The Actuary April 2017

APRIL 2017 theactuary.com

In conversation Diversity panel The magazine of the Institute and Faculty of Actuaries

How normalising our differences can work

Life Prolonging the longevity trend

Insurance Creating a more flexible matching adjustment after Brexit

Risk Learning from financial scandals of the past

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APRIL

Contents 18

22

14 UP FRONT 9 IFoA news

“We cannot recognise the full value of diversity and celebrate differences if we are not comfortable recognising and talking about these in the first place”

FEATURES AT THE BACK 18 Insurance: Group risk masterclass 34 Student

The latest news, updates and events from the Institute and Faculty of Actuaries

Katharine Moxham highlights the opportunities and challenges for the group risk protection market

Follow your own path, says Joseph Mills

35 Puzzles Cryptic crossword and Mensa puzzles

21 Risk: When culture goes wrong What can we learn from financial scandals of the past? Paul Harwood explains

Richard Purcell asks what the requisites are to create the best performing team

38 Appointments and moves 22 Life: The long game Michael Ortmann discusses what it takes to prolong the longevity trend

5 Letters Readers on defined benefit schemes, endowment policies and discount rates

7 President’s comment Colin Wilson focuses on the strategic issues that will shape the profession

8 CEO’s comment Derek Cribb on the IFoA’s continued professionalism training opportunities

13 Soapbox: Hamish Wilson An update from the Protection, Health and Care conference

36 People/society news

26 Solvency II: Methods for mergers Ed Morgan and Jeremy Kent describe a valuation methodology for insurance merger and acquisition transactions

38 Actuary of the future Kirsty Moffat, Hymans Robertson

THE ACTUARY ONLINE

29 Insurance: Post-Brexit matching adjustment The IFoA Matching Adjustment Working Party looks to the future

32 Technology: Actuaries in the age of artificial intelligence Ben Pring explains how artificial intelligence is likely to change every aspect of the insurance industry

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COVER ILLUSTRATION: ELISABETH MOCH

OPINION 4 Editorial

April 2017 • THE ACTUARY 3 www.theactuary.com

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EDITORIAL

The A(I)-team Teamwork is important for us all to succeed at work.

But what makes a team successful? thing to have (p14). Attracting and retaining a first-class, diverse team is important then. On the subject of recruitment, we are kicking off the process to find the next editor of The Actuary when my term ends later this year. Let us know if you would like the opportunity to work with and lead the dynamic and talented team that produces the magazine (p25).

Looking to the future, we can’t really ignore the role technology will play in our teams either. Not when a third of UK workers are apparently at risk of being replaced by robots. Artificial intelligence may also replace a lot of what we currently do as actuaries, but Ben Pring says we should worry less about this, and instead focus our energies on how we use the extra time created to improve human and business performance (p32). By working hard to improve diversity, maintain a professional culture and embrace the benefits of technology, we can create our own A(I)-teams that are fit for the future.

ell, that’s not an easy question to answer.

It is far easier to point to examples of unsuccessful teams. Paul Harwood holds up Wells Fargo as a firm where culture has ‘gone wrong’ by incentivising the wrong behaviours (like mis-selling products) and not rewarding the right ones (such as reporting unethical behaviour). He argues that a robust commitment to professionalism and integrity can reduce cultural risks (p21).

We also know that diverse and inclusive teams out-perform others. This month we hear from an illustrious panel, including Lord Hastings CBE and Angela Darlington, on how we can improve inclusivity in our workplace, reminding us that it is imperative if businesses are to maintain a competitive advantage – not just a nice

W

“Inclusivity is an imperative for firms to maintain a competitive advantage”

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While every effort is made to ensure the accuracy of the content, the publisher and its contributors accept no responsibility for any material contained herein. © Institute and Faculty of Actuaries, April 2017 All rights reserved ISSN 0960-457X

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THE ACTUARY • April 2017 www.theactuary.com

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LETTERS More comments can be posted online about news stories published on www.theactuary.com

Long-term woes

Have your say online

Back to basics I am referring to Chris O’Brien’s article (bit.ly/Meaningful Measures) in the January/ February issue of The Actuary.

There must be many old-timers like me who are dismayed at the headlines regarding deficits in pension funds bringing about collapse of companies and losses of employment. Regulations imposing guarantees of the impossible seem to be the root of the problem, and the disappearance of what was once the best pensions provision in the world, the result.

Admission to membership of a defined benefit scheme involves a term covering several decades, during which all kinds of events and trends affecting assets and liabilities will occur, and guarantees (even of death and taxes) cannot be relied upon. If there is a current appetite for a return to realism in assessing the capacity of pension funds it must be encouraged. One step in that direction is that in the Tata saga. If the press reports I’ve read have got it right, the finances of the pension fund have been separated from the accounts of the company. That is not the whole Tata story but it has dealt with a major blockage.

A move back to basics must recognise that the primary liability of a pension fund is to pay benefits as a stream of income to beneficiaries, and its asset is the receipt of income as a stream of contributions from employers and employees, and income from investments. So far as possible, this reality should be preserved in the periodic valuations that guide the trustees in measuring the adequacy of the accumulated funds and the current contributions.

Market prices of assets are relevant only at the point of purchase or sale, for example when the net cashflow is positive or negative.

To produce figures in a form acceptable to the arithmeticians, discounting is needed only of the future gaps between cashflow out and cashflow in, the merits of different types and grades of assets having been built into the projections of income.

The use of differing rates in valuing assets and liabilities is illogical and introduces a distortion.

Victor Hughff 23 February

MORE LETTERS ONLINE www.theactuary. com/opinion

The editor welcomes letters of 300 words or less for print.

Longer letters may be published online.

The editor reserves the right to edit all letters for publication.

Please email editor@ theactuary.com.

The deadline for receiving letters for the May 2017 issue of The Actuary will be 25 April 2017.

I am pleased that the president has raised the issue of discount rates (bit.ly/EvaluatingValuations). For pension funds and life insurers the real problem is annual accounting for long-term liabilities. But that is immovable. What we need to do as actuaries is to provide guidance around annual accounts that gives some view on the long-term status of the fund. I will leave others to suggest what that should be.

The discount rate for lump sum personal injury claims is to a degree an irrelevance. I was strongly in favour of the introduction of structured settlements. Two advantages were an ability to adjust the payment up or down as the medical prognosis changed and investment risk remaining with the insurer. However, there was a regulatory problem. Such a settlement remained on the balance sheet of the insurer, and the regulators required capital to be held against the liability. No doubt, finance directors of non-life insurers became keen to pay upfront capital payments. Can we not find some way around this so a structured settlement becomes the norm?

On a separate matter, should the worsening of mortality experience be confirmed and continue, can insurers stop using 1.5% annual improvement in mortality in calculating reserves for annuities?

Ian Reynolds 23 March

Ombudsmen omissions It is ironic that the March 2017 edition of The Actuary includes my letter Endowing wisdom (bit.ly/Endowing Wisdom) and Andy Cox’s article about Internal Audit (bit.ly/EnoughofExperts). In particular, Cox has a section headed ‘An analytical approach’. Actuaries should apply the data analytics to mortgage endowment complaints. The questions to ask are: “Are the complaints being handled properly?” and “Are there adequate reserves being set up for the redress bill?”. There is an identifiable control failure if the answer to both questions is “No”.

I suspect the answer to the second question is “No” and plainly the answer to the first is “No” based on the Financial Ombudsman Service website. This contains a database of ombudsman decision letters where it is easy to inspect mortgage endowment DRN cases. I note a pronounced tendency for the ombudsman to say: “The endowments were expected to meet target,” the target being to pay off the mortgage in full. “You knew from the policy illustration that there was a possibility that the endowment might miss target. So you were aware of the mortgage risk.” Mortgage risk being the possibility of shortfall at maturity. A particularly outrageous example is DRN3144833. The ombudsman was not aware of any endowments that missed target by the year 1987. Apparently he overlooked that the low-cost endowment was, in 1987, a comparatively new product and we had the high inflation of the 1970s.

The ombudsmen are grossly underestimating mortgage risk. The tribunal case of Legal & General v FSA established the 50% mortgage risk for endowments taken out in the three calendar years 1997, 1998 and 1999. Financial analysis proves high mortgage risks for years of commencement up to 1997. My letter in the March edition proves that mortgage endowment complaints should be upheld.

Antony Pepper 23 March

April 2017 • THE ACTUARY 5 www.theactuary.com

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PRESIDENT COMMENT COLIN WILSON is the president of the Institute and Faculty of Actuaries

Your profession needs you!

Colin Wilson focuses on the strategic issues that will shape the profession with an eye to the future Are you proud to be an actuary? Do you care about what the profession will look like in five, 10 or even 20 years’ time? Do you want a thriving profession that is respected and sought after, where your skills, knowledge and experience add real value to business and society? Do you want your professional qualification to open doors for you; doors to a varied, enriching and rewarding career?

If you answer yes to all those questions, then it is not going to just happen by itself.

You can’t just stand in the wings and hope that someone makes the right long-term decisions. Or worse, stand in the wings and bemoan the state of the profession without taking any responsibility yourself. No, your profession needs you.

If we want to ensure that our profession remains relevant, not just for ourselves but for those that will follow us in the years and decades to come, it is crucial that our governing body, council, focuses on the strategic issues that will shape our profession. Just as important though, as our global membership grows and becomes increasingly more diverse, it is crucial that this diversity, and the richness that it brings our profession, is properly reflected in the strategic decision-making body. We have had much success in recent years in increasing the number of nominations for council and attracting talent onto council, but I know that there is more to do.

In my December article, I explained that council was undertaking a review of its composition to ensure we continue to operate as effectively as possible. Many thanks to

those of you who responded to my request to hear your views, although I would like to have heard from a few more of you! As you can read elsewhere, council has decided it is too soon to put forward any firm proposals or initiate a formal consultation of members.

Nevertheless, I believe it is right that we continue to ask ourselves on a regular basis whether there is more we could and should be doing to future-proof the profession.

It has always disappointed me that only around 20% of the voting membership ever exercise their right to vote in council elections. I guess you could put a positive spin on that and say that those that don’t vote are obviously happy with the way that council and the IFoA is being run. But I am not sure that I really believe that. So one of the other things we are looking at is how to increase member engagement with council.

This year, we have started to provide updates in The Actuary following each council meeting so that members are aware of the

“As we have demonstrated, geography is no barrier to standing for council; a fact reinforced by my successor, Marjorie, from South Africa”

issues being discussed. And we also want to provide more information on council members and candidates to help you choose the council you want.

But, ultimately, it’s down to you. Any changes to council composition will not be in place for the upcoming elections, but that should not act as a barrier or excuse to stop you engaging, either by putting yourself forward for council or simply participating fully in the election process. As we have demonstrated over the past few years, geography is no barrier to standing for council; a fact reinforced by my successor, Marjorie, who is based in South Africa.

So if you have views on how best to ensure the future of the profession, please consider standing for council, particularly if you think your geography or practice area or other specialism is currently under-represented.

And even if you don’t stand, it really would be nice to see more than 20% of you engaging in the process and voting for who should help decide the future of the profession.

If you are interested in standing for council, this time around or in the future, and would like to learn more about what the role involves, then please do not hesitate to contact me at presidents@actuaries.org.uk

April 2017 • THE ACTUARY 7 www.theactuary.com

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CEO COMMENT DEREK CRIBB is the chief

executive of the Institute and Faculty of Actuaries

Do the right thing Derek Cribb describes how the IFoA supports continued professionalism training and outlines the opportunities using these resources can bring Whether qualified or not, I think we all recognise the importance of keeping our skills up to date, making sure that what we bring to our professional roles is a set of knowledge that is relevant and of value. But is keeping our technical skills relevant sufficient for us to define ourselves as professionals?

I’ve been involved in a number of discussions recently that question not the technical elements of lifelong learning, whether that is examinations or CPD, but the need for learning about professionalism on an ongoing basis. I must admit to an element of dismay every time the discussion happens.

The rather circular argument that runs: “I am a professional, I work with other professionals every day in a professional environment, therefore my professionalism is inherent and formal training is not needed,” has yet to win me over. It has the same credibility to me as believing hanging around with athletes will make one fit!

Where we see professionals caught up in a scandal, there are usually one of two causes: ‘doing things wrong’ or ‘doing the wrong thing’.

The former is the less common and usually less severe. It encapsulates the downside of not keeping your technical skills up to date. While they are a basic need for anyone in gainful employment, technical skills do not make anyone a professional. The latter is the greater risk, and hence needs real focus. It is key to maintaining the reputation of our members, the IFoA and the profession as a whole.

Professionals do the right thing. This is not about every member serving the public

interest, or having the wisdom of Solomon in all decisions, but about being able to look in the mirror and be honest with yourself that you have done what you reasonably can to prepare yourself for tough and challenging decisions, which you then take to the best of your ability. These rarely come along to a pre-published schedule and it is best to be forearmed.

But we cannot expect to know how to make difficult judgments by osmosis. We need some structure to help us prepare for the challenges that will come. To achieve any of our qualifications, be it Certified Actuarial Analyst, Associate or Fellow, you must prove not only strong technical skills but also an understanding of professionalism and its application, and this must develop over time.

The IFoA has invested heavily in a suite of online and face-to-face tools to help you become a high-calibre professional. One great example is the IFoA professionalism videos.

These are used globally by members of the IFoA, other actuarial associations and indeed non-actuaries as a cornerstone of their training.

The latest step forward is the IFoA’s professionalism series of lectures. Over the next year we will be staging a series of landmark lectures aimed at promoting awareness about the importance and relevance of professionalism in financial services, positioning the IFoA and its members firmly

“It is being able to look in the mirror and be honest that you have done what you reasonably can to prepare for tough decisions”

8

as a leader in the field. We started the series in January and so far have held events, targeted both at our global membership and wider stakeholder community in Gibraltar, London, Kuala Lumpur and Singapore. In May we will be hearing from Dr Moses Cheng, chair of Hong Kong’s new Independent Insurance Authority, at the opening of our third annual Asia Conference. He has a real passion for professionalising all aspects of the insurance industry, recognising that some IFoA initiatives, such as the Certified Actuarial Analyst and Quality Assurance Scheme, are enablers of that professionalisation.

We have a number of keynote speakers lined up for the year ahead, including our own Benny Higgins FFA, who will be chairing a panel in London on 11 October, Sir Win Bischoff (19 October at GIRO, Edinburgh) and Lord Myners (early 2018), so please keep an eye out on our events page for the opportunity to join in the debate and discussion, and to develop your skills as a professional.

Life-long learning is not a regulatory chore, it is what helps define you as a professional and supports your personal development.

Viewed through this lens, a whole world of potential opportunities could open up before you. For more information, the regulatory team can be contacted on regulation@ actuaries.org.uk The IFoA’s professionalism videos can be accessed at bit.ly/actuariesprofskills Details of the IFoA’s Asia conference can be found at bit.ly/IFoAasiaconference The IFoA’s events schedule can be found at bit.ly/IFoAeventschedule

THE ACTUARY • April 2017 www.theactuary.com

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NEWS

Latest news from the IFoA council Welcome to your latest update from the IFoA’s council (pictured right) to keep you informed about what we are doing and the issues we are talking about.

