The Actuary - April 2018

APRIL 2018 theactuary.com

Interview Anthony Painter The magazine of the Institute and Faculty of Actuaries

On universal basic income: the economic and actuarial implications

Solvency II Lessons to improve your internal model approval process

Investment Incorporating ethical and sustainability factors

Health Understanding inequalities in later life

Issues of passporting ting valence and regulatory equivalence

01 cover__The Actuary 1

29/03/2018 15:14

People are inherently optimistic.

But our job is to keep our eye on the tail of the curve. Our independence drives everything we do—without conicts, we only deliver what the client needs, rather than what they want to hear. Still, if the goals are long-term solutions, there is no other way. uk.milliman.com

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28/03/2018 16:35

Contents April 2018

12

18 Features 14 Interview: Anthony Painter The director of the Action & Research Centre at the RSA talks to David Boland about universal basic income

Up Front 4 Editorial Francisco Sebastian on the vital ability to adapt to change 5 President’s comment Marjorie Ngwenya outlines the latest CMI Mortality Projections Model 7 CEO’s comment Derek Cribb introduces two new directors to the IFoA executive 8 IFoA news The latest news, updates and events from the IFoA 12 Opinion The IFoA Risk Margin working party gives its view on risk margin 13 Spotlight The DAG’s #pressforprogress

18 Investment: clean money Quintin Rayer explores why ethical and sustainable investing matters

At The Back 32 Soft skills: quantum negotiation Karen Walch, Stephan Mardyks and Joerg Schmitz on predictive intelligence in negotiation 34 Puzzles

20 Negligence: defining your duty Imran Benson looks at the risks of professional negligence liability for actuaries 23 Insurance: borderland controls Jennifer Strickland and Kyle Audley look at likely regulatory developments post-Brexit 26 Health: inequalities in later life Rachael Docking explains how social factors can compound to make later life challenging

35 Student Jason Whalley on successful leaders and management styles 36 People/society news The latest news, updates and events 38 Actuary of the future Matt Brown, PwC, reward & employment 38 People moves

roval 28 Modelling: improving approval ur Four lessons on improving your IMAP from Jennifer Khaleghy and Ashish Kwatra

32 COVER: SUPERSTOCK

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03 CONTENTS__The Actuary 3

Additional content including daily news can be found at www.theactuary.com Weekly newsletter: for all the latest actuarial news, features and opinion direct to your inbox, sign up at bit.ly/1MN3bXK APRIL 2018 | THE ACTUARY | 3

03/04/2018 09:28

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EDITOR Francisco Sebastian editor@theactuary.com F E AT U R E S E D I T O R S Jeremy Lee, investment, ERM Stephen Hyams, pensions Garry Smith, banking, regulation Yves Colomb, general insurance David Boland, life insurance Joanne Joseph, general insurance Sharad Bajla, general insurance Chris Marsh, life insurance Paul Malloy, reinsurance, life insurance Contact: features@theactuary.com PEOPLE/SOCIETY NEWS EDITOR Yvonne Wan social@theactuary.com STUDENT EDITORS Joseph Mills Jason Whalley student@theactuary.com IFOA EDITOR Kate Pearce +44 (0)207 632 2118 kate.pearce@actuaries.org.uk EDITORIAL ADVISORY PANEL Peter Tompkins (chairman), Naomi Burger, Matthew Edwards, Martin Lunnon, Nick Silver, Jessica Elkin, Sonal Shah INTERNET The Actuary: www.theactuary.com Institute and Faculty of Actuaries: www.actuaries.org.uk Circulation 27,431 (July 2015 to June 2016)

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4 | THE ACTUARY | APRIL 2018

04 EDITORIAL•CT__The Actuary 4

FRANCISCO SEBASTIAN

Surviving change Professor Stephen Hawking, one of the greatest thinkers of our time, sadly passed away in March. His research on gravitational singularity changed the orbit of theoretical physics and cosmology. And his non-conformist personality earned him a place in our hearts.

This note is a humble tribute to Hawking’s positive view of change. He affirmed that “intelligence is the ability to adapt to change”, and change is constant in life. The actuarial profession is certainly not exempt.

Therefore we need to take an intelligent approach to successfully adapt.

In the current issue, The Actuary raises several topics that are changing the dynamics of the actuarial profession. Jennifer Strickland and Kyle Audley provide a great example of how to anticipate change in the political environment: they assess how several Brexit scenarios could affect insurance firms on Solvency II and other relevant regulations (p24). Quintin Rayer discusses challenges and opportunities from adding ethical and sustainability factors into investments (p18).

This rapidly developing trend has important implications for actuaries and investment professionals, as it affects pension funds, insurers and other investors.

Continuing with the change theme from a more human angle, Rachael Docking explains how adverse factors make it hard for certain groups to adjust to the later stages of life (p26). And in our interview this issue, Anthony Painter, director of the Action & Research Centre at the RSA, discusses universal basic income, a concept that defies the current welfare system (p14). Leaving aside the economic controversy Painter’s ideas may trigger, he prompts two issues actuaries are familiar with: the cost and sustainability that defined benefit schemes entail and the threat to the actuarial profession (as we know it) that the fast-evolving technology landscape may pose.

Hopefully the topics discussed in this issue will help readers smoothly and intelligently navigate through change.

Enjoy the read!

FRANCISCO SEBASTIAN EDITOR editor@theactuary.com

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03/04/2018 12:44

MARJORIE NGWENYA

Time to tackle an age-old issue

W

e live in societies that celebrate longevity.

In the UK, reaching the age of 100 is ge commemorated with a congratulatory message from the queen. In Japan, which currently has the greatest number of known centenarians of any country, the occasion is celebrated by receipt of tokens from the prime minister. Across the world, many try to understand, and commercialise, the secrets and potions of those who have defied mortality the longest.

The Continuous Mortality Investigation (CMI) carries out research into mortality and morbidity experience and produces practical tools to use.

The latest CMI Mortality Projections Model, released in March 2018, demonstrates a clear trend of lower rates of mortality improvement in the six years since 2011, but there still remains much debate about whether this trend will persist. Our calculations tell us that the majority of children born in developed economies today can expect to live for more than a century. There has been an increase in life expectancy for a number of decades.

Living beyond the age of 100 has many implications for the ways in which we conduct our lives – the age at which we will MARJORIE retire, the assets in which we will invest, the NGWENYA number of times we will need to re-skill or is the president of change careers, the types of care we will the Institute and need in later life, to name a few.

Faculty of Actuaries Longer lives may imply higher demand for

services. health and care services s. We can n only onlly hope pe that tha h t medical meediical advances will continue to improve the quality of our lives – allowing us to continue to contribute to our economies, keep healthcare costs manageable and maintain our abilities.

Population increases, coupled with longevity, have given rise to many debates regarding the limitations of the earth’s resources. Demand for land for food is intensifying and putting tropical rainforests at risk. There will additionally be the demand for space to live, for food productivity and energy.

All these factors suggest that new variables and scenarios will emerge.

There will be many implications for individuals, businesses and states. As actuaries, we are well placed to deal with the many permutations that are implied and to develop the creative solutions needed to solve these long-term puzzles.

I hope you have been engaging with the IFoA’s campaign on the United Nations’ sustainable development goals (SDGs). These goals seek to tackle the inequalities within our society, many of which affect life expectancy, and are relevant to developing and developed countries. We are asking members to share their experiences and thoughts on the SDGs with us as we think about what some of those creative solutions might be.

On 23 April, we are fortunate to have Michael Green, executive director of the Social Progress Imperative, to deliver the IFoA’s annual Spring Lecture. He will talk about the SDGs, exploring the importance of measuring development in order to drive progress.

“Living beyond the age of 100 has many implications for the ways in which we conduct our lives”

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05 PRESIDENT SEC•CT__The Actuary 5

AUTUMN APRIL 2018 2017 | THE ACTUARY | 5

03/04/2018 12:47

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28/03/2018 16:36

Upfront CEO

DEREK CRIBB

Seen and heard

T

he actuarial world is developing at a fast pace with regard to technology, business areas and geography.

It is more important than ever that we make sure the IFoA is able to make the most of these developments so as to deliver on our charter promise to promote the actuarial profession. If we are quiet, we risk becoming lost in background noise, failing both our members and the public interest.

Against this backdrop, I am delighted to be appointing two new directors to the IFoA executive. They will have a specific remit to make sure we continue to build awareness and understanding of the profession and the IFoA globally.

I am very pleased to announce that Sarah Sim (below, top) has been appointed to the role of director of markets development, effective immediately. Sarah previously held the role of head of global markets development at the IFoA. She has a wealth of experience in marketing, business development, organisational leadership and member bodies, and, prior to joining the IFoA, held the equivalent director role at the Association of Chartered Certified Accountants. Sarah now faces the challenging task of launching a new directorate and recruiting a new team, while developing and delivering on our markets development strategy and supporting the new IFoA Markets Development Board. We are also recruiting for a number of roles that will bring enhanced focus to the British and African markets, and help us optimise opportunities for the profession in areas such as data science.

New to the IFoA is Annette Spencer (right, bottom), who joins us as director of public affairs and research this month. Annette has DEREK CRIBB a wealth of relevant is the chief experience at board executive of the level, particularly in Institute and communications and Faculty of public affairs. She brings Actuaries www.theactuary.com

07 DEREK CRIBB•CT__The Actuary 7

“If we are quiet, we risk becoming lost in background noise, failing both our members and the public interest” experience gained from Zurich, RSA Insurance, the Universities Superannuation Scheme and the Financial Conduct Authority. Annette was also director of communications at The Investment Association and is a Fellow of the Chartered Institute of Public Relations. She joins at a time when our policy and public affairs teams are seeing increasingly successful engagement with key stakeholders and we are expecting the first outputs from our major research investment programme.

With these two key appointments, we will be well positioned to achieve our aim of the IFoA and its members being both sought after and heard in our priority markets and by key stakeholders.

I hope you will join me in welcoming Sarah and Annette into their new roles.

If you would like to know more about our activity in markets development or public affairs and research, please contact: sarah.sim@actuaries.org.uk or annette.spencer@actuaries.org.uk APRIL 2018 | THE ACTUARY | 7

03/04/2018 09:30

Upfront News REGIONAL COMMUNITIES

PRACTICAL GUIDANCE

Terms of engagement

Relevant authorities for APS X1

Scottish Board members meet ‘Heather the Weather’: (L-R) Catherine Thorn, deputy leader, Barry Shannon, John Taylor, Dr Heather Reid OBE, Alan Watson, leader of the Scottish Board, Stuart Mcilvenny, Nick Chadha and Caitlin Stronach

8 | THE ACTUARY | APRIL 2018

08 - 11 IFOA•CT__The Actuary 8

PENSIONS

Will the future blame us?

Earlier this month, IFoA immediate-past president nt Colin Wilson penned an article entitled ‘The pensions industry risks betraying Generation X’ for Pensions Expert, part of the FT group ( see bit.ly/2pa5iw8).

The comment piece begins by asserting that the intergenerational contract – the long-held view that any generation will and should be better off than the one that preceded it – is broken. It goes on to explain that Generation X has been unlucky enough to start saving after defined benefit pensions were already in decline and is also in a position where auto enrolment may have arrived a decade too late.

We have been very active in the debate around intergenerational fairness, as it touches on so much of the policy work we do at the IFoA. If you haven’t seen them, do take a look at our series of intergenerational fairness bulletins, which focus on Health and Care, Pensions and Climate Change: bit.ly/2DxW2Xm In April, we’re hosting an event with the Foundation for Democracy and Sustainable Development, entitled ‘Will the future blame us?

Bringing future generations into today’s politics’.

It will look at the potential legislative levers for encouraging the explicit consideration of intergenerational issues in policymaking, including consideration of those not yet born.

ISTOCK

Engagement activity in the various regional communities has always played a major role in providing actuaries with face-to-face continuing professional development (CPD), as well as professional networking activities. It is fantastic to see the number and scope of these growing around the globe. During the past year, regional communities held over 250 technical and social events around the world, with this number guaranteed to grow as new communities come on board and existing communities make use of their annual £5 member subsidies.

Among the many activities on offer was a three-hour CPD event held in February by the Birmingham Actuarial Society. They enjoyed hearing from speakers Andy Jones, part of EY’s Economic Advisory Executive; Craig Turnbull, who outlined the history of British actuarial thought; and James Fleming, head of HR at NFU Mutual, who described a winning performance culture.

The Scottish Board was delighted to welcome physicist and meteorologist Dr Heather Reid OBE to present at one of its Knowledge Sharing Scotland CPD events. Speaking to an audience of over 70 members, Dr Reid, better known as Heather the Weather from her days as a BBC weather forecaster, spoke about ‘Maths, the weather and me’.

In March, Actuaries Rock, based in Gibraltar, welcomed IFoA president Marjorie Ngwenya, who, among other topics, shared her thoughts on the direction of insurance regulation across the world and whether this represents an opportunity for members.

Lastly, a new community, the New York International Actuarial Network, is about to launch. It plans to hold meetings in the New York area but hopes to welcome members from all over the US. The group is also very keen to connect to other international actuaries.

Information on all the regional communities supported by the IFoA can be found here (bit.ly/2tM1Qg6). For more information on any of these areas or the regional community £5 member subsidy, please email kirstie.smith@actuaries.org.uk

APS X1: Applying Standards to Actuarial Work came into force on 1 July 2017. This sets out principles for members to apply when determining the standards with which they ought to comply when carrying out actuarial work.

The IFoA has now compiled a list of ‘Relevant Authorities’ for the purposes of section 2.2.2 of APS X1.

This can be found on the IFoA’s website (visit bit.ly/2pdvmpk).

It is our hope that this list will be a practical aid for our members, as well as a useful tool for the listed associations to promote awareness of their standards.

The list will be updated periodically.

If you would like any further information on the list, please get in touch with the regulation team at regulation@actuaries.org.uk

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03/04/2018 09:30

Upfront News MACHINE LEARNING

Going beyond the buzzwords Are you curious about machine learning and what it could mean to actuaries? The Modelling, Analytics and Insights from Data (MAID) working party has published a paper entitled ‘Practical Application of Machine Learning Within Actuarial Work’ to bring machine learning to life.

The paper provides an introductory overview of machine learning techniques, including some of the potential benefits of adopting them, and a few programming platforms to consider. Fundamental concepts on data processing (including non-traditional and unstructured data), model training and model validation are brought to life in four exploratory case studies. In doing so, parallels between the machine learning project cycle and the actuarial control cycle are introduced.

The paper concludes with a number of lessons learnt. Of specific relevance to actuaries is the importance of being able

to apply these techniques effectively within an actuarial function by applying our expert domain knowledge. Machine learning techniques are essential toolkits in a world of high-volume and varied datasets. They are also more accessible than ever before via open source software. However, to fully use these techniques, a deep understanding of the business problem and constraints is vital.

The world of machine learning techniques is fast evolving, which means the work of the working party is far from complete. Phase two of the research has started to devise a practical guide on the end-to-end application of machine learning techniques, from defining/ understanding the business problem to communicating and monitoring model performance. Watch this space.

Visit Modelling, Analytics and Insights from Data WP: bit.ly/2FxYEKz

Book now

The IFoA Asia Conference 2018 10-11 May, Bangkok, Thailand

Offering a diverse selection of plenary sessions and cross-practice workshops, the 4th Asia Conference is the perfect opportunity to discover and discuss current and developing actuarial topics and trends in Asia, whilst growing your network of contacts.

Thank you to our Sponsors: Platinum Premium Sponsor

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Book to attend at bit.ly/asiaconference2018

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08 - 11 IFOA•CT__The Actuary 9

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APRIL 2018 | THE ACTUARY | 9

03/04/2018 09:30

Upfront News

EVENTS AND CONFERENCES 18 04 18

01 05 18

Networking event: Managing the unmanageable

Professionalism Lecture Series: Dr Daniel Susskind The future of the professions: how technology will transform the work of human experts

bit.ly/IFoANetworkManage An opportunity to discuss how to manage risks outside our control, for when everything doesn’t turn out OK. The challenges of getting business buy-in to contingency planning using Brexit as an example, with insights from a range of experts.

23 04 18 Spring Lecture bit.ly/SpringLecture2018 The Spring Lecture has now sold out, however it is also being streamed live online. Please book for the live stream online.

23–27 04 18 IFoA Africa Conference 2018 – full schedule online

LO N D O N A N D E D I N B U R G H ( L I V E - S T R E A M )

bit.ly/IFoAFutureProfessionsLondon bit.ly/IFoAFutureProfessionsEdinburgh This lecture is part of the IFoA’s Professionalism Lecture Series 2017-2018 and will be delivered by Dr Daniel Susskind, fellow in economics at Balliol College, University of Oxford, and co-author of best-selling book The Future of the Professions.

Previously he worked in the British government – as a policy adviser in the prime minister’s strategy unit, as a policy analyst in the policy unit at 10 Downing Street, and as a senior policy adviser at the Cabinet Office. He was a Kennedy Scholar at Harvard University.

Dr Daniel Susskind will deliver the event live in London and this will be live streamed to Edinburgh.

BOOK FOR MAURITIUS (23 APRIL)

08 05 18

bit.ly/AfricaConferenceMauritius

CILA

B O O K F O R K E N YA ( 2 5 A P R I L )

E T C V E N U E S , S T PA U L’ S , LO N D O N

bit.ly/AfricaConferenceKenya

bit.ly/CILA2018 Join us at one of the most popular events in the life calendar, regularly drawing esteemed speakers from regulatory bodies, industry (both large and small companies) and consulting firms.

BOOK FOR NIGERIA (27 APRIL)

bit.ly/AfricaConferenceNigeria - This event is co-branded with the Nigerian Actuarial Society IFoA president Marjorie Ngwenya invites you to join her as she hosts the inaugural Africa Roadshow, our series of one-day conferences in Mauritius, Kenya and Nigeria. This offers a superb opportunity to network with peers, global employers and representatives from regulatory bodies, and to hear speakers such as Reeyaz Toraub, Rogers Capital; Prosper Tafadzwa Matiashe, FBC Reinsurance; Peter Tripe, Deloitte; Ashleigh Theophanides, Deloitte; Mukami Njeru, Kenbright Actuarial and Financial Services; and Shaun Bennet, QED Actuaries & Consultants. Additionally, Ben Kemp, IFoA, will host professional skills sessions.

ARC RESEARCH EVENT

Self-selection and risksharing in a modern world of life-long annuities Monday 14 May 2018 17:00 - 19:30 Staple Inn Hall, London In this sessional, professor Jens Perch Nielsen and his co-authors from Cass

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10–11 05 18 Asia Conference 2018 – full programme online BANGKOK, THAIL AND

bit.ly/Asiaconference2018 Promising a strong line-up of world-renowned speakers presenting hot topics across multiple sectors including Life, Risk, Investment, Capital Management, and Health, which affect your field, this event is a must, offering excellent opportunity to grow your network, be at the forefront of trends and discuss the future of your sectors with professionals from around the globe.

Business School find new solutions to three of the most challenging current problems in pension research. This paper is part of the Actuarial Research Centre (ARC) programme ‘Minimising longevity and investment risk while optimising future pension plans’.

The research team proposes to have solved the three challenges, albeit in a first version. The challenges were: a) To make the product so easy to understand that the pensioner can self-select the financial risk and design the

financial investment strategy within minutes b) Automatic and easy-to-understand mortality risk-sharing between customers c) Automatic and easy-to-understand investment guarantee risk-sharing between customers, so that they do not have to pay for their investment guarantee and such that the pension company does not need to issue one.

To register for this event, please visit the events web page at bit.ly/2G6LXDD

PETER SEARLE , ISTOCK

S TA P L E I N N H A L L , LO N D O N

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03/04/2018 09:30

Upfront News

21–23 05 18 Protection, Health and Care Conference 2018 THE GRAND HOTEL, BRIGHTON

bit.ly/ProtectionHealthCare18 We are delighted to be joined by a host of prestigious speakers who will deliver a lively and topical conference. With a compelling programme of innovative plenaries and diverse workshops ranging across topics from insurance implications of obesity to new business models, from genetic technologies to estimating models of functional disability, and from antibiotic resistance to innovations abroad, this promises to be a key date for your event diary and opportunity to discuss current trends with like-minded international professionals. We are also delighted to confirm the after-dinner speaker as broadcaster and mathematician Hannah Fry.

04–05 06 18 Pensions Conference 2018 – SAVE THE DATE BIRMINGHAM

Covering current topics and industry trends, the conference also includes a pre-conference evening dinner (4 May) giving you opportunity to develop your network.

27–28 06 18 Risk and Investment one-day conference – SAVE THE DATE THE GRAND HOTEL, BRIGHTON

bit.ly/IFoARiskInvestmentConf Whether UK-based or international, the conference is open to anyone with an interest in the risk and investment sectors. It offers an ideal forum to meet and exchange ideas with a broad range of professionals. Additionally, you will have excellent opportunity to network at our pre-conference evening dinner on 27 June.

23–26 10 18 GIRO Conference 2018 ICC, BIRMINGHAM

bit.ly/GIRO2018 GIRO is attended annually by over 800 delegates and speakers, who are keen to discuss key topics such as pricing, reserving, modelling and the future of the insurance industry. GIRO 2017 was a huge success, so we have opened bookings early for what we trust will be another topical and successful conference with significant networking opportunities.

