ACTUARIAL POST FOR THE MODERN ACTUARY JULY 2019
PREDICTING THE RISK OF CANCELLATION
THE ROOT OF PENSION TRANSFER EVIL ALL CHANGE FOR SCHEME FUNDING? INSURANCE, CLIMATE RISK & SUSTAINABILITY
TAIT’S MODERN PENSIONS
RETIREMENT PUZZLE page 1
PENSION PILLAR
page 2
Actuarial Post Team EDITOR Jennifer Redwood jennifer@actuarialpost.co.uk SUB EDITOR Jennifer Stone article@actuarialpost.co.uk ADVERTISING MANAGER Alan Burns alan@actuarialpost.co.uk
www.actuarialpost.co.uk @actuarialpost @APjobs Head Office 13 Vale Rise Tonbridge Kent, TN9 1TB 01732 359488
EDITOR’S NOTE This issue sees Stuart Goldsmith from LexisNexis look at Predicting the Risk of Cancellation and how the industry may avoid the heavy cost of said cancellations. Dale Critchley looks at an equally contentious matter with an article on the focus on charges in pension schemes. Carlos Montalvo, Partner at PwC looks at the role of Insurance on Sustainability and Climate Risk whilst Tom Murray delves into the world of scams by asking “Is ColdCalling the real Problem”? The rest of our regular authors also give us their views on events, including Zoe Bolton continuing her series of interviews with leading actuaries within Lloyd’s Broking houses by interviewing Charlotte Healy from Marsh. Another busy magazine for you to peruse over a glass of Pimms and Wimbledon, whilst enjoying the lovely weather. We look forward to welcoming you back next month when we can also discuss our new Prime Minister, will it be Boris or Jeremy, we will know for sure on the 22nd July.
Jennifer Redwood
Legal Notice All rights reserved. No part of this publication may be reproduced or transmitted without the prior permission of the publisher in writing. Whilst every care has been taken to ensure the accuracy, Actuarial Post cannot accept responsibility for loss of business to those referred to in thie magazine as a result of errors.
page 3
ACTUARIAL POST RECRUITER OF THE YEAR 2012 . 2013 . 2014 . 2015 . 2016 . 2017 . 2018
HEAD OF PRICING GI BR ALTAR Reporting to the Insurance Director £ competitive salary and package plus relocation
An exciting opportunity has arisen to be part of a fast-growing multi-national business operation which provides specialist travel insurance in the UK, Europe and Australia specialising for the over 50’s and/or customers who require cover for pre-existing medical conditions. You will lead and own tasks such as: conduct data analysis and deliver pricing strategy, deliver complex price optimisation models and manage price changes. In addition, you will monitor performance and track market position, create experiments to investigate price elasticity and to assess lifetime value/customer behaviour. Ongoing testing/ reviewing of the pricing infrastructure will be essential and you will recommend improvements. Plus you will work closely with key internal stakeholders from Gibraltar and the UK, such as operations, sales, marketing, finance and IT to deliver projects. You will possess previous experience in a similar role, have a mathematical or scientific background and be educated to degree level. You will have an ability to present complex technical results in a non-technical way, have knowledge of using SAS and/or VBA and be familiar with GLMs and predictive analytics. In addition, we are seeking a leader and team player with excellent oral and written communication skills.
About AllClear Our employees are at the heart of our business. We know it’s important to hire the best people, to create a respectful and empowering culture and make it possible for employees to thrive, both inside and outside of work. With a career at AllClear you’ll discover just that! Each of us has more potential than we realise. Our goal is to unlock that potential! By providing opportunities for career development, we ensure growth and sustainability of our single largest investment – our employees.
Please contact James Harrison of
James Harrison
ASSOCIATE DIRECTOR
M: +44 7591 206 881
for further information.
P LE A S E CONTACT US AT ANY TI M E TO D IS C USS Y OUR RECRU I TM ENT NEEDS
E: james.harrison@staractuarial.com
4 +44 20 page 7868 1900
staractuarial.com
CONTENTS 10
14
17
16
News
6
Movers & Shakers
8
City Dealings
9
Predicting The Risk of Cancellation
10
The Root of Pension Transfer Evil
12
Retirement Puzzle
14
Solvency II & Beyond
17
Is Cold Calling the Real Problem
18
Lights, Camera, Actuary
20
All Change for Scheme Funding
23
Do Pension Charges Matter?
24
20
page 5
NEWS JULY Women’s state pension age will never go back to 60 As campaign group, Back to 60, begins a landmark High Court battle to reverse the decision to equalize men and women’s state pension age, Stuart Price, Partner and Actuary at Quantum Advisory, looks into their chances of winning. Stuart said: “The state pension age for women
was increased to 65 earlier this year to bring it in line with men for the very first time. While obviously frustrating for those caught in the middle, the decision was made back in 1995 during John Major’s Conservative government. The age at which both genders can collect their pensions will further
Zombie firms with DB Pension Schemes may have no way out Further analysis from KPMG UK finds that a fifth of so-called ‘zombie firms’ have defined benefit pension (DB) schemes which could put pension trustees and sponsors in a precarious position. Of the circa 21,000 UK private companies that KPMG analysed, up to one in twelve (8%) currently display three or more zombie-like symptoms – companies under sustained financial strain. Out of this population KPMG estimates that a fifth (or around 350 companies) will have DB... READ MORE
increase to 66 by October 2020 and 67 in 2026, with a possible increase to 68 by 2039 to reflect the fact that people are living longer. “I certainly sympathize with women born in the 1950s who have been most affected by the changes, READ MORE
New research reveals extent of gender pension gap
60
Of those without a pension plan, when it comes to paying for their retirement, 65% say they will be reliant on the State Pension; 34% on other savings and 21% on their partner’s pensions, savings and investments. Nearly one in five – 17% - claim they will not be able to stop working. READ MORE
New research from Willis Owen reveals 34% of women claim they don’t have a pension plan, whilst the corresponding figure for men is 17%. Of those women without a pension, 41% have no intention of starting one, whilst 17% don’t intend to start paying into a pension until they are at least 40. Nearly one in ten (9%) don’t anticipate starting to pay into one until they are over 50. The corresponding figures for men without pension plans are 34%, 13% and 4% respectively.
page 6
NEWS How many years of care would your property pay for? As Brits face up to the prospect of paying more towards their care in later life, Just Group analyses the regional variations in care and property costs to see how many years of care your property could buy.
Amendments to IFRS17 should prompt action from insurers
The UK population is ageing, with the number of over 85’s expected to more than double to 3.2 million by 2041 and account for just under 5% of the total population. With council budgets being squeezed, it looks increasingly likely that people will have to take greater responsibility for meeting the cost of their own care in later life.
Proposed amendments to the new insurance accounting standard, IFRS® 17 Insurance Contracts, were published today by the International Accounting Standards Board (the Board). The amendments will ease the efforts of insurers worldwide to implement a standard that will bring increased transparency about the profitability of their business, greater comparability, and more insight into their financial health than ever before, according to KPMG International.
complete picture of what the final standard will look like. For any insurers experiencing project fatigue, the proposed amendments are a wake-up call to assess their progress and reinvigorate their implementation of IFRS 17. For those that have yet to make meaningful progress, consider it the starting gun for a marathon. The amendments are helpful, but implementing IFRS 17 is still a complex and significant undertaking requiring substantial effort.”