At our third meeting of the sessional year, we discussed the increasing international nature of the profession and the opportunities and challenges this creates in delivering our corporate and strategic objectives. All our members, wherever they are based, play a valuable role, and it is important that we take steps to explore more fully how we can meet the needs of our members, within reasonable limitations.

Having also heard from our colleagues at the Institute of Actuaries of India the night before our meeting, it resonated that there is scope to do more and in collaboration with other actuarial sister organisations.

The task groups set up to act upon the review of the qualifications framework, as a result of the strategy agreed by the council last year, also provided updates on the direction of travel. Education is clearly a subject close to members’ hearts and there is a lot more to be done to develop and shape proposals. The fast and ever-changing environment in which the profession operates is undoubtedly on all our minds and is a relevant consideration in developing our framework for lifelong learning. As part of that, the council also received an update from Michael Tripp, chair of the working party on modelling, analytics and insights from data, continuing our discussions about what data science means for actuaries and the profession. Not an easy question! The impact of big data on core actuarial practice cannot be denied, and the council is exploring some difficult strategic questions with the working party.

In our first update (Jan/Feb 2017), we explained that we were undertaking a review of the council’s composition to ensure that we continue to operate

WHO DOES THE CPD SCHEME APPLY TO?

effectively. We have decided that it is currently too soon to put forward any firm proposals or to initiate, at this stage, a formal consultation of members.

We heard from the chair of the Disciplinary Board, Keith Oliver, and approved a number of minor changes to the Disciplinary Scheme rules, which will be subject to a members’ vote in due course. We also extended warm thanks to Sally Bridgeland, Master of the Worshipful Company of Actuaries (WCA), who attended to provide a presentation on the activities of the WCA and opportunities for further collaboration between the WCA and the IFoA. Our next council meeting will be held on 10 May jointly in London and Hong Kong, and we are looking forward to meeting as many of our locally based members as possible at our Asia Conference.

We appreciate that this is only a snapshot of what takes place at council meetings. For those wishing to read more, our future agenda and minutes are available on the IFoA’s website.

Should you have any questions or comments relating to this publication, the council and its activities, or the IFoA’s governance, please email our corporate secretary, Kimberley Russell.

Visit www.actuaries.org.uk/council Email kimberley.russell@actuaries.org.uk

In short, the continuing professional development (CPD) scheme applies to all members of the IFoA. Whether you are fully qualified or just starting out in your career with the IFoA, you have an obligation under the Actuaries’ Code to maintain your competence. The 2016/2017 CPD scheme sets out the framework that helps you to comply with this obligation.

Check your CPD category/requirements at www. actuaries.org. uk/cpd-pst The Actuaries’ Code can be accessed at www.actuaries.org.uk/ actuaries-code If you have any questions, please email cpd_feedback@ actuaries.org.uk

DEVLIN PHOTO LTD

APS X1 published: which standards should you apply and where?

The IFoA recently published a new Actuarial Profession Standard (APS) that comes into force on 1 July 2017.

APS X1: Applying Standards to Actuarial Work applies to all IFoA members and sets out principles

to help them determine which standards to apply to their work.

APS X1 is particularly relevant to actuaries working overseas, who may be subject to the rules of another professional body or where there are no clearly defined local standards or practices, as well as to those undertaking

cross-border / multinational work in all areas of actuarial practice.

APS X1 provides a framework to assist members in such situations, while allowing them to use their judgement to determine the appropriate standards to apply.

The IFoA will withdraw two publications when APS X1 takes

effect: GN 5: The Prudential Supervision Outside the UK of Long-Term Insurance Business and The Standards Decision Tree.

A programme of education and training is being developed to support members.

For more information, visit bit.ly/2mwvjqm

April 2017 • THE ACTUARY 9 www.theactuary.com

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NEWS

A guide to the new TAS suite

By Ann Muldoon, director of actuarial policy at the FRC The Financial Reporting Council (FRC) published a revised suite of technical actuarial standards (TASs) in December 2016, which come into force on 1 July 2017. Actuaries should ensure they are aware of the changes and what they need to do to implement them.

The new framework for TASs is shown below.

NEW TAS FRAMEWORK Framework for FRC actuarial standards TAS 100 Applies to all technical actuarial work TASs 200, 300, etc (Insurance, pensions, funeral plan trusts, other) Apply to areas of technical actuarial work, specified in specific TASs

 Risk assessment process

Statement of recommended practice (SORPs), IFoA Guidance Framework for FRC technical actuarial standards A new overarching framework for FRC technical actuarial standards replaces the existing Scope & Authority of Technical Actuarial Standards. The framework sets out the historical context to the TASs as well as their scope and application.

It also sets out the FRC’s reliability objective.

It is important that actuaries consider this and the spirit of the TASs when applying them. The TASs should not result in gold-plating or unnecessary work being performed, but sufficient work should be completed to ensure that the reliability objective is achieved – even if this requires additional work beyond that necessary to comply with the TASs.

KESTEVEN PHOTOGRAPHY

THE RELIABILITY OBJECTIVE

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Users for whom actuarial information is created should be able to place a high degree of reliance on that information’s relevance, transparency of assumptions, completeness and comprehensibility, including the communication of any uncertainty inherent in the information.

TAS 100: Principles for technical actuarial work TAS 100 replaces the three existing generic TASs on data, modelling and reporting (TAS D, TAS M and TAS R). It has six high-level, outcome-focused principles with supporting provisions. The principles and provisions are, in the main, based on the principles in the existing TASs. TAS 100 is much shorter than the existing generic TASs, with supporting text removed and defined terms appearing in a new glossary of defined terms used in FRC technical actuarial standards.

The most significant change, however, is that TAS 100 will apply to all technical actuarial work, while the current generic TASs only apply to work that is reserved to actuaries or work that is in the scope of a specific TAS. We consider that users are entitled to expect a minimum standard of technical actuarial work, and TAS 100 sets out that standard.

SCOPE OF TASs TAS 100

All technical actuarial work

Specific TASs

Work specified in the specific TAS

Specific TASs The revised specific TASs cover insurance, pensions and funeral plan trusts (TASs 200, 300 and 400). The insurance and pensions aspects of the transformations TAS are now in TAS 200 and TAS 300, as appropriate. The scope of the revised specific TASs covers technical actuarial work where the FRC considers that there is a high risk to the public interest.

We have defined the scope of the specific TASs through a detailed risk assessment process. Some areas of work have been removed from scope but will still be subject to the minimum standards set by TAS 100.

The revised TASs can be found at www.frc.org.uk/Our-Work/Audit-andActuarial-Regulation/Actuarial-Policy/ Technical-Actuarial-Standards-2017.aspx

existing TASs for work completed between 1 April and 1 July. This will be of help for pieces of work where it is uncertain when the work will be completed.

For pensions actuaries, there are transitional arrangements for scheme funding exercises started before 1 October 2016. If such an exercise is completed after 1 July 2017, compliance with the existing TASs is permitted.

Guidance The IFoA has published guidance to help its members with the interpretation and practical application of TAS 100.

The guidance can be found at www. actuaries.org.uk/non-mandatory-guidance So what are the next steps for you?

Actuaries should take action now to ensure that they are ready to implement the revised standards by 1 July 2017, or earlier if they wish to adopt the standards early. Actuaries and firms will need to: ● Identify any areas of their work that will, for the first time, be subject to TASs ● Review model reports and templates to ensure compliance with the revised TASs, and ● Review processes and procedures to ensure compliance with the revised TASs.

Transition The revised TASs come into force for technical actuarial work completed on or after 1 July 2017. For work not in the scope of current TASs, actuaries may wish to consider complying with the revised TASs for work completed before 1 July. For work that is in the scope of the current TASs, actuaries may comply with the new TASs instead of the

TAS 100 PRINCIPLES Judgement

Data

Assumptions Models

Communications

Documentation

THE ACTUARY • April 2017 www.theactuary.com

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OBITUARY

Jeremy Goford Jeremy Goford was a true Colossus in the actuarial world and his premature death on 25 February aged only 71, following a short but courageous fight against a brain tumour, is a huge loss to the profession that he loved and did so much for.

In his work, he was instrumental in establishing Tillinghast (subsequently to become part of Towers Perrin and now Willis Towers Watson) as a major force in the UK. He helped build its London office in the 1990s into what at the time was the firm’s largest and most successful office worldwide.

He put a huge amount of effort into volunteering for the profession. He wrote a paper on effective financial management for life offices, which is still used and can be thanked for helping to avoid the effects of the credit crunch that hit the banks so hard. He chaired a steering group tasked with developing a new education framework, and a paper entitled ‘Principles of the Future Education Strategy’ was presented to meetings of the Institute and the Faculty in January 2001. That framework was developed into the syllabus that has been in place since 2005. The

strategy, which is strongly reflective of Jeremy’s own views, has stood the test of time.

Subsequently, Jeremy became president of the Institute in 2002 – 2004, where he instigated a drive to get actuaries to see things from the customer’s perspective. He was a man who would often think outside the box – sometimes a slightly uncomfortable place to be. He left big ripples behind him as the rest of us struggled to keep up.

Jeremy was highly involved with the Worshipful Company of Actuaries. Jeremy saw that actuaries could have a larger role in the financial affairs of London and the UK and that the livery company could make this happen. He became Master of the company and was subsequently instrumental in establishing the Financial Services Group of Livery Companies to advise the Lord Mayor more effectively for his/her meetings at home or abroad. He was awarded the Company’s Award of Honour last year (only the seventh time it has been awarded in nearly 40 years) in recognition of his achievements.

Away from work, Jeremy was equally active and determined. He loved to talk way into the

evening, covering any topic that you could imagine, and to consume the odd glass of wine or port (can you tell the difference between red and white port when you are blindfolded?).

He will be greatly missed by the profession and his lovely wife, Jane.

We are all better for having known Jeremy, personally and professionally – he will leave a big hole in a lot of people’s lives.

Written by Nick Salter

CALL FOR RESEARCH PROPOSALS BEHAVIOURAL ASPECTS OF INSTITUTIONAL INVESTMENT DECISION-MAKING The Institute and Faculty of Actuaries (IFoA), through its Actuarial Research Centre, is inviting research teams and organisations to submit proposals for a research project on behavioural finance.

The objective of this call for research is to explore the decision-making of institutional investors – in particular, insurers and pension schemes, especially the biases that may affect their investment decisions.

This could include, but not be limited to, emotional, psychological and political biases.

The project is expected to explore what ‘rational’ or ‘optimal’ behaviour could be expected from an institution in certain economic scenarios, based on its investment objectives and underlying values.

It will then explore whether there is solid evidence that ‘behavioural’ factors, such as human psychology, company culture, corporate politics and conflicts of interest, cause them

to deviate from optimal behaviour in any way.

The research should then make practical conclusions that could be used by actuaries working in investment and related areas.

For example, one possible output of the research could be a suggested governance structure that an organisation could choose to put in place to manage these biases and conflicts.

The IFoA is seeking research that has both impact and practical application. It has allocated a funding allowance of up to £200,000 to this proposal.

This grant may be split across more than one research team, depending on the scope and content submitted by respondents.

Visit www.actuaries.org.uk/ call-research-institutionalinvestment-decision-making

OPENING DATE: 20 FEBRUARY 2017 Closing date

21 April 2017 (17:00 UK time, BST)

Expected date of award

Mid May 2017

Expected date of commencement

June 2017 onwards

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NEWS

ARC webinar series 2017 The IFoA’s Actuarial Research Centre (ARC) is launching a webinar series to showcase three of its largest cutting-edge research programmes, addressing some significant challenges in actuarial science.

The series will consist of three separate webinars to cover each research programme: ● 17 May: Modelling, measurement and management of longevity and morbidity risk – Developing a new generation of

mortality and morbidity models, with a specific focus on the drivers for mortality ● 13 June: Use of big health and actuarial data for understanding longevity and morbidity – New statistical and actuarial methods in the use of big data, in the context of health and wider applications ● 14 June: Minimising longevity and investment risk while optimising future pension plans – Future pension products that meet customer needs, balancing stability, performance and cost.

These webinars are designed to encourage a two-way dialogue and participation on the issues currently being researched. It is a great opportunity to put questions via a live feed to our panel of research academics and practitioners, joining in the debate wherever you are located in the world.

These events are eligible for continuing professional development (CPD).

For more details, times and registration, visit: www.actuaries.org.uk/learn-develop/ attend-event/arc-spring-2017-webinar-series

EVENTS AND CONFERENCES

ISTOCK / PRASIT RODPHAN

IFOA SPRING LECTURE – ANTIMICROBIAL RESISTANCE: GLOBAL THREAT TO HEALTH AND ECONOMY

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CURRENT ISSUES IN LIFE ASSURANCE (CILA)

including Dr Moses Cheng, the profession in Asia. The chair of the Independent full programme and Insurance Authority, Hong speaker line-up are 4 May, London Kong; Sir James Mirrlees, available to view online. bit.ly/2m7SvpC Nobel Prize winner and With special thanks to This popular event will economist; Ms Yi Qin, who our generous conference focus on key regulatory set up Deloitte China’s partners: 27 April, London, and by ● Sunshine Insurance changes, with practitioners blockchain practice and webcast Group – platinum sharing their experiences chairs its blockchain ● Milliman – silver bit.ly/2lKSZH4 of working in a Solvency II platform, Rubix; and ● RGA – silver Antimicrobial resistance environment, and providing Yves Guérard, former ● Standard Life (AMR) has increased key insights into the future secretary-general of Investments (Hong Kong) alarmingly, accelerated by of investment and life the International Ltd – lunch the overuse of antibiotics in products, followed by a Actuarial Association. ● CAS – conference many countries for both Professional Skills session.

Topics will range from medicinal and agricultural big data, to climate change networking and drinks reception sponsor. purposes. The scale of this IFOA ASIA solutions, to the future of CONFERENCE 2017 problem has exploded in 11-12 May, Hong Kong recent years, with AMR now being widely reported bit.ly/2i5WdmE With a little over a month to throughout the globe. go, places are filling up Professor Dame Sally quickly for the increasingly Davies, FRS FMedSci, will popular Asia Conference, explore why AMR has which will deliver a series of developed to such an extent that it is now a threat high-profile plenaries, cross-practice workshops to society, and the roles and networking and responsibilities of the government, policymakers opportunities, aimed at bringing together actuaries and healthcare SAVE THE DATE: at all levels to engage with professionals in tackling IFOA ASIA CONFERENCE 2018 top influencers and this problem. Join the live 15-16 March, The Berkeley Hotel, Bangkok streaming of this event and decision-makers in the Please send all enquiries to the events team at take part in one of the most insurance industry. eventmanagement@actuaries.org.uk We have a stellar line-up important topics in the of plenary speakers, world today.

