The magazine of the Institute and Faculty of Actuaries aries MARCH 2023 theactuary.com
Fillings of choice: how life is sweet for job-hunters right now
TECHNOLOGY
SKILLS
ENVIRONMENT
How microchips built like the brain can help insurers
The hardest part of the job? Actually listening
Using AI to spot the greenwashing rot
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Inside this issue March 2023
46 17 Data: Free for all
14
Yiannis Parizas delves into the rewarding and collaborative world of open-source programming
20 Careers: Figuring it out For Wendy Johnson, actuarial training provided an unusual onward career path
38 Soft skills: Is anybody out there? Effective communication begins with good listening, says Tan Suee Chieh
22 Data: Brain power
A
Is neuromorphic computing about to revolutionise risk management? By Amarnath Suggu
Up Front
24 COVER STORY Careers: Take your pick
4 Editorial The prompts behind this issue’s content, by editor Yiannis Parizas
5 President’s and CEO’s comment
Job-hunters have the upper hand right now, says Austin Brislen
27 Insurance: Seek cover
Matt Saker and Stephen Mann discuss the future of the IFoA’s governance structure
7 IFoA news
At The Back 40 Extra-curricular Reema Uppal tells us about her work with the Met Police
41 People/society news The latest updates and events
Marco Spagnuolo on boosting customer engagement during times of high inflation
44 Puzzles
30 Environment: Data detective
46 Student
The latest IFoA updates and events
How artificial intelligence could help spot greenwashing. By Arjun Brara
Ciara Izuchukwu on how behavioural science principles could impact the insurance space
33 Careers: Rising in the East Three women working in Asia share the career journeys that have taken them to the top
Features
Global economy focus
14 Interview: Tony Burdon
36 Pensions: By halves
The head of the Make My Money Matter campaign on the power of putting your pension where it counts
Alexandra Miles investigates why women are retiring with smaller pensions than men
Get the app Did you know you can also read The Actuary magazine on any tablet or Android A phone? Click through to read more online, download resources, or share s on social media via our links in the app. It’s an exclusive free benefit for our members. Download on the App Store at: www.theactuary.com/ipad Visit: V www.play.google.com
COVER: ISTOCK
Next month
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We put a spotlight on reinsurance in today’s global context. Plus, we meet systems engineer Anthony Finkelstein
Additional content including daily news can be found at www.theactuary.com Weekly newsletter: for the latest actuarial news, features and opinion direct to your inbox, sign up at bit.ly/1MN3bXK
MARCH 2023 | THE ACTUARY | 3
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Upfront Welcome
theactuary.com
PUBLISHER Redactive Publishing Ltd 9 Dallington Street, London EC1V 0LN PUBLISHING DIRECTOR Anthony Moran MANAGING EDITOR Melissa Walton +44 (0)20 7880 6246 melissa.walton@redactive.co.uk SUB-EDITOR Kate Bennett
EDITOR Yiannis Parizas editor@theactuary.com F E AT U R E S E D I T O R S Kimberly Chimsasa: Pensions and investment Travis Elsum: Environment and sustainability Alex Martin: Environment and sustainability Blessing Mbukude: Life Fiona Neylon: General insurance Ruolin Wang: Life and health Rajeshwarie VS: General insurance STUDENT EDITOR Adeetya Tantia student@theactuary.com
D I S P L AY S A L E S theactuary-sales@redactive.co.uk +44 (0)20 7324 2753
IFOA EDITOR Kate Pearce +44 (0)207 632 2118 kate.pearce@actuaries.org.uk
RECRUITMENT SALES theactuaryjobs@redactive.co.uk +44 (0)20 7880 6234 ART EDITOR Sarah Auld PICTURE EDITOR Akin Falope
EDITORIAL A D V I S O R Y PA N E L Peter Tompkins (chairman), Chika Aghadiuno, Nico Aspinall, Naomi Burger, Matthew Edwards, Jessica Elkin, Richard Purcell, Sonal Shah, Nick Silver
SENIOR PRODUCTION EXECUTIVE Rachel Young +44 (0)20 7880 6209 rachel.young@redactive.co.uk
INTERNET The Actuary: www.theactuary.com Institute and Faculty of Actuaries: www.actuaries.org.uk
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SUBSCRIPTIONS Subscriptions from outside the actuarial profession: UK: £110 per annum. Europe: £145 per annum. Rest of the world: £175 per annum. Contact: The Institute and Faculty of Actuaries, 7th floor, Holborn Gate, 326-330 High Holborn, London WC1V 7PP. +44 (0)20 7632 2100 kate.pearce@actuaries.org.uk. Changes of address: please notify the membership department. membership@actuaries.org.uk Delivery queries: contact Rachel Young rachel.young@redactive.co.uk Published by the Institute and Faculty of Actuaries (IFoA). The editor and the IFoA are not responsible for the opinions put forward in The Actuary. No part of this publication may be reproduced, stored or transmitted in any form, or by any means, without prior written permission of the copyright owners. While every effort is made to ensure the accuracy of the content, the publisher and its contributors accept no responsibility for any material contained herein. © Institute and Faculty of Actuaries, March 2023 All rights reserved ISSN 0960-457X
