15 minute read
Profession news
News Profession
Upfront
NEWS UPDATES FROM THE ACTUARIAL PROFESSION
Opinion CEO’s comment
Derek Cribb reports on the results of the independent stakeholder perception audit
One of the fundamental aspects of our Royal Charter is that we work ‘in the public interest’ by advancing actuarial science through research and thoughtleadership but also by speaking as the actuarial voice on issues of public debate.
This does not mean that we lobby for a certain position or that we make statements on things where we cannot add value through our expertise. However, it does mean we can provide a considered, objective and evidence-based actuarial view on the big topics facing the world today.
To ensure that our voice has the greatest impact and is heard by the right people, we need to understand what our stakeholders think of us and how they want us to communicate with them. That is why we commissioned ComRes, an independent market research company, to carry out a stakeholder perception audit to provide feedback and help us design an evidence-based public aff airs strategy.
ComRes undertook both qualitative and quantitative fi eldwork, engaging with stakeholders from across government, civil service and regulators, Parliament, media, universities and other educational institutions, national actuarial associations and peer domestic professional bodies, as well as employers of actuaries. The questions they asked were designed to measure both our reputation and our communication with key stakeholders, in order to identify areas of reputational risk and highlight where there was an appetite for an actuarial voice.
What we found was that people trust the Institute and Faculty of Actuaries (IFoA) . They believe that we are acting in the public interest and that we do not have vested interests that are driving our agenda.
There is a great appetite for the IFoA to enter debates, backed by evidence and objectivity, and to speak out on topics that actuaries are experts on. We found that people want to know what actuaries think and they want to hear their opinion on a range of issues.
However, awareness of the IFoA is much lower than it has the potential to
Time for us to speak up
Derek Cribb is the chief executive of the Institute and Faculty of Actuaries
be with a number of core stakeholders. There remains a perception that the IFoA is inward-looking and avoids commenting on current aff airs. It is felt that more thought leadership pieces and targeted communications would help challenge these stereotypes.
Stakeholders appreciate the skill and ability of actuaries to do a complex job well but were often frustrated by an inability to communicate their views. One employer went so far as to say: “[Actuaries] don’t tend to be so good at communication... taking complicated ideas and translating them”. When we looked at what MPs thought about actuaries, we saw a not unfamiliar pattern of answers.
Communication was lowest of our skills as perceived by MPs, with only 2% believing it to be a strength. However, this is the skill rated most important by employers, with 82% saying that good communication is one of the top three qualities they look for when hiring actuaries.
Encouragingly for the actuarial profession as a whole, the vast majority of employers questioned (72%) said that hiring an actuary added signifi cant value to their business.
The research throws down a very real challenge to actuaries and the IFoA to grow their skill base beyond traditional actuarial tasks and to demonstrate these skills more widely. This challenge can be best summed up by one politician’s view of the IFoA: “What’s on their mind, what is top of their agenda... what are they worried about at the moment, have they any advice or suggestions? That’s what I want to hear.” a
Figure 1 Results of stakeholder perception audit
Respect for professional bodies Stakeholders see them as trusted policy partners; there is an appetite for dialogue
Appetite for the profession to have a voice Stakeholders want someone to speak out for actuaries
Areas of public policy interest overlap with the big issues in actuarial science Ageing population, long-term care, etc
Respect for actuaries Viewed as trusted, expert and impartial
There is significant potential for the IFoA to become a trusted voice Positive perception of the IFoA Those who have contact tend to appreciate it
Figure 2 Important qualities for actuaries
Communication skills Intelligence Business acumen Experience in industry sector Experience in particular role Teamwork ability Other Qualifications Personality 0% 40% 60% 20% 80% 100% SOURCE: COMRES
Gore calls for action on responsible investment
Report by Therese Kieve
The former US vice-president, Al Gore, who is also co-founder of asset management fi rm Generation Investment Management, has issued a call to action to bring sustainable investment into the mainstream.
He was speaking to a packed audience at the annual lecture of ShareAction (formerly known as FairPensions) in London’s Guildhall in March. The event was introduced by the group’s chief executive Catherine Howarth, who explained that the change of name refl ected the organisation’s evolving work programme and broader remit.
In an engaging keynote address, Gore covered a number of topics, including how capitalism needs reform in order to address the environmental, social and economic challenges of today. He spoke about dysfunctional levels of inequality, the failure of investors to value environmental and social risks, and the imminent dangers of climate change.
Characterising the current investment system as “functionally insane”, Gore focused on the role that individual pension holders can play in making sure that their savings are invested in a way that serves society and the environment. He also urged the large number of charities with investment portfolios to use their infl uence as shareholders by demanding that companies address issues of environmental and social sustainability in the way they run their businesses. Incentives for pension fund investment managers should be changed, he said, to achieve a long-term focus.
The former vice-president also identifi ed the fl aws in the current economic model and its obsession with GDP expansion at any cost. “Externalities” such as polluting the environment or contributing to global warming are simply not part of the valuation model applied to businesses, he said. He used the example of BP to highlight the absurdity of analysing a company’s business model without giving proper consideration to issues such as the safety of employees working in the business.