21–23 11 18 LIFE Conference 2018 ACC, LIVERPOOL

bit.ly/LifeConf2018 The Life Conference is the premier event for global professionals interested in life insurance. Offering a wide range of workshops and plenary sessions, it’s the perfect opportunity to discover what’s hot and current in life insurance. This conference offers an ideal forum to meet and exchange ideas with a broad range of professionals, to get up-to-date on the latest thinking and innovation.

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P R O T E C T I O N H E A LT H & C A R E C O N F E R E N C E

From obesity to e-cigarettes

BY NICK REILLY, CHAIR, HEALTH AND CARE BOARD

From 21-23 May, Brighton will be hosting the annual Protection, Health and Care Conference. The event is designed to offer interesting, relevant and interactive sessions covering a range of diverse areas. Examples include obesity, antibiotic resistance, technology and e-cigarettes, which have an impact on all of the products we provide to our customers.

The programme includes sessions with both UK and overseas case studies, and caters for those with an interest in private medical insurance (PMI), group insurance and individual protection.

As well as offering delegates the opportunity to develop their actuarial knowledge, the conference will cover medical, underwriting and claims issues that have wider implications for us as a profession.

I look forward to seeing you there.

JOURNAL NEWS

AAS: new edition, new editorial board Volume 12 Part 1 of Annals of Actuarial Science (AAS) has now been published, members can access it at bit.ly/2p8xIGc The editorial board for AAS has also been restructured.

Professor Marcus Christiansen from the University of Oldenburg and Dr Andreas Tsanakas from Cass Business School join as editors. Professor Angus Macdonald from Heriot-Watt University will continue to lead the editorial team, taking up the new role of editor-in-chief.

APRIL 2018 | THE ACTUARY | 11

03/04/2018 09:30

Upfront Opinion

EIOPA not careless but complacent

T

he brief of the working party is to propose changes to the risk margin and also to review its purpose, both under Solvency II and for the UK post-Brexit. We contributed significantly to the risk margin section of the IFoA response to the recent EIOPA consultation about items in the Solvency II Delegated Regulation.

This article is in response to Brian Woods’ letter ‘Once is misfortune, twice looks like carelessness’ in The Actuary in December (bit.ly/2G0U3ko).

The risk margin is defined under Solvency II on the assumption that, if a firm fails, the liabilities will be secured to full Solvency II standards during the complete period of run-off, and that the cost of required capital for this purpose is 6% pa above risk-free.

Under these assumptions, we believe that the Solvency II formula is theoretically correct.

Nevertheless, the following are valid questions for regulators and politicians: Is the target level of security during run-off too high, given the overall cost of providing the risk margin?

Is 6% pa an appropriate cost of capital assumption?

Is the cost of capital method itself appropriate for defining the risk margin?

12 | THE ACTUARY | APRIL 2018

12 SOAPBOX letters•CT__The Actuary 12

Brian Woods challenges the EIOPA statement that there is no conceptual reason why the risk margin, being the cost of providing capital, cannot exceed the capital requirement. We agree with EIOPA that this is theoretically possible, as capital could be lost more than once during run-off.

The risk margin is determined as the cost of capital required by a notional reference undertaking which receives the whole of the firm’s liabilities for run-off. The reference undertaking must itself hold a risk margin, because of the risk of losing its own capital.

Brian Woods describes the change proposed in 2009 by Dutch actuary Hans Waszink as theoretically correct, and he invokes Oscar Wilde in criticising EIOPA for rejecting it twice. Waszink claimed that the discount rate used to determine the risk margin should be the cost of capital rate (ie 6%) rather than the risk-free rate as specified in the Solvency II Delegated Regulation.

Waszink developed his approach on the basis that the risk margin should not exceed the solvency capital requirement (SCR). We do not believe that this is theoretically justified, as it assumes that the risk capital cannot be lost again during run-off and ignores the requirement for the reference company itself to hold a risk margin.

Nevertheless, it is clear that there are major problems with the current risk margin definition, not only with regard to its overall size but especially because of its high sensitivity to interest rates for long-tailed business such as annuities.

We were disappointed with the narrow scope of the risk margin element of the recent EIOPA consultation, which considered only the definition of the cost of

capital rate and not the wider issues.

Perhaps not surprisingly, given the narrow scope, the outcome of the consultation is that EIOPA is proposing no change, despite receiving many sensible comments outlining the problems and suggesting solutions. We feel this demonstrates complacency on behalf of EIOPA, given the extent of problems with the risk margin.

On the other hand, we are encouraged by the response by Sam Woods of the Prudential Regulation Authority (PRA) to the recent Treasury Select Committee report on Solvency II. He stated that the PRA believes the risk margin is too sensitive to interest rates and too high in the current low interest environment. The PRA is considering options to address these issues, while remaining within the constraints of Solvency II law and regulation. We await the outcome with interest.

The technical issues relating to the risk margin are complex, and the working party will continue its work to review the existing risk margin methodology and calibration.

More importantly, we are debating the need for and purpose of the risk margin.

We hope that our conclusions might be helpful to any potential post-Brexit review in the UK, as well as to future reviews of Solvency II in the EU. THE IFOA’S The working RISK MARGIN party would be WORKING PARTY: happy to engage Chris Marsh (chair), with Brian Woods Waqar Ahmed, and indeed other Paul Fulcher, interested parties, Andy Pelkiewicz, in order to reach Stuart Reynolds and Andrew Scott robust conclusions.

ILLUSTRATIONS: ISTOCK

The IFoA Risk Margin working party gives its view on risk margin, possible future changes and the review of its purpose

www.theactuary.com

03/04/2018 09:31

Upfront Spotlight

I N T E R N AT I O N A L WO M E N ’ S D AY

How can you support the DAG’s #pressforprogress?

Some of you will be aware of the focus on diversity that the IFoA has been progressing, in common with many other firms and organisations. International Women’s Day (IWD), on 8 March, was marked this year by the Diversity Advisory Group (DAG) and IFoA staff with a number of different activities and communications on the website and on social media.

As part of this, the DAG has set an ambition in support of the 2018 IWD theme #pressforprogress to call on our female members to seek out and put themselves forward for Practice Board and subcommittee membership, working party participation and conference speakers. We would also like to encourage all members to propose female nominations for honorary fellows this year. The aim would be to see if we can strive towards 30% female participation across the spectrum of engagement within the profession. I have been greatly encouraged by the words of support from many within the profession (see below).

To achieve real progress in a reasonable timeframe, we need everyone to play a part. I am therefore calling on all male members of the profession to actively support this ambition, perhaps by encouraging a female colleague to put themselves forward, by making a nomination, or simply by being more aware of discrepancies and disparities.

Please do feel free to contact the DAG (diversity@ actuaries.org.uk) with any comments or suggestions as we continue to strive to support diversity within the profession.

CHIKA AGHADIUNO Chair of the IFoA Diversity Advisory Group For more information on volunteering opportunities, please go to www.actuaries.org.uk/get-involved/volunteering-ifoa/volunteer-vacancies There is a wide range of roles available, offering development opportunities and the chance to enhance your contacts/profile as well as to extend your knowledge of a subject matter that can be brought to bear in a work context.

IFoA committees: support in action “The GIRO committee always has and always will actively seek to include the widest range of people in its organisation, research and conference. In this way, we ensure we represent our membership and their customers and promote a wide range of views, opinions and discussion. Recent activity to promote diversity within GIRO includes refining our call for speakers, our advertisement for committee members and the selection process for keynote speakers. Diversity is about far more than just gender, but on International Women’s Day we can celebrate that GIRO 2017 was both opened and closed to great acclaim by female keynote speakers.”

Sameer Keshani, chair of the GIRO Committee “The Resource and Environment Research & CPD Committee supports this initiative.

We will shortly be seeking applicants for two sustainable investment vacancies and would very much welcome some female applicants, as women are currently under-represented within the committee.”

Claire Jones, Chair of the Resource and Environment Research & CPD Committee

INSIDE

Interview: Anthony Painter The director of the Action & Research Centre at the RSA explains how universal basic income can provide freedom and security, and enable people to take decisions that are right for their lives

Why clean money matters Quintin Rayer explores how trustees can include sustainable investing as part of their fiduciary responsibilities

Defining your duty Imran Benson looks at the risks of professional negligence liability for actuaries

Borderland controls The implications of Brexit for UK insurers go beyond passporting rights and access to the single market.

Jennifer Strickland and Kyle Audley look at some likely manifestations

Understanding inequalities in later life Rachael Docking looks at challenges that can be compounded in later life and how these might be tackled

Improving approval Jennifer Khaleghy and Anish Kwatra offer four lessons to improve your IMAP for internal model approval

www.theactuary.com

12 SOAPBOX letters•CT__The Actuary 13

03/04/2018 09:31

Features Interview

Anthony Painter talks to David Boland about universal basic income and how, given a sense of freedom and security, people can take decisions that are right for their lives nthony Painter is director of the Action & Research Centre at the Royal Society for the encouragement of Arts, Manufactures and Commerce (RSA). The RSA has three main areas of research interest – economy, education and public services and communities.

I meet Painter at the RSA’s offices just off the Strand, where, in the shadow of the series of paintings by James Barry, depicting ‘Progress of Human Knowledge and Culture’, he outlines his vision for the new social contract.

Universal basic income in a nutshell I begin by asking him to describe universal basic income (UBI).

“Universal basic income is the idea of giving everyone who is a citizen an individual and regular payment to meet their basic needs, without conditions attached,” he says, explaining that the idea has already been trialled in Alaska and Manitoba.

“The Alaskan case was an unanticipated basic income experiment that was brought about because of a Sovereign Wealth Fund they established in the early 1980s,” he says, adding that every individual, including children, gets an annual dividend of $3,000. The amount varies from year to year, depending on the growth in the fund.

One of the criticisms levelled at it is that it would lead people to exit the labour market, but recent research has shown that it has had a negligible impact on rates of employment.

Painter points out that: “It has been different in different sectors.

14 | THE ACTUARY | APRIL 2018

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Features Interview

What it found is that in the tradeable sector, employment has gone down, so you can see how capital investment might replace work in that sector, but in a non-tradeable sector, which is influenced by domestic demand, actually employment rates have gone up.”

He reasons that this is because people have money in their pockets, so they are spending it on local business goods and services, and local firms are then hiring more people and creating work opportunities. Alaska, for example, has gone from having one of the highest levels of inequality in the US to the lowest, and there has been measurable impact on wellbeing, with very low levels of personal indebtedness.

This can also be seen in the Canadian example: “The theory here is that students found they could stay on at school and didn’t have to get a job immediately, and that starts to influence their peer group, so there is a positive network effect. Some trials did show that there was a decline in working hours, but this may also have been down to under-reporting, as if you report your earnings you have less cash.”

I ask if this system could work in the developing world. “It has been working and, if anything, the effects have been even greater,” Painter says. “There have been trials in India with some unanticipated benefits. Women started to work, and, because they had independence, started setting up corporate enterprises and being entrepreneurial.”

Similar progress was seen in Namibia, and trials were undertaken in Kenya undertaken by an aid agency called GiveDirectly. “The reason I think these trials are so positive is because they give a base level of security, and that enables people to make better decisions.

By reducing insecurity, people are able to make a more positive contribution and enjoy better wellbeing.”

PHOTOGRAPH: PETER SEARLE

Financing, cost and sustainability I ask Painter about the funding for this. “We have been giving this a lot of thought as you’d expect,” he says. “We don’t think you should lean very heavily on the income tax system other than for high earners. We should have a progressive income tax system is how I would put it.”

He continues: “What we’ve proposed is that you would endow a fund and you could take advantage of low interest rates in the gilt markets in order to raise £200bn. You’d put that into an endowment fund and invest in global equities and partly in domestic infrastructure, so you could invest in housing, energy and get a ‘patient’ interest return that could be more significant than the base rate that you’d pay on the money that you’d borrowed.

“You’d then look to build up that fund over time, through returns.

For example, the Norwegian sovereign wealth fund gets – after inflation and management fees – 4% a year, which is obviously significantly more than the interest that you’d pay on the endowment. But, obviously, you’d look for other sources of revenue.

You might look at some wealth revenue; you might look at some wealth taxation or corporate levy.”

Painter goes on to explain that the aim is for a fair redistributable APRIL 2018 | THE ACTUARY | 15

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Features Interview system that will make a difference: “We propose you start off with two years of basic income in any 10 years. People take those two years at a time of their choosing to help them change streams of work, reskill, set up a business, help with carer’s responsibilities, and so on. We estimate that will be £5,000 per person, per year, for those two years. To fund that system, you need an average outlay of, say, £15 billion per year. But your return on that, if you achieve Norwegian levels of return, would be about £7 billion a year.”

I ask if this would be the case, if and when, even in the short term, interest rates go up?

“Then it would be less, of course. And that cost would be factored into the system and the endowment would have to pay back the interest on the public debt,” he says, “otherwise it’s debt, and not debt with an asset attached.” This essentially resembles a defined benefit pension fund, and some of these are not currently performing well – so I ask how he would keep this in the black.

“We’ve got a four-year period where it will only be available on a lottery basis to 25% of the UK population, so endowment is from the beginning but if the outflow was too great or if it was too frontloaded you could start to cap the outlay.”

What would happen if the fund goes bust? “Well, I think we are into a different realm then. I like the idea of the fund capturing common assets and redistributing wealth to fund decisions on how they make a contribution. So with the fund being linked to working age and then pension age you would fund it through the tax system as you currently do.”

Redistribution thresholds I ask at what level the wealth taxation would be set. Painter says we should look at net assets of about £750,000. “Your readership would be appalled,” he said, “and Londoners will raise an eyebrow.”

I question whether this would take pension savings into account.

“I’m undecided on that,” he says. “I think you’d have to consider pension savings over a certain level, not pension savings at a low level, so net assets overall. You could look at equity holdings, which would include some pension savings and some housing equity but over a particular level. But if you tax that at a fraction of a per cent you’d still raise a few billion.

“There are two elements of our current social security system that most closely resemble the UBI,” explains Painter. “That’s child benefit and the basic state pension. What UBI does to the state pension is universalise it, so you don’t have to have made your 30 years of contribution. Cosmetically, you might want to keep national insurance in place, but, in reality, you are combining the tax benefits.

“The wealth fund will finance the basic opportunity dividend that we propose, but, longer term, UBI would be paid out at differential rates depending on age. It might be paid out at a higher rate for children under five; then maybe a rate that’s less than that between 5 and 18, and maybe it would increase slightly between 18 and 65. By the time we retire, it would go up to match the level of the current basic state pension. Most models allow for that because that mirrors some of what the current system does and how it operates.”

I ask him about private pension dove-tailing, and ask if he could briefly give us advice on how we design pension products for UBI? “There is quite a lot of psychological evidence that people think in short-term ways when they are in a situation of anxiety or insecurity.

Given that UBI is designed to create a bedrock of security, you can 16 | THE ACTUARY | APRIL 2018

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“The more security you have, the more you have a firm basis on which to make a range of decisions about your life” see people not only taking more risks because they have a secure base but maybe thinking longer term in their financial decisionmaking as well.”

He explains that in terms of the design of private pension products, it goes back to the diversification of work and thinking about products that are more variable, to kick in and out at different ages in accordance with different work and accessing it as of need. So I ask if the idea is that we actually retire the word retirement. Do you think this will lead to better health in retirement?

“Yes, because the more security you have, the more you have something that gives you a firm basis on which to make a range of decisions about your life, and that applies in old age too.”

Artificial intelligence We change tack to discuss artificial intelligence. Painter is convinced that there will be a massive shift in the workforce. “What I don’t buy is the predictions of mass unemployment because of automation.

Work will be redistributed in different ways; there will be a spread of sporadic work, which will also enable people to work well into their 70s and 80s if they want to. Basic income gives people some degree of choice to work where it interests them and gives financial support in retirement.”

With Brexit affecting labour mobility, I ask whether this will be an additional limitation. Painter is unsure: “It depends on how footloose you think international capital is.” He reasons that an extra 2%-3% on corporate taxation would not be the marginal decision resulting in location shift decisions. He also moots a levy on the transfer of data and states. Regarding the subjects of the levy, he says: “It doesn’t matter where people are headquartered, the whole purpose is if they have a presence in this jurisdiction,” he says.

Painter believes that firms need to have a presence in the UK, because they have to sell and deliver goods or services and that then won’t make any difference to the sustainability of UBI.

A future for actuaries Painter cautions that, similar to trading algorithms, we could see risk algorithms working their way into actuarial work. “There’s a human designing what the overall architecture is, but the actual processes are often completely automated.” He believes with risk assessment being informed through the manipulation of large data sets, large amounts of that could be automated. “Which might free up some actuaries to do some strategy and less of the donkey work,” he says.

He cautions further that: “The strategists of the future are the analysts of today. There’s no doubt that the work of an actuary is going to change in form and structure; it is one of the professions where you can see the impact of automation. Whether that means less work or better work depends on the decisions that actuaries themselves make.” www.theactuary.com

03/04/2018 09:32

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28/03/2018 16:40

Features Investment

WHY

clean money MATTERS

Quintin Rayer explores why ethical and sustainable investing matters, the approaches used and how trustees can include it as part of meeting their fiduciary responsibilities

A

lthough of fundamental importance, both ethical and sustainable investment can be seen as ‘nice-to-have’ but non-essential. Several approaches can be taken to move beyond common assumptions that it only involves avoiding investment in companies carrying out unacceptable activities (sometimes called ‘sin stocks’). Pension trustees and other asset owners can benefit from awareness of different approaches that can be tailored to individual objectives.

Charities, in particular, are likely to appreciate guidance on different areas and investment approaches.

these problems will benefit, making them valuable investments.

Businesses should target long-term sustainable returns. Immediate profits should not undermine future earnings.

The modern, technologically enabled world means failures are readily exposed by media, resulting in losses, adverse litigation, reputational damage and clients taking business elsewhere, with the potential to damage company value, share price and even survival.

Ethically orientated companies target long-term profits by addressing challenges and avoiding failures, while accumulating marketing advantages and loyal customers.

Sustainable investing Human activities have generated threats, including climate change and its consequences. Lifespan is increasing, so demographics will affect healthcare and pension costs. Meanwhile, an expanding world population demands improved living standards as less developed countries modernise. Arguably, behaving unsustainably will cease to be an option.

Corporations are ubiquitous and powerful, spanning the globe.

Humanity needs them to end unsustainable behaviours and tackle future challenges, including environmental, climate change and social issues.

Financial markets help support and control corporate behaviour: markets reward ingenuity, efficiency, talent and productivity through the ability to raise funds. Farsighted companies tackling 18 | THE ACTUARY | APRIL 2018

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Companies are encouraged to promote environmental stewardship, consumer protection, human rights and support the social good.

One focus is on environmental, social justice and corporate governance issues (ESG). In sustainable investing, funds are directed to businesses with practices capable of being continued indefinitely without causing harm to current or future generations, or exhausting natural resources. Sustainability is often defined as ensuring development meets the needs of the present generation without compromising the ability of future generations to meet their own needs.

Investment approaches Certain investors want their capital put to an ethically good use – not merely maximising gains but also causing benefit (or at least doing

ISTOCK

Ethical investing matters

www.theactuary.com

03/04/2018 09:32

Features Investment

no harm) while generating decent returns. The commonest approach for those investors is to exclude sectors involved in unacceptable activities.

Exclusion is only one strategy. Some may avoid unethical companies but accept ethically neutral companies doing neither good nor harm (negative screening). Others target only ethical organisations (positive screening or impact investment), or actively seek to influence corporate behaviours for the better (engagement, or shareholder activism), leading to a range of approaches.

In impact investing, only ethical organisations are selected and less emphasis is placed on the need to generate competitive returns.

The utility of the investment is assessed not just in terms of return but also its beneficial environmental or social impact.

Other approaches include ‘best-in-class’, in which the least-bad companies in a sector are selected, to encourage companies in challenging industries to improve. Consider a fictitious mining company against different ethical investment strategies. Suppose it has a weak record in environmental damage and treatment of labour. Both negative and positive screening would probably exclude the company, giving management no motivation to improve activities. However, under a ‘best-in-class’ approach, management can hope to attract investment by being better than their peers. In a competitive market environment, this can result in a ‘race to the top’, leading to genuine improvements.

A diluted approach is portfolio tilting, where the majority of a portfolio is invested conventionally (allaying underperformance concerns), with the remainder invested ethically. For those new to the area, they could consider having, say, 20% of their portfolio managed ethically and the remainder conventionally. As trustees and beneficiaries become more comfortable with the approach, the proportion invested ethically can easily be increased.

requires screening, reducing investment choices and diversification, resulting in DR QUINTIN worse returns, higher risk or both.

RAYER A counter-argument is that harmful is head of research corporate behaviours eventually lead to and ethical investing negative consequences, harming growth and at P1 Investment share price, and that ethical companies enjoy Management a competitive advantage.

Research suggests that ethical approaches can outperform.

Figure 1 presents the results of studies of equity returns covering a range of ethical criteria over periods of up to 27 years, with statistically significant outperformance observed. The studies use long-short strategies (long ‘ethical’, short ‘unethical’), extending to allowance for exposure to market risk and portfolio style tilts (size, value versus growth and momentum effects) by using the Carhart four-factor model.