4 | THE ACTUARY | MARCH 2023
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Just the job I wonder if the cover has prompted you to consider your options? Now might just be the right time for your next move, given the promising climate for actuarial job hunters (p24). Find more inspiration along these lines in our feature highlighting the stellar careers of three women who have been making their mark in top actuarial jobs across Asia (p33). It’s also a fitting nod to International Women’s Day on 8 March – as a magazine, we look forward to seeing more women in senior positions. It can be hard to listen to others. We all think we do, but… really listen. For the second article in our new soft skills series (p38), former IFoA president Tan Suee Chieh describes his experience of how beneficial and career advancing this underrated art can be. Listening is also the thrust of Marco Spagnuolo’s piece ‘Seek cover’ (p27). He argues that life insurers must engage with their customers more than ever right now, to keep up their premia while they’re feeling the pinch. Indeed, the European Central Bank has raised interest rates by three percentage points since last summer and markets expect at least another percentage point before rates peak. With the economic situation these days, it’s understandable that people are increasingly mindful about where they invest their money. On page 14, Tony Burdon, the CEO of campaign Make My Money Matter, urges us to think about how our pension savings impact on the world. Finally, something totally gratis – and close to my heart. In ‘Free for all’ (p17), I share my passion for YIANNIS PARIZAS contributing back to the profession EDITOR through open-source software. editor@theactuary.com Happy reading! www.theactuary.com
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Upfront CEO
M AT T S A K E R
STEPHEN MANN
Meaningful leadership
Meaningful change
W
W
hen the IFoA was formed in 2010, our two predecessor bodies agreed the governance arrangements that we retain today: an elected governing Council, a Management Board that bridges our organisation’s strategy and operations, and an Executive that advances the IFoA day by day. Add on committees, practice boards, working parties and others, and we have a large group of well-intentioned, dedicated leaders. However, this is also a group whose visions and desires sometimes conflict. The system brings both challenges and opportunities. Council has decided it’s time to consider the system that will lead us into the future, and has instigated a comprehensive governance review with that aim. As president, I have heard from those who take comfort in our community and prioritise the connections they have made. I have heard from those who love the IFoA’s ambitious aspirations and pour their energy into securing our future. We must consider what kind of leadership structure and culture will reflect our common aims and support future generations. This structure and culture must serve our members’ diverse wants and needs. It needs to reflect our purpose and values, strategic direction, public interest role and accountabilities, and commitment to diversity and inclusion. It should reinforce our ambition to be not just a leading professional body, but a leading global body, growing in influence and scale. Our governance must enable all these things. Each member’s vision for how these aims should come to life will be as unique as their contribution to the IFoA. Along with Council, I look forward to recognising the IFoA’s rich history, MATT SAKER considering its future opportunities and is the president of charting a course for our governance that the Institute and will serve our members, our organisation Faculty of Actuaries and our profession well into the future. www.theactuary.com
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hen the IFoA launched its latest strategy in early 2020, we also launched a fresh organisational purpose: to be the voice of actuaries, and to support, develop and be the voice of our members. Listening to members – through our annual member survey, at events, catching up over coffee – I see your passion and pride in being actuaries. I hear your hopes for the profession’s future. While all members genuinely want the best for the IFoA, everyone’s view of what ‘the best’ entails is different. During the past three years, despite challenging circumstances, we have adjusted, adapted and made gigantic leaps together. The IFoA offers members more value than ever before. Our voice is heard and well-regarded in the public sphere. Financially, we are strong. While appreciating that there is always room to grow, particularly in the service experience that we offer members, I am