With billions of pounds tied up in the value of retired people’s homes, property is an asset that looks likely to make up a significant proportion of how people fund this READ MORE
Mary Trussell, KPMG’s global lead for insurance accounting change, commented: “With the Board having published its proposed amendments to IFRS 17, we now have a
Since IFRS 17 was issued in May 2017, the Board has been monitoring and supporting implementation and has learned much about insurers’ and other... READ MORE
page 7
Five million people playing inheritance roulette Over 5 million UK adults aged under 55 have changed their financial plans as a result of what they expect to inherit, according to research by Canada Life. It warns that people are playing a type of inheritance roulette, with many saving less and others delaying house moves as they bank on a legacy windfall. The research finds that 15% of UK adults aged between 16 and 54, or more than 5 million adults, have revised their financial plans based on inheritance expectations. The most significant alterations have been made to saving plans and property purchases. The largest proportion of changes by under 55’s were made to their saving plans, with half of people either saving less (25%) or saving READ MORE
MOVERS & SHAKERS The latest moves and appointments from the actuarial marketplace Barnett Waddingham appoint seven new partners
Bought By Many LCP announce the appoint actuary appointment of a Charlotte new CEO Halkett as CCO
LCP has updated its management structure with three key new appointments. The changes have been made to position the firm for continued growth, support succession planning, and focus on the key business priority of developing talent.
Barnett Waddingham is proud to announce the appointment of 7 new Partners and the promotion of 28 Associates from 1 June. A further 42 existing Associates have been recognised for their contribution to the firm and been awarded the title of Principal this year. These are all as a direct result of Barnett Waddingham’s continued growth, investing in our people across a breadth of services and locations to ensure we continue to deliver a first-class service to all our clients that goes beyond their expectations. The promotion of both Andy Parker and Sonia Kataora to Partner significantly strengthens our senior ongoing advisory team for both trustees and sponsors of DC schemes by doubling our number of partners in this area, from two to four, to reflect the growing demand for these services in the market. The promotion of Chris Hawley and John.. READ MORE
Royal London appoints new Group Chief Executive
Bought By Many is delighted to reveal Charlotte Halkett has joined the business as its first Chief Commercial Officer. Bought By Many has grown its pet insurance business more than 100% year on year since the products launched in 2017, while maintaining industry-beating customer satisfaction scores with unique products built around customer needs. Charlotte will be a key leader in pushing Bought By Many to hit its further ambitious growth targets.
Aaron Punwani becomes LCP’s Chief Executive Officer and has overall responsibility for defining and delivering the firm’s strategy. Aaron has driven many of the firm’s client-focused innovations over the last decade and advises the trustees or corporate sponsors of some of the UK’s largest pension schemes. In 2016 Aaron received an Institute and Faculty of Actuaries President’s Award, for “unstinting commitment... READ MORE
Charlotte is an insurtech veteran, with an insurance career initially forged as a general insurance actuary READ MORE
Royal London announces that Barry O’Dwyer has been appointed Group Chief Executive subject to regulatory approval. He is expected to take up his appointment in September 2019. Further to the announcement of 11
December 2018, the Board confirms that Phil Loney, currently Group Chief Executive will stand down on 28 June 2019 whilst remaining available to the Group for the remainder of the calendar year. Kevin Parry, Chairman of Royal
page 8
London said:“After a rigorous selection process, the Board is pleased that Barry O’Dwyer has been appointed Group Chief Executive. His vision for our industry coupled with extensive experience of retail and READ MORE
CITY DEALINGS Keeping up to date on acquisitions, mergers and the dealings of companies in the city
Legal and General in largest UK bulk annuity for Rolls Royce Legal and General Assurance Society Limited (“Legal & General”) today announces that it has entered into another record breaking bulk annuity transaction: a partial buy-in to buyout with the Rolls-Royce UK Pension Fund (“RRPF”), in excess of £4.6bn, covering the benefits of around 33,000 inpayment pensioners. Legal & General previously partnered with Rolls-Royce in 2016, completing a £1.1bn buyout for the Vickers Group Pension Scheme, whilst Legal & General Investment Management Limited currently manages a significant proportion of READ MORE
TPR publishes new guidance for DC investments
NEIL WOODFORD AND ILLIQUID ASSETS READ MORE
Updated DC Investment Guidance has been published by The Pensions Regulator (TPR). The guidance now incorporates regulations which come into force from October 2019 and October 2020 and responds to industry requests for further guidance in certain areas. David Fairs, Executive Director of Regulatory Policy, Analysis and Advice at TPR, said: “Good governance and the management of investment risk in pensions schemes is fundamental to provide savers with a good retirement. “Climate change is a core financial risk which trustees will need to consider when setting out their... READ MORE
page 9
Laura Mason, CEO, Legal & General Retirement Institutional (“LGRI”), said:
“Today’s announcement of the Rolls-Royce trustee’s transaction with Legal & General demonstrates the strength and expertise of our team and our ability to handle transactions of all sizes and complexity. Working collaboratively with the scheme and its advisors, we can provide the security of insurance, whilst also ensuring that the scheme members benefit from the quality customer service for which the Legal & General group is known”
Aon and CoverWallet announce commercial partnership Aon and CoverWallet have announced that they have entered into a commercial agreement to serve clients in Australia. The parties are in the process of expanding this partnership to additional geographies, including the United States. The current partnership provides Aon with additional access to the growing $100 billion small and medium enterprise (SME) digital insurance market segment, while allowing CoverWallet to expand its reach into new channels and geographies through Aon’s global capabilities and professional network. Aon will partner with CoverWallet... READ MORE
INFORMATION EXCHANGE PREDICTING THE RISK OF CANCELLATION
Motor insurance policy cancellations in the personal lines market represent a huge cost to insurance providers. When a customer decides to cancel their policy – for whatever reason the insurance provider loses marketing and administration costs, as well as potential aggregator fees. Also, many insurance policies are paid for using direct debit- so if a customer cancels their instruction too early, the insurance provider is also faced with a bad debt that may be difficult to recover. This isn’t a small number of cases. In the last year alone, there were 1.3 million new business cancellations. At LexisNexis Risk Solutions we estimate this all mounts up to between £25 and £75 in cost per policy cancelled. Scaling this up to an insurance provider with 100,000 policies on their books, a cancellation rate of around 5% per year, for example, equates to a substantial loss of anything from £125,000 to £375,000 per annum to one business. A lost customer is also a loss in potential lifetime value (LTV) through future potential renewals as well as cross selling opportunities. Predicting the likelihood of cancellation prior to policy inception has been nigh on impossible for the sector up to now. Aside from the fact that a new customer is not required to state if they have decided to cancel a policy in the past during the application process, there has been no firm evidence to show history repeats itself and that people who cancel tend to do so again and again. But risk of cancellation isn’t the only risk to be considered – are people who choose to cancel more likely to claim or commit fraud? These questions can now be answered through a market wide contributory database of motor policy history data combined with the science of predictive data analytics. The LexisNexis® Motor Policy History database now comprises policy data from over 94% of the personal lines motor insurance market. Detailed retrospective analysis of a substantial proportion of this data set has confirmed that past cancellations do indeed correlate to future cancellation risk. If an individual has ended a policy prematurely in the past, they are more likely to do so in
future. In fact, the more policies they have cancelled, the more likely they are to repeat the behaviour. Looking at claims history in conjunction with policy history, these individuals present an average 70% higher claims cost than someone with no prior policy cancellation . Gaps in cover also indicate higher risk of cancellation – the more gaps between policies, the higher the risk of mid-term cancellation. Our analysis identified that between 10% and 30% of the customers currently on insurance providers’ books have had a cancellation in the past. Five million current policyholders have cancelled an insurance policy within the past five years; 1.4 million have cancelled two policies . The timing of the cancellation is also a valuable insight for the sector. When someone purchases a policy to start the same day, they are twice as likely to cancel early. This is more than double the average. This is hugely valuable insight for insurance providers, allowing them to price for the risk of cancellation based on policy commencement date. And whilst you might expect most cancellations to occur within the cooling-off period, only 15% were cancelled in the first two weeks, 37% within 16-100 days and a substantial 48% 101-364 days after purchasing the policy . Past cancellations can also indicate a higher risk of claims and fraud. Those with a current CCJ present are 64% more likely to cancel, and people who have attempted fronting at point of quote are twice as likely to cancel. Finally, we deduced that the less historical information there is available on the individual, the higher the risk of a future cancellation. Whilst this group may not represent a higher risk in terms of credit or claims, they do have an increased risk of cancellations. This perceptive new insight into cancellations is possible through data science and industry collaboration designed to gain a broader, more meaningful view of the customer. Insurance providers can now understand where the cancellation risk lies within their own customer base. They can then use this intelligence to help set new customer pricing strategies and offer payment terms based on the customer’s perceived cancellation risk.