Since investors will not generally be able to access a ‘short’ ethical strategy (and may not regard shorting stocks as ethical), only the performance of the long part of the strategy has been presented in Figure 1.

Of course, historical analyses can be challenged as offering no guarantee of future performance. Equally, future market conditions may change, and perhaps environmental, social and governance factors will become better addressed.

However, the results should give cause for thought to those who are tempted to assume that it is ‘obvious’ that ethical portfolios ‘must’ underperform the wider market.

“Arguably, behaving unsustainably will cease to be an option”

Implementation The price of conscience Some investors fear that ethical portfolios are likely to underperform. Their argument is usually that ethical investment FIGURE 1: Studies showing outperformance by ethical strategies

OUTPERFORMANCE PER YEAR

PERIOD ANALYSED

ETHICAL CRITERIA

1.3% to 4.0%

1995-2003

Environmental

2.3% to 3.6%

1992-2004

Environmental, Social

2.3% to 3.8%

1984-2011

Employment quality

3.5%

1990-1999

Governance

3.7% to 5.2% (estimated)

1990-2003

Governance

Sources: J. Derwall, N. Guenster, R. Bauer and K. Koedijk, The eco-efficiency premium puzzle, Financial Analysts Journal, vol.

61, no. 2, pp. 51-63, 2005; A. Kempf and P. Osthoff, The effect of socially responsible investing on portfolio performance, CFR Working Paper, no. 06-10, 2007; A. Edmans, The link between job satisfaction and firm value, with implications for corporate social responsibility, Academy of Management Perspectives, November 2012; P. Gompers, J. Ishii and A. Metrick, Corporate governance and equity prices, Quarterly Journal of Economics, vol. 118, no. 1, pp. 107-155, 2003; and L. Bebchuk, A. Cohen and A. Ferrell, What matters in corporate governance?, The Review of Financial Studies, vol. 22, no. 2, pp. 783-827, 2008.

www.theactuary.com

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Ethical strategies can be accessed through mutual funds. However, this is a complex area, because analysis beyond the usual investment due diligence is needed to confirm that the ethical strategies used meet the investor’s needs. In this respect, trustees may benefit from support from asset managers with specific skills, qualifications and expertise in this area.

Trustees can help ensure that funds selected meet specific ethical portfolio objectives, particularly for investors such as charities or religious organisations that have specific requirements. Such matters can be extremely sensitive, particularly if inappropriate selections mean funds are found to have investments in companies with unacceptable activities.

In this way, it will be clear that trustees are actively working to ensure they are making appropriate investment decisions on behalf of their ultimate beneficiaries, thereby demonstrating that they are seriously considering their fiduciary responsibilities.

APRIL 2018 | THE ACTUARY | 19

03/04/2018 09:32

Features Negligence

Imran Benson looks at the risks of professional negligence liability for actuaries

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03/04/2018 09:33

Features Negligence

ctuaries are used to dealing in risk, at least the risks of others. But there is another kind of risk. The risk of getting it wrong and of being liable for the consequences.

This article is about the nature and extent of that risk, how the law will treat the negligent actuary and what you can do to protect yourself.

For a claimant to win a claim for professional negligence, they need to show that: They were owed a duty of care The professional acted in a way no reasonably competent professional in his or her position should have acted, and This has caused the victim loss of a kind that fell within the duty owed.

ISTOCK

Duty: who is my client?

The client will be owed a duty of care. The client is normally the person who retains the actuary and who is liable to pay the actuary’s fees and with whom, ideally, there is a signed retainer letter.

But business life is not always that simple. A professional hired

by X might also be found to owe a duty to Y. This will depend on a range of factors — the current favoured test is whether, in all the circumstances, the professional’s actions were an assumption of www.theactuary.com

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responsibility to Y. Where the professional knew or ought to have known that Y would rely on the work and might suffer loss if it was wrong, then often the professional will be held to owe Y a duty.

In the world of pensions advice, this scenario can be readily understood. Just because trustees retain the actuary to give advice, the employer can still be owed a duty of care as well.

After all, if the actuary says substantial extra contributions are necessary, and the relationship between trustee and employer is a co-operative one where the employer is foreseeably likely to automatically follow any such advice, it would seem hard to say that the employer would have no remedy if the actuary’s advice turned out to be wrong.

But the duty might go further. Transferring out of defined benefit schemes is currently very common. If an actuary has calculated that value wrongly, leading to underpayment to members, it might well be that groups of members band together to bring a claim against the actuary and they would be owed a duty of care, especially if the actuary prepared bespoke valuations for each member.

Or if an actuary wrongly advises trustees that scheme benefits should not be raised or, worse still, should be cut, the members might claim against the actuary for being deprived of benefits otherwise due if it later proves impossible to correct the position.

An actuary might even give information or advice about the solvency of the pension fund in the context of a mergers and acquisitions transaction. If that is foreseeably relied on by an acquiring company, the actuary could well be liable for any errors.

So the breadth of potential victims, and claimants, is much wider than just the client. These issues commonly arise in claims against accountants, auditors, lawyers and valuers. There is an extensive body of case law, and much depends on the individual facts.

The best defensive practice is to clearly define the client and ensure that all advice is addressed to only that client – and can be relied on by only that client. On top of all this, an actuary, like all professionals, owes a duty to his client to act with loyalty. If you form the view that there is reason to consider another actuary has seriously erred, the law would normally expect you to report this to your client.

APRIL 2018 | THE ACTUARY | 21

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Features Negligence

Breach In assessing whether an actuary has been negligent, the test is whether any reasonably competent actuary in his or her position could have acted in the same way.

If the mistake is one of arithmetic, this is easily established. If, however, the mistake related to a matter of judgment or assumption, then it will be more difficult. If a reasonable body of opinion would have done the same and it is not a logically incoherent position, then generally speaking it will not be negligent.

Traditionally, the courts would grant the actuary a large amount of discretion before finding negligence, but there may be signs this approach is becoming more nuanced.

In the medical negligence world, physicians and surgeons have to grapple with difficult matters of judgment on a daily basis, yet successful claims are made every day.

Surveyors often value development sites, and in doing so must make assumptions about the future value of the developed site, the various inputs to get there (the cost of build, funding, profit, etc) before reaching the market value of the undeveloped land.

The court’s approach to such claims is to identify for itself the “true market value” of the land, apply a margin of about 15% and if the valuer is outside that margin, they will generally be found to be negligent. It might well be the case that the court takes the same approach in an actuary claim.

For example, if the actuary says a scheme’s deficit is £100m, but the court finds the “correct” amount was £150m, and if although the employer is now insolvent, properly advised it could and would have made a greater contribution, then the actuary will be liable to make good the loss.

Or suppose that an actuary helps to formulate a pricing strategy for a car insurer that seriously underprices the risk. Although the insurer might at first be delighted to be propelled to the top of the comparison website tables, once a flood of dreadful claims come in the underwriter might want to recover from the actuary. If the actuary has made a single wrong assumption, they could well be liable.

actually happened and the difference is the loss factually caused by the negligence.

So if a scheme would have been £20m better off, or a member £20,000 better off, the numbers are simple. If a car insurer would have priced premiums higher, the maths is a little more complex, but the issues still relatively straightforward. The claimant would have to show what loss they actually suffered and compare that to the hypothetical situation where they would have had higher premiums but fewer policies and fewer claims.

But factual causation is not the only test. Legal causation is also necessary. This means asking whether the loss sought falls within the scope of the professional’s duty.

This is best illustrated by the parable of the skier’s knee. Assume a skier goes to the doctor for a preholiday check-up. The doctor negligently fails to identify a weak knee. While on the mountains the skier falls victim to an avalanche.

Competently advised, the trip would have been cancelled and the avalanche of no consequence. But for the negligence, the skier would have been better off. Yet the law does not make the doctor liable for problems flowing from the avalanche. That is because the doctor’s duty related to giving health advice. It was the avalanche that caused the skier to suffer – which is nothing to do with the GP. In this way, the law endeavours to ensure that the professional is only liable for losses attributable to the scope of the duty owed to the victim. This means that there must be detailed scrutiny of the role of the professional and comparison with the type of loss sought.

" The extent of any damages ordered against an actuary depends on the loss the claimant can prove they have suffered."

Causation and loss Ultimately, litigation is about money. The extent of any damages ordered against an actuary depends on the loss the claimant can prove they have suffered. This is often the most difficult part of a claimant’s case. There are two concepts here: factual causation and legal causation. Factual causation is the “but for” test – but for the negligence, what would have happened? Compare that to what 22 | THE ACTUARY | APRIL 2018

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Self-help What can be done to minimise liabilities?

Agree client care letters. Make sure they clearly identify the client and limit the amount of potential liability. Make sure this is clearly and visibly identified. When giving advice, clearly address only those to whom you are willing to accept liability, and expressly disclaim it in respect of all others. If circumstance arises where you fear there might be a problem, seek advice. If you think someone else has made a mistake, your client should probably be told.

IMRAN BENSON is a barrister specialising in professional negligence at Hailsham Chambers

This article is a general summary of the law of England and Wales. It should not be relied upon for any specific purpose or matter. www.theactuary.com

03/04/2018 12:57

Features Insurance

The T he iimplications mplications o off B Brexit rexit ffor or U UK K insurers go go beyond beyyond passporting passppor tingg insurers rrights ights aand nd aaccess ccesss to to the thee single single m arkkett. JJennifer ennifeer SStrickland triccklandd andd market.

K yle A udley look lookk at at some so ome likely likelly Kyle Audley rregulatory egulator y ddevelopments e ve l o p m e n t s www.theactuary.com

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Mirroring Solvency II The extent to which the principles of Solvency II are desirable in a post-Brexit UK should be considered. These principles are: ● To increase harmonisation across Europe ● To reflect the level of risk undertaken in required capital ● To incentivise good risk management.

The market may remain invested in the latter two. However, European harmonisation may no longer be an important consideration for the UK market, particularly given the differences that already exist between EU members’ application of the regime.

Given that the UK was influential in the development of the regime, many aspects of Solvency II are tailored to reflect the economics of insurance products sold by UK companies.

Maintaining the status quo by retaining Solvency II would ensure continuity of the regulatory environment for firms. Having recently adopted Solvency II, and bearing in mind the transitional measures in place for many firms, the introduction of a new regime could bring about significant costs. It could also present the complicated issue of how to avoid a shock to insurers’ capital requirements and balance sheets.

Insurers may have little appetite for such changes, particularly so soon after the introduction of Solvency II. Additionally, upon exiting the EU, the UK is unlikely to continue to serve as a voting member of the European Insurance and Occupational Pensions Authority (EIOPA) Board of Supervisors. This ‘seat at the table’ is essential in order to actively influence regulation. And, without a UK presence in these developments, some of the aspects of Solvency II that were originally introduced with the interests of UK insurers in mind may be at risk of change in the absence of the UK’s influence..

Solvency II equivalence Solvency II equivalent status may be granted between comparable aspects of two regimes on a temporary, provisional or full basis.

For example, the US has been granted equivalence on a temporary basis, and the Bermudian and Swiss regimes have full equivalence.

Regime equivalence does not require the regimes to be identical.

However, given the UK currently has a fully compliant regime, each step change in UK regulation would represent a move away from a full replication of Solvency II. This means that arguments against

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equivalence may be made more plainly, as individual differences are more identifiable. Fundamentally, the extent to which the UK can modify the existing regime would be limited by the need to maintain sufficient consistency to retain equivalence.

By maintaining equivalence, the UK can avoid being subject to the rules and treatment of a ‘third country’ under Solvency II. This allows EU-domiciled groups to report on their UK business using the local solvency regime, and would avoid additional work for groups based in the EU with a UK subsidiary. If the UK were to be recognised as a ‘third country’ under Solvency II, the capital requirements relating to UK exposures may become more onerous, as unrated counterparties in a ‘third country’ incur a greater counterparty default capital requirement for those insurers under the Solvency II regime.

There are two ways in which the UK could start to diverge from Solvency II while potentially retaining equivalence: by opting out of new or amended EIOPA regulation; or by proposing new regulation domestically. A change in one regime that is not reflected in the other will lead to less similar regimes.

The Prudential Regulation Authority (PRA) may also elect to use the additional freedom afforded by Brexit to permit a looser interpretation of Solvency II rules, and regulatory effort may focus on those aspects most material to the UK market. For example, the matching adjustment is more heavily employed within the UK than in many other EU countries, and the PRA has publicly disagreed with the risk margin methodology. These may therefore be areas of focus.

A new regime The gradual ‘drift’ over time of a modified Solvency II approach may ultimately result in losing equivalence. The ultimate decision to revoke equivalence can be effected by either side. Alternatively, the UK may propose an entirely new regime. Nevertheless, we note that Solvency II bears a strong resemblance in many ways to the historical UK individual capital assessment methodology, which may form the basis for any new regulatory regime.

The overall framework of Solvency II could be retained without equivalence being granted by the EU Commission. Within this framework, the UK would be free to propose new fundamental assumptions, which could influence the perceived competitiveness of the UK insurance market. A 2017 letter from Sam Woods, the PRA’s chief executive, outlined several areas where the PRA and the insurance industry both see potential value in diverging from the current Solvency II regulations and EIOPA guidelines, indicating where we could see deviation from Solvency II post-Brexit, notably: The risk margin cost of capital charge The recalculation of the transitional measure on technical provisions Contract boundaries The amount of flexibility given to insurers, in particular in relation to the matching adjustment.

In addition, there may be appetite within the industry and the PRA for changes regarding: The treatment of risk mitigation strategies The treatment of certain asset classes and their impact on capital requirements

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rexit is likely to have a large impact on the insurance industry, in areas such as legal changes, regulatory developments and shifts in the demographics of the UK’s insured population. The approach taken towards Solvency II, in particular, will be a key determinant of the future of UK insurance regulation, and the UK may choose to refine its approach once outside the EU. Three potential approaches to regulation would be: mirroring Solvency II; a Solvency II equivalent regime; or a modified regime that diverges materially from Solvency II.

www.theactuary.com

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Features Insurance

Elements of the standard formula calculation.

However, a historically prudent PRA may be disinclined to materially weaken capital requirements and may instead prefer to adjust or strengthen the requirements of Solvency II while maintaining equivalence to Solvency II.

Regulatory developments – beyond Solvency II Thinking beyond Solvency II, Brexit could give the UK the freedom to amend many elements of regulation inherited from the EU. Two notable areas of potential change affecting insurance firms are: Packaged Retail and Insurance-based Investment Products (PRIIPs) Since the implementation of PRIIPs regulation in January 2018, concerns have been raised within the insurance industry that in certain instances the scenarios that firms are required to include present too optimistic a view and so have ‘the potential to mislead investors’. The approach taken by the Financial Conduct Authority (FCA) to date – permitting firms to provide additional clarification to clients – may not be an acceptable long-term solution in the best interest of consumers as it may not be useful for clients and could cause confusion. If these issues are not addressed at EU-level, the FCA may choose to do so unilaterally post-Brexit.

General Data Protection Regulation (GDPR) UK insurers frequently require cross-border data transfers in order to collect premiums or pay benefits to overseas policyholders and are likely to be directly affected by any changes in data-related regulation. GDPR harmonises data privacy laws across Europe and sets high standards for data protection and the privacy rights of consumers. While the UK government has issued a statement of intent regarding the adoption of GDPR into UK law, they may opt to diverge from the EU regulation over time. Any such changes are likely to affect the way insurers manage, store and protect their data, with potential impacts on the security of policyholders’ data, particularly during cross-border transfers.

In addition, post-Brexit, the UK might no longer fall within existing cross-border data agreements held by the EU, so could be required to forge new deals with the US and other countries. This would present the UK with an opportunity to enter into tailored agreements that support and encourage international collaboration. Although there may still be regulatory and other barriers to overseas data transfers in the future, improved data transfer capabilities may enable UK insurers to access and embed technological developments and infrastructure, currently only available overseas, into their business. This could improve operating efficiencies and customer service capabilities, as well as enhance firms’ ability to work collaboratively with overseas subsidiaries.

Some insurers may be taking a ‘wait and see’ approach to Brexit, particularly those that do not have policyholders in other EU states.

As we explore further in our full paper ‘Brexit: Beyond Passporting’ (see http://uk.milliman.com/), the repercussions of Brexit are likely to have very real consequences within the UK market.

Brexit is both an emerging risk and an opportunity. Firms that are proactive, have considered and developed appropriate strategies for each possible outcome, and have adequately prepared for shifting markets, should be well placed to thrive in the post-Brexit era.

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JENNIFER STRICKLAND is a consultant at Milliman’s London Life practice and coauthor of the paper ‘Brexit: Beyond Passporting’

KYLE AUDLEY is a consultant at Milliman’s London Life practice and coauthor of the paper ‘Brexit: Beyond Passporting’

APRIL 2018 | THE ACTUARY | 25

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Features Health

UNDERSTANDING INEQUALITIES

in later life Rachael Docking explains how factors throughout life can compound to make later life challenging, and points to how such inequalities might be tackled

For each outcome, researchers from Newcastle University and International Longevity Centre – UK considered inequalities relating to characteristics such as gender, race, age and socioeconomic status. We found that a combination of individual circumstances and experiences throughout a person’s lifetime play a role in determining their quality of life in later life.

Adverse circumstances in childhood, poor education and work opportunities, along with weak social connections, can compound to create long-term consequences for people’s income, health and wellbeing in older age. This can be made worse by factors such as reduced retirement income and long-term health conditions.

We also found that multiple factors can combine and overlap to influence individual and group experiences of later life. For 26 | THE ACTUARY | APRIL 2018

26 -27 inequalities•CT__The Actuary 26

example, on average, women are at greatest risk of financial insecurity owing to poor retirement income. The same applies on average to people from black and minority ethnic (BME) communities, and so women from BME communities can experience even greater inequalities in this respect.

What kinds of inequalities exist in later life?

Huge disparities exist in health, financial security, social connections and housing, with negative impacts accumulating as people grow older. These inequalities are largely a product of poverty and disadvantage throughout life. Women are disproportionately disadvantaged, as are those with BME backgrounds, and some evidence suggests that those from lesbian, gay, bisexual and transgender communities may be at increased risk of inequalities in later life.

We also found: Physical and mental health: Older people with the least wealth are more likely to have one or more health problems, including angina, diabetes, depression, osteoarthritis and cataracts. Poorer people in later life are up to 4.2 times more likely to have diabetes and up to 15.1 times more likely to have osteoarthritis. Socioeconomic status in early life continues to affect health outcomes in older age.

Evidence suggests that the impact of disadvantage experienced in early life can be lessened if one’s socioeconomic status improves over time.

Financial security: Only 36% of women aged 65-69 years received

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here are stark inequalities in how differently people can experience later life; it is an enjoyable and healthy period for some and a time of profound challenge for others.

The causes of such diversity are complex, inter-related and challenging to address.

The Centre for Ageing Better recently published a review of evidence from the past decade aiming to understand the nature of inequalities related to: Physical and mental health Social connections Healthy life expectancy Financial security Subjective wellbeing Living environment

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03/04/2018 09:34

Features Health

Poorer people in later life are up to

15.1 times more likely to have osteoarthritis

the full state pension in 2014, compared with 88% of men of the same age. Female part-time workers or those in low-grade jobs are at greater risk, and women who have spent most of their lives working part-time are no better off in retirement than women who have never worked. Evidence suggests that people from ethnic minority backgrounds are less likely to have adequate pension savings, with women at particular risk.

Social connections: Higher education and wealth are associated with better social connections and leisure activity in later life.

Older lesbian, gay and bisexual people can experience challenges that others don’t face – for some the impact of of women aged 65-69 years losing a partner can be worsened if their networks perceive received the full state their bereavement as loss of a ‘friend’. pension in 2014, compared with 88% Home and living environment: Many older people in socially of men deprived areas worry about safety, security and mobility in their living environment. Older people with visual impairment experience worse housing outcomes, in terms of tenure and home condition, than people with good vision. A lack of research about housing inequalities for older people means we don’t understand fully how poor housing affects those in later life.

36%

What needs to be done?

Our research has been a stark reminder of the persistent nature of inequalities affecting people in later life. For too long we have ignored or overlooked diversity in our ageing population, through focusing primarily on the differences between young and old, rather than the differences that exist within generations.

Given that our ageing population is becoming increasingly diverse, the problems are likely to get worse without measures to tackle them.

A good later life is something we should expect for everyone. It should not be conditional on where we live or how much money we have. Our gender, race, disability or sexuality should not be barriers. This is a challenge not only for government but for society as a whole. It requires policy and practice that is tailored, flexible and responsive, and focuses on addressing the root-causes of disadvantage.

DR RACHAEL DOCKING is senior evidence manager for the Centre for Ageing Better

Read the full report on the Centre for Ageing Better website: www.ageing-better.org.uk

www.theactuary.com

26 -27 inequalities•CT__The Actuary 27

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ISTOCK

olvency II has meant a lot of extra work for those working within the insurance industry, not least those involved within the capital modelling arena. It has now been more than two years since the first wave of internal model approval process (IMAP). With many companies still considering model approval and ongoing restructuring in preparation for Brexit – resulting in further major model change – it would be useful to know exactly where we have ended up so far.

So what have been the key practical issues to implement a successful IMAP? And what does ‘good’ look like?