proud of what we’ve accomplished: not just for its own sake, but also for the commitment, resilience and willingness to dare that our volunteers, members and colleagues have demonstrated in accomplishing it. As our leadership structure and culture evolve, any change in this regard needs to be meaningful. Radical change can dazzle and inspire, but incremental change reassures and stands the test of time. True leadership requires a balance of both – and effective governance, strategy and culture along with it. The world is changing, and we are grateful for the members who cherish our heritage and have stewarded the IFoA into the organisation it is today. We appreciate our risk-taking members STEPHEN MANN who push the profession to greater heights. is the chief executive Whatever your hopes for the IFoA, we of the Institute and value what you bring to it – and I look Faculty of forward to what you will bring to it next. Actuaries AUTUMN MARCH 2023 2022 | THE ACTUARY | 5
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Upfront News
QUALITY ASSURANCE SCHEME
‘A sign of the high standards we aspire to’ The Quality Assurance Scheme (QAS), the IFoA’s voluntary, outcomes-based accreditation scheme for employers of actuaries, was reviewed last year to optimise value to members. It now operates with streamlined digital-first processes, offers access to exclusive QAS insights and best practice, and supports the latest diversity standards. Here, some actuaries from accredited organisations describe some of the benefits that QAS membership has delivered for them.
Benchmarking for clients “Clients, especially those who are themselves global, want to see global accreditations, global benchmarks being met – even in regional work. It’s important to them to see that their service providers are meeting those benchmarks. QAS accreditation is well recognised.” Raghav Ohri, senior consulting actuary at Lux Actuaries & Consultants
Internal stakeholder recognition “When we achieved QAS accreditation, I had great feedback from senior stakeholders in the organisation. It demonstrated that, even though they weren’t all actuaries and may not have been familiar with the scheme before, they did recognise that this was an important achievement, and that it was a sign of the high standards that my team and I aspire to.” Matthew Byrne, head of actuarial function at NFU Mutual www.theactuary.com
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Continuous improvement “The QAS provides reassurance on the fitnessfor-purpose of our processes from an external party. We’ve found the auditor’s recommendations on best practice and things we can do better helpful in considering how we might further improve our processes. That continual improvement, getting an external party’s view rather than just our potentially biased internal view, brings value to the accreditation.” Scott Cameron, head of actuarial and investment function at Spence & Partners
Bespoke continuing professional development (CPD) scheme “As part of our QAS accreditation, we have chosen to opt out of the IFoA CPD programme and run our own, which I’ve helped to design – so that means we are able to directly influence the CPD carried out by colleagues to ensure their ongoing competence is maintained and is highly relevant to their role.” Jane Curtis, senior partner at Aon To learn more and begin the process of earning accreditation for your organisation, visit actuaries.org.uk/qas
26 - 27 J U N E
Join us at this year’s event Following the success of 2022’s inaugural cross-practice IFoA Conference, we are delighted to announce it is returning to London this year, in person and online. Last year saw a schedule of more than 50 sessions, panel discussions and workshops, attended both in person and virtually by more than 500 people. With so many of you telling us how valuable you found the access to cross-practice content, we’re looking forward to doing it all again this year. This year’s conference will highlight such topics as: The cost-of-living crisis Life after covid The future of pensions The Edinburgh Reforms Climate risks and sustainability. Attending gives you the opportunity to extend your domain expertise and expand your knowledge of subjects beyond your field, meet and connect with peers both inside and outside of your practice area, engage in thought-provoking discussions on issues that affect us all, and feel part of the actuarial community. Here’s a taste of the positive feedback from attendees of last year’s event:
“The conference seamlessly brought together the global actuarial community across specialisms, enabling us to grow together, using technology to its best advantage.”
“It was fascinating to see how many different fields of work colleagues had expanded into. Very inspirational and encouraging to step outside of my comfort zone and see where that leads!”
“Good to see high-quality, interesting cross-discipline content.”
