The Actuary February 2015

FEBRUARY 2015 theactuary.com

Interview: Andrew Duguid

The magazine of the actuarial profession

Lloyd’s of London – back from the brink of collapse

Energy Facing the global impact of falling oil prices

Solvency II How to prepare for ORSA

Book review Al Gore on facing The Future The Actuary

Electronic surveillance Redirecting human expertise on Solvency II reporting

February 2015

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23/01/2015 14:10

Appointments

What’s underneath?

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

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THE ACTUARY • May 2013 www.theactuary.com

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FEBRUARY 2015

Contents

16

26

“Investing in making the algorithms reliable and fit for purpose prior to the main production process will go a long way towards reducing delays when the model is run”

30

UP FRONT 9

SIAS events

10 IFoA news 14 People/society news 32 SIAS calendar

FEATURES

AT THE BACK

16 Interview: Andrew Duguid

33 Book review

Andrew Duguid talks to Gemma Gregson and Helen Lau about the near collapse of Lloyd’s of London and putting actuaries on the map

20 Environment: Falling oil

OPINION 5

Editorial Kelvin Chamunorwa highlights the importance of adapting in a rapidly developing world

6

Letters An author’s right to reply, and the retirement funding conundrum

7

President’s comment After eight months at the helm, Nick Salter reflects on the careful planning involved in the running of the IFoA and the journey so far

8

Soapbox Actuaries can do most things they set their minds to, including running a coffee shop, says Darryl Boulton

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

COVER: CORBIS

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With prices down, Gail Tverberg asks how oil is likely to perform in the next few years and predicts the effects on the global economy

24 Solvency II: The final countdown Neil Cantle explains how to prepare for the Own Risk and Solvency Assessment part of the new regulatory regime

26 Technology: Automatic assistance Gabi Baumgartner and Tejas Nandurdikar share some advice to speed up the Solvency II process

30 Regulation: A mountain to climb Colin Ledlie outlines how the Financial Reporting Council’s UK Corporate Governance Code guidance is driven by cutting-edge thinking in enterprise risk management

The Future: Six Drivers of Global Change by Al Gore, reviewed by Tony Brooke-Taylor

34 Puzzles Try the latest cryptic crossword and Mensa puzzles plus solutions from the 12 days of Christmas quiz

37 Student Jessica Elkin muses on a lobster’s tendency to mate for life

38 Actuary of the future Jessica Stott of HamishWilson

ONLINE It’s a GAS in the Gulf With this year’s focus on the diversity of the actuarial profession in mind, Catherine Love Soper describes the launch of the Gulf Actuarial Society (GAS) in Dubai

Energy policy challenges in the UK and Switzerland Tracey Zalk reports from a one-day workshop ‘Implementing the energy future in a challenging (geo)political context’

WRITERS OF THE MONTH Gemma Gregson and Helen Lau each win a £25 book token for their interview with Andrew Duguid, courtesy of SIAS

February 2015 • THE ACTUARY www.theactuary.com

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26/01/2015 16:55

Appointments

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THE ACTUARY • May 2013 INS3143 www.theactuary.com

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Opinion Editorial theactuary.com

Publisher Redactive Media Group 17-18 Britton Street, London EC1M 5TP +44 (0)20 7880 6200 Publishing director Joanna Marsh Sub-editors Kathryn Manning Caroline Taylor News editor Vivienne Russell +44 (0)20 7324 2788 vivienne.russell@redactive.co.uk News reporter Judith Ugwumadu +44 (0)20 7324 2794 judith@redactive.co.uk Editorial assistant Tania Forrester tania.forrester@redactive.co.uk Sales manager James Condley +44 (0)20 7324 2750 james.condley@redactive.co.uk Display sales executive Vlad Harmanescu +44 (0)20 7324 2726 vlad@redactive.co.uk Senior recruitment sales executive Emmanuel Nettey +44 (0)20 7880 6234 emmanuel.nettey@redactive.co.uk

editor@theactuary.com

Internet The Actuary: www.theactuary.com Staple Inn Actuarial Society: www.sias.org.uk Institute and Faculty of Actuaries: www.actuaries.org.uk Managing editor Sharon Maguire +44 (0)20 7880 6246 sharon.maguire@redactive.co.uk Editor Kelvin Chamunorwa editor@theactuary.com Features editors Contact: features@theactuary.com Jeremy Lee, pensions, investment, ERM, banking

Kelvin Chamunorwa addresses the importance of adapting in a rapidly developing world

Richard Purcell, life, health and care Richard Schneider, life, Solvency II, mortality/longevity, modelling and software Helen Lau, GI, reinsurance, environment, careers Gemma Gregson, pensions, GI People/society news editor Yvonne Wan social@theactuary.com Student page editor Jessica Elkin student@theactuary.com Arts page arts@theactuary.com

Senior designer Gene Cornelius

IFoA news editor Alison Jiggins +44 (0)20 7632 2172 alison.jiggins@actuaries.org.uk

Picture editor Akin Falope

SIAS representative Mark Gorman

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

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

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Europe: £125 per annum, rest of the world: £150 per annum. Contact: Alison Jiggins, The Institute and Faculty of Actuaries, 7th floor, Holborn Gate, 326-330 High Holborn, London WC1V 7PP. T +44 (0)20 7632 2100 E alison.jiggins@actuaries. org.uk. Students on actuarial science courses may join and they will receive The Actuary as part of their membership. Apply to: Membership Department, The Institute and Faculty of Actuaries, Maclaurin House, 18 Dublin Street, Edinburgh EH1 3PP. T +44 (0)131 240 1325 E membership@actuaries.org.uk Changes of address should inform the membership department as above.

For delivery queries, contact: Rachel Young E rachel.young@redactive.co.uk Published by the Staple Inn Actuarial Society The editor, The Institute and Faculty of Actuaries and Staple Inn Actuarial Society are not responsible for the opinions put forward in The Actuary. No part of this publication may be reproduced, stored or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the copyright owners. While every effort is made to ensure the accuracy of the content, the publisher and its contributors accept no responsibility for any material contained herein.

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The current pace of technological change is profound. In recent years this has largely been driven by the internet, which has become ubiquitous in our daily lives.

The advent of digital professions led LinkedIn to carry out a survey in 2013 of parents’ awareness of different careers. User interface designers and data scientists were among the top three professionals whose work was most misunderstood, and so were actuaries. When asked what an actuary was, some of the responses were amusing: “It’s to do with birds or numbers” and, “that guy from Along Came Polly”.

A recent development that will undoubtedly affect actuaries’ work is driverless cars – perhaps the most significant innovation on our roads since the internal combustion engine. Since last month, trials of driverless cars have been under way in four cities in the UK, and they could become part of our daily lives as soon as 10 years from now. As a large element of motor insurance pricing is currently determined by rating factors associated with the driver, a fresh approach to insurance will be required.

Some readers will recall the near collapse of Lloyd’s of London back in the 1990s, and the creativity and adjustment that was required to recover from it. Gemma Gregson and Helen Lau interview Andrew Duguid, who gives a fascinating insider’s view of events at Lloyd’s during that time. Duguid discusses the role actuaries played in the recovery and the lessons learned (p16).

Returning to the present, Gabi Baumgartner and Tejas Nandurdikar discuss the benefits and pitfalls of automating the production of financial statements under Solvency II, in light of increased time pressures (p26).

As the need for human intervention reduces, there will continue to be a lot of change in the way we live and work. It is imperative that we continue to adapt as we extend our influence as a profession.

What are your views on the issues raised in The Actuary this month? If you remain sceptical about all this technology, I still accept letters in the post.

“It is imperative that we continue to adapt as we extend our influence as a profession”

Kelvin Chamunorwa Editor

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February 2015 • THE ACTUARY 5 www.theactuary.com

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Opinion Letters to the editor editor@theactuary.com

An author’s critique

Have your say online

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

To fund, or not to fund?

Icki Iqbal says: “People in the UK have expectations of a retired standard of living that the nation’s resources cannot provide.” (Emphasis added.) He also says: “The UK has an expectation of a standard of living that its resources cannot deliver.” (The Actuary, November 2014 bit.ly/15DKZLK) It would be easier to respond if we knew which of these radically different propositions was actually being offered; the first seems more within our remit. Both, in my opinion, reflect indefensible priorities.

Is it too optimistic to expect society to offer as decent a basic standard of living as possible, to all its members?

We are told that: “(A) holistic approach would be to assume that each cohort should take out no more than it has put in.” That may be essential to avoid trouble if the music stops in a private retirement plan, but it is elementary that it is not so in a public plan where the music is not going to stop (more precisely, if it does we will have far more to worry about than benefits, so we can proceed on that assumption). In public plans, the effect of creating a benefit obligation today for people who have not “put in” can be, and is, passed from generation to generation. Obviously, if we end up with less than an adequate long-term flow of contributions reflecting population growth, inflation, economic conditions etc, we are heading for trouble. So let’s make sure the inflow is adequate over the long term. That is what we are paid for!

Clearly, there is a serious risk if benefits earned are unfunded at the point where a private plan folds: those benefits will be lost, at least in part. However, we do a serious disservice to the public if we preach that public plan benefits should be funded in the same way. Indeed, we fail in our duty if we do not draw attention to a major risk of pre-funding public plans: the creation of a vast pool of investment capital slopping around the markets under the overall control of government.

We should also point out that even if public benefits are sufficiently pre-funded, that pre-funding is likely to vaporise in the event of an economic disaster. The one time we are likely to need it, it will not be there.

Brian Jones 28 November

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

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I am always amused when book reviewers criticise a book on the grounds that it is not the book they would have written themselves. Matthew Edwards has invented a new variant of this, describing my book, The Improbability Principle, as belonging to the genre of ‘smarter thinking’ books, and then criticising it on the grounds that it does not really do this (The Actuary, December 2014, bit.ly/1Cm24G0). In fact, I regard the book as belonging to the ‘popular science’ genre – which is why Scientific American chose to reprint several pages of the book and why New Scientist chose it as one of their 10 ‘2014 crop for lovers of good books and fine ideas’.

Edwards remarks that my explanations ‘are, understandably, aimed at those with little mathematical knowledge. Most readers of The Actuary will find this assumed starting point irritatingly low’. Why should readers be irritated by this assumed starting point if they regard the book as not aimed at them? You might as well say that most readers of The Actuary would find the Paddington Bear books irritatingly simplistic.

Still, putting Edwards’ two perspectives of smarter thinking and irritatingly low together, readers of The Actuary might be interested in a New Scientist review of the book, which described it as ‘a superlative introduction to critical thinking, accessible to everybody, regardless of mathematical ability’.

Incidentally, Edwards’ description of the law of inevitability is incomplete – it only applies if all of the lottery tickets have been sold.

Professor David Hand 22 December

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

The deadline for receiving letters for the March issue is 17 February 2015.

THE ACTUARY • February 2015 www.theactuary.com

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Opinion President’s comment

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

NICK SALTER

The view from the bridge I’ve always wondered what it must be like to be the captain of one of those massive container ships sailing the high seas and what impact those captains have on the voyages they make.

There must be months on end where, with the ship having all mod cons and facilities, all you have to worry about is whether it is on the right course, all the cargo is secure and if the destination ports are ready for your impending arrival. Time must pass slowly.

News of the CSCL Globe, the world’s largest container ship, arriving in Felixstowe last month therefore caught my attention.

With its cargo of 19,000 containers, housing a diverse mix of goods and materials to meet UK consumer market demands, the 184,000-tonne ship had travelled for a month from China at the steady and somewhat sedate speed of 19 knots (around 22 mph – even slower than I can cycle).

What stood out to me was that this story wasn’t just about a large ship, but the planning that went into its journey. The arrival of vessels like the CSCL Globe has taken years of preparation by the Felixstowe Port Authority.

Such efforts and investment have resulted in the UK becoming capable of receiving more mega-container ships in the future and therefore, as a trade destination, remaining relevant to the ever-changing scale of the shipping business.

Voyage of discovery So why, as your president, am I so interested in container ships?

I’ve always had a bit of an interest in matters maritime ever since I left school and worked my passage on a cargo ship to South Africa prior to going to university. However, the serious point is that there are many similarities between the CSCL Globe and the IFoA. The IFoA’s journey is clearly mapped out (in the corporate plan and strategy document). It facilitates the movement of its valuable cargo (in our case, our members) to the four corners of the world, ensuring that destinations are prepared and capable of receiving and valuing it.

There may be a need to enter waters that have never been entered before and that

After eight months at the helm of the IFoA, Nick Salter reflects on the careful planning involved and the journey so far takes planning too. All this requires excellent preparation, execution and oversight. My time as president has demonstrated to me how well the IFoA does these things.

Staying on course As I reflect back on the past eight months, I feel I have had my hand on the ship’s wheel, helping to guide it along its journey, on which I’ve tried to put my mark.

Like the captain of the container ship, as president you rarely have to make radical course corrections, a testament to those who have captained the ship before you and helped map out the route ahead, as well as those who have helped mentor you on your way to the helm.

However, you do hope that the little nudge you gave the wheel has had an impact.

As I said in my presidential address, diversity is something that the profession needs to embrace for the whole journey that we are on, not just during my presidency.

I know that the effects and benefits of my gentle nudge are not going to be felt properly until much further along the line.

However, I am reassured to see that small yet significant steps have already been made.

If you take the captain’s bridge for example, we now have a more diverse group of individuals on council than ever before, better reflecting the composition of our membership and where they are located.

And we are taking steps to consider areas of work (or uncharted waters, perhaps) where actuaries have not yet had much impact but could genuinely make a difference.

Time travel Unlike the voyage of the container ship, my time as president is flying by and, I was honoured recently to receive, on behalf of the IFoA, our very own clock.

It was donated to us by the late Geoffrey Heywood, who was a past president of the Institute and senior partner of Duncan C Fraser, the first firm that I joined.

Journeys pass but time doesn’t stand still, and GH’s clock will continually remind me of that as it takes pride of place at Staple Inn. a

“We are taking steps to consider areas of work (uncharted waters, perhaps) where actuaries have not yet had much impact”

February 2015 • THE ACTUARY www.theactuary.com

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Opinion Soapbox

DARRYL BOULTON

Wake up and smell the coffee Who am I to comment? I am only an actuary…

Such self-deprecating remarks not only feature in my ‘top irritating comments’ list but also contribute to the continued blinkered perception that we seem to almost encourage of our noble profession.

Those who have heard of actuaries recognise we have specialist skills but invariably assume we are niche technical specialists, totally incapable of doing anything other than big sums. Perhaps that is what many of us believe – and heaven forbid we have to manage people who think this way. As a profession, I do sometimes despair at our lack of self-confidence.

So, let’s start easy. Could you set up and run a coffee shop for example?

What makes for a good coffee shop? Off the top of my head, I would say: Good coffee, good mugs, nice cakes, wifi, friendly and efficient staff, a nice ambience and a good location. Undoubtedly there is more to it, but that’s a reasonable start.

Before I launch this business I want some idea of how much profit it could make. Will it be a worthwhile investment? And this is where our actuarial training gives us a massive advantage over the typical small coffee-shop owner. You can set up a relatively simple spreadsheet allowing for costs, income and, of course, cash flow. Recall from your finance and financial reporting (CT2) exam that poor cash flow ruins more businesses than a lack of ultimate profit (and that perhaps tells you something about banks, but that is a rant for another day).

Costs and cash flows Again, off the top of my head, I need a ‘whizzo’ coffee machine, I will have to pay rent, insurance, staff costs, buy mugs, replace mugs and so on. I can amortise the cost of the coffee machine (but beware the cash flow) and so on.

Soon you will realise there are more fixed costs than variable costs, so it is all about knocking out as many mugs of coffee as you can sell. I have it on good authority the unit cost of a coffee is around 10p, but the market will bear about £2.50 a mug – who is the mug I wonder?

With your spreadsheet skills you can very easily monitor the progress of your business.

You can see which day is busy, at what times,

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Actuaries can do anything they put their minds, and considerable skills, towards, says Darryl Boulton and which cakes sell best so you can refine your ordering to minimise waste and maximise profit.

I suggest that most coffee shop owners only scratch the surface when it comes to analysing their business, and I confidently claim that the average actuary could run a coffee shop better than the average current incumbent.

you get a bunch of whizzo actuaries to factor in all the risks and expected cash flows. This is like running a shop or other business, but rather more complicated – and you are very good at it.

So, if you can ensure an insurance company is run effectively, you should be confident that you can turn your hand to many things, especially where it is simply a matter of assessing familiar factors.

Other businesses What does a shopkeeper do? They sell things for more than they buy them for, as they need to cover similar costs to our coffee shop owner above.

How many independent shopkeepers use detailed spreadsheets?

Surprisingly few, so you could do better.

And more generally, what does any business do? It provides a service for which it charges, and if it is a viable business it will charge more than it incurs in costs. And, of course, a spreadsheet monitoring and forecasting cash flows will add massive value.

And so, back on home turf. An insurance company sells policies that, on average, should take in more money than is paid out.

How does this work? Well you know that one,

Confidence Let us put aside social skills for now. I suspect you may still not be confident that you can do things other than insurance. But you should be. The skill set actuaries build up, through both the exam process and work experience, equips us with analytical skills that are extremely transferable, and it is about time we starting blowing our trumpets louder.

I personally have had to remove my actuarial qualifications from my CV to be taken seriously for a management role.

That is a shocking state of affairs.

“If you can ensure an insurance company is run effectively, you should be confident that you can turn your hand to many things”

Darryl Boulton is an independent actuarial consultant. Much of his recent work has involved advising businesses allegedly mis-sold interest rate swaps by banks

THE ACTUARY • February 2015 www.theactuary.com

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THURSDAY 19 FEBRUARY

SOCIAL EVENT

SIAS salsa night

Come and show us your moves at the SIAS salsa night.

Ticket prices include a 45-minute salsa class followed by a South-American-inspired meal.

18:30 Bar Salsa, 96 Charing Cross Road, London WC2H 0JG

Member tickets £8 Non-member tickets £12

Closest Tube: Tottenham Court Road

Please see www.sias.org.uk for further details and ticket availability.

TUESDAY 3 MARCH

Presentation on a Bank of England study: ‘Procyclicality and structural trends in investment allocation by insurance companies and pension funds’ 17:30 Staple Inn Hall Ashok Gupta, deputy chair, Bank of England Working Party

PROGRAMME EVENT

We are all very familiar with the mechanics of long-term financial institutions – in particular, pension funds and life companies. But how well do we appreciate the implication of our management actions on the wider economy and, for example, on the ability of these sectors to support long-term investment?

A two-year study carried out by the Bank of England on investment allocation and procyclicality of long-term sectors has uncovered some disturbing findings and significant conclusions. The findings will be described along with personal insights based on the analysis.

Refreshments will be served from 17:30 and the lecture will start promptly at 18:00. There is no need to register in advance for this meeting, and non-members are welcome. There will also be live tweeting available via #SIASMar15 during the talk – please do get involved with any comments and questions for the speakers.

THURSDAY 19 MARCH

SIAS poker tournament Tickets go on sale 2 March 2015

SOCIAL EVENT

Look out for further details and ticket sales for the poker tournament.

Places are offered on a first-come first-served basis, so get in early as we are expecting a full house!

Please see www.sias.org.uk for further details and ticket availability.