03/04/2018 10:23

Features Modelling

This article sets out four key lessons learned from the experience of capital actuaries, discussing common market approach and best practice observed in the UK industry, with the objective of offering insight to the practical issues around the IMAP.

Plan the project carefully and early before resourcing up – avoid unnecessary delays and higher costs The number of resources needed to implement a successful IMAP project is difficult to measure upfront and is dependent on a range of factors. However, it is very easy to assume that IMAP is a big project and so blindly recruit X number of people with solid capital and IMAP experience.

To us, that is not best practice and certainly not cost-effective. In our opinion, what you need, first and foremost, is a small number of people who fully understand the requirements of IMAP and have experience in implementing all aspects of the programme. Such people will tend to be actuaries (and experienced programme managers) who have been involved with implementing and managing a Solvency II programme. They should have the technical expertise (strong capital background) and understand the broader requirements of a successful IMAP programme.

It is important to understand, at the outset, exactly what documents and processes need to be developed, and exactly what these look like: What does a good technical methodology and calibration document look like? What is a future management actions plan? What policies do you need to include? What do you need to do around data, systems, IT and controls? How do you write a good common application package (CAP)? What is required to demonstrate a strong independent validation process? What should you include in the final cover letter?

These are just some of the questions that need thinking about at the planning stage, so that you do not under or overestimate the effort involved. Once you have identified all the activities, and have a good idea of the effort required, then it is more appropriate and cost-effective to think about resourcing.

As a final point, one of the most challenging aspects of planning is the management of (often tight) deadlines. In particular, the independent validation, board reporting and regulatory submission timescales tend to have a very short timeframe between them.

Plan these carefully in advance to ensure you have enough time to meet each one. Poor planning at the start and a lack of understanding of what is required (and the quality of work required) tend to result in delays and subsequently higher costs in the long run.

“Poor planning and a lack of understanding of what is required tend to result in delays and subsequently higher costs in the long run”

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Transitioning from ICA to a Solvency II internal model can be a long process There are many subtle technical differences between individual capital assessment (ICA) and Solvency II internal model requirements. The flexibility of the existing ICA model to be reshaped into an internal model is a key factor in a smooth transition from an ICA model to an internal model. However, the main differences, in our opinion, are not limited to the model itself, but areas around it. More specifically: Governance: Under the ICA regime, firms typically had some sign-off process for the model and its outputs. However, Solvency II requirements bring the governance process to a different level, from the board’s ownership of the internal model, to an expert judgment process, to various policies and committees.

Independent validation: Under the ICA regime, firms typically had an informal validation process, carried out by the capital modelling team to ensure the integrity of the model outputs. This informal validation process is the so-called ‘small v’ referred to by the Prudential Regulation Authority (PRA), the UK regulator.

Under the Solvency II regime, it is the ‘big V’ that the PRA is mostly interested in, where the internal model is formally validated by an independent party according to the firm’s validation policy and standards.

Documentation: Under the ICA regime, firms typically had some model documentation. However, Solvency II regulation requires more comprehensive documentation, which should be “sufficient to ensure that any independent knowledgeable third party would be able to understand” (Delegated Regulation Article 243, paragraph 1). Also, it covers not just the capital model itself but all other aspects around it, in order to meet the many requirements set out in the CAP. Clearly, having an ICA model is a good starting point, but, unfortunately, there is still a long journey towards meeting all the IMAP requirements. There is no hard rule regarding how long it will take for the transition from ICA to IMAP. Very broadly speaking, based on our experience in the UK industry, companies tend to spend two to three years in preparation for an IMAP submission.

Have a very clear documentation structure – the CAP can be very useful!

It is very helpful to have a clear documentation structure, which can be used not only to develop your programme but also as a way of articulating the full suite of documents to the regulator. A good documentation structure will include a full list of documents (a so-called ‘inventory of evidence’), the purpose of each document and the documentation trees to show how all these documents link together.

The first obvious question is how do you come up with the full list of documents required? This is where the CAP can be very useful.

The CAP is a large spreadsheet designed by the European Insurance and Occupational Pensions Authority (EIOPA), which states the internal model requirements. As part of the final application (and APRIL 2018 | THE ACTUARY | 29

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Features Modelling

pre-application), you are required to complete this spreadsheet explaining how you satisfy these requirements with reference to relevant documentation.

Although completion of the CAP itself may be a daunting exercise, it is a great starting point for developing a documentation structure. As an example, you can split the CAP requirements into separate categories (calibration, data, systems) and develop a list of documents required to satisfy the requirements for each category.

Independent validation is a key area of focus for the PRA and is pivotal to a successful IMAP submission.

Independent validation is one of the main areas that the PRA focuses on and is pivotal to a successful IMAP submission. The process covers setting up an appropriate validation policy, drawing up a validation test plan, careful selection of independent and skilful validators, adequate resource allocation, execution of the test plan, and a final validation report. In order to demonstrate a credible validation process, all these steps should be carried out correctly from the initial cycle of validation. Otherwise you could waste a lot of time (ie, months), which would jeopardise the IMAP timeline.

28-30 feature__The Actuary 30

A common mistake that we have seen across the market is the use of test plans that make validation a box-ticking audit process, with hundreds of validation tests merely confirming the existence of the required evidence, instead of appraising the quality of the evidence.

This adds little value to the IMAP process or to the business. The best practice is to have meaningful validation tests carried out by skilful validators to assess the quality of the evidence. It is also important to validate not just the capital model itself but a much wider range of areas, including governance, model use, model development, IT and systems, and data.

For pre-application, the PRA requires, at a minimum, one full cycle of independent validation (this includes demonstrating ongoing remediation activity for the issues identified). Between the pre-application and the final application, a new full cycle of independent validation is expected to take place.

ASHISH KWATRA AND JENNIFER (KANG) KHALEGHY are both experienced capital actuaries, specialising in Solvency II and implementation of the IMAP programmes

03/04/2018 09:35

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INSIDE

The art of quantum negotiation Karen Walch, Stephen Mardyks and Joerg Schmitz describe predictive intelligence and the art of quantum negotiation

Pioneers of the world Jason Whalley looks at successful leaders and their styles of management

People and society news A round-up of actuarial social and professional activities

Actuary of the future Matt Brown of PwC

People moves New appointments and promotions across the profession

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APRIL 2018 | THE ACTUARY | 31

31 section break__The Actuary 31

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At the back Soft skills

A R E Y O U G E T T I N G W H AT Y O U N E E D ?

The art of quantum negotiation Karen Walch, Stephan Mardyks and Joerg Schmitz describe predictive intelligence and the art of quantum negotiation ur ability to influence decision-making and value creation is not just a function of our analyses but relies on our ability to understand the wider context, needs, and interests of our stakeholders. This is even more important in the current times of increasing complexity and insecurity. The mind and skillset of quantum negotiators can enrich our professional and personal lives – in salary negotiations, both come together.

Managing risk and uncertainty is at the heart of actuarial science: financial security, stability and decision-making critically depend on it. Its tools are highly analytic and mathematical and inform the core calculus of hard-nosed decision-making - detached and dispassionate, clinical and reliable. What it teaches about risk and risk management is that it depends on our ability to tap the underlying laws of probability and the mathematics of complexity.

Quantum negotiation is similar, but focuses on the other end of the risk spectrum: the volatility and dynamism of the interpersonal experiences in human interactions that so critically underpin behaviour, decisions and actions. Managing the risks of human volatility, misunderstanding, unproductive conflict and d mis-alignment among social actors requires that we tap p the underlying laws and dynamics that govern the human man n experience and social interactions.

Just as predictive analytics are critical to managing risks isks and disruption in the global economy, climate, and social/ ial/ political instability, the human nervous system scans the he environment and searches for anomalies, risks and threats. It translates environmental data into stress levels, vels, which trigger various states of alertness and comfort.

Paired with functioning governance structures and decision-making processes, analytics make us responsive ive and adaptive as a group or organisation. Our nervous systems, paired with social intelligence, make us

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responsive and adaptable at the interpersonal level.

Understanding and integrating this parallel function of vastly different systems should help us in our interactions with stakeholders and navigate a wide variety of personal and professional situations with greater ease and success.

And, if this is not reason enough, here are three more compelling arguments for developing our quantum negotiation practice: 1 We negotiate all the time, whether we know it or not.

Any time there is something we rely on others for, we negotiate. Whenever we calibrate expectations or create shared meaning, make plans, take decisions, look for new ways of doing things, share limited resources or solve pressing problems, we are negotiating. It is helpful, therefore, to explore negotiation widely and to think more deeply about our skills and identity as negotiators.

2 We interact in increasingly complex, diverse and interdependent webs of relationships. While the purely transactional aspects of our day-to-day p y y exchanges g are becoming mechanised mechanised or digitised, our focus shifts to the

32 | THE ACTUARY | APRIL 2018

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At the back Soft skills

true relational, qualitative aspects of our experiences. It is in those areas where our true needs manifest and where people, companies, and brands distinguish themselves.

In a digital future, success depends on attentiveness to the ‘quanta’ of social interconnectedness. Acting with deliberate attention to the emotional, neurological, cultural and strategic dimensions of social fabric is the true source-code of competitive advantage.

3 There is a better and healthier way to get what you need. We have worked with many negotiators who have profoundly shifted their experience and improved outcomes for themselves and their stakeholders. They have learned to tune in to the quantum of social connection in their negotiations. They have experienced firsthand that when we shift our understanding of negotiation and master the small but powerful forces of human sociality and connectedness, we not only lose fear but also tend to our emotional, social, physical and spiritual needs.

How can quantum negotiation help us?

Threatened by massive and profound structural transformation, professionals want to keep their job prospects open and to be ready for a change at any time.

That means that many of us are searching for new job opportunities to become more secure – organisationally and financially. Whether you are looking for the first time after certification, pursuing a new opportunity or a promotion or raise, you will need to negotiate your salary, which adds stress, because salaries are about more than money. We are negotiating our value and status in an organisational and a wider social context. How we experience and approach this reveals a host of assumptions, beliefs, and powerful emotions that are connected to our subjective sense of identity and worth.

As a result, we are likely to go into full ggear researchingg salaryy benchmarks or the compensation methodology in the

actuarial industry or geographic area concerned.

Preparing for a salary negotiation quickly extends beyond ‘what’ you want in a negotiation, and into ‘why’.

In addition, when you don’t have time to establish a good first impression in a face-to-face meeting, your preparation needs to be even more precise about ‘how’ you behave as a negotiator. Your ability to understand the wider context, needs and interests of your new employer will be key. But, your stress levels are likely to constrict your vision rather than widen it.

Recruiters share with us their dismay at jobseekers – even experienced ones – who negotiate with little attention or clarity about themselves or their interviewer and the wider context. Our own research validates that jobseekers often focus too narrowly on the tangible pay structure and forget about the most sought-after intangible resources recruiters are looking for.

Slowing down your nervous system, anchoring yourself in not only ‘what’ you want, but also ‘why’ you want it, and ‘how’ you are going to behave (strategy and tactics) as you get what you need will yield quantum results. You can deepen your preparation by thinking about ‘who’ you are and how you are feeling about the position and what purpose you can achieve in that position.

In addition, you can explore the possibility that you may not get an agreement; ‘what if’ you don’t achieve what you want in the negotiation, what other options will you have?

For example, will you keep the same job, look for other roles, or perhaps look into further education?

From a quantum negotiation perspective, understanding your negotiation as a relationship of interdependent needs is key. Take time to step back from the independent or individualistic way of thinking about your negotiation as a win or a loss. Expand your perspective to see that the new relationship provides you with opportunity to create the best outcome for all parties involved, and sometimes the best outcome is determining that an opportunity is not right.

With a ‘shared interest’ mindset, you will then behave as if your self-interest and that of your interviewer are mutual. This intention to partner will ground you, enable you to connect better and project respect and confidence effortlessly. Employers appreciate self-direction, strengths, and clarity in goals and commitments and also the quality of your social interaction skills. If you think that the potential employer has power over you and you need to protect and defend yourself, chances are that it will be harder to meet your own intangible needs to be connected as an appreciated, validated and valued partner.

KAREN WALCH is a partner of Clair-Buoyant Leadership, LLC and Emeritus faculty member at Thunderbird School of Global Management

.

STEPHAN MARDYKS is founder of Wisdom Destinations, co-CEO of SMCOV, and a managing partner at ThomasLeland

JOERG SCHMITZ is managing partner at ThomasLeland

To learn more, go to: www.quantumnegotiation.com APRIL 2018 | THE ACTUARY | 33

32-33 feature__The Actuary 33

03/04/2018 09:36

Is your risk analysis risky, time-consuming and expensive?

Answers 711:17 of each of 1p, 2p, 20p and ÂŁ1. 712:North. A sequence of arrows pointing north, east, south, north, west and south, runs along the top row and returns along the second row and so on.

At the back Puzzles

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How many of each type of coin is there and what are their values?

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34 PUZZLES__The Actuary 34

03/04/2018 09:37

At the back School of thought

Student Pioneers of the world Jason Whalley looks at successful leaders and their styles of management

ILLUSTRATION: SIMON SCARSBROOK

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ou can pay a soldier to hold a gun. To follow you. To fight for you.

But you cannot pay them to believe.

So what does it take to be a true leader? What qualities must one possess in order to rise to the top?

Is it the self-assuredness in answering to nobody and nothing except their own clear, contextualised vision? Having the charisma to magnetise companions to their cause perhaps?

Or the intelligence to propel humankind upward to new heights? Or simply ambition alone, to guide them through the darkness of self-doubt?

The history of mankind boasts a variety of heroes and villains; winners and losers.

These men and women were capable of challenging the status quo; even if that meant being burnt in the process.

Modern-day leaders are frequently judged by the universal metric of success – money. As such, leaders in business often capture the headlines – especially when making waves.

Elon Musk, for example, the recordbreaking innovator, founder and chief executive of SpaceX, has thrown fuel onto the fire to reignite the space race. The entrepreneur has legions of highly skilled individuals falling over themselves to work for him as well as the backing of an army of investors, and with it he has forced SpaceX and Tesla to be taken seriously.

Musk has demonstrated an unwavering dedication to advancing humankind and www.theactuary.com

35 STUDENT•CT__The Actuary 35

“Some of history’s most renowned leaders were dependent on followers with a flair for organisation” shows no hint of slowing down. Where investors have been unconvinced of similar endeavours, he has a proven track record of success, accompanied by a burning fire to inspire others to follow him in such projects.

Bill Gates and the enigmatic late Steve Jobs were the driving force behind revolutions to the technology industry over many years – and now, joined by Larry Page and Sergey Brin of Google,

their product lines are used every day all over the globe.

Though their leadership and management styles and recipes for success may differ, all went from strength to strength, evolving and allowing their brand to prosper.

However, it’s important to note the difference between leadership and management. Some of history’s most renowned leaders were dependent on followers with a flair for organisation. Even institutions devoid of innovation are able to thrive by maximising efficiency. Success is not contingent on creating something new.

Successful leaders are able to convince hordes of supporters to follow their vision.

Politicians undertake a trial by fire to reach the top – public judgement – although, ultimately, they are rarely popular.

Angela Merkel, boasting an impressive service record, has been a force in European politics for quite some time. The German politician has an unusual educational background relative to her peers; a doctorate in quantum chemistry, which – coupled with her calm demeanour – only serves to draw people to her point of view as a source for knowledge.

The chancellor of Germany continues to stand firm in the face of adversity amid tensions surrounding the European Union – an accord of which she is frequently and widely designated as the de facto leader. She has a furious storm to continue battling, owing to the present political climate, but so far there is no evidence to suggest that she would shy away from the challenge.

Modern-day leaders – of various scales – across the globe use different styles of leadership to best progress their ideas.

And what can we learn from these leaders? Plenty. But developing an approach that best suits you seems like the most appropriate place to begin.

JASON WHALLEY is joint student editor APRIL 2018 | THE ACTUARY | 35

03/04/2018 09:41

At the back Society news H E R I O T- WAT T

THE WORSHIPFUL COMPANY OF ACTUARIES

Europe’s first Centre of Actuarial Excellence

The actuaries’ walk 23 June 2018

In an historic move, the Society of Actuaries, the professional body for actuaries in the US and the largest organisation of its kind, has named Heriot-Watt as Europe’s first Centre of Actuarial Excellence.

The society selected Heriot-Watt following a rigorous evaluation of its mathematical and computer sciences (MACS) actuarial programmes, staff, students, contribution to actuarial scholarship and research, and the achievements of graduates.

The award positions Heriot-Watt at the leading edge of actuarial science in universities and will further enhance its appeal to students and researchers from across the world.

Head of MACS Professor Beatrice Pelloni said: “I am delighted that the international excellence of staff and students in the department of actuarial mathematics and statistics has been so prominently recognised by the denomination as the only Centre of Actuarial Excellence in Europe.

“This award recognises years of excellence in teaching and research, starting back in 1972, when Heriot-Watt instituted one of the first UK degree programmes in actuarial mathematics and statistics. I am extremely proud of the staff and students in the school and of their hard-earned and fully deserved international reputation.”

All the university’s actuarial programmes are also fully accredited by the IFoA.

SIAS

Pool tournament

BY THOMAS LEIGH-ELDREDGE

In January, members of the Staple Inn Actuarial Society played fiercely to be victorious in the 2018 SIAS pool tournament. Eighteen teams of two, with their cues at the ready, played from the initial rounds through to the final set of matches where Eddy Martin and Paul Murphy were victorious and took home the crown (for a third year running).

Teams also entered their creative team names, with the prize going to Patrick Cullen and Sam Fletcher for their team name ‘Balls Out!’.

The society’s future events include the infamous SIAS pub quiz, the annual SIAS boat party and the annual dinner.

36 | THE ACTUARY | APRIL 2018

36-37 PEOPLE NEW__The Actuary 36

Save the date

In a departure from tradition, the Master and Master Elect will be holding a joint fund-raising event in the form of a film-inspired sponsored walk around the City of London and environs on Saturday 23 June, starting at 10.30am. To encourage both old and young to take part, there will be a choice of routes, one extending to 11 miles and a less strenuous alternative of around half that distance.

Whichever route you choose, you will start and end at Staple Inn and, guided by a specially commissioned map (or app), have cinematic points of interest highlighted along the way, together with a few questions to test your film-going knowledge. The map will also show suitable places where you can refuel (bottled water will be provided but you are free to make your own lunch arrangements). The walk, for which you will be given a T-shirt, promises to be great fun, and its main aim is to raise money for the Company of Actuaries Charitable Trust as well as three national charities: Crisis (helping homeless people), the RAF100 Appeal and the Brain Tumour Charity.

The walk will be open to all actuaries as well as families, friends and colleagues.

If you would like to take part then please download and return an application form (bit.ly/2pHmNni). Walkers can participate in teams of up to six people, or individually; only one application form per team is required. There is a small entry fee (£15 for individuals and the first member of a team; £10 for each additional team member). Entrants will be sent instructions on setting up a Virgin Money Giving page, linked to the Charitable Trust bank account.

We look forward to seeing you on what we hope will be a sunny summer’s day. This is the company’s main fundraising event, covering our two years as Master and Master Elect. You can support us by sponsoring via: uk.virginmoneygiving.com/The2Nicks For details, email alan.smith@firstactuarial.co.uk or keithbarton.work@ btinternet.com SAAX EVENT

Investing wisely

BY RICHARD COHEN

On 7 February, the Southern African Actuarial ConneXion group, SAAX, held an investment-focused evening at Orbis’s office in Marylebone. The spirited discussion helped fend off the cold outside as we were bitterly reminded winter was still in full swing in London. We were joined by Bradley Shearer, executive director of Protagion, and Ben Preston, equity analyst at Orbis Investments, who leads the global sector investment team. Shearer, both an actuary and a chartered financial analyst, spoke about the concepts of searching for value and rewarding success, using analogies to explore the concept of ‘intrinsic value’ when selecting stocks.

Preston walked us through using different ratios to review when making a decision between different investments. He also gave his view on Tesla vs Honda as an investment decision.

To find out more, contact SAAX at contact@saaxgroup.org

Call for your news…

We would be delighted to hear from you if you have any newsworthy items for these pages.

Please contact Yvonne Wan at: social@theactuary.com www.theactuary.com

03/04/2018 09:41

At the back Society Student news ACTUARIAL SOCIETY OF ZIMBABWE

Progress in Zimbabwe

BY TAWANDA CHITUKU

Zimbabwe is a landlocked country in Southern Africa known for its dramatic landscape and diverse wildlife. The financial services industry is quite well developed, with several financial intermediaries providing services albeit to a relatively small financial base.

Significant developments have been recorded in the profession over the past four years. The principal driver of change has been the increasing prominence of the Actuarial Society of Zimbabwe “ASZ” (which now has 10 resident actuaries, up from five in 2014, nine associates and more than 350 students). The strategy of the ASZ has been simple but effective: (i) Host an annual actuarial convention (ii) Complement the convention with sessional meetings and social events (iii) Engage key stakeholders regularly (iv) Promote the qualification of actuaries.

A focused pursuit of the above strategy has led to several initiatives, including the development of a draft Actuaries’ Bill, which will see the profession being formalised by an act of parliament. A fresh proposal for the introduction of a local general practice module is being actively considered.

We have made a submission to the IAA expressing our interest in becoming a full member. These initiatives should help achieve an organised actuarial profession within a few years.