RISK, INVESTMENT AND PENSIONS CONFERENCE 5-7 June, Wales bit.ly/2m7M2uY Delegates will have the opportunity to attend a series of cross-practice sessions and topics outside their immediate practice areas, while taking part in three days of plenary sessions, technical workshops, and Professional Skills updates.

PRICING SEMINAR 6 June, London bit.ly/2m7YBq3 The seminar is aimed at qualified actuaries and students involved in the pricing of personal lines, commercial lines or London Market business in the UK.

RESERVING SEMINAR 20 June, London bit.ly/2ndw0Sd This event is suitable for all GI reserving actuaries from those performing the analysis, to those overseeing it and providing insights.

THE ACTUARY • April 2017 www.theactuary.com

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SOAPBOX HAMISH WILSON is chair of the IFoA Protection, Health and Care Conference 2017

A promising programme Hamish Wilson reports on what delegates can expect from the Protection, Health and Care Conference After a successful conference last year at the Rum Warehouse and Titanic Hotel in Liverpool, this year’s Protection, Health and Care Conference moves up the M62 to return again to the very popular Hilton in Deansgate, Manchester, from 24-26 May. As we are all aware, the past year has seen great changes in the UK and the wider world, but throughout all this, the field of medicine has continued to see remarkable advances.

When this year’s committee was looking to design a programme for the conference, we wanted to celebrate this and so invited submissions in the area of medical improvements, from prevention to detection to cure. We had a fantastic response and I’m delighted to say we have designed a programme that is rich with talks and discussion in all areas. Highlights include: Prevention: Dr John Schoonbee, chief medical officer of Swiss Re, will challenge the current diet guidelines and ask whether low-carb, high-fat is the way forward (I’ve a personal interest in this one), while Colin Bullen from Habits at Work will ask if we are we ready for behaviour-linked insurance.

Detection: William Monday, chief medical officer of Pacific Life Re, will look at how liquid biopsies (the detection of cancer cell DNA in the bloodstream through a simple blood test) are revolutionising cancer detection and the impact on the insurance industry, while Gen Re’s John Delfosse and Zoe Woodroffe will look at who the patient’s advocate is for turning illness detection into a disability claim.

Cure: Dr Ben Willcox from the Institute of Immunology and Immunotherapy, University of Birmingham, will look at how immunotherapy is being used in cancer treatments, while Dr Chris Schenk and James Shattock from Unum will look at cancer survival trends over time in disability claims with the help of real-life case studies.

We can’t, of course, ignore the pressures that medical advances, shifting demographics and austerity all inevitably put on health and social care systems.

As a result, there will be several plenaries and workshops discussing this area and, most importantly, how as an insurance industry we can play our part in improving outcomes; in helping steer the debate in the public interest, understanding the health and care funding pressures individuals will face, and in the development of suitable products to help ease this funding burden.

As well as the above, there will be a range of

“The past year has seen great changes but throughout this the field of medicine has continued to see remarkable advances”

talks on product design, pricing, underwriting, claims and distribution across both the PMI and protection industries. As ever, the conference will also test the ability of around 200 actuaries to let their hair down, kick their shoes off and have a wild party. OK, perhaps not so wild, but again we hope to have designed a lively entertainment programme to allow attendees to network, meet old friends and make new acquaintances.

The highlight of the entertainment this year will be after-dinner stories from Alexander Armstrong, co-star of the popular quiz show Pointless, a successful comedian in his own right and a direct descendant of William the Conqueror!

I look forward to seeing you all there.

I personally am making my own efforts in the area of prevention by suffering through a diet and joining a gym, and going one step further and actually going to it too. So perhaps you’ll see a bit less of me this year – or perhaps not.

The full programme and registration details for the IFoA Protection, Health and Care Conference between 24-26 May are available at bit.ly/2017ProtectionHealthCareconference

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IN CONVERSATION DIVERSITY

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Angela Darlington, Suki Sandhu, Michael Hastings and Chika Aghadiuno speak to Richard Purcell and Christopher Seekings about diversity, inclusivity and ways we can all drive change in our workplaces

something I have experienced, even with work experience students. When you get a student who satisfies the diversity criteria, you almost have to ready your people that they are not going to be the usual Surrey, private-school students.”

Gauging diversity Sandhu explains the difficulties of measuring diversity: “It’s not just about the visible characteristics you can see, it’s about the cognitive diversity that you can also bring to the table. Measuring this is obviously harder, because you need the data to understand the make-up of your workforce. This can be easy when you are collecting gender and ethnicity, which is visible, but when it comes to sexuality or disability, the information is often given voluntarily.” He believes that the latter can still be useful though: “Some businesses learn that 3% of their employees are LGBT, but then 6% would rather not say.” For Sandhu, this indicates a problem that can be looked at and addressed.

Darlington is also a believer in measuring diversity. As she explains: “In business, we are competitive beings; if you don’t measure things, you won’t necessarily get the outcomes you need.” However, she adds: “It can’t all be about the measurements.”

Looking beyond these figures is a view that resonates with Michael Hastings, who believes we should “stop labelling people, and putting them into boxes, and instead start embracing, understanding and accepting people”. Sandhu elaborates: “Diversity is being invited to the party, inclusion is being asked to dance – which I think sums it up perfectly, and I don’t think that you can do one without the other.

They are not mutually exclusive, and there is no point in spending all that money on hiring diverse talent, to find that they do not feel like they belong when they get there.”

Hastings is in agreement, and believes that acceptance isn’t measured in any current methodology: “I think we have gone through more than a double generation of the diversity measurement industry, and I am not convinced it has delivered an inclusive society or an inclusive business culture. What it has done is flag up where the issues are, and that’s

PHOTOGRAPHS: TOM CAMPBELL

ith just over an hour to go before the IFoA’s debate, chaired by Chika Aghadiuno and introduced by former president Nick Salter, on harnessing the power of diversity and inclusion at work, entitled ‘The Carrot, the Stick and Strategies for Success’, we have an opportunity to question the guest speakers as they prepare for the main event.

Beginning with the benefits of diversity; Angela Darlington believes these are obvious in the context of effective risk management.

She notes the importance of hearing challenges: “The main benefit is that you get diversity of thought, so having people who think differently and can challenge each other is a huge advantage in the modern world, and I think that is true in any industry.”

Fellow panelist Suki Sandhu believes that it is more than just good business sense: “With diversity and inclusion there is so much research to present a business case – with increased productivity, creativity, innovation – that sometimes we simply forget it is the right thing to do, it’s part of being human; welcoming your employees and making them feel like they belong.”

Creating very diverse teams is not without its challenges though, as Darlington admits: “Sometimes it is a complete nightmare to manage people who think differently. There are moments when you really want people to move on to make a decision, and just get on with it.” Slowing the decision-making process down can be a drawback, but Darlington also believes this is a good thing, resulting in a much better outcome: “I think it is hugely important that we do slow down sometimes, and that other perspectives are taken into account. Take the global financial crisis, you can look at the cause of the problems and see people steamrolling an ideology through their organisation and not hearing the challenge.”

Chika Aghadiuno notes that another challenge is having to prepare people for diversity where there is currently very little.

“If someone doesn’t look like you, there is a bit of a reality check, and that is certainly

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IN CONVERSATION DIVERSITY

not a bad thing. But it doesn’t follow that the measurement methodology gets us through transformation.”

When it comes to improving inclusivity, the panel suggest various ways. Hastings believes we need to think about hiring processes in the workplace. “We have all seen multiple pieces of evidence that if you apply with a certain type of name, your ability to get through the filter is substantially reduced, for example with an Indian or African name, rather than a tidy English or American name.”

Hastings is concerned with systems that are pre-programmed with certain expectations and cut-off points. “They say nothing about character, or strength of thought – the very things we are saying about diversity not being just about colour or sexuality or disability.” Instead, Hastings calls on companies to get rid of algorithms in selection processes and consider how we measure openness of thought. He believes it is something you can see the outcome from but that you cannot put into an algorithm.

Recognising difference Redefining our idea of leadership is also cited

ILLUSTRATIONS: ELISABETH MOCH

DR MICHAEL HASTINGS, (LORD HASTINGS OF SCARISBRICK, CBE) is KPMG International’s global head of corporate citizenship. He served on the Commission for Racial Equality, is listed as one of the 100 most influential black people in Britain, and came sixth on the 2016 list of 100 Black British Business Leaders. He has served as a member of the World Economic Forum’s Global Council on Diversity and Talent.

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SUKI SANDHU is founder and CEO of Audeliss, a boutique executive search company.

He founded OUTstanding, a membership organisation for LBGT+ executives and allies, supporting diversification of the boardroom. He subsequently launched the EMpower list, in partnership with the Financial Times. He is also a Stonewall ambassador.

as another way to improve inclusivity. Sandhu explains how our view of leaders is often anchored by the existing leaders we see. “In most industries, the straight white older man dominates the boardroom or executive roles, so this is the benchmark set for being a leader.

If you are a gay woman, or an ethnic minority man, you are being benchmarked alongside him, including his behaviours and experience, which you would never match up to, because you are not a straight white man – you are different.” Instead, Sandhu suggests we need to “help people look through the unconscious bias that comes through”, and think hard about the skills really needed and how commonly required characteristics, like gravitas, can come through in different forms.

Improving diversity and inclusivity is often something focused on at senior levels within an organisation. Yet we know there can be much bigger challenges in the levels below.

We asked the panel to offer some practical ways that we can all improve diversity within our workplaces. One theme that stands out is humility. Darlington says: “We shouldn’t be afraid to ask questions that feel stupid,” as this is important for teams who truly embrace

Former president Nick Salter (second right) with speakers at the IFoA debate ‘The Carrot, the Stick and Strategies for Success’

diversity of thought. Equally, she believes we should also be humble enough to celebrate when someone proves us wrong, as it is a sign of healthy debate and challenge.

Another aspect is that we cannot realise the full value of diversity and celebrate differences, if we are not comfortable

ANGELA DARLINGTON is group chief risk officer for Aviva Plc. She is a member of the Actuarial Council of the Financial Reporting Council and the global CRO Forum.

She is a well respected role model for LGBT and women in leadership, featuring in the ‘OUTstanding Leading LGBT+ Executives List’ presented by the Financial Times.

CHIKA AGHADIUNO is general insurance director of the group actuarial function at Aviva, and chair of the IFoA’s Diversity Advisory Group, which looks at ways to stimulate debate and drive greater diversity within the profession.

THE ACTUARY • April 2017 www.theactuary.com

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DIVERSITY IN CONVERSATION

recognising and talking about these in the first place. Sandhu recalls being surprised at an event; “some people couldn’t even say the word black in a meeting and I had no idea that this conflict existed”.

Aghadiuno underlines the importance of being comfortable about what makes us different: “I do feel sorry for a lot of people who are trying to figure out how to manage this particular issue. I wasn’t at all surprised that people do not like saying the word, and the issue gets even more complicated. It’s not just my white colleagues, but also my black colleagues who may not be comfortable with this. Often they prefer to keep a low profile and not engage with the debate.”

Thinking about the ways we can celebrate and even normalise our differences, the conversation turns to the importance of allies in the workplace. Sandhu sums this up neatly: “You can’t really effect change without the majority. So if you think about LGBT specifically, we estimate that around 10% of the world is LGBT, which means 90% are straight, and we can’t really create the change if straight people are not helping us. So allies also have to ‘come out’ in our lives visibly to support us.”

Darlington explains the importance allies have played in her own journey: “People have spent a lot of time figuring out what it’s like to be on my side of the table, to make it more likely that I would put myself in positions that guys would have automatically gone into.”

Diversity is being invited to the party, inclusion is being asked to dance – and I don’t think that you can do one without the other” Darlington’s comment highlights how we can all have a part to play, provided we are prepared to put in the effort, placing ourselves in the shoes of others and offering support.

We also discuss the use of more visible signs to demonstrate support and allegiance to others within the workplace, and the idea of lanyards to champion minorities is suggested as another way to celebrate differences.

Besides allies, role models are clearly important too. Aghadiuno says: “People really do need role models to see what is possible. I see them becoming increasingly important.”

Darlington reveals: “I was once told that I was a bad role model because I was not talking about it,” she says, referring to her own

sexuality, “but I thought it had nothing to do with my job.” She quickly admits: “I was wrong and my colleague was right. And the enjoyment at work and my career have gone on an upward trajectory ever since that moment, because I have stopped trying to be something I am not, stopped trying to hide something about me at work, and I have started celebrating that difference in a way that I never did before.”

Her point underlines the importance of being confident in who we are. Later in the debate, Darlington shares her own challenges in finding this confidence. She recalls being encouraged by her colleague, who said: “Can I check you are not just being a woman?” when she had doubts about whether to put herself forward for her current role.

Darlington admits to being “more risk averse than some of my male colleagues”. She reveals her secret of having an internal scoring mechanism to assess how qualified she is to do a particular task, and then adding two to the score, putting herself on a level playing field with her competitors in her own mind.

Unconscious bias One of the ways we can all make a big difference to diversity in the short term is through recruitment, and Sandhu offers some practical tips. Besides anonymous CVs, he suggests interviewing in pairs to address the unconscious bias of hiring people like ourselves. He challenges us to question and demand more from our own internal hiring managers and recruitment consultants.

Another way we can make a difference is through reverse mentoring. This allows junior members of staff from minority groups to influence senior leaders and help them to open their minds to some of the opportunities and challenges of diversity within their businesses.

The debate was followed by a lot of interaction from the audience, much of it focused on practical tips for actuaries in the workplace. One question that resonated was what people should do if their employer was not open to improving diversity. Darlington’s response neatly summed up just how important diversity is as a business issue: “There are organisations who value diversity and those that don’t. I would say, go and work for the organisations that do value it.”

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INSURANCE GROUP RISK

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GROUP RISK INSURANCE

Group risk masterclass Katharine Moxham highlights the opportunities and challenges for the group risk protection market and five recent changes that will affect employers Live links on our app! p!

roup risk insurance policies are used by employers to cover a promise to pay a benefit in the event of an employee’s death, illness or disability. These benefits go a long way towards protecting employees and their families from financial devastation if the worst happens.

Whether they are the only benefits on offer or provided as part of a wider benefits package, group risk benefits (employer-sponsored life assurance, income protection and critical illness benefits) can give employees access to insured financial protection cover they might not be able to afford or access for themselves (for example, because they have a medical condition). Group risk benefits provide a business with a low-cost way of doing the right thing at a time when people need it most.

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PICTURE CREDIT

Research undertaken by Group Risk Development (GRiD) regularly highlights that one of the main barriers to businesses offering group risk benefits are perceived costs – with many employers greatly overestimating the actual costs involved. That aside, when an employer is concerned about costs, this can mean they don’t really understand the value of a product or what it does. There will always be demands on budgets, so it’s imperative to be able to make the business case for group risk financial protection and all that comes along with it.

It’s easy to appreciate the difference a group risk pay-out can make to a family, but group risk providers have also worked hard to offer employers daily value from a policy that they may rarely, or never, claim on. Thus insured group risk products give access to extra support services that can be extremely effective at keeping people in (or returning them to) the workplace, and supporting them through difficult or challenging times.