Gore also used the analogy of visible light in the electromagnetic spectrum. The entire spectrum is real and contains information, yet we focus on the tiny sliver that is visible light, because it is what we can see. Gore explained that when he was vice-president he had access to intelligence agencies that gave him knowledge from the entire spectrum. This type of thinking needs to be applied to business as well, as human nature is always to use shortcuts that enable us to make quick decisions. However, these shortcuts can mask huge problems as we ignore “the gorilla in
Al Gore: current investment system is “functionally insane”
We are currently consulting on new policy proposals aimed at promoting the role and importance of the working environment in supporting actuaries and the quality of actuarial work. These include the introduction of a Quality Assurance Scheme for organisations and an Actuarial Profession Standard, which is aimed at organisations that employ actuaries.
The proposals recognise the crucial role of employers in infl uencing the culture, policies and expectations within which actuaries work.
This is an important new initiative for the Institute and Faculty of Actuaries, and we would encourage you to read the proposals and give us your views if you haven’t already done so.
ADJUDICATION PANEL At a hearing of the IFoA’s Adjudication Panel on 14 February 2013, the respondent, Mrs Anne Elizabeth Pettifor FIA, faced allegations of misconduct for failure to communicate with her client and failure to produce a calculation within the agreed timescale.
The panel determined that the failures amounted to a prima facie case of misconduct and invited the respondent to accept the following sanctions: a reprimand; a fi ne of £2,000; and a requirement to complete the one-day professional skills course, or the online equivalent, within 12 months.
A copy of the full determination can be found at:
bit.ly/13THWsG
Continuing professional development (CPD)
The following member has faced disciplinary action for failure to record CPD in accordance with the IFoA’s requirements: ● Mr Michael Ralph Tuohy, a reprimand and a fi ne of £2,000: bit.ly/125oyXA Other cases are published on the IFoA’s website. This does not refl ect lesser importance.
Quality Assurance Scheme – your opinion counts
the room”, such as the issue of potentially “unburnable” carbon assets. At an estimated value of $23 trillion, he suggested this could result in a new fi nancial crisis exceeding the sub-prime mortgage crisis.
In summing up, Gore stated: “Democracy has not yet risen to the challenge; it will, but it hasn’t yet. Business leaders have tremendous power, but they are not yet using it. Change has to come from investors.” Gore recommended ShareAction as a means of achieving this change.
Therese Kieve is a life actuary and a member of the managing committee of the IFoA’s Resource and Environment Group
A link to an online version of the consultation package and the questionnaire can be found on the IFoA website.
Please note that the deadline for responses is 8 July.
Members and interested stakeholders are also invited to attend consultation meetings, which will be held in London and Edinburgh during June.
For details of these meetings, please visit the IFoA website or contact
karen.cross@actuaries.org.uk
One hundred live events a year? They’re all in a day’s work for the IFoA’s events team. We catch up with the tireless individuals who keep everything running like clockwork behind the scenes
NEWS UPDATES FROM THE ACTUARIAL PROFESSION
Meet the team and get with the programme
How does the team work?
Amanda Davey, head of events, oversees the overall output from the entire team, which encompasses logistics, technology, production standards and improvements to format to enhance the delegate experience. The team is split between practice areas to give a dedicated account manager approach to the committees. Hannah Watson and her team, Waleed Soliman and Niki Park, deliver events for the health & care and life practice areas. Georgina Jenkins and her team, Petrina Parnell and Elisha Shepherd, deliver events for the risk management and general insurance practice areas. Danielle Reiterbund and her colleague Chantal Voisin deliver events for the pensions and fi nance & investment practice areas.
The event managers work closely with the community managers in their respective practice areas to ensure that we meet the requirements of both the Practice Executive Committees and Continuing Professional Development (CPD) Committees. Each practice area has diff erent demands and it is our job to guarantee that the programme of events refl ects the needs of all our members.
The organisation of all our events requires cross-team working and ongoing communication with our colleagues to leverage their expertise.
Describe a typical day and week
The events team members are masters in multi-tasking. We alternate between organising daily events and planning for future events – we are currently working on the 2014/2015 event programme alongside our day-to-day events schedule. We start the day
Front row: Danielle Reiterbund, Chantal Voisin and Elisha Shepherd Middle row: Petrina Parnell, Amanda Davey and Georgina Jenkins Back row: Niki Park, Waleed Soliman and Hannah Watson
with a managers’ meeting to discuss the teams’ progress on events, and then debrief on the previous day’s activity, ensuring that we evaluate all aspects of the event and look for ways to make improvements. Member feedback is therefore critical for us.
We meet as a team on a weekly basis to plan work schedules for the coming week, iron out any last-minute changes to formats and assess the marketing activity for future events. Once a month, we hold a ‘knowledge transfer’ meeting, where we exchange ideas and best practice.
How are you developing the event programme?
