with respect to customer detriment: “Strongly avoid risks that could result in customer detriment.”

Completeness A recurring theme in my risk management training was that operational risk has the least established quantification methods but presents the greatest risk of business failure, with many examples including Barings Bank (1995) and Equitable Life (2000). Therefore, a risk appetite framework with inadequate coverage of non-financial risks provides only a limited benefit to its users. Outline a set of qualitative risk appetite statements for each major risk category the firm has exposure to. The statements don’t have to be quantitative but should have more detail than the principles. 22 | THE ACTUARY | JUNE 2018

22 FEATURE__The Actuary 22

CHRIS MAKOMEREH is head of risk at Vitality Life

Quantifiable It is vital to assess performance against the risk appetite. It is tempting to articulate aspirational statements that are not measurable, and there is room for that in the management of the business but not in the risk appetite framework, which has to be a tool that facilitates improved decision making and a call to action. Make use of subject matter experts to provide expert judgment, where appropriate, for risks that are not easily quantifiable.

Involve the right people The risk appetite framework requires input from stakeholders across the business to select the right metrics and recommend the appropriate calibration. By way of example, cyber risk has been on the agenda across the industry of late, and in setting the cyber risk appetite, the input of the information security and technology teams will be required. Much of the information is likely already being produced; this exercise should serve to bring it together in one place for review through a risk lens. It is also important to obtain input and a review by the relevant subject matter expert for each risk appetite statement.

Embed the framework In order to drive risk-based decision making and improve management’s ability to select and operate within the desired risk range, it is vital that there is regular assessment and reporting of performance against appetite at different levels of the firm. Where the metrics are out of the range, there has to be an agreed action to bring the risk back within it, or acknowledgment to operate outside it for an established timeframe. Also, it is key to report on risk appetite performance at regular intervals at the appropriate management forums and risk committee to provide visibility and accountability.

Prospective and retrospective In order to provide a complete picture, the risk appetite statements should incorporate some prospective and retrospective measures and indicators. For example, tracking metrics that indicate the state of the organisation’s reputation are prospective, as they could point to the possibility of adverse sales and retention performance if the underlying issues are not addressed. It is much easier to have retrospective measures, and they are useful, to the extent that they show trends and patterns that can highlight insights. Prospective measures require more imagination and can be very useful indicators for highlighting potential emerging risks.



isk management has occupied an increasingly influential role within financial services in the past decade, partly thanks to events of the credit crisis in 2008. It is vital for firms providing society with financial solutions within an evolving political, economic and technological environment to have clear, relevant and practical risk appetites. This enables firms to make optimal risk-based decisions, enhancing outcomes for the firms and society in the long run. This article presents some principles that can be applied generally in order to deliver valuable insights to management and boards in the sector.

25/05/2018 16:43

Embrace change Life and Financial Services Consulting We live in unprecedented times – the pace of technological, demographic, political and regulatory change has never been faster. But far from fear these changes, we believe life insurers and financial services providers should embrace them, and the growth opportunities they provide. To learn more about our services visit To find out more about joining our team visit: Independent Expert | Investments | Longevity | Products | Risk & Capital | Transactions

@hymansrobertson p23_ACT.Jun18.indd 23

Find a better future with 29/05/2018 14:50





revolution Ravin Jesuthasan and Day Bishop explain how technology is transforming the insurance value chain

f several o e c n e g er The conv rmative new transfo collectively gies – technolo d the fourth dubbe l revolution ia sk industr transform the ri to ely – will lik e in the decades , p landsca e rise of robotics come. Th ntelligence, and li artificia ous technologies autonom the potential to also has how work gets m transfor ss the insurance o r done ac , from sales and ain value ch riting to claim underw and payments ng processi

any office jobs and knowledge worker occupations are seeing automation change their work. Naturally, this has many worried that the rise of automation and artificial intelligence, or AI, will replace them. Although there’s potential for companies to save on automating parts of their workforce, this doesn’t mean business leaders should simply lay off staff in favour of automation. Instead, they should consider new ways to channel human worker knowledge and identify how best to make the most of all of that experience and expertise, even if the mechanical aspects of their work have gone away. Although we are just at the beginning of the Fourth Industrial Revolution, it is already possible for insurers to deconstruct jobs into component tasks and choose among many emerging options for completing them, including AI and robotics, machine learning and talent on a platform. Auto insurers are using telematics to capture data on driving habits to better manage risk and set rates. And property, casualty, and life insurers are starting to employ virtual assistants to enhance customer service and help customers select the right coverage. To fully capture the opportunities in this new world of work however, insurers will need an understanding of the enablers of automation as well as a framework to guide their decision making as they redefine employment relationships and organisational boundaries. Figure 1. Enablers of work automation Robotic process automation



Maturity Impact

Cognitive automation: AI, machine learning

Social robots









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Feature Technology In this new world of work, it is critical for employers to understand which tasks might best be completed using intelligent automation versus other options. To get started on this journey, leaders should categorise a job’s activities into buckets: routine versus non-routine, and what’s transactional in nature versus advisory or consultative. Routine and transactional tasks are most easily automated. For example, an organisation might decide to deconstruct a claims processing job that’s been done the same way for 20 years, using automation to complete some of the routine tasks while hiring someone on a talent platform to tackle the non-routine tasks. Insurers should first experiment by selecting a few jobs to deconstruct, because unless you can understand how AI and robotics will transform work at the task level, it will be difficult to adopt AI and robotics at a systemic level. Experimentation is critical given the magnitude of the change and you certainly don’t want to disrupt the core operating model. So, by taking on a pilot, an insurer is able to learn quickly and fail safely. First, a firm might want to identify jobs in areas where their organisation is having difficulties attracting talent. For instance, the ability to compete in emerging areas, like advanced analytics, often hinges on getting the right data science talent. This type of critical talent can be difficult for insurers to attract and costly to hire, so the firm could decide to deconstruct several key analytical jobs. Once these jobs are deconstructed into tasks, employers need to evaluate the speed-to-capability, risk and cost implications of different work options. They might then find that their best option is to access world-class talent via a talent platform for tasks requiring highly sought-after skills.

Different types of automation There are three different types of automation likely to be of particular value to insurers (Figure 1): 1 Robotic process automation can replace routine, white-collar work. It is especially effective in compliance work and claims processing where data needs to be updated or transferred from one software programme to another, such as a spreadsheet to a client relationship management or enterprise resource planning system. 2 Cognitive automation improves the quality of decision-making and interaction someone will have with a customer. 3 Social robotics are robots that work alongside humans to automate both routine and non-routine tasks. The classic example is a driverless car or truck. While the insurance implications are just emerging, it is clear that autonomous vehicles could have the ability Figure 2. The opportunity: lead the work Jobs Collected Employment relationship

Tasks Dispersed Virtual or market relationship

The assignment Self-contained Detached Insular Rigid

Permeable Interlinked Collaborative Malleable

The organisation Permanent Collective and consistent Traditional

The rewards

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Impermanent Individualised and differentiated Imaginative

to radically transform insurance from shifting the basis of risk (from driver to asset) to enabling greater micro-pricing of risk.

Greater savings compared to outsourcing Analysis by Willis Towers Watson reveals that companies in many industries, including insurance, that deconstruct jobs and distribute the work using the most efficient and effective means can typically realise savings in the 60% to 80% range. This is significantly greater than the 30% typically achieved through outsourcing. But to capture the opportunities, organisations also need to think about work differently. In particular, it is important to understand the key decisions that need to be made in three areas, as illustrated by Figure 2. On the left, we see traditional employment. Work is ‘constructed’ into jobs, collected at a point and space in time, and executed through an employment relationship. The organisation is self-contained, detached, insular and protective, and has a rigid shape. The reward package is permanent, collectively consistent and uses traditional elements (money, hours, working conditions). On the right, we see a world beyond employment. Work is deconstructed into tasks, dispersed in time and space, and executed through many virtual and market relationships other than traditional employment. The organisation is permeable, interconnected and collaborative, and can change in shape. The rewards are impermanent and individually defined, and use imaginative elements (game points, reputation). Today, firms have the ability to deconstruct a job and have component tasks completed anywhere in the world faster, better and cheaper than ever before. In turn, this trend is leading to new work relationships that are shorter in duration with a greater equality of power between RAVIN employers and talent. Machine learning, 3-D JESUTHASAN printing, mobile technology and algorithmic specialises in the analytics are just some of the innovations future of work at transforming work, and both replacing and Willis Towers augmenting human capability. Watson, and is a But before insurers can unlock value from managing director this new work ecosystem, they need to be able in Chicago to assess their various work options and understand how best to develop new capabilities as quickly and efficiently as possible, without taking on unnecessary risk. As work moves outside the organisation, it will be critical to mitigate the risks associated with the potential ‘lack of control’ of the workforce (liability, loss of intellectual DAY BISHOP property). As the level of skills within the specialises in organisation continues to shrink, it is essential insurance consulting the business insulates itself from the and technology increasing risk of obsolescence. Insurers must at Willis Towers communicate their plans to all stakeholders – Watson in New York leaders, managers and employees – who will need to understand this new way of working. Being able to deconstruct jobs and make decisions as to how best to complete the work, using resources inside and outside the organisation, can confer significant competitive advantage to insurers. JUNE 2018 | THE ACTUARY | 25

25/05/2018 16:44

Features Regulation

An independent view In the second of their articles on improving Internal Model Approval Process (IMAP), Ashish Kwatra and Jennifer Khaleghy explain the implementation of successful IMAP programmes, focusing on independent validation, a key area for the regulator

Ensure your validation process is independent Demonstrating independence could be difficult when implementing an internal validation programme, particularly for small firms, where reporting lines are less distinctive. Areas of good practice include: Ensure no reporting overlap between the capital modelling team (Line 1) and the validation team (Line 2). An example of a commonly adopted approach is to have Line 1 reporting to the CFO and Line 2 reporting to the CRO, or vice versa. The validation team should not be involved in any aspect of Line 1 activities (that is, model design, model development, expert judgments). For example, Line 2 can be an observer in an expert 26 | THE ACTUARY | JUNE 2018

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judgment panel or governance process in order to validate the effectiveness of these processes. However, active participation in these processes would undermine their independence. Validators should be rotated regularly: Using the same validator for the same risk area for more than two to three consecutive years may undermine independence. Line 1 often carries out its own testing. Line 2 can review and challenge this as part of its independent validation. In order to demonstrate independence, it would also need to set out its own independent validation tests with pre-defined pass/fail criteria.

All internal model aspects need to be validated Quantitative areas are typically aligned to the structure of the internal model, broken down into different risk categories (such as reserve risk, dependencies). Aspects to be validated for these areas should include risk coverage, design, data, methodology, parameterisation, assumptions or expert judgments, model outputs and documentation. Qualitative areas are typically broken down into areas such as model governance, model use, model change or development, IT and systems, data and documentation. The level of effort required to validate qualitative aspects can often be underestimated. As an example, the validation of data should cover data governance (such as data policies and standards), data process and controls (data flow and transformation), data dictionary, data quality (data completeness, accuracy and appropriateness) and expert judgments related to data. Careful readers may have spotted that data and documentation are mentioned in both categories, making the validation less clear cut. For example, documentation related to a particular risk category should be validated as a ‘quantitative’ area to ensure sufficient level of knowledge and better efficiency (an approach recommended by the regulator), but overarching aspects of documentation (for example, documentation governance process) should be validated as a separate ‘qualitative’ area.



ay one IMAP firms (that is, firms that received model approval from their regulator by the first day of Solvency II implementation date of 1 Jan 2016) largely used external consultants to satisfy the independent validation requirement. More recently, companies have been looking to transition to an in-house validation. This article offers insight into the practical implementation of the independent validation process, and discusses key areas to ensure the process is both effective and regulatory-compliant. This includes consideration of key items on the regulator’s ‘checklist’, as well as how to make validation less resource-intensive in a business-as-usual environment. The independent validation process and its results will be scrutinised by the regulator, with the following key items on their ‘checklist’: Independence from the capital modelling team Implementation/adherence with a validation policy A complete validation, covering all aspects of the internal model Validation test plans with clear pre-defined pass/fail criteria Skilled and knowledgeable validators Effective challenge, reporting, escalation, remediation and monitoring Board’s role in validation.