• Source – analysis of a substantial proportion of the LexisNexis® Motor Policy History database which comprises data from 94% of the motor insurance market • Source – analysis of a substantial proportion of the LexisNexis® Motor Policy History database which comprises data from 94% of the motor insurance market • Source – analysis of a substantial proportion of the LexisNexis® Motor Policy History database which comprises data from 94% of the motor insurance market • Source – analysis of a substantial proportion of the LexisNexis® Motor Policy History database which comprises data from 94% of the motor insurance market • Source – analysis of a substantial proportion of the LexisNexis® Motor Policy History database which comprises data from 94% of the motor insurance market
page 10
by Stuart Goldsmith, Product Manager at LexisNexis Risk Solutions, UK & Ireland
page 11
TAIT’S
MODERN
PENSIONS
Is contingent charging “the root of all pension transfer evil”? The debate on contingent charging for pension transfer advice refuses to go away, with one commentator branding it “the root of all transfer evil”, but is it really? The Work and Pension Committee (WPC) thinks so. Following their inquiry into charging structures for financial advice they announced they intend to push for a ban on contingent charging for pension transfers if the Financial Conduct Authority (FCA) does not act. Prior to that the FCA itself confirmed in its 2019/20 business plan that it is still considering whether a ban would be appropriate and will consult further on the subject in 2019. The case for a ban The WPC, and to some extent the FCA’s, case is that contingent charging creates “an inherent conflict of interest”, with advisers consciously or unconsciously leaning towards the option that would result in their being paid. Those for a ban, including many financial advisers, believe contingent charging was a key driver of the advice given to members of the British Steel Pension Scheme (BSPS) to transfer out and into a personal pension, instead of remaining in the scheme or transferring to the replacement BSPS 2 scheme. The case against a ban Supporters of the contingent charging model argue it makes advice more accessible. Taking payment from the pension funds of those who go ahead with a transfer allows them to offer a “free” analysis service to those who might otherwise be unable to afford it. In an environment where financial advice is mandatory for transfers above £30,000 this argument does have some weight. Moreover, they argue, a ban on contingent charging would not actually prevent the unsuitable advice identified by the regulator, and the FCA should focus on finding more effective ways of tackling this issue. Other arguments 1. Fairness Most service industries relate their charges to work done per individual or firm. In other words, the person who benefits pays for the work carried out. While contingent charging is undoubtedly effective in mollifying those who resent being forced to take advice, it is less clear if those who do go ahead realise that they are paying not just for their own advice but for others as well. 2. Cashflow
number of positive recommendations to transfer is also advantageous for the cashflow of the advice firm, by ensuring payment is directly related to the time and resource spent on each customer. A well-run business should be based on certainty of payment, not a contingency. 3. Value of advice Carrying out analysis of a defined benefit pension scheme is a long and complicated process and merits payment, regardless of whether a transfer is subsequently arranged. Offering this service “for free” totally devalues the worth of a service which is delivered by the most highly-qualified people in the industry. Would it work? There is little doubt in the regulator’s mind that advice on pension transfers does not meet the standards it expects. The question is, would a contingent charging ban make any difference, or would it be enough to simply make people more aware of the conflicts of interest? It is certainly true that a ban on contingent charging would not in itself prevent unsuitable advice, but no single solution would. Equally if the public were told in no uncertain terms of the conflict of interest that may be enough to prevent some harm but it would be difficult to do this in such a way that it doesn’t become just another unread clause in the Terms and Conditions. Opponents of the ban also state that it would simply lead to advisers “gamifying” the system in different ways, for example by reducing initial charges and raising ongoing fees. This suggests that we are still a long way from being a profession which offers transparent and comparable fees. Contingent charges are much harder to compare, since they are dependent on a factor which is specific to individual firms. The FCA have recently expressed dismay at the high proportion of positive recommendations made by some firms, up to 65% of those looked at in some cases. There are some valid reasons for this, however it does become much harder to argue so long as contingent charging is allowed to muddy the picture. Summary My view, and that of many advice firms, is that the conflict of interest argument is valid and does little to promote the professional image most of us are trying to project. Contingent charging may not be the evil itself, but it is not unreasonable to state that it is part of the root cause.
Relating charges to the work done rather than the
page 13
by Fiona Tait Technical Director Intelligent Pensions
RETIREMENT PUZZLE
WHAT CAN LEAD TO A 5% DIFFERENCE IN FUNDING LEVEL?
An inaccurately implemented hedge can lead to a 5% difference in funding level… Over the last decade, LDI has become a popular solution among UK pension schemes. While the consensus has shifted to support for hedging interest rate and inflation risks, the significance of some of the implementation “details” is still often understated. There are a number of reasons why a scheme’s LDI portfolio can fail to match the liabilities it is designed to hedge. Not managing them carefully can result in funding level deviation of as much as 5%. What are some of the sources of hedge inaccuracy? Hedge discrepancies can arise from a wide range of reasons. The high-level categories are below:
page 14
These examples represent just a selection of potential issues. In practice, discrepancies can arise from a much wider range of reasons, and the list here is by no means exhaustive. How to estimate the impact of hedge inaccuracies? Start with a standard UK Defined Benefit (DB) pension scheme that was 80% funded with £1bn of liabilities (on a gilts flat basis) as at 31 December 2010. Its asset allocation is 60% equities and 40% LDI, the latter of which is used to back a hedge up to the funding ratio (i.e. 80% of the liabilities). Next, project forward the scheme’s funding level on a quarterly basis until 31 December 2018 assuming an “ideal” LDI hedge that does not suffer from any of the hedge inaccuracies listed above. Repeat the analysis above 7 times, each with a different source of error in the hedge. Finally, compare the funding ratios for each quarter for the “ideal” and each of the “inaccurate” series, reporting the maximum deviation in funding level and deficit. How much of an impact does hedge inaccuracy have on funding level and deficit? The table below sets out the results of our analysis, showing the deviation (in funding level and deficit terms) between the “ideal” hedge and the different “inaccurate” versions:
page 15
Hedging to the funding ratio is a significant mitigator of a number of these inaccuracies. If liabilities are overstated to 110%, funding level will be understated by 1/110% and the product of the two (amount to be hedged) will remain unchanged. If hedging to an absolute level, over- or understating of the liabilities will result in an inaccurate amount of hedge put on and these values would be meaningfully higher. This is one advantage of hedging to the funding level as a strategic choice. Conclusion The liability cash flows themselves are estimated based on actuarial assumptions, it makes sense to make the best possible use of the available information and hedge interest rate and inflation risks to those liabilities accurately if minimising unnecessary risk is a priority. This is because, as the analysis reveals, the way the LDI solution is implemented has a material impact on the funding ratio of the scheme. Attention should be paid particularly by pension schemes with very limited risk budget and low appetite for volatility. From experience, LDI portfolio “health checks� can help uncover current sources of inaccuracy. These can also be used as an opportunity to put the right governance structure in place for monitoring and making sure that the hedge remains accurate in the future.