These can include preventative support, stress management, fast-track access to counselling, second medical opinion and more. Employers increasingly recognise the value to their business in having a healthy workforce, so group risk protection support is moving forward to include

GETTY IMAGES, ISTOCK

Challenges and opportunities

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INSURANCE GROUP RISK

help here too – for example, giving access to GP services, health tracking apps and mental health support.

Communicating all of this alongside the core insurance is key to getting best value. Employers will also find that, increasingly, the support services are available to the entire workforce, not just the insured population, and there is also help for line managers and business owners – giving daily value, even if a claim is never made.

It can be useful for employers to see how group risk benefits can be a real differentiator when it comes to recruitment and retention, how they help to fulfil their duty of care and obligations under the Equality Act, plus how they give access to so much more than just financial support.

Employees watch how their colleagues are treated, and a failure to ‘do the right thing’ can be costly in terms of lost morale and engagement.

Smaller employers are less likely to have HR or reward specialists but will often find access to exactly that kind of advice within their group risk purchase. The smaller business may feel the impact of having a member of staff absent more keenly and will appreciate the expert help and advice that providers can give in terms of managing their absence situation.

Legislative changes Legislative changes are always challenging for businesses. The latest are no exception, but they also present opportunities for working more closely together.

Employers offering group risk financial protection for their staff need to be aware of five key changes.

The Department for Work & Pensions/Department of Health Joint Policy Unit’s Improving Lives: The Work, Health and Disability Green Paper Group income protection has been recognised as playing an important role in supporting employers’ health, wellness and attendance programmes within the green paper. As a result of the consultation, GRiD is proactively urging the government and industry to step up to play their part in raising awareness of the importance of occupational sick pay and vocational rehabilitation in achieving financial resilience.

Although the consultation closed on 17 February 2017, the dialogue continues, and employers need to keep a watch on developments as reducing the employment disability gap and supporting ill or disabled employees becomes more central.

Unlinking group life from pensions The government’s consultation on pensions tax relief is on hold, but we anticipate that this will be resumed, especially after the recent U-turn on National Insurance rises for the self-employed.

The link of death benefits with pensions legislation is a challenge, especially given the reduction in the Lifetime Allowance. We believe there should be special consideration of group death in service benefits if pension tax relief is reformed, and will be making a case for a separate tax regime to be established for death benefits to ensure that damaging unintended consequences are avoided. Employers need to watch for progress on this situation so they can be prepared for any potential impact.

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GROUP RISK K BASICS Group life assurance provides a benefit on an employee’s death in service. This can be a tax-free lump sum (up to the Lifetime Allowance) payable to nominated beneficiaries or a taxable pension payable to the employee’s dependants, or both. It is possible to provide benefits in excess of the Lifetime Allowance, but expert advice should be taken on this.

Group income protection is a policy taken is a policy taken out by an employer to cover a promise to provide sick pay to employees if illness or injury prevents them from working for a prolonged period.

Group income protection providers support employees to help them return to work with reasonable adjustments made by their employer, but, if the employee cannot work owing to illness or injury, the policy will pay a benefit of a proportion of their salary. The benefit is paid to the employer and then passed on to the employee through the PAYE system.

Group critical illness is a policy taken out by an employer to pay a tax-free lump sum to an employee if they are diagnosed with a serious medical condition or they undergo a defined surgical procedure.

Group critical illness is increasingly being provided on a purely voluntary basis as part of a flexible benefits arrangement.

me prot Unlinking group income protection from state benefits The reduction of Employment and Support Allowance (ESA) from April 2017 will impact most group income protection policies (which generally make a generic offset for state benefits). In current terms, this means that new ESA claimants who are placed in the work-related activity group will receive the equivalent of Job Seeker’s Allowance (£3,801) instead of the current £5,312 a year. Advisers and group risk providers will be working closely with employers to review group income protection benefit design to ensure there are no shortfalls in cover.

Insurance Act Employers insuring benefits must review their data-gathering processes so as not to fall foul of the Insurance Act 2015, which came into effect in August 2016.

This places more responsibility on employers and advisers to ensure the right information is made available for insurers to accurately assess the risk they are taking on; for example, full and accurate details of people who are absent and why.

Group risk benefits pay out in dreadful circumstances for employees and their families, and all those involved in their set-up and ongoing operation must act with due diligence and care. Employers should seek expert advice on the potential impact of such changes to ensure there are no shortfalls in the cover they offer their staff.

Salary sacrifice Draft legislation limiting the range of benefits that attract income tax and National Insurance contributions advantages when provided as part of a salary sacrifice arrangement has now been published.

This exempts death in service schemes written through a registered pension scheme, but excepted group life policies and group income protection fall within scope of the changes.

Employers will be working closely with their group risk providers and advisers to ensure they get value for money within their flex programmes. Key to this is effective use of the extra supportive services, since this can release budget to spend elsewhere.

Nothing stands still – employers are facing some significant challenges over the coming months, and now is the time to offer expert advice and build strong tripartite relationships between employer, adviser and provider. Working together we can continue to develop extraordinary solutions to help employers and their staff.

KATHARINE MOXHAM is spokesperson for Group Risk Development (GRiD), the industry body for the group risk protection sector. Follow on Twitter @KMoxham

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ASSESSMENT RISK

In the second of his short series of articles to demonstrate risk management in practice, Paul Harwood explains what we can learn from financial scandals of the past n 2012, Forbes magazine reported that Wells Fargo cross-sold better than any other similar institution. But in 2016, 5,300 Wells Fargo employees were fired because they established over two million phony accounts.

Staff routinely did this, with or without informing customers, to benefit from sales incentives.

The amounts lost by customers (sometimes money was borrowed and returned once the incentive was triggered) tended to be small.

At inception, these were victimless, or at least victim-light, actions. Their commission might be explained as ‘normalisation of deviance’, the repeated tolerance of activity at the margin of acceptability, while the wider impact is lost.

This erosion happens while those involved are convinced of their personal probity. They believe that their behaviour is proper, rigorous and right.

Normalisation of deviance was cited by sociologist Diane Vaughan in her investigation of the decision to launch the fatal Challenger shuttle mission. She found engineers were not ‘amoral calculators’, but ‘…quite moral and rule abiding as they calculated risk’. Through

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normalisation, they had systematically deluded themselves: ‘they redefined evidence that deviated from the standard so that it became the standard’.

The result is that good people engage in wrong-but-accepted activities, which appear to be victimless, at least initially. JK Galbraith’s description of embezzlement fits: “Weeks, months, or years elapse between the commission of the crime and its discovery. This is the period… when the embezzler has their gain and the embezzled feels no loss. There is a net increase in psychic wealth.” For Wells Fargo, this was embezzlement of information.

While no-one knew, there was no pain.

A new ‘normal’ Invoking relative standards is part of normalisation. ‘It’s what everyone was doing’.

In retrospect, we are unsympathetic to these arguments, especially when behaviour contrasts with mission statements. In these circumstances, professionalism and a commitment to the public interest come into its own. The problem at the time is whether there has been a real change (‘things are

A problem for the future Wells Fargo’s own published statements about culture were gold-plated and best practice. Too often, those responsible for governance relied on documentation without testing its veracity.

Non-executives are reluctant to interfere with management. But then the documentation presented is all there is. By definition, there is no effective challenge. In which case, how can non-execs provide any comfort?

Firms issue their mission statements with the full support of their boards. Employees, sometimes quite senior, accept that these statements can be close to meaningless.

Meaningless but unchallenged? This feels like the first step to deviance normalisation. If the most widely publicised statement lacks integrity, what cultural message does that send?

There have been too many financial services scandals where the steady erosion of standards has masked an expensive future problem.

The resulting widespread loss of trust will take decades to restore. A robust commitment to professionalism, to integrity and to considering the absolute, not relative, ethics of commercial activity is essential to re-build the reputation of the sector. The actuarial profession has well established structures in its approach to professionalism. As a thought experiment, perhaps as a profession, and to test these structures, it’s worth considering how we might have intervened to prevent some of the recent problems.

PICTORIAL PRESS LTD / ALAMY STOCK PHOTO

When culture goes wrong

different now’) or simply a convenient perception of one. That’s a hard call to make without an ethical touchstone. With one, it becomes straightforward, but no less commercially difficult to communicate.

Wells Fargo would have been better incentivising the reporting of unethical practices. Why don’t firms get serious about encouraging such debates? They would provide a continual, robust tyre-kicking of the ethics of business practices and models. Firms repeatedly assert that their people are their single greatest asset. Listening to them should be important.

Is it too expensive? Hardly. Look at how much Wells Fargo lost. Maybe it is too messy to have to deal with employees who have higher ethical standards than their firms.

Aren’t these the best people to listen to though? If there are too many of them, that in itself is a strong signal.

Maybe it’s a definition problem. One man’s unease is another’s approach to achieving a goal. Discussing this across and up and down a firm provides a proper debate about risk tolerances and forces an openness about business activity that might otherwise not happen. It is true engagement.

April 2017 • THE ACTUARY 21 www.theactuary.com

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04/04/2017 08:18

LIFE LONGEVITY

The

long game Michael M ichael Ortmann discusses what it takes to prolong the longevity trend

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THE ACTUARY • April 2017 www.theactuary.com

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04/04/2017 08:19

Live links on our app! p!

t is well known that life expectancy has steadily and markedly increased over time in the UK. Many actuaries apparently take it as a natural law that the historic longevity trend will continue into the future. Every stochastic mortality forecast model extrapolates the observed evolution of falling mortality rates. We thereby assume that the future will be similar to the past, but what does it take to continue this trend?

Suppose the policy goal is to increase life expectancy further or, equivalently, to save as many years of life as possible. If 100 deaths could be averted, which age or age group would be the best target? The answer is simple: the younger the better, since children lose most years of life expectancy.

The problem is that the potential to reduce mortality at younger ages has been almost exhausted. Our research shows how much more effort it will take to keep life expectancy increasing at the same pace as in the past.

I

The past According to the population life table of 2013 as published by the Office for National Statistics (ONS), the most common age at death for males in England and Wales is 86. Notably, the modal age at death has increased steadily over time, while the deviation around that age has reduced. An increasing number of people die at about the same age, and these findings seem to indicate that there might be a natural limit to human life span.

In 1843, life expectancy at birth was merely 40.8 years, while by 2013 it had increased to 79.2 years. In the past 40 years, life expectancy has risen linearly by about three months per calendar year. Over this period, mortality rates were markedly reduced at all ages, mainly owing to medical advances, in particular: ● Reduced infant mortality, initially achieved through simple things like improved hygiene ● Invention of antibiotics, especially penicillin ● Measures taken to reduce the number of deaths by accident, such as the introduction of safety belts ● Reduction in mortality owing to cardiovascular disease by means of bypass operations, angioplasties and blockbuster medication.

Consequently, 99.6% of all newborn babies now survive the first year of life, 99.8% continue to live for the next 14 years and 98.4% survive between ages 15-40. The survival probability between ages 40-65 is 89.0%. These figures illustrate that we have come a long way in avoiding premature death. Figure 1 illustrates conditional survival probabilities, according to the ONS period life tables of 1843 and 2013.

Figure 1: Conditional survival probabilities for males in England and Wales

100% 90% 80%

1843 2013

70% Value

60% 50% 40% 30% 20% 0%

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April 2017 • THE ACTUARY 23 www.theactuary.com

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04/04/2017 08:21

LIFE LONGEVITY

Figure 2: The effort needed – in terms of the number of deaths at any given age that are to be averted – in order to increase life expectancy for newborn males by one week

800

The future In our research, we wanted to understand by how much the mortality rate at any given age must be decreased in order to increase life expectancy at birth by, say, one week. Using the exposed to risk in England and Wales in 2013, we calculated the number of deaths at any given age that needs to be avoided to achieve this objective. It is obvious that we only need to save a few newborns, as they would otherwise lose many years of life, while it would take saving many 80-yearolds to achieve the same effect on life expectancy at birth.

We found that the effort increases exponentially with age.

We assumed that those people who die would, if saved, enjoy the same life expectancy as the rest of their birth cohort. There is no evidence as to whether that is the right assumption in this context; people of the same age may differ according to their frailty or relative risk of death.

Clearly our findings would be even more pronounced if death of the elderly could only be postponed by a comparatively short period.

Figure 2 illustrates the results of our calculations. The blip in the curve relates to the irregular number of the exposed to risk in 2013, which is caused by missing births during the Second World War. In essence, we see an exponential growth of the effort required. In fact, fitting an exponential trend line yields a coefficient of determination of 0.98.

A harder climb

700 Number of deaths to be averted

These days, there is not much room left for further mortality improvements at younger ages. If all deaths prior to age 40 could be averted, life expectancy at birth would increase by only 1.3 years. Likewise, if we recorded no fatality up to age 65, then life expectancy for newborns would just rise by 4.3 years.

Since the possibility of reducing mortality at a young age has been so much diminished, future life-saving efforts must focus on the elderly.

600 500 400 300 200 100 0 0

10

20

30

40

50

60

70

80

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Age If all deaths prior to age

40

could be averted, life expectancy at birth would increase by only

1.3 years

at a very low point anyway. With respect to older ages, any assumed mortality improvements require averting a large number of deaths. It is therefore questionable if even small relative changes in mortality rates for the elderly are a realistic target.

It is difficult to decrease current mortality rates, especially at older ages, because the gain in terms of additional years of life is low. It is also expensive owing to the large number of deaths at old age. It therefore becomes increasingly inefficient to keep prolonging life expectancy for the population as a whole.

In the past, life-saving actions have predominantly focused on younger people who are economically active.

It remains to be seen whether we will increase our efforts and apply them to the retired population instead. If not, mortality improvement rates may level off sooner rather than later.

To keep life expectancy increasing at the same pace, it would be necessary to allocate more economic resources of our society to lifesaving of the elderly instead of wellbeing for the younger. It is not likely to happen – or is it?

Life expectancy at birth has increased by about three months each calendar year for the past 40 years. This stable linear trend masks the increasing effort required to maintain it in the future. That is because the number of lives that need to be saved in order to increase life expectancy at birth by a fixed amount grows exponentially with age at death.

Mortality projection models in the life and pensions industries are often based on mortality improvement factors.

It should be borne in mind that any relative change in mortality for younger ages is rather ineffective, since they are

MICHAEL ORTMANN is professor of mathematics at Beuth University of Applied Sciences Berlin

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04/04/2017 08:22

The magazine of the Institute and Faculty of Actuaries

Could you fill the hot seat?

Would you like to become editor of The Actuary?

As the official publication of the Institute and Faculty of Actuaries, and with a print readership of over 28,000 around the world, it is a leading platform for analysis, opinion and news within the actuarial community.

The current editor, Richard Purcell, will step down at the end of 2017, and we are looking for a highly motivated and enthusiastic successor to lead the experienced publishing staff and editorial team of the magazine from January 2018. Do you have the energy, dedication and skill set to take this leading role? Do you have the creative flair, yet the eye for detail, to preside over a high-quality publication?