25/05/2018 16:44

Features Regulation

Do not underestimate the board’s role in the validation process

Choosing skilled and knowledgeable validators There are three different operating models to perform the validation. External validation team: Outsourcing the validation process to an external consultancy was common practice for Day 1 IMAP firms. Consultants have a good understanding of Solvency II requirements, industry common/best practice, industry benchmarks, and latest regulatory focus. Importantly, one of the big advantages is that, in most cases, independence can automatically be assumed. The obvious disadvantage is the cost. Also, consultants usually do not have daily face-to-face interaction with the firm, making the challenge or Q&A process long and inefficient. One common misconception with this solution is that ownership and accountability of the validation function also gets outsourced. This is not the case – only the validation activity is being outsourced. In fact, the onus is on the company (or CRO) to drive the validation process. They should work with consultants to determine how an area should be validated, what tests should be performed, and what should go in the validation report. Overall, external consultants can be a good solution for pre-model approval but may be costly in the long run. Internal validation team: In addition to cost and Q&A process efficiency, internal resources have a deeper knowledge of the firm and can tailor the validation to the firm’s internal model, risk profile and needs. This solution is more viable for the longer term. However, it requires careful planning to ensure independence and the successful recruitment of skilled resources. Combination: Having a combination of external and internal resources is becoming increasingly common. This draws upon the benefits from both approaches, and facilitates transition to an internal validation. Under this approach, some risk areas remain with consultants, whereas others remain in-house. This can be swapped periodically to ensure independence is not compromised over time. One issue we have noticed is that consistency in the process and reporting can be difficult to maintain. Our personal view is that it is useful to complement an internally driven validation process with external resources (be it external consultants or experienced contractors). This brings a fresh outlook as your model evolves over time, ensuring independence and adding value. Whichever operating model is used, ultimately the effectiveness of the validation process is dependent on the skills and knowledge of the validator. Appropriately skilled validators will ensure that the validation process becomes more value-adding than a box-ticking audit process with hundreds of tests merely confirming the existence of the required evidence, instead of appraising the quality of the evidence.

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The board is the ultimate owner of the validation process and results. The role of the board involves top-down validation (effective review and challenge of the internal model, including key assumptions, drivers, limitations and outputs), challenging the validation process and its results, as well as tracking remediation progress.

How many high/medium/low limitations can a firm have going into an IMAP submission? We have seen firms going into IMAP with a varying number of limitations. However, it is not expected that you have a perfectly clean validation report with no limitations. An attempt should be made to eliminate all high limitations and minimise the number of medium limitations. The low limitations should not be ignored either. In particular, a view should be taken as to whether the low limitations can aggregate up to a medium or high finding. No matter how many limitations you have, a live remediation plan should be in place.

How should you make the validation exercise less resource intensive? For an IMAP submission, the regulator would normally expect to see a fully validated internal model. In a business-as-usual environment, here are some tips to make a validation exercise less resource-intensive. Not all the validation tests need to be performed every single year. It is up to the firm to decide and justify how often to execute a particular test or validation area. ASHISH KWATRA The test frequency should be clearly set out AND JENNIFER in the test plan and/or validation policy, KHALEGHY with triggers for additional ad-hoc are experienced validation defined. capital actuaries, Validation can be focused on changes made specialising in Solvency II and to the internal model since the previous implementation validation. If there has been no change and of the IMAP the previous validation passed without limitation, there is an argument of skipping programmes it this time around. Not all the validation tests need to be performed at once. For example, different validation areas can be validated in different quarters of the year to spread the work over a period of time. Firms with generous IT support may consider automating the validation process, so all challenges from the validators and the corresponding responses are automatically recorded in the system. Such a tool can generate efficiencies and give clear evidence of challenge. This tool could also include progress monitoring and reporting tools. JUNE 2018 | THE ACTUARY | 27

25/05/2018 16:44


A panel of experts from the investment community discuss the latest developments in sustainable investments


ASSET OWNER EDWARD MASON (EM) head of responsible investment, Church Commissioners for England

ow can institutional investments be applied to help create a more sustainable world? There is growing recognition that, not only can this be achieved, but it is a core component of what constitutes best practice from an investment perspective. Considering environmental, social and governance (ESG) issues within the investment decisionmaking process helps to provide enhanced investment returns, reduces risk and also has a positive impact on the world. This focus on ‘ESG integration’ is rapidly gaining traction, which can only be good news for everyone. The Principles for Responsible Investment (PRI) have ESG at their heart. Over 1,800 institutional investors from around the world have signed up to it. The launch by the United Nations in 2015 of the Sustainable Development Goals (SDG) for tackling world problems has provided an extra focus for what PRI means in practice. There is also growing interest from regulators to ensure ESG factors are considered by investors. 28 | THE ACTUARY | JUNE 2018

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INVESTMENT CONSULTANT SARIKA GOEL (SG) responsible investment consultant, Mercer

ASSET MANAGER BRUNO BERTOCCI (BB) senior portfolio manager and managing director, UBS

Representatives from the investment community recently met to discuss the latest developments in ESG at a Sustainability Summit in London. We invited four of the speakers to form an expert panel and provide their thoughts to some questions we posed:

What have been the main changes over the last five years? SH: I think the main change is growing recognition on the part of many professionals, regulators and institutional asset owners that there are material financial risks and opportunities in sustainability. Things like the Paris Climate Accord and the two Law Commission reports on the role of pension trustees in ESG investing have both reflected and driven this change. There is no doubt that UKSIF finds a more ready audience compared to five years ago. EM: The Church Commissioners’ pursuit of sustainable investing goes back many years. We established our sustainability-themed global equities mandate in 2008; today it is our largest global equities


INDUSTRY REPRESENTATIVE SIMON HOWARD (SH) chief executive, UK Sustainable Investment & Finance Association (UKSIF)

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mandate, accounting for nearly 5% of our total portfolio. One particular change stands out for me over the past five years – the growing influence of shareholder engagement on sustainability issues with companies, particularly on climate change. We have been at the forefront of this, particularly through our use of institutionalquality shareholder resolutions. During 2015-2017 we have co-filed resolutions on climate disclosure at BP, Shell, Exxon, Anglo American, Glencore and Rio Tinto, which have all passed. The UK resolutions were recommended by the companies’ boards, but not the Exxon resolution – nonetheless it passed with 62% shareholder support, a landmark moment. SG: The international focus on climate change and UN Sustainable Development Goals since 2015 has been a key driver for the heightened interest by a much larger group of asset owners and asset managers, who are actively focusing on these revenue opportunities. From a risk perspective, the increased focus on regulations is driving asset managers to further think about ESG integration. This is leading to new product development across a range of asset classes. BB: The primary change has been the realisation by asset owners, professional investors and individuals that recognising material sustainability factors enhances the investment decision-making process. Such factors are markers of internal culture and behaviour that ultimately affects the financial results. For example, there is a correlation between high and low accident rates in factories (normalised by workforce size) that is predictive of product quality, which impacts the brand and ability to price higher. Many academic studies show that shareholders have negative views of companies with poor governance characteristics. The recent US Department of Labor ruling on the fiduciary duty of a financial advisor helped change the equation as well, since it places ESG alongside other material factors that need to be considered.

What are your top risk priorities? SH: Our concerns are rather contradictory. On the one hand our members are worried that there will be too great a focus on climate

28-30 feature__The Actuary 29

at the expense of other environmental issues, as well as social and governance issues. On the other hand, we recognise that the sheer breadth of sustainability issues (such as pollution, intensive food production, human rights, tobacco and many more) can make approaching sustainability appear intimidating. Presenting a well-argued case that the traditional investment approach is now likely to produce poor returns is our core priority. EM: We noted the IFoA’s risk alert last year on climate change. We are very focused on navigating prudently the investment risks and opportunities associated with the transition to a low-carbon economy. In January 2017, we launched a new initiative in collaboration with the Environment Agency Pension Fund and Grantham Research Institute at the London School of Economics – the Transition Pathway Initiative ( GranthamInstitute/tpi/). This tracks progress in the transition to a low-carbon economy of the largest companies globally in the industrial sectors most exposed to greenhouse gas emissions. It is a free resource, now supported by investors with over £5trn of assets, and is a great tool to identify those companies in a portfolio which are, or are not, managing climate change transition risk. SG: We are looking to help a broader range of our clients on this journey, in addition to continuing to work with the clients who have demonstrated leadership in responsible investment over the past decade. The key driver is climate change as a systemic risk, but also other increasingly connected, whole-of-portfolio risks that can’t simply be delegated to investment managers. We are working with clients across strategic asset allocation, portfolio construction and manager appointment decisions. We also help asset owners through the use of our ESG Ratings, which indicate how well the overall portfolio is being managed from an ESG perspective. BB: Maybe I would modify your question and note that risk is symmetrical. We think of sustainability factors as having both negative and positive characteristics: they can point to companies with seemingly hidden risks (such as a history of regulatory incidents, or inability to retain key talent) or the opposite, hallmarks JUNE 2018 | THE ACTUARY | 29

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of superior business models with strong innovation, safe factories, good supply chain controls, and more. Think of these factors as operating metrics that drive financial results.

What do you see as the top opportunities by theme and asset class? SH: We think sustainability should be (and can be) integrated into the management of all asset classes. EM: We have gone into sustainable forestry in quite a big way over the last few years. In 2010, forestry was not even an asset class we invested in, but by the end of 2016 it accounted for over 4% of our total portfolio. As an endowment with a long-term approach to investment, we find sustainably managed forestry a very attractive asset class. Also, we are finding that we can add value, and further sustainability benefit, by hosting commercial wind and solar farms on our timberland, just as on our rural land. SG: There is no particular emphasis on any one theme, as asset managers develop strategies around multiple themes linked to the low-carbon economy, as well as to other sustainability challenges. By asset class, we continue to see the majority of opportunities accessed via private markets, real assets, and listed equities, but there are interesting themes emerging in fixed income, such as green and other social impact bonds which we believe may gain interest and demand as investors become comfortable in how they verify the bonds for green and other social credentials. BB: The biggest change is taking place across the entire industry, with a growing focus on the social function of asset management and pension fund management. The discussion has shifted beyond the creation of investment returns in the abstract to include how the returns are being generated. Increasingly asset owners want to know if the companies in their active portfolios are making money and making the world a better place. It’s a bit like food... 20 years ago we ate what was in front of us, now we ask: “Is this organic lettuce, what about genetic modification?” A lot more questions and interest than calories alone.

environmental and social pressures are making ESG factors ever more financially material. SG: Sustainability hasn’t quite become standard yet but the direction of travel is clear, with a continued emphasis on ESG integration, but also a much greater focus on positive impact measurement. We are seeing more incorporation of ESG specialists into investment teams, so the idea of a separate ESG team is closer to disappearing (although it is not likely to disappear completely within five years). Clients of various sizes are increasingly interested in sustainability themes, and we have developed sustainability-focused private markets and listed equity funds for our delegated client base to access these long-term trends. We expect regulation and the visual impacts of climate change to be strong drivers for change in the investment industry. BB: I expect to see a mainstreaming of everything I mentioned earlier. I also expect to see a reporting regime (led by the Sustainability Accounting Standards Board) that parallels what we saw with the normalisation of financial reporting data on a global basis. I think sustainability data will be reported similarly, in financial reports and on a more coherent basis.

“The main change is growing recognition on the part of many professionals, regulators and institutional asset owners that there are material financial risks and opportunities in sustainability”

What changes do you expect in the next five years? SH: UKSIF expects sustainability to be increasingly mandated by law and regulation. We expect it to become integral to the vast majority of fund management methods and to be considered far more in banking. Our opinion polling already suggests public demand for sustainable finance is growing, and we expect this to continue and to influence defined contribution pensions. EM: We engage with all our investment managers across all asset classes on how they are incorporating ESG issues into their investment decisions and investment ownership practice. We have seen our managers’ thinking and approaches move forward significantly since we instituted our comprehensive Responsible Investment Framework in 2015. I expect this trend of increasing ESG incorporation across the investment world to accelerate. Growing 30 | THE ACTUARY | JUNE 2018

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Who is responsible for influencing these changes?