by Alex White Head of ALM Research Redington
page 16
SOLVENCY II & BEYOND INSURANCE, CLIMATE RISK & SUSTAINABILITY: TURNING NEED INTO A VIRTUE by Carlos Montalvo, Partner, PwC
Following a speech I gave on ESG and Sustainability, I was asked by a colleague to address, in this column, an issue as close to my heart: The role of Insurance on Sustainability and Climate Risk. There is consensus that, in line with what Larry Fink expressed in his 2019 “Dear CEO” letter, long term strategies of financial institutions must encompass value creation for all their stakeholders, rather than focusing only on shareholders. One could consider happy employees and customers as the brain and lungs of any business, while good return to shareholders is the blood, and Social purpose the business’ heart, all are necessary and interconnected. How can then sustainability be successfully embedded in a business, its purpose and mindset? Firstly, regardless of the long term focus that Sustainability implies, progress has to start with short term tasks. Reorienting capital flows towards more sustainable investments, one of the objectives of the Commission Action Plan on sustainable finance, entails a risk: Whilst investing in “green” makes full sense, as it does, an underlying taxonomy to help us all speak the same language, not all “Green” investments will make similar sense from a risk-return view point, and regulatory incentives should not hide that fact. The temptation to reduce or relax due diligence on “green assets”, in particular where backed by regulatory incentives remains a high risk, albeit a known one. In my view, there is a clear precedent regarding regulatory treatment of infrastructures under Solvency II. The outcome of the approach taken has not met expectations. Shall we be able to take the right lessons, when it comes to setting proper incentives for green assets? Secondly, the traditional approach to risk management has been over-reliant on past experience (rear mirror approach), and this will not work when it comes to Climate Change, where once in a century is becoming the new normal. Here, the role of the regulator, “enhancing awareness” of risks stemming from climate change (e.g. via stress tests), must be combined with a holistic approach by firms, in terms of risk taking and managing, assets holding and risk appetite, both for direct as well as transition risks. Interestingly enough, this has the potential
to accelerate the transformation of insurance businesses, from mere risk taking to managing those risks. If we move from risk management to governance, I have been confronted with a number of insurers, belonging to large groups, saying that ESG and sustainability are issues addressed at group level, rather than at their own legal entity. The former regulator in me kicks in, and wonders whether I would accept a similar response on investment policies and risks… My response to it makes me think that we are not there yet. There is another issue worth raising, due to its impact on people: the Protection Gap, and the fact that (counterintuitively) it has increased in the last 20 years, both in developing countries and in developed ones. This is an area of great opportunity particularly for insurers, let’s not make it a lost one. An opportunity to enhance resilience to Climate risk via management of claims, underwriting and pricing processes, making steps to reduce the probability and impact of the next catastrophe, thus better protecting people.Yes, ladies and gents, Insurance can and should go beyond its mere role as institutional investor and embrace its very unique value proposition as business. The way Japanese society acknowledged the role of its insurers following the Fukushima catastrophe, shows us the way forward. We have been talking about incentives, awareness and opportunities for Insurance around Climate risk and Sustainability. Let me share an idea that I hope merits your attention: How about, when it comes to discussing incentives, moving out of the traditional focus on capital requirements and looking at the possibilities that resilience and building back better and safer brings to Society in terms of preparedness and reduction of the next hit? Recognizing such investments on pre-emption in the capital position of insurers not via (artificially) reduced requirements, but through effective recognition of them as risk mitigation techniques, could bring the right type of incentives. To be candid, the former regulator in me likes the idea! When it comes to sustainability, firms have a lot to do but even more to play for - there are opportunities to be taken by those who recognise them.
page 17
INNER WORKINGS IS COLD CALLING THE REAL PROBLEM?
by Tom Murray Head of Product Strategy LifePlus Solution, Majesco We all know the scenario; the phone rings and the screen shows “No Caller ID”. Should we answer or should leave it to ring out, assuming it is yet another call centre either trying to elicit our opinions in order to monetise them or else trying to sell us something we didn’t realise we needed? Many people regard the intrusion of cold-callers into our private lives as the ultimate invasion of our privacy and swear never to buy anything from them. Indeed, one of the key requisites of being a member of the tele-sales workforce is the ability not to take the level of rejection, and even abuse, too personally. Due to the number of financial scams that have been operated via this sales method in the UK, cold-calling has been banned for pensions. Far too many new retirees were convinced to move their hard-earned pensions into ‘high-interest’ bearing investments in dodgy funds or schemes, that turned out to be completely bogus. As a result, the pensioners were left destitute after a lifetime saving for their retirement. Once the cold-calling ban was introduced for pensions and the public were made aware of it, the number of scams decreased. Now there is pressure
coming on the UK government to ban cold-calling completely for financial products. The fear is that the scammers have changed tactic and many people are being targeted in the protection market. Phone calls from companies promising lower premiums for similar products to the ones that the householder already has are on the increase. However, in some cases, it turns out on closer inspection that these products have much lower coverage or have so many exclusions that no claim would ever be possible. Thus, the customer essentially has lost their premium without ever getting the insurance cover they believed they were paying for. Of course, it is in the interest of everyone involved in the provision of financial services that scammers be stopped. But we need to pause and consider what we would lose before we rush to make such dramatic changes. Financial products are still primarily sold, not bought. The government explicitly acknowledges this with its auto-enrolment (nudging) approach to getting people saving for their pensions. They are aware that without outside pressure, people would mean to invest but would never get around to doing it.
page 18
Cold-calling works. Even though everyone complains about it, the fact that firms invest so much money into it as a means of selling shows that it is effective. So, when it comes to cold-calling, we need to be sure that by banning it completely, we are not throwing the baby out with the bathwater.
find it even more difficult to reach potential customers.
It is true that banning all cold-calling for financial products would remove any further scams done by phone, but we must remember that scammers are already breaking the law. The ingenuity of the scammers means it is likely that they will just alter their line of attack and find new ways to reach the customers with their fake offers.
Financial products must be sold and there are many risks to reducing the ability of financial services providers to access their potential customer base. Therefore, we need to be careful of taking actions that might lead to unintended consequences, especially as the rights of those who are genuine sellers are being infringed, along with the customers who can’t get access to a wider range of financial products easily.
We don’t take the approach of banning alcohol, despite the fact that doing so would mean that all deaths due to drink-driving would immediately cease. Nor do we attempt to monitor postal deliveries in order to ensure that fake offers can’t reach potential victims via that route. By banning all cold-calling, we are merely ensuring that genuine companies offering valuable services
Will this result in a major drop-off in people getting access to information on the financial services that are available?