The major highlight will be a two-day actuarial convention that will be held at the Meikles Hotel in Harare from 14-15 June. It brings together a wide cross-section of stakeholders for a vibrant knowledge-sharing platform.

This year we are delighted to have the IFoA officially taking part in our convention alongside the Actuarial Society of South Africa, which has been our main ally.

WORSHIPFUL COMPANY OF ACTUARIES

The Lord Mayor’s Show

BY FIONA MORRISON

The weather forecast boded ill. The top of the Cheesegrater was in mist.

Great excitement as we donned our gowns, poppies and hats. So we were like Hogwarts’ witches and wizards, dressed for Remembrance Day with floppy (not pointed) hats to protect us from the light rain. Master Dumbreck, in scarlet and fur, was like a beacon.

For the longest “unrehearsed” parade in the world (source: BBC), it is run with military precision. There are different muster points for each ‘type’ of float – but they all merge into the correct order (up to #144) at the appropriate points.

At 11am there was a two-minute silence. Once we started moving again we completed the journey to HMQ Wellington in under an hour. Apparently this break-neck pace was due to ‘our’ band of tall, fit, Dutch women and men. What surprised me most were the crowds – the whole route was lined and everyone was smiling and cheering. We experimented with different forms of waving.

After our lunch on the Quarter Deck of HMQ Wellington, we reassembled. This was an opportunity to see many of the other floats – the Grocers’ four camels were a highlight for me. Amazingly, deep crowds lined the return leg. Junior Warden Morrison exhibited an extrovert side ‘high-fiving’ many along the route. And contrary to the forecast, the float didn’t actually float away (this year, anyway). www.theactuary.com

36-37 PEOPLE NEW__The Actuary 37

OBITUARY Keith Whitehead died on 5 December 2017, aged 78.

Keith qualified as an actuary in 1969. He began his actuarial career at Duncan C Fraser in Liverpool, where he was mentored by Geoffrey Heywood and Max Lander. In 1967, Keith joined Clay and Partners in London, where he became the senior partner from 1975 until his retirement. During this time, he oversaw the introduction of a computer into the practice. It was the size of a large upright freezer and had its own air-conditioned room.

In retirement, Keith played tennis to a high standard and enjoyed listening to music, especially Wagnerian opera, jazz and Gilbert and Sullivan operettas. Sadly he suffered from frontotemporal dementia for the past 10 years, which rendered him unable to continue with his other hobbies (hillwalking in the UK and Europe and visiting faraway places including Antarctica). Although unable to communicate for many years, he continued to live at home until his last two weeks.

Keith will be missed by his wife of 52 years, Barbara, their son John and daughter Claire, and four grandchildren.

D E AT H S In the last issue of the magazine we announced the deaths of the following members. Unfortunately, due to a processing error, the dates of Fellowship achievement were published incorrectly.

We would like to apologise for any distress caused. We offer our condolences to their families and colleagues.

Miss Man Chung Li Based in Australia who gained Fellowship in 1991. Died aged 52.

Mr Edward Michael Belmont Based in the UK who gained Fellowship in 1976. Died aged 67.

Mr John Campbell Burns Based in Canada who gained Fellowship in 1947. Died aged 102.

Mr Berthold J Guttmann Based in the UK who gained Fellowship in 1961. Died aged 88.

Mr Peter Michael Madders Based in the UK who gained Fellowship in 1957. Died aged 89.

Mr Colin Alfred Ernest Mellis Based in Australia who gained Fellowship in 1972. Died aged 71.

Mr Keith Douglas McDonald Based in Australia who gained Fellowship in 1962. Died aged 94.

Mr Hugh Martin Stewart Based in the UK who gained Fellowship in 1959. Died aged 93.

AUTUMN APRIL 2017 2018 | THE ACTUARY | 37

03/04/2018 09:42

At the back Actuary of the future

On the record “Almost as trustworthy as my own mum.

A solid 7/10” – co-worker and ‘friend’.

“Spicy, not Vindaloo but maybe a medium Nando’s level” – housemate.

Alternative career choice?

A football commentator.

What’s your most ‘actuarial’ habit?

Being unable to answer the question: “What does an actuary actually do?”

What motivates you?

Favourite Excel function?

I guess the cringeworthy answer is the people I work with, my family and friends.

Index match.

What would be your personal motto?

Don’t let the muggles get you down.

Name five dream companions to be stuck with on a desert island Ross Noble Rachel Riley Matthew Grey Gubler Alan Rickman Nancy Cartwright.

PwC, reward & employment

What is the funniest thing that has happened to you recently?

Being rescued from the basement of my office by a member of the security team after getting lost trying to find the mail room.

How do you relax away from the office?

Playing sports/seeing friends.

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

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

Elizabeth I.

Phillip Schofield.

If there was a movie produced about your life, who would play you?

Greatest risk you’ve ever taken?

I’ve been told that I look like a cross between Louis Theroux and Colin Firth, so probably one of those.

Deciding to fill out this application!

What song best describes your work ethic?

Chris & Kem – Little Bit Leave It

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

Moves Michael Abramson has joined Hymans Robertson as a partner and risk transfer specialist.

He joins from Prudential, where he was director of wholesale transactions, and will be based in the London office.

Abramson has played a key role in some of the most prominent transactions in the risk transfer market. In his role at Prudential he had responsibility for its bulk 38 | THE ACTUARY | APRIL 2018

38 AOTF PEOPLE MOVES__The Actuary 38

annuity team and was involved in over £5bn of longevity hedging on its annuity back book.

Volante Global Limited has announced the appointment of Chris Drew as chief actuarial officer. He will be responsible for Volante’s actuarial, analytical and MI functions. Drew joins the Volante executive committee and has been appointed as a Volante

SPONSORED BY

global board director, subject to regulatory approval.

Barnett Waddingham has appointed Marcus Whitehead, partner at Barnett Waddingham for 15 years, as its first managing partner to lead an ongoing programme of growth and development across the whole business – covering consultancy across risk, pensions, investment and insurance.

Barnett Waddingham has also appointed Alex Pocock as its new head of investment. Pocock joined in 2004 and became a partner in 2012. He will be responsible for overseeing the progression of investment consulting within DC and DB. The firm has also re-appointed Catherine Love Soper to their Longevity Practice Area, focusing on international mortality.

She joins after a spell living

in the Gulf doing projects for Callund Consulting.

The IFoA is pleased to announce Sonal Shah has joined as education actuary for the general insurance practice area, taking over from Neil Hilary. Sonal is also the lead actuary for actuarial statistics and actuarial mathematics. Prior to joining the IFoA, she worked as a freelance documentation actuary.

ISTOCK/ALAMY

How would your best friend describe you?

MATT BROWN

www.theactuary.com

03/04/2018 09:42

At the back Appointments

Jobs

To advertise your vacancies in the magazine and online please contact: Shamil Bhoyroo +44 (0) 20 7880 6234 or shamil.bhoyroo@redactive.co.uk

Actuarial Vacancies HFGâ&#x20AC;&#x2122;s consultants specialise in matching you to the right role at the right Â&#x2026;Â&#x2018;Â?Â&#x2019;Â&#x192;Â?Â&#x203A;Ǥ Â&#x192;Â&#x17D;Â&#x17D; Â&#x2014;Â&#x2022; Â&#x2013;Â&#x2018;Â&#x2020;Â&#x192;Â&#x203A; Â&#x2013;Â&#x2018; Â&#x160;Â&#x192;Â&#x2DC;Â&#x2021; Â&#x192; Â&#x2026;Â&#x160;Â&#x192;Â&#x2013; Â&#x192;Â&#x201E;Â&#x2018;Â&#x2014;Â&#x2013; Â&#x203A;Â&#x2018;Â&#x2014;Â&#x201D; Â&#x201D;Â&#x2021;Â&#x201C;Â&#x2014;Â&#x2039;Â&#x201D;Â&#x2021;Â?Â&#x2021;Â?Â&#x2013;Â&#x2022; Â&#x192;Â?Â&#x2020; Â&#x2013;Â&#x2018; ƤÂ?Â&#x2020; Â&#x2018;Â&#x2014;Â&#x2013; what opportunities are available.

Please see a snapshot of our actuarial vacancies below. www.hfg.co.uk

hfginsurancerec

HFG Insurance Recruitment

Reserving Contractor

Capital Contractors

Leading Lloydâ&#x20AC;&#x2122;s syndicate is looking for an experienced Reserving Actuary to join their team for six months. Working Â&#x2026;Â&#x17D;Â&#x2018;Â&#x2022;Â&#x2021;Â&#x17D;Â&#x203A; Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160; Â&#x201E;Â&#x2018;Â&#x2013;Â&#x160; Â&#x2013;Â&#x160;Â&#x2021; ƤÂ?Â&#x192;Â?Â&#x2026;Â&#x2021; Â&#x2013;Â&#x2021;Â&#x192;Â? Â&#x192;Â?Â&#x2020; Â&#x2020;Â&#x2021;Â&#x2DC;Â&#x2021;Â&#x17D;Â&#x2018;Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2022;ÇĄ Â&#x2013;Â&#x160;Â&#x2039;Â&#x2022; Â&#x2122;Â&#x2039;Â&#x17D;Â&#x17D; require someone who enjoys working closely with non actuaries.

Please get in touch for further information.

A world leading insurer is looking for a Capital Actuary, ideally with IMAP experience. Working across validation, documentation and model build, there are a variety of Â&#x2018;Â&#x2019;Â&#x2019;Â&#x2018;Â&#x201D;Â&#x2013;Â&#x2014;Â?Â&#x2039;Â&#x2013;Â&#x2039;Â&#x2021;Â&#x2022; Â&#x2C6;Â&#x2018;Â&#x201D; Â&#x2026;Â&#x2018;Â?Â&#x2013;Â&#x201D;Â&#x192;Â&#x2026;Â&#x2013;Â&#x2018;Â&#x201D;Â&#x2022; Â&#x2013;Â&#x2018; Â?Â&#x192;Â?Â&#x2021; Â&#x192; Â&#x201D;Â&#x2021;Â&#x192;Â&#x17D; Â&#x2020;Â&#x2039;ĆĄÂ&#x2021;Â&#x201D;Â&#x2021;Â?Â&#x2026;Â&#x2021; Â&#x2013;Â&#x2018; Â&#x2013;Â&#x160;Â&#x2021; upcoming submission. For more information please get in touch.

ÂŁ800 - ÂŁ1000 per day, London

ÂŁ800 - ÂŁ1200 per day

William Gallimore

William Gallimore

(Non-Actuarial) Actuarial Consulting

Actuarial Analyst

This global insurance consulting business are looking for actuaries and actuarial students to help continue to develop the breadth of the advisory services. Their actuarial team have a well established client base and you will be working outside of Financial Services using risk management techniques to provide quantitative aspects to the broader strategy and advisory work.

Â?Â&#x2018;Â&#x2020;Â&#x2021;Â&#x201D;Â? Â&#x2039;Â?Â&#x2022;Â&#x2014;Â&#x201D;Â&#x2021;Â&#x201D; Â&#x192;Â&#x201D;Â&#x2021; Â&#x2022;Â&#x2021;Â&#x192;Â&#x201D;Â&#x2026;Â&#x160;Â&#x2039;Â?Â&#x2030; Â&#x2C6;Â&#x2018;Â&#x201D; Â&#x192; Â&#x201D;Â&#x2021;Â&#x2026;Â&#x2021;Â?Â&#x2013;Â&#x17D;Â&#x203A; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;ƤÂ&#x2021;Â&#x2020; Â&#x192;Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x203A; Â&#x2013;Â&#x2018; join their pricing team. They require an ambitious and motivated individual to support the Chief Pricing Actuary in the pricing of all protection products and with the implementation of regular re-prices. This is an excellent opportunity for an individual to work independently within a fast growing insurer.

ÂŁ50k - ÂŁ150k basic, London

ÂŁ40k - ÂŁ60k basic, London

Mark Dainty

Reinsurance Analytics Manager

Group Reserving Actuary - ÂŁ80k - ÂŁ100k / London

A leading Lloydâ&#x20AC;&#x2122;s syndicate seek a commercial minded analyst to work within their reinsurance team who help drive strategic underwriting and reinsurance purchasing decisions by producing detailed MI through catastrophe and capital modelling. Within this analytical role, you will develop and implement modelling tools and provide strategic oversight to senior management.

A leading property and casualty insurer, with a UK, London Â?Â&#x192;Â&#x201D;Â?Â&#x2021;Â&#x2013;ÇĄ Â&#x17D;Â&#x2018;Â&#x203A;Â&#x2020;ÇŻÂ&#x2022; Â&#x192;Â?Â&#x2020; Â&#x2030;Â&#x17D;Â&#x2018;Â&#x201E;Â&#x192;Â&#x17D; Â&#x2019;Â&#x201D;Â&#x2021;Â&#x2022;Â&#x2021;Â?Â&#x2026;Â&#x2021; Â&#x192;Â&#x201D;Â&#x2021; Â&#x17D;Â&#x2018;Â&#x2018;Â?Â&#x2039;Â?Â&#x2030; Â&#x2C6;Â&#x2018;Â&#x201D; Â&#x192; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;ƤÂ&#x2021;Â&#x2020; Reserving Actuary to join the team. You will get fantastic exposure to the senior stakeholders in the business including Â&#x2013;Â&#x160;Â&#x2021; Â&#x2019;Â&#x201D;Â&#x2039;Â&#x2026;Â&#x2039;Â?Â&#x2030; Â&#x2013;Â&#x2021;Â&#x192;Â?ÇĄ Â&#x2014;Â?Â&#x2020;Â&#x2021;Â&#x201D;Â&#x2122;Â&#x201D;Â&#x2039;Â&#x2013;Â&#x2021;Â&#x201D;Â&#x2022;ÇĄ Â&#x2026;Â&#x17D;Â&#x192;Â&#x2039;Â?Â&#x2022; Â&#x192;Â?Â&#x2020; ƤÂ?Â&#x192;Â?Â&#x2026;Â&#x2021;Ǥ

ÂŁ70k - ÂŁ90k basic, London

You will look at a diverse book of business including Political Risk, Accident and Health and Trade Credit. The role would suit an experienced Reserving Actuary looking to get a more business focussed role with commercial impact. This is not your usual vanilla reserving role and requires someone willing to add value to the process, challenge the norm and build and maintain strong internal relationships.

Data Scientist - London Market Insurance A global specialty insurer is seeking to add quality resource to their existing data science team. To be considered, you will need an advanced degree in maths, engineering, computer science or physics, with programming experience in R or Python. You will also need to have a good understanding of the insurance industry with an ability to work with unstructured data-sets.

ÂŁ40k - ÂŁ60k, London

+44 (0) 207 337 8800

Ahad Shadab

Mark Dainty Head of Actuarial +44 (0) 207 337 8816 mark@hfg.co.uk

Mark Dainty

Featured Vacancy

Antony Williams

William Gallimore UK Managing Director +44 (0) 207 337 8826 william@hfg.co.uk

You will need to work with independence and have the gravitas to push forward your ideas. If you are looking to take your reserving career to the next step then please do get in touch.

paul.fox@hfg.co.uk

0207 220 1103

Paul Fox GI Perm +44 (0) 207 220 1103 paul.fox@hfg.co.uk

Antony Williams Risk +44 (0) 207 220 1106 antony.williams@hfg.co.uk

Ahad Shadab Data Analytics & technology +44 (0) 207 220 1103 ahad.shadab@hfg.co.uk

Making moves in insurance recruitment

APRIL 2018 | THE ACTUARY | 39

ACT recr Apr18.indd 39

29/03/2018 14:49

At the back Appointments

ST. ALBANS Looking for a new challenge, with variety and flexibility?

Want a better work-life balance?

A GROWING FIRM OF ACTUARIES AND EMPLOYEE BENEFIT CONSULTANTS is offering exciting and rewarding opportunities in a friendly, flexible and positive working environment to

ACTUARIES, ACTUARIAL TRAINEES AND TECHNICIANS AND INDIVIDUALS NO LONGER TAKING ACTUARIAL EXAMS Gemmells is a steadily expanding actuarial, investment, pensions and employee benefits business, with a strong focus on client needs, providing support and consultancy services to pension schemes and employers, as well as offering individual financial and investment management advice. We are now looking for the right people to join our growing team in St. Albans, Hertfordshire.

Working in a smaller team environment, these permanent roles are varied and will comprise all aspects of pensions and benefits work, with an initial focus on preparing and delivering actuarial and consulting advice for defined benefit pension schemes. There is, in addition, the opportunity to get involved in wider fields such as individual work, GPPP support, risk and investment work. These are roles that could suit someone looking for the opportunity to move beyond pure DB. Part-time and flexible working considered.

If you are interested in applying, please call Clair Gemmell, FFA on 07826 585656 to find out more about the great opportunities available or send your CV to recruitment@gemmells.co.uk £30k-£85k pa + BENEFITS

NO AGENCY APPLICATIONS

LDI PORTFOLIO CONSTRUCTION London £ Competitive + Bonus + Benefits A fantastic opportunity for a nearly qualified Actuary (or CFA) to work at a leading asset management firm, where you will be at the forefront of investment product innovation. In this role you will: • Support senior members of the team in the structuring and ongoing management of Derivative Overlay and LDI mandates. The mandates use a range of derivatives across asset classes (equity and rates) together with physical assets to meet clients’ strategic risk management needs.

• Work on a number of client mandates involving day-to-day monitoring and management of the funds, as well as constructing strategies incorporating client objectives and market opportunities.

• Further develop product offerings within LDI, and proactively seek to implement the required changes and processes.

Suitable candidates will have: • Previous experience in structuring/ managing derivative-based solutions, either in an asset manager, bank or specialised team within a consultancy.

• Knowledge of Equity derivatives including futures, TRS and options; interest rate and inflation derivatives including swaps, swaptions and bond futures; government bonds and repos.

• Familiarity with the LDI market and recent trends in risk management solutions for pension schemes.

• Familiarity with option pricing models.

• Basic knowledge of the framework for the trading of OTC and exchangetraded derivatives, including collateralisation and margining process, legal documentation and regulatory developments such as EMIR. • Strong analytical skills with a high level of attention to detail.