SH: We would like to think UKSIF’s work has played a part in influencing many players and that we will continue to do so. We were delighted that news of the IFoA’s intention to issue a risk alert on climate change came at our Ownership Day event last year. EM: Our philosophy is that ESG is everyone’s responsibility. I’m here to support the investment team and ensure consistency, but every member of the team is expected to incorporate ESG issues into their selection, appointment and monitoring of investment managers – or, in the case of our in-house property assets, to incorporate ESG issues into their investment decisions and asset stewardship. Leadership is vital at any investing organisation, but with the priority the Church attaches to environmental stewardship, we are not lacking leadership and encouragement. SG: We all have a part to play. As consultants we recognise that, while we in Mercer’s responsible investment team have led the way for a long time, this is no longer enough and our consultants increasingly need to play their part in taking our advice to asset owners. Our manager research team also has a part to play in how they differentiate strategies based on the extent that ESG is integrated within investment decisions. Asset owners have an important role for their beneficiaries and appointed asset managers should be focused on supporting these asset owners in meeting their objectives. And of course, the context set by regulators/policymakers and consumers/beneficiaries all contribute to how far we can each go in making sustainability standard. BB: Asset owners and regulators have an important role, as do the leading asset managers. I also see high net worth and other individuals pushing for ESG integration as well.

25/05/2018 17:08

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31 section break__The Actuary 31

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At the back IFoA consultation


e recently returned to our members with our response to the Qualification Framework consultation, which closed in February. The consultation asked for your feedback on the initial elements of the Education Strategy that we have been developing since 2015.

create a truly global profession, where our qualifications enable our members to move wherever they want to in the world, in line with their career aspirations.

What were the key outcomes of the consultation?

The consultation was centred on the idea that we wanted our profession and the qualifications that we provide to be ‘fit for the future’. What does this actually mean? Well, the changes we are implementing to the qualification framework and the wider changes to our curriculum (Curriculum 2019) are all about looking to the future of the profession and how we see our members evolving and growing within the increasingly fast-moving industries in which our members work. We want to attract a new generation of generalist actuaries who use their skills to move the profession into wider fields outside of our traditional areas of work. We also want to

Framing a response Charles Cowling, chair of the Qualification Task and Finish Group, interviews Marjorie Ngwenya, president of the IFoA, about Council’s response to the Qualification Framework consultation

We asked for the views of our membership and they certainly responded, with hundreds of students, Associates and Fellows providing detailed feedback on our initial proposals. The high volume and quality of member feedback gave us ample food for thought. It allowed us an opportunity to review our strategy with the thoughts and needs of our membership and wider stakeholders in mind, and as a result we made three decisions. We are recognising more clearly that Associates are already fully qualified actuaries and, therefore, we are developing a repositioning of the qualification in line with the International Actuarial Association’s (IAA) global standard Any new students embarking on their studies under Curriculum 2019 will be required to reach Associateship before proceeding to Fellowship if that is their ultimate qualification destination. There is an additional element to this decision; because of the feedback we received during the consultation, students will be able to sit all, or any, of their advanced examinations pre-Associateship if they choose to do so We will continue to consider the designation Chartered Actuary (CAct) as a rebranding of our Associateship (fully qualified actuary) instead of moving to a membership vote immediately. We want to engage with you further on your views around this change and then come to a more fully developed decision.

We received a lot of feedback during the consultation, how did Council decide on its course of action? The feedback we have received has been crucial to developing our response. The number of members responding was exceptionally high in comparison with other consultations, with just over 1,000 of our members

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32-33 career__The Actuary 32

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At the back IFoA consultation

taking part in the online survey and a substantial number more through the face-to-face meetings we held during this consultation, as well as our initial discussions with stakeholders prior to the formal consultation opening. As I mentioned in the official response, we had a lot of support from employers, industry bodies, other national actuarial associations, as well as from Students and Associates. However, some respondents had concerns around some elements of the proposals, in particular the introduction of the designation Chartered Actuary (CAct). We, as Council, need to be mindful, of course, of the needs and wants of the entirety of our current and future membership. Not just those who are qualified or working towards qualification but also those who are looking to enter the profession. Many prospective members are looking for roles that will give them opportunity and flexibility in the industries they wish to work within. And, of course, we need to be mindful of the views of the businesses who hire our professionals. This is why we have decided to postpone the decision to move forward with the Chartered Actuary designation and instead spend more time with our members and industry stakeholders to better understand their views on how this may affect their profession – now and in the future.

Why did Council decide to reposition the Associateship as the initial qualification for a fully qualified actuary? Firstly, we wanted to make sure that everyone understood that, as things stand today, Associates are already qualified actuaries. However, we want to reposition that qualification in line with the International Actuarial Associations (IAA) syllabus and the IAA definition of what it means to be a qualified actuary, as per the changes to our curriculum, which is being launched at the end of this year. We believe that this change will benefit our members by: Making the profession more attractive to new entrants Enabling actuaries to expand into wider fields, in terms of areas of expertise, geography and non-traditional areas of business Supporting flexibility for those employers who are increasingly looking for more generalist actuarial expertise Making members more competitive with other professionals in wider fields Ensuring we are relevant globally.

This is just for our new members joining CHARLES post-Curriculum 2019, isn’t it? What does COWLING this mean for our current membership? is chief actuary at Yes that’s right. Those who are currently studying will JLT benefit solutions not be affected by this change, although, if they would like to gain the Associate qualification before working to Fellowship they will be able to do so. The same is true of our Fellows who will not be directly affected by the changes. However, if we decide to move to a member vote to introduce the Chartered Actuary (CAct) designation, and that vote is successful, existing Fellows will have the opportunity to adopt the Chartered Actuary designation, alongside their Fellowship. The IFoA is going through considerable change in terms of how the qualifications are structured, the content of examinations and assessments, and how members are regulated. As with all change, it can seem overwhelming and of course there is the question of: ‘How does this affect me?’. We believe these are changes that seek to secure the value of our profession well into the future, help us to be as competitive as possible within the global marketplace and place the role of actuaries in industry in the forefront of business. By rising to the challenges of our rapidly changing environment, we can ensure that the profession survives, thrives and is truly fit for the future.

What are the next steps now that the response has been issued? We will spend some more time collating feedback on the introduction of the Chartered Actuary (CAct) designation and what it would mean for the membership and wider industry. We believe it would be of huge benefit, so want to ensure members understand why we think this and hear their response. When we have sufficient feedback from a wide-enough cross-section of the membership and industry, we will consider whether to move to a member vote to obtain the necessary bye-law changes. But in other areas, the work of Council and the IFoA doesn’t stop – in fact, it is now fast forward. A new Lifelong Learning Board is being developed that will facilitate the repositioning of the Associate qualification to the IAA syllabus. These changes will be implemented alongside Curriculum 2019. We will be issuing more details about Curriculum 2019 in the next few weeks, so please keep up to date with changes at: studying/curriculum-2019

Keep in touch with us If you have any comments or concerns please contact us via our dedicated email address: and continue to watch for updates of our FAQs. JUNE 2018 | THE ACTUARY | 33

32-33 career__The Actuary 33

25/05/2018 17:09

At the back School of thought

Student Spotlight on stress Joseph Mills looks at the role of stress in mental health, and why student actuaries need to consider its potential effects on both colleagues and clients



esterday, I completed my – admittedly overdue – online training modules. Usually, the automated email from HR once a month results in a 15-30 minute slide deck, followed by a multiple choice test. It sometimes gives you the opportunity to flick right to the end and crack on with the assessment. This approach is perfect because these things can be considered a ‘waste of time’, only there to fulfil ‘corporate responsibility’ checklists. Right? This time, however, the email brought to my attention an area I am not too familiar with. The subject was a “leaders’ guide to mental health”. As I am writing this month’s column on such a sensitive topic, I feel I am stepping on eggshells. But mental health is a topic we need to be conscious of in our day-to-day lives and in the workplace – perhaps more so as we are actuaries, who are, if we fulfil the stereotype, skewed towards introverted behaviour. Stress is a topic that was well covered in my online learning module and which, according to the Mental Health Foundation (MHF), is one of the biggest drivers behind the rise of mental ill health. But stress itself is not the problem. “The stress response is a survival strategy to keep us safe. It was a vital adaption when looking to survive being eaten on the savannah.” Actuarial professionals often come under immense pressure from varying sources, including meeting deadlines, delivering business benefits, taking on more risk34 | THE ACTUARY | JUNE 2018

34 STUDENT__The Actuary 34

related workloads or sitting exams. That’s not to mention the other areas of our lives that we have to consider. There’s a range of areas that someone might worry about. What about the rent? Will I ever be able to afford my own place? Can I go on holiday? What about relationships with my friends and family? The list of potential stress-related factors is endless, yet each person experiences problems in a different way. What one person can manage is not a reflection of how others can cope. You wouldn’t, for example, give a CA1 paper to someone fresh out of GCSEs, whose only understanding of actuarial work is that it is ‘something to do with acting’. With our actuarial hats on, let’s consider something interesting. Professor Marmot

at the MHF believes that “power and resources protect you from stress and its impact. The lower your place on the social hierarchy, the more vulnerable you are to the impact of stress. In fact, you can plot a person’s life expectancy by using the postcode of where somewhere lives. Talk about a postcode lottery.” This is fascinating. And those working within life, health and care and pensions will have a far more intimate knowledge within this area. It makes me wonder whether an increase in resources to an area of a business might affect workers’ mental health in a positive way. How can we understand this more? And how can we reduce the fear of uncertainty, financial worry and the stress of our customers? These are all questions we should be asking when making decisions in the workplace, while not forgetting the stresses and concerns that you and your colleagues will face. My approach to online learning has changed, and I now understand the reason it is there. If you get a chance to have a look, the MHF has a plethora of information and resources to peruse. Even if you feel you are in good mental health, reading their material could enable you to tackle challenges you may face in the future, in talking to, and helping others through their challenges, as well as shaping and strengthening your commercial workplace decisions. • Mental Health Awareness Week runs every year in May