DATES FOR YOUR DIARY

SIAS events 2015 Calendar 2015

alendar 2015

January

Mon Tue Wed Thu 1 5 6 7 8 12 13 14 15 19 20 21 22 26 27 28 29

February

Fri 2 9 16 23 30

Sat 3 10 17 24 31

Sun 4 11 18 25

Mon Tue Wed Thu 29 January: Pub quiz Test your wits against your SIAS peers

2 9 16 23

3 10 17 24

4 11 18 25

5 12 19 26

Fri

Sat

6 13 20 27

7 14 21 28

Sun 1 8 15 22

March

Mon Tue Wed Thu 2 9 16 23 30

3 10 17 24 31

4 11 18 25

5 12 19 26

Sat

6 13 20 27

7 14 21 28

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

ISTOCK / SHUTTERSTOCK

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Fi

19 February: Salsa night A chance to strut your stuff!

April

Fri

Sun 1 8 15 22 29

19 March: Poker tournament You have to be 'all in' for for this event!

Mon Tue Wed Thu 1 2 6 7 8 9 13 14 15 16 20 21 22 23 27 28 29 30

Fri 3 10 17 24

Sat Sun 4 5 11 12 18 19 25 26

20 April: Exam session Just study time this month. Good luck!

May

Mon Tue Wed Thu

For a calendar of forthcoming SIAS events, please go to p32

June

S

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

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

February 2015 • THE ACTUARY www.theactuary.com

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26/01/2015 16:59

News IFoA NEWS UPDATES FROM THE ACTUARIAL PROFESSION

Upfront Opinion CEO’s comment Derek Cribb outlines the vital role of the IFoA’s thriving actuarial societies

Regional network ‘lifeblood’ of IFoA Derek Cribb is the chief executive of the Institute and Faculty of Actuaries

active network of regional societies and it is energising to see that this network is thriving and growing. This network plays a vital role for the IFoA and its members by helping to ensure that appropriate continuing professional development (CPD) and networking opportunities are available, alongside serving an important social function for local actuarial communities. These societies are a crucial touch point for the IFoA. They help us to remain connected to our members, providing a conduit for us to hear member views and listen to their concerns. They also provide a hub for volunteer recruitment, which helps to keep our volunteer network diverse and relevant.

Over the past year, I have been a guest at a number of our societies, where I have been really impressed with the commitment and enthusiasm of those I met. I am looking forward to visiting more over the coming months to share and update members on the IFoA’s strategic direction and, more importantly, to get direct feedback on what the IFoA could do to enhance our member offering.

When we developed the IFoA’s strategy in 2011 we were keen to focus on the evolving needs of our members, wherever they were based. I was told very recently by a member of one regional society that, about four years ago, they nearly gave up as they could not attract speakers. Now, with volunteers and the dedicated IFoA team working in partnership, it is a vibrant society with a pipeline of speakers far into the future. The IFoA offers many types of support to regional societies, including presentations from volunteers and IFoA staff, a regional society newsletter and dedicated webpages on the IFoA website. So, if you are not a member of your local society, why not get involved? And if there is no regional society in your area, why not set one up? We would be delighted to provide you with assistance in doing so.

If you are interested in getting involved in regional society activity, please email regions manager Tess Joyce or visit the regional actuarial activity area of our website. tess.joyce@actuaries.org.uk www.actuaries.org.uk/members/pages/ regional-actuarial-activity

DEREK CRIBB

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The UK has always enjoyed an

Library donation boosts IFoA’s historic collection The IFoA Library gratefully acknowledges a kind donation to its historical collections. In September, Stuart Southall FIA (pictured) generously offered his purchase of an Italian decree of 1817 that outlines retirement pension benefits for employees of the ducal court of Parma. What marks out this Italian occupational pension scheme is a tabled scale of benefits linked to the number of years an employee had worked for the Duchess of Parma. In Britain, civil servants began from 1810 to contribute a percentage of salary for a future pension, and an Act of 1834 showed determination of the level of contribution from their salary and service years to achieve an expected benefit.

The IFoA Library still adds each year to its historic collections, based on the texts the institute originally received from founding members to support student learning. It now buys target works of pioneering advances in probability theory, demography and financial mathematics as they appear on the market.

With valued support from member advisers who have published works on actuarial history, the library also keenly seeks out evidence of early innovative forms of insurance and deferred financial benefits. Southall hopes his donation can be an encouragement to others to take interest in the historic holdings of the IFoA, as they offer a resource of interesting historical precedent to illustrate presentations of new and modern advances today.

Enquiries: libraries@actuaries.org.uk

THE ACTUARY • February 2015 www.theactuary.com

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IFoA appoints new lay chair for Research and Thought Leadership The IFoA is pleased to announce the appointment of Professor Mark Cross (pictured right) as chair of its Research and Thought Leadership Committee (RTLC). This followed a very competitive recruitment process that attracted high-quality candidates from a variety of disciplines around the world.

The RTLC was established earlier this year to support the profession’s objective of advancing all matters relevant to actuarial science. Its key focus is to ensure that gaps in the IFoA’s research are addressed and that this research is of a high quality and widely disseminated.

Cross is currently research professor of computational modelling at Swansea University’s School of Engineering. His experience of ensuring delivery of multidisciplinary research, as well as successfully bringing together academia and industry in research initiatives, will bring great benefits to the IFoA’s own research agenda.

Immediate past president David Hare, who has been acting as interim chair of the RTLC, said: “We are delighted to have appointed someone of Mark Cross’s calibre to this exciting and important role within the IFoA. He will be able to bring an external perspective at a time when actuarial research must remain relevant to ensure the long-term sustainability of the profession.”

Commenting on his appointment, Cross said: “It is a privilege to work with the IFoA community, and I look forward to bringing to the committee my distinctive strategic and practical experience in industry/profession- focused research from outside the actuarial world. My prime objective here is simple: to help the IFoA community formulate a coherent set of processes, themes and programmes to identify and deliver on the key research challenges now and into the future.”

AS TM1 guidance updated The Financial Reporting Council published a revised version of Actuarial Standard Technical Memorandum 1 in December 2014. Update 33 of the IFoA’s Professional Standards Directory, issued on 9 January, gives details of the changes and a link to the amended memorandum.

To view the update, visit bit.ly/1IwryCi

Monica Allanach Monica Allanach was a much respected member of the actuarial community. She was committed and strong willed, especially in her support and representation of women in the profession and as the first female member of the Institute of Actuaries’ council in 1968.

She recognised the need in the 1950s for support networks and initiated informal ways for female fellows and students to meet. She was technically exceptionally competent, with her work becoming required reading for students studying the FIA qualification.

She had an unfailing passion for her profession and always worked towards promoting it and those within it. She worked for Prudential UK & Europe for the majority of her career, becoming the first woman to reach management level; always acting with integrity, and making prudent decisions at every turn.

A full obituary, written by Derek Fellows, can be viewed at: bit.ly/1xoZbh7 See below for further information on nominations for the lecture.

The Institute and Faculty of Actuaries and Prudential UK & Europe invite nominations for the Monica Allanach Lecture Monica Allanach, throughout her lifetime, particularly women, through her commitment and passion for her profession. Monica was a trailblazer and sought to change the status quo while inspiring others to do the same.

To recognise her achievement and those who are like her, the IFoA and Prudential UK & Europe would like to invite nominations for a lecture in her name; this lecture will take place

at Staple Inn Hall in the summer of 2015.

Please send nominations of those actuaries who have inspired you. Who, like Monica, could present a lecture that could inspire others.

Please send nominations to: memoria.lewis@actuaries.org.uk The closing date for nominations is: Monday 16 March

www.actuaries.org.uk

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News IFoA NEWS UPDATES FROM THE IFOA

2014/15 CPD scheme: your requirements As we are now over halfway through the 2014/15 continuing professional development (CPD) reporting year, we thought it might be useful to remind you of your obligations under the 2014/15 CPD scheme, applying to all members.

Below is a summary of the requirements for each category. If you have any questions about the impact of the new arrangements or what they mean for you, please visit the CPD pages of our website or email the membership team.

Visit the IFoA CPD pages at: bit.ly/1CknQba Email cpd_feedback@actuaries.org.uk Practising certificate holders – Category 1 ● At least 30 hours of CPD ● 20 hours must relate to technical learning ● 10 of the technical hours should be gained at external events ● Two hours of Stage 3 professional skills training; this counts towards your overall CPD requirement ● Must record a learning outcome for each CPD activity listed in your online record

Fully regulated Fellows and Associates – Category 2 ● At least 15 hours of CPD ● Five hours of your CPD must be obtained at external events ● Stage 2 or 3 of professional skills training, as relevant; this counts towards your overall CPD requirement Partially regulated Fellows and Associates – Category 3 ● Must comply with the CPD requirements stipulated by your primary regulator ● Must also complete either Stage 2 or 3 of professional skills training, as relevant Certified Actuarial Analyst – Category 4 ● At least 15 hours of CPD ● Five hours of your CPD must be obtained at external events ● Two hours must contribute to your understanding of ethical behaviours in relation to your role

Student member – Category 5 ● No technical skills requirement ● Must complete Stage 1, 2 or 3 of professional skills training, as relevant Student Actuarial Analyst – Category 6 ● No technical skills requirement ● Must complete Stage 1 professional skills training by the end of your first CPD year Retired member – Category 7 ● If you meet the requirements for this category, you can apply to be classified as retired ● No CPD requirements unless you undertake unpaid work that relies on your actuarial training and experience, in the widest interpretation ● Eligible to pay the reduced subscription rate Honorary Fellows and affiliates – Category 8 ● No CPD requirements

NEDs on a mission to attract actuaries

IFoA updates Pakistan Society of Actuaries conference on UK developments In November, the Pakistan Society of Actuaries (PSOA) held a conference entitled International Issues, Trends and Professionalism. Speakers included Dr Dermot Grenham of the UK’s Government Actuary’s Department, representing the IFoA, and PSOA members.

Samee ul Hassan provided an overview of the new retirement paradigm in Pakistan and the implications of increasing life expectancy; Mohammed Ali Ahmed discussed how insurance will have to evolve to keep up with IT developments, including artificial intelligence; and Muhammad Hussain Boricha gave a summary of the regulatory environment for health insurance, including microinsurance, comparing Pakistan with India and Malaysia.

Grenham gave a summary of developments

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in the UK in social security, pensions and insurance. He also ran an interactive session on professionalism, using IFoA case studies.

Before the conference, Grenham and PSOA president Nauman Cheema gave a presentation to a group of 100 students interested in actuarial careers. Cheema pointed out the challenges they would face, while Grenham outlined the IFoA’s Certified Actuarial Analyst qualification and presented a session on the actuarial control cycle. Grenham also attended a meeting with representatives from insurance companies, the PSOA council and the insurance regulator to discuss how the IFoA could support the development of the profession in Pakistan.

If you have links with Pakistan and could volunteer, email anna.clarke@actuaries.org.uk

The IFoA’s Non-Executive Director Member Interest Group has a mission: to get more actuaries into non-executive director (NED) roles in different companies and in different areas of business. Many meetings have been hosted with speakers from all parts of the NED world.

Experience of adhering to high ethical standards makes actuaries good candidates for NED positions. Actuarial skills are of obvious benefit in regulated roles but, with increasing focus on risk management, actuaries are equally able to serve as NEDs in commerce, the charitable sector and in industry. The business world needs to know we are keen and available.

A LinkedIn group has been created to reach out to more members of the profession to share their experience, so that other actuaries or those less experienced can link together for guidance and advice. The group is a great opportunity for those seeking their first non-executive position.

If have held a non-executive role, please join the group at http://linkd.in/1wcc1Pu and take part in the discussions.

Don’t forget to come along to our networking meetings. Most NED positions are filled by recommendations, so the more people you know, the better your chances of finding the position you want. Keep an eye on the IFoA events webpage for upcoming meetings or email jackie.thompson@actuaries.org.uk.

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EVENTS AND CONFERENCES and new products? Can we identify what customers really want and value today and tomorrow? Discuss the challenges of the protection London and Edinburgh market, what we can learn from the 08.15-09.30 Professional skills are essential from past and how to improve understanding of today’s market both a professional and personal development perspective. Suitable and consumer. If you are a practitioner within the life or health for actuaries across all practice areas, they also provide continuing practice areas, or work in product development, management or professional development (CPD). marketing then this seminar is not To book, visit bit.ly/1ygsF6f to be missed.

To book, visit bit.ly/1vTYAIF Pricing and product

Professional skills for experienced members 11 and 18 February

development workshop 12 February, London 09.00-17.00 Real investment in life products is declining; where are we going in product development and how can we as actuaries help design better

Pensions and the End Game 24 February, London 09.00-16.30 This is a must-attend seminar for all pensions actuaries who advise trustees and their employers. Hear

positive manner, and using motivational methods to ensure team members give their best performance. Communication is a Mastering the Art of vital skill that requires development Communication and training – something which was 31 March and 14 May validated and encouraged by the Edinburgh top 11 employers as a result of IFoA The IFoA has created a series of research and interviews. communication classes designed Challenge yourself and learn how to help actuaries explore and to present the best, most powerful develop key skills that are essential version of you in every situation. in today’s complex business world.

Now is the time to develop key These specialist classes aim to skills that are essential in today’s bring together from a variety of complex business world. disciplines practitioners who are The IFoA is offering a £100 interested in learning numerous discount when all four techniques, such as capturing the attention of an audience, developing Masterclasses are booked together. Reserve your place. their credibility, discovering how to To book, visit bit.ly/1uM9qjs use effective body language in a from industry experts and discuss potential future developments.

To book, visit bit.ly/1CkE1oW

Health and Care Conference 2015 Speaking this year:

6 - 8 May 2015, Grand Harbour Hotel, Southampton

Lord Robert Winston, doctor, scientist, politician and TV presenter

The Health and Care Conference is the leading market event for insurance practitioners with an interest in the health protection industry. The conference will take a fresh look at topical industry developments and outline the wide ranging implications that they will have on the critical illness, income protection, PMI and LTC markets.

Dr. Ros Altmann CBE, independent expert on consumer finance, pensions, retirement, care funding and economic policy Professor Paul Corrigan, former senior health policy adviser to Tony Blair Richard Winter, Member of the IFoA Professionalism Content Development Working Group Malcolm Slee, Chair of the Professional Content Development Working Group Edward Nelson, Senior Consultant EMEA at rogenSi Rhys Williams, Strategy Director

Following the success of the conference in 2014, we invite you to attend the next health and care conference to discover new approaches and attend a range of plenary sessions and workshops.

This event promises to deliver professional speakers, thoughtleaders and industry experts, who will provide diverse and wideranging perspectives on the control cycle, pricing, product design, monitoring experience, underwriting and claims management.

Whether you are a junior or senior insurer, reinsurer or consultant, attendance will provide you with an unbeatable platform for networking and knowledge sharing, ensuring that your learning experience as a delegate is fully optimised.

After dinner speaker: We are delighted to confirm John Sergeant, author, political broadcaster and journalist as after dinner speaker.

BOOK BEFORE 11 March to receive the early bird fee: http://bit.ly/healthandcare2015 Sponsorship and exhibition opportunities available. For more information contact waleed.soliman@actuaries.org.uk

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News People & Society

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

A colourful evening

By Rachel Evans

TW team towers over the world on Kilimanjaro

By Harriet Hayward Fifty Towers Watson associates, more than £90,000 raised for charity and the highest freestanding mountain in the world. Here’s a taste of what happened when we took on Kilimanjaro in October.

For many of us, training had consisted of chatting about the trip during the lunch hour, while attempting to treble North Face’s share price through panic buying – to say we weren’t prepared for what lay ahead of us was an understatement. Thankfully, our fundraising efforts had been more successful. Before we set off we’d raised approximately £50,000 for the Motor Neurone Disease Association (MNDA) between us.

Stage one went to plan; we all successfully negotiated our flights and arrived at the hotel in one piece. We then set to work familiarising ourselves with the local town and our fellow compatriots, while taking in the view. From then on it was downhill (or rather very sharply uphill), with members of the group feeling the strain of the intense walking schedule by the end of the second day. The guides and porters did a fantastic

Deaths John Christopher HERRICK died recently, aged 70. He became a Fellow in 1969.

Michael John PICKARD died recently, aged 75. He became a Fellow in 1964.

Dennis Frank GILLEY died recently, aged 92. He became a Fellow in 1950.

Kenneth George FORMAN died recently,

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aged 65. He became a Fellow in 1976.

Minoo Rustomji BATLIWALLA died recently, aged 83. He became a Fellow in 1962.

Peter Beasley ARMITAGE died recently, aged 90. He became a Fellow in 1956.

Dhirajkumar RATHOD died recently, aged 28. He became a student in 2010.

job making us as comfortable as possible, but there was no getting away from the plummeting temperature and the onset of altitude sickness for many. By day four we were 3,500m above sea level. This provided us all with a great view, but chronic headaches! Regardless of this, team spirit was strong as we approached our goal.

With summit night upon us, we set off at midnight, head torches at the ready, feeling positive. The final climb was by far the toughest thing many of us had ever done, both mentally and physically. We walked for between seven and nine hours through the night, to arrive at the summit just after sunrise.

An impressive 43 of us made it to the top, beating the 75% average completion rate considerably. More importantly, everyone made it back down the mountain on their own two feet.

A few months on, it has finally sunk in just what we achieved. To top it off, the final count on the fundraising hit almost £91,000, which has been donated to the wonderful team at MNDA, who have given us so much support over the past year too.

Honour for Bradley Westminster Council has awarded the title of ‘Honorary Alderman’ to Alan Bradley for his service to Westminster Council. Alan was elected as a Westminster City councillor on 4 May 1978. He retired in May 2014. Alan represented the Tachbrook ward from 2002 and prior to that the St George’s ward from 1978 to 2002. He also served as Lord Mayor in 1995-1996.

On Friday 21 December, SIAS held its flagship black-tie annual dinner event. More than 800 members and guests ‘painted the town red’ in the grounds of the Royal Artillery gardens.

The evening began in style with canapés and bubbles, followed by a fabulous three-course meal under the sparkling lights of the dining room. The night was packed with entertainment, with performances by circus acts, jugglers, magicians, burlesque dancers and, despite the tuxes and gowns, even some dodgems.

A charity raffle drawn during the evening raised almost £1,000 for our three nominated charities, Guide Dogs for the Blind, RNLI and Dementia UK, with prizes won ranging from bottles of vintage port to activity experiences and retro sweet hampers. The partying continued well into the early hours, with the hard core staggering to the after party at Amber bar. A great time was had, and we look forward to next year’s dinner already.

Early starter Terren Friend (B (BUPA) has sent in this picture of h son, Daniel, her a aged 16 months, reading The Actuary m magazine.

Is he our youngest reader?

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LIKE US ON FACEBOOK www.facebook.com/ TheActuaryMagazine

FOLLOW US ON TWITTER @TheActuaryMag @ActuaryEditor

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

It’s a GAS in the Gulf

By Catherine Love Soper The Gulf is an exciting place to work as an actuary; insurance markets are still in their infancy, meaning the growth potential is enormous, pension schemes are still open and populations are young.

With this year’s focus on the future diversity of the actuarial profession, the support we give to the 45% of IFoA members who are based abroad is a high-profile topic. So I was pleased to launch the Gulf Actuarial Society (GAS) with IFoA chief executive Derek Cribb last November in Dubai.

The new society establishes a community for actuaries who are working in the region, and its international membership comes from not just the six GCC states but also India, the UK, South Africa and beyond. Professional diversity and the future is a natural priority; the GAS believes the key lies in supporting today’s rising stars.

I was particularly delighted to come across one such star, Adeeba Al Tamimi (right). As well as being charismatic and intelligent, Adeeba is the first and only female Saudi

IFoA student and, before long, she could become the first female Saudi Fellow. This would be a distinct and fantastic achievement.

I asked Adeeba about her experiences and challenges, and she said the main one was still “the lack of awareness of this field” – something GAS hopes to address. She said, “I recall my first attempt to contact major insurance firms [in Saudi Arabia]. To my surprise, some representatives had never heard of the actuarial field.”

She also talked of encouraging more women to enter the profession: “It is a great initiative that the King Fahd University of Petroleum and Minerals offers an Actuarial Science degree, but it is a ‘male only’ university.

Introducing the course to female universities would encourage women to enter this field. [I] believe these developments will come. There are plenty of capable, hardworking women in Saudi Arabia who will excel in this profession as local opportunities become available.”