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

40 | THE ACTUARY | APRIL 2018

ACT recr Apr18.indd 40

29/03/2018 14:49

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

www.ipsgroup.co.uk

At the back Appointments

Actuarial WŽƌƞ ŽůŝŽ ŶĂůLJƐƚ hƉ ƚŽ άϱϱ͕ϬϬϬ ĂƐĞ ^ĂůĂƌLJ н ŽŶƵƐ

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hƉ ƚŽ άϱϬ͕ϬϬϬ ĂƐĞ ^ĂůĂƌLJ н ŽŶƵƐ Θ ^ƚƵĚLJ ^ƵƉƉŽƌƚ ʹ ŝƚLJ ŽĨ >ŽŶĚŽŶ

ůĞĂĚŝŶŐ D' ĂƌĞ ƐĞĂƌĐŚŝŶŐ ĨŽƌ ĂŶ ĞdžƉĞƌŝĞŶĐĞĚ ŶĂůLJƐƚ ǁŚŽ ŚĂƐ ŚĂĚ Ăƚ ůĞĂƐƚ ϭϴ ŵŽŶƚŚƐ ĞdžƉĞƌŝĞŶĐĞ ŽĨ ǁŽƌŬŝŶŐ ǁŝƚŚŝŶ ĂŶ ŶĂůLJƟ ĐĂů ƌŽůĞ Ăƚ Ă WĞƌƐŽŶĂů >ŝŶĞƐ /ŶƐƵƌĞƌ͘ dŚĞ ƌŽůĞ ǁŽƵůĚ ƐƵŝƚ ĂŶ ĐƚƵĂƌLJͬ WƌŝĐŝŶŐ ŶĂůLJƐƚ ǁŚŽ ŝƐ ůŽŽŬŝŶŐ ĨŽƌ Ă ŶŽŶͲƐƚĂŶĚĂƌĚ ĐƚƵĂƌŝĂů ƉŽƐŝƟ ŽŶ͘ zŽƵ ǁŝůů ŶĞĞĚ ĞdžͲ ƉĞƌŝĞŶĐĞ ŽĨ ƵƐŝŶŐ ĞŝƚŚĞƌ ^Y>͕ ^ ^͕ s ͕ ŵďůĞŵ Žƌ ZĂĚĂƌ͘

/ Ăŵ ĐƵƌƌĞŶƚůLJ ǁŽƌŬŝŶŐ ǁŝƚŚ Ă >ůŽLJĚ͛Ɛ ^LJŶĚŝĐĂƚĞ ǁŚŽ ĂƌĞ ůŽŽŬŝŶŐ ĨŽƌ Ă ƉĂƌƚ ƋƵĂůŝĮ ĞĚ ĐƚƵĂƌŝĂů ŶĂůLJƐƚ ƚŽ ũŽŝŶ ƚŚĞŝƌ ŚŝŐŚůLJ ĂŶĂůLJƟ ĐĂů ĂƉŝƚĂů ŵŽĚĞůůŝŶŐ ƚĞĂŵ͘ zŽƵ ǁŝůů ŶĞĞĚ ƚŽ ŚĂǀĞ Ăƚ ůĞĂƐƚ ϭϴ ŵŽŶƚŚƐ͛ ǁŽƌƚŚ ŽĨ '/ ĂƉŝƚĂů ŵŽĚĞůůŝŶŐ ĞdžƉĞƌŝĞŶĐĞ͘ dŚĞLJ ǁŽƵůĚ ůŝŬĞ LJŽƵ ƚŽ ŚĂǀĞ ĞdžƉĞƌŝĞŶĐĞ ŽĨ ĞŝƚŚĞƌ /ŐůŽŽ͕ ZĞŵĞƚƌŝĐĂ Žƌ dLJĐŚĞ͘

ŽŶƚĂĐƚ͗ 'ĂƌLJ͘ ŚĞƌŶΛŝƉƐŐƌŽƵƉ͘ĐŽ͘ƵŬ dĞů͗ нϰϰ ϮϬϳ ϰϴϭ ϴϭϭϭ

ŽŶƚĂĐƚ͗ 'ĂƌLJ͘ ŚĞƌŶΛŝƉƐŐƌŽƵƉ͘ĐŽ͘ƵŬ dĞů͗ нϰϰ ϮϬϳ ϰϴϭ ϴϭϭϭ

^ĞŶŝŽƌ WƌŝĐŝŶŐ ŶĂůLJƐƚ

ZĞƐĞƌǀŝŶŐ ŶĂůLJƐƚ

hƉ ƚŽ άϳϬ͕ϬϬϬ ĂƐĞ ^ĂůĂƌLJ н ŽŶƵƐ

ʹ ŝƚLJ ŽĨ >ŽŶĚŽŶ

hƉ ƚŽ άϱϬ͕ϬϬϬ ĂƐĞ ^ĂůĂƌLJ н ŽŶƵƐ Θ ^ƚƵĚLJ ^ƵƉƉŽƌƚ ʹ ŝƚLJ ŽĨ >ŽŶĚŽŶ

ZĞƚĂŝů /ŶƐƵƌĞƌ ĂƌĞ ĐƵƌƌĞŶƚůLJ ůŽŽŬŝŶŐ ĨŽƌ Ă ^ĞŶŝŽƌ WƌŝĐŝŶŐ ŶĂůLJƐƚ ƚŽ ũŽŝŶ ƚŚĞŝƌ WĞƌƐŽŶĂů >ŝŶĞƐ WƌŝĐŝŶŐ ƚĞĂŵ͘ zŽƵ ǁŝůů ŶĞĞĚ ƚŽ ďĞ ĂŶ ĞdžƉĞƌŝĞŶĐĞĚ WƌŝĐŝŶŐ ŶĂůLJƐƚ ǁŝƚŚ Ăƚ ůĞĂƐƚ ϯ LJĞĂƌƐ͛ ĞdžƉĞƌŝĞŶĐĞ ŽĨ WƌŝĐŝŶŐ ǁŝƚŚŝŶ ZĞƚĂŝů ĂŶĚ ĚŽ ŶŽƚ ŶĞĞĚ ƚŽ ďĞ ƚĂŬŝŶŐ LJŽƵƌ ĐƚƵĂƌŝĂů ĞdžĂŵƐ͘ ^ƚƌŽŶŐ ĐŽŵŵƵŶŝͲ ĐĂƟ ŽŶ ƐŬŝůůƐ ĂŶĚ ĞdžƉĞƌŝĞŶĐĞ ŽĨ ƵƐŝŶŐ ^ ^͕ ŵďůĞŵ ĂŶĚͬŽƌ ZĂĚĂƌ ŝƐ ǀŝƚĂů͘

DƵůƟ ͲEĂƟ ŽŶĂů /ŶƐƵƌĞƌ ĂƌĞ ůŽŽŬŝŶŐ ĨŽƌ ĂŶ ĐƚƵĂƌŝĂů ŶĂůLJƐƚ ƚŽ ũŽŝŶ ƚŚĞŝƌ >ŽŶĚŽŶ DĂƌŬĞƚ ZĞƐĞƌǀŝŶŐ ƚĞĂŵ ƚŽ ǁŽƌŬ ĂĐƌŽƐƐ ŵƵůƟ ƉůĞ ůŝŶĞƐ ŽĨ ďƵƐŝŶĞƐƐ͘ dŚŝƐ ƌŽůĞ ŝƐ ĞdžƚƌĞŵĞůLJ ĨƌŽŶƚ ĨĂĐŝŶŐ ĂŶĚ LJŽƵ ǁŝůů ďĞ ŝŶǀŽůǀĞĚ ŝŶ ƚŚĞ ĨƵůů ƌĞƐĞƌǀŝŶŐ ƉƌŽĐĞƐƐ͘ zŽƵ ǁŝůů ŶĞĞĚ ƚŽ ŚĂǀĞ ĞdžƉĞƌŝĞŶĐĞ ŽĨ ƵƐŝŶŐ džĐĞů Žƌ ZĞƐY ĂŶĚ ŚĂǀĞ ĐŽŵƉůĞƚĞĚ Ăƚ ůĞĂƐƚ ŚĂůĨ LJŽƵƌƐ d͛Ɛ͘

ŽŶƚĂĐƚ͗ 'ĂƌLJ͘ ŚĞƌŶΛŝƉƐŐƌŽƵƉ͘ĐŽ͘ƵŬ dĞů͗ нϰϰ ϮϬϳ ϰϴϭ ϴϭϭϭ

ŽŶƚĂĐƚ͗ 'ĂƌLJ͘ ŚĞƌŶΛŝƉƐŐƌŽƵƉ͘ĐŽ͘ƵŬ dĞů͗ нϰϰ ϮϬϳ ϰϴϭ ϴϭϭϭ

EͬE ^LJŶĚŝĐĂƚĞ WƌŝĐŝŶŐ ĐƚƵĂƌLJ

/>^ KƉƉŽƌƚƵŶŝƟ ĞƐ

hƉ ƚŽ άϴϱŬ ďĂƐĞ н ŽŶƵƐ Θ ĞŶĞĮ ƚƐ

ʹ ŝƚLJ ŽĨ >ŽŶĚŽŶ

>ŽŶĚŽŶ͕ ĞƌŵƵĚĂ ĂŶĚ ^ǁŝƚnjĞƌůĂŶĚ

ƐƚĂďůŝƐŚĞĚ >ůŽLJĚ͛Ɛ ƐLJŶĚŝĐĂƚĞ ŝƐ ůŽŽŬŝŶŐ ĨŽƌ Ă ŶĞĂƌůLJ ͬ ŶĞǁůLJ ƋƵĂůŝĮ ĞĚ ĂĐƚƵĂƌLJ ƚŽ ũŽŝŶ ƚŚĞŝƌ ƉƌŝĐŝŶŐ ĚŝǀŝƐŝŽŶ͘ dŚĞ ƌŽůĞ ǁŝůů ƌĞƉŽƌƚ ŝŶƚŽ ƚŚĞ ĐŚŝĞĨ ƉƌŝĐŝŶŐ ĂĐƚƵĂƌLJ͕ ǁŝƚŚ ƌĞƐƉŽŶƐŝďŝůŝƚLJ ĨŽƌ Ă ĨĞǁ ĐůĂƐƐĞƐ ŽĨ ďƵƐŝŶĞƐƐ ĂŶĚ ŽŶĞ ĂŶĂůLJƐƚ ƚŚĂƚ ǁŝůů ƐƵƉƉŽƌƚ LJŽƵ͘ KƉĞŶ ƚŽ >ůŽLJĚ͛Ɛ Žƌ ĐŽŵŵĞƌĐŝĂů ůŝŶĞƐ ƉƌŝĐŝŶŐ ĞdžƉĞƌŝĞŶĐĞ͘

DLJ ĐŽůůĞĂŐƵĞ ĂŶĚ / ǁŝůů ďĞ ĂƩ ĞŶĚŝŶŐ ŽŶĞ ŽĨ ƚŚĞ Į ƌƐƚ />^ ŽŶĨĞƌĞŶĐĞƐ ƚŽ ďĞ ŚĞůĚ ŝŶ >ŽŶĚŽŶ ŝŶ Ɖƌŝů͘ tĞ ĂƌĞ ĞdžƉĞĐƟ ŶŐ ƐĞǀĞƌĂů ƐĞŶŝŽƌ ǀĂĐĂŶĐŝĞƐ ŝŶ ƚŚĞ ƵƉĐŽŵŝŶŐ ǁĞĞŬƐ ŝŶ ƚŚŝƐ ƐƉĂĐĞ͕ ƐŽ ŝŶƚĞƌĞƐƚĞĚ ŝŶ ŝŶĚŝǀŝĚƵĂůƐ ĨƌŽŵ Ă ƉƌĞͲ ĚŽŵŝŶĂŶƚůLJ ƌĞŝŶƐƵƌĂŶĐĞ ĐƚƵĂƌŝĂů͕ dͬWƌŝĐŝŶŐ ĂŶĚ WŽƌƞ ŽůŝŽ DĂŶĂŐĞŵĞŶƚ ďĂĐŬŐƌŽƵŶĚ͘ ,ĂƉƉLJ ƚŽ ƐƉĞĂŬ Žƌ ŵĞĞƚ ŝŶĨŽƌŵĂůůLJ͘

ŽŶƚĂĐƚ͗ ĚĂŵ͘ ĞůůŝƐΛŝƉƐŐƌŽƵƉ͘ĐŽ͘ƵŬ dĞů͗ нϰϰ ϮϬϳ ϰϴϭ ϴϭϭϭ

ŽŶƚĂĐƚ͗ ĚĂŵ͘ ĞůůŝƐΛŝƉƐŐƌŽƵƉ͘ĐŽ͘ƵŬ dĞů͗ нϰϰ ϮϬϳ ϰϴϭ ϴϭϭϭ

džĐůƵƐŝǀĞ ƚŽ /W^ 'ƌŽƵƉͲ ^ĞŶŝŽƌ >ůŽLJĚ͛Ɛ ĂƉŝƚĂů ŶĂůLJƐƚ hƉ ƚŽ άϴϬ͕ ϬϬϬ ĂƐĞн ŽŶƵƐ͕ ĞŶĞĮ ƚƐ Θ ^ƚƵĚLJ ^ƵƉƉŽƌƚ

ʹ ŝƚLJ ŽĨ >ŽŶĚŽŶ

ƵƌƌĞŶƚůLJ ǁŽƌŬŝŶŐ ǁŝƚŚ Ă ŚŝŐŚůLJ ƌĞŐĂƌĚĞĚ >ůŽLJĚ͛Ɛ ƐLJŶĚŝĐĂƚĞ ǁŚŽ ĂƌĞ ůŽŽŬŝŶŐ ƚŽ ŚŝƌĞ Ă ĐĂƉŝƚĂů ĂŶĂůLJƐƚͬƐĞŶŝŽƌ ĐĂƉŝƚĂů ĂŶĂůLJƐƚ ƚŽ ǁŽƌŬ ǁŝƚŚŝŶ ƚŚĞŝƌ ĂƉŝƚĂů DŽĚĞůůŝŶŐ ƚĞĂŵ͘ dŚŝƐ ƉŽƐŝƟ ŽŶ ǁŝůů ďĞ ƐƵƉƉŽƌƟ ŶŐ ƚŚĞ ƐĞŶŝŽƌ ĐĂƉŝƚĂů ĂĐƚƵĂƌLJ ĂŶĚ ƌĞƉŽƌƟ ŶŐ ĚŝƌĞĐƚůLJ ƚŽ ƚŚĞ ŚŝĞĨ ĐƚƵĂƌLJ͘ dŚĞ ƉŽƐŝƟ ŽŶ ǁŝůů ŝŶǀŽůǀĞ Ăůů ĐŽŵƉŽŶĞŶƚƐ ŽĨ ĐĂƉŝƚĂů ĂŶĚ ǁŝůů ƐƵŝƚ Ă ĐĂƉŝƚĂů ĂĐƚƵĂƌLJ ǁŚŽ ůŝŬĞƐ ƚŽ ͞ŐĞƚ ƚŚĞŝƌ ŚĂŶĚƐ ĚŝƌƚLJ͟ ĂŶĚ ǁŽƌŬŝŶŐ ŝŶ Ă ƚĞĐŚŶŝĐĂůͬĂŶĂůLJƟ ĐĂů ƚĞĂŵ ĂŶĚ ĂŶ ĞŶǀŝƌŽŶͲ ŵĞŶƚ ƚŚĂƚ ǁŝůů ĂůůŽǁ LJŽƵ ƚŽ ƚĂŬĞ ŽŶ ŵƵůƟ ƉůĞ ƌĞƐƉŽŶƐŝďŝůŝƟ ĞƐ͘ dŚĞ ŝĚĞĂů ĐĂŶĚŝĚĂƚĞ ǁŝůů ŚĂǀĞ ďĞƚǁĞĞŶ ϮͲϱ LJĞĂƌƐ ŽĨ ĞdžƉĞƌŝĞŶĐĞ ĂŶĚ ŝĚĞĂůůLJ ĨƌŽŵ Ă >ůŽLJĚ͛Ɛͬ >ŽŶĚŽŶ DĂƌŬĞƚ ĂƉŝƚĂů DŽĚĞůůŝŶŐ ďĂĐŬŐƌŽƵŶĚ ĂŶĚ ďĞ ĨĂŵŝůŝĂƌ ĂŶĚ ƉƌŽĮ ĐŝĞŶƚ ŝŶ ŝŐůŽŽ͕ ƌĞŵĞƚƌŝĐĂ Žƌ dLJĐŚĞ͘

ŽŶƚĂĐƚ͗ ĚĂŵ͘ ĞůůŝƐΛŝƉƐŐƌŽƵƉ͘ĐŽ͘ƵŬ dĞů͗ нϰϰ ϮϬϳ ϰϴϭ ϴϭϭϭ

Email: actuarial@ipsgroup.co.uk IW^ 'ƌŽƵƉ͕ ĞǀŝƐ DĂƌŬƐ ,ŽƵƐĞ͕ Ϯϰ ĞǀŝƐ DĂƌŬƐ͕ >ŽŶĚŽŶ ϯ ϳ: tĞďƐŝƚĞ͗ ŚƩ Ɖ͗ͬ​ͬǁǁǁ͘ŝƉƐŐƌŽƵƉ͘ĐŽ͘ƵŬ APRIL 2018 | THE ACTUARY | 41 Telephone: ϬϮϬ ϳϰϴϭ ϴϭϭϭ ŵĂŝů͗ ĞŶƋƵŝƌĞƐΛŝƉƐŐƌŽƵƉ͘ĐŽ͘ƵŬ tĞď͗ ǁǁǁ͘ŝƉƐŐƌŽƵƉ͘ĐŽ͘ƵŬ dǁŝƩ Ğƌ ͗ Λ/W^'ƌŽƵƉh< >ŝŶŬĞĚŝŶ͗ /W^ 'ƌŽƵƉ ACT recr Apr18.indd 41

29/03/2018 14:49

PENSIONS & INVESTMENTS NON-LIFE back LIFEAt &the HEALTH Appointments

NON-LIFE LIFE & HEALTH PENSIONS & INVESTMENTS

ACTUARIAL MANAGER, London, up to £100k + bonus + benefits

P/Q PRICING ACTUARY, London, up to £60k + bonus + benefits

A global consultancy is seeking to hire a qualified actuary to operate as a Manager for the business. This will be focused on a range of non-life projects and will also involve line management, client interaction and some aspects of business development. The ideal candidate will be qualified or making demonstrable progress through the actuarial exams. Reserving and/or Capital modelling experience is strongly preferred. Candidates with mixed experience are of serious interest but anyone who is particularly strong in one area is also strongly encouraged to apply.

A leading Lloyd’s syndicate is seeking to hire a part-qualified pricing actuary.

This is focused across multiple lines of business and report into the Head of Pricing. Duties will include model build, account pricing, portfolio management and heavy interaction with the Underwriters. The ideal candidate will be p/q or making demonstrable progress through the actuarial exams. Previous Pricing experience is essential with a preference towards London Market or Commercial lines of business. This role will involve extensive interaction with Underwriters and Senior Management.

Contact: curtis.browning@eamesconsulting.com | 0207 092 3242

Contact: curtis.browning@eamesconsulting.com | 0207 092 3242

CAPITAL ACTUARY- LONDON MARKET

P/Q ACTUARY - RESERVING & PRICING

London, up to £90k + bonus + benefits A leading Lloyd’s syndicate is seeking a qualified capital actuary to join their growing analytics function and report into the Chief Actuary. This will involve supporting their internal capital model with a range of duties including development, validation, parameterisation and regulatory reporting.

The ideal candidate will be qualified and have extensive capital modelling experience. This will preferably be with Igloo or Remetrica but candidates experienced with other packages are also encouraged to apply.

London, up to £50k + bonus + benefits A leading London Market insurer is seeking a part-qualified actuary to join their analytics function and focus on reserving and some pricing. This will involve working across multiple lines of business and report directly into the Chief Actuary. The ideal candidate will be part-qualified and be making demonstrable progress throughout the actuarial exams. Previous reserving experience is essential with a slight preference towards Commercial/Lloyd’s lines of business.

Contact: curtis.browning@eamesconsulting.com | 0207 092 3242

Contact: curtis.browning@eamesconsulting.com | 0207 092 3242

SENIOR PRODUCT DEVELOPMENT (UK LIFE PROTECTION)

IFRS17 ACTUARIAL SPECIALIST

London, £competitive + bonus + benefits A L&H insurance provider are seeking a Senior Product Development Expert.

Reporting to the Head Product Development, the roles' primary focus will be to develop life insurance products for the UK and other EU markets, including: leading the design & build of retail protection products, as well as coordinate, guide & manage cross functional teams spanning a wide range of disciplines to ensure the product delivery. Suitable candidates will have expert knowledge of UK protection products, as well as experience developing/launching life insurance propositions. Strong people & project management skills is essential.

Contact: joanne.gilbert@eamesconsulting.com | 0207 092 3244

Edinburgh, up to £85k + bonus + benefits A global Investment bank are seeking an experienced actuary for their IFRS17 implementation team. Key responsibilities will be to understand and interpret regulation, and to facilitate discussion with the various insurance entities within the group. Suitable candidates will be experienced life actuaries (FIA or equivalent) with a solid understanding of the current financial reporting environment and the challenges posed to it. Strong Excel skills are essential, ideally with knowledge of VBA. Ability to speak Spanish, French, Cantonese or Mandarin would be an advantage.

Contact: joanne.gilbert@eamesconsulting.com | 0207 092 3244

LONGEVITY ACTUARY

[EXCLUSIVE] ASSISTANT TECHNICAL MANAGER - LIFE

London, up to £82k + bonus + benefits A leading FS institution is seeking an experienced qualified life actuary with specialist experience in longevity risk for their London headquarters. Working as part of a dynamic team of experienced individuals you will be engaged with C-Suite individuals at a wide variety of life insurance firms where you will be responsible for: proportionate risk-based assessments and oversight (e.g. SII and Part VII transfers), research and specialist work in key risk areas, thematic projects and quantitative analysis on thematic data, as well as spearheading wider initiatives across the division. A solid understanding of key financial and life insurance risk areas for insurers, Solvency II, stochastic modelling and realistic balance sheets is essential.

Contact: joanne.gilbert@eamesconsulting.com | 0207 092 3244

Edinburgh, up to £55k + bonus + benefits We are working exclusively with an innovative tech business who are seeking a part-qualified life actuary to join the team Edinburgh. You will play a key role in the provision of technical actuarial input across change activity and strategic projects, bringing an innovative approach to problem solving across key client portfolios. Suitable candidates will be making good progress in the actuarial exams with solid knowledge of Life & Pensions products and experience working within the actuarial team of an insurer or consultancy.

Experience of system testing methodology and system controls, as well as experience working on actuarial change projects would be desirable.

SCHEME ACTUARY

ASSOCIATE ACTUARIAL CONSULTANT

Birmingham or London, c.£100k + benefits An award winning pensions consultancy are seeking a Scheme Actuary to join either their Birmingham or London office. As the Lead Actuarial Consultant you will be contributing to the efficient, high quality service to clients in the pensions space. The principal responsibilities include developing new business with new and existing clients, managing and training more junior employees and providing strategic input into the running of the firm. To be considered for this role you must be an FIA chart holder, hold a Scheme Actuary certificate and have experience of leading with advice to clients on the trustee and corporate side.

Hampshire, up to £50k + benefits A boutique consultancy is looking for an Associate Consultant to work on a variety of trustee and corporate clients for a range of scheme types and sizes.

In this role you will act as a mentor to more junior colleagues, reviewing actuarial valuations for funding purposes, solvency testing and buy-in analysis as well reviewing Actuarial factors, cash flows for use in asset-liability models, accounting figures and disclosures under FRS17 and IAS19. Suitable candidates should have a minimum of 3 years' experience in a pensions consultancy as well as have the confidence to liaise with other colleagues, partners and clients.

Contact: dylan.walters-bale@eamesconsulting.com | 0207 092 3227

Contact: dylan.walters-bale@eamesconsulting.com | 0207 092 3227

CORPORATE PENSIONS ACTUARY, Leeds, c.£70k + benefits

DC INVESTMENT CONSULTANT

Qualified Pensions Actuary needed to join a corporate pensions team in Leeds with a global consultancy organisation. The role holder will be advising clients on strategic corporate pensions issues including funding negotiations, benefit design, risk management projects, and pension accounting disclosures. The ideal candidate will be a fully qualified actuary with post-qualification experience and a track record of developing client relationships and securing new business within the market.