When it comes to making changes which significantly affect the ability of life and pension providers to reach their customer base, we need to make sure we are not going to take such drastic action that the outcome is to make the situation worse rather than better.
page 19
LIGHTS, CAMERA, ACTUARY... Bolton Associates’ focus is specifically in the non-life actuarial space; the largest dedicated GI actuarial specialist in the market, working across the whole insurance market. The consultants at Bolton Associates offer an exceptional service, managing the process with the utmost tact and respect for all parties. We are passionate about our market, taking great interest in the insurance world as a whole; keeping up with trends and changes, and maintaining our ever-expanding network. We are good at what we do, because we enjoy what we do.
search & selection
The next focus for Bolton Associates’ Spotlight page, is an interview with a leading actuary within one of the Lloyd’s Broking houses. With the broking firms now offering important analytical, actuarial and deal-assisting advice, for the next few months Zoe Bolton will be talking to the senior actuaries in these firms, getting a brief insight into their career paths and visions for the future. This month Zoe talks to Charlotte Healy of Marsh Ltd.
What is your current role, and how did you end up in it?
This experience taught me to always challenge processes - just because something is being done in a certain way doesn’t mean it’s necessarily the best way.
I currently lead the Marsh Risk Analytics team in the UK. We’re responsible for delivering actuarial services to clients to help inform their risk management decisions.
In your opinion, what prepared you best to take on your current role?
I joined Marsh in 2014 having previously worked for Zurich Insurance in a number of different roles. I started my career with Zurich on the graduate scheme in the Commercial Pricing team and then had a fantastic opportunity to move to Chicago as part of the International Rotation programme. This was a two year placement in the Reserving team in North America. Following this placement, I returned to the UK to lead the Global Corporate UK reserving team. After a number of years reserving, I wanted a new challenge so took the opportunity to move over to a role within a Broker. What is the defining moment of your career to date? I’m not sure I could pinpoint one moment. The opportunity to work in America was a highlight and provided me with some good insight into the US insurance market and working practices. Another highlight for me was streamlining the Global Corporate UK reserving processes at Zurich. When I first took on the role, the team had just worked through the night to get the quarterly reserving completed. Each quarter we improved the process and managed to finish a little bit earlier until, eventually, we automated so much of the process that we were all able to finish on time having booked all of our reserves for the quarter.
My first experience of a team leadership role was outside of my professional career as captain of my hockey team. At the time, we were in a relegation battle so trying to motivate people to play each week was a challenge. As the least experienced person on the team, I also learnt that you don’t always need to be the best at something to lead a good team – it’s about putting people in the right places and empowering them to play to their strengths. What is the biggest challenge you face in your role within this market? Communicating technical concepts to non-technical audiences remains a challenge across the profession. It’s important to put yourself in the shoes of your audience and not overcomplicate matters How does your actuarial training and background assist in your day-to-day role now? The technical knowledge that I learnt throughout the exam process is still an important part of my role, in particular where I hold the head of actuarial function role for some clients. I also wouldn’t be able to provide guidance and direction to the team without my actuarial training.
page 21
When did you first join the Institute & Faculty of Actuaries, and what advice would you give to those students looking to emulate your career path? I first joined the IFoA in 2006 after graduating from Birmingham University with a Mathematics degree. I’d encourage a balanced approach to studying whilst the exams are important, it’s even more important to understand how the technical concepts that you learn relate to real problems in the workplace.
If you had your time again, what would you do, career-wise? I really enjoy my career as an actuary so I’m not sure I’d have chosen to do anything differently. However, I love skiing and spending time in the mountains so perhaps an alternative career choice would have been a ski instructor! Please share your favourite piece of trivia with our readers! The Chicago River is the only river in the world that flows backwards.
Also, be inquisitive and try to understand how the work that you’re doing fits into the bigger picture.
page 22
ALL CHANGE FOR SCHEME FUNDING? Nearly 15 years on from the launch of the then new scheme-specific funding regime for defined benefit (DB) schemes which replaced the minimum funding requirement (MFR), we are expecting consultations from the Pensions Regulator (TPR) which could introduce the biggest changes in scheme funding since that date. A tale of two consultations There will be two consultations on a revised DB funding code. The first will look at broad options for a clearer DB funding framework, and is expected in summer this year ‘depending on the legislative timetable’. The second consultation on the wording of the draft code itself is now not expected until 2020, which means that it is likely to be the end of that year before the revised code is in force. However, whilst it may be at least 18 months before the new code is in force, TPR has already made its direction of travel clear, particularly in its latest annual funding statement, so trustees and employers should already have a good idea of what to expect and be able to prepare for some aspects of the new regime. Looking to the long term The 2018 White Paper announced that all pension schemes would be required to have a ‘long-term objective’ and that trustees would have to report on progress against that objective in a DB Chair’s Statement. TPR has anticipated this legislative development in its 2019 annual funding statement, by introducing an expectation that trustees and employers should set a ‘long-term funding target’ (LTFT) and be prepared to provide evidence that their shorterterm investment and funding strategies are aligned with it. For closed schemes, the LTFT should involve reducing their reliance on the employer covenant over time and reaching a position of low dependency on the employer by the time they are significantly mature. Whilst TPR acknowledges that the situation for open schemes may be different, it still expects trustees and employers of such schemes to adopt an LTFT and to provide the same level of protection for accrued benefits as if the scheme were closed. Not the MFR The other main change in the scheme funding regime will involve TPR providing a much more detailed picture of its expectations for funding, including ‘setting clearer parameters … around journey plans and associated technical provisions based on scheme specific factors’ and requiring stronger employers to fund their deficits over a shorter period.The latest annual funding statement already provides a firm steer that TPR now views a recovery plan in excess of seven years as ‘long’.
David Fairs, Executive Director of Regulatory Policy, Analysis and Advice at TPR, has been at pains to say that the new regime will not be ‘MFR 2.0’ and that it will continue to provide the flexibilities of a scheme-specific framework, but the very fact that he feels the need to say this suggests that there could be some profound changes on the way for DB funding. There will be two routes to compliance with the scheme funding legislation: a ‘fast-track’ route through which schemes can demonstrate compliance with the new requirements, and a route under which trustees and employers can ‘choose a more bespoke approach subject to further evidence being provided and greater regulatory scrutiny’. How different the fast-track route will be from a prescribed regime like the old MFR remains to be seen. Investment stress tests TPR’s 2019 annual funding statement was the first to set out how it expected trustees to set their investment strategy in the light of their specific level of funding, covenant strength and maturity. A much stronger focus on investment risk and strategy also seems likely to be a key theme of the revised code, with David Fairs promising ‘proposals for how trustees could demonstrate whether the risk in their investment strategy is supported, for instance through a simple stress test’. It may not, however, be easy to devise a simple stress test that is meaningful across the whole universe of DB schemes. A new type of regulator? The annual funding statement provides a strong indication that TPR will be taking a much more directive approach to scheme funding, albeit with scope for trustees and employers to pursue alternative bespoke approaches, at the cost of more advice and more regulatory scrutiny. It’s likely that over the next year or so we should all get a better idea of what a ‘clearer, quicker, tougher’ regulator actually looks like, and nowhere more so than in TPR’s consultations on a revised DB funding regime. Trustees and sponsors should engage with those consultations when they finally appear, and in the meantime should be considering what they can do to prepare for the new framework.
page 23
by Jane Beverley, Principal & Head of Research, XPS Pensions Group
PENSION PILLAR
DO PENSION CHARGES
MATTER?