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Upfront News
IN BRIEF... APS Z1: have your say
IFOA PRIZES
IMAGES: SHUTTERSTOCK
Outstanding papers of 2022: winners announced Every year the IFoA recognises excellence in research by awarding prizes for outstanding research papers in actuarial science or related disciplines. These awards continue the IFoA and its predecessor bodies’ tradition of awarding excellence. Named after a former president of the Institute of Actuaries, the Peter Clark Prize is awarded for an outstanding paper presented to or published for an actuarial audience. For 2022, this went to Tim Berry and James Sharpe for their paper ‘Asset-liability modelling in the quantum era’, published in the British Actuarial Journal in July 2021 (bit.ly/BAJ_quantum_ALM). The judging panel agreed that the paper was original, well-structured and highly relevant, being one of the first instances in which our profession has explored the potential of quantum computing. Actuaries can use the paper to start developing quantum solutions to wider financial problems. “We are honoured and grateful that our work has been recognised in this way,” said the co-authors. “There is a long history of actuaries using quantitative methods to match assets and liabilities, since the very start of the profession. The emergence of quantum computing provides another step forward in what actuaries can do. It has been a joy applying a fascinating area of science into the actuarial field.” 8 | THE ACTUARY | MARCH 2023
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The Geoffrey Heywood Prize, named after another former Institute president and originating from a bequest in his will, is awarded for excellent communication and engagement with a general actuarial audience. For 2022, this went to Samal Abdikerimova and Runhuan Feng for their paper ‘Peer-to-peer multi-risk insurance and mutual aid’, published in the European Journal of Operational Research in June 2022 (bit.ly/EJOR_p2p_aid). The panel agreed that this well-written paper developed original actuarial techniques that are theoretically sound and practically useful. It contained a high level of clear and accurate mathematical detail and had an extensive bibliography. This paper presents several seminal results in peer-to-peer insurance and mutual aid pools, and could serve as a guideline for risk allocation for peer-to-peer insurancefocused fintech start-ups. Both of these awards are funded by the IFoA Foundation and have prize money of £1,000 each. In addition, Benjamin Avanzi, Greg Taylor and Melantha Wang’s paper ‘SPLICE: a synthetic paid loss and incurred cost experience simulator’, published in Annals of Actuarial Science in May 2022, was Highly Commended (bit.ly/AAS_ SPLICE). This high-quality technical paper described simulation models that can be used to test estimation procedures.
The IFoA is consulting on proposals to introduce a revised Actuarial Profession Standard (APS) Z1 on ‘Duties and responsibilities of members undertaking work in relation to UK trust-based pre-paid funeral plans’. APS Z1 sets out specific ethical and professional obligations that apply, in addition to the Actuaries’ Code, for members providing advice relating to funeral plan trusts. The proposed revised APS Z1 reflects the new regulatory framework for the pre-paid funeral planning market, overseen by the Financial Conduct Authority. For more information and to take part in the consultation, which closes 8 May at 5pm, visit bit.ly/IFoA_CurrentConsult
Pensions sub-committee seeks a new recruit Are you an experienced pensions actuary who is keen to be involved in responding to pensions industry consultations? Do you have technical expertise in UK defined benefit and/or defined contribution occupational pensions, and an interest in broader social and regulatory policy? If so, the Pensions Consultations Sub-committee of the Pensions Board is looking to appoint a new member. The sub-committee helps to shape the IFoA’s responses to parliamentary inquiries and consultations from government departments, regulators and other public interest bodies. You will provide technical and policy input and assist with drafting and reviewing. You will work collaboratively with sub-committee members, the Pensions Board and other IFoA groups to produce consultation responses that are based on rigorous and independent analysis, that represent the views of the IFoA and that support the public interest. For more about the role, including time commitments and how to apply, visit bit.ly/Volunteering_pensions_consult www.theactuary.com
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Upfront News
ETHICS
Diversity needs to be key part of Code In the January/February issue of The Actuary, we told members about our recently launched consultation on embedding diversity, equity and inclusion (DEI) values into the Actuaries’ Code. Here, chair of the Regulatory Board, Neil Buckley, explains the reasoning behind this. The Actuaries’ Code is the ethical code that sets out the expected behaviours and conduct for all actuaries who are members of the IFoA. One of its tenets is that members must show respect for others – and an important aspect of respect is how we react and respond to people who are different from us. Such differences can manifest themselves in many
forms – not just gender, race or sexuality, but also background and education. The IFoA also recognises that diversity of thought leads to new ideas, improved approaches and enhanced outputs. Diversity of thought comes from a diversity of people. To ensure the IFoA’s membership and our workplaces are diverse, we as individuals, groups,
companies and a society need to actively remove barriers and encourage inclusion. Only then can we harness our differences, which will provide opportunities to broaden our horizons and start thinking and acting in new ways. For these reasons, we feel it’s appropriate to embed DEI in the Code. The proposed changes amplify existing obligations to make it clear that members, when
showing respect for others, should consider how this manifests itself in the context of DEI. To find out more, join Neil Buckley to discuss these proposals at our consultation webinar on 29 March. Or visit bit.ly/IFoA_CurrentConsult if you would like to take part in the consultation.