For details of GAS, go to:

bit.ly/1xwGSGO. For the full article, visit:

www.theactuary.co.uk

Black runs and raising funds

By Martin Miles (Master 2014-15) Just before Christmas, the Worshipful Company of Actuaries (WCA) had a very jolly carol service at St Lawrence Jewry Church next to the Guildhall. About 80 actuaries and friends then went on to supper at Armourer’s Hall, followed by more singing led by Peter and Sue Thompson and baritone Allan Arthur.

It was a fun evening and a great start to Christmas festivities.

The last big event for the WCA was the livery companies’ skiing competition in Morzine, France, on 23-24 January. There are a number of trophies to be won, including the Actuaries Cup in which times are age-adjusted by a simple formula we invented but which is deemed to be fiendishly opaque and suspicious by the other teams participating.

As the actuaries have written

the software to determine the results for all of the trophies, we do start each race with a bit of an advantage. We hope, therefore, to regain the trophy for the best court team, which we won last year in a tight finish, aided by a masterly giant slalom exhibition from president of the IFoA, Nick Salter.

While on the sporting theme, congratulations to Gary Anderson, who has been chosen as the actuary to take up the guaranteed place in the

2015 London Marathon granted to us. He will be raising money for the Company of Actuaries Charitable Trust and I hope many of you will support his sterling efforts.

If you are interested in joining the Livery Company, or just want to find out more about it, please email Adrian Waddingham at:

adrian.waddingham@ barnett-waddingham.co.uk or contact me at

martinwmiles@yahoo.co.uk Left to right: Nick Salter, Martin Miles and Fiona Morrison on the slopes

A networking opportunity for London students

By Cian Ó Críodáin The London Market Students’ Group, (LMSG) is a networking and informationsharing community of student actuaries who work in the London market.

Our goal is to expose students to new ideas and hot topics in the market, as well as giving them the chance to meet senior market figures and peers in other companies.

The LMSG is run by a five-member committee. The committee is currently chaired by Cian Ó Críodáin of XL Reinsurance and draws its other members from companies, brokers and consultancies.

Our main function is to organise a number of talks each year, with one taking place roughly every quarter. These talks are typically held in the function room of a local bar, with a drinks reception funded by the speaker’s firm or the Actuarial Recruitment Company.

The setting is relatively informal so as to encourage students to ask questions and to feel comfortable approaching the speaker after the talk. Previous speakers have included brokers, chief actuaries, chairs of general insurance working parties and others besides.

If you or someone you know would be interested in attending our events, please email Cian at: cian.ocriodain@xlgroup.com.

Do you know someone who deserves a charity award nomination?

Each year the Worshipful Company of Actuaries presents the Phiatus Award to an actuary who has made an impressive contribution to charity.

Nominations are now invited for the 2014 award and should be sent to the editor of The Actuary.

The award is not simply for fundraising.

Although we do want to hear about impressive fundraising efforts – we will recognise all forms of charitable work and activity. Send your nominations to:

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

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On my agenda features@theactuary.com

Back from the

brink Andrew Duguid talks to Gemma Gregson and Helen Lau about the near collapse of Lloyd’s, putting actuaries on the map and the importance of change and innovation

In the 1990s, Lloyd’s of London teetered on the edge of collapse. Insider Andrew Duguid tells the story in his book, On The Brink. It is a story of mismanaged liabilities, large losses, strong leadership and a creative recovery plan. He talks about the events that led to the crisis, the subsequent recovery and the lessons that were learned.

Can you tell us about your background?

I am a graduate of the London School of Economics and after that I did an MBA at Lancaster University. I worked in the advertising and marketing industry for a few years and then decided I didn’t want to do that all my life. So I joined the civil service in the Department of Trade and Industry where I had some exciting and interesting jobs, including three years at Number 10 Downing Street.

After 14 years working for the civil service, I got a phone call asking if I would be interested in working for Lloyd’s.

It was a lot more money and sounded quite interesting, so I took the job and came to Lloyd’s in 1986, at a time

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when the problems described in the book were not obvious.

When did the problems first come to light?

In 1991, Lloyd’s declared a loss for the first time for 20 years. Lloyd’s had an unusual structure because capital was not provided by shareholders, instead it came from private individuals known as ‘Names’. They traded with unlimited liability, meaning that everything they owned was at risk. When their syndicates started making losses, some Names found they had big bills to pay, as much as £1 million in some cases. This was a lot of money and a lot of the Names were not happy, so they decided to sue the agents who operated on their behalf.

Why were some syndicates making a loss?

The losses came from two main sources. The first was old policies written in the US which gave general liability protection. Claims on these policies arising from asbestosis

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On my agenda features@theactuary.com

and pollution clean-up mounted alarmingly. Some policies were written directly by Lloyd’s, others were reinsured by it.

In addition, certain syndicates at Lloyd’s had taken on all the old liabilities of others in return for a premium, which they invested in the hope of making a profit at a time when investment rates were high. When the claims related to asbestosis and pollution started escalating, the losses were especially concentrated on a couple of syndicates.

The second main problem was a phenomenon known as the ‘London Market Excess of Loss’ (LMX) spiral. Some syndicates took out excess of loss policies with other syndicates, who in turn took out reinsurance with others and so on. This left some syndicates ‘holding the baby’.

In the late 1980s, there were several catastrophe events such as the Piper Alpha disaster, the Exxon Valdez pollution, plus a couple of hurricanes that all created big claims which rippled around the system. Again, the losses ended up being concentrated on a handful of syndicates, owing to a lack of monitoring of aggregate exposure.

The losses in the five years from 1988 to 1992 amounted to £8 billion and these fell heavily on some Names more than others. From a total of 34,000 Names, around 10,000 had big problems, with 5,000 of these facing losses of more than £600,000.

How did Lloyd’s tackle the problem?

In 1992 a new chairman, Sir David Rowland, was brought in to help Lloyd’s find a way through the crisis. They also recruited a new CEO, Peter Middleton, who had previously been a diplomat. Middleton was an interesting character and, having had nothing to do with the events leading up to the crisis, he was just what was needed as he sympathised with the Names. Middleton left after three years and was replaced

by Ron Sandler, who took Lloyd’s through the recovery.

What were the main elements of the recovery plan?

There were three intertwining pillars of recovery. The first was a settlement offer to the Names. The final deal that was agreed involved £3.2 billion of debt written off, with losses faced by each individual capped at £100,000 so that the people with the biggest losses gained the most.

The settlement offer was made more palatable by the

“Up until that point, actuaries hadn’t really been used in non-life areas, but the work on Equitas changed that and really put actuaries on the map in the London market” 18

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second element of the recovery, which was the creation of a reinsurance vehicle called Equitas, allowing Names to resign. All the Lloyd’s liabilities up to 1992 were reinsured by Equitas, which paid out claims, managed the £15 billion of assets that were paid over and also claimed back reinsurance from other companies.

It did a great job under strong leadership. After 10 years of operation, Equitas was bought by Warren Buffett’s Berkshire Hathaway. This was an excellent outcome for Lloyd’s as there was always a fear that Equitas would run out of money.

All that became academic with Buffett, a billionaire, backing it. With a subsequent transfer of all remaining liabilities to a Berkshire Hathaway subsidiary, the slate was wiped clean for the Names and for Lloyd’s.

The final aspect was to bring in new, corporate capital.

This was possible because the existence of Equitas meant that new investors coming in were buying into a clean market and not taking on old problems.

What role did actuaries play in the recovery?

Actuaries were used to calculate how much money was needed by Equitas. The regulator needed to approve this new insurance company and a credible answer had to be provided. Tillinghast, the actuarial firm, had to sign off on it and the Government Actuary had to approve it too, so it involved a lot of actuarial input. Up until that point, actuaries hadn’t really been used in non-life areas, but the work on Equitas changed that and really put actuaries on the map in the London market.

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What inspired you to write the book now?

Having lived through the crisis, I’d always been conscious that some extraordinary events had happened and that it was a dramatic story. It was in the back of my mind that when I retired I might write about it.

One day I received a phone call from David Rowland, the chairman over the period, who was trying to get an academic to write a book about the experience. He asked me if I would help the academic find his way around some papers we had produced in 1997 when we had the idea of capturing knowledge about the crisis. Later the academic dropped out, and having become interested in the idea again, I volunteered to write it.

What do you hope people will take away from reading it?

The story is one of mistakes made and lessons learned.

Those lessons are wider than just technical insurance issues and can also be applied outside the insurance market.

It is about overcoming a big problem with successful leadership, combined with the knowledge of experts – actuaries, lawyers and management consultants – who integrated with the management team. Negotiation was also critical to the outcome, as was a leader on the side of the Names. He was key in selling the settlement deal to them.

How does the Lloyd’s crisis compare with the recent financial crisis?

With the LMX spiral, people didn’t fully understand what they were getting into and where the liabilities were ending up.

This is similar to the banking crisis and sub-prime mortgages where the products weren’t understood properly.

The lesson is to really know what you are doing when offering exotic contracts.

The government’s response to Lloyd’s differed from the banking crisis. While they were prepared to work with Lloyd’s and authorised Equitas, they didn’t get their chequebook out.

I think that was because while Lloyd’s was important to the economy, it didn’t have quite the importance and centrality to the economic system of the banking system.

How can Lloyd’s use the lessons in the book to help it face future challenges?

There is a quote by Darwin at the start of the book: “It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.” It is what the story is about in a sense, the need to keep changing, adapting and to stay flexible. The structure of Lloyd’s lends itself to that and is quite Darwinian in the way that the syndicates and managing agents compete with each other, with some falling by the wayside and others forging ahead.

The story is partly one of what happens without regulation. The challenge is to find a balance between regulation on one side, and innovation and entrepreneurialism pushing the boundaries on the other. a On The Brink: How a Crisis Transformed Lloyd’s of London

by Andrew Duguid, is published by Palgrave Macmillan.

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Environment Energy prices features@theactuary.com

With the price of oil down, Gail Tverberg asks how the commodity is likely to perform in the next few years and predicts the many likely effects on the energy market and the global economy

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SHUTTERSTOCK

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Why is the price of oil dropping so much, when we seem to be reaching the substance’s extraction limits? Is the price fall a sign that this stage is, in fact, still far away? Or is it very close at hand, but approaching surreptitiously?

Many people believe that these limits will appear as oil shortages and high prices. But perhaps low prices could also be a sign that we are nearing the end of viable extraction.

The issue could also be one of affordability.

In a networked economy, what we can afford to pay for oil is as important as the cost of extraction. And this is influenced both by income levels and debt levels. If we look at the data, there is no big surge of oil production in the second half of 2014 to explain the huge drop in price. Instead, there are several issues that have been adversely affecting the affordability of oil. ● Wages around the world have been stagnating, while the cost of oil extraction has continued to rise at about 10% per year. ● The US programme of quantitative easing (QE) was discontinued in October 2014, after a period of tapering. ● Until recently, China was on a programme of rapid infrastructure building and growth in debt to support this. Since May 2014, this has slowed substantially, and house prices there have been dropping.

In fact, if we look at the beginning and end

points for US QE, we can see a startling relationship. QE has the effect of lowering interest rates, especially on long-term debt.

It appears as if this is was what was needed to pump oil prices back up in late 2008.

The removal of US QE in late 2014 had the opposite effect: it let prices drop back down.

This effect was made more pronounced by stagnating wages around the world and China’s recent slowdown in debt growth. If I am correct about the nature of the drop in oil prices, we can expect to see a range of consequences during the next couple of years .

INCREASED DEBT DEFAULTS – particularly on debt associated with oil extraction from US shale formations and on US dollar denominated debt loaned to emerging markets. Loan defaults in China may become a problem as well, discouraging future investment there. European countries with debt problems, such as Greece, may reach crisis points.

RISING INTEREST RATES – starting first with subprime energy loans and emerging market loans. The US Federal Reserve may add to the problem by raising target interest rates as well.

One reason this might be done is to stop the rise in the US dollar relative to other currencies. If the rise is not stopped, dollardenominated loans from other countries will become increasingly difficult to repay.

INCREASED RECESSION. Increasing interest rates make the purchase of factories and goods such as homes and cars less affordable. At first, this effect may be offset by the impact of lower oil prices. Eventually, though, supply chains will be broken because interest rates will be so high that subprime borrowers and emerging market countries will not be able to afford to compete.

RISING UNEMPLOYMENT – because of cutbacks in oil production and increased recession.

Some oil companies, including North Sea

companies and US shale companies, may stop production altogether, adding to this problem.

DECREASED OIL SUPPLY – starting perhaps in late 2015. The timing is not certain because businesses are likely to continue extraction where wells are already in operation, since most costs have already been paid. Also, some firms have purchased price protection in the derivatives market.

DISRUPTIONS IN OIL EXPORTING COUNTRIES – such as Venezuela, Russia and Nigeria – may occur, because of low oil-related tax revenue as oil prices remain low. Some countries may experience overthrows of existing governments and a sharp drop in oil exports.

Some central governments may disband, as happened with the Soviet Union in 1991.

INABILITY TO RESTART THE OIL SUPPLY – even if prices should temporarily rise. The production of oil from US shale formations has been enabled by very low interest rates.

If there is a major round of debt defaults by the shale industry, interest rates are unlikely to fall back to previously low levels. Thus the new price will need to be higher than the $100 per barrel world price that enabled production recently. There will also be a lag in restarting production, meaning that high prices will need to be maintained for some time. This seems impossible without crashing the economies of oil importers.

February 2015 • THE ACTUARY www.theactuary.com

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Environment Energy prices features@theactuary.com

funds in order to generate a sufficiently large funding amount (about $1.2 trillion).

Figure 1: World oil supply price 140

Long-term economic contraction

Brent Oil price in $ per barrell; Supply in million barrels per day

120 100

End QE3

80 Oil price

60

Oil supply

40 20 Begin QE1

Source: Gail Tverberg OurFiniteWorld.com

Ja

n‘ 0 Ja 0 n‘ Ja 01 n‘ 0 Ja 2 n‘ 0 Ja 3 n‘ 04 Ja n‘ 0 Ja 5 n‘ 0 Ja 6 n‘ 0 Ja 7 n‘ 0 Ja 8 n‘ 09 Ja n‘ 10 Ja n‘ 1 Ja 1 n‘ 12 Ja n‘ 13 Ja n‘ 14

0

If we are really hitting affordability limits for oil, the situation cannot be expected to get better over time. Oil production is likely to start dropping and may never increase again.

Insurance companies, pension plans and banks all build their models on the assumption that the world economy will grow forever. If we are really hitting oil limits and these are leading to slow or negative growth, this will be a huge problem for financial institutions of all types. We can no longer expect stock prices to grow for the long term, and bonds are likely to have permanently high default rates. Banks may also fail because of this.

Climate change

“It will only be after some of the initial ‘dominoes’ fall that we will see what is really happening” DEFAULTS ON DERIVATIVES – because of sharp and long-lasting changes in oil prices, interest rates and currency relativities. Securitised debt may also be at risk of default.

CONTINUED LOW OIL PRICES – except for brief spikes, because of high interest rates, recession, and low ‘demand’ (really affordability) for oil.

be evident at first. It will only be after some of the initial ‘dominoes’ fall that we will see what is really happening. Initially, the economies of oil-importing countries may appear to be doing fairly well, thanks to low prices.

Other problems, that may not be evident from the previous list, include the following.

A spillover of bank problems DROP IN STOCK MARKET PRICES – reflecting the poor condition of the economy, as well as the impact of rising interest rates.

DROP IN MARKET VALUE OF BONDS – resulting in lower prices on bonds in current portfolios.

Bonds are also likely to experience higher default rates.

CHANGES IN INTERNATIONAL ASSOCIATIONS – such as the European Union and the International Monetary Fund, as it becomes clear that they are unable to deal with the problems at hand.

In total, we are eventually likely to experience a much worse situation than we did in the 2007-9 period, although this may not

22

If banks have large losses on derivatives and securitised debt, governments have indicated they no longer want to cover such risks.

Because of this, losses may be passed on to depositors through ‘bail-ins’ that ‘haircut’ bank deposits.

Some businesses (including insurance companies) may find that funds intended for the employee payroll or claim payments are gone, because they were taken through a bail-in to assist a failing bank.

One proposal is to protect banks with an additional layer of capital, in the form of debt that can be converted to stock if the bank gets into financial difficulty. These bonds, commonly referred to as cocos, would need to be sold to insurance companies and pension

In recent years, the major environmental concern has been climate change and the changes needed to prevent it. While this is an important issue, it is not the only issue. It is very easy to build models showing large increases in temperature over the long term by assuming fossil fuel use and the economy will both grow forever. If this assumption is wrong, then climate models need to be ‘toned down’ to match a more realistic growth scenario.

A risk that would seem to be at least equally as great is the possibility that the global financial system will stop functioning at some point, instead of growth continuing indefinitely. Resources that we get from the ground are subject to diminishing returns.

They don’t run out; they become more expensive to extract.

At some point, the cost of extraction of many commodities rises to a level that is higher than people can afford and the price falls below the cost of extraction. That seems to be where we are now. Actuaries would seem to have as many talents as anyone in fixing the financial system to prepare for this eventuality. a

GAIL TVERBERG FCAS

is a writer and speaker on energy issues and author of OurFiniteWorld.com

THE ACTUARY • February 2015 www.theactuary.com

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Solvency II ORSA features@theactuary.com

THE

FINAL COUNTDOWN 24

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In the remaining year before Solvency II comes into effect, Neil Cantle explains how to prepare for the Own Risk and Solvency Assessment part of the new regulatory regime

Many of the architects of Solvency II have described the Own Risk and Solvency Assessment (ORSA) as being at the heart of the new regulatory framework, and we are now in the final year of trial runs. Rooted in articles 41, 44, 45 and 246 of the directive, the ORSA provides the central context for managing risk.

This ‘risk’ is not that of failing to meet regulatory capital requirements (emphasised in the draft Level 3 guidance). Rather, it relates to the uncertainties associated with delivering company goals and ensuring they are understood and managed with appropriate resources, so the risk profile of the firm remains within the risk appetite set by the board.

Throughout the Solvency II design process, firms have asked for more guidance about what exactly was meant by the ORSA, but the consistent response has been “your own assessment of your own risks and the associated solvency requirements”. The draft Level 3 guidance offered 21 guidelines (see Table 1, right), which expand upon the expected substance of the ORSA process and its documentation.

Guideline 2 relates to a cultural change and makes it very clear that the board is to take a hands-on role in steering how the ORSA assessment should be carried out and in challenging the results of the process. This is different to the level of engagement needed for Internal Capital Assessment (ICA) exercises, and boards are concerned about how this should work in practice – particularly how they will go about providing suitable evidence for the regulator that this engagement or challenge has taken place and that its insights have been used in decision-making (guideline 13). Many firms are still wrestling with this, but those closest to meeting regulator expectations have thought carefully about recording specific ORSA output discussions and decisions that involve them.

ISTOCK

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NEIL CANTLE is a

principal and consulting actuary at Milliman

Assessing solvency needs Although the ORSA component is one of the few things all territories agreed upon during the development process, it is fair to say that not every country’s regulator positions ORSA in quite the same way. The UK regulator has it more within the strategic management of the business, whereas many other countries focus more on the solvency aspect of it and position it as a capital management tool. Arguably, the UK stance makes more sense from a risk management perspective, as firms would otherwise need to embed ORSA within a wider process that covers the risks for which capital is not a complete mitigant.

The assessment of solvency needs (guideline 7) requires firms to consider all of their material risks (not just the ones covered by the regulatory Solvency Capital Requirement (SCR) calculation) whether they are deemed quantifiable or not. Guideline 12 is also high on the regulator’s list, where you must explain how your risk profile differs from that in the SCR, even if you are only calculating it with the standard formula approach. This essentially asks you to describe why you think your risk management approach will be successful in maintaining your risk profile within appetite.

To assess continuous compliance (guideline 10) some firms have implemented daily solvency monitoring approaches, while others are relying more on indicators and extrapolations.