JOSEPH MILLS is joint student editor

25/05/2018 17:10



IN THE MATTER OF AXA INSURANCE UK PLC AND RIVERSTONE INSURANCE (UK) LIMITED AND IN THE MATTER OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 NOTICE NOTICE IS HEREBY GIVEN that, on 17 April 2018, AXA Insurance UK plc (the (“Transferor”) and RiverStone Insurance (UK) Limited (the “Transferee”) made an application (the “Application”) to the High Court of Justice, Business and Property Courts of England and Wales, Chancery Division of the Companies Court in London (the “Court”) pursuant to section 107(1) of the Financial Services and Markets Act 2000 (as amended) (“FSMA”) for an Order: (1) under section 111 of FSMA sanctioning an insurance business transfer scheme for the transfer to the Transferee of a portfolio of public liability and employers’ liability insurance policies written by the Transferor (see footnote) on or before 31 December 2001 (the “Transferring Business”) carried on by the Transferor (the “Scheme”); and (2) making ancillary provision in connection with the Scheme pursuant to section 112 and 112A of FSMA. A copy of a report on the terms of the Scheme prepared in accordance with section 109 of FSMA, by an Independent Expert, Mr Philip Tippin of KPMG LLP, whose appointment has been approved by the Prudential Regulation Authority, (the “Scheme Report”), a statement setting out the terms of the Scheme and containing a summary of the Scheme Report, and the full Scheme document are available free of charge at Supporting documents and any further news about the Scheme will be posted on this website so you may wish to check for updates. You can also request free copies of any of these documents by writing to or telephoning the Transferor using the contact details below. The Application is due to be heard on 14 September 2018 by a Judge of the Chancery Division of the Companies Court of the High Court at The Rolls Building, Fetter Lane, London EC4A 1NL, United Kingdom. If approved by the Court, it is currently proposed that the Scheme will take effect on 1 October 2018. Any person who claims that he or she may be adversely affected by the carrying out of the Scheme has a right to attend the hearing and express their views either in person or by a legal representative. Any person who claims that they may be adversely affected by the Scheme but does not intend to attend the hearing may make representations about the Scheme by telephone or in writing to the solicitors named below or the Transferor using the contact details set out below. Any person who intends to appear at the hearing or make representations by telephone or in writing is requested (but is not obliged) to notify his or her objections as soon as possible and preferably at least five days before the hearing of the Application on 14 September 2018 to the solicitors named below or to the Transferor using the contact details set out below. If the Scheme is sanctioned by the Court, it will result in the transfer to the Transferee of all the contracts, property, assets and liabilities relating to the Transferring Business; notwithstanding that a person would otherwise be entitled to terminate, modify, acquire or claim an interest or right or to treat an interest or right as terminated or modified in respect thereof. Any such right will only be enforceable to the extent the Order of the Court makes provision to that effect. 7 June 2018 Transferor contact information: Telephone number: 01473 337100 (or, if resident outside the UK, on +44 1473 337100). The helpline will be open from 9.00 a.m. to 5.00 p.m. on Monday to Friday UK time (excluding bank holidays). Postal address: The Company Secretary, AXA Insurance UK plc, 5 Old Broad Street, London, EC2N 1AD, United Kingdom Email: Transferee contact information: Telephone number 01273 792475. The helpline will be open between the hours of 9.30 a.m. and 5.30 p.m. on Monday to Friday UK time (excluding bank holidays). Postal address: F.A.O. Fraser Henry, RiverStone Insurance (UK) Limited, Park Gate, 161-163 Preston Road, Brighton, East Sussex, BN1 6AU, United Kingdom Email: Freshfields Bruckhaus Deringer LLP Postal address: 65 Fleet Street, London, EC4Y 1HS, United Kingdom Ref: 166187-0002 (GHFS) Solicitors for the Transferor and the Transferee Note: The Transferring Business comprises business carried on by the Transferor under previous names: Provincial Insurance Company Limited; UAP Provincial Insurance Plc; AXA Provincial Insurance Plc; and business assumed by the Transferor from Orion Personal Insurances Limited; The State Assurance Company Limited; Guardian Assurance plc; AXA General Insurance Limited (under former names United British Insurance Company Limited, GRE (UK) Limited and Guardian Insurance Limited); Guardian Eastern Insurance Company Limited; The Royal Exchange Assurance; Caledonian Insurance Company Limited; British Equitable Assurance Company Limited; Atlas Assurance Company Limited; AXA Insurance Company Limited (under former names Hodge General and Mercantile Insurance Company Limited and Westgate Insurance Company Limited); The Dominion Insurance Company Limited; Essex and Suffolk Insurance Company Limited; The Motor Union Insurance Company Limited; British Equitable Assurance Company Limited; Legal and General Insurance Limited; and Guardian Royal Exchange Assurance plc.

p34_ACT.Jun18.indd 34

22/05/2018 16:39

At the back Society news MORZINE


Inter livery ski competition 2018

Learn how to be an actuary ‘of the fifth kind’

BY NICK SALTER Each year a number of livery companies send representatives to ski for the honour of winning one or more events. This year, 31 companies sent a total of 195 skiers to battle it out. The competition took place in Morzine in France and the format, as usual, was a tight slalom course skied in parallel on the Thursday afternoon, followed by a giant slalom course on the Friday morning. The Worshipful Company of Actuaries was represented by a team of 11 plucky skiers who knew they would not win the fastest skier prize (but would be happy not to retain the slowest team prize won the previous year). We have the added

advantage of being the official scorers for the whole event. The Actuaries’ Code, of course, prevents us from distorting results. The team in finishing order was made up of Master-elect Nick Salter (captain), Douglas Anderson, Bill Harris, Tony Leandro, George Yoxall, Alexander Campbell, Court Assistant Julie Griffiths, Past Master Martin Miles, Court Assistant Gordon Sharp, Past Master Richard Hawkes and Andrew Vaughan. We won nothing, but it was huge fun – this is one occasion where the statement “It is the taking part that matters” is spot on! Next year, the event will be held on 24-25 January and new members are welcome.


Charity golf day The ACA Charity Golf Day is being held on 10 September at West Hill Golf Club, one of the country’s ‘Top 100’ courses. The event is open to actuaries in membership of the ACA and beyond. If you are interested in playing, contact The green fees include a £20 donation towards ‘Get Kids Going!’ a national charity for disabled children and young people that provides specially built sports wheelchairs. The format will be an 18-hole competition in the morning. This will be an Individual Stableford combined with a Team Stableford competition. After lunch, there will be a 9-hole Texas Scramble, so many opportunities to win prizes. UNIVERSITY OF LIVERPOOL AND ACTUARIAL SCIENCE

Lauding students in Liverpool BY MALCOLM SLEE The University of Liverpool’s financial and actuarial mathematics department held its annual celebration on 11 April. Chris Green, of the Worshipful Company of Actuaries (WCA), and Malcolm Slee, representing the IFoA, were very pleased to attend. Chris presented prizes and certificates, sponsored by the WCA to the top students

of their actuarial courses, Yishan Gong and Yinyang Hou. Chris gave a description of the WCA, its history and role. Malcolm gave a talk covering the risks of annuities and pensions and the need for members to be professional at all times. There were 50 present at the meeting. It was good to see such a strong interest in the actuarial profession.

Call for your news… We would be delighted to hear from you if you have any newsworthy items for these pages. Please contact Yvonne Wan at 36 | THE ACTUARY | JUNE 2018

36-37 people news__The Actuary 36

BY THE SINGAPORE ACTUARIAL SOCIETY DATA ANALYTICS COMMITTEE The actuarial profession is going through a transformation in the age of big data and analytics. Actuaries were pioneers in life insurance, constantly evolving over time and branching into general insurance, finance and more recently into ERM (which was referred to as the fourth kind of actuary by Paul Embrechts in 2005). We believe now is the time for actuaries of the fifth kind – a profession that is recognised as a leader in data and analytics across industries. The Singapore Actuarial Society Data Analytics Committee has recently produced a case study in which predictive analytics methods are applied to an historical retail banking dataset, in order to yield insights for marketing of a term deposit investment product. The primary focus of the paper is to illustrate the typical framework and concepts used by data scientists within the machine-learning paradigm. The data set is an often-used one, and the case study aims to demystify the machine learning approach to fledgling actuaries coming to predictive analytics for the first time. Links to the source code used to create the results in the paper are also provided. The full paper may be downloaded from: The Data Analytics Committee is the Singapore Actuarial Society’s initiative to explore the future of big data, analytics and unstructured data in Asia, and what actuaries need to do to have the skill-sets that will be in demand for such work. The committee is made up of actuaries and data scientists based across Asia and globally from a diverse range of industries. For enquiries, please get in touch with Frederic Boulliung:

29/05/2018 09:54

At the back Society Student news SIAS POKER TOURNAMENT


The end of Q1 went out with a bang, with the annual SIAS poker tournament on 14 March, where 65 actuaries and non-actuaries took part. Plenty of food and drink was provided to facilitate rational thinking.

After many ‘hands’, ‘calls’ and ‘all-ins’ the winner, Sam Dean, won £350. Unfortunately he was neither an actuary nor a member of SIAS. On the bright side, our second-place winner, Roshan Tajapra, was a fully fledged SIAS member. Thanks to all who attended.


Just desserts for charity BY MARGARET DE VALOIS Master Nick Dumbreck On a cold January night, almost 150 Liverymen and guests met at Ironmongers’ Hall for our Winter Livery Dinner. The dinner followed the Common Hall meeting where Cian Creedon was admitted to the Livery and we welcomed five new Freemen. Peter Thompson played the piano beautifully to accompany Master Nick Dumbreck, Wardens Nick Salter and Fiona Morrison and Clerk Lyndon Jones as they entered the hall for dinner. Peter also played the piano for grace before our meal of cured salmon, West Country lamb and bread and butter pudding. Then followed the Loving Cup, a tradition shared among livery companies that goes back centuries. Following the toasts, we were honoured to hear our principal guest, Sir Leigh Lewis. Sir Leigh shared his experience of working in the charity sector, including St Mungo’s, which provides shelter for 3,000 people a night, and Drinkaware, which raises the profile of better alcohol consumption. Sir Leigh reminded us of charities’ need for capable, well-led boards of trustees, which actuaries are well placed to serve. He left us with a call to consider becoming a charity trustee, if this is not a role you already hold. The Master thanked Sir Leigh and presented cheques to the charities.

D E AT H S It is with great regret that we announce the deaths of the following members. We offer our condolences to their families and colleagues. Mr David Rowe, 68. Based in the UK, gained fellowship in 1975. Mr Ian Spencer Aitken, 75. Based in the UK, who gained fellowship in 1973. Professor Ragnar Norberg, 72. Based in the UK, gained honorary fellowship in 1999. Mr Anthony Edward Martin Fine, 75. Based in the UK, gained fellowship in 1968. Mr Charles Walter Macdonald, 58. Based in New Zealand, who gained fellowship in 1992.

Mr Christopher Robert Beaton, 82. Based in the UK, who became a student in 1954. Mr Andrew Lyburn, 89. Based in the UK, who gained fellowship in 1957. Mr Derek Ellis, 89. Based in the UK, who gained fellowship in 1959. Mr Michael Doerr, 82. Based in the UK, who gained fellowship in 1959. Mr Jaap van der Starre, 77. Based in the Netherlands, who gained fellowship in 1993. Mr Rodney Benjamin, 73. Based in Guernsey, who gained fellowship in 1977. Mr Kenneth Watling, 85. Based in the UK, who gained fellowship in 1962.

BIRTHS Darren Walker (Capita Employee Solutions) and Jemma Ward (The Pensions Regulator) are delighted to announce the birth of their daughter Isabel Grace Walker.

36-37 people news__The Actuary 37

OBITUARY Brian Harrison FIA Brian Harrison, the well-loved and widely-respected actuary, died aged 59 on 8 February 2018. His actuarial career started at Gresham Life in 1979, after he realised that his fledging career in the Navy was not for him. The armed services’ loss was the actuarial profession’s, and the life insurance industry’s, gain. After moving to what was then Friends Provident in 1992, Brian took on a series of increasingly senior roles, including chief actuary and eventually finance director of the life and pensions company. The years at Friends Provident were ones of great change, including the demutualisation, listing, and eventual sale of the company. Brian was instrumental in ensuring that all these changes were carefully planned and implemented. His calm, intelligent and meticulous way of working meant that everyone involved in these projects always had the utmost confidence that whatever Brian was in charge of would be delivered to a high quality, and on time. After taking early retirement from Friends in 2009, Brian embarked on a new career as a non-executive director of both Marine & General Mutual and Police Mutual, as well as continuing as a trustee of the Friends Pension Scheme. In these roles, Brian brought a powerful combination of intellect, experience and personal support for the executive teams. He was able to ‘cut through’ much of the complexity that can surround life insurance company strategy and ensure effort was spent on what was important. Sadly, this promising new chapter in Brian’s professional career was cut short by a diagnosis of cancer. He decided to step down from his roles so as to spend as much time as possible with his family and also enjoying his hobby of bird photography, while coping with the effects of chemotherapy. He was still driving around the UK to spot and photograph rare birds right up to a few weeks before his death, and his friends would always enjoy the tales of mad dashes in pursuit of some rare feathered guest to our shores. Brian leaves two adult children from his first marriage, as well as Anna, born in 2009 from his second marriage to Lalizar in 2004. His family, friends and colleagues will miss him. AUTUMN JUNE 2018 2017 | THE ACTUARY | 37

29/05/2018 09:54

At the back Puzzles


Word search Mensa puzzle 718

Travel links Mensa puzzle 717 What connection do the following words have with transport?





















Gardener’s world Mensa puzzle 719

Nimble numbers Mensa puzzle 720

If Jacob and Chloe grow beans, Hugo and Marian grow onions, Brett and Flo grow tomatoes and Cedric and Anna grow carrots, do Graham and Diana grow marrows or leeks?

What number should replace the question mark?


Answers 717: They contain: car, van, bus, tram and train. 718: Dermatologically. 719:Marrows. The last letters of each pair of names are the first two of the vegetable they grow. 720: Two. Reverse the digits in each of the top numbers; they can then be divided by the middle number to get the number opposite.

Move from square to touching square to find the longest possible word. What is it?



24 6


? 16

38 | THE ACTUARY | JUNE 2018

34 PUZZLES__The Actuary 38


29/05/2018 09:55

At the back Actuary of the future

On the record How would your best friend describe you? “Adventurous, loyal and persevering”. I did ask them to be nice!