In recent years there has been a huge amount of focus on charges in pension schemes. They’ve really been the centre of attention since autoenrolment was introduced in 2012. Charges in auto-enrolment pension schemes are capped at 0.75%, although the market and improved governance have driven average charges much lower than this. On the face of it this is great news for members, but there are downsides to the almost relentless focus on cost. A race to the bottom has been happening, with advisers and employers squeezing providers for every 0.01% discount they can get. Low margins mean it’s a difficult market for new operators to break into, as evidenced by the number of master trusts electing to call it a day. Even where provider charges are very low there’s still a focus on low priced passive funds. Few schemes are seizing the opportunity to increase the charge paid by members to cover more expensive investments that could generate higher returns.
The focus on charges isn’t going away. Defined contribution occupational pension schemes will have published their charges online by early November, with the FCA set to make equivalent rules later this year for contract-based pensions. It won’t be long until we see someone publish a league table with the ‘winner’ being the scheme with the lowest charge. But charges aren’t the sole indicator of value. Scheme design, member decision making and a robust default fund providing solid returns can have a more significant impact on an individual’s pension pot and their quality of life in retirement. Let’s look at a practical example (the full list of assumptions is below*): Jane is 22 years old and joined her workplace pensions scheme in April 2019. Her salary is £25,000 and contributions to her workplace pension are 8% of qualifying earnings. These continue for 46 years, until she retires at 68. Let’s ignore questions of whether this saving level is adequate and just look at some numbers.
page 24
Scenario 1
Scenario 4
- Jane pays an annual management charge (AMC) of 0.75%
- Jane pays an 8% contribution and an annual management charge (AMC) of 0.75%
- At retirement she would have a pension pot worth £105,909
- But the default fund grows by an additional 1% per annum
Scenario 2
- At retirement she would have a pension pot worth £137,491
- Jane pays an AMC of half that in scenario 1, 0.38% - At retirement she would have a pension pot worth £116,741 Clearly, charges make a difference – and I would never suggest they be overlooked. By decreasing Jane’s AMC by around 50%, her pension pot has grown by around 10%. But let’s look at it from another angle: Scenario 3 - Jane pays an annual management charge (AMC) of 0.75% - Jane and her employer decide to increase her contributions from 8% to 12% - At retirement she would have a pension pot worth £158,864
I’m keeping the maths basic for the sake of this example, but the simplest way to improve income in retirement is to pay more in. An increase in contributions of 50% increases Jane’s pension pot by 50%. But employers, trustees and individuals shouldn’t lose sight of the impact of investment returns. Increasing returns by 1% increases Jane’s fund by nearly 30%. A focus on charges is important, but with charges so low there’s often little room for further reductions. Improved employer and employee engagement manifested in increased contributions and greater focus on default fund returns, not just charges, could help millions of people like Jane have a more prosperous retirement.
*Footnote • Member joins the workplace pension scheme in April 2019 aged 22 • Contributes for 46 years (Mar 2065) to retire at 68 • Earns £25k salary • 8% contributions • Qualifying earnings • 2.5% returns • Calculations adjusted for inflation
by Dale Critchley Policy Manager Aviva page 25
TEMPORARY JOBS • LIFE • GRADUATE • PENSION • IMMEDIATE JOBS • £100K+ • CONSULTANTS • TEMPORARY JOBS • LIF GRADUATE • PENSION • IMMEDIATE JOB • £100K+ • CONSULTANTS • TEMPORARY JOBS • LIFE • GRADUATE • PENSION • IMMEDIATE JOBS • £100K+ • CONSULTANT • TEMPORARY JOBS • LIFE • GRADUATE • PENSION • IMMEDIATE JOBS • £100K+ CONSULTANTS • TEMPORARY JOBS • LIF GRADUATE • PENSION • IMMEDIATE JOB • £100K+ • CONSULTANTS • TEMPORARY JOBS • LIFE • GRADUATE • PENSION • IMMEDIATE JOBS • £100K+ • CONSULTANT • TEMPORARY JOBS • LIFE • GRADUATE • PENSION • IMMEDIATE JOBS • £100K+ CONSULTANTS • TEMPORARY JOBS • LIF
RECRUITMENT
• • FE BS Y TS E • FE BS Y TS E • FE
search & selection Reserving Actuary
Capital Strategy/Operations
General Insurance £Salary Dependent on Experience Glasgow
Associate Up to £55,000 Per Annum London Based
Fantastic and rare opportunity for a nearly or newly qualified GI /Health Actuary, with reserving experience, to join a growing Actuarial team in Glasgow with this global Insurer. Reporting into the Actuarial Manager, work will include reserving, reporting, modelling and wider actuarial analysis. Ideal for those with a personal lines or consultancy background, looking . to make the move North.
Leading prestigious Lloyd’s operation is recruiting at a part qualified level for a Capital Strategy and Operations associate. Focusing on supporting first line capital validation, stakeholder relationships and analysis for strategy relating to capital, this is an excellent opportunity to get detailed hands on experience.
REF: ZB 001187 PW
REF: ZB 001175 SC
Reserving Actuary
Pricing Analyst
General Insurance £Six Figures + London
General Insurance £55,000 Upwards London
Global insurance business has an opening for an experienced reserving actuary. Joining one of the largest reserving teams in the market, you will lead on either financial lines or international markets. You will ideally be a couple of years PQE and enjoy mentoring more junior students. In-house or consultancy experience.
Renowned global insurer seeking part-qualified analyst to join their reinsurance pricing team. You will be involved with the production of case pricing covering multi lines of business. Strong communication skills are imperative as this role involves working very closely with underwriters. A general insurance background is essential with at least 2 years pricing experience.
.
REF: ZB 001163 CS
REF: ZB 001189 HT
Chief Pricing Actuary
PQ Capital and Risk Actuary
General Insurance £Top Quartile Total Comp London
General Insurance To £120,000 Per Annum London
Top tier global insurer has an exceptional opportunity to lead a large team across the full suite of specialty lines. You will be an experienced actuary, with exceptional influencing skills and work ethic. Working in a senior leadership team, you will have a strategic vision for insurance pricing, and be looking to build on this future vision through engaging data, analytics . and pricing methodologies.
Lloyd’s / London Market insurer are looking for a PQ GI actuary, with capital experience, to join their risk and validation team. With a dotted line into the CRO, you will work closely with the Validation manager to support each legal entity to assess the appropriateness of the Internal Model against the relevant risk profile. London market and Personal Lines backgrounds will be considered.
REF: ZB 001184 ZB
REF: ZB 001144 MM
www.bolton-associates.co.uk page 27 +44 (0)207 250 4718 Bolton Associates, 5 St. John’s Lane, London, EC1M 4BH
N OLNI -FLEI F E
STAR5739 / 5740
E IV
LIFE LONDON
US
Qualified
Financial Services Group
CL
INVESTMENT ACTUARY
Qualified
EX
REPORTING AND ANALYSIS
Market Leader
LIFE INVESTMENT LONDON
STAR5711
A fantastic opportunity for an actuary with investment experience in the life insurance sector to take up a high-profile role within a market- leading team delivering advanced consulting solutions.
ASSISTANT MANAGER - ALM
LIFE ANALYST
STAR5555
E IV
US
PRICING ANALYSTS
Part-Qualified
Market-Leading Firm
Part-Qualified
Leading Global Reinsurer
STAR5744
LIFE LONDON
STAR5500
LIFE LONDON
STAR5735
In this new role, you will assist with the management of various ALM and liquidity processes, and support the production, analysis and hedging activities associated with market risk.