For quantifiable risks most firms are building on work previously done under the ICA regime, but many seem to be struggling to convincingly describe risks not covered by their ICA. This requirement to ‘explain’ a risk profile exposes the lack of maturity most firms have in areas like operational, strategic and reputational risk.

The focus on risks that produce financial uncertainty, and specifically those which might be absorbed with capital, has arguably led to a rather indirect way of thinking about risk in insurance. Most firms equate ‘risk’ with the capital needed to absorb it and often avoid the issue of understanding the actual risk itself, which can have consequences beyond immediate financial losses. This has led to wide-spread use of statistical approaches based on loss data and expert estimates which, by design, do not provide any rigorous linkage to other (non-capital) outcomes or directly back to risk management efforts. Scenario-based approaches are slightly more helpful but arguably leave firms open to the criticism that they have missed important scenarios, so the process for choosing them needs to be pretty robust. Developments in causal modelling have enabled firms to tackle this problem and show how the underlying dynamics of risks can

simultaneously lead to a range of outcomes.

The regulator has expressed some concern that the types of scenarios and stresses being considered are too focused on regulatory capital (rather than the amount of capital you think you need), concentrated too much on the risks covered by the SCR, and have been rather too simple. Scenario and stress testing methodologies have advanced considerably over the past few years, and a key theme is the need to consider multivariate conditions (as real life tends to combine events).

In most cases, the shortcoming in the methodology is in developing the scenarios in the first place – the models are quite capable of producing the results once you know what the scenario is. The draft guidance is clear that the assessment of risk includes deciding the extent to which non-capital mitigation techniques are used and consideration of the effectiveness of the system of governance in different circumstances. While it is useful to have capital model outputs help you decide whether a scenario is extreme or not, take care not to create a circular argument centred on the model – it is better to decide the right scenarios and then explore their dynamics including, but not limited to, capital consequences.

Looking forward One particularly important feature of ORSA is that companies are being asked to look ahead. It is not just an assessment of your current risk profile but rather a consideration of how it, and your ability to manage it, might evolve. There is a clear statement at the start of the draft Level 3 guidance that “supervisory authorities are expected to ensure that undertakings take a forward-looking view on the risks to which they

are exposed”. This is essential if the outputs from the process are going to inform business planning and strategic considerations.

Again, the technical challenge of projecting risks and associated solvency requirements is only part of the issue (firms tend to be adopting some variation of projecting risk drivers, a proxy model approach or full future calculation). The regulator has indicated it is expecting to see more realistic future scenarios and risk dynamics being discussed, and in particular some sense that the future is not always perfect. Constructing multivariate scenarios from a deep understanding of the dynamics driving your risk profile is therefore a core part of the ORSA (methods from the social sciences are a useful tool in this area).

In many respects, the key challenge that firms face is cultural, both in terms of what we think risk means and how the ORSA is regulated. For the former, firms need to think of risk as it pertains to achieving business goals, not just capital. This means widening their repertoire of risk management tools to go beyond capital modelling, embracing good disciplines around scenario development and creating models of business dynamics.

Developing better narratives will also help boards to engage and evidence their role clearly.

For the latter there needs to be further work this year, with industry and regulator actively engaging in dialogue about finding ways to focus on the quality of the ORSA process outcomes, and not reverting to a benchmarking of the inputs that go into the process.

The ORSA is undoubtedly going to be a crucial part of the new regime so it seems well worth taking the effort to make it work properly. a

Table 1 Draft Level 3 guidelines on the expected substance of the ORSA process and documentation For all firms

For all firms

For groups

1 Proportionality

8 Forward looking perspective of the overall solvency needs assessment

15 Scope of group ORSA

2 Role of AMSB (board)

9 Valuation and recognition bases of the overall solvency needs

16 Reporting to the supervisory authorities

3 Documentation

10 Continuous compliance with regulatory capital requirements

17 Group specificities on overall solvency needs

4 Policy for the ORSA

11 Continuous compliance with technical provisions

18 Group specificities on continuous compliance with regulatory capital requirements

5 Record of each ORSA

12 Deviations from assumptions underlying the SCR calculation

19 Specific requirements for a single ORSA document

6 Internal reporting on the ORSA

13 Link to strategic management process and decision-making framework

20 Internal model users

7 Assessment of the overall solvency needs

14 Frequency

21 Integration of related third-country insurance and reinsurance undertakings

February 2015 • THE ACTUARY www.theactuary.com

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Solvency II Technology features@theactuary.com

Automati assistance

Insurers continue to experience pressure to produce audit-quality financial statements to ever-tighter timescales, and Solvency II reporting will not be immune to this. Gabi Baumgartner and Tejas Nandurdikar share some advice to speed up the process As there is reasonable clarity on the reporting requirements under Solvency II, some firms have prepared by investing in technology, particularly parallel or cloud computing. This means that machine runtime can be reduced to a small proportion of the usual elapsed time of a reporting process.

The more challenging improvements in process involve people, particularly when judgment or problem-solving are involved.

These steps can be hard to predict, and this is compounded when the calculations and subject matter are complex, such as in the use of economic scenario generators to value guarantees embedded in insurance contracts.

However, a number of approaches exist that can mitigate the human bottlenecks in financial and solvency capital reporting.

Automate mechanical tasks Solvency II reporting processes, although in their relative infancy, may grow organically, with many manual adjustments and workarounds accumulating over the years.

Automating these processes – from data collection to results production, including test outcomes – removes process bottlenecks and reduces the scope for transcription errors.

In other cases, reliance on the timing of key inputs can be reduced via automated tasks. For example, it is worthwhile to implement the

26

THE ACTUARY • February 2015 www.theactuary.com

p26_028_feb_automation_FINAL•CT.indd 26

Smith-Wilson algorithm to derive the Solvency II yield curves directly from source data. This is in order to reduce dependency on EIOPA’s release of the yield curves.

Care is needed however, as automation can introduce new errors. Good practice is to incorporate informal checks – even if they are only on the ‘copy-pasting’ of data – and it is important to capture these intermediate checks in an automated process, too. Tremendous benefit can be achieved in gaining processing time through more computing power, as long as there are enough checks in place.

Be clear about tolerances Tolerance bands are commonly used to monitor the outcome of various modelled variables.

They are a useful way of tracking the outcome of variables against a specified range. For example, output yield curves and option prices should replicate market data within a given tolerance. Martingale tests for market consistency should not come out significantly different from unity. The tolerance bands can be derived in two different ways – statistical tolerances and accounting tolerances.

The statistical approach measures test results relative to the sampling error expected from a certain number of scenarios. If you run more scenarios, then the tolerance bands narrow.

If you run too few scenarios then the bands are

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ic

p26_028_feb_automation_FINAL•CT.indd 27

wide and the test lacks power, so that even if the model is wrong you may not detect it.

In contrast, accounting tolerances relate to the size of any error relative to what is being measured, and the impact of any error on decisions. The accounting materiality threshold will include many possible sources of error besides statistical sampling. Acceptable tolerances are not affected by the number of scenarios, although the ability to comply with the tolerances should improve as the scenario count increases.

It is good practice to derive tolerances based on the test purpose and the reporting framework, and to be clear as to why each

tolerance is needed. Market movements will often affect the volatility of the variables being modelled. With more volatile market conditions, more scenarios need to be run in order to maintain the same level of tolerance as under benign market conditions. The relevant tolerance – statistical or accounting – may vary according to the number of scenarios run, as Figure 1 (p28) shows.

Using inaccurate tolerance levels will often lead to a number of false red flags being raised following a model run. This adds to the processing time as models need to be re-run.

To minimise these delays, the tolerance levels must be accurately set. Instead of blindly using

26/01/2015 17:07

Solvency II Technology

“Investing in making the algorithms reliable and fit for purpose prior to the main production process will go a long way towards reducing delays when the model is run”

features@theactuary.com

last time’s levels or levels used by peers, the tolerance levels must be linked to accounting materiality and objective sampling errors.

It is worth noting that we expect a number of fails from statistical tests. This is due to the construction of the tolerance bands, also referred to as confidence intervals in statistical textbooks. Confidence intervals are typically stated at the 95% confidence level. In this case, we expect the true answer to be within the confidence intervals 95% of the time if we were to repeat the calculation with new samples multiple times. It is therefore important to consider whether the fail is likely to be the result of a sampling error or a genuine problem with the model itself.

Use reliable algorithms Complex algorithms are used in order to automate and industrialise the production of solvency capital numbers and financial reports. There are likely to be weak points in algorithms that need to be fully understood.

Most difficult algorithms involve optimisation or solving simultaneous equations. For example, economic scenarios used for the best-estimate liabilities under Solvency II may be calibrated to replicate interest rate and equity derivative prices. Solutions may or may not exist and may not be unique.

Algorithms may fail even when a solution exists, or may report false solutions. This is more of a problem with complicated models, and it is often best to split a model into pieces and only try to solve equations in one or two variables at a time. Running legacy algorithms year on year without appropriate testing increases the chance of the algorithm failing.

There has to be a robust testing environment in place before the model is run.

Investing in making the algorithms reliable

and fit for purpose prior to the main production process will go a long way towards reducing delays when the model is run.

Anticipate social and commercial constraints

Figure 1: Illustrating tolerance levels

There are often social and commercial constraints associated with reporting financial information. Such constraints need to be recognised and legitimised within the working environment. Computer code can be sped up, but it is a different matter to accelerate human judgments and negotiations. Reviewers will consider not only technical matters but also whether a particular result is likely to be acceptable from commercial or regulatory perspectives, sometimes with an eye on anticipated peer behaviour. This is a sensitive area that needs to be addressed in order to make the reporting process more transparent and, as a result, faster.

There will always be constraints that cannot be automated. Appropriate tolerance levels and triggers may help, however, in reducing human intervention. The aim is to direct human effort towards areas where expert judgment is required and to automate other areas of the process.

120%

If it still goes wrong Good preparation reduces the chance of something going awry. Some risk remains, however, and it is important to have a plan B. This must consider remote contingencies and practical and reasonable workarounds. Having

100% 80% 60%

a contingency framework agreed by management will help with reducing delays in responding if something goes wrong, recognising that in some, albeit extreme, circumstances delaying the publication of results may be the ‘least-bad’ option.

Overall, more investment is required upfront to set up systems capable of producing accurate and timely reports required by the business.

It is through such investment that problems may be anticipated early, and it may be possible to automate solutions for these. It should be clear where human judgment is needed, and rigorous testing should be carried out to make other areas of the process as independent as possible.

A realistic plan B can help reduce costs and delays in the event of something going wrong.

Raising and promptly addressing some specific and difficult questions such as the following will be helpful. ● Is the business comfortable with the way tolerances are set? ● When was the last time that tolerances were refreshed? ● Is the business driven by statistical or accounting considerations? ● Where does the business feel controls are too weak, or, indeed, too strong? ● Where are the known problems that everyone is postponing grasping? ● If the business had the budget, what is the first process improvement it would make?

These could certainly be a starting point towards an even faster Solvency II close. a

40% GABI BAUMGARTNER is a senior manager at Deloitte.

20% 0% Sample with 1,000 scenarios

Sample with 100 scenarios Expected Sample

28

She runs the team responsible for Deloitte’s economic scenario generator software.

TEJAS NANDURDIKAR is a senior consultant in Deloitte’s actuarial and advanced analytics practice.

Accounting Statistical

THE ACTUARY • February 2015 www.theactuary.com

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27/01/2015 09:31

Regulation Financial Reporting Council features@theactuary.com

A

MOUNT It’s Saturday morning and I’m about to head

Muchh llike M ik hhis i own hhill ill walking adventures, Colin Ledlie outlines how the Financial Reporting Council’s UK Corporate Governance Code guidance is driven by cutting-edge thinking in enterprise risk management

30

THE ACTUARY • February 2015 www.theactuary.com

p30_31_feb_Ledlie_FINAL•CT.indd 30

off to bag my 60th Munro. “Goodbye,” I say to my wife. “I should be home by eight in the evening. But, please note, hill walking is an eve inherently dangerous activity. Weather inh conditions can change suddenly, snow and ice con can be perilous, human error and poor judgment could lead to adverse outcomes. I can jud off ffer no guarantee that I will return safely.”

“OK, have a nice day,” she replies as I head out of the door.

That doesn’t sound like the right dialogue to be having about risk, but it is the type of conversation many UK listed companies have with their shareholders through the risk disclosures in their annual report and accounts. All too often, companies highlight the existence of a wide range of risks but give little indication of the current level of exposure, how material the risks are and what the company is doing to mitigate them.

If I were better at my personal risk disclosures, I might add that the weather forecast is positive, with an expectation of clear skies and warm temperatures. The hill I am climbing is straightforward and I will be well equipped with map, compass, adequate clothing for all conditions and a mobile phone to seek assistance in the unlikely event I need it.

The Financial Reporting Council (FRC) issued a major update to the UK Corporate Governance Code in September. They also updated the ‘Turnbull’ Guidance on Risk Management and Internal Control.

This substantially raises the bar on risk management and disclosure practices. If the old guidance was rooted in the accounting world of systems and controls, the new guidance is very much driven by cutting-edge thinking in enterprise risk management.

Out on the hills I have an extremely low risk appetite. This isn’t the case for everyone. I’ve just watched Scottish trials cyclist Danny MacAskill traversing the Cuillin Ridge on the Isle of Skye on a mountain bike (pictured left).

I’m a wimp as far as danger is concerned. If light is fading fast or I’m not comfortable with icy conditions underfoot I will turn back, even if 50 metres from the summit – I’ve done so several times. My behaviour is risk aware with a strong foundation in being prepared with the right equipment for the conditions and thinking through the risks I might be exposed to.

The new guidance from the FRC has greatly increased expectations for the disclosure of risk appetite and risk culture. Meaningful disclosures of risk appetite are extremely rare in current corporate disclosures. This is surprising given the level of insight that a clear and honest disclosure can give to investors.

Corporate culture Directors are being asked not just to determine the business culture they would like to see but also to ensure it is actually in place. They need to consider the behaviour that permeates their organisation and have the means to assess it.

It isn’t easy to quantify the level of risk associated with walking in the hills, but there are some statistics to work with. In Scotland, in 2012, there were 543 incidents that required mountain rescue support and 25 deaths. In an earlier study,

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COLIN LEDLIE is

chief executive of Argyle Chalmers

TAIN TO CLIMB Figure 1: Most important elements of the revised guidance 44 % 41 % 40 % 30 %

30 %

29 %

27 %

25 % 21 %

20 %

0%

Integration of risk Defining your Quantification Production of the Determining Aligning incentive Enhanced risk Definition and or bonus disclosure assessment of risk management with organisation's of risks longer-term viability material culture strategy, capital risk appetite statement uncertainties arrangements with requirements and business of the going risk management objectives planning process concern basis of accounting

the top causes of incidents were poor navigation (23%), bad planning (18%) and inadequate equipment (11%). How many people go out to the hills each year is difficult to tell. My guess is 1,500,000 individual mountain journeys. I’d love to hear other views on this, but on this basis that makes a death rate of around 0.002%. Another way to put the number of deaths into context is a comparison with road fatalities (172) and murders (62). The quantification is imperfect but I certainly find it helpful and it increases my understanding of the risk.

The level of quantification of risk in current corporate disclosures is minimal, but the FRC wants to see more. It will now require a longer-term statement of viability from companies. Stretching my analogy a little far, this is equivalent to asking me to disclose whether I will be an active hill walker throughout the next five years. The short answer is ‘yes’, but

the FRC expects a range of scenarios to be considered and for any qualifications or assumptions to be disclosed. Hence, I would need to disclose my expectation as having ongoing good health, not sustaining any serious injuries, and continuing to reside in Scotland.

So, how well prepared are companies for the new FRC regime? The IFoA recently conducted research with key decision makers in firms subject to the FRC code and guidance. The majority are starting their preparations but roughly a quarter of firms haven’t started or understood the implications of the guidance.

They need to take action now to get up to speed.

Many firms were underestimating the amount of work required to meet the new guidelines.

When asked what the most important aspects of the new guidance were (see figure 1, left), companies listed the following: ● integration of risk management with considerations of strategy, capital and business planning processes; ● defining risk appetite; ● quantification of risks; ● production of longer-term viability statement.

It is interesting that these are all areas where actuaries have substantial experience gained through preparations for Solvency II and development of their Own Risk and Solvency Assessments.

For most companies, the new guidance is already in force. For insurers, for the most part, the implementation challenges won’t be too onerous given their investment in risk management in recent years. However, there will be increased expectations on what is disclosed to the market, and getting these external disclosures right is never easy.

For businesses in other sectors, the work required could be substantial. Some 64% of firms surveyed indicated they were likely to require some external assistance. This must represent a great opportunity for actuaries to share their skills and experiences. a

February 2015 • THE ACTUARY 31 www.theactuary.com

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Calendar 2015 January

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21 May: Mystery event Look out for more information!

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17 July: Boat party Themed party on the Thames!

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30 September: Exam session Just study time this month. Good luck!

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6 13 20 27

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15 August: Sports tournament The biggest sports party of the year

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Sat 3 10 17 24 31

Sun 4 11 18 25

19 October: Jubilee talk The talk of the year

22 October: Pool tournament Cue competition

29 October: Welcome drinks New joiners welcome!

December

Sat

SIAS social events

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Fri 3 10 17 24

October

November

Mon Tue Wed Thu

A chance to strut your stuff!

August

September

Mon Tue Wed Thu 1 2 3 7 8 9 10 14 15 16 17 21 22 23 24 28 29 30

19 February: Salsa night

June

July

Mon Tue Wed 1 6 7 8 13 14 15 20 21 22 27 28 29

Sun 1 7 8 14 15 21 22 28

April

May

Mon Tue Wed Thu

Sat

6 13 20 27

March

Mon Tue Wed Thu

Fri

20 November: Annual dinner It is time to dress up and party!

SIAS programme events

Mon Tue Wed Thu 1 2 3 7 8 9 10 14 15 16 17 21 22 23 24 28 29 30 31

Bank holidays

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

Fri 4 11 18 25

Sat 5 12 19 26

Sun 6 13 20 27

Season's greetings and a happy new year – see you in 2016!

Exam period

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

THE ACTUARY • February 2015 www.theactuary.com

p32_feb_sias calendar_FINAL•CT.indd 32

26/01/2015 17:09

BOOK REVIEW

The Future: Six Drivers of Global Change

by Al Gore PUBLISHER: Random House Trade ISBN-10: 0812982894 RRP: £11.50

There are many ways to get the most from this book.

I read it end to end and found it as much of a page turner as any work of fiction. At the other extreme, it could also be a starting point for a research project into all, or any, of the six major themes it covers. The depth and breadth of research and the thought that has gone into the book is obvious. The author engages the reader, almost inviting you to write your own version by sharing the mind maps he created as he put the book together.

Gore’s six themes are bookended by an introduction and a conclusion, each almost as rich as the main chapters. While I could not do justice even to one chapter in this short review, here is an attempt to get the essential ideas across.

Gore explains that the exponential increase in the pace of technological change influences the role that each of us plays in contributing to production and also in benefiting from consumption. This affects every individual, but globalisation means that the groupings we identify with, whether professions, social groups, or even states, are becoming less relevant. Technology capital is replacing labour, so an increasingly large proportion of economic gains go to capital – something that feels like a social injustice, or even a conspiracy, to many.

Communication technology is having just as powerful an effect on governance – national and corporate – as well as the intermediation of products and services, the availability and usability of knowledge, and the need for humans to adapt to compete. ‘Knowledge is power’ may be a cliché but organisations are increasingly able to ‘know’ us as individuals, instead of members of a group. These factors are having an impact on our perceptions of security and privacy.

‘State’ governance is weakening both nationally and globally, compared with the advancing role and influence of corporations, political systems and markets. This correlates with a shift of economic power from West to East, and the influencing role of technology. The related chapter is interlaced with warning signs, such as the rise of fundamentalism and resource shortages, using the near-default of the previously all-powerful US as a prime example.