This is a challenging role and requires a candidate with strong communication skills, an ability to work under the pressure of meeting publishing deadlines, and the commercial awareness to take the magazine forward.

A detailed description of the role can be found at: www.actuaries.org.uk/ get-involved/volunteering-ifoa/volunteer-vacancies If you feel you have got what it takes, please submit your expression of interest, with a CV, to Debbie Atkins at debbie.atkins@actuaries.org.uk no later than 31 May 2017.

Note that interviews are expected to take place by the end of July, with a candidate appointed by the end of September.

PACKAGED RETAIL AND INSURANCE-BASED INVESTMENT PRODUCTS (PRIIPs) PITFALLS AND EFFICIENCIES, COMBINING TECHNOLOGY AND EXPERTISE The webinar will discuss the practical implementation challenges facing PRIIPs providers, and will deal with issues such as: ●

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REGISTER FREE TO JOIN OUR WEBINAR 26 April, 13.00 (BST) VISIT: www.theactuary.com/webinars

04/04/2017 08:23

Methods for mergers p26 28 april_ S2AV_FINAL•CT.indd 26

04/04/2017 08:23

SOLVENCY II INSURANCE

he introduction of Solvency II is driving significant changes for the European insurance sector, including insurance mergers and acquisitions (M&A).

In our experience, investors are often interested in projected shareholder cashflows, that is, the expected real-world distributable profits, and wish to discount them at their required rate of return. A number of factors may influence distributable profits, but the most important medium- to long-term drivers are likely to be the required Solvency II capital and the own funds available and eligible to cover it.

Thus buyers and sellers of insurers are usually highly focused on the current and future capital position. Solvency II makes this position harder to determine than under Solvency I, but there is also much more scope for capital synergies and to improve the capital position through management actions.

While, in theory, the net present value of distributable profits could be obtained from a full, long-term projection of the Solvency II balance sheet and SCR, in practice it may be very challenging to get such a projection in a transaction situation. Approximations likely to be available, such as business plan or own risk and solvency assessment (ORSA) projections, may introduce material distortions into any valuation approach.

Our methodology, therefore, decomposes the valuation into given components, which can be determined with a reasonable level of precision, based on information likely to be available. Furthermore, this decomposition can be very useful in understanding the value attributed to activities such as new sales and asset management. This can be a base from which to assess the value that may be added by changing elements of the company’s strategy.

This methodology can be applied equally to life, non-life, and health business.

T

Our research paper, noted below has more details of the development of formulae to allow for these generalisations.

Impact of taking market risks Generally, companies are not obliged to take unhedged market risks and, therefore, do take them because they are expected to be more than compensated by increased investment returns (when the uplift in expected returns exceed capital charge related to risky assets).

We can determine the impact on SII-AV of investing in ‘risky’ assets by considering: ● The uplift in returns from investing in risk-free, less ● The cost of additional capital arising from risky assets, which will be a function of the additional capital, and the shareholders’ required rate of return, applied to the volumes of risky assets, allowing for tax as appropriate.

This calculation can be simplified if we assume that the uplift in returns, and the proportional additional capital required for risky assets, are constant over time. In practice, these may be expected to vary (for example, to allow for declining residual duration of corporate bonds, or diversification with non-hedgeable risks).

By allowing for value to be created (or destroyed) through holding risky assets, we have made an important departure from market-consistent methodology. Our approach reflects the investor’s own view of expected additional returns, and the risk is captured through the cost of the additional capital, which needs to be held. In our experience, this reflects more closely the decision-making framework used to run and buy insurance companies.

All other things being equal, we would expect there to be a theoretical optimum proportion of risky assets, in particular because, as more risky assets are added, the proportional diversification benefit with other risks will diminish.

This is illustrated in Figure 1 below. Of course, in practice, a diversified portfolio of risky assets would be sought.

Figure 1: SII-AV by proportion of risky assets

SII-AV

Ed Morgan and Jeremy Kent describe a valuation methodology for insurance merger and acquisition transactions, the ‘Solvency II Appraisal Value, or SII-AV

Starting point – assumption of no hedgeable risks Proportion of risky assets

Participating business For participating business we would need additionally to make allowance, in the calculation of the impact of investing in risky assets, for: ● Part of additional returns potentially being passed to policyholders ● The impact of loss-absorbing capacity of technical provisions (LACTP) on the additional capital.

IKON/ ROY SCOTT

Under the simplifying assumptions that all hedgeable risks are hedged, that assets earn the risk-free rate, that the solvency ratio (Solvency II own funds/SCR) is exactly 100%, that the shareholders’ required rate of return is 6% above the risk-free rate, and, in the absence of any tax and any future business, it can be shown that the present value of projected distributable profits, SII-AV, equals the initial own funds.

The above conditions would not be realistic in any real-life situation, thus we need to make adjustments to this value to allow for the tax rate, and a different shareholders’ required rate of return and solvency ratio. This is the approach we will follow here.

April 2017 • THE ACTUARY 27 www.theactuary.com

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04/04/2017 08:24

INSURANCE SOLVENCY II

Consideration may need to be given to the impact of a real-world approach on the projected value of financial options and guarantees” This calculation can again be simplified if the above elements are constant proportions over time. In practice, they may vary over time – for example, as older business with higher guarantees runs off.

Depending on the circumstances, consideration may need to be given to the impact of a real-world approach on the projected value of financial options and guarantees.

New business To complete the valuation, it is necessary to put a value on all future premiums not within the contract boundary definitions of the initial Solvency II balance sheet.

A common approach in appraisal value methodology is to consider the value of one year’s new business (NBV), and apply a multiplier, rather than projecting all future years’ new business.

NBV is calculated using a method analogous to that for in-force described above, beginning with the own funds generated at point of sale, and making various adjustments.

It is also necessary to consider how new business may interact with the in-force (diversification benefits in respect of capital, ALM interactions, etc) in order to produce NBV on a marginal basis.

Determining a suitable multiplier to apply is a problem also in embedded value (EV) methodologies, in particular when there is a need to reflect an expectation of changing profitability over time.

There may be other constraints on profits being distributable other than those prescribed by Solvency II. However, we believe, to estimate distributable profits, it will usually be better to base the valuation on Solvency II metrics and possibly adjust the target solvency ratio, than to use a definition of distributable profits based on accounting earnings.

Other factors related to Solvency II that may need to be considered include the eligibility/tiering of capital, use of transitional measures and subordinated debt.

Other methods Our methodology has similarities to a traditional EV (TEV) methodology, with statutory accounting and capital replaced with Solvency II values.

However, while a TEV approach based on accounting profits is difficult to apply in a Solvency II framework (in 28

particular, determining cost of capital is problematic), the SII-AV approach is a workable one.

While some buyers may prefer to stay with an approach based on market consistent EV (MCEV) methodology, we note that: ● Investors are typically not interested in the theoretical ‘market value’ of the liabilities (which is the basis for MCEV and, indeed, the Solvency II balance sheet), but rather the expected dividend stream ● MCEV makes no allowance for the shareholders’ view of expected real-world investment returns and the cost of holding capital for hedgeable risks.

Our methodology has similarities to the forward-looking perspective of the overall solvency needs assessment under ORSA, but we note that ORSA is not a valuation standard in itself and does not deal with issues like cost of capital.

We believe SII-AV provides a workable methodology for use in M&A transactions, which is aligned with the way that investors generally view potential target companies. It can be applied to all types of insurance business, and provides a basis for investors to consider synergies with existing businesses, and other value-adding actions.

For more details, please refer to Milliman’s paper: SII-AV – a valuation methodology for insurance companies under Solvency II

ED MORGAN is a principal with Milliman and specialises in international insurance consulting

JEREMY KENT is a principal with Milliman and specialises in international insurance consulting

THE ACTUARY • April 2017 www.theactuary.com

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04/04/2017 08:24

SOLVENCY II INSURANCE

Post-Brexit matching adjustment

The IFoA Matching Adjustment Working Party discusses the fundamental importance of the Solvency II matching adjustment to UK insurers

ith the first 12 months of Solvency II under our belts, it is clear that the matching adjustment (MA) framework is far from perfect. But was the allowance for an illiquidity premium under the previous regime any better? Given the choice, would firms go back to any elements of that regime?

With just two years until the UK exits the European Union, firms might just get this chance.

To help answer these questions, the IFoA Matching Adjustment Working Party has considered four key areas for improving the MA framework, taking into account the needs of a range of stakeholders.

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April 2017 • THE ACTUARY 29 www.theactuary.com

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04/04/2017 08:25

SOLVENCY II INSURANCE

We have also considered how the MA framework could be amended post-Brexit to deliver better outcomes for these stakeholders.

Rules versus principles-based regime Solvency II is sometimes described as a shift away from rules-based regulation to a principles-based regime. However, the general industry view is that the MA rules are very prescriptive, and in some areas they are a step too far.

A good example of this is the requirement for individual assets to have fixed cashflows.

Some assets provide a good match to annuity liabilities when considered in aggregate (for example, a portfolio of equity release mortgage loans), but they have to undergo complex restructuring in order to comply with the MA rules. The economics of the assets haven’t changed, but the restructuring introduces additional costs (which may be borne by customers) as well as operational risk.

1

Approvals processes Unlike the illiquidity premium under the previous regime, firms have to apply to the Prudential Regulation Authority (PRA) for approval to use the MA under Solvency II. The PRA has up to six months to approve an MA application. Each application requires detailed, line-by-line analysis of in-scope assets and liabilities.

Consider a firm looking to invest in a new asset class. Simple illiquid credit assets can be privately placed in as little as two weeks, potentially increasing to six months for more complex, bespoke investments. The time required to produce and process an MA approval application is therefore likely to exceed the time for which the investment opportunity is available. Adding to this, technical experts responsible for assessing

2

The time required to process an MA application is likely to exceed the time for which the investment opportunity is available” new investment opportunities are now required to divert their focus to the MA application.

Eligibility criteria One of the most distinctive elements of the MA framework is the concept of eligibility.

To which liabilities can firms apply the MA, and which assets can be used to back those liabilities?

For assets, there is a seemingly simple requirement – the asset needs to deliver certain cashflows. However, the reality is that asset cashflows are very rarely fixed in every conceivable situation. Firms may therefore pass over some attractive investment opportunities because it is too difficult to get them to fit the requirement for certain cashflows. For example, some infrastructure projects include an initial

3

construction phase, where the income during that phase or the completion date (or both) is unknown. Firms can earn up to an additional 100bps pa from such projects while having the opportunity to influence the project in early stages. However, the unknown cashflows in those early years are likely to render the asset ineligible for the MA. Consequences of a breach of any of the MA rules The MA rules are strictly binary. When a breach is identified, the firm only has two months to resolve it. If this cannot be done, then approval to use the MA is revoked and cannot be reinstated for a period of two years.

Suppose that, one month, a firm were to breach the requirement to have a closely cashflow matched portfolio. Most firms would be prepared to realise a material mark-tomarket loss by rebalancing assets (even if the firm’s investment managers would argue against doing this) in order to restore the matching position and avoid the severe hit to the balance sheet from losing the MA. During the financial crisis, very few bonds were trading in the market, resulting in a limited supply of good-quality credit. Where portfolios had to be rebalanced, significant losses would have been suffered. If firms had been subject to the same two-month rule previously, under the old regulatory regime, then arguably insurance company balance sheets would have ended up in a much worse position.

The need to quickly restore MA eligibility post stress is also one of the reasons why capital requirements in respect of MA portfolios are very high. It means firms need a good supply of eligible assets outside their MA portfolios to plug any gaps that might arise under stress.

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Table 1: Shortcomings of the matching adjustment framework

SHORTCOMINGS

POSITIVE

NEGATIVE

EXAMPLE IMPACT

Rules-based approach

Increased certainty over ability Complex structures and arrangements to earn illiquidity premia needed in some instances to satisfy the rules

Increased cost and operational risk

Approvals processes

Greater understanding of risks by both insurer and regulator

Insurers not able to take advantage of new investment opportunities

In many cases missing out on c.100bps+ pick-up on illiquid investment opportunities

Eligibility criteria

Greater transparency over assets backing annuities

Arbitrary limits disqualify assets/liabilities which satisfy the majority of the requirements and meet the spirit of the rules

‘Cliff-edge’ eligibility for assets with prepayment risk

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Inability to take on blocks of liabilities with handful of policies which have optionality

30

Severe consequences Encourages greater focus for breaches on governance

May lead to pro-cyclical behaviour

SCR to cover need to restore eligibility within just a two-month period under stressed conditions

THE ACTUARY • April 2017 www.theactuary.com

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04/04/2017 08:25

SOLVENCY II INSURANCE

Therefore, apart from the potential pro-cyclical effects of having to resolve breaches of the MA rules in a very short time frame, additional capital and liquidity requirements necessitate a more costly annuity offering from insurers and, consequently, unaffordable pricing for many customers.

How could the MA rules be improved?

The MA rules are black and white in many areas, leading to significant practical constraints. We believe two changes could give firms more freedom, while still ensuring risks are being managed appropriately: 1. Introduce materiality thresholds; and 2. Allow firms to hold capital buffers to provision for risks, where appropriate.

Firms already have to comply with the prudent person principle under Solvency II. This stipulates that insurers can only invest in assets whose risks they can properly identify, measure, monitor, manage, control and report on.

So it follows that firms should be able to set appropriate capital buffers for asset (and liability) features that don’t provide an exact fit to the MA rules.

Examples of where materiality and capital buffers could potentially be used are: ● Asset eligibility: Avoiding the need to restructure assets with small amounts of prepayment risk

● Liability eligibility: Allowing bulk

purchase annuity transactions which include a small handful of liabilities with non-standard features ● Approvals processes: setting aside capital while you wait for the PRA to approve a new asset class, so you can add it to the MA portfolio straight away and not miss out on the opportunity.

Adopting these two changes could be a quick win following Brexit, alleviating many of the issues currently facing firms with significant volumes of annuity business.

Lessons from further afield Supervisors in other parts of the world have been developing rules on the back of Solvency II. They have had the benefit of hindsight when picking those elements of the MA framework to adopt in their regulatory regimes.

Singapore is currently in the process of drafting its own rules, and Bermuda (which is deemed equivalent to Solvency II) also has its own version of the MA. Looking at these regimes, we see some notable differences to Solvency II: ● More inclusive liability criteria: predictability of cashflows is evaluated based on stress tests ● Less stringent hedging requirements: – for example, capital can be held in respect of currency mismatches ● More flexibility in terms of grouping assets and liabilities: for the purposes of satisfying matching tests; and ● Longer time horizons: for restoring MA compliance.

framework under Solvency II. Many areas of the MA rules are too black and white. The application of materiality thresholds and the use of capital buffers to provision for certain types of risks would be big wins for insurers, customers, the UK economy and the PRA. The Working Party sees the potential for substantial benefits if we use Brexit as an opportunity to refine those areas of the current MA framework that are badly in need of greater flexibility.