London, c.£70k + benefits A boutique consultancy is looking for a DC Investment Consultant to join their growing team. You will be playing a vital role in delivering investment advice to clients and directly reporting to the DC Investment Partner. Suitable candidate will likely be Qualified or making good progress in either FIA or CFA as well as have a minimum of 5 years' pension fund investment experience.

Contact: joanne.gilbert@eamesconsulting.com | 0207 092 3244

Contact: dylan.walters-bale@eamesconsulting.com | 0207 092 3227

Contact: dylan.walters-bale@eamesconsulting.com | 0207 092 3227

42 | THE ACTUARY | APRIL 2018

London | Zurich | Singapore | Hong ACT recr Apr18.indd 42

29/03/2018 14:49

At the back Appointments

[EXCLUSIVE] HEAD OF PRICING, London, £140k - £160k + bonus

A leading Lloyd’s syndicate is seeking a nearly qualified actuary to join their pricing team. This will focus on a range of pricing duties for casualty lines of business including building relationships with underwriters, developing pricing models and account pricing. The ideal candidate will be making demonstrable progress through the actuarial exams. Pricing experience is essential to the role with a preference towards London Market experience. This is an excellent platform for a part/nearly qualified actuary to join one of the best-renowned teams in the London Market and work on a vital book of business.

Eames are currently working exclusively with a growing Lloyd's managing agency who are currently seeking a qualified actuary to lead their pricing function. The role will report directly into the Chief Actuary and will support multiple syndicates covering all lines of business. You will also be responsible for managing a team of 5-7 qualified and student actuaries. Candidates will be fully qualified actuaries with a wealth of Lloyd's market pricing experience, ideally with exposure to broad range of business lines. You will need to have previous line management experience.

Contact: james.rydon@eamesconsulting.com | 0207 092 3239

Contact: james.rydon@eamesconsulting.com | 0207 092 3239

HEAD OF RESERVING, London, £competitive

SENIOR PRICING ACTUARY - GLOBAL BROKER

A leading global specialty insurer are currently seeking a qualified actuary to lead their reserving function. The role will report directly into the Chief Actuary and will be responsible for leading all reserving activities across the group including those related to IFRS17 and SII. Candidates will need to a wealth of Lloyd's/London market reserving experience, and be used to managing teams of qualified actuaries.

London, up to £150k + bonus + benefits A leading broker is seeking an actuary with extensive pricing experience. This will focus on both reinsurance and direct insurance pricing, leading presentations/tenders to clients and working closely with Senior Brokers. The ideal candidate will be qualified and an exceptional communicator. Pricing experience is essential to the role with a preference towards London Market and/or reinsurance LOB’s. This is an excellent platform for a Senior Pricing Actuary to join one of the best performing entities on the market.

Contact: james.rydon@eamesconsulting.com | 0207 092 3239

NON-LIFE

[EXCLUSIVE] PRICING ACTUARY, London, up to £80k + bonus

Contact: james.rydon@eamesconsulting.com | 0207 092 3239

SENIOR MANAGER - LIFE ACTUARIAL

CREDIT RISK ACTUARY

London, up to £100k + bonus + benefits A global FS business is seeking an experienced actuary with proven management capability to lead client engagement teams, promote business development opportunities, create & contribute to high quality thought leadership, as well as assist the development of new products and services.

Key areas you will cover include: IFRS 17, Pricing, M&A, Capital Planning & Management. The successful candidate is expected to have experience of working in an actuarial function of a life insurer at a senior level and be a qualified actuary. This role requires an individual with strong technical and communication skills (both written and oral), and proven project and people management capability.

Contact: joanne.gilbert@eamesconsulting.com | 0207 092 3244

London, up to £80k + bonus + benefits A UK leading FS institution is seeking an experienced qualified life actuary with specialist experience in credit risk for their London headquarters. Working as part of a dynamic team of experienced individuals you will be engaged with C-Suite individuals at a wide variety of life insurance firms where you will be responsible for: proportionate risk-based assessments and oversight (e.g. SII and Part VII transfers), research and specialist work in key risk areas, thematic projects and quantitative analysis on thematic data, as well as spearheading wider initiatives across the division. A solid understanding of key financial and life insurance risk areas for insurers, Solvency II, stochastic modelling and realistic balance sheets is essential.

Contact: joanne.gilbert@eamesconsulting.com | 0207 092 3244

SPECIALIST SENIOR ACTUARIAL ANALYST

PENSIONS MANAGER (DC), London, c.£70k + benefits + bonus

Edinburgh, up to £55k + benefits Seeking an actuarial analyst to boost technical capabilities in a specialist team of a client based in Edinburgh. You will be responsible for improving the efficiency of process-based work including actuarial calculations, funding updates, transfer values and accounting disclosures. You would be liaising with internal client teams, performing and checking data processing, calculations and reporting work for DB pension scheme clients. The ideal candidate will be making good progress in their actuarial exams, have excellent communication skills and be proactive in enhancing and refining process where necessary.

A global leading consultancy are looking for a Pensions Manager to join their DC consulting team in London. They are interested in individuals that have excellent consulting skills as well as a great commercial awareness and drive to succeed. In this role you will be taking a lead role in the provision of DC pensions advice to clients, undertaking provider research, leading client meetings and delivering advice where appropriate and responsible for drafting and reviewing reports. The ideal candidate will be working towards a pension qualification (PMI, ACII or G60) or come from an actuarial background.

London, up to £85k + bonus + benefits A boutique InsureTech consultancy are seeking a Director of Performance Analytics to lead/manage teams of various sizes. The role will involve developing BI through advanced analytic skills (i.e. statistical analysis, predictive analytics, data mining) to identify BD opportunity and enable clients to achieve real value/benefits. Suitable individuals will have strong communicative skills with proven capability of conducting/interpreting advanced quantitative/qualitative analysis, problem solving, and data manipulation within the insurance market. Contact: joanne.gilbert@eamesconsulting.com | 0207 092 3244

Contact: dylan.walters-bale@eamesconsulting.com | 0207 092 3227

Contact: dylan.walters-bale@eamesconsulting.com | 0207 092 3227

PENSIONS ACTUARIAL CONSULTANT, London, c£50k + benefits A global consultancy is seeking a part-qualified/nearly-qualified actuary to join their expanding pensions team. In this role you would be delivering professional pensions consulting advice on both the corporate and trustee issues. The projects that you would be working on consist of pensions strategy such as benefit change and scheme design, helping clients on the pensions aspect of M&A, de-risking projects such as buy-outs and buy-ins and liability management exercises. Ideal candidates would be making good progress in their actuarial exams with a minimum of 3 years’ experience in the pensions

CORPORATE PENSIONS ACTUARY - CONSULTANCY Bristol, c.£70k + benefits Qualified Pensions Actuary needed to join their a global consultancy in Bristol.

You will be advising clients on strategic corporate pensions issues inc. funding negotiations, benefit design, risk management projects, and pension accounting disclosures. The ideal candidate will be fully qualified with post-qual experience and a track record of developing client relationships and securing new business within the market.

PENSIONS & INVESTMENTS

DIRECTOR - INSURANCE ANALYTICS/DATA SCIENCE

LIFE & HEALTH

RATES STRUCTURER, London, up to £120k + bonus + benefits A leading global investment bank is seeking an experienced life actuary for a front line structuring position within their highly regarded FICC team. The role will involve working across a portfolio of Insurance & Pensions clients spanning the UK, Nordics and Southern Europe. They are seeking a quantitative individual from an insurance background with an excellent understanding of rates products/financial derivatives, and strong technical SII knowledge. You will have excellent communicative skills with a history of developing strong sales/client relationships. Additional European languages would be highly advantageous.

Contact: joanne.gilbert@eamesconsulting.com | 0207 092 3244

Contact: dylan.walters-bale@eamesconsulting.com | 0207 092 3227

industry. Contact: dylan.walters-bale@eamesconsulting.com | 0207 092 3227 If you are looking for your next career move or to discuss other opportunities, get in touch with us today for a confidential discussion.

Contact: actuarial@eamesconsulting.com | 0207 092 3200

APRIL 2018 | THE ACTUARY | 43

eamesconsulting.com ACT recr Apr18.indd 43

29/03/2018 14:49

INSURETECH, THE NEXT BIG THING?

At the back Appointments

Q A

HOW HAS INSURETECH AFFECTED THE GI MARKET? Insuretech is a broad term. It refers to the impact of technology on all aspects of the general insurance value chain. Examples include: Insurance apps that allow anyone to purchase insurance on-demand. Wearables such as fitbits that offer consumers lower health insurance premiums as an incentive to exercise more. Black boxes in cars.

Machine learning, which enhances an insurer’s ability to detect fraud and price insurance, Drones which transform the way that reinsurers respond to natural catastrophes, and even Blockchain, which promises to lower the costs of reinsurance transactions in a transformative way. Some of these technologies affect a company’s front-end operations, others affect the less visible back-end processing. Some technologies have incremental impacts, others have the potential to be so-called “game-changers”. Whatever the impact and no matter which part of the value chain is affected, when technology affects insurance, it counts as InsureTech.

However, when thinking about the effect on the GI market, it is worth bearing in mind that the GI market and insurance in general has always had high barriers to entry. This means that the larger, more powerful players in the market have greater market power, and hence collectively they have a greater say over the impact of any potential game-changing technology.

This naturally smoothes the impact of Insuretech, making it more gradual. In addition, large players in the market have in recent years been using consolidation as a way to grow, which has removed a key source of investment in Insuretech.

If consolidation stops being so attractive or if a disruptive Insuretech company emerges, I’d expect the amount of attention given to InsureTech to increase dramatically. For example, there have been rumours that Amazon will begin to sell warranty / product insurance. Similarly, Google has shown signs of being interested in health insurance. Were these ventures to take off, they would be game-changers.

Q A

Q A

Q A

WHAT IMPACT HAS IT HAD ON THE DAY- TO- DAY BUYER? It depends on the buyer. For retail consumers of motor insurance and home insurance, it is already having a large impact. Many consumers now purchase insurance through aggregators, which are themselves a product of technological advances in data aggregation. UK consumers have for many years enjoyed the benefit of a very competitive market in motor and home insurance, driven by advances in technologies for pricing and detecting fraud. For more specialist buyers such as commercial buyers, the impact has been less noticeable so far but this will change in the future.

One area of change is Cyber Risk: a new insurance product that more and more businesses are clamouring for. For reinsurance buyers too, the impact has been small so far.

IS THE TREND WITH TECHNOLOGY AND INSURANCE GOING TO BECOME MORE PROMINENT? Yes and no. Many market phenomena are tipping point ones.

The build up to the tipping point is slow and gradual, but once the tipping point is reached, the impact is big and happens quickly. I believe many technologies that are applied to the insurance value chain will behave similarly. If a disruptive Insuretech company emerges, the amount of attention given to Insuretech will increase further. On the other hand, some technologies are over-hyped, and these technologies which are prominent now may become less so in future. For example, Blockchain may have already passed its peak hype period and we should start to see some winners and losers emerge.

WHAT TRENDS DO YOU ANTICIPATE FROM A CONSULTANCY PERSPECTIVE? For consultancies, the trend will be to try to profit from this fast-growing area. I would expect teams to build expertise in particular areas and build a reputation in the market for those areas. Consultancies will also play an important role in helping the industry coalesce and form opinions about particular technologies.

Yuming Mei, Manager, Actuarial & Risk, Mazars

Samantha Yee

Samantha Chan

Manager Actuarial and Risk

Consultant Actuarial and Risk

020 7332 5881

020 7246 2641

Samantha.yee@lmarecruitment.com

Samantha.chan@lmarecruitment.com

www.lmarecruitment.com OFFICES IN LONDON AND SINGAPORE WITH A STRONG TEAM OF 65 PEOPLE

44 | THE ACTUARY | APRIL 2018

ACT recr Apr18.indd 44

29/03/2018 14:49

At the back Appointments

Head of Reserving

Senior Manager

Reporting Manager

Senior actuary reporting to the CEO required by a growing reinsurance entity. The quali¿ed actuary will strengthen the reserving processes and methodology and work with the external HOAF, with potential to bring the HOAF role back to the business. The role requires an experienced non-life actuary with excellent reserving and communication skills.

A quali¿ed non-life actuary is required for a manager level role. Individuals should have a combination of technical (reserving & risk) and project management skills. This opportunity would suit both an experienced manager or an individual ready to step up from a mentoring or team lead role.

Individuals should have strong communication skills.

Senior reporting actuaries required by several clients. Strong life reporting skills, team leadership or management with extensive Solvency II experience is required.

Opportunities exist for those who want to progress to HOAF roles in the future. With IFRS17 becoming the focus for many organisations, an ability to project manage is important here.

Pricing Actuaries/Manager

Pricing and Risk Analyst

Life Actuary

We have opportunities available for pricing actuaries with general insurance pricing experience.

Roles are available at trainee, actuary and manager level. These roles have excellent development opportunities. We also have Data Science vacancies within actuarial pricing for Data Scientist candidates.

Unique new opportunity for expanding reinsurance organisation in Dublin for a Risk and Pricing Analyst to join a growing team. This role has dual responsibility across both the risk and pricing team ready for 2021. This is a very interesting opportunity for an experienced part quali¿ed actuary with a non-life background.

Quali¿ed actuary required to join existing team of 7 actuaries in the supervision of regulated entities in Ireland. Individuals should have varied experience to include risk management and reporting or corporate governance. If you want to be at the forefront of industry changes then this is the role for you.

Life Reporting Actuary

Prophet & ALM Modelling Analyst

Reserving and Modelling Actuaries

Exciting opportunity for a part quali¿ed actuary to join a company with their actuarial hub in Ireland.

The Candidates must have at least 2-3 years’ experience and ideally previous programming or modelling experience. Fluency in a second European language is advantageous.

An international insurer based in Dublin has an exciting opportunity for a trainee actuary to join their team as a reserving and modelling analyst. This role will suit candidates from either a life or general insurance background.

French language skills are a big advantage for this role.

Reporting Actuary required to join a newly created team with a crossborder European life insurer. This role reports to the exec and is an excellent opportunity for those working towards future HOAF positions. Suitable for recently quali¿ed candidates with previous ¿nancial reporting and modelling experience.

For further information on these and other actuarial opportunities in Ireland please contact us at jobs@raretec.ie If you are a company looking for permanent or contract actuarial resources then call us on +35315311400 We look forward to hearing from you www.raretec.ie

APRIL 2018 | THE ACTUARY | 45

ACT recr Apr18.indd 45

29/03/2018 14:49

At the back Appointments

Abby Tempest Actuarial - Hong Kong EA Reg: R1546112 +852 3750 7627 abby@hfgasia.hk

Â&#x2018;Â?Â&#x2030; Â&#x2014; Life Actuarial & Risk EA Reg: R1764687 +65 6829 7166 tong@hfg.com.sg

Shuyu Lim GI Actuarial EA Reg: R1433780 +65 6829 7153 shuyu@hfg.com.sg

APAC Actuarial Assignments Pricing Actuary (multiple roles)

Commercial Lines Pricing Actuary

My clients are established and global GI direct insurers that are seeking strong pricing actuaries who would like to make the step-up to a more technical and managerial role. The incumbent should have at least four years of GI experience, possess solid pricing skillsets and be keen to expand their scope across more Â&#x17D;Â&#x2039;Â?Â&#x2021;Â&#x2022; Â&#x2018;Â&#x2C6; Â&#x201E;Â&#x2014;Â&#x2022;Â&#x2039;Â?Â&#x2021;Â&#x2022;Â&#x2022; Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160;Â&#x2039;Â? Â&#x2013;Â&#x160;Â&#x2021;

Â&#x2019;Â&#x2018;Â&#x201D;Â&#x2013;Â&#x2C6;Â&#x2018;Â&#x17D;Â&#x2039;Â&#x2018;Ǥ Â&#x201D;Â&#x2018;ƤÂ&#x2026;Â&#x2039;Â&#x2021;Â?Â&#x2026;Â&#x203A; Â&#x2039;Â? ÇĄ Â&#x192;Â?Â&#x2020; Â&#x192;Â&#x201D;Â&#x2021; advantageous.

Iâ&#x20AC;&#x2122;m currently working across a variety of roles in both the direct and reinsurance sectors. We are seeking experienced pricing actuaries with strong commercial lines exposure within the APAC region. This is a regional role that requires the incumbent to have technical understanding of the products and markets, as well strong business acumen when engaging with stakeholders. He/she should ideally Â&#x201E;Â&#x2021; Â?Â&#x2021;Â&#x192;Â&#x201D;Â&#x17D;Â&#x203A; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;ƤÂ&#x2021;Â&#x2020; Â&#x192;Â?Â&#x2020; Â&#x160;Â&#x192;Â&#x2DC;Â&#x2021; Â&#x192;Â&#x2013; Â&#x17D;Â&#x2021;Â&#x192;Â&#x2022;Â&#x2013; Í&#x17E; Â&#x203A;Â&#x2021;Â&#x192;Â&#x201D;Â&#x2022; Â&#x2018;Â&#x2C6; Â&#x201D;Â&#x2021;Â&#x17D;Â&#x2021;Â&#x2DC;Â&#x192;Â?Â&#x2013; Â&#x192;Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x2039;Â&#x192;Â&#x17D; Â&#x2021;Â&#x161;Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2039;Â&#x2021;Â?Â&#x2026;Â&#x2021;Ǥ $Competitive package, Singapore Shuyu Lim

$Competitive, Kuala Lumpur

Shuyu Lim

Head of Actuarial Reporting

Consulting Actuary - Senior Consultant / Manager

Want a change of life style by joining an established life Insurer in Thailand? Our client is seeking a Head of Actuarial Reporting to lead a well-structured team.

Candidates who have over 8 yearsâ&#x20AC;&#x2122; experience in the corporate actuarial sector with managerial experience are welcome to apply. Please get in touch for further information.

Â&#x2014;Â&#x201D; Â&#x2026;Â&#x17D;Â&#x2039;Â&#x2021;Â?Â&#x2013; Â&#x2039;Â&#x2022; Â&#x2022;Â&#x2021;Â&#x2021;Â?Â&#x2039;Â?Â&#x2030; Â&#x160;Â&#x2039;Â&#x2030;Â&#x160; Â&#x2026;Â&#x192;Â&#x17D;Â&#x2039;Â&#x201E;Â&#x201D;Â&#x2021; Â&#x17D;Â&#x2039;Â&#x2C6;Â&#x2021; Â&#x192;Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x2039;Â&#x2021;Â&#x2022; Č&#x2039;Â?Â&#x2021;Â&#x192;Â&#x201D;Â&#x17D;Â&#x203A;Č&#x20AC;Â?Â&#x2021;Â&#x2122;Â&#x17D;Â&#x203A;Č&#x20AC;Â&#x2019;Â&#x2018;Â&#x2022;Â&#x2013; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;ƤÂ&#x2021;Â&#x2020;Č&#x152; Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160; 3-12 yearsâ&#x20AC;&#x2122; experience with valuation/reporting/risk management/ALM/pricing/ strategy/modeling backgrounds. This is an excellent opportunity to develop your professional network and you will be working closely with business leaders on several consulting vacancies across the A-PAC region.

$Expat package, Bangkok

$Competitive package, Singapore / HK / Malaysia / China

Tong Yu

Tong Yu

Regional Corporate Actuary

Special Project Actuary

A leading reinsurer seek an experienced senior actuary, leader and rising star Â&#x2039;Â? Â&#x2013;Â&#x160;Â&#x2021; Â&#x2039;Â?Â&#x2020;Â&#x2014;Â&#x2022;Â&#x2013;Â&#x201D;Â&#x203A;Ǥ Â&#x160;Â&#x2021;Â&#x203A; Â&#x201D;Â&#x2021;Â&#x201C;Â&#x2014;Â&#x2039;Â&#x201D;Â&#x2021; Â&#x192; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;ƤÂ&#x2021;Â&#x2020; Â&#x192;Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x203A; Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160; Â&#x192; Â?Â&#x2039;Â?Â&#x2039;Â?Â&#x2014;Â? Â&#x2018;Â&#x2C6; Í&#x2122;Í&#x161; Â&#x203A;Â&#x2021;Â&#x192;Â&#x201D;Â&#x2022; Â&#x2021;Â&#x161;Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2039;Â&#x2021;Â?Â&#x2026;Â&#x2021; Â&#x192;Â?Â&#x2020; Â&#x192;Â? Â&#x2021;Â&#x161;Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2013; Â&#x2039;Â? ƤÂ?Â&#x192;Â?Â&#x2026;Â&#x2039;Â&#x192;Â&#x17D; Â&#x201D;Â&#x2021;Â&#x2019;Â&#x2018;Â&#x201D;Â&#x2013;Â&#x2039;Â?Â&#x2030; Â&#x192;Â?Â&#x2020; Â&#x2DC;Â&#x192;Â&#x17D;Â&#x2014;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Ǥ Â&#x2018;Â&#x2014; Â&#x2022;Â&#x160;Â&#x2018;Â&#x2014;Â&#x17D;Â&#x2020; Â&#x2019;Â&#x2018;Â&#x2022;Â&#x2022;Â&#x2021;Â&#x2022;Â&#x2022; Â&#x2021;ĆĄÂ&#x2021;Â&#x2026;Â&#x2013;Â&#x2039;Â&#x2DC;Â&#x2021; Â?Â&#x192;Â?Â&#x192;Â&#x2030;Â&#x2021;Â?Â&#x2021;Â?Â&#x2013; Â&#x192;Â?Â&#x2020; Â&#x17D;Â&#x2021;Â&#x192;Â&#x2020;Â&#x2021;Â&#x201D;Â&#x2022;Â&#x160;Â&#x2039;Â&#x2019; Â&#x2022;Â?Â&#x2039;Â&#x17D;Â&#x17D;Â&#x2022;ÇĄ Â&#x201E;Â&#x2021; Â&#x192;Â&#x2020;Â&#x192;Â&#x2019;Â&#x2013;Â&#x2039;Â&#x2DC;Â&#x2021; Â&#x192;Â?Â&#x2020; Â&#x201D;Â&#x2021;Â&#x2022;Â&#x2019;Â&#x2018;Â?Â&#x2022;Â&#x2039;Â&#x2DC;Â&#x2021; Â&#x2013;Â&#x2018; Â&#x2013;Â&#x160;Â&#x2021; fast pace Asian market and be an excellent communicator and team leader.