Gore shifts his focus to the limits in natural resources, contrasted with the perceived ability of technology to compensate for any difficulties in exploiting them. He reminds us of the impact of population explosion, overlain by consumerism that is driven by economic policies as much as envy.

Coupled with the author’s assessment of behavioural influences, these factors leave the reader struggling

CORBIS

p33_feb_book_review_FINAL•CT.indd 33

“Gore illustrates the tension between the destructive tendencies of commercial interests and the collective global conscience” to find any hope that we are not accelerating towards an inevitable crash.

There is more optimism in the next chapter, in which an analysis of advancing healthcare technology holds out even the prospect of the “digitization of life”.

However, the technologies exposed here might do more to make the reader reflect on the irony of this massive investment to prolong effective life for a few at the end of their natural life, juxtaposed with the challenge of global infant mortality.

More worrying are the examples that demonstrate the complexity of the world and our inability to understand the possible side effects of every technological ‘advance’ that we make.

Gore brings his thesis together in the final chapter, before returning to the theme on which he now spends most of his time: climate change. This is a useful summary of the arguments in favour of both mitigation and adaptation. It illustrates the tension between the destructive tendencies of commercial

interests, and the collective global conscience that has already allayed some of the world’s worst injustices. These opposing forces have been made more powerful by communications technology.

Several times since I read The Future, something I have seen or heard has taken me back to it, and I have found myself thinking about the world in a way I had almost forgotten. While it is only one interpretation of global trends, and there are many that are equally valid, reading this book with an open but sceptical mind would be illuminating for anyone. ● Tony Brooke-Taylor is internal audit director for Aviva’s general insurance business

MORE ONLINE Latest reviews at www.theactuary.com/opinion

February 2015 • THE ACTUARY www.theactuary.com

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26/01/2015 17:10

At the back Coffee break

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

puzzles@theactuary.com

Puzzles

PRIZE PUZZLTE TO H BROUGU BY YO AN MILLIM

Across

AN ORIGINAL SCORE This puzzle celebrates an individual named in three solutions and something he apparently didn’t say, and another person named in two solutions who actually did say it 1

2

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For a chance to win a £25 Amazon voucher, please email your crossword solution to: puzzles@theactuary.com by Wednesday 18 February

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Juggling prop confused idol half back with ball (7) Vent shown when cold water follows otherwise (7) Test alternative to vehicle (5) How actuary reduces French cream in dip? (9) Pointless notice placed in river pointing to town with bridge (7) 16 confused tawdry extremes for splendour (7) Lean on pure Opium to contain infection (15) Fashion items from statement of personal attire (7) Footballer’s body gets injury going without (7) Troubled era laden with unknown King of Greece (9) Expand after taking alternative direction in Surrey (5) Tirade made by worker during call (7) Model anoints actress (7)

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1 Prominence brought about by mad appeals (5,5) 2 Football team have arranged FIFA set behind Orient (4,4) 3 Square Fellow on expedition without leader (4) 4 Banks, perhaps, provided scientific innovation covered by comedian (6) 5 Resort to a greater extent covering part of Cambridge (8) 6 Prime example of disgust expressed about vice-principal (4) 7 What man has up his sleeve for producing curls? (6) 8 Pilot put through paces (4) 14 Scandanavian translated runes, uniform character replaced for nothing (5) 16 Preserve Spanish domain for King (5) 17 Laying out repeatedly without interest to obtain essential oil (5,5) 19 Soldier leads insult to Mike’s model (8) 20 Bit of Lamb one prepared in revolutionary seat of learning (8) 22 Recipe for entrée, timeless of old... (6) 23 …due to a great distance in Angus (6) 24 Seafront residence for natural style (4) 25 Police department following leader to get tart (4) 26 Idle queen in charge, perhaps (4)

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34

THE ACTUARY • February 2015 www.theactuary.com

p34_35_feb_crossword_puzzles_FINAL•CT.indd 34

27/01/2015 10:39

HAVE YOU GOT WHAT IT TAKES? For information on IQ testing in your area, visit www.mensa.org.uk For a chance to win a £25 Amazon voucher, email your solution to puzzle 611 to: puzzles@theactuary.com by Wednesday 18 February

PRIZE PUZZLTE TO H BROUGU BY YO AN MILLIM

Wedded wondering Mensa puzzle 611 On 18 October, Rosalind is marrying Simon. On 5 December, Edwina is marrying William.

On 1 May, Amanda is marrying Adrian and on 13 August, Margaret is marrying Richard.

What is the date of Isobel’s wedding and is she marrying Martin or Oliver?

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

Perfect play Mensa puzzle 612

Tree teaser Mensa puzzle 613

A knight is positioned on the blank square of this chessboard. Move the knight to each square once only, collecting letters to spell out the names of four Shakespearean characters.

Rearrange the letters of ‘COMEDIAN PARABLES’ to give three types of trees.

What are they?

What are the names?

T J N O Y

O T N U A

Bridge puzzle 49 Is there a difference?

You are South and end up in 4♥. West leads A♠, K♠ and a third spade, which you ruff.

♠ 862 ♥ AJ75 ♦ Q105 ♣ KQ2

Is your approach any different if you are playing Teams or Pairs?

N W S

Bidding S N 1♥ 3♥ 4♥

♠ Q5 ♥ K9643 ♦ AK3 ♣ AJ4

Bridge puzzle provided by David Lampert

Learning letters Mensa puzzle 614 Replace each set of dashes with a seven-letter word. The same seven letters must be used for both words.

O E L E R T M I H N E B L A

What are the words?

Despite the efforts of his _ _ _ _ _ _ _ the lad was still a little _ _ _ _ _ _ _ in the classroom

Bridge puzzle 48 SOLUTION You are East. Dummy is North.

Game All West leads Q♠, covered by K and your Ace wins. What is your best hope for defeating this contract?

Bidding W N E S 1NT(1) P 2♥(2) 4♥ P P P (1) 12-14 (2) Transfer to spades

E

For South to suddenly bid 4♥, vulnerable, he must have a solid eight card suit. This means that partner must have points in the minors, particularly A♦. Also, from the lead, Partner has a doubleton spade – and therefore, so does South.

With North’s minor suit strength sitting over Partner’s cards, your best hope is that Partner has three hearts headed by the Jack so you can engineer a trump promotion. However, you must not be too hasty in playing spades. If you now cash

your J♠ and play a third spade, and South has a singleton diamond, as here (quite likely) he can discard it, restricting your side to three tricks.

To gain a fourth, lead a diamond. In fact to make it absolutely clear that you have no interest in the suit (although it should be obvious!), lead 9♦. Partner will win with A♦ and now lead his second spade which you will win. Now lead a third spade. If South ruffs high, his J♥ will be promoted and will win the setting trick sooner or later.

♠ K102 ♥3 ♦ K7542 ♣ AQ43 ♠ Q6 ♥ J95 ♦ AQJ6 ♣ KJ76

N W

♠ AJ9543 ♥6 E ♦ 963 ♣ 852

S ♠ 87 ♥ AKQ108742 ♦ 10 ♣ 109

These puzzles are sponsored by:

SHUTTERSTOCK

p34_35_feb_crossword_puzzles_FINAL•CT.indd 35

February 2015 • THE ACTUARY www.theactuary.com

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puzzles@theactuary.com

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At the back Coffee break

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DECEMBE R 2014 theactuar y.com

The magazine

of the actuarial

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profession

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Congratulations to this month’s winner – Andrew Hill We have put together 12 puzzles for you to attempt as the year comes to a close.

As an incentive, there will be a prize draw for correct entries to each puzzle.

Mini is up for An iPad grabs if you submit correct answers to all 12 brain-teas ers.

To enter, submit your www.puzzles.theactuar answers at y.com by 5 January Only members 2015. of the Institute and of Actuaries are Faculty eligible to win a prize.

I trust you will relish Seasons greetings this festive challenge! to you all.

Kelvin Chamunorwa In partnership with British Mensa

Editor The Actuary

The winner of the Bumper Prize Draw was Shireen Anisuddin, who answered all 12 puzzles correctly

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The IQ style puzzle content is supplied the copyright by, and is of, British Mensa Ltd. Puzzles cannot be reproduced in any from British Mensa. format without permission www.mensa.org.u k

Day 1 Postbox poser Five people are sending Christmas cards by post.

Alison is sending 19 more than Julian and Julian is sending 16 less than Sarah. Ian is sending 7 more than Danielle and Sarah is posting 3 more than Ian. Julian is taking Danielle’s cards to the post box for her. With his own and Danielle’s, Julian has a total of 16 cards to post.

How many cards are the five people sending in total?

ANSWER: 79. Alison – 24, Julian – 5, Sarah – 21, Danielle – 11 Ian – 18.

You have 209 candles and each candle will burn for an hour, leaving a small stub. If you save the stubs they can be moulded into new candles. Nine stubs are needed to make each new candle.

What is the total number of hours of candlelight possible?

ANSWER: 235.

Prize winner: Maria Cass

Prize winner: Gabrielle Chan

Day 6 Carol confusion

Day 2 Flaky fun

P P T T D F H C B G ?

What number should replace the question mark?

ANSWER: 21. Each number at the top is divided by the middle number to give the number opposite.

Prize winner: Ross Wood

Day 3 Route riddle Two minibuses are ferrying employees to the seasonal office party. They both set off from the same point, at the same time, to travel the same 35-mile route.

If minibus A travels at 50 mph and minibus B travels at 35 mph, how many minutes’ difference will there be between their arrival times?

ANSWER: 18.

Prize winner: James Saunders

Day 4 Star of wonder Use the letters given to complete the star so that two five-letter words, one four-letter word and two words of two letters can be read.

ADGOONRTY When completed, what letter will replace the question mark?

ANSWER: O. The words are party, snood, frog, an and to.

Prize winner: Darragh McHugh

36

Day 5 Candle conundrum

THE ACTUARY • February 2015 www.theactuary.com

p36_feb_puzzle_solution_FINAL•CT.indd 36

What letter should appear next in this sequence?

ANSWER: R. The letters stand for the following words: PARTRIDGE, PEAR TREE, TURTLE DOVES, FRENCH HENS, CALLING BIRDS, and GOLD RINGS. Prize winner: Chris Charman

Day 10 Holiday humdinger A survey revealed the following figures for favourite places to spend the Christmas vacation:

BEACH HOLIDAY – 825 COUNTRY RETREAT – 2520 FOREIGN SHORES – 1419 CITY BREAK – ?

How many chose a city break?

ANSWER: 2511. The alphabetical values of the last letters of the two words are placed together to give the number of votes.

Prize winner: Chee Yern Wong

Day 7 Sales stumper A market stall had 80 Santa outfits to sell. The average amount paid for them was £9 but 30 of them had to be sold at the reduced price of £4.

What was the amount paid for the first 50 outfits?

ANSWER: £12.

Prize winner: Paul Torsney

Day 8 Illuminate the code If 246517 spells out CANDLE, 65738 spells out DANCE and 7639 spells out DALE, What would be the code for the word LAND? ANSWER: 4798. The value of the letters increases by one with each word.

Day 11 Home for Christmas A group are making their way home for the holiday season. In the first hour they cover one-fifth of the total distance. The next hour they cover one-third of what is left. The following hour they cover one-quarter of the remainder and in the fourth hour half of the remaining distance. The group are still 12 miles from home.

How many miles have they travelled?

ANSWER: 48.

Prize winner: Kareena Vun

Day 12 Time teaser

A film title has been split up into groups.

Rearrange the groups to form the title.

What is its last letter?

As the countdown to New Year begins, the Town Hall clock has started playing up. It was correct at midnight but from that moment it began to lose three and a half minutes per hour. The clock stopped 120 minutes ago showing clock B (18:50).

What is the correct time now? The clock runs for less than 24 hours.

ANSWER: Christmas with the Cranks.

ANSWER: 22.00 or 10pm.

Prize winner: Tony Heath

Prize winner: Gemma Gregson

Prize winner: Gladys Hosken

Day 9 Movie mix up

SHUTTERSTOCK

26/01/2015 17:11

At the back Student student@theactuary.com

Student As Valentine’s Day approaches, Jessica Elkin muses on a lobster’s penchant to mate for life, but for singletons – it’s just you that counts

SELFISH SHELLFISH I would like to apologise to coupled-up actuarial students in advance, on account of this month’s student page focusing on those readers who are yet to find their lobster. I have assumed that you lovers will be magnanimous towards your less fortunate counterparts, since this month is largely dedicated to you, and you already have the answer to your true love’s duet. Let’s take a moment to raise a glass to you, anyway.

For the singletons, or, more specifically, those who are single but would like to be attached, one problem with Valentine’s Day is that it occurs at precisely the wrong time of year. I believe a better time of year for it would be summer, so one wasn’t faced with such loveless isolation alongside standard-issue grey winter weather (a pathetic time for overcast hearts). Even a few more months into the year would help, as well-meant vows of self-improvement simply don’t have enough time to come into fruition before Valentine’s Day. It’s difficult to achieve very much on the latter front by mid-February, particularly as one never actually starts resolutions until back at work again and, let’s face it, probably a bit after that. It’s all very well if you have already found love, but single people have to suffer post-festive fatness and fatigue alongside their knowledge of their total and complete aloneness.

If Valentine’s were a little later in the year, one would have had a chance to really put those new year’s resolutions into effect and to feel good about all the selfbetterment going on. That way, the single life

PHIL WRIGGLESWORTH

p37_feb_student_FINAL•CT.indd 37

would probably seem more of an appealing prospect. Simply put: Valentine’s is an aggravator for people whose resolutions aren’t going well.

Love thyself I am exaggerating for effect, of course. I’m not as down in the mouth as all that, or as desperate (honest). New year’s resolutions should generally not exist solely in pursuit of pleasing others. That’s unlikely to be the road to success. Love yourself first, and all that.

Ideally, resolutions are there to further mental and physical well-being, and to allow you to a) maximise your potential, b) take the

next step of your journey to enlightenment, or c) some other stock phrase that you see in articles from LinkedIn. Far from seeking a mate, some of you may have resolved to study more, and that’s not a bad one to be getting on with. February seems a common month for the first wave of pre-April exam panic, as actuarial students everywhere suddenly realise that there are only two and a bit months until exams, they’re behind on X assignments and they can’t remember how to write by hand any more. This is why the resolution is such an important thing. Get back on that wagon! Use your study days to full effect! Stoke the fires of your intellect!

Deciding to study hard is one thing, of course, actually carrying it out is another.

When taking exams, it’s easy to focus on the results in the context of how others will react, thanks to that pernicious suitor – Fear. I think it’s safe to say that most actuarial students are not that experienced when it comes to failure, or, at least, they weren’t before they started their career. I’m sure most of you know already that failing isn’t the end of the world, but it’s difficult to shake off the dread of looking bad. It’s a scary thing. If you fail, will your colleagues still love you?

Look out for #1 This is the context in which to be selfish. I’ve already said that resolutions should exist for your own self-approval, and deciding it’s time to knuckle down is part of this. Study for you, and study well. Do it because you want to succeed, not because of fear of failure. Don’t pursue a goal for an external reward, just as you probably wouldn’t pin the hopes behind your new year’s resolutions on the need for a partner. In any case, when you push through and succeed in your goals, you will probably be more attractive anyway! It’s win-win. Do it for you, and others will follow.

In the end, it’s not often the route to qualification that will determine your career.

Qualification is a tick-box of sorts, a nice thing to cross off your to-do list one day.

Employers are going to focus far more on your performance in the office and the experience you have. You can concentrate your working hours towards pleasing others, but with exams, focus on romancing yourself.

Be your own lobster. a

February 2015 • THE ACTUARY www.theactuary.com

37

26/01/2015 17:12

At the back Appointments

SPONSORED BY

peoplemoves@theactuary.com

Moves boards of FTSE 100 and other global companies.

Spence and Partners has announced the appointment of Richard Smith (above) as consulting actuary.

Smith will have a UKwide focus and service clients across Spence’s offices in Glasgow, London, Bristol and Belfast. Prior to joining the firm, he formerly held senior posts at Aon Hewitt and Towers Perrin and has a high level of experience working with trustee

Mercer has reported that Ben Gunnee (above) has been appointed as its new UK head of fiduciary management.

Gunnee will report to Michael Dempsey, European head of fiduciary management.

Gunnee has been at Mercer for more than 12 years and

previously worked for the UK investment regulator.

Mercer also announced the appointment of Norbert Fullerton (above) as a partner in its financial strategy group. Based in the

company’s London office, he will focus on growing Mercer’s investment advice to large UK pension funds. He joins from Russell Investments, where he was director, pension solutions. Prior to this, he was a senior investment consultant at Towers Watson. He has 20 years of industry experience.

Matthew Jones (above right) has set up an independent consultancy, Cat Risk Intelligence, to focus

on helping (re)insurance companies manage their catastrophe risk.

He has more than 17 years’ industry experience and was previously the global head of catastrophe management for Zurich Insurance Group.

www.hfg.co.uk

JESSICA STOTT

ACTUARY OF THE FUTURE

Employer and area of work HamishWilson, pensions.

If you could learn one random skill, what would you learn?

If you could go back in history, who would you like to meet?

How would your best friend describe you?

Driven, but always there to lower the tone.

Sign language – it would make gossiping much easier.

What motivates you?

Favourite Excel function?

Audrey Hepburn – apart from loving her films, she had a tough childhood in the Second World War and was a great ambassador for UNICEF.

To keep pushing myself and test the limits of my stress capabilities.

Only actuaries would have an answer for this…

I would be lost without IF.

What’s your most treasured possession?

What would be your personal motto?

How do you relax away from the office?

“Just keep swimming”.

Hanging out with friends, going to the gym and dog walking for the Cinnamon Trust.

What are the top three things you would like to achieve in your lifetime?

Name five dream companions to be stuck on a desert island with?

Jack Sparrow to help me escape.

Jamie Oliver – at least we would eat well.

Derren Brown to convince me that really I’m at home and haven’t missed a study day.

Morgan Freeman – it doesn’t matter what he says, his voice would relax anyone.

Bear Grylls – apart from his survival skills, he always has a camera crew and satellite phone.

What’s your most ‘actuarial’ habit?

My vast revision spreadsheets.

38

Andy Batley (below) has been appointed chief executive of Munich Re’s UK and Irish life reinsurance business following four years as commercial director. Batley was previously head of global life business development for XL Re.

Alternative career choice?

Master of wine (at least studying would be enjoyable).

Tell us something unusual about yourself I took a year off from maths to take a masters in Chinese and business.

Greatest risk you have ever taken?

Bungee jumping in Whistler.

My iPhone – I’m useless without it!

1. To qualify.

2. To give back more than I take.

3. To move back to Asia, where everything seems to go at twice the pace (I was born in Hong Kong).

If you ruled the world, what would you change first?

Every child everywhere would get a good education. So many of our problems are caused by ignorance.

Do you know an actuary destined for greatness?

You can nominate an Actuary of the Future by emailing

aotf@theactuary.com

THE ACTUARY • February 2015 www.theactuary.com

p38_feb_AOTF_FINAL•CT.indd 38

26/01/2015 17:12

www.theactuaryjobs.com

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‡ƒ† ‘ˆ ƒ’‹–ƒŽ

͙͋͘͘ ÇŚ ͙͋͛͘Â? ÂƒÂ•Â‹Â…ÇĄ ‘Â?†‘Â?

Capital and Pricing Actuary Í‹Í Í˜ ÇŚ ͙͚͋͘Â? ÂƒÂ•Â‹Â…ÇĄ ‘Â?†‘Â?