Ross Evans, Stephan Erasmus, Michael Henderson, Peter Maddern, Keith Neil, Andrew Kenyon and Ravi Dubey are members of the IFoA Matching Adjustment Working Party

We believe that these amendments, or variations thereof, also have the potential to greatly improve the current MA

April 2017 • THE ACTUARY 31 www.theactuary.com

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04/04/2017 08:25

TECHNOLOGY AI

Actuaries

in the age of artificial intelligence Ben Pring explains how artificial intelligence is likely to change every aspect of the insurance industry and what insurance firms can do to keep up ctuaries are no strangers to considering odds. Well, what are the odds on this? In recent months, an artificial intelligence (AI) software programme has beaten humans at poker.

Libratus – an AI software programme built by a team from Carnegie Mellon University – took down four of the world’s best poker players, in a two-handed game of no-limit Texas Hold’em, and walked away (not literally) with a cool $1.7m.

This, of course, comes hard on the heels of AI’s victory in the game of ‘Go’. Which followed its victory at Jeopardy and chess.

With the current rate of technological advancement, it will soon be inconceivable for a human to beat AI in any such odds-based games of the mind.

Look further afield and AI is winning in lots of other ‘mind-based’ areas as well; in 2015, six of the top eight hedge funds in the US earned around $8 billion based largely – or exclusively – on AI algorithms. In medicine, the ‘new machine’ is quickly surpassing the capabilities of human radiologists. Researchers at Houston Methodist Hospital utilise AI software, which interprets results of breast X-rays 30 times faster than doctors and with 99% accuracy. By contrast, mammograms reviewed by humans result in unnecessary biopsies nearly 20% of the time. In the legal profession, AI-enhanced computer systems are conducting discovery and due diligence far better, faster and cheaper than the most talented team of paralegals in a top law firm. Multiple studies predict that the vast majority of paralegal work

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can soon be automated. We may reach a point in the not-too-distant future when relying only on humans for discovery might be grounds for malpractice.

The rise of AI is the great story of our time.

Decades in the making, the smart machine is leaving the laboratory and, with increasing speed, is infusing itself into many aspects of our lives: our phones, our cars, the planes we fly in, the way we bank and the way we choose what music to listen to.

Within the next few years, AI will be all around us, embedded in many higher-order pursuits. It will educate our children, heal our sick and lower our energy bills. It will catch criminals, increase crop yields, and help us uncover new worlds of augmented and virtual reality. Machines are getting smarter every day and doing more and more; they will soon change our lives and our work in ways that are easy to imagine but hard to predict.

big data – will be the single biggest determinant of your future success.

So, what should you and your company do about the exponential rise of AI? The first, most important but seemingly, for a lot of organisations, difficult step is to stop worrying about what AI might do in the next 20 years and focus on what it will do in the next 20 months. Musing on the potential of machines is the dinner party topic du jour, but while wondering whether machines will act in the best interests of humanity is fun (with a glass of red wine to hand) it doesn’t help you figure out what to do when you get back to the office on Monday morning.

The organisations getting ahead with AI are injecting it into the software behind their products and services, and into the systems that run their operations – today. They recognise that machines are learning to do

Changes afoot Do you think the actuarial and insurance industries are immune to this tidal wave?

Think again. AI will change the insurance business more in the next 10 years than it has changed in the past 200. Lemonade, a relatively new New York-based insurance provider, has already claimed to have processed the world’s first insurance claim exclusively handled by an AI programme.

As such, whether you are managing a large enterprise or just starting your first job, deciding what to do about the new machine – this new cocktail of AI, algorithms, bots and

Technology has only brushed the edges of how the insurance industry works.

In 15 years it will be unrecognisable”

THE ACTUARY • April 2017 www.theactuary.com

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more and more things and are not fighting it, but embracing it. They understand that ‘systems of intelligence’ are exposing systems (and products, processes, and organisations) that aren’t intelligent.

And, lastly, they accept the fact that their customers will, without fail, gravitate to the Google or Amazon price (being generated through prodigious use of AI).

They know what while their competitors are pondering, the moment is right to act.

A great example of what to do when machines do everything is the recent move by H&R Block, which has teamed up with IBM Watson to infuse AI into the spring ritual of submitting one’s tax return. Tax prep is, like insurance, a hugely complex and dataintensive process. Yet, at its core, it is a very routine activity. Unleashing AI on rule and pattern recognition and data crunching has the potential to reduce cycle times and price points and free tax prep staff to spend more time making the annual visit to the H&R office less like a visit to the colonoscopists and more like a financial health check-up, with the corresponding opportunity to sell higher price/margin financial services.

Higher performance If in private you occasionally catch yourself thinking that the way an insurance claim is made today is pretty much the same as when you first started working, you’re right; technology has only brushed the edges of how the insurance industry works. But in 15 years’ time, thanks to AI, it will be entirely unrecognisable.

What will your company’s products and services look like in 2030? Will they be smart, personalised, full of intelligence and offered at price points that unlock huge new addressable markets? Or will they be only marginally better than they are today, run on systems built in the

20th century, with processes full of paper and duplication and work-arounds?

We are in an amazing time. The emergence of AI is not about simply substituting labour with software; it is about building the new machines that will allow us – you, your organisation – to achieve higher levels of human and corporate performance. When machines do everything, there will still be a lot for you to do. I encourage actuaries to embrace the benefits AI can bring.

BEN PRING is a co-author of What To Do When Machines Do Everything: How to Get Ahead in a World of AI, Automation, Bots, and Big Data (Wiley 2017)

April 2017 • THE ACTUARY 33 www.theactuary.com

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04/04/2017 08:26

AT THE BACK

Student OFF-PISTE If you’ve been fortunate enough to go skiing you will probably be able to relate to me when I say that it really only takes up a tiny fraction of the holiday. The rest is taken up either talking about skiing, changing into ski gear, sleeping, or my favourite; allowing the clean crisp air to pink-up your cheeks as you cradle a bevvy in one hand and a camera in the other, snapping at the scenery to gawp at over a steak and chips later on.

Now I love going down the mountain on a nice easy run, taking my time and trying new things out. But at the end of every run I whip out the piste map and eye-up those harder runs, the reds, and the blacks. I can’t help it.

If uncle Jack does blacks for a warm-up, why can’t I someday? So I try a harder run and truth be told, I don’t particular enjoy it, I lose control, I fall over. I try again and I make it down just fine… and yet I still don’t find pleasure in it. I’m doing it to get brownie points for when I get back home, to cash in some street-cred as a totally radical pandaeyed, alpine skier dude. Nothing more, nothing less. I’m probably just a wuss. But this made me realise I do the very same thing in everything.

I am an extremely competitive person, as we all are in some shape or form, whether we like to admit it or not. What I get out of skiing will be different to others, but sometimes I really do find it difficult to accept that.

However, no greater competition is felt in this day and age than in the form of social media. Where the inner personal lives of those we know, as well as the rich and the famous, is but a tap away. It’s a litter ground for absolutely everything to do with anything that happens at all, ever. Yet sometimes when scrolling through, I see old school friends

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getting engaged, others swimming in the turquoise waters in Thailand, while some gaze out over New York City from the top of the Empire State Building. And then there’s me. Slobbing out on the sofa with a half-eaten Texas BBQ pizza splayed out in front of me, as I stretch for the TV remote to start the next Netflix addiction, while fending off the dog who is eagerly awaiting the opportunity to steal some bacon off my pizza. And all the while I really should be studying. Ooops!

Don’t get me wrong, I’m immensely happy. But it always makes you wonder as you peer through the looking glass of the four-inch screen into the lives of others.

Set your own standard Steve Young, professional American football quarterback, does offer some handy advice for those of you in the same boat as me; you know… the sinking one: “The principle is competing against yourself. It’s about self-improvement, about being better than you were the day

before.” Cringe all you like, but there’s a valuable lesson there!

A good example of this in practice is in horse racing. It is a very familiar sight to see horses wearing the recognisable masks much akin to the headwear worn by Mexican wrestlers. These aren’t to intimidate opponents like in ‘Lucha libre’, but to eliminate as many distractions to the horse as possible. These blinkers narrow the focus of the horse to straight ahead, and therefore, it performs only on its own efforts and not to that of its peers to the right and left.

What I’ve learnt most, from both the examples above, and life in the workplace, is to try as hard as possible to put the blinkers on. Just as though I were at Ascot, I try to win my own race, being better today than I was yesterday, and most importantly to realise that happiness is my version of happiness.

Comparing that with others’ is toxic.

Despite competition, if I am being the best I can be, and I’m having a great time doing so, then in my opinion I have already won. And not many people can say that.

ILLUSTRATION: SIMON SCARSBROOK

Guest contributor Joseph Mills advises student actuaries to follow their own path – regardless of what others may be doing

THE ACTUARY • April 2017 www.theactuary.com

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BY NYLFIA

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Try your hand at our April crossword, and give your brain some extra exercise in your coffee break

Across 8

Flower draws summer bird on impulse (8)

9 Lack of interest displayed by article your old secretary presented firstly in reverse (6)

10 Trouble following idiot’s attack (6) 11 Uncovered sperm vial tampered with a long time ago (8)

12 Notice connection when right next to…. (6) 13 …..English fellow able to speak perfectly about waste (8)

15 Small body’s action when shares crash, say (4) 17 Blushing, like Arab? (7) 19 Accountant consumed lager (head lowered)

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Strained party reporter (8) Liberal cringing when beheaded (6) Written laws test us at translation (8)

for tributes (8)

Down Waited for work in the home (6)

2 Musical state (8) 3 Luxury from no money? Everyone left taken in (8)

enthusiastically (7)

22 Poacher’s quest – a bulging net? (4)

crashed plane (8)

Visible damage following Donald’s heart racing (6)

31 No idea about tribe (6) 32 Europe has records internally, that is,

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4 Anchor off real GNP (7)

Counting cups Mensa puzzle 677

5 Duty if and only if following sailor (6) 6 Sweet port with gold stopper? (6) 7 Flying metal shards have ruptured leads on 14 16 18 20

Six-footer with half learned part (4) Guitarist? Sting? (4) Silk won’t accept bung? Not second class (8) Exhausted totally, everything considered (3,2,3)

21 Have a mental image of English face (8) 23 Referees take chances with soldiers (7) 25 Secure home following gratitude from old boy (6)

26 Lowlife with brown cane…. (6) 28 …complains less at doctor (6)

Quote of the month Mensa puzzle 678

www.mensa.org.uk Rearrange the words to form a quote. What is it?

A factory recycles cups for use in its canteen.

Eight used cups are needed to make each new cup.

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If there are 778 used cups, how many new cups can possibly be made in total?

ALONE AND AND DIES DONE DONE FOR FOR HAVE HAVE IMMORTAL IS OTHERS OURSELVES REMAINS THE US; WE WE WHAT WHAT WITH WORLD FOR PUZZLES SOLUTIONS Answers and more can be found online.

Please go to www.theactuary.com/puzzles

April 2017 • THE ACTUARY 35 www.theactuary.com

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03/04/2017 16:07

SOCIETY NEWS

Steamy pub quiz

By Yuming Mei and Antri Theodosiou A chocolate seller’s cart at the Chelsea Physic Garden

ENJOYABLE EVENTS WITH BELLS ON

By Lesley Dumbreck The end of 2016 was a busy time for the Other Half Club, a social club for the wives and partners of actuaries. We held a well-attended dinner at Café du Marché, Charterhouse Square, London and organised two daytime events.

We made a return visit to the Chelsea Physic Garden, founded in 1673 for training apprentices in the use of medicinal plants, followed by a leisurely lunch at their Tangerine Dream Café. Sir Hans Sloane, a wealthy doctor, became its main benefactor when he leased the site to the Apothecaries for £5 per annum in perpetuity. He introduced chocolate to England from Jamaica, and it was made and sold by the Apothecaries, initially as a medicine. A reproduction of a street cart used for selling drinking chocolate is shown above.

Our second event was a visit to Angels Costumes, based in Hendon.

They have dressed stars of stage and screen since 1840. Their ‘Behind the Seams’ tour showcases their extensive collection of a million items, stored on eight miles of rails. They have supplied costumes to Oscar and BAFTA winners and we saw these and costumes from recent television series, including Downton Abbey.

In 2017 we have a visit planned to Dennis Severs’ House in Folgate Street, Spitalfields, and an eagerly anticipated tour, with supper, at the Whitechapel Bell Foundry. This is thought to be Britain’s oldest manufacturing company, established in 1570.

New members are always welcome.

If you feel you would like to join us, please contact me or Lesley Birse at: theotherhalfclub@gmail.com We would be delighted to hear from you if you have any newsworthy items for these pages. Contact Yvonne Wan at social@theactuary.com

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This year’s SIAS Pub Quiz took place at Steam Wine Bar on 19 January. Over 130 actuaries packed out the venue to eat and be merry… and answer a few questions along the way. Steam Bar did a great job to keep the tables well stocked up with food and drink throughout the night.

The tradition of creative and catchy team names continued this year. The recent political situation had clearly influenced the names of some teams, and ‘We’re going to build a model and make Mexico pay for it’ was the eventual winner of the coveted Best Team Name Award.

Other honourable mentions go to: ‘My drinking team has a trivia problem’, ‘Education is important but pub quizzes are importanter’, and the pun-based: ‘Good Reigations’, ‘Legally & Generally Blonde’, and ‘Houston Casual Tea Company’.

The questions were interesting, covering a very diverse range of topics and containing many 2016 references. However, for some reason, most questions we recall are from either the food or geography categories; for example: “What is the biggest Mediterranean island?” and “In n which

borough of London is Tower Bridge?” – neither of which was answered successfully by our team. We did manage to get “Which building’s address is at 30 St Mary Axe?”, which is, of course, the Gherkin, a building of great architecture. Food questions such as “Which country is the biggest wine producer in Europe?” and “Which is the UK’s favourite takeaway – Indian or fish and chips?” were also flummoxing. The obvious answers of France and Indian were both wrong, apparently.

Who would have thought fish and chips would beat an Indian takeaway and that Italy produces more wine than France?

After a tough night, only one team, ‘Craig is Busy’, managed to become the well-deserved champion, and team members received wine and chocolates. The wooden spoon went to ‘The Underdogs’. But it’s not about winning, it’s about meeting and connecting with fellow actuaries, and judging by the atmosphere around the room I believe everyone succeeded in that. Many thanks to all who came and to Steam Wine Bar for an excellent quiz. See you all next year!

CHOCOLATE HEAVEN

By Holly Copley The Worshipful Company of Actuaries held a ‘Chocolate actuaries’ event on 29 November, another chance to share in the Master’s passions. So ensued an evening of fine chocolate, accompanied by well-matched wines.

The Master’s favourite chocolatier, William Curley, talked through the chocolatemaking process from bean-tobar. Cocoa pods and cocoa beans were passed around to tales of the Aztec King Montezuma drinking 50 cacao drinks a day. However, times have moved on and, unlike the Aztec’s rules, ladies are now permitted to participate in the enjoyment of cocoa products!