What motivates you? I like what I do.

What would be your personal motto? “Haters gonna hate. Calculators gonna calculate!”

Name five dream companions to be stuck on a desert island with? • Jesus, to turn water in to wine as there is a shortage on desert islands. • Bear Grylls, as he’s a useful person to have around. • Joe Lycett (comedian), to keep everyone’s spirits up. • My dog. • Beyoncé.

Mercer, defined benefits pensions

I rely on yoga and sharing a bottle of wine with friends (not both at the same time).

What is the funniest thing that has happened to you recently? It’s not recent, but I ran into Lindsey Vonn just after she had won the woman’s downhill skiing at the 2015 Alpine Ski World Cup. She was on a victory run and I tried to ski down with her. I fell over immediately.

Alternative career choice? Baking cakes for a living.

What song describes your work ethic? The Climb – Miley Cyrus.

Greatest risk you have taken?

country to start my actuarial career. I felt I was going to like the city and work, and trusted I would make friends. Fortunately, I was right.

When I was 19, I moved halfway across the

If you could go back in history, who would you like to meet? I’d like to meet the Mexican artist Frida Kahlo. Everything I hear about her fascinates me.

What’s your most ‘actuarial’ habit?

If you could be anyone else, who would it be?

I seem to caveat every response I give. “Do you want to go for drinks tonight?” “Yes, but note that this response may change once the venue has been confirmed”.

I’m sure there is someone in the world right now who just spends their time travelling the and generally world, hiking, skiing, climbing cli adventures. I would like to be just having adventure ju tthat th at person.

Favourite Excel function? IMAGES: ISTOCK, ALAMY


A combination of functions that show a countdown to Christmas.

How do you relax? When I can find time, I love to go to the Peak District for long walks. More often, however,

39 AOF__The Actuary 39

Do you ou know an ary destined actuary reatness? You for greatness? ominate an can nominate ary of the Actuary re by emailing Future @theactuary. aotf@theactuary. com

In a movie about your life, who w wh o would play you, and why? w wh y? Keira K Ke ira K Knightley. She’s probably not pretty Sh S e’s p enough to play me though – right?

JUNE 2018 | THE ACTUARY | 39

29/05/2018 10:55

At the back People moves

Moves Aon has announced the appointment of Mike Smaje (below) as a partner in its global investment practice. He will be based in the company’s Leeds and Manchester offices. Smaje has more than 25 years’ industry experience in both pensions and investment consultancy, and asset management. He previously worked for Aberdeen Standard, First Actuarial and Willis Towers Watson.

Aon has also brought in Mike Edwards (below) as a partner in its risk settlement team. He has more than 14 years’ experience in the pensions and insurance industry, specialising in risk settlement solutions. Edwards joins from Scottish Widows, where he was head of origination and structuring. Prior to this position, he held a senior role in Legal and General’s bulk annuity team.

40 | THE ACTUARY | JUNE 2018

40 people moves__The Actuary 40

Emma Adair (below) has become head of client service for UK investment at Aon. In this new role, Adair is rejoining the company after starting her career with one of its predecessor firms. She has spent the past 10 years with Cardano, which she joined at its inception and where she was latterly its head of client management and client delivery teams.

Xafinity Punter Southall has appointed Patrick McCoy as head of investment. McCoy will lead the combined Xafinity and Punter Southall investment teams and reports directly to Paul Cuff, co-CEO. He will also sit on ExCo, driving and implementing the firm’s strategy. He spent more than 10 years at Aon before moving to KPMG as partner and head of investment advisory. Wayne Segers has also joined Xafinity Punter Southall, as head of Punter Southall transaction services (PSTS). Segers joins from KPMG, where he was a director in the London pension practice. Prior to working at KPMG, he was

an associate director at Standard and Poor’s. Seger will report directly to Paul Cuff, co-CEO. Hymans Robertson has announced the appointment of Michael Abramson (below) as a partner and risk transfer specialist He will be based in the London office, and joins the company from Prudential, where he was director of wholesale transactions. Prior to that position, Abramson held several senior roles in Legal & General’s bulk annuity team and at Mercer.

Marian Elliot has joined Redington to lead and help build its first integrated actuarial business line. Elliot joins from Deloitte, where she served as actuarial director for almost three years. Having held director positions at Spence & Partners and Atkin & Co, Elliot brings more than 10 years’ actuarial experience to Redington. BBS Consultants & Actuaries has promoted Gavin Giles to the board of directors. Giles joined the company as a consulting actuary in


2013, following roles at Towers Watson, Aon and Mercer. He was also president of the Bristol Actuarial Society until August 2016. Willis Towers Watson has appointed Mark Brown (below) as global product leader of the firm’s life financial modelling activity. Based in London, Brown joins the insurance consulting and technology team from FIS, where he was product leader for the risk management platform Prophet. He has more than 20 years of industry experience. In his new role, Brown will be responsible for global innovation in life financial modelling, including driving the roadmap for its flagship life financial modelling product RiskAgility Financial Modeller.

Barnett Waddingham has announced the appointment of Sonia Kataora as its new head of DC Investment. Kataora has been with Barnett Waddingham since 2009 and became an associate in 2016. In her new role, she will be responsible for leading the provision of

investment advice to DC clients. Greg Wenzerul (below) has joined Zurich as head of longevity risk transfer. He will lead the development of the company’s pensions de-risking and longevity reinsurance proposition. Previously, Wenzerul was head of DB Solutions at Prudential, which he joined in 2008.

Wesleyan Assurance Society has appointed James Needham (below) to the role of chief actuary, while Jonathan Welsh takes over as with profits actuary. Needham has held several key financial and actuarial roles since he joined the Society in 1999. Welsh joined Wesleyan in 2015 after 18 years working in a range of actuarial roles, notably at NFU Mutual and KPMG. Needham succeeds Tim Pindar, who retired on 31 May after 28 years with the group.

29/05/2018 10:55

At the back Appointments


To advertise your vacancies in the magazine and online please contact: Shamil Bhoyroo +44 (0) 20 7880 6234 or

Actuarial Vacancies HFG’s consultants specialise in matching you to the right role at the right …‘Â?’ƒÂ?›ǤƒŽŽ—•–‘†ƒ›–‘Šƒ˜‡ƒ…Šƒ–ƒ„‘—–›‘—””‡“—‹”‡Â?‡Â?–•ƒÂ?†–‘ƤÂ?†‘—– what opportunities are available. Please see a snapshot of our actuarial vacancies below.


HFG Insurance Recruitment

Pricing Contractor

Deputy Chief Actuary

A Lloyd’s syndicate is looking for a pricing Actuary for 6-12 months to join their Actuarial team. Working closely with the Chief Actuary, this role will be crucial in helping them develop and lead their pricing models over the next year. The ability to work well with underwriters and communicate clearly is essential.

A leading Lloyd’s syndicate is looking for a senior Actuary to support their current Chief Actuary for a 6-9 month contract. Working across reserving, capital and some pricing; this person will be key in helping lead the Actuarial team with the Chief Actuary. Managerial and project management experience is crucial.

ÂŁ800 - ÂŁ1100 per day, London

ÂŁ900 - ÂŁ1200 per day, London

William Gallimore

William Gallimore

Reporting Actuary

Capital Application Actuary (Igloo)

Our client is looking to develop their reporting function in preparation for IFRS17. This business is currently looking for actuaries with front line and annuity experience. A range of permanent and contract opportunities are available in this large UK insurers based in London. Please get in touch for more details.

A leading Lloyd’s insurer is looking to expand their established team. This role involves developing the existing model and utilising the outputs for commercial advantage such as ”‡‹Â?•—”ƒÂ?…‡ ’—”…Šƒ•‹Â?‰Ǥ‘— ™‹ŽŽ „‡ …‘Â?Ƥ†‡Â?– …‘Â?Â?—Â?‹…ƒ–‹Â?‰ …‘Â?’Ž‡š’”‘„Ž‡Â?•ĆŹƤÂ?†‹Â?‰•‘Ž—–‹‘Â?•™‹–Š•‡Â?‹‘”•–ƒÂ?‡Š‘Ž†‡”•Ǥ The client will consider people who are not taking the exams.

Up to ÂŁ100k, London

ÂŁ60k - ÂŁ90k basic, London

Mark Dainty

Reinsurance Analytics Manager A leading Global Speciality Insurer is looking to expand their group modelling capability providing all Catastrophe Modelling, Exposure Management, pricing capabilities and analytical support. Working closely with Actuarial, IT and underwriting teams; strong mathematical and analytical skills and familiarity ™‹–ŠÇĄÇĄǤÇĄƒÂ?†›–Š‘Â?™‘—Ž†„‡„‡Â?Â‡Ć¤Â…Â‹ÂƒÂŽÇ¤

ÂŁ70k - ÂŁ90k basic, London

Antony Williams

Data Scientist A top 10 London Market insurer is seeking to build a market leading data science team and this is your opportunity to be creative as the insurance industry goes through a technological transformation. You will have a Masters degree from a leading university with experience in Python/R and visualisation techniques. No prior insurance industry experience is required.

ÂŁ45k, London

+44 (0) 207 337 8800

Ahad Shadab

William Gallimore UK Managing Director +44 (0) 207 337 8826

Mark Dainty Head of Actuarial +44 (0) 207 337 8816

Paul Fox Paul Fox GI Perm +44 (0) 207 220 1103

Featured Vacancy Predictive Pricing Actuary - £100k, London A leading general insurer is looking to hire an actuary or predictive modeller with GLM and/or Emblem experience to help price their Lloyd’s and London market business. You will have extensive experience in the design and build of cutting edge rating tools and be keen to get your hands dirty in this senior position.

Antony Williams Risk +44 (0) 207 220 1106

This role would ideally suit someone looking to move over from ’‡”•‘Â?ƒŽŽ‹Â?‡•ǤŠ‹•‡Â?’Ž‘›‡”‘ƥ‡”•‡š…‡ŽŽ‡Â?–…‘Â?’‡Â?•ƒ–‹‘Â? and career development opportunities, as well as market leading training.

‘ƤÂ?†‘—–Â?‘”‡ƒ„‘—––Š‹•‡š…‹–‹Â?‰‘’’‘”–—Â?‹–›ǥ’Ž‡ƒ•‡‰‡– ‹Â?–‘—…Šˆ‘”ƒ…‘Â?Ƥ†‡Â?–‹ƒŽ†‹•…—••‹‘Â?Ǥ

0207 220 1103

Ahad Shadab Data Analytics & technology +44 (0) 207 220 1103

Making moves in insurance recruitment

JUNE 2018 | THE ACTUARY | 41

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At the back Appointments

Tong Yu Life Actuarial & Risk EA Reg: R1764687 +65 6829 7166

Shuyu Lim GI Actuarial EA Reg: R1433780 +65 6829 7153

„„›‡Â?’‡•– …–—ƒ”‹ƒŽÇŚ ‘Â?‰‘Â?‰ EA Reg: R1546112 +852 3750 7627 ÂƒÂ„Â„Â›ĚťÂŠÂˆÂ‰ÂƒÂ•Â‹ÂƒÇ¤ÂŠÂ?

APAC Actuarial Assignments Regional GI Actuary

Regional GI Consultant


ƒ…–—ƒ”›–‘„‡ ’ƒ”–‘ˆ–Š‡”‡‰‹‘Â?ƒŽ–‡ƒÂ?ǤŠ‡‹Â?…—Â?„‡Â?–™‹ŽŽŠƒ˜‡•‹‰Â?‹Â?‰”‡•’‘Â?•‹„‹Ž‹–› ‘ˆ–Š‡‹Â?‰ƒ’‘”‡Â?ƒ”Â?‡–‹Â?ƒ††‹–‹‘Â?–‘”‡‰‹‘Â?ƒŽ˜ƒŽ—ƒ–‹‘Â?”‡•’‘Â?•‹„‹Ž‹–‹‡•ƒ…”‘•• –Š‡ ”‡‰‹‘Â?Ǥ ‡ Č€Š‡ ™‹ŽŽ Â?‡‡† –‘ „‡ ‹Â?†‡’‡Â?†‡Â?–ǥ ŠƒÂ?†•nj‘Â? ƒÂ?† Šƒ˜‡ •–”‘Â?‰…‘Â?Â?—Â?‹…ƒ–‹‘Â?•Â?‹ŽŽ•ÇŚ‡••‡Â?–‹ƒŽŽ›Ž‹Â?‡ƒ„—•‹Â?॥’ƒ”–Â?‡”–‘–Š‡‹Â?‰ƒ’‘”‡ operations. Please email for further discussion.