CAL LING ALL
LIFE CONTRACTORS C O NTACT US NOW TO DI SCUSS OUR C U RRENT CONTRACT VACANCI ES
REPORTING, PROJECTS AND SYSTEMS Leading Reinsurer
LIFE MIDLANDS
STAR5716
An ideal development opportunity for an ambitious actuarial student to join a cutting-edge firm providing expert balance sheet structuring to life insurers.
PRODUCT AND PRICING
Qualified
Part-Qualified / Qualified
Global Financial Solutions Provider
HEALTH LONDON
STAR5718
Seeking a recognised industry leader, with a UK life practising certificate, and extensive experience of supporting high-profile projects across restructuring, transfers, investment ALM, capital raising, and capital optimisation.
STAR5742
DIRECTOR-LEVEL ROLE
LIFE ACTUARY - BUSINESS CHANGE
Qualified
Leading Client
LIFE NON-LIFE LONDON
STAR5693
MANAGERS OR SENIOR MANAGERS STAR5738
LIFE LONDON
Take pricing and product development to the next level in a position ideal for an all-rounder with UK protection products experience. This broad, commercial role requires strong modelling and stakeholder management skills.
STRATEGIC LIFE LEADER LIFE LONDON / SCOTLAND
Market Leader
A fantastic opportunity to review, improve and approve quotations, pricing bases and monitoring experience for a global business. In this key role, you will also provide project management and guidance to local teams.
Seeking candidates with excellent communication skills who are able to influence others, work co-operatively, prioritise and manage complex projects, and lead meetings with senior stakeholders.
Leading Consultancy
We have exciting career opportunities for analysts to price, model and document quotations for a wide range of reinsurance transactions, whilst also gaining exposure to longevity and financial reinsurance.
HEALTH ACTUARY
Take up this key role, managing a With-Profits reporting team, assisting with the delivery of projects to support business and regulatory change, and maintaining and improving systems and processes.
Qualified
LIFE LONDON / SCOTLAND
Large Insurer
LIFE INVESTMENT EDINBURGH
Qualified
CL
Part-Qualified / Qualified
Leading Consultancy
Seeking a qualified actuary with a strong record of leading the delivery of transaction projects, proven team leadership capability and practical Solvency II experience, including experience of the Matching Adjustment.
EX
Take a major role in the delivery of the Solvency II reporting requirements for a market leader. With ownership of key processes and exposure to stakeholders at all levels, you must have strong interpersonal skills.
TRANSACTIONS LEADER Qualified
Qualified
Part-Qualified / Qualified
STAR5713
Use your life assurance reporting experience to assist in the implementation of the new IFRS 17 process, testing systems and processes, validating outcomes, and building business plan models to forecast metrics.
Major Consultancy
LIFE LONDON
Major Global Insurer
LIFE SOUTH WEST
Is your next role one of the
99
STAR5680
Join a growing risk team in one of several key roles, where you will contribute to developing and launching new initiatives and take on day-to-day responsibility for a portfolio of assignments.
LIFE
VACANCIES on our website?
Lance Randles MBA
Peter Baker
Jan Sparks FIA
PARTNER +44 7545 424 206 irene.paterson@staractuarial.com
PARTNER +44 7889 007 861 lance.randles@staractuarial.com
PARTNER +44 7860 602 586 peter.baker@staractuarial.com
PARTNER +44 7477 757 151 jan.sparks@staractuarial.com
Jo Frankham
Adam Goodwin
Clare Roberts
James Harrison
ASSOCIATE DIRECTOR +44 7950 419 115 jo.frankham@staractuarial.com
ASSOCIATE DIRECTOR +44 7584 357 590 adam.goodwin@staractuarial.com
ASSOCIATE DIRECTOR +44 7714 490 922 clare.roberts@staractuarial.com
ASSOCIATE DIRECTOR +44 7591 206 881 james.harrison@staractuarial.com
Antony Buxton FIA
Louis Manson
Joanne O’Connor
Sarah O’Brien
MANAGING DIRECTOR +44 7766 414 560 antony.buxton@staractuarial.com
MANAGING DIRECTOR +44 7595 023 983 louis.manson@staractuarial.com
OPERATIONS DIRECTOR +44 7739 345 946 joanne.oconnor@staractuarial.com
SENIOR CONSULTANT +44 7841 025 393 sarah.obrien@staractuarial.com
Irene Paterson FFA
P LE A S E CONTACT US AT ANY TI M E TO D IS C USS Y OUR RECRU I TM ENT NEEDS
page 28
+44 20 7868 1900
staractuarial.com
ACTUARIAL POST RECRUITER OF THE YEAR 2012 . 2013 . 2014 . 2015 . 2016 . 2017 . 2018
PENSIONS
INVESTMENT SENIOR MANAGER
Qualified
Qualified
Leading Insurer
PENSIONS LONDON
STAR5673
CLIENT-FACING PENSIONS Global Leader
PENSIONS SOUTH WEST / SOUTH EAST
STAR5720
Part-Qualified
Leading Pensions Consultancy
PENSIONS MANCHESTER
STAR5661
A fantastic opportunity for a pensions actuary to work in-house. This corporate role offers visibility and responsibility to a candidate who can both take the lead in negotiations and get their hands dirty with model development.
Take a lead role in providing strategic advice to clients with worldwide pensions arrangements, particularly in relation to mergers & acquisitions and corporate restructurings.
Seeking candidates with client-facing experience to join a multi-disciplinary team providing clients with leading-edge advice across funding, investment, risk transfer and covenant.
ACTUARIAL INVESTMENT ANALYSIS
ACTUARIAL ANALYST - YORKSHIRE
NICHE PENSIONS
Qualified
Specialist Investment Consultancy
INVESTMENT SOUTH EAST
STAR5747
Part-Qualified
Growing Independent Consultancy
PENSIONS YORKSHIRE
STAR5750
Part-Qualified
Growing Consultancy
PENSIONS MIDLANDS
STAR5615
Join a growing team, tailoring specific solutions to individual schemes. You must have knowledge of the key issues affecting trustees, and the confidence and ability to set up and manage asset liability models.
Seeking technically-strong pensions analysts to join a dynamic and growing team, within a business providing exposure to trustee, corporate and investment services for a range of clients.
Multiple opportunities to join our client’s growing team. You will have the ability to calculate and revalue defined benefit pensions and cash equivalent transfer values, and report-writing experience.
INTEGRATED RISK MANAGEMENT
STRATEGIC PENSIONS
BPA PRICING ANALYST
Part-Qualified / Qualified
Part-Qualified / Qualified
Leading Consultancy
PENSIONS EDINBURGH
STAR5655
Leading Consultancy
PENSIONS EDINBURGH
STAR5710
Part-Qualified
Major BPA Provider
PENSIONS LIFE LONDON
STAR5589
Seeking a pensions specialist to support both Trustee & Corporate clients, contributing to varied and interesting projects including integrated risk management and asset/liability modelling.
Use your strong client consulting experience to lead on the preparation and delivery of both day-to-day and strategic advice, with a focus on creating tailored solutions that meet client needs.
An excellent opportunity to support clients on multi-stage de-risking projects. This growing team deals with large clients, liaising between fund managers and the reinsurance market to construct bespoke, commercial solutions.
INVESTMENT SOLUTIONS
ACTUARIAL PENSIONS ASSISTANT
CORPORATE TRANSACTIONS
Qualified
Leading Consultancy
INVESTMENT LIFE NON-LIFE LONDON
STAR5729
Provide cutting-edge investment solutions to life and non-life insurance clients, developing propositions and ensuring effective delivery. You will be able to work autonomously, alongside a market-leading team.