Ž‘›†ǯ• ’Žƒ›‡” ‹• •‡‡Â?‹Â?‰ ƒ ‡ƒ† ‘ˆ ƒ’‹–ƒŽ –‘ Œ‘‹Â? –Š‡‹” …–—ƒ”‹ƒŽ ƒÂ?† ‹•Â? ˆ—Â?…–‹‘Â?Ǥ Š‹• ’‡”•‘Â? ™‹ŽŽ Šƒ˜‡ ƒ •–”‘Â?‰ ‹‰Ž‘‘ „ƒ…Â?‰”‘—Â?† ƒÂ?† ‡Â?Œ‘› Â?ƒÂ?ƒ‰‹Â?‰ ƒÂ?† Â?‡Â?–‘”‹Â?‰ Œ—Â?‹‘” …–—ƒ”‹‡•Ǥ ‘”Â?‹Â?‰ …Ž‘•‡Ž› ™‹–Š –Š‡ Š‹‡ˆ …–—ƒ”› ƒÂ?† –Š‡ ”‹•Â? ˆ—Â?…–‹‘Â? –Š‹• ‹• ƒ Â?‡› Š‹”‡ –‘ –Š‡ Ƥ”Â? ƒÂ?† ™‹ŽŽ Â?ƒÂ?‡ ƒ •‹‰Â?Â‹Ć¤Â…ÂƒÂ?– ‹Â?’ƒ…– to the business.

For more information contact: william@hfg.co.uk REF: WG0103

‡ƒ†‹Â?‰ Ž‘›†ǯ• •›Â?†‹…ƒ–‡ ‹• Ž‘‘Â?‹Â?‰ ˆ‘” ƒ Â“Â—ÂƒÂŽÂ‹Ć¤Â‡Â† …–—ƒ”› –‘ ™‘”Â? ƒ…”‘•• pricing and capital modelling. The role will work closely with the underwriters and the right person should have the communications skills to work closely ™‹–Š –Š‡ •‡Â?‹‘” ‡š‡…—–‹˜‡•Ǥ ‘ ƤÂ?† ‘—– Â?‘”‡ ƒ„‘—– –Š‹• ”‘Ž‡ ’Ž‡ƒ•‡ ‰‡– ‹Â? touch.

For more information contact: william@hfg.co.uk REF: WG0104

Reserving Actuary

Í‹Í?Í? ÇŚ Í‹ÍžÍ?Â? ÂƒÂ•Â‹Â…ÇĄ ‘Â?†‘Â?

Actuarial Specialist (Capital) Í‹ÍœÍ? ÇŚ Í‹Í?Í?Â? ÂƒÂ•Â‹Â…ÇĄ ‘Â?†‘Â?

‘Â?†‘Â? ƒ”Â?‡– Â?•—”‡” ƒ”‡ Š‹”‹Â?‰ ƒ Â?‡ƒ”Ž› Â“Â—ÂƒÂŽÂ‹Ć¤Â‡Â† …–—ƒ”› –‘ Œ‘‹Â? –Š‡‹” ”‡•‡”˜‹Â?‰ team. This role will sit as a number 2 to the head of reserving. This is a great ‘’’‘”–—Â?‹–› ˆ‘” ƒÂ?› …ƒÂ?†‹†ƒ–‡• Â?‡ƒ”‹Â?‰ Â“Â—ÂƒÂŽÂ‹Ć¤Â…ÂƒÂ–Â‹Â‘Â? ™Š‘ •‡‡Â? Â?‘”‡ ‡š’‘•—”‡ and responsibility. This is a management and oversight role of a small team. The successful candidate will likely have 3/5 years experience in a similar role and have made good progression through the exams.

Ž‘„ƒŽ Ž‡ƒ†‹Â?‰ ”‘Â?‡” „ƒ•‡† ‹Â? –Š‡ …‹–› ‘ˆ ‘Â?†‘Â? ƒ”‡ ‡š’ƒÂ?†‹Â?‰ –Š‡‹” ƒÂ?ƒŽ›–‹…• –‡ƒÂ? ƒÂ?† ™‹ŽŽ „‡ Š‹”‹Â?‰ š͚ ’ƒ”– Â“Â—ÂƒÂŽÂ‹Ć¤Â‡Â† ƒ…–—ƒ”‹‡• –‘ Œ‘‹Â? –Š‡Â?Ǥ ‡•’‘Â?•‹„‹Ž‹–‹‡• ™‹ŽŽ Â?ƒ‹Â?Ž› …‘˜‡” …ƒ’‹–ƒŽ Â?‘†‡ŽŽ‹Â?‰ Â’Â”Â‘ÂŒÂ‡Â…Â–Â•ÇĄ ™‹–Š‹Â? –Š‡ ‹Â?•—”ƒÂ?…‡ Â?ƒ”Â?‡–Ǥ Š‡ •—……‡••ˆ—Ž …ƒÂ?†‹†ƒ–‡ ‹• Ž‹Â?‡Ž› –‘ ™‘”Â? ‹Â? ƒ Ž‘›†• Syndicate and have at least 24 months working in capital.

For more information contact: ben@hfg.co.uk REF: BH0102

For more information contact: ben@hfg.co.uk REF: BH0101

Actuarial Consultant

Í‹Í?͘ ÇŚ Í‹Í&#x;͘Â? ÂƒÂ•Â‹Â…ÇĄ ‘Â?†‘Â?

Actuarial Analyst

͋͛͘ ÇŚ Í‹Í›Í?Â? ÂƒÂ•Â‹Â…ÇĄ ‘Â?†‘Â?

Ž‘„ƒŽ ’”‘ˆ‡••‹‘Â?ƒŽ •‡”˜‹…‡• Ƥ”Â? ƒ”‡ ‘Â? ƒÂ? ƒ…–‹˜‡ ”‡…”—‹–Â?‡Â?– †”‹˜‡ ˆ‘” –Š‡ rest of 2015 in all areas. The actuarial team are eager to meet with candidates ™Š‘ ƒ”‡ …Ž‘•‡ –‘ Â“Â—ÂƒÂŽÂ‹Ć¤Â…ÂƒÂ–Â‹Â‘Â? ™‹–Š ƒ •–”‘Â?‰ „ƒ…Â?‰”‘—Â?† ‹Â? …ƒ’‹–ƒŽǤ Š‹• ‹• ƒ ‰”‡ƒ– ‘’’‘”–—Â?‹–› –‘ ™‘”Â? ™‹–Š ˜ƒ”‹‘—• †‹ƥ‡”‡Â?– ‘Â?†‘Â? ƒ”Â?‡– Â?•—”‡”• ƒÂ?† start to build your actuarial network.

For more information contact: ben@hfg.co.uk REF:BH0103

Ž‘›†• ƒÂ?ƒ‰‹Â?‰ ‰‡Â?– ƒ”‡ ”‡…”—‹–‹Â?‰ ƒ Œ—Â?‹‘” ƒ…–—ƒ”‹ƒŽ ƒÂ?ƒŽ›•– –‘ Œ‘‹Â? –Š‡ •Â?ƒŽŽ –‡ƒÂ?ÇĄ „ƒ•‡† ‹Â? ‘Â?†‘Â?Ǥ ‡’‘”–‹Â?‰ –‘ –Š‡ Š‹‡ˆ Â…Â–Â—ÂƒÂ”Â›ÇĄ –Š‹• ”‘Ž‡ ™‹ŽŽ Šƒ˜‡ ‡š’‘•—”‡ –‘ ”‡•‡”˜‹Â?‰ǥ ’”‹…‹Â?‰ ƒÂ?† …ƒ’‹–ƒŽǤ – ƒŽ•‘ Šƒ• ‘Â?‡ ‘ˆ –Š‡ „‡•– •–—†› ’ƒ…Â?ƒ‰‡• ‹Â? –Š‡ ‘Â?†‘Â? ƒ”Â?‡–Ǥ Š‡ •—……‡••ˆ—Ž …ƒÂ?†‹†ƒ–‡ ™‹ŽŽ Šƒ˜‡ ƒ– least 12/18months experience in a similar role.

For more information contact ben@hfg.co.uk REF:BH0104

Pricing Contractor

Capital Contractor

ÂŁ800 - ÂŁ1000, 9 - 12 months , London

This leading insurer is looking for a pricing contractor for maternity cover.

Working closely with the underwriters you will be involved with working ƒ…”‘•• ƒŽŽ Â…ÂŽÂƒÂ•Â•Â‡Â•ÇĄ ‘ƥ‡”‹Â?‰ —Â?†‡”™”‹–‹Â?‰ •—’’‘”–ǥ ĥ ™‡ŽŽ ĥ †‡˜‡Ž‘’‹Â?‰ and enhancing existing rating models . To be considered you must have a commercial lines pricing experience For more information contact: rupa@hfg.co.uk REF:RP482

+44 (0) 207 337 8800

ÂŁ700- ÂŁ900, 6 months, London

This leading insurer is looking for a contractor, for an initial 6month period •—„Œ‡…– –‘ ‡š–‡�•‹‘� –‘ ™‘”� ™‹–Š‹� –Š‡‹” ƒ…–—ƒ”‹ƒŽ –‡ƒ�Ǥ ‘— ™‹ŽŽ „‡ ‹�˜‘Ž˜‡† across the business pre-dominantly within capital modelling and be involved ‹� ˜ƒŽ‹†ƒ–‹‘� ƒ�† ’ƒ”ƒ�‡–‡”‹•ƒ–‹‘� ™‘”�Ǥ ‘— ™‹ŽŽ ƒŽ•‘ „‡ ‡š’‘•‡† –‘ ‘–Š‡” teams and be expected to assist in ad-hoc risk, reserving and pricing work.

For more information please contact: rupa@hfg.co.uk REF:RP439

™™™ǤŠˆ‰Ǥ…‘Ǥ—�

February 2015 • THE ACTUARY 39 www.theactuary.com

Recruitment Jan Feb15.indd 39

27/01/2015 13:03

Appointments Ground Floor Pellipar House, 9 Cloak Lane, London EC4R 2RU | 0207 332 5870 | actuarial@mansionhouse.co.uk www.mansionhouse.co.uk

NON - LIFE

NON-LIFE Samantha Yee yees@mansionhouse.co.uk

MARKET PRICING MANAGER – PERSONAL LINES INSURER

SENIOR CAPITAL ACTUARY – LLOYD’S SYNDICATE

Up to £80K + Bens + Bonus SURREY

Up to £110K + Bens + Bonus LONDON

A leading Insurer is looking for a non-life Actuary with around 5 years’ experience in the personal lines space (motor or home) to manage a team of 3 on the Retail Pricing team. Exciting future career development opportunities.

Leading Lloyd’s syndicate is looking for a qualiƂed Capital Actuary with at least 2 years’ experience in the Lloyd’s Market to play a key role in the Capital team. To manage stake holders, lead meetings with Lloyd’s and PRA in relation to regulatory capital returns.

Ref: 22773

Ref: 22789

HEAD OF ANALYTICS – PERSONAL LINES INSURER

SENIOR PRICING ACTUARY – REINSURANCE NON-LIFE

Up to £100K + Bens + Bonus LONDON

Up to £100K + Bens + Bonus GERMANY

A growing Insurance Group is looking for a commercially minded individual to lead and grow an analytics team. Reporting to Group, this person will play a signiƂcant part in taking the business to the next level through creative analytic techniques.

Ref: 22789

LIFE Martin Press pressm@mansionhouse.co.uk

Reinsurer seeks a Senior Pricing Actuary for a broad range of short and long tail business for Europe, Middle East and African markets.

Responsible for technical transaction pricing. At least 5 years of reinsurance pricing experience.

Ref: 22462

LIF E MANAGER/ SENIOR MANAGER – LEADING CONSULTANCY £ Competitive package LONDON A top consultancy with a strong non-life Actuarial team is looking to grow the team further. The aim is to develop the pricing and analytics side. Forward thinking Actuaries with superb communication skills and an interest in pricing, but also core skills to support capital projects, would be a good Ƃt.

LIFE REPORTING ACTUARY – LIFE OFFICE Up to £70K + Bens + Bonus HAMPSHIRE Nationwide blue-chip insurer needs Life Reporting Actuary. Must have experience in a life function and possess a numerate and highly analytical personality with a developed capability to apply to complex business situations. Candidate needs to have comprehensive knowledge of Prophet and Ƃnancial reporting as well as detailed knowledge of regulatory frameworks.

Ref: 22084

Ref: 22760

GERMANY

CHIEF ACTUARY – GLOBAL INSURER

Zainab Ali aliz@mansionhouse.co.uk

Up to £500K complete package MIDDLE EAST

PRICING MANAGER – LARGE INSURER QUALIFIED LIFE ACTUARY

Global Insurance company operating out of the Middle East needs a Chief Actuary to cover the entire Middle-Eastern region. This is an incredibly inƃuential position with a huge degree of autonomy. The salary package is far above the market rate and is a complete ex-pat package. Experience in Life, Health and Reinsurance are vital.

Ref: 22084

Up to 80K + Bens + Bonus & Long Term Incentives LONDON Global Life Assurance company currently under expansion in its UK market. Seeking to recruit a new member of staff to their London based branch as a Pricing Manager. Remuneration packages will be based on competitive market rates based on experience. Needs to have at least 5 years qualiƂed experience in a similar function, consultancy background would be advantageous.

Ref: 22761

P E NSIONS & I N VES T MEN T S FRANCE Stephen Roisier roisiers@mansionhouse.co.uk

LONGEVITY ACTUARY – CONSULTANCY Up to £120K + Bens + Bonus LONDON Key role within the Actuarial and Risk team of this new consultancy team.

Development of proposition, from strategic, sales, and technical perspective. End to end ownership of assignments.

Ref: 22684

PART QUALIFIED OR NEARLY/NEWLY PENSIONS & INVESTMENT ACTUARY Up to £55K + Bens + Bonus LONDON

PENSION & INVESTMENTS

40

Ben Whalley whalleyb@mansionhouse.co.uk

THE ACTUARY • February 2015 www.theactuary.com

Recruitment Jan Feb15.indd 40

Well established and growing consultancy seeking a part/nearly qualiƂed Pensions’ actuary to join their growing London team. As well as supporting senior actuaries, the successful candidate will be expected to take on client responsibilities from day one.

Ref: 22693

INVESTMENT CONSULTANT – PENSION RISK & INVESTMENT 6 Figure Basic Salary + Bens + Bonus LONDON Advise trustees and sponsoring employers of UK deƂned beneƂt pension plans on the investment of pension plan assets, with a particular focus on modelling and controlling investment risk, and optimum use of capital to fund pension liabilities. Incredibly varied and rewarding role.

Ref: 22391

HEAD OF INVESTMENT CONSULTING Up to 160K + Bens + Bonus & Long Term Incentives LONDON Unique opportunity for highly experienced Investment Consultant to take on a leadership role with an established and vibrant Investment Consultancy practice. The successful candidate will be an inspirational leader, able to clearly articulate and implement the next stage of strategic growth for this business.

Ref: 21272

27/01/2015 13:03

London : Chicago : Hong Kong : Singapore : Shanghai

www.theactuaryjobs.com

Senior Actuarial Manager - Singapore $WWUDFWLYH 6DODU\ %RQXV %HQHÂżWV

VP/ SVP, Analytics - Hong Kong $WWUDFWLYH 6DODU\ %RQXV %HQHÂżWV

Leading health insurer requires a Senior Manager with experience of pricing health insurance products to manage a small team of pricing, portfolio and reporting analysts.

Based in Singapore, you will undertake technical analysis and advise on the pricing of new and existing business as well as participate in reserving and product development.

Prior team management experience will be an advantage.

7KLV LV D UROH WKDW FRYHUV WKH $VLD 3DFLÂżF UHJLRQ DQG VRPH travel maybe required.

A leading reinsurer is looking for a VP/SVP to join their expanding team. Based in Hong Kong, this is an exciting new position to be a key member of the Analytics team and become a key function of a wider underwriting team.

Reporting to the Head of Analytics, you will require extensive reinsurance treaty pricing experience within WKH (XURSHDQ DQG RU 86 PDUNHWV DQG DFURVV PXOWL OLQHV RI businesses. Experience in reserving or capital modelling will be an added advantage.

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

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

Actuary - Cont. Europe Âź %RQXV %HQHÂżWV

Actuarial Analyst - London ÂŁ30,000 - ÂŁ45,000

Our client, a global P&C and specialty insurer and reinsurer, is looking to recruit an ambitious actuary to join their team.

You will mainly deal with quarterly loss reserve reviews and the calculation of Solvency II technical provisions.

Further responsibilities will include the monitoring of rate FKDQJHV IRU /R%V DQG SUHSDUDWLRQ RI SURÂżWDELOLW\ VWXGLHV 7KH LGHDO FDQGLGDWH LV D TXDOLÂżHG RU SDUW TXDOLÂżHG DFWXDU\ with relevant experience. Strong Excel and VBA skills would be an advantage.

A leading insurer is looking to hire an Actuarial Student for their actuarial team. Principal responsibilities will be reserving and the quarterly reporting process. Other tasks include portfolio analysis and performance monitoring (i.e. rate monitoring, loss trend analysis etc.) as well as planning and capital modelling. The ideal candidate is an actuarial student with relevant experience in the general LQVXUDQFH LQGXVWU\ Âą LGHDOO\ /RQGRQ 0DUNHW DQG VWURQJ communication skills. Good knowledge of Excel and Access would be advantageous.

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

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

/RQGRQ 2I¿FH IPS Group, Bevis Marks House, 24 Bevis Marks, London EC3A 7JB 7HOHSKRQH +44 207 481 8686 Email: actuarial@ipsgroup.co.uk February 2015 • THE ACTUARY 41 www.theactuary.com

Recruitment Jan Feb15.indd 41

27/01/2015 13:03

Appointments

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Pricing Analyst Sussex Up to £50k + bonus + beneĮts An internaƟonally renowned insurer is currently recruiƟng for a part qualiĮed Actuary to sit within their technical pricing team. The role will be focused on pricing for Motor lines of business.

The ideal candidate will have Emblem exposure and experience with GLMs but they will also look at non-life students looking to get into pricing.

Full study support is on oīer. The company has a very healthy work/life balance and there is an abundance of internal opportuniƟes both within the UK and internaƟonally.

For a conĮdenƟal discussion please contact Victoria Cruickshank on 0207 621 3758 or email v.cruickshank@darwinrhodes.com

Head of Credit/Market Risk London From £120,000 My client, a leading UK insurer, currently has a new posiƟon reporƟng to the Group CRO. Role involves oversight of credit and market risk across Europe & Reinsurance divisions.

Blank canvass opportunity, seeking an actuary or risk expert with excellent report wriƟng, communicaƟon and technical skills with strong stakeholder management background.

For a conĮdenƟal discussion please contact Clinton Poore 0207 929 7667 or email c.poore@darwinrhodes.com

Part QualiĮed Life Insurance – Actuarial Risk London CompeƟƟve salary + beneĮts A new and exciƟng Actuarial Risk role for an ambiƟous part qualiĮed life actuarial student. You will be making good progress through the actuarial exams, whether sƟll studying for your CT’s or close to qualiĮcaƟon but looking to gain experience at a mulƟ-naƟonal insurer with a growing presence in Europe. The successful candidate will work closely with the Head of ERM to develop the risk management framework responding to new and emerging Group and regulatory requirements. Full study support plus rotaƟon opportunity.

For a conĮdenƟal discussion please contact Adam Goodwin on 0207 929 7667 or email a.goodwin@darwinrhodes.com

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42

THE ACTUARY • February 2015 www.theactuary.com

Recruitment Jan Feb15.indd 42

27/01/2015 13:03

Sophia Crossman Life Insurance +44 (0) 207 337 1207 sophia@hfg.co.uk

George Bird Life Insurance +44 (0) 207 337 8806 georgeb@hfg.co.uk

www.theactuaryjobs.com

Erin O'Donnell Risk Management +44 (0) 207 337 1202 erin@hfg.co.uk

James Kitt Risk Management +44 (0) 207 337 1202 james@hfg.co.uk

Life insurance roles Reporting Manager

ÂŁ55 - ÂŁ80k Basic, South East

Director of Longevity

ÂŁ85 - ÂŁ120k Basic, London

A leading life insurer is looking for an Actuarial Reporting Manager responsible ˆ‘” ‹ˆ‡ ‡’‘”–‹Â?‰Ǥ Š‡ ‹†‡ƒŽ …ƒÂ?†‹†ƒ–‡ ™‘—Ž† „‡ Â?‡ƒ”Ž› ‘” Â?‡™Ž› Â“Â—ÂƒÂŽÂ‹Ć¤Â‡Â† ™‹–Š Í?ÇŚÍ™Í˜ ›‡ƒ”• ‘ˆ ‡š’‡”‹‡Â?…‡ ™‹–Š‹Â? ‹ˆ‡ Â?•—”ƒÂ?…‡ ‹Â?…Ž—†‹Â?‰ •‹‰Â?Â‹Ć¤Â…ÂƒÂ?– ”‡’‘”–‹Â?‰ experience. People management experience is preferred but not essential for this position.