Our conferences are evolving year on year. Working alongside the volunteers on the CPD Committees and the Conference Programme Committees ensures that we achieve our corporate objective: to provide events that are relevant, stretching and inspiring. Our stakeholders face increasing demands on their time, and we are responding to this with more effi cient ways to off er them CPD.
For Actuaries involved in Undertaking Work in Relation to Pension Schemes
The Professional Standards Directory is designed to permit members and others to access the Institute and Faculty of Actuaries’ Actuarial Profession Standards (APSs), together with the latest version of the Financial Reporting Council (FRC) Standards. It can be found at bit.ly/IWaytE
Actuarial Profession Standards APS P1: Duties and Responsibilities of Members Undertaking Work In Relation to Pension Schemes version 2.0
Professional Standards Directory: update 29
APS P1 version 2.0 was published on 29 June 2012 and takes eff ect from 1 July 2013. It can be found at bit.ly/Mg6kQb and includes the following revisions and updates: ● the new confl icts of interest provisions in section 5 and 6.4 to 6.8 of the APS; ● the wider scope of the APS to include all IFoA members undertaking work on pension schemes and not just qualifi ed actuaries;
Our research shows that fl exibility is key for employers sending staff to residential conferences, so we are exploring delegate package options that allow members to obtain a full day’s CPD without compromising the networking aspect of conferences that so many delegates fi nd valuable.
During 2013 we are also continuing to build on our success of fi lming selected events and the plenary sessions at the six residential conferences. This initiative ensures our events are accessible at any time suitable for the individual, no matter where they are based.
● changes to the structure of the Financial Reporting Council and the abolition of the entity previously known as the Board for Actuarial Standards; and ● new defi nitions as a result of the new confl icts of interest provisions.
The changes have been implemented in accordance with the IFoA’s Standards Approval Process. Supporting confl icts of interest guidance may be found at bit.ly/NlVH8z
NEWS IN BRIEF
Updating your contact details
If you need to update your contact details, please contact the membership department on +44 (0)131 240 1325, or at membership@actuaries.org.uk You can also update them online. To log in, your user name is your ARN and your password is your date of birth. Visit www.actuaries.org.uk/user
Learn, interact, grow: ICA 2014
The International Actuarial Association and the actuarial profession in the United States invite you to register for ICA 2014 now. Join more than 2,000 actuaries at the 30th International Congress of Actuaries from 30 March to 4 April 2014. Earn up to 27 continuing professional development hours from sessions covering the latest global trends, and network with peers from around the world. Register online today at: www.ICA2014.org
Is your CPD up to date
The current CPD reporting period ends on 30 June and your records must be updated by 31 July. If you are still looking to make up your hours you may be interested in our online videos at: bit.ly/WoDpIY
New professionalism CPD for experienced members
The IFoA is launching new professionalism CPD for experienced members from July 2013 online as well as at events.
Details of relevant content and events will be clearly signposted with the professional skills logo on the IFoA website.
This new content is designed to help experienced members meet the requirements of Stage 3 of the IFoA’s Professional Skills Training to complete a minimum of two hours of verifi able professionalism CPD each year from 1 July 2013.
This completes the IFoA’s revised suite of training, with the existing Stages 1 and 2 having been introduced in 2012.
Stage 3 is for associates, Fellows, students who have completed Stage 2 and students who joined before 1 July 2006.
You can complete the two hours by attending professionalism events, or downloading online content. This may be provided by the IFoA or another provider such as your employer, another regulator, a local actuarial association (IAA member body), another professional body or reputable training provider, subject to meeting the criteria specifi ed in the Professional Skills Training Handbook.
If you are in scope for the purposes of the IFoA’s CPD scheme, the two hours of Professional Skills Training may also count towards the six hours of professionalism for Category 1 members or towards the 15 hours CPD requirement for Category 2 members.
Full details of the IFoA’s Professional Skills Training can be found in the Professional Skills Training Handbook on the website (download at bit.ly/ProfSkills).
We have updated the FAQs to refl ect the launch of the Stage 3 requirements. However, if you have any additional queries on the IFoA’s Professional Skills Training, please contact us by email at professional.skills@
actuaries.org.uk
R I S K A N D I N V E ST M E N T CONFERENCE 2013
17 – 19 June
The Grand, Brighton The premier conference for actuaries with an interest in risk and investment management. Speakers/topics include: ● Professor Eddie Oberg; ● Communicating risk; ● Tim Harford, The Undercover Economist; ● Actuarial discipline; ● Liquidity in economics, risk and investment; ● Credit spreads. For more information on the programme, sponsorship or to book your place, visit: www.actuaries.org.uk/events
Life Taxation Workshop 2013 13 June
Reserving Seminar 20 June
Grange Tower Bridge Hotel, London For more information and to book your place visit: bit.ly/11DteF0
Current issues in the Irish General Insurance Market – Networking Event 26 June,
Mortality and Longevity Seminar 2013 27 June
Hilton London Tower Bridge