• ’ƒ”– ‘ˆ –Š‡  Í™Í&#x; ‹Â?Â‹Â–Â‹ÂƒÂ–Â‹Â˜Â‡ÇĄ Â?› …Ž‹‡Â?– ‹• •‡‡Â?‹Â?‰ ƒ •‡Â?‹‘” ÂƒÂŽÂŽÇŚÂ”Â‘Â—Â?†‡†

 ƒ…–—ƒ”›™Š‘‹•Â?‡‡Â?–‘•–‡’‹Â?–‘ƒ…‘Â?•—Ž–ƒÂ?…›”‘Ž‡ǤŠ‡‹Â?…—Â?„‡Â?–•Š‘—Ž†Šƒ˜‡ ƒ–Ž‡ƒ•–Í ›‡ƒ”•‘ˆ

‡š’‡”‹‡Â?…‡ǥĥ™‡ŽŽĥ•–”‘Â?‰•–ƒÂ?‡Š‘Ž†‡”‡Â?‰ƒ‰‡Â?‡Â?–ƒÂ?† …‘Â?Â?—Â?‹…ƒ–‹‘Â?•Â?‹ŽŽ•ǤŠ‡›™‹ŽŽÂ?‡‡†–‘Ž‡ƒ†–Š‡

–‡ƒÂ?ƒÂ?†‘˜‡”•‡‡ƒ˜ƒ”‹‡–› ‘ˆ’”‘Œ‡…–•ƒ…”‘••‹Â?…Ž—†‹Â?‰•–”ƒ–‡‰‹…’ŽƒÂ?Â?‹Â?‰ĆŹ„—•‹Â?॥†‡˜‡Ž‘’Â?‡Â?–Ǥ

$Competitive package, Singapore

$Competitive package, Singapore

Shuyu Lim

Shuyu Lim

Head of Reporting - Life Actuarial


Š‹• ”‡‰‹‘Â?ƒŽ ”‘Ž‡ ‘ƥ‡”• ƒ …ŠƒŽŽ‡Â?‰‹Â?‰ ˜ƒ”‹‡–› ‘ˆ ™‘”Â?ÇĄ ‡š’‘•—”‡ –‘ •‡Â?‹‘” Â?ƒÂ?ƒ‰‡Â?‡Â?–ƒÂ?†‡š…‡ŽŽ‡Â?–‘’’‘”–—Â?‹–‹‡•ˆ‘”‰”‘™–ŠǤŠ‡ †‡ƒŽ…ƒÂ?†‹†ƒ–‡Â?—•– Šƒ˜‡‘˜‡”Í™Í?›‡ƒ”•‡š’‡”‹‡Â?…‡ǥ•–”‘Â?‰—Â?†‡”•–ƒÂ?†‹Â?‰‘ˆ”‡’‘”–‹Â?‰‹Â?‡‹–Š‡”Č€ ‘Ž˜‡Â?…›

Č€ Č€…‘Â?‘Â?‹…ƒ’‹–ƒŽƒÂ?†’”‡˜‹‘—•‡š’‡”‹‡Â?…‡‹Â?Â?ƒÂ?ƒ‰‹Â?‰ƒ team. Please contact for further discussion

ƒÂ?…—””‡Â?–Ž›™‘”Â?‹Â?‰™‹–Š‹ˆ‡ Â?•—”‡”•ƒÂ?†‡nj‹Â?•—”‡”•‘Â?•‡˜‡”ƒŽ‹ˆ‡…–—ƒ”‹ƒŽ ”‹…‹Â?‰”‘Ž‡•ƒ…”‘••…‘—Â?–”‹‡•Ǥ ˆ›‘—ƒ”‡ƒÂ“Â—ÂƒÂŽÂ‹Ć¤Â‡Â†Č€Â’Â‘Â•Â–ÇŚÂ“Â—ÂƒÂŽÂ‹Ć¤Â‡Â†…–—ƒ”› ™‹–Š Í?ÇŚÍ™Í? ›‡ƒ”• ‡š’‡”‹‡Â?…‡ ƒÂ?† ‡š’Ž‘”‹Â?‰ –Š‡ Â?ƒ”Â?‡–Ǣ ’Ž‡ƒ•‡ ‰‡– ‹Â? –‘—…Š ˜‹ƒ –‘Â?Â‰ĚťÂŠÂˆÂ‰Ç¤Â…Â‘Â?Ǥ•‰ˆ‘”ƒ…‘Â?Ƥ†‡Â?–‹ƒŽ†‹•…—••‹‘Â?ƒ„‘—–…—””‡Â?–‘’’‘”–—Â?‹–‹‡•Ǥ

$Competitive package, Singapore

$Competitive, Singapore / Malaysia / Thailand

Tong Yu

Tong Yu

Modelling Actuary

Director of Financial Reporting

A top life insurer is looking for a talented Prophet Modeller to join their team ‹Â? ǤŠ‡› Šƒ˜‡ „‡‡Â? ‰”‘™‹Â?‰ –Š‡‹” Š‡ƒ†…‘—Â?– ”‡…‡Â?–Ž› ƒÂ?† Šƒ˜‡ ‹Â?˜‡•–‡† ƒ Ž‘–‹Â?–‘—’‰”ƒ†‹Â?‰–Š‡‹”•›•–‡Â?•Â?ƒÂ?‹Â?‰–Š‡Â?Â?‘”‡†›Â?ƒÂ?‹…ƒÂ?†…‘Â?’‡–‹–‹˜‡ ĥƒƤ”Â?ǤŠ‡›ƒ”‡Ž‘‘Â?‹Â?‰ˆ‘”ƒÂ?‡š’‡”–’”‘’Š‡–Â?‘†‡ŽŽ‡”™‹–Šƒ–Ž‡ƒ•–Í&#x;›‡ƒ”• ”‡Ž‡˜ƒÂ?–™‘”Â?‡š’‡”‹‡Â?…‡Ǥ $750,000 – 900.000 HKD , Hong Kong Abby Tempest

A market leading insurer is looking for a Senior Actuary to join their team. ‘”Â?‹Â?‰ ‹Â? –Š‡‹” ”‡‰‹‘Â?ƒŽ  ‘Ƽ…‡ ›‘— ™‹ŽŽ „‡ Ž‡ƒ†‹Â?‰ –‡ƒÂ?• ƒ…”‘•• •‹ƒǤ Š‡›”‡“—‹”‡ƒÂ?‹Â?†‹˜‹†—ƒŽ™‹–Š’”‹‘”Â?ƒÂ?ƒ‰‡”‹ƒŽ‡š’‡”‹‡Â?…‡ǥ‡š–‡Â?•‹˜‡”‡’‘”–‹Â?‰ Â?Â?‘™Ž‡†‰‡ ƒÂ?† ƒ Â?‹Â?‹Â?—Â? ‘ˆ ͙͚ ›‡ƒ”• ƒ…–—ƒ”‹ƒŽ ‡š’‡”‹‡Â?…‡ǤŠ‹• ”‡ƒŽŽ› ‹• ƒÂ? ‡š…‡ŽŽ‡Â?–‘’’‘”–—Â?‹–›–‘‰‡–‹Â?˜‘Ž˜‡†‹Â?ƒÂ?‡š…‹–‹Â?‰”‡‰‹‘Â?ƒŽ‘Ƽ…‡Ǥ

EA Licence Number: 14C7034 | +65 6829 7153

$1.2m HKD – 1.4m HKD, Hong Kong

Abby Tempest

INVESTMENT MODELLING & CONSULTING London circa ÂŁ60k to ÂŁ80k + Bonus + BeneďŹ ts An investment consultant with modelling skills is required for this highly regarded consultancy. Suitable candidates will ideally be a qualiďŹ ed Actuary (or CFA). You will have the opportunity to be involved in a wide range of modelling and consulting work, this includes: Modelling •

Asset liability modelling and its application to providing strategic investment advice to DB (and DC) pension schemes.


Designing / developing models, and dealing with internal and external stakeholders’ requirements to deliver functionality that will be used across the Investment department and externally.


Understanding the workings of stochastic models (including monte carlo simulation models).


Explaining complex concepts relating to modelling as it applies to pension schemes, both internally and to sophisticated clients.

Consulting •

Identifying suitable investment structures to implement strategies, taking into account individual client’s circumstances and preferences.


Conducting investment manager research and formulating views on investment managers’ capabilities.


Conducting investment manager selection exercises, leading clients to reach decisions on managers.


Assessing investment management agreements and negotiating terms with investment management providers.


Agreeing the basis of and overseeing transfers of assets between investment managers.


Maintaining up-to-date knowledge of market practice and legislation.


Undertaking performance and risk assessment of portfolios.


Presenting the different investment requirements of deďŹ ned beneďŹ t and deďŹ ned contribution schemes, including AVCs, and suitable investment options.

Suitable candidates will be technically proďŹ cient – in particular strong Excel skills, and have an understanding of programming languages. C# and VBA would be desirable.

Parvinder Matharu Newton Recruitment t +44(0)1689 862937 e w Contact

42 | THE ACTUARY | JUNE 2018

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London : Chicago : Hong Kong : Singapore : Shanghai : Zurich

At the back Appointments

Actuarial Long-tail Pricing Actuary - Lloyd’s Syndicate








Contact: Tel: +44 207 481 8111

Contact: Tel: +44 207 481 8111








Contact: Tel: +44 207 481 8111

Contact: Tel: +44 207 481 8111

Pricing Analyst

Capital Actuarial Analyst






Contact: Tel: +44 207 481 8111

Contact: Tel: +44 207 481 8111

Mixed Actuarial Analyst

Commercial Lines Pricing Consultant





Contact: Tel: +44 207 481 8111

Contact: Tel: +44 207 481 8111


Email: IW^'ƌŽƵƉ͕ĞǀŝƐDĂƌŬƐ,ŽƵƐĞ͕ϮϰĞǀŝƐDĂƌŬƐ͕>ŽŶĚŽŶϯϳ: tĞďƐŝƚĞ͗ŚƩƉ͗ͬͬǁǁǁ͘ŝƉƐŐƌŽƵƉ͘ĐŽ͘ƵŬ JUNE 2018 | THE ACTUARY | 43 Telephone:ϬϮϬϳϰϴϭϴϭϭϭŵĂŝů͗ĞŶƋƵŝƌĞƐΛŝƉƐŐƌŽƵƉ͘ĐŽ͘ƵŬtĞď͗ǁǁǁ͘ŝƉƐŐƌŽƵƉ͘ĐŽ͘ƵŬ dǁŝƩĞƌ͗Λ/W^'ƌŽƵƉh< >ŝŶŬĞĚŝŶ͗/W^'ƌŽƵƉ ACT recr June 18.indd 43

24/05/2018 16:06



Significant six-figure package

A global professional services consultancy is seeking a Senior Actuarial Manager to join their Life team where you will be responsible for leading client engagement teams ensuring the provision a high quality advisory service to its clients. The role includes building and maintaining strong relationships with both new and existing clients as well as marketing and raising the profile of the business. The role will involve IFRS Implementation projects and providing actuarial expertise on finance transformation projects. The successful candidate will have strong project and people management skills and an ability to structure task allocations. A background in Life Insurance or Consulting experience with strong technical and communication skills is essential.

The role reports to the Chief Information Officer with one of the largest and highest profile DB Schemes in the UK. The successful candidate will be able to help implement an innovative new approach to investment within the scheme and potentially have a wider impact on the Pensions Investment sector as a whole. The ideal candidate for this role will be a qualified actuary with pensions and investment experience. You will be well connected in the market and an innovative thinker. You will be capable of taking lead in trustee meetings and have a real impact on long term investment strategy. Contact: | 0207 092 3237


Our client is looking for an experienced Senior Investment Consultant to contribute to the leadership of the firm and lead a portfolio of investment clients. You will be responsible for developing people managers and mentoring members of the team. You will also be providing investment advice to a portfolio of trustee and corporate clients as well as representing the firm through networking and speaking at conferences and other public forums. You will be either FIA or CFA qualified with previous leadership experience in a consultancy environment and have an in-depth knowledge of UK pensions schemes. Strong commercial awareness of the employee benefits market is also highly desirable along with a previous track record of facilitating business development opportunities.