Sponsor or exhibit at one or more of these upcoming IFoA conferences and increase the visibility of your brand You’ll have a platform to showcase your products to actuaries from a variety of companies, and with over 32,000 IFoA members your company is guaranteed to receive unparalleled visibility to specific markets. đƫ IFoA Conference: 26 – 27 June 2023, etc. venues, London đƫ Asia Conference: 12 – 13 September, KL Convention Centre, Malaysia đƫ GIRO Conference: 1 – 3 November 2023, EICC Edinburgh đƫ Life Conference:
22 – 24 November 2023, ICC Birmingham
“As an exhibitor you’re never sure if you’ll get the footfall at a conference but the IFoA run a superb event. Great speakers and well organised means they run smoothly and have a great atmosphere. This ensures we get loads of networking time, a chance to spot the people we want to see and probably arrange more follow-up meetings in two days than we get from the rest of the year.” HFG, Exhibitors at the IFoA Conference, GIRO and Life 2022.
To find out more, contact Hannah Watson, Sponsorship Manager: Hannah.watson@actuaries.org.uk
www.theactuary.com
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Upfront Discussion
Make the connection IFoA communities is your new online digital community. Here’s how to get started on the platform
I
FoA communities is a place for you to link up globally, discuss emerging topics, learn from experts, meet like-minded individuals and collaborate in an organic, easy-to-navigate environment. Our practice area boards, committee members and volunteers have spent the past few months building a rich and active community, ready for you to join hot-topic debates and access a range of engaging actuarial content.
IFoA communities is a space built by members for members, where you can quickly and easily find relevant practice area information, events and resources, and share your views on IFoA initiatives and activities.
“Through IFoA communities, I have made connections with actuaries from different practice areas and locations. The platform has created a vibrant community where we are more able to engage in idea sharing – something that was not possible without it. I have had insightful discussions with student and qualified actuaries about non-exam related topics, such as sustainability.” Simbarashe Manzungu, data analytics consultant at Deloitte (Zimbabwe) and research volunteer in the IFoA Sustainability Volunteer Group “The communities platform is a really easy way to be in touch with actuaries I have known for years, and also to liaise with actuaries that I am meeting for the first time now. “I have joined the Life and Sustainability groups, both of which are going to be useful in my work. The Sustainability group provides easy access to a weekly news update newsletter and other great resources. “I have already exchanged messages and had meetings with people who work in different actuarial disciplines and indeed different continents from me. I expect that the platform will enable connections easily.” Patrick Cleary, senior actuary at the Prudential Regulation Authority and member of the IFoA Sustainability Board
Discuss You can start or join a discussion on any subject in our all-member forum or take part in topic-based discussions in our community group forums. The forums are great places to collaborate, learn and problem-solve with your peers, as well as keep up with emerging topics and debates in your areas of interest. You can also start your own discussion on topics you want to hear about.
Connect It’s easy to find and connect with your peers and colleagues in IFoA communities. Click on the Members tab to see who else is online, or search for community members by geography, job title or shared areas of interest. Once you have connected with someone initially, you can then contact them by direct message.
Explore Visit our community groups to find out more about our practice areas and discuss hot topics and the latest research in the community group forum. You can explore topics in depth through the community collection of The Actuary articles, new blog posts on developments in the field and links to relevant community resources. 10 | THE ACTUARY | MARCH 2023
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www.theactuary.com
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