The tastings progressed from cocoa nibs through to various chocolate blends created by William Curley’s preferred bean-to-bar artisan, Amedei, noting how the species

off cacao tree and growing location affect the taste characteristics of the end product. William explained how certain events had changed the course of chocolate, leading to the product loved today – for example, Fry developing the first ever ‘bar’ of chocolate and Lindt’s conching process.

Onto the live action and William demonstrated the creation of two flavoured ganaches – a fresh cream and mint creation and a richer, dairy-free variety of dark chocolate and raspberry purée.

He then progressed onto the star creation – a perfect sea-salt caramel.

Attendees enjoyed a chocolate buffet of William Curley’s chocolates, including

ii d li t pairings suchh as delicate juniper and lavender, subtle heather and honey, as well as an unusual rosemary and olive oil creation. William finished with an insight into his career, starting with an apprenticeship at Gleneagles Hotel, right up to his numerous accolades, including four-times winner of ‘Britain’s Best Chocolatier by The Academy of Chocolate’ and ‘Master of Culinary Arts’.

William Curley’s chocolates can be purchased at Harrods.

THE ACTUARY • April 2017 www.theactuary.com

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04/04/2017 08:27

YORKSHIRE ACTUARIAL SOCIETY GOES BIG

What’s ahead in Zimbabwe

By Sam L Mawoyo It has been a while since we have given you an update on the Actuarial Society of Zimbabwe.

In November 2016, David Mureriwa led a talk on the case of Zimbabwe operating with only six resident qualified consulting actuaries. The talk discussed what has led to this situation and its implications for the profession. The talk is hosted on our YouTube channel “Actuarial Society of Zimbabwe”.

The Society is also preparing for an eventful 2017. The main highlights are: the elective AGM, the 2017 Convention and the expected publication of the Commission of Inquiry exercise. In March the AGM will have taken place. This meeting will also involve the

election of the governing committee members.

The Actuarial Society of Zimbabwe 2017 Convention will be held at the Meikles Hotel in Harare on the 8-9 June. The theme of the convention is ‘Building resilience in uncertainty’.

The Commission of Inquiry, which was set up by president Robert Mugabe to look into the conversion of insurance and pensions values from Zimbabwe dollars to US dollars, was concluded on 31 December 2016. We expect the report to be published during 2017.

If you would like to participate or contribute to any of the events of the society, or for further details, email: administrator@ zimactuarialsociety.org.zw.

SAS tackles challenges ahead The Students’ Actuarial Society (SAS) at Heriot-Watt University welcomed several distinguished guests to its annual Actuarial Conference on 9 February. The conference is one of the key events in the calendar, attracting students and professionals at all stages of their careers. This year’s event was attended by over 200 participants, including working actuaries, lecturers and students.

Entitled ‘Discovering Potential in a Changing World’, it addressed current issues that pose both challenges and opportunities to the actuarial industry, with topics on Solvency II, the insurance of terrorism risk, risk management in climate change and pensions.

First speaker, Craig Turnbull, (Standard Life), presented on insurance investment strategy.

He highlighted a few interesting episodes in the history of actuarial thought and elaborated on illiquidity, asset credit risk and the impact of Brexit on Solvency II. This was followed by Dr Gordon Woo (RMS),

on quantitative terrorism insurance risk modelling and an analysis of the largest historic terrorist attack event – 9/11. He elaborated on cyber security and its links to terrorism risk.

Our third talk, Sandy Trust (Grant Thornton) opened with a video of ‘Breathing Earth’, highlighting the principal climate change issues, and explored why risk management fails, with examples in slavery, mass immigration and consumer choice.

Lastly, ‘The Rising Profile of Pensions’ was presented by Melanie Stephenson and Louise Lau from Barnett Waddingham. They opened with “Are People Saving Enough For Retirement?”. They followed with current issues within the pensions industry: auto-enrolment, longevity improvements, state pension reform and the impact of Brexit and Trump on equity returns and gilt yields.

We would like to thank all those who helped to organise, present, and attend the conference, making it a such great success.

By Tess Joyce As one of the most active regional communities, the Yorkshire Actuarial Society (YAS) always holds an excellent programme of one-hour technical and professional events each year, as well as an annual dinner, all of which are well attended.

This year, in addition to its normal programme, YAS is having two ‘Big Events’, each lasting three hours, in York and Leeds.

The York event took place on 1 March and the Leeds one will take place in May. Each consists of two talks, a refreshment break, a third talk and finishes with a drinks reception to allow the attendees to network.

Malcolm Slee, secretary of YAS, commented: “Our society has over 400 active members, and the new £5 subsidy provided by the IFoA has provided the funds to enable us to develop these fantastic mini-conferences, enhancing our existing programme considerably. We have members throughout Yorkshire, not just York and Leeds, and a three-hour event is a welcome addition when travelling for a one-hour CPD session would just not be viable.”

If you would be interested in details, or in organising a similar event for your region, contact: malcolm.slee@aviva.com, or to find out about regional communities and the new £5 subsidy, visit: www.actuaries.org. uk/get-involved/regional-activity

Weddings

Births Ellen and Mark Gorman, of EY and Aviva respectively, are delighted to announce that their second child, Sarah Naomi Gorman, was born on 25 February 2017.

Congratulations to Alice PembertonBarlow and her husband Paul who welcomed their son Albert Frederick Barlow on 9 February.

He was a very healthy 9lb 12oz!

Congratulations to the IFoA’s Alison Jiggins who married Daniel Hooker on 30 March.

All the team on The Actuary wishes them every happiness for the future.

April 2017 • THE ACTUARY 37 www.theactuary.com

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04/04/2017 08:27

Risk & Investment Opportunities HFG have a number of risk and investment opportunities available in both London and Manchester. Salaries range from £50k - £120k.

Senior Risk Manager Head of Risk Quantitative Risk Modeller

Investment Analyst Investment Manager Investment Consultant

Risk Governance Manager Market Risk Manager Associate Director ALM

For further details, contact Antony Williams on 0207 220 1106 or send your CV to antony.williams@hfg.co.uk

www.hfg.co.uk

Making moves in insurance recruitment

ACTUARY OF THE FUTURE

KIRSTY MOFFAT Employer and area of work? Hymans Robertson, Glasgow office, investment

How do you relax away from the office?

Prosecco, pizza and a 1,000-piece jigsaw!

judgment. Pepe got excited and galloped away extremely fast and wouldn’t stop. Scary.

How would your best friend describe you?

Talkative, stubborn, friendly, amusing

What is the funniest thing that has happened to you recently? We had a bake-off at work last year and I practised so hard making my peanut butter blondies the whole weekend prior to the competition with my Mum, but still came last and got the wooden spoon!

If you could go back in history, who would you like to meet? I’d love to go back in time and meet Elvis (in his hey day!) – he was one of a kind and it would be great to spend the day finding out exactly who he was and what drove him. I’d also love for him to sing to me!

Alternative career choice? I’ve been in some plays and in a film (The Inbetweeners), so I’d definitely be a big-time actress if the actuarial profession hadn’t’t grabbed me melight! away from the limelight!

If there was a movie produced about your life, who would play you, and why? Whoopi Goldberg – she would capture my spirit perfectly! I love her in Siste Sister Act.

What motivates you? Winning (unfortunately, I am annoyingly competitive) What would be your personal motto? #onit Name five dream companions to be stuck on a desert island with? The Body Coach (to keep me fit), Ryan Gosling (to look at and to dance with), Kevin Bridges (to entertain me), Karl Pilkington (to educate me) and Busy Philipps (for some girl chat).

What’s your most ‘actuarial’ habit?

My obsession with every kind of puzzle, and maintaining several spreadsheets that document my life.

Favourite Excel function? RAND – who doesn’t love a random number?!

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What song best describes your work ethic?? She Works Hard For The Money – Donna Summer Greatest risk youu have ever taken? On holiday in Cuba recently I rode a pe, horse called Pepe, er against my better

If you could be anyone else, who would it be? I’m quite happ happy being myself but if I had to choose, it M would be Michelle Obama – I love her passion and drive. She seems like a great laugh and is a ro model. She’s also got great arms, so genuine role I think she must lead a very healthy lifestyle!

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

THE ACTUARY • April 2017 www.theactuary.com

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04/04/2017 09:15

www.theactuaryjobs.com

Jobs

To advertise your vacancies in the magazine and online please contact: Emmanuel Nettey +44 (0) 20 7880 6234 or emmanuel.nettey@redactive.co.uk

Actuarial Vacancies HFG’s consultants specialise in matching you to the right role at the right Ǥ ǡ Ƥ out what opportunities are available.

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

hfginsurancerec

HFG Insurance Recruitment

General Insurance Vacancies ƥ

Head of General Insurance

New Lloyd’s start up is looking for a COO to work closely with the CEO and CUO and drive their growth forward. This exciting start up is looking for a dynamic and forward thinking COO to help lead their business. The right person should thrive in an exhilarating and ever changing environment.

A Boutique insurer is looking for a strong leader to run their general insurance division. This role will require someone with the gravitas to work closely with external stakeholders as well as growing the business. Candidates from any general insurance background will be considered.

£130k - £160k basic, London

£120k - £140k basic, London

William Gallimore

William Gallimore

PQ Actuarial Analyst

PQ Commercial Pricing Analyst

I’m currently working with a UK general insurer who are looking for a couple of actuaries early on in their career. The role will give you highlevel exposure across the whole business, including daily interaction with C-Suite individuals. The ideal candidate would have GI actuarial experience or a strong background in the life or pensions markets.

One of the world’s largest insurers have an opportunity for a strong pricing actuary to join a new part of their pricing division. The successful applicant will be responsible for providing analytical pricing support for their complex commercial risks. The ideal candidate will present strong SAS (essential) and R/Python (desirable) skills.

£competitive package, Surrey

£competitive package, London

David Curran

David Curran

Casualty Pricing - Lloyd's

Reserving Analyst - Lloyd's

This leading P&C, Lloyd’s and London insurance client are looking to hire a number two to the lead casualty pricing actuary. Previous pricing experience from any lines will be considered and preference will be given to extremely strong communicators. This global insurer ơ Ǥ

Our client is looking for two junior GI actuaries to join a leading Lloyd’s actuarial reserving team. This role would suit junior candidates with ǡ Ƥ insurer, or away from consulting. They require a good communicator.

£40k - £65k basic, London

£35k - £55k, London

Paul Fox

Paul Fox

Igloo and Remetrica Contractors (contract position)

Reserving TPs (contract position)

We are currently representing a number of clients that are looking for strong software developers to help support the IMAP and deliver submissions. S2 experience would be desirable but is not a must. To be considered you must have either Igloo or Remetrica experience.

This leading LMKT insurer is looking for a strong reserving actuary with a wealth of Lloyd’s / LMK experience. You will be responsible for developing the technical provisions under S2 and taking responsibility for the reserving process. You must be comfortable being challenged, Ƥ Ǥ

up to £1000 per day, South West

£800 - £1000 per day, London

William Gallimore Director: GI Perm +44 (0) 207 337 8826 william@hfg.co.uk

+44 (0) 207 337 8800

Rupa Pithiya

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

David Curran GI Perm +44 (0) 207 337 1201 david@hfg.co.uk

Rupa Pithiya

Rupa Pithiya GI S2/Interim +44 (0) 207 337 1200 rupa@hfg.co.uk

Making moves in insurance recruitment April 2017 • THE ACTUARY 39 www.theactuary.com

ACT Rec Apr17.indd 39

03/04/2017 15:49

APPOINTMENTS PENSIONS & INVESTMENTS www.theactuaryjobs.com NON-LIFE LIFE & HEALTH

ERM ACTUARY London, £70k-£90k + bonus + benefits

A growing firm within the (re)insurance market are currently seeking a Chief Actuary to develop their pricing and analytics capabilities. The role will be responsible for growing their actuarial function from scratch, focusing on pricing, reserving and capital modelling. The role will support both their direct and treaty speciality lines, including marine and aviation. Candidates will be fully qualified and have a wealth of reinsurance pricing experience, ideally with exposure to marine and aviation classes. In addition, reserving and capital experience will be highly advantageous.

A leading global reinsurer are currently seeking a nearly/newly qualified actuary to join their risk management function. The role will be responsible for the development and implementation of their ERM framework, including the design/build of their risk processes and tools. Candidates will be nearly/newly qualified actuaries and have strong capital modelling experience, ideally from within the Lloyd's/London or consultancy market. Previous risk management experience would be seen as highly beneficial, however is not a requirement for the role.

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

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

EXCLUSIVE - PRICING & RESERVING MANAGER

EXCLUSIVE - PRICING ACTUARY - LONDON MARKET

South East, up to £85k + bonus + benefits

London, up to £100k + bonus + benefits

A leading UK personal lines insurer are currently seeking a qualified actuary to lead across technical pricing and reserving. The role will be responsible for managing a team of 6, focusing on their motor and home lines of business.

Candidates will qualified actuaries with up to 2 years PQE - ideally you will have strong reserving experience with some exposure to GLM price modelling.

Personal lines backgrounds are preferred, however commercial/consultancy experience will also be considered.

A top-tier London/Lloyd's market insurer are currently seeking a qualified actuary to lead on pricing across their property and liability lines of business.

The role will report directly into the underwriting division and will also be responsible for managing a small team of actuaries. Candidates will be qualified actuaries and have a wealth of London market pricing experience.

Ideally you will have had exposure to commercial property business lines, however all London market experience will be considered.

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

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

REPORTING ACTUARY - WITH PROFITS TEAM

EXCLUSIVE - SENIOR ACTUARIAL ANALYST

South West, competitive + bonus + benefits

South Coast, up to £65k + benefits

A leading insurer with over £10 billion in assets is looking for a fully qualified Actuary with broad experience within financial services to join their with Profits team. Candidates should be fully qualified and have extensive experience in production and analysis of all regulatory solvency metrics (Peak 1, Peak 2, ICA, Solvency II) and IFRS reporting for with-profits. Management skills are equally important as technical skills in this role as you will be responsible for a team of 4 junior members of the team.

A global market leader is currently seeking a qualified / nearly qualified Actuary with in depth knowledge of IFRS 17 to work with in a team of 40+ risk professionals. Reporting to the Head of Business Analytics, you will have a minimum of 3 years’ experience within the life insurance space. Candidates must be newly qualified or nearly qualified, ideally having used Prophet or SAS in their previous role. An understanding of insurance products sold in Asia and the ability to speak French would be advantageous but not necessary.

Contact: jason.tunney@eamesconsulting.com | 0207 092 3246

Contact: jason.tunney@eamesconsulting.com | 0207 092 3246

NON-LIFE

EXCLUSIVE - CHIEF ACTUARY London, competitive

A prominent global re-insurer are looking for a junior actuarial analyst who will take on a newly created role with responsibility for UK Longevity Swaps. This role would suit a candidate very early in the exams with some commercial experience in the insurance market. You will be expected to support the Account Managers in front of clients, and will require excellent communication skills and a mature, professional and confident presence. Strong Excel/VBA skills are essential, whilst a knowledge of SAS/SQL is desirable.