SGD $1.2m - $1.5m HKD, Hong Kong Abby Tempest

A leading life insurer are looking for a talented actuary to join their internal Â&#x2026;Â&#x2018;Â?Â&#x2022;Â&#x2014;Â&#x17D;Â&#x2013;Â&#x2039;Â?Â&#x2030; Â&#x2013;Â&#x2021;Â&#x192;Â?Ǥ Â&#x160;Â&#x2021;Â&#x203A; Â&#x192;Â&#x201D;Â&#x2021; Â&#x17D;Â&#x2018;Â&#x2018;Â?Â&#x2039;Â?Â&#x2030; Â&#x2C6;Â&#x2018;Â&#x201D; Â&#x2022;Â&#x2018;Â?Â&#x2021;Â&#x2018;Â?Â&#x2021; Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160; Â&#x2021;Â&#x161;Â&#x2013;Â&#x2021;Â?Â&#x2022;Â&#x2039;Â&#x2DC;Â&#x2021; ƤÂ?Â&#x192;Â?Â&#x2026;Â&#x2039;Â&#x192;Â&#x17D; Â&#x201D;Â&#x2021;Â&#x2019;Â&#x2018;Â&#x201D;Â&#x2013;Â&#x2039;Â?Â&#x2030; / capital experience who is interested in looking for a mixed role working on a variety of projects across the business. They require someone with a minimum Â&#x2018;Â&#x2C6; ƤÂ&#x2DC;Â&#x2021; Â&#x203A;Â&#x2021;Â&#x192;Â&#x201D;Â&#x2022; Â&#x2021;Â&#x161;Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2039;Â&#x2021;Â?Â&#x2026;Â&#x2021; Â&#x192;Â?Â&#x2020; Â&#x2039;Â&#x2020;Â&#x2021;Â&#x192;Â&#x17D;Â&#x17D;Â&#x203A; Â&#x192; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;ƤÂ&#x2021;Â&#x2020; Â&#x192;Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x203A;Ǥ Â&#x201D;Â&#x2021;Â&#x192;Â&#x2013; Â&#x201D;Â&#x2021;Â&#x17D;Â&#x2018;Â&#x2026;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â? Â&#x2019;Â&#x192;Â&#x2026;Â?Â&#x192;Â&#x2030;Â&#x2021;Ǥ

EA Licence Number: 14C7034

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

$600k - $850k, Hong Kong

Abby Tempest

As a professional, youâ&#x20AC;&#x2122;ll no doubt want to keep up with the latest industry developments, people and news?

Thatâ&#x20AC;&#x2122;s why The Actuaryâ&#x20AC;&#x2122;s weekly email alert brings you a handy round-up of only the most relevant news stories and comment, straight to your inbox every Thursday.

Register for weekly email newsletters at www.theactuary.com Browse www.theactuaryjobs.com and www.theactuaryjobsasia.com, the oďŹ&#x192;cial jobsites of the actuarial profession

46 | THE ACTUARY | APRIL 2018

ACT recr Apr18.indd 46

29/03/2018 14:49

At the back Appointments

I used to see figures.

Now I see patterns.

Actuarial and Risk Professionals We have regular openings for experienced, newly or nearly qualified actuaries and actuarial students to work with some of the UK’s strongest insurance brands like Churchill and Direct Line at DLG’s head office in Bromley. We’re looking for people who can find creative solutions to actuarial problems, drawing on strong mathematical skills, excellent data analysis and the ability to focus in and communicate on what really matters. Our team uses marketleading techniques to analyse huge data sets, spot patterns and solve incredibly complex challenges. We offer outstanding development opportunities to problem solvers working in reserving, pricing, capital modelling, reporting and risk management.

Always

If that’s got you thinking, learn more and apply at www.directlinegroupcareers.com

analysing

APRIL 2018 | THE ACTUARY | 47

ACT recr Apr18.indd 47

29/03/2018 14:50

At the back Appointments

LIFE REINSURANCE ANALYST

REINSURANCE ACTUARY Qualified / Part-Qualified

Major Global Insurance Group

STAR4668

LIFE LONDON

Fantastic opportunity for a part-qualified or qualified life actuary with commercial acumen and knowledge of the UK Protection market to develop and implement optimal reinsurance programmes.

In this exciting role in a fast-growing team, you will support the reinsurance relationship management process across the business (e.g. Product, Pricing, Underwriting and Claims).

You will provide reinsurance input into product development and assist Sales and Marketing in the shaping of product propositions, provide market intelligence to the business and support reinsurance treaty contract work.

The successful candidate will demonstrate advanced experience of cashflow modelling tools. You will also be organised with good attention to detail and will enjoy mentoring junior team members.

Please contact Jan Sparks (+44 7477 757 151, jan.sparks@staractuarial.com) to discuss this role.

Part-Qualified

Global Broker

LIFE LONDON

STAR4611

Develop your career in this cutting-edge role, working closely with team leadership to provide expert analysis and develop pricing, reinsurance and risk models.

INTELLECTUAL CAPITAL Qualified / CFA

Major Insurer

LIFE LONDON

STAR4536

Can you develop and deliver initiatives to improve the efficiency of our client’s capital usage? Do you have experience of cash flow modelling? Are you seeking a new challenge?

If so, call us.

SENIOR RISK MANAGER Major Insurer

Qualified / CFA

DIRECTOR - INSURANCE RISK

LIFE NON-LIFE RISK LONDON Qualified

Major Global Reinsurer

STAR4682

Major global reinsurer seeks a qualified actuary with strong communication skills, project management experience and excellent technical skills in all aspects of insurance risk.

Use your excellent understanding of insurance risk management processes and techniques to support the delivery of client engagements.

Strong team leadership and relationship skills will be essential.

In this fantastic role you will be responsible for ongoing reporting and development of economic capital, maintenance of the ERM framework and deep-dive actuarial review work.

REINSURANCE ANALYST - BULK ANNUITIES

STAR4717

LIFE LONDON

Part-Qualified

You will have a good understanding of the life industry, its products in key jurisdictions and insurance regulation including Solvency II. You will also have expertise in economic capital techniques and analysis, and in design and implementation of ERM frameworks.

LIFE PENSIONS LONDON

Please contact Jan Sparks FIA (+44 7477 757 151, jan.sparks@staractuarial.com) for more information.

LONGEVITY RISK ANALYST

RISK PRICING MANAGER

Qualified

Part-Qualified / Qualified

Leading Global Consultancy

LIFE LONDON

STAR4730

Use your strong modelling skills in this creative and innovative client-focused actuarial role, which offers exposure to the latest techniques and the opportunity to specialise in longevity and demographic risk.

STAR4659

A fantastic opportunity to join an innovative bulk purchase annuity team, supporting the reinsurance tender process, assessing competitive positioning, performing collateral calculations and producing regular accounts.

Market Leader

Is your next role one of the

STAR4667

136

Fantastic opportunity to engage with key stakeholders in the delivery of robust pricing and reporting assumptions, driving improvements to the underlying methodology and processes.

LIFE

VACANCIES on our website?

Irene Paterson FFA

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

Diane Lockley

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

S SENIOR CONSULTANT + +44 7492 060 219 ddiane.lockley@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 m

SENIOR CONSULTANT +44 7841 025 393 sarah.obrien@staractuarial.com

| THECONTACT ACTUARY | APRIL 2018ANY TI M E TO PL48 EASE US AT DISCUSS Y OUR RECRUI TM ENT NEEDS

ACT recr Apr18.indd 48

LIFE SOUTH COAST

Major Insurer

+44 20 7868 1900

staractuarial.com 29/03/2018 14:50

S E IF IE GE -L NIT PA ON U K N RT A C PO E B OP TH ON

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

Appointments

PENSIONS

INVESTMENT

COMMERCIAL FOCUS Qualified

Major Consultancy

PENSIONS NORTH WEST

MANAGEMENT CONSULTANCY FOR PENSIONS

STAR4542

A close-knit pensions team seeks a commerciallyminded actuary with an appetite for client development and outstanding management skills to work alongside the practice leader in taking the business to the next level.

Market-Leading Organisation

STAR4718

Fantastic opportunity for a part-qualified or qualified pensions actuary to develop their career with a market-leader.

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

COVENANT REVIEW SPECIALIST Qualified

Qualified / Part-Qualified PENSIONS LEEDS

Growing Consultancy

PENSIONS LEEDS

STAR4714

Seeking a high-calibre actuary with a desire to help grow a niche line of business, within a multi-disciplinary, dynamic consulting team.

This is a great career development opportunity for someone with covenant review experience.

The successful candidate will possess good client consulting skills alongside a commercial focus to spot opportunities to create value.

Candidates with a background in corporate consultancy or trustee advisory will be considered.

Contact Adam Goodwin (+44 7584 357 590, adam.goodwin@staractuarial.com) now for further information.

CORPORATE PENSIONS LEADER Qualified

Market-Leader

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

Qualified

Specialist Consultancy

STAR4398

PENSIONS MANCHESTER

Unique opportunity for a qualified pensions actuary to build and lead a new business based in Manchester.

You will have significant experience of providing corporate pensions advice to a wide range of clients to help them achieve their objectives.

PENSIONS CONSULTANT Part-Qualified

CORPORATE PENSIONS ACTUARY

STAR4664

Leading Global Consultancy

PENSIONS BRISTOL

STAR4657

Support both Trustee and Corporate assignments, contributing to defined benefit and contribution plan design and strategy, pension plan financial management, ALM and broader risk management work.

Is your next role one of the

You will have entrepreneurial flair, a commercial focus and a proven track record of business development.

You will enjoy managing long-term client relationships, from initial contact, through feasibility studies and project planning to successful completion.

Contact Margaret de Valois (+44 7591 206 881, margaret.devalois@staractuarial.com) to find out more about this exciting role with a thriving consultancy.

CORPORATE PENSIONS CONSULTANTS Qualified

Leading-Edge Firm

PENSIONS NATIONWIDE

162 PENSIONS & INVESTMENT

VACANCIES on our website?

STAR4615

Join offices around the country, advising clients on strategic corporate pensions issues, including benefit design, risk management projects, funding negotiations, and pension accounting disclosures.

INVESTMENT CONSULTANT Qualified

Growing Investment Practice

PENSIONS INVESTMENT SOUTH EAST

STAR4598

Seeking a talented, motivated and enthusiastic actuary (or CFA) to play a key role in ALM, drafting and presenting advice to clients at meetings, assisting with manager research and providing Trustee training.

Irene Paterson FFA

Adam Goodwin

Margaret de Valois FIA M

PARTNER +44 7545 424 206 irene.paterson@staractuarial.com

ASSOCIATE DIRECTOR +44 7584 357 590 adam.goodwin@staractuarial.com

A ASSOCIATE DIRECTOR +44 7591 206 881 + m margaret.devalois@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

Star Actuarial Futures Ltd is an employment agency and employment business

PENSIONS LONDON

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

SOUTH EAST

SOUTH COAST

BRISTOL

BIRMINGHAM

MANCHESTER

LEEDS

EDINBURGH

GLASGOW

APRIL 2018 | THE ACTUARY | 49

Experts in Actuarial Recruitment ACT recr Apr18.indd 49

29/03/2018 14:50

At the back Appointments

The road to success

Brighter futures begin with Oliver James Associates Enjoy unrivalled access to the world’s XZMUQMZ QV[]ZIVKM ߨZU[ _Q\P 7TQ^MZ James Associates. We unite expertise in actuarial with an impressive network of industry contacts – and all while keeping a single aim in mind: to bring you the most exclusive career opportunities on the market.

Oliver James Associates Delivering with Excellence

50 | THE ACTUARY | APRIL 2018

ACT recr Apr18.indd 50

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Snapshot of Live Actuarial Vacancies

322

686

LIVE UK JOBS

LIVE GLOBAL JOBS At the back

Appointments

Life, Pensions & Investments Risk Actuary London (City) £90,000 - £100,000 + Package

Exclusive: Investment Consultant / Modeller London £80,000 + Package

Part VII Transfer Actuaries UK £800 - £1,000/ day

7XXWZ\]VQ\a NWZ I Y]ITQߨML IK\]IZa \W RWQV an exciting Reinsurer in the City focusing on Insurance Risk. Analysis of emerging actuarial topics, presenting to risk committees and implementing methodology changes.

A prestigious and highly regarded team of [XMKQITQ[\[ [MMS[ \W IXXWQV\ IV .1) Y]ITQߨML investment professional with 6-10 years’ experience. Experience of design/development of models, and understanding of stochastic modelling, is required.

Multiple Life insurance buinesses require Part VII Transfer Actuaries to join long-term projects over the coming weeks. If you have experience of working on Part VII transfer projects, excellent communication skills and availability to commence a new project shortly, please get in touch.

Head of Pricing London Up to £120,000 + Package

Senior Pensions Manager Edinburgh £85,000 + Package

Change / Transformation Actuaries UK & Ireland £500 - £800/ day

Key client in London seeks a Head of Pricing (Protection). The ideal candidate will have 8+ years’ experience and recent Pricing/Product development experience, ideally in Individual Protection Pricing.

Leading international consultancy seeks M`XMZQMVKML Y]ITQߨML XMV[QWV[ IK\]IZa This is a diverse role across corporate and trustee work leading client engagements and developing junior actuaries. Highly coveted role in the Scottish market.

We are currently supporting a variety of clients on eight interim Project Actuary vacancies.

If you have experience acting as a Project, Change or Transformation actuary, please get in touch.

Pricing Actuary – London Market London £95,000 + Package

Mixed Actuarial Opportunity London £75,000 + Package

Pricing Contractor UK-wide £500 - £900/ day

Global (Re)insurer with Lloyd’s presence [MMSQVO VMIZTa VM_Ta Y]ITQߨML IK\]IZa NWZ pricing position. Role will work closely with underwriters plus other senior stakeholders.

Does not require any previous pricing experience. London Market experience essential.

Highly reputable London Market insurer ZMY]QZM[ I XIZ\ \W VMIZTa Y]ITQߨML IK\]IZa _Q\P 4+ years’ experience to join its expanding team. Pricing or Reserving experience is essential. Excellent prospects.

?M IZM [MMSQVO Y]ITQߨML IVL VWV Y]ITQߨML pricing analysts with experience of motor, household and other personal lines pricing.

If you are thinking of becoming a contractor, or want to know more about it, please get in touch.

Predictive Modeler Hampshire £35,000 - £43,000

GI Casualty Reserving Lead London £90,000

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

We are currently building out a client’s predictive analytics function. We will look at candidates from actuarial and other statistical backgrounds. A passion for modelling/ analytics is essential. If you are an actuary with good modelling skills, and solid pricing knowledge, we would be happy to discuss.

This role involves supporting key reserving activities across my client’s casualty book WN J][QVM[[ AW] _QTT QLMITTa JM I Y]ITQߨML actuary with long tail reserving experience.

Experience of managing a small team is advantageous.

We are seeking a highly experienced reserving contractor to lead a project to redesign the reserving process for a London Market client.

You must have London Market reserving experience plus a good grasp of process improvement and project management.

General Insurance

Contact Us Richard Howard Life Specialist +44 203 861 9191 richard.howard@ojassociates.com

Sarah Robins Personal & Commercial Lines Specialist +44 203 861 9198 sarah.robins@ojassociates.com

Helen Kinloch Pensions Specialist +44 203 861 9173 helen.kinloch@ojassociates.com

Ross Anderson London Market Specialist +44 203 861 9206 ross.anderson@ojassociates.com

Elise Ogden Non-Life Specialist Contract +44 203 861 9169 elise.ogden@ojassociates.com

Ani Pannell Life Specialist Contract +44 203 861 9163 ani.pannell@ojassociates.com

www.ojassociates.com (72)[[WKQI\M[ oliver-james-associates

APRIL 2018 | THE ACTUARY | 51

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PO

ID FE NS T LI IO EN INS S N TM ES PE ES ITI V N IN TU R

OP

Experts in back Actuarial Recruitment At the

Appointments

E

NON-LIFE EX CL

RESERVING AND CAPITAL MANAGER

US IV

DIRECTOR OF RISK PRICING AND UNDERWRITING

Part-Qualified / Qualified

Major Insurer

E

NON-LIFE SOUTH EAST Qualified

Award-Winning Client

STAR4569

You are a leader in the household insurance pricing space, with experience of pricing, underwriting and data analytics.

Drive the assessment and quantification of risk for a market-leader. You will take the lead on large and PPO claims risk modelling, reserving and other components of the economic capital model.

You are a strategic problem-solver, with a focus on value creation and the proven ability to interact at the highest level internally and externally.

CAPITAL ACTUARY

NON-LIFE LOCATION UPON APPLICATION

STAR4609

You are also willing to get your hands dirty in the data, with professional expertise in GLM modelling, the application of advanced Machine Learning techniques and the development of risk models in R/Python.

Join our award-winning client and lead the evolution of their risk model, making full use of their extensive data, and the very latest analytical tools and techniques.

Contact Antony Buxton (+44 7766 414 560, antony.buxton@staractuarial.com) now for more information.

Part-Qualified / Qualified

Market-leader

NON-LIFE LONDON

STAR4690

A fantastic and wide-ranging role for an actuary with strong capital modelling and programming expertise. You will enjoy extensive stakeholder interaction, along with both management and oversight responsibilities.

SENIOR GI PRICING ANALYST Part-Qualified

Leading Insurer

NON-LIFE LONDON Qualified

Lloyd’s Syndicate

STAR4638

NON-LIFE LONDON

Are you a qualified actuary with a desire to become a thought leader in a growth area of specialty insurance?

STAR4684

Seeking an innovative and creative part-qualified actuary to develop pricing models for multiple products. You will influence business decisions, providing expertise, insight and information to stakeholders across the business.

Are you a creative thinker with experience of handling and analysing large data sets?

AI SPECIALIST This is an exciting opportunity to join a leading London Market firm to support the development of new initiatives.

Qualified / Part-Qualified

Market Leader

WIDER FIELDS LONDON You will work closely with underwriters and the Chief Actuary in developing insurance solutions in relation to the sharing economy (ridesharing, apartment/home lending, peer-to-peer lending, reselling, coworking, talent-sharing…).

Whatever your level of experience, contact David Ellis (+44 7432 791 061, david.ellis@staractuarial.com) to discuss this unique opportunity.

SYNDICATE PRICING ACTUARY

REINSURANCE RESERVING Qualified / Part-Qualified

Specialty Insurer

NON-LIFE LONDON

STAR4733

In this key role, you will have deep involvement in the implementation of solvency basis technical provisions, business planning, quarterly updates and the validation of assumptions, preparing regular and ad-hoc reports.

London Market

NON-LIFE LONDON

STAR4639

Use your passion for pricing in this key role within a cutting-edge firm. You will provide support for a new syndicate, taking the lead on decision-making pricing. You will also assist with BAU work for an existing syndicate.

Fantastic opportunity to join our client's machine learning and intelligence team, a group of data scientists and innovators delivering cutting edge solutions that leverage the latest artificial intelligence and big data technologies.

Is your next role one of the

85 NON-LIFE

VACANCIES on our website?

Lance Randles MBA

Paul Cook

Satpal Johri

PARTNER +44 7889 007 861 lance.randles@staractuarial.com

A ASSOCIATE DIRECTOR + +44 7740 285 139 ppaul.cook@staractuarial.com

ASSOCIATE DIRECTOR +44 7808 507 600 satpal.johri@staractuarial.com

Clare Roberts

David Ellis

Diane Lockley

ASSOCIATE DIRECTOR +44 7714 490 922 clare.roberts@staractuarial.com

ASSOCIATE DIRECTOR +44 7432 791 061 david.ellis@staractuarial.com

SENIOR CONSULTANT +44 7492 060 219 diane.lockley@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

| THECONTACT ACTUARY | APRIL 2018ANY TI M E TO PL52 EASE US AT DISCUSS Y OUR RECRUI TM ENT NEEDS

ACT recr Apr18.indd 52

Qualified

STAR4728

+44 20 7868 1900

Star Actuarial Futures Ltd is an employment agency and employment business

INSURING THE FUTURE

staractuarial.com 29/03/2018 14:50