London, up to £95k + bonus + benefits

Contact: | 0207 092 3228

INVESTMENT ACTUARY LIFE INSURANCE London, up to £80k + bonus + benefits

A London based Investment manager is looking to grow its Life team and is seeking to hire an Investment Actuary to join their London team. Reporting to the Head of Life Analytics, you will take on a diverse role in decision making with Portfolio Managers and providing support for structuring and negotiating trades. In doing so, you will develop a full understanding of potential investments in quantitative and qualitative terms, equipped with strong commercial sense. The role will require strong programming and modelling skills. They are looking for a qualified Actuary with a minimum of 3 years relevant experience, knowledge of life insurance and strong communication skills. Contact: | 0207 092 3228

Contact: | 0207 092 3227



London, up to £65k

London, up to £75k + bonus + benefits

An award-winning pensions consultancy is looking for an experienced Investment Consultant. You will provide investment advice to both trustee and corporate clients on a wide range of issues. You will be developing business by relationship building and conducting new business pitches. Other responsibilities include establishing and maintaining strong links with other areas of the business to facilitate cross selling and developing the consulting capabilities of the firm by training and mentoring more junior team members. The suitable candidate must be FIA or CFA qualified and be performing a similar role in a consultancy or other relevant investment sector and have a strong commercial awareness of the pensions and employee benefits market.

Supporting the Partners & Directors within the Life & Financial Services practice, you will take on a diverse role covering: Risk and Capital Management, Solvency II, Investment Strategy and ALM, Reinsurance & Risk Transfer, M&A Transactions and Pricing & Product Development. The ideal candidate will be qualified a actuary (CERA or other quantitative risk qualification is advantageous) with a good knowledge of Solvency II and solid experience in life insurance or consulting. Strong project and people management skills with an ability to develop a strong network of contacts in the life insurance industry would be advantageous. Contact: | 0207 092 3286

Contact: | 0207 092 3227



Birmingham, up to £55k + bonus + benefits

Munich, Germany, up to £75k + bonus + benefits A leading global reinsurer are seeking a Product Actuary for their Life Actuarial team. Reporting to the CPO, you will be responsible for leading the development and maintenance of Terms of Trades, work closely with pricing, operations, project management as well as clients to grow their presence across the UK and Europe. You will develop the costing tools/models across the L&H business, build the business’ portfolio as well as bringing on new clients. The ideal candidate will be a qualified actuary with an excellent understanding of Life and Health products as well as some costing experience in reinsurance. Fluency in English or another European language would be advantageous.

A multinational consultancy is looking for an Investment Analyst with 2-5 years' experience within Actuarial Pensions and/or Investments to join their growing team. The successful candidate will own their book of clients and with support from the Team Leader, analyse their clients investments in coordination with their objectives where the findings will be communicated to the wider team which provides investment consultancy services to UK company pension schemes and charities. You will have completed or be progressing through actuarial/CFA exams and have pensions actuarial/trustee consulting experience. Contact: | 0207 092 3238

Contact: | 0207 092 3286

44 | THE ACTUARY | JUNE 2018

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At the back Appointments



London, up to £125k + bonus + benefits

London, £75k - £95k

A dynamic Lloyd’s syndicate is seeking to hire a qualified actuary to focus on pricing for their Long-Tail lines of business. This will be looking mainly at Financial Lines and report directly into the Chief Actuary. The role will involve heavy underwriter interaction, account pricing and model development. You will be the lead for financial lines and be liaising with multiple teams across the business and working directly with Senior Management. This is an excellent opportunity that offers a huge breadth of exposure for someone coming in. You will have complete ownership of a key product and have room to bring your own ideas to the table. The actuarial team is small but experienced so you would have people to learn from and plenty of scope to shape the process as you see fit.

An established Lloyd's syndicate are looking to grow their pricing function and as such are currently seeking a nearly/newly qualified actuary. The role is a newly created position within the syndicate and will focus on pricing across marine lines of business, specifically being responsible for the development of risk-based GLM models, undertaking technical pricing analysis across the largest accounts, building price sensitivity/lifetime models and conducting portfolio reviews. Candidates will be nearly/newly qualified and have strong personal lines pricing experience. You will need to be technically proficient in the use of Emblem and be able to build GLM models from scratch. This is an excellent opportunity for candidates looking to make the move from personal lines into the Lloyd's market.

Contact: | 0207 092 3242

Contact: | 0207 092 3239



London, competitive salary + package

A Qualified Actuary is needed for a London market insurer who are currently seeking a Head of Capital. Reporting directly in the Chief Actuary the role will be responsible for leading a team of student actuaries whilst developing and running the existing capital models. You will be performing capital assessments across a range of measures, carrying out stress testing and model validation and supporting M&A activities. Candidates will need to be qualified actuaries with a wealth of capital modelling and SII experience. Igloo modelling skills would be preferred however all capital skills will be considered. Candidates with previous standard formula experience would be highly desirable.

London, competitive salary + package

A leading Lloyd’s syndicate is seeking a qualified actuary with extensive Capital Modelling skills to join their analytics function. This will report into the Head of Capital Modelling, manage a team, and focus on supporting their internal ReMetrica model. The idea candidate will be qualified and be in a management role currently. Prior Capital Modelling experience is essential to the role with a slight preference towards ReMetrica. Candidates with a good level of experience in other commonly used packages will also be considered. Contact: | 0207 092 3242

Contact: | 0207 092 3239

Our team work on both permanent and contract opportunities across life and non-life insurance and the pensions and investment markets. If you are looking for your next career move or to discuss other opportunities we may have, get in touch with a member of our team today for a confidential discussion. Alternatively, please visit our website for more information on the opportunities our consultants are working on.

JUNE 2018 | THE ACTUARY | 45

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POT. KETTLE. BLACK. The severe and challenging insurance rate environment continues into 2018, despite the impact to insurers’ balance sheets and profit and loss statements from the 2017 catastrophes. This was laid bare in Lloyd’s of London results for 2017. Even taking out Major Claims the 2017 combined ratio was 98.4%. Reserves releases from back years are dwindling (2.9% of Net Earned Premium in 2017 versus 8.0% of NEP in 2013). The convenient bogey man is Alternative Capital. The narrative that Alternative Capital is causing an excess supply of insurance capital while simultaneously being satisfied with a lower Return on Capital is comforting to insurers, in the face of an insurance rate environment that insurers seem unable to reform or resist.

IS THIS TRUE? No. In fact, insurers need to take a good look at themselves. A recent Aon Benfield report (Reinsurance Market Outlook, Capacity Builds Ahead of Mid-Year Renewals, April 2018) highlighted an uncomfortable truth. From 2007 to 2017 Alternative Capital grew from $22b to $89b [+$67b]. From 2007 to 2017 Traditional Capital grew from $388b to $516b [+$128b]. That is, Traditional Capital has contributed almost twice as much growth in capital over the last decade in dollar terms as Alternative Capital.

THE QUESTION HAS TO BE ASKED: WHY? Why are insurers increasing Traditional Capital if the environment is so terrible (according to their own narrative)? Could it be that insurers are the architects of their own dire situation? Consider some of the methods by which Traditional Capital has expanded: quota share reinsurance treaties, sidecars, Lloyd’s special purpose agreements (SPA), consortia, managing general agents (MGA), broker lineslips, with all these often paired with considerably larger gross line capacity. All these methods of growth are actually causing the insurance market (i.e. insurance rates, and therefore premium income) to contract. Excess supply from traditional sources inevitably pushes rates down and keeps them down. Observe the initial enthusiasm post-H.I.M. (Harvey, Irma, Maria): many insurers immediately announced growth plans and expanded capacity. The hoped-for rate increases never arrived: I can’t say I was surprised. A sober, restrained, approach post-H.I.M. would have produced a much-better outcome for insurers. Now let’s examine the narrative that Alternative Capital is satisfied with a lower Return on Capital. Is that true? Yes, but not for lack of trying. Alternative Capital typically has to highly collateralise the exposure it underwrites. An extreme example would be Catastrophe Bonds, where 100% collateralisation is a core feature of that subset of Alternative Capital. Alternative Capital is satisfied with a lower Return on Capital because the ‘C’ of RoC is higher, not because the ‘R’ of RoC is lower. That is, the

Samantha Yee Manager Actuarial and Risk 020 7332 5881

insurance rate Alternative Capital achieves by underwriting a given risk in a competitive environment will be the same as that achieved by Traditional Capital, it’s just that Alternative Capital is at a competitive disadvantage and therefore is forced to accept a lower RoC. It is often true that Alternative Capital sees insurance as a diversification play, but this fact doesn’t stop these sophisticated deployers of capital doing their level-best to maximise their RoC. They’re dispassionate about insurance: they’re just deploying their capital to an area of the economy where they can get the best riskadjusted RoC they can (as of today). By-the-by, this is why Alternative Capital is not as sticky or permanent to the insurance industry as some have speculated. If some other area of the economy provides a better RoC tomorrow you can be sure Alternative Capital will start to flow away from the insurance industry. The current global economic paradigm is unusual, and sooner or later it will normalise (or change in some other way). So this narrative (“Alternative Capital is satisfied with a lower Return on Capital”) is moot: Alternative Capital is no different to any other Traditional Capital competitor jostling for position in a relatively over-supplied marketplace. Another often-overlooked point also bears highlighting. What RoC are insurers targeting in 2018? Are insurers clinging to their Glory Days? Is it possible that risk (of all types) is not as well-remunerated as historically? I believe that is a real possibility. Insurers may desire a given RoC, but that does not mean that desire is supportable in the current global economic paradigm. There’s a lot of capital sloshing around the globe right now, looking for an adequate risk-adjusted RoC. For example, as of 1 May 2018 the ICE BofAML Euro High Yield Index Effective Yield (BAMLHE00EHYIEY) was 2.99%. As many readers will be aware: ‘high yield’ is often called ‘junk’. How can insurance justify a 15%-20% RoC when junk bonds earn under 3%? It’s time to dial-back expectations. It’s not that Alternative Capital is satisfied with a lower Return on Capital: it’s that Traditional Capital has a wholly unrealistic view of an appropriate Return on Capital in 2018 in the current global economic paradigm. One other thing has changed over the last decade (or perhaps slightly longer). There has been a rapid consolidation of insurance brokers, such that the major insurance brokers now control a very significant proportion of the total market. It is no coincidence, in my mind, that acquisition costs have increased markedly over this period. Insurance brokers are using their pivotal position in the insurance value chain to extract over-sized returns. Situations like this don’t last forever. Capitalism and capital will inevitably find a way to work around insurance brokers. It may take time, but it will happen. Time for a new bogey man? Richard Hartigan FIA If you have any thoughts which differ with the article above I would be very interested in having a conversation with you- Feel free to get in touch!

Samantha Chan Consultant Actuarial and Risk 020 7246 2641 OFFICES IN LONDON AND SINGAPORE WITH A STRONG TEAM OF 65 PEOPLE

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At the back Appointments

JUNE 2018 | THE ACTUARY | 47

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At the back Appointments



Financial Service Provider


Leading Insurer



In this key role, you will provide support in managing and optimising our client’s financial results, assisting with the development of deep financial analytical capability to aid understanding of the key drivers of financial performance. You will also support the development and implementation of new reporting strategies in response to changing business circumstances and strategic initiatives, and the implementation of and adherence to the Model Risk Control Framework.


Take your career to the next level as you use your proven leadership and project delivery skills to build, inspire and motivate a team to reach their full potential.


Reinsurance Broker

LIFE LONDON The successful candidate will have experience with a range of reporting measures, experience of working in protection, a strong understanding of reinsurance structures, and experience of managing financial reporting change. Please contact Jo Frankham (+44 7950 419 115, for more information.


Seeking an enthusiastic, curious and driven actuary, with marketing flair and technical nous, to identify and structure advanced reinsurance and capital solutions, collaborating with a close-knit team of experts.