For more information contact: sophia@hfg.co.uk REF: SC0101

š…‡’–‹‘Â?ƒŽ ‘’’‘”–—Â?‹–› ˆ‘” ƒ Ž‹ˆ‡ …–—ƒ”› ™‹–Š •‹‰Â?Â‹Ć¤Â…ÂƒÂ?– Ž‘Â?‰‡˜‹–› ‡š’‡”‹‡Â?…‡ –‘ take a lead actuarial position at this growing consultancy. Our client is looking for someone with a very technical background in modelling or pricing. Good career ’”‘‰”‡••‹‘Â? ‹• ‘ƥ‡”‡† ĥ ™‡ŽŽ ĥ –Š‡ ‘’’‘”–—Â?‹–› –‘ ‰”‘™ ƒ –‡ƒÂ?Ǥ For more information contact: sophia@hfg.co.uk REF: SC0102

Pricing Actuary

Risk Actuarial Analyst

ÂŁ55 - ÂŁ80k Basic, London

Â?‹…Š‡ Ž‹ˆ‡ ‹Â?•—”‡” ‹• Ž‘‘Â?‹Â?‰ ˆ‘” ƒ Â“Â—ÂƒÂŽÂ‹Ć¤Â‡Â† Ž‹ˆ‡ …–—ƒ”› –‘ Œ‘‹Â? –Š‡‹” ”‹…‹Â?‰ ‡ƒÂ?Ǥ You will lead in a range of pricing with protection products and other commercial ƒ…–—ƒ”‹ƒŽ ™‘”Â?Ǥ Š‹• ”‘Ž‡ Ƥ–• ™‹–Š‹Â? –Š‡ ’”‹…‹Â?‰ ĆŹ ”‡‹Â?•—”ƒÂ?…‡ ˆ—Â?…–‹‘Â? ƒÂ?† ‹• ƒŽ•‘ managing a couple of students. The successful candidate will have previous pricing experience within a life insurer or want to get into this area.

For more information contact: sophia@hfg.co.uk REF: SC0103

‹–Šnj ”‘Ƥ–• …–—ƒ”›

ÂŁ600 - ÂŁ800 / day, Bristol

ÂŁ40 - ÂŁ55k Basic, London

This multinational life insurer is looking for an ambitious life actuarial analyst to join their Risk Function. You will get exposure to ERM, Financial Risk and full oversight across the actuarial function. This position is a great way to expand your actuarial ‡š’‡”‹‡Â?…‡ ƒÂ?† ™‘”Â? ™‹–Š ”‹•Â? ’”‘ˆ‡••‹‘Â?ƒŽ• ƒÂ?† ‹Â?ƪ—‡Â?–‹ƒŽ Â“Â—ÂƒÂŽÂ‹Ć¤Â‡Â† ƒ…–—ƒ”‹‡•Ǥ Life actuarial experience is essential as is good progress through the exams.

For more information contact: sophia@hfg.co.uk REF: SC0104

Solvency II Lead

ÂŁ800 - ÂŁ1000 / day, London

A leading life insurance company are looking for an Actuary to work on their With ”‘Ƥ–• ˆ—Â?†Ǥ Š‡ ”‘Ž‡ ™‹ŽŽ ‹Â?˜‘Ž˜‡ ™‘”Â?‹Â?‰ ƒ…”‘•• ƒ Â?—Â?„‡” ‘ˆ –‡ƒÂ?• –‘ ‡Â?ŠƒÂ?…‡ –Š‡ ƒ••‡– ƒŽŽ‘…ƒ–‹‘Â? Â?‡–Š‘†‘Ž‘‰›Ǥ Š‡ •—……‡••ˆ—Ž …ƒÂ?†‹†ƒ–‡ ™‹ŽŽ „‡ ƒ ˆ—ŽŽ› Â“Â—ÂƒÂŽÂ‹Ć¤Â‡Â† Â…Â–Â—ÂƒÂ”Â›ÇĄ Šƒ˜‡ ‡š–‡Â?•‹˜‡ ‹–Šnj ”‘Ƥ– ‡š’‡”‹‡Â?…‡ ƒÂ?† ‡š…‡ŽŽ‡Â?– …‘Â?Â?—Â?‹…ƒ–‹‘Â? ƒÂ?† inter-personal skills.

For more information contact: georgeb@hfg.co.uk REF: GBI0101

An upper tier life insurance company based in the City is looking for a Solvency II technical lead in their actuarial department. In this position you will be working on MoSes models to maintain existing tools and develop their functionality. The successful candidate will have excellent working knowledge of Solvency II, expert MoSes skills and experience of managing a team.

For more information contact: georgeb@hfg.co.uk REF: GBI0102

Process Actuary

Actuarial Prophet Developer

ÂŁ700 - ÂŁ800 / day, Manchester

A market leading life insurer is looking for two process Actuaries to join their team. The role will involve streamlining the process between modelled results and published results. The successful candidate will have excellent excel and spread sheet skills, a good working knowledge of Prophet and be well-versed in the endto-end reporting process.

For more information contact: georgeb@hfg.co.uk REF: GBI0103

ÂŁ600 - ÂŁ850 / day, Bristol

A leading life insurer is looking for a Prophet developer to join their actuarial team.

The purpose of the role is to maintain the existing tools of the model as well as to increase its functionality. The successful candidate will have at least 3 years of coding in Prophet, having worked on input and output data and have strong documentation skills.

For more information contact: georgeb@hfg.co.uk REF: GBI0104

Risk roles Risk Consultant - Senior Manager

Up to ÂŁ85k Basic, London

A leading Consultancy is looking for someone to join their growing risk practice.

Successful candidates will work across Insurance and Banking markets as well ĥ ƒ Â?—Â?„‡” ‘ˆ †‹ƥ‡”‡Â?– ’”‘Œ‡…–•Ǥ ƒÂ?†‹†ƒ–‡• ˆ”‘Â? ƒŽŽ ”‹•Â? „ƒ…Â?‰”‘—Â?†• ™‹ŽŽ „‡ considered though candidates from a non-Actuarial background are preferred. If you have the ability to manage stakeholder expectations and deliver projects in a –‹Â?‡Ž› Â?ƒÂ?Â?‡” –‘ ƒ Š‹‰Š •–ƒÂ?†ƒ”† –Š‡Â? ‹– ‹• ™‘”–Š ƤÂ?†‹Â?‰ ‘—– Â?‘”‡Ǥ For more information contact: james@hfg.co.uk REF: JK0101

+44 (0) 207 337 8800

Financial Risk Actuary

ÂŁ50 - ÂŁ70k Basic, London

Â? ‘’’‘”–—Â?‹–› ˆ‘” ƒ Â“Â—ÂƒÂŽÂ‹Ć¤Â‡Â† ƒ…–—ƒ”› ™‹–Š …‘Â?Â?‡”…‹ƒŽ ‹Â?–‡”‡•– –‘ Œ‘‹Â? ƒ Žƒ”‰‡ life insurer in their risk function. Your role will be to support the implementation ‘ˆ –Š‡ ”‹•Â? ˆ”ƒÂ?‡™‘”Â? ™‹–Š ‡Â?’Šƒ•‹• ‘Â? ƤÂ?ƒÂ?…‹ƒŽ ”‹•Â? ƒÂ?† –‘ ‡Â?„‡† ƒ ”‹•Â? „ƒ•‡† culture throughout the business. The ideal candidate will have a consultative ’‡”•‘Â?ƒŽ‹–› ƒÂ?† Šƒ˜‡ ‡š’‡”‹‡Â?…‡ ‹Â? ”‹•Â? “—ƒÂ?Â–Â‹Ć¤Â…ÂƒÂ–Â‹Â‘Â? Â?‡–Š‘†•Ǥ For more information contact: erin@hfg.co.uk REF: EO0101

www.hfg.co.uk February 2015 • THE ACTUARY 43 www.theactuary.com

Recruitment Jan Feb15.indd 43

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Appointments

It’s impossible to think of a single reason for working with LV= as an actuary‌ ‌simply because there are many.

Wide-ranging opportunities, all under one roof.

Because our Life and GI actuaries are in the same place, along with our risk and investment teams, you’ll have access to a diverse and expansive spectrum of work, expertise and ideas.

Valued as a trusted business partner. You’ll do much more than run numbers and reports. We’re interested in your business advice and strategic recommendations too.

Empowered and supported to be innovative. Sharing knowledge and new thinking makes us better as a business. We want you to challenge the conventional and develop new ways of working.

Jason Sykes Managing Director EA Reg: R1333193 +65 6829 7153 jason@hfg.com.sg

Ongoing professional development through our Actuarial Academy. We’ll support you to expand your skillset, to experience different areas of actuarial work and take your career in the direction you want it to go.

A business growing from strength to strength. ,W¡V D JUHDW WLPH WR MRLQ XV )ROORZLQJ D \HDU RI VLJQLĂ€FDQW growth and internal promotion we have a number of Senior Actuarial Analyst and QualiďŹ ed Actuarial opportunities within our Bournemouth team. If you’d like to talk through any of the opportunities, feel free to email chelsea.bain@LV.com Find out more about what we can offer you and your career, visit jobs.lv.com/actuarial

Clare Bethnell Director EA Reg: R1434590 +65 6829 7153 clare@hfg.com.sg

Graeme Braidwood Senior Consultant EA Reg: R1434568 +65 6829 7153 graeme@hfg.com.sg

Tong Yu Consultant +44 (0) 207 337 8853 tong@hfg.co.uk

Asia roles Prophet Expert

Up to HKD 1m per annum, Hong Kong

A major multinational insurer is looking for Prophet Experts to join their regional team at Assistant Manager/Manager level.

You will be responsible for developing Prophet ALS and carrying out economic capital and stochastic calculations for the region. Relocation and visa support ‘ƥ‡”‡†Ǥ For more information contact: tong@hfg.co.uk REF: TY0101

Regional ERM Manager

44

Up to SGD 180,000 plus bonus, Singapore

Consulting Actuary

Up to $800,000 plus bonus, Hong Kong, China or Taiwan

Does the New Year hold new opportunities for you?

A well known consultancy is looking for an Assistant Manager or Manager to join –Š‡‹” ”‡ƒ–‡” Š‹Â?ƒ ’”ƒ…–‹…‡Ǥ ˆ ›‘— ƒ”‡ ƒ Â?Â‡ÂƒÂ”ÂŽÂ›Č€Â?‡™Ž› Â“Â—ÂƒÂŽÂ‹Ć¤Â‡Â† …–—ƒ”› ™‹–Š •‘Ž‹† actuarial valuation, modelling, pricing or Solvency 2 skills and want learn about moving into consulting please contact: tong@hfg.co.uk REF: TY0102

Chief Actuary

Disclosed on application, Hong Kong

As the ERM specialist you will be integral to risk management for this fast growing regional Life insurer. Reporting to the Group Chief Actuary, you will take ownership for the development and implementation of the ERM framework and corporate best practice in Asia. Responsibilities include chairing the internal risk committee and liaising with country heads in SE Asia.

For more information contact: graeme@hfg.com.sg REF: GB0101

This MNC is entering the Hong Kong market and they are seeking a commercially astute Actuary to be part of this new venture. Fully supported by the regional executive you will set the strategic direction, leading technical and business development activities. To be considered you will have demonstrated experience in Hong Kong, have excellent technical knowledge and are able to build a team.

For more information contact: graeme@hfg.com.sg REF: GB0102

Portfolio Manager

Credit Ratings Analyst

HKD 1m - 1.2m plus bonus, Hong Kong

Up to HK $800,000 plus bonus, Hong Kong / Singapore

A globally renowned insurer is seeking to hire a talented Actuary to join its expanding team. The role requires the incumbent to build a portfolio management ’Žƒ–ˆ‘”Â? ƒÂ?† ’”‘˜‹†‡ ”‡‰‹‘Â?ƒŽ ƒÂ?ƒŽ›•‹• ‘Â? ƒ Š‹‰ŠŽ› Â’Â”Â‘Ć¤Â–ÂƒÂ„ÂŽÂ‡ „‘‘Â? ‘ˆ „—•‹Â?‡••Ǥ Additionally the remit will involve more traditional actuarial work such as reserving and wider project involvement.

For more information contact: jason@hfg.com.sg REF: JS0101

‘”‡† ‘ˆ „‡‹Â?‰ ƒ –”ƒ†‹–‹‘Â?ƒŽ Â…Â–Â—ÂƒÂ”Â›ÇŤ ‡ƒ†‹Â?‰ ”ƒ–‹Â?‰• Ƥ”Â? ‹• •‡‡Â?‹Â?‰ –‘ Š‹”‡ ƒ •Â?‹ŽŽ‡† ƒ…–—ƒ”› –‘ Œ‘‹Â? ‹–• Â?•—”ƒÂ?…‡ ”ƒ–‹Â?‰• –‡ƒÂ?Ǥ Š‹• †›Â?ƒÂ?‹… ”‘Ž‡ ™‹ŽŽ ‰‹˜‡ ›‘— Ƥ”•– …Žƒ•• exposure to C-Suite level Executives and involve highly strategic, commercial and technical analysis. The role requires strong communication / interpersonal skills as ™‡ŽŽ ĥ …‘Â?Ƥ†‡Â?…‡ –‘ †‡ƒŽ ™‹–Š •‡Â?‹‘” Â?ƒÂ?ƒ‰‡Â?‡Â?–Ǥ For more information contact: jason@hfg.com.sg REF: JS0102

EA Licence Number: 14C7034

www.hfg.com.sg | +65 6829 7153

THE ACTUARY • February 2015 www.theactuary.com

Recruitment Jan Feb15.indd 44

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www.theactuaryjobs.com RESERVING & CAPITAL Lloyd’s Market, London Up to £50k + bonus + benefits A fantastic opportunity to get involved in both reserving and capital work in the Lloyd’s market. Candidates from all backgrounds will be considered for this role, you do not need to have prior experience of working in the Lloyd’s market, hence it’s a great opportunity for those with a reserving and/ or capital background who wish to move to this exciting sector.

You’ll get involved with: • Both qualitative and quantitative SCR work • Statement of actuarial opinion work • Overseas operations • Reserving projections for multiple lines of business • Assisting in setting parameters for the internal model Candidates from a consultancy environment who are making good progress with the actuarial exams are encouraged to apply. (Ref: NR00033a)

Parvinder Matharu Newton Recruitment t +44(0)1689 862937 e parvinder@newtonrecruitment.com w www.newtonrecruitment.com Contact

The missing piece to your career puzzle

To register for our Jobs by email service simply go to theactuaryjobs.com

February 2015 • THE ACTUARY 45 www.theactuary.com

Recruitment Jan Feb15.indd 45

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Appointments

PLAN YOUR NEXT MOVE

ON THE MOVE

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46

THE ACTUARY • February 2015 www.theactuary.com

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pensions & investments | non-life | life & health

www.theactuaryjobs.com

experts in actuarial recruitment

Assistant Investment Manager

Managing Director

Senior Asset Allocation Strategist & Senior Investment Risk Manager

London, c. £85k + bonus & benefits

London, excellent package

London, c. £125k + bonus & benefits

A non-life insurer has created a

Senior level leadership position for

The investment management arm

new role within its investment

the UK arm of a global risk consult-

of a large UK pension fund is

function and are seeking to add a

ing business. Service delivery and

seeking to add a senior asset

senior investment risk manager to

business development within the

allocation strategist and an experi-

provide support to the CIO on all

insurance market are key to this

enced investment risk manager to

aspects of risk management and

position, dealing with both internal

its senior team. Candidates must be

quantitative input into their invest-

and external clients as well as

qualified actuaries with prior expe-

ment decision making process.

having responsibility for a team of

rience

Interested to connect with risk

90, spanning ERM, Actuarial, and

pension schemes in ensuring their

management focussed actuaries

Risk Finance consulting. Prior expe-

overall

who have built complex risk tools.

rience of developing and leading

management solution has been

risk teams as well as networking at

well designed, maintained and

Board level is required.

controlled.

Contact: Simon Arthur +44 (0)20 7092 3242 simon.arthur@eamesconsulting.com

Contact: Andy Cannon +44 (0)20 7092 3262 andy.cannon@eamesconsulting.com

Contact: Simon Arthur +44 (0)20 7092 3242 simon.arthur@eamesconsulting.com

Ian Povey +44 (0)20 7092 3265 ian.povey@eamesconsulting.com

Anthony Hill +44 (0)20 7092 3287 anthony.hill@eamesconsulting.com

Rob Bulpitt +44 (0)20 7092 3237 rob.bulpitt@eamesconsulting.com

of

working

investment

with

large

and

risk

Please get in touch for a confidential discussion on any of the above roles, or other career opportunities. actuarial@eamesconsulting.com

London Zurich

Hong Kong

@EamesConsulting

in

Eames Consulting Group

Singapore

eamesconsulting.com February 2015 • THE ACTUARY

47

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Appointments N ON - LI FE RI S K

N O N - L I F E L IFE R IS K P E N S IO NS I NVESTM ENT TECHNICAL PRICING MANAGER

NON-LIFE ANALYTICS LEADER

up to £100k + bonus + benefits NON-LIFE SOUTH EAST

LONDON MARKET PRICING ACTUARY

£ excellent + bonus + benefits STAR2306

NON-LIFE LONDON

£ excellent package STAR2253

NON-LIFE LONDON

STAR2283

Non-life insurer seeks a Technical Pricing Manager to lead a team in defining and developing its pricing strategy. Working alongside the Head of Pricing you will deliver risk models across multiple lines of business.

Our client is looking for a qualified actuary with a strong track record in the non-life industry. In this highly visible role you will lead a team of insurance experts, collaborating and building relationships with multiple stakeholders.

Our client is seeking a qualified pricing actuary with knowledge of the London Market, and property, casualty and specialty insurance.

Contact us now for more information on this attractive role.

NON-LIFE CATASTROPHE RISK SPECIALIST

PRICING & RESERVING ACTUARY

LONDON MARKET CAPITAL & RESERVING

£ competitive package plus excellent benefits

up to £80k + bonus + benefits

up to £80k + bonus + benefits

NON-LIFE LONDON

NON-LIFE SOUTH EAST

STAR2296

STAR2187

NON-LIFE LONDON

STAR2232

Our client is looking for a risk specialist to provide technical leadership in a highly complex and sophisticated role - with a particular focus on catastrophe risk.

High-calibre actuary sought to join a global leader in the non-life market. You will lead a team in the provision of technical pricing and reserving advice across the home and motor portfolio.

Seeking a qualified actuary with knowledge of the London market to take up a role involving capital, risk, reserving, project, people and stakeholder management, within a high profile team.

NON-LIFE IS CHANGE

ACTUARIAL ANALYTICS

LONDON MARKET RESERVING

£ excellent + bonus + benefits

£ excellent + benefits

NON-LIFE LONDON

STAR2287

£ excellent + bonus + benefits

NON-LIFE LONDON

STAR2280

NON-LIFE LONDON

STAR2212

Leading firm seeks a qualified non-life actuary with strong technical and communication skills to provide high-quality consulting services to wide-ranging clients.