Is your next role one of the
127
PENSIONS & INVESTMENT
VACANCIES on our website?
Part-Qualified
Major Consultancy
PENSIONS LEEDS
STAR5705
Part-Qualified / Qualified
Leading Consultancy
PENSIONS LONDON
STAR5581
An exciting opportunity to assist with a wide range of data reconciliation work, and support modelling workstreams in several areas, including testing the simulations of projected pension benefits and the cash flow models.
Use your excellent planning and communication skills to manage the high-quality, efficient delivery of day-to-day actuarial services to clients, focusing on employer advice and transactions.
CORPORATE PENSIONS
CORPORATE & TRUSTEE ADVISORY
Qualified
Leading Consultancy
PENSIONS LONDON
STAR5633
Take this chance to lead technical analysis for a variety of corporate clients, acting as a key point of contact. You will work on strategy, liability management, transactions, de-risking and other special projects.
Part-Qualified
Leading Global Consultancy
PENSIONS LONDON
STAR5580
Take up this chance to work on diverse workstreams such as integrated risk management, liability management, design strategy, and M&A due diligence, whilst contributing to cutting-edge thought leadership.
Peter Baker
Adam Goodwin
PARTNER +44 7545 424 206 irene.paterson@staractuarial.com
PARTNER +44 7860 602 586 peter.baker@staractuarial.com
ASSOCIATE DIRECTOR +44 7584 357 590 adam.goodwin@staractuarial.com
Antony Buxton FIA
Louis Manson
Joanne O’Connor
MANAGING DIRECTOR +44 7766 414 560 antony.buxton@staractuarial.com
MANAGING DIRECTOR +44 7595 023 983 louis.manson@staractuarial.com
OPERATIONS DIRECTOR +44 7739 345 946 joanne.oconnor@staractuarial.com
Irene Paterson FFA
The pensions market is currently extremely buoyant, with exciting opportunities across the UK at all levels. Now is a great time to contact us regarding the next move in your pensions career. page 29
Experts in Actuarial Recruitment
Star Actuarial Futures Ltd is an employment agency and employment business
CORPORATE PENSIONS - IN-HOUSE
ACTUARIAL POST RECRUITER OF THE YEAR 2012 . 2013 . 2014 . 2015 . 2016 . 2017 . 2018
NON-LIFE Qualified
RESERVING MANAGER Technology Consultancy
NON-LIFE LONDON
Part-Qualified / Qualified
STAR5755
CALL ING ALL
NON-LIFE CONTRACTORS C O NTACT US NOW T O DI SCUSS OUR C U RRENT CONTRACT VACANCI ES
INTERNATIONAL RISK Market Leader STAR5732
In this key role, you will manage the independent reserve review and provide a second opinion on reserve recommendations. You will also oversee the development of tools and methods, ensuring an efficient, robust and up-to-date process.
Supporting the risk team, you will challenge both quantitative and qualitative aspects of the Internal Model and provide support for stress and scenario testing and the ORSA. Capital modelling experience is essential.
ACTUARIAL SPECIALIST
INTERNATIONAL CONSULTING STARS
Financial Services Leader
NON-LIFE SOUTH EAST
STAR5717
Leading Insurer
NON-LIFE GREATER LONDON
STAR5730
Working closely with the risk and pricing leads, you will use your pricing and stakeholder management experience to manage the risks to the pricing function, and ensure robust governance and business standards.
TAKE THE LEAD Qualified
E
Qualified
NON-LIFE LONDON
STAR5724
This Senior Manager role has a particular focus on London and Lloyd’s Market reserving. You will take the lead on projects, often working with specialist colleagues across multiple disciplines.
International Consultancy STAR5387
A superb role requiring a people-focused actuary to apply expert judgement and to take the lead on projects, whilst mentoring junior actuaries and analysts. A strong technical and software background is essential.
SENIOR GI MODELLING SPECIALIST
COMMERCIAL LINES CONSULTANCY
Qualified
Qualified
Major Global Insurer STAR5736
Leading Broker
NON-LIFE LONDON
STAR5383
Use your communication and relationship building capabilities in this leading role validating capital, reserving and pricing models, specifying and developing validation tools, and challenging the results of risk assessments.
Use your commercial lines reserving or pricing background in a role offering the opportunity to learn and develop, as you support the creation and delivery of high-quailty analytic output.
SENIOR DATA SCIENTIST
RESERVING STARS IN THE CITY
Part-Qualified
Specialist Insurer
NON-LIFE LONDON
STAR5731
Seeking a talented and experienced Data Scientist to advise the technical pricing team on the production of predictive models. These will be implemented into, or in support of, business front-end solutions.
PRICING AND PORTFOLIO ANALYTICS Leading Consultancy
Qualified NON-LIFE LONDON
Use your significant stakeholder management skills to contribute to our client’s product roadmap design and strategy, whilst helping to drive growth and supporting the product development workstream.
IV
US
CL
EX
PRICING - RISK AND COMPLIANCE
Global Specialty Reinsurer
NON-LIFE RISK LONDON OR EUROPE STAR5657 / 5658
NON-LIFE ZURICH
Take this great opportunity to develop your career within a broad role in a thriving location. You must be a highly-motivated team player, with excellent leadership, communication and timemanagement skills, and Solvency II experience.
Part-Qualified / Qualified
STAR5737
Qualified
NON-LIFE RISK SOUTHERN EUROPE
Major Insurer
NON-LIFE LONDON / EAST OF ENGLAND
Fast-growing AI consultancy seeks an entrepreneurial leader with a strong track record to develop its UK and EU business, utilising Machine Learning and Artificial Intelligence solutions to solve business problems.
Qualified
RISK EXPERTS
Part-Qualified
Technology Player
NON-LIFE LONDON
STAR5704
Are you looking to take a step up? Do you enjoy building pricing and analytics tools? This is an amazing opportunity for a candidate with a passion for coding, data and technology who also has experience in portfolio analysis and pricing.
Qualified
Market Leader
NON-LIFE LONDON
STAR5698
Our client has multiple roles for technically strong reserving actuaries with commercial awareness and the ability to influence and challenge. Contact us now for further information.
Is your next role one of the
120
NON-LIFE & HEALTHCARE
VACANCIES on our website?
Lance Randles MBA
Paul Cook
Satpal Johri
PARTNER +44 7889 007 861 lance.randles@staractuarial.com
ASSOCIATE DIRECTOR +44 7740 285 139 paul.cook@staractuarial.com
ASSOCIATE DIRECTOR +44 7808 507 600 satpal.johri@staractuarial.com
Clare Roberts
James Harrison
Diane Anderson
ASSOCIATE DIRECTOR +44 7714 490 922 clare.roberts@staractuarial.com
ASSOCIATE DIRECTOR +44 7591 206 881 james.harrison@staractuarial.com
SENIOR CONSULTANT +44 7492 060 219 diane.anderson@staractuarial.com
Antony Buxton FIA
Louis Manson
Joanne O’Connor
MANAGING DIRECTOR +44 7766 414 560 antony.buxton@staractuarial.com
MANAGING DIRECTOR +44 7595 023 983 louis.manson@staractuarial.com
OPERATIONS DIRECTOR +44 7739 345 946 joanne.oconnor@staractuarial.com
P LE A S E CONTACT US AT ANY TI M E TO D IS C USS Y OUR RECRU I TM ENT NEEDS
+44 20 7868 1900
staractuarial.com
Star Actuarial Futures Ltd is an employment agency and employment business
AI LEADERSHIP