Major Reinsurer


Major Insurance Group



Use your knowledge of change management to deliver strategically-orientated business and systems solutions to our client’s changing requirements.


Seeking a part-qualified or qualified actuary with strong project management skills to take a key role in the development of new longevity business, supporting treaty negotiations, whilst also managing existing client relationships.

Working in a multidisciplinary team, you will ensure the continuing financial reporting production capability for the full range of financial metrics relevant to the business. You will also develop and define the financial reporting strategy, and key actuarial and financial inputs into the business plans.


The successful candidate will possess extensive knowledge of reporting metrics, alongside risk and savings (including With-Profits) products.


Flexible working options are available. Please contact Jo Frankham (+44 7950 419 115, to discuss this role.



Part-Qualified / Qualified Leading Global Consultancy





A fantastic opportunity for a talented actuarial consultant to deliver an excellent service to a portfolio of prestigious clients, participating in a wide range of activities such as reserving, financial reporting and audit support.


Leading-Edge Firm STAR4846

Seeking an actuary with deep technical expertise to take up a key role and lead regular reviews of material assumptions and methodologies, identifying gaps or constraints, developing solutions and providing expert advice and insights.

Major Insurer

Is your next role one of the



In this key position, you will lead the Solvency II capital reporting team, using your understanding of asset modelling and investment markets to deliver the capital reporting requirements.


VACANCIES on our website?

Irene Paterson FFA

Lance Randles MBA

Peter Baker

Jan Sparks FIA

PARTNER +44 7545 424 206

PARTNER +44 7889 007 861

PARTNER +44 7860 602 586

PARTNER +44 7477 757 151

Jo Frankham

Adam Goodwin

Clare Roberts

Diane Lockley

ASSOCIATE DIRECTOR +44 7950 419 115

ASSOCIATE DIRECTOR +44 7584 357 590

ASSOCIATE DIRECTOR +44 7714 490 922

S SENIOR CONSULTANT +44 7492 060 219 +

Antony Buxton FIA

Louis Manson

Joanne O’Connor

Sarah O’Brien

MANAGING DIRECTOR +44 7766 414 560

MANAGING DIRECTOR +44 7595 023 983

OPERATIONS DIRECTOR +44 7739 345 946 m

SENIOR CONSULTANT +44 7841 025 393


ACT recr June 18.indd 48

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ACTUARIAL POST RECRUITER OF THE YEAR 2012 . 2013 . 2014 . 2015 . 2016 .At 2017 the back





Leading Global Consultancy




Join a leading deals team and support all aspects of transactions, from pre-deal due diligence and vendor/purchaser assistance to post-deal implementation leading to ongoing corporate consultancy.


Leading Multinational



Use your well-honed project management skills, and your de-risking and member options experience, to commission, review and sign-off feasibility reports for transfer value exercises, pension increase exchanges and ALM solutions.


Household-Name Insurer



Our client is seeking a qualified actuary with strong technical and leadership skills and extensive knowledge of defined benefit pension schemes. In this key role, you will lead a team in providing post-sale calculations relating to inception pricing, reinsurance, longevity and collateral arrangements, driving forward specific projects including the on-boarding of new reinsurance arrangements. You will also review and approve Benefit Specification and Data Schedules to be received by clients prior to Balancing Premium calculations and completion of deals. Please contact Jo Frankham (+44 7950 419 115, to discuss this excellent opportunity.

DC PENSIONS MANAGER Leading Global Consultancy


Manage project teams in the delivery of a range of defined contribution pensions and wider employee benefits projects, dealing with all client activity and undertaking internal risk management activity.

Leading Investment Advisor



Specialist Consultancy



Unique opportunity for a qualified pensions actuary to build and lead a new business based in Manchester. You will have significant experience of providing corporate pensions advice to a wide range of clients to help them achieve their objectives.





Fantastic opportunity for a commercial and innovative pensions actuary with a track record of winning new clients to play a key role in the development, launch and growth of a new actuarial consultancy.

Is your next role one of the

You will have entrepreneurial flair, a commercial focus and a proven track record of business development. You will enjoy managing long-term client relationships, from initial contact, through feasibility studies and project planning to successful completion. Contact Margaret de Valois (+44 7591 206 881, to find out more about this exciting role with a thriving consultancy.



VACANCIES on our website?

Market-Leader STAR4718

Develop your career with a market-leader. You will work in multi-disciplinary project teams developing cutting-edge solutions to a wide range of pensions problems using the latest technology.


Growing Consultancy



Join a growing team within a business offering career development opportunities with an emphasis on creating an environment for efficient delivery and a good work-life balance.

Irene Paterson FFA

Adam Goodwin

Margaret de Valois FIA M

PARTNER +44 7545 424 206

ASSOCIATE DIRECTOR +44 7584 357 590

A ASSOCIATE DIRECTOR +44 7591 206 881 + m

Antony Buxton FIA

Louis Manson

Joanne O’Connor

MANAGING DIRECTOR +44 7766 414 560

MANAGING DIRECTOR +44 7595 023 983

OPERATIONS DIRECTOR +44 7739 345 946

Star Actuarial Futures Ltd is an employment agency and employment business


We have consultants based in or near to all of the following major actuarial centres in the UK: LONDON









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At the back Appointments

A new dawn

Brighter futures begin with Oliver James Associates Enjoy unrivalled access to the world’s XZMUQMZQV[]ZIVKMߨZU[_Q\P7TQ^MZ James Associates. We unite expertise in actuarial with an impressive network of industry contacts – and all while keeping a single aim in mind: to bring you the most exclusive career opportunities on the market.

Oliver James Associates Delivering with Excellence

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Snapshot of Live Actuarial Vacancies






Life, Pensions & Investments Actuarial Consultant City of London £65,000 + Package

Head of Actuarial Change South East Competitive

Stress and Scenario Testing Actuary South England £500 - £700/ day

8ZM[\QOQW][ߨZU[MMS[Y]ITQߨMLXMV[QWV[ actuary with 1-3 years’ PQE, who will soon be on track to become a partner. Perfect opportunity to join an illustrious and marketrenowned practice.

International insurer is seeking to appoint a [MVQWZY]ITQߨMLIK\]IZa_Q\PM`\MV[Q^MUIV management experience to lead the Actuarial Modelling team. Ability to translate technical issues to a non-technical audience is a must.

A life client requires a capital actuary for a short-term contract based in the South of England. Candidates with good stress and scenario testing and proxy modelling experience should get in contact.

Senior Planning and Projects Actuary London £80,000 - £110,000 + Package

Head of Reporting London Up to £130,000 + Package

Process Improvement - Modelling/Reporting UK £500 - £700/ day

Unique opportunity for a senior actuary to join this leading organisation in London. Working closely with the exec team across ^IZQW][XZWRMK\[_Q\PQVߨVIVKQITZMXWZ\QVOIVL business planning.

Key client in London seeks a Head of Reporting.The ideal candidate will have 8+ years’ experience and in-depth knowledge of Financial Reporting measures, particularly Solvency II, IFRS and MCEV.

Prestigious life insurer requires a nearly/newly Y]ITQߨMLIK\]IZa_Q\POWWLUWLMTTQVOM`XMZQMVKM (Excel, VBA), who is familiar with Solvency II reporting for a six-month initial contract.

Head of Capital London £150,000 + Package

Pricing Actuary London £70,000 - £100,000

Capital Contractor London £900 - £1,000/ day

We’re looking for a Head of Capital for an ambitious Lloyd’s business. If you’ve strong inhouse Capital and Solvency II experience, and a desire to lead a team, please get in touch.

Working with a number of prestigious Lloyd’s Market (re)insurers on a variety of Actuarial Pricing roles. Particular interest in candidates from a Personal / Commercial Lines background who can bring new pricing methodologies / technologies.

We have a number of opportunities with London Market clients seeking capital actuaries with Lloyd’s experience, plus good capital modelling exposure. Please call to discuss.

Reserving Analyst London £60,000 + Package

Motor Pricing Senior Analyst Leeds £50,000 + Package

Reserving Contractor London £800 - £1,000/ day

Highly reputable London Market insurer ZMY]QZM[IXIZ\\WVMIZTaY]ITQߨMLIK\]IZa_Q\P 4+ years’ experience to join its expanding team. Reserving experience is essential, ideally in ResQ. Excellent prospects.

My client is looking for a Motor Pricing Analyst to join its expanding team. You will manage analysis and appropriate change recommendations in support of new business and renewal pricing. You must have previous GI pricing experience.

IFRS17 is set to be a big project over the next couple of years and clients are already adding contractors to their teams. Please get in touch if you are considering becoming a contractor and have reserving experience.

General Insurance

Contact Us Richard Howard Life Specialist +44 203 861 9191

Sarah Robins Personal & Commercial Lines Specialist +44 203 861 9198

Helen Kinloch Pensions Specialist +44 203 861 9173

Ross Anderson London Market Specialist +44 203 861 9206

Elise Ogden Non-Life Specialist | Contract +44 203 861 9169

Ani Pannell Life Specialist | Contract +44 203 861 9163 (72)[[WKQI\M[ oliver-james-associates

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Experts in back Actuarial Recruitment At the





RESERVING ACTUARY Part-Qualified / Qualified

Specialist Insurer


Major International Reinsurer


A fantastic opportunity for a non-life actuary with extensive reinsurance experience to play a key role in the evaluation and pricing of specialty and casualty lines risks.

Our client is seeking a part-qualified or qualified actuary with long-tail reserving experience to streamline its reporting processes in order to create value for the business.

You will utilise your strong communication skills with both clients and brokers, and contribute to the ongoing development of proprietary modelling capabilities.




The successful candidate will have applied distribution extrapolation, curve fitting and portfolio optimisation techniques to specialty and casualty classes of business (including cyber, marine, energy, terrorism, aviation, professional liability and general liability). Python and VBA experience would also be advantageous. Contact Paul Cook (+44 7740 285 139, for more information.

Part-Qualified / Qualified

Specialty Insurance Group



Use your skill and experience to create, update and improve the pricing tools used across the business for all lines and territories, spanning property, casualty, marine, aviation, satellite, motor and accident & health.


Major Insurance Firm


Growing Insurer



Gain a broad perspective in this excellent role encompassing reserving, capital and valuation appraisals for M&A and commutation activity. The successful candidate will provide support for reserving and standard formula capital modelling for current business, alongside quarterly reserving and Solvency II capital assessments for both individual entities and the group. You will also provide broader Solvency II support into ORSA, SFCR and RSR reporting requirements and contribute to quarterly reporting.


Identify improvements to pricing structures, conducting research & development activities to include data sources, data mining and alternative modelling techniques, including machine learning.


Lloyd’s Syndicate

NON-LIFE LONDON In addition, you will conduct M&A valuation appraisals for new acquisitions, including reserving, capital, pricing and structuring support. Contact David Ellis (+44 7432 791 061, to discuss this career-development opportunity.





Rapidly-Growing Insurer



Set the tone as the first in-house actuary, working with business leaders to implement their ambitious growth strategy. Personal lines street pricing and price optimisation experience is required alongside a commercial market focus.

Specialist Insurer



Our client is recruiting across a range of capital modelling skill sets, offering opportunities for creative thinkers seeking to develop themselves and the team during a period of expansion, change and modernisation.


Use your reinsurance pricing experience and take responsibility for individual pricing assessments of large or unique risks including clear communication of the results to underwriters.

Is your next role one of the


VACANCIES on our website?

Lance Randles MBA

Paul Cook

Satpal Johri

PARTNER +44 7889 007 861

A ASSOCIATE DIRECTOR +44 7740 285 139 +

ASSOCIATE DIRECTOR +44 7808 507 600

Clare Roberts

David Ellis

Diane Lockley

ASSOCIATE DIRECTOR +44 7714 490 922

ASSOCIATE DIRECTOR +44 7432 791 061

SENIOR CONSULTANT +44 7492 060 219

Antony Buxton FIA

Louis Manson

Joanne O’Connor

MANAGING DIRECTOR +44 7766 414 560

MANAGING DIRECTOR +44 7595 023 983

OPERATIONS DIRECTOR +44 7739 345 946


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Star Actuarial Futures Ltd is an employment agency and employment business

LONDON MARKET ANALYST 24/05/2018 16:08

The Actuary - June 2018  
The Actuary - June 2018