Leading financial services firm is seeking managers or senior managers to support its growth strategy in the area of data and analytics.

We have a fantastic opportunity for a partqualified or qualified non-life actuary with strong interpersonal skills to join the reserving team of a leading London Market insurer. Please contact us for more information on this exciting role.

RISK PRICING ANALYST - NON-LIFE

PRICING ANALYST

PRICING ANALYST - NON-LIFE

up to £64k + bonus + benefits

up to £60k, depending on experience

up to £59k + bonus + benefits

NON-LIFE RISK LEEDS

STAR2311

NON-LIFE SOUTH WEST

STAR2074

NON-LIFE BIRMINGHAM

STAR2308

Major financial services group seeks a partqualified non-life actuary to join its growing pricing team. You will have strong technical skills and be able to communicate clearly to a wide range of stakeholders.

Our client is looking for a part-qualified actuary with commercial pricing experience to strengthen its actuarial pricing team, deriving appropriate technical premiums and underwriting analytics to support the UK business.

Major insurer seeks a talented non-life analyst to join its retail pricing team. The successful candidate will review account performance and price for optimal profitability and competitiveness.

MOTOR PRICING

RESERVING AND CAPITAL

ACTUARIAL ANALYST - NON-LIFE

£ depends on experience + bonus + benefits

up to £50k + bonus + benefits

up to £45k + bonus + benefits

NON-LIFE SOUTH WEST

NON-LIFE LONDON

STAR2304

Our client is looking to grow its team with experienced motor pricing actuaries and analysts. Knowledge and experience of GLM is a key requirement.

STAR2303

NON-LIFE BIRMINGHAM

STAR2305

Leading global insurer seeks a proactive part-qualified actuary to get involved in reserving and capital work. You will show good actuarial exam progress, and have working knowledge of reserving software.

Leading insurer seeks a part-qualified non-life actuary to join its reserving team where you will support the calculation of SII technical provisions and claims reserves.

MODEL RISK ACTUARIES

MARKET PRICING MANAGER

SENIOR MANAGER - CAPITAL

up to £90 + bonus + benefits

£ excellent + bonus + benefits

£ excellent + bonus + benefits

STARVACANCIES NON-LIFE RISK MANCHESTER

STAR2316

Leading financial services firm is seeking talented non-life actuaries to develop the internal model framework and evaluate pricing and reserving models. Take this opportunity to make a genuine impact within a market-leader.

48

NON-LIFE SOUTH EAST

STAR2324

Leading insurer requires a Pricing Manager to take responsibility for pricing decisions across multiple lines of business with the aim of improving pricing structures, risk and operational costs, and customer purchasing behaviour.

NON-LIFE LONDON

STAR1851

Our client is seeking a qualified non-life actuary to lead the delivery of a wide range of capital modelling and capital management solutions. This is a fantastic opportunity to take your career to the next level.

Antony Buxton FIA Anto

LLouis Manson

Joanne Young Jo

Irene Paterson FFA Iren

MANAGING DIRECTOR MAN

MANAGING DIRECTOR M

OPERATIONS DIRECTOR OP

PARTNER PAR

THE ACTUARY • February 2015 www.theactuary.com M +44 7766 414 560 E antony.buxton@staractuarial.com

Recruitment Jan Feb15.indd 48

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

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

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

27/01/2015 13:04

LI FE www.theactuaryjobs.com

RI SK PENSI ONS I NVESTM ENT "$56"3*"- 1045 3&$36*5&3 0' 5)& :&"3 t t LIFE REPORTING

£ excellent + bonus + benefits

PRICING ACTUARY - LIFE

£ excellent + bonus + benefits

LIFE LONDON

STAR2251

up to £80k + bonus + benefits

LIFE LONDON

STAR2257

LIFE LONDON

STAR2328

Leading client seeks qualified life actuary to take up a key role within its Solvency II workstream.

The successful candidate will review and interpret the Solvency II Directive and produce valuation modelling methodology papers.

Major life insurance company seeks a qualified life actuary to provide support in the delivery of reporting requirements and risk capital metrics, including relevant aspects of business planning and actuarial management information.

Leading insurer is seeking a qualified life actuary to manage its broker pricing strategy and performance, develop price-elasticity models, and assimilate pricing with capital requirements.

ALM LIFE ACTUARY

LIFE CONSULTANT - ECONOMIC CAPITAL

ACTUARIAL LIFE CONSULTING

£ excellent + bonus + benefits

£ excellent + bonus + benefits

£ excellent + bonus + benefits

LIFE INVESTMENT LONDON

STAR2275

LIFE LONDON

STAR2291

LIFE LONDON OR EDINBURGH

STAR2297

Develop your strong communication skills and technical experience into a stellar career with this global consultancy, who are seeking qualified life actuaries with investment experience to lead teams and projects.

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

Leading finanial services firm has an exciting opportunity for a part-qualified actuary to develop an impressive range of commercial consulting skills that will increase career options and opportunities.

MAXIMISE YOUR UTILITY - LIFE

LIFE CONSULTING - EDINBURGH

ALM RISK ANALYST - LIFE

£ excellent + bonus + benefits

£ excellent + bonus + benefits

£ excellent + bonus + benefits

LIFE BRISTOL

STAR2314

LIFE EDINBURGH

STAR2315

LIFE RISK INVESTMENT BRISTOL

STAR2272

Leading client seeks exceptional life actuaries to join its growing team at this momentous time. Please contact us to discuss these exciting new roles.

Major consultancy seeks talented, motivated part-qualified and qualified life actuaries looking to further their careers and broaden their horizons within an exceptional environment.

Market-leading life company has an exciting opportunity for a part-qualified actuary with ALM skills to support the ‘first line of defence’ management of the financial risk of the assets relative to the liabilities for the business.

PLANNING & FINANCIAL SOLUTIONS

PROTECTION REPORTING TEAM

MODELLING & SYSTEMS

£ excellent + bonus + benefits

£ excellent + bonus + benefits

£ excellent + bonus + benefits

LIFE SOUTH COAST

STAR2321

LIFE SOUTH COAST

STAR2322

LIFE SOUTH COAST

STAR2323

Leading insurer has a number of exciting opportunities for part-qualified actuaries to take responsibility for establishing and then maintaining an understanding of systems used within the actuarial team.

Seeking part-qualified life actuaries to be responsible for delivering the reporting and analysis on a wide range of reporting metrics (ICA, Solvency II, IFRS, Peak 1, Peak 2) for all Protection business.

Our client seeks actuarial analysts to deliver recommendations and solutions to business problems and to play a leading role in the identification and proposal of possible improvements to new systems and procedures.

MANAGEMENT CONSULTANCY

REWARD DIRECTOR

COMMERCIAL FOCUS - PENSIONS

£ excellent + bonus + benefits

£ excellent package

£ excellent + bonus + benefits

PENSIONS MIDLANDS

STAR2089

Leading financial services firm has a number of excellent opportunities for high-calibre part-qualified and qualified actuaries to join its growing team.

PENSIONS LONDON

STAR2310

Global professional services firm has an unrivalled opportunity to shape, drive and lead the Reward division of its National practice.

You will develop and build significant and sustainable revenue streams.

PENSIONS LEEDS MANCHESTER STAR2288 & STAR2289 Seeking part-qualified pensions actuaries with a commercial focus and experience of corporate and trustee pension issues to provide support to a wide range of projects, including benefit change and scheme design.

Star Actuarial Futures Ltd is an employment agency and employment business

SOLVENCY II ACTUARY - LIFE

www.staractuarial.com IN-HOUSE PENSIONS

PENSIONS INVESTMENT SPECIALIST

INVESTMENT ANALYST - EDINBURGH

£ excellent package

£ excellent + bonus + benefits

£ excellent + bonus + benefits

PENSIONS INVESTMENT LONDON

STAR2273

Leading client seeks a qualified actuary with pensions and investment experience to take up a senior management position within its in-house pensions risk management team.

INVESTMENT SCOTLAND

STAR2255

Our client is seeking a qualified investment professional with LDI experience to provide, develop and design investment solutions for prospective and existing pensions clients.

INVESTMENT EDINBURGH

STAR2319

Leading investment consultancy is seeking a part-qualified actuary to support a variety of client services, participating in the development of client deliverables and assisting in the completion of asset transfers.

Lance Randles MBA La BA

Peter Baker

Paul C Cook

Clare Roberts C

Jan Sparks FIA

ASSOCIATE DIRECTOR AS

ASSOCIATE DIRECTOR ASSOC

ASSOCIATE DIRECTOR ASSOCI OR

SENIOR CONSULTANT S

SENIOR CONSULTANT

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

Recruitment Jan Feb15.indd 49

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

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

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

February 2015 • THE ACTUARY 49 www.theactuary.com M +44 7477 757 151 E jan.sparks@staractuarial.com

27/01/2015 13:04

Appointments GENERAL INSURANCE - UK Reserving Actuary x 3 - Lloyd’s London Paul Francis £120,000 + Bonus + Benefits

G.I. Chief Actuary Sarah Robins

I have three fantastic opportunities for actuaries who enjoy/want to work in newly created/Greenfield/start-up type environments.

Excellent opportunity to a create team, department and workstreams from scratch. Knowledge of Lloyd’s, SII and TP’s an advantage.

My client is a multi-platform insurer with many routes to market.

They are looking for a Chief Actuary to lead and develop the actuarial function. You will be responsible for the development of a Solvency II capital model as well as managing the reserving process. You must be a qualified actuary.

G.I. Capital Manager Sarah Robins

Pricing Actuaries Rob Bentham

Midlands £75,000 + Bonus + Benefits

A well-known personal lines insurer is looking for a Capital Manager to join their actuarial services team. Ideally you will be a nearly/newly qualified actuary with personal lines general insurance experience.

London Market Pricing Rachel Kelly

London £65,000 + Bonus + Benefits

My client, a well-established Lloyd’s business is seeking a partqualified actuary with pricing experience to take up a challenging and exciting role within their pricing team. You will enjoy daily interaction with underwriters in this highly commercial role.

London £110,000 + Bonus + Benefits

London £65,000 - £110,000

A number of clients are looking for Pricing Actuaries (NNQ and Qual); these include reinsurers, London market and Lloyd’s businesses. All backgrounds considered; casualty, property, financial and specialty lines knowledge would be beneficial.

Senior Actuarial Analyst Ross Anderson

London £55,000 + Bonus + Benefits

My client, a prestigious specialist reinsurer, is looking for a bright and innovative student actuary to join their team. Reinsurance reserving experience would be beneficial for this high profile, autonomous London market opportunity.

CONTRACTS - GENERAL INSURANCE - UK Reporting / Reserving Processes Elise Ogden

London £800 - £1,200/day

We have seen a shift in demand towards reserving/reporting process development for Solvency II. If you have experience of setting up new reporting processes and creating reporting templates please get in touch.

Reserving Actuary Elise Ogden

UK Wide £900 - £1,100/day

I have a number of clients looking for reserving actuaries. Candidates will ideally be qualified with personal lines, commercial lines or London market reserving experience. Some capital experience is an advantage.

LIFE INSURANCE - UK Capital Actuary Clare Nash

London (City) £90,000 - £120,000 + Package

Longevity Specialist Hugo Chambers

London (City) £100,000 + Package

I am currently working on a retained assignment for a City based player. I would like to speak to qualified actuaries (with five years + PQE) with strong capital management experience. Life office and consultancy experience equally advantageous.

Exciting opportunity for a specialist Longevity Actuary to join a fastgrowing life insurance consultancy. My client is seeking a subject matter expert, preferably with prior consultancy experience, to join their senior management team. Excellent communication skills are essential.

Product Development Actuary Canary Wharf Natalie Lightfoot £80,000 - £95,000 + Package

Unit-Linked Pricing Actuary North London Richard Howard £70,000 - £90,000 + Bonus + Benefits

I am a business partner to an international insurer who seeks to appoint a qualified actuary. Knowledge of unit linked or investment products is beneficial but not a must. Strong communication skills as well as management experience are essential.

We have an exciting mandate to recruit a qualified Unit-Linked Pricing Actuary. This market-leading insurer are looking to hire a senior candidate to head up their unit-linked pricing team and the role will play a pivotal role in the development of this area over time.

Marketing Actuary - Reinsurance Clare Nash

Qualified Pensions Actuary Hugo Chambers

London (City) £75,000 + Package

EXCLUSIVE ROLE: I am working exclusively on behalf of a global reinsurer who seeks to appoint a nearly/newly qualified actuary.

Pricing experience beneficial but not a must. Propensity to pick up new skills quickly and strong communication skills are key.

UK Wide £70,000 + Excellent Package

Opportunity for a Qualified Pensions Actuary to progress their career in a leading life and pensions consultancy. My client is seeking a strong technical skillset along with proven client-facing experience to help support continued growth of their core business.

CONTRACTS - LIFE INSURANCE - UK Senior Moses Modeller Kaylash Kukadia

South East £850 - £1,100/day

I have a specialist role requiring an Actuary (or qualified by experience) with strong Moses and Solvency II experience. Ideal for individuals from consultancy.

50

THE ACTUARY • February 2015 www.theactuary.com

Recruitment Jan Feb15.indd 50

Solvency II Methodology Actuary Benjamin Moses

London £750 - £950/day

My client is looking for PQ/qualified actuaries to assist in their Solvency II methodology development. It is important that the candidate has worked on Pillar I work streams previously and has a solid understanding of current regulatory requirements.

27/01/2015 13:04

www.theactuaryjobs.com ASIA Director Philip Chau

Hong Kong Up to HKD$2million

Leading multinational insurer seeks a qualified actuary with extensive reporting experience or pricing/products experience to manage a large team in Hong Kong. You must have over 10 years of experience with previous team management experience.

Good communication skills a must.

Hong Kong Up to HKD$1.2million

Regional Senior Manager - Prophet Rhoda Rivera

Top global life insurer seeks a qualified actuary to work within their regional prophet team.

Candidates must have at least eight years of experience in prophet stochastic and ALS modelling with EV, Solvency II and economic capital knowledge. Strong communications skills a must.

Executive Director - Business Development Hamza Mush

Hong Kong/Singapore £170,000 + Bonus (15% tax)

My client is a global market leading reinsurer who are looking for a senior qualified actuary to support their continued aggressive expansion in Asia. This individual will be responsible for business development and execution of transactions in their core markets.

Regional Actuary Toby Weston

Hong Kong £130,000 + Bonus (15% tax)

My client is a global composite insurer who are developing their Asian G.I. business and looking for a senior qualified actuary. This individual will report to the board and be responsible for capability and business development across South East Asia.

ERM Actuary Toby Weston

Hong Kong £80,000 + Strong Benfits (15% tax)

Global insurance business seeks senior ERM & Capital Actuary to develop and execute risk and capital management strategies across the Asia region. Extensive non-life actuarial experience and commercial acumen required, Asian languages preferred.

Regional Capital Actuary Gary Rushton

Singapore SGD$220,000 + Bonus + Benefits

This is a unique opportunity to work within an intimate team of creative and entrepreneurial actuaries structuring capital management solutions. Required: Fellow with detailed capital management and/or pricing experience.

EUROPE 2 x Account Director Actuarial Niels van Nieuwkerk

General Insurance – UK Paul Francis

0207 649 9469

Rob Bentham

0207 649 9351

Sarah Robins

0207 310 8552

Rachel Kelly

0207 310 8579

Ross Anderson

0207 649 9357

Rob Gormley

0207 310 8546

Contracts - G.I. - UK Elise Ogden

0207 649 9355

Life Insurance - UK Clare Nash

0207 649 9350

Richard Howard

0207 649 9356

Natalie Lightfoot

0207 310 8547

Hugo Chambers

0207 310 8642

Contracts - Life Insurance - UK/Europe Benjamin Moses

0207 310 8793

Kaylash Kukadia

0207 310 8581

Ani Pannell

+353 144 75975

Asia Gary Rushton

+852 5804 9223

Toby Weston

+852 5804 9042

Philip Chau

+852 5804 9287

Hamza Mush

+852 5804 9048

Rhoda Rivera

+852 5804 9225

France Rotterdam €100,000 - €150,000 + Benefits

Emérique Opou

+33 1 76 77 46 30

Our client is an international reinsurance broking specialist. The Benelux CEO seeks to recruit two senior account directors to further develop presence in the Dutch market both in Life and G.I. EC/S2 experience and Dutch market knowledge are essential.

Agathe Ibazizen

+33 1 76 77 46 31

Head of Financial Risk - Insurance Alessio Montaruli

Patrick McMahon

+353 1 437 0625

Rick Davis

+353 1 685 9059

Milan €100,000 +

Ireland

Our client, an international European insurer, is recruiting for a Head of Financial Risk with responsibility for financial and credit risk carrying capacity for the Italian business unit. This position is a first line of report into the CRO. English and Italian required.

Benelux

Life Actuarial Opportunities Patrick McMahon

Germany

Dublin Up to €90,000 + Bonus + Benefits

I am working on a number of exciting opportunities in Dublin at the moment across all areas of life insurance. The positions range from part-qualified level up to a number of years post-qualified experience. Knowledge of Solvency II, VA, risk and valuations a benefit.

Pricing Actuary Ani Pannell

Dublin €750 - €950/day

My client, a Dublin based insurer require a Pricing Actuary to join on a long term contract.

The individual will be required to work in partnership with the business to develop pricing strategies and design for new product. Knowledge of modelling packages will be advantageous.

G.I. Reinsurance Pricing Actuary Erica Marriott

Germany £££Competitive + Bonus

Niels van Nieuwkerk

+31 2090 0033

Manuel Lovell

+49 89 2109 3362

Emina Biscevic

+49 89 3803 8965

Italy Alessio Montaruli

+39 02 3600 6810

Switzerland Audrey Dadon

+41 43 508 0444

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

Qualified actuary with at least five years of experience to work as part of the global pricing team. You will be pricing a range of short and longtail business and working closely with both underwriters and client managers. German language ability is not necessary.

General Contact Details:

E

actuary@ojassociates.com

Pricing Actuary - Reinsurance - Non-Life Audrey Dadon

W

www.ojassociates.com

Zurich £££Negotiable

The reinsurance market in Zurich remains buoyant and several of my clients are hiring nearly, or newly qualified Pricing Actuaries. Demand is highest for those who have longtail lines/casualty experience. You’ll work autonomously and closely to underwriters.

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Appointments www.the-arc.co.uk

The Actuarial Recruitment Company

A fresh approach

Reserving Analyst London

General Insurance To £75K

Varied Role London

General Insurance Circa £35K

This international insurance company is looking for a senior actuarial analyst to support the reserving work for the business globally.

The role will be involved in quarterly reserving and reporting and will work closely with claims and underwriting teams to update reserve estimates. Work will also include development of the reserving models, processes and new analytical techniques. Good communications skills will be required as presentations to senior management and underwriters will be expected. Ref: ARC26272

A graduate or ideally someone with a small amount of work

Reinsurance Pricing London

Reserving & Capital Role London

General Insurance To 100K

experience is required for a varied role in a Lloyd’s managing agency.

The role will include involvement in reserving, capital modelling, business planning, Solvency II work as well as pricing support. Our client is looking for a candidate with a strong academic background, good interpersonal skills and excellent IT abilities. Ref: ARC26270

General Insurance To 100K

Working for this blue chip Lloyd’s business, this role will be the main

Our client, a Lloyd’s Managing Agency, is looking for a qualified

point of call with underwriters for the reinsurance pricing in London.

actuary to support the business across reserving and capital

The roleholder will work alongside other actuaries in the pricing

modelling work. Very good communication, project management

team and will be involved with case pricing, rate monitoring and

and technical skills will be required and our client would be

pricing model development. Prospective candidates must have a

particularly interested in candidates who have a consultancy

background in London Market pricing, particularly of the reinsurance

background. Remetrica knowledge would be beneficial.

market. Ref: ARC26268

Ref: ARC26271

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

0781 333 7891 0781 398 9016

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

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