A leading global consultancy are currently seeking a PQ Life Actuary for their London team. They are interested in candidates with an in-depth knowledge of Economic Capital and Capital Modelling within the Life Assurance market, ideally with some consultancy experience. You will be making strong progress with the actuarial exams and have experience in the life assurance industry and modelling capital projects. You must have a good knowledge of Economic Capital and UK reporting methodologies (e.g. UK GAAP, IFRS, FSA Returns).

Strong Prophet, MoSes, VBA skills are essential.

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

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

LEAD CONSULTING ACTUARY

ASSOCIATE INVESTMENT CONSULTANT

UK Wide, up to £150k + bonus + bens

London/Leeds/Edinburgh, up to £55k + bonus + benefits

A major brand in the employee benefits consulting market is seeking to hire a Lead Consulting Actuary to be a focal point for advising their most significant pension clients and securing new business revenue. The hire will be a critical component of the retirement practice, working closely alongside the UK MD as one of the firm’s major stakeholders. The role offers a significant involvement in the strategic initiatives, proposition development and revenue generation for the practice. You will have extensive experience of providing trustee and/or corporate advice to pension clients.

A leading pensions investments consultancy is looking for an Associate Investment Consultant. You will be working with and supporting senior managers in providing investment advice to large pension scheme clients, working on their investment strategies and bespoke servicing needs. You will need to be working towards FIA/FFA OR CFA qualification to be considered and FCA authorised for consultant level. Prior investment consulting to trustee and corporate clients is preferred however associated backgrounds will be considered.

Contact: simon.dodds@eamesconsulting.com | 0207 092 3232

Contact: sinead.canavan@eamesconsulting.com | 0207 092 3211

SENIOR PENSIONS ACTUARY - NICHE CONSULTANCY

FIDUCIARY SALES - ASSET MANAGER

London, £300k + package

London, £200k + package

My client is an innovative corporate pensions advisor focusing on funding, covenant structuring, benefits and investment strategy. The role demands an individual capable of influencing at the highest level of global multinational organisations, with a real desire to drive through innovative solutions.

Key role in maintaining existing client relationships and developing my clients fiduciary management business in the UK market. The successful candidate will have a demonstrable track record in this sector.

PENSIONS & INVESTMENTS

PQ LIFE/CAPITAL ACTUARY London, up to £55k + benefits

London, up to £40k + study support

LIFE & HEALTH

JUNIOR ACTUARIAL ANALYST

Eames listed as the #1 insurance recruitment & search firm in the UK in Recruitment International’s Top 500 Report

Contact: ben.whalley@eamesconsulting.com | 0207 092 3237

Contact: ben.whalley@eamesconsulting.com | 0207 092 3237

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

40

THE ACTUARY • April 2017

www.theactuary.com London | Zurich | Singapore | Hong

ACT Rec Apr17.indd 40

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03/04/2017 15:49

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

Senior Pricing Analyst hƉ ƚŽ άϳϬ͕ϬϬϬ ĂƐĞ ^ĂůĂƌLJ н ŽŶƵƐ Θ ĞŶĞĮƚƐ

ʹ ŝƚLJ ŽĨ >ŽŶĚŽŶ

A growing Retail Insurer based in the City of London are currently looking for a Senior Pricing Analyst to join their highly technical and dynamic pricing team. You will be working very closely with the Head of Pricing and get a large amount of exposure to key decision makers within the business. The ideal candidate will have at least 3 years’ worth of experience of working as a Pricing Analyst across either Motor or Home lines of business. You will need to be a skilled user of SAS, Emblem and/or Radar. They are open to seeing candidates from both an Actuarial and NonActuarial background. ŽŶƚĂĐƚ͗ 'ĂƌLJ͘ ŚĞƌŶΛŝƉƐŐƌŽƵƉ͘ĐŽ͘ƵŬ dĞů͗ нϰϰ ϮϬϳ ϰϴϭ ϴϲϴϲ

Pricing Manager hƉ ƚŽ άϭϭϬ͕ϬϬϬ ĂƐĞ ^ĂůĂƌLJ н ŽŶƵƐ Θ ĞŶĞĮƚƐ

ʹ ŝƚLJ ŽĨ >ŽŶĚŽŶ

I am currently working with a London Market Insurer who are looking to recruit a dynamic Pricing Manager, who will ďĞ ǁŽƌŬŝŶŐ ĐůŽƐĞůLJ ǁŝƚŚ ƚŚĞ ,ĞĂĚ ŽĨ WƌŝĐŝŶŐ ƚŽ ĞŵďĞĚ ǁŝƚŚ ƚŚĞ ǁŝĚĞƌ hŶĚĞƌǁƌŝƟŶŐ ĚĞƉĂƌƚŵĞŶƚ͘ dŚĞƌĞ ǁŝůů ďĞ Ă ĨŽĐƵƐ ŽŶ ƚĞĐŚŶŝĐĂů ƉƌŝĐŝŶŐ ĂŶĚ ĂŶĂůLJƐŝƐ ƉƌŽĐĞƐƐ ĨŽƌ ƚŚĞ ƵŶĚĞƌǁƌŝƟŶŐ ĨƵŶĐƟŽŶ ĂŶĚ ĂůƐŽ ďĞ ƉĂƌƚ ŽĨ ƚŚĞ ĐŽŵƉĂŶLJ͛Ɛ ƐƚƌĂƚĞŐŝĐ ƚŚŝŶŬŝŶŐ͘ dŚĞ ŝĚĞĂů ĐĂŶĚŝĚĂƚĞ ǁŝůů ďĞ Ă ƋƵĂůŝĮĞĚ ĐƚƵĂƌLJ ĂŶĚ ŚĂǀĞ ϯ LJĞĂƌƐ͛ ǁŽƌƚŚ ŽĨ ĞdžƉĞƌŝĞŶĐĞ ŝŶ Ă WƌŝĐŝŶŐ ƌŽůĞ Ăƚ Ă Lloyd’s/London Market Insurer. Previous management experience would be an advantage, as the role includes direct ƌĞƉŽƌƚƐ͕ ĂŶĚ ĂůƐŽ ŬŶŽǁůĞĚŐĞ ŽĨ DŝĐƌŽƐŽŌ džĐĞů͕ ĐĐĞƐƐ͕ ^Y> ĂŶĚ ΛZŝƐŬ ŝƐ Ă ŬĞLJ ƌĞƋƵŝƌĞŵĞŶƚ͘ ŽŶƚĂĐƚ͗ ĚĂŵ͘ ĞůůŝƐΛŝƉƐŐƌŽƵƉ͘ĐŽ͘ƵŬ dĞů͗ нϰϰ ϮϬϳ ϰϴϭ ϴϲϴϲ

^ĞŶŝŽƌ džƉŽƐƵƌĞ DĂŶĂŐĞŵĞŶƚ ŶĂůLJƐƚ hƉ ƚŽ άϳϬ͕ϬϬϬ ĂƐĞ ^ĂůĂƌLJ н ŽŶƵƐ Θ ĞŶĞĮƚƐ

ʹ ŝƚLJ ŽĨ >ŽŶĚŽŶ

WƌĞƐĞŶƚůLJ͕ / Ăŵ ǁŽƌŬŝŶŐ ǁŝƚŚ ĂŶ /ŶƚĞƌŶĂƟŽŶĂů /ŶƐƵƌĞƌ ǁŚŽ ĂƌĞ ůŽŽŬŝŶŐ ĨŽƌ Ă ^ĞŶŝŽƌ džƉŽƐƵƌĞ DĂŶĂŐĞŵĞŶƚ ŶĂůLJƐƚ͘ This is a Group level role and you will be working across UK, EU and Asia business lines. They want a technically strong candidate who has over 4 years of experience working with at least one of the Catastrophe Models. On top of ƚŚŝƐ ƚŚĞLJ ǁŝůů ƌĞƋƵŝƌĞ ƚŚĞŵ ƚŽ ŚĂǀĞ ĞdžĐĞůůĞŶƚ ĐŽŵŵƵŶŝĐĂƟŽŶ ƐŬŝůůƐ͕ ĚƵĞ ƚŽ ƚŚĞ ĨĂĐƚ ƚŚĂƚ ƚŚŝƐ ƌŽůĞ ŝƐ ǀĞƌLJ ĨƌŽŶƚ ĨĂĐŝŶŐ and there will be a lot of exposure to Underwriters and wider Stakeholders. Experience of using RMS or AIR is a ƌĞƋƵŝƌĞŵĞŶƚ ĂŶĚ Ă ŐŽŽĚ ǁŽƌŬŝŶŐ ŬŶŽǁůĞĚŐĞ ŽĨ s ͕ ^Y> ĂŶĚ '/^ ǁŽƵůĚ ďĞ ĂĚǀĂŶƚĂŐĞŽƵƐ͘ ŽŶƚĂĐƚ͗ 'ĂƌLJ͘ ŚĞƌŶΛŝƉƐŐƌŽƵƉ͘ĐŽ͘ƵŬ dĞů͗ нϰϰ ϮϬϳ ϰϴϭ ϴϲϴϲ

ŚŝĞĨ ĐƚƵĂƌLJ hƉ ƚŽ άϭϴϬ͕ ϬϬϬ ĂƐĞ ^ĂůĂƌLJ н ŽŶƵƐ Θ ĞŶĞĮƚƐ

ʹ ŝƚLJ ŽĨ >ŽŶĚŽŶ

/ Ăŵ ĐƵƌƌĞŶƚůLJ ƉƵƫŶŐ Ă ƐŚŽƌƚůŝƐƚ ƚŽŐĞƚŚĞƌ ŽĨ ĐĂŶĚŝĚĂƚĞƐ ĨŽƌ Ă ƐĞŶŝŽƌ ĂĐƚƵĂƌLJ ƉŽƐŝƟŽŶ͘ DLJ ĐůŝĞŶƚ ŝƐ ůŽŽŬŝŶŐ ĨŽƌ ĂŶ individual with an extensive London Market/Company and technical actuarial background and leadership skills, especially within pricing. This role will be across the wider business and will give unparalleled commercial exposure. ŽŶƚĂĐƚ͗ ĚĂŵ͘ ĞůůŝƐΛŝƉƐŐƌŽƵƉ͘ĐŽ͘ƵŬ dĞů͗ нϰϰ ϮϬϳ ϰϴϭ ϴϲϴϲ

>ŽŶĚŽŶ KĸĐĞ͗ IPS Group, Bevis Marks House, 24 Bevis Marks, London EC3A 7JB dĞůĞƉŚŽŶĞ͗ +44 207 481 8111 ŵĂŝů͗ ĂĐƚƵĂƌŝĂůΛŝƉƐŐƌŽƵƉ͘ĐŽ͘ƵŬ tĞďƐŝƚĞ͗ ŚƩƉ͗ͬ​ͬǁǁǁ͘ŝƉƐŐƌŽƵƉ͘ĐŽ͘ƵŬ dǁŝƩĞƌ ͗ Λ/W^'ƌŽƵƉh< Linkedin: IPS Group ACT Rec Apr17.indd 41

April 2017 • THE ACTUARY 41 www.theactuary.com

03/04/2017 15:49

APPOINTMENTS www.theactuaryjobs.com

plc

Join us!

-R *IFVYEV] <E½RMX] ¾SEXIH SR the London stock market â&#x20AC;&#x201C; the only listed UK focused pensions consulting group. ;I LEZI I\GMXMRK TPERW XS HMWVYTX XLI 9/ TIRWMSRW QEVOIX ERH EVI PSSOMRK JSV TIRWMSRW TVSJIWWMSREPW EX EPP PIZIPW XS NSMR SYV IQTPS]IIW [SVOMRK SR E [MHI VERKI SJ GPMIRXW MRGPYHMRK *87) W

8LEX´W [LIVI ]SY GSQI MR ;I [SYPH PSZI XS LIEV JVSQ IRXLYWMEWXMG ERH HVMZIR MRHMZMHYEPW MRXIVIWXIH MR ½RHMRK SYX QSVI EFSYX XLI STTSVXYRMXMIW [I LEZI XS KVS[ ]SYV GEVIIV

We offer a competitive package, and have six locations across the UK (Reading, Leeds, Stirling, Belfast, London and Manchester).

-J ]SY [SYPH PMOI XS ½RH SYX more please send your CV to \E½RMX]LV$\E½RMX] GSQ

[[[ \E½RMX] GSQ <E½RMX] TPG ERH <E½RMX] 'SRWYPXMRK 0MQMXIH VIKMWXIVIH MR )RKPERH ERH ;EPIW EX 4LSIRM\ ,SYWI 7XEXMSR ,MPP 6IEHMRK 6( 2& YRHIV GSQTER] RYQFIVW ERH VIWTIGXMZIP] <E½RMX] 'SRWYPXMRK 0MQMXIH MW EYXLSVMWIH ERH VIKYPEXIH F] XLI *MRERGMEP 'SRHYGX %YXLSVMX] 42

THE ACTUARY â&#x20AC;¢ April 2017 www.theactuary.com

ACT Rec Apr17.indd 42

03/04/2017 15:49

Life, Investment & Pensions Pension Consultant

Financial Planning & Strategy Actuary

Â&#x17D;Â&#x2021;Â&#x192;Â&#x2020;Â&#x2039;Â?Â&#x2030; Â&#x2019;Â&#x2021;Â?Â&#x2022;Â&#x2039;Â&#x2018;Â?Â&#x2022; Â&#x192;Â?Â&#x2020; Â&#x2039;Â?Â&#x2DC;Â&#x2021;Â&#x2022;Â&#x2013;Â?Â&#x2021;Â?Â&#x2013; Â&#x2026;Â&#x2018;Â?Â&#x2022;Â&#x2014;Â&#x17D;Â&#x2013;Â&#x192;Â?Â&#x2026;Â&#x203A; Â?Â&#x2021;Â&#x2021;Â&#x2020; Â&#x192; Â?Â&#x2021;Â&#x192;Â&#x201D;Â&#x17D;Â&#x203A; Č&#x20AC; Â?Â&#x2021;Â&#x2122;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; Â&#x152;Â&#x2018;Â&#x2039;Â? Â&#x2013;Â&#x160;Â&#x2021;Â&#x2039;Â&#x201D; Â&#x192;Â?Â&#x2026;Â&#x160;Â&#x2021;Â&#x2022;Â&#x2013;Â&#x2021;Â&#x201D; Â&#x2018;ĆĽÂ&#x2026;Â&#x2021;Ǥ Â&#x160;Â&#x2021; Â&#x201D;Â&#x2018;Â&#x17D;Â&#x2021; Â&#x2039;Â?Â&#x2DC;Â&#x2018;Â&#x17D;Â&#x2DC;Â&#x2021;Â&#x2022; Â&#x2122;Â&#x2018;Â&#x201D;Â?Â&#x2039;Â?Â&#x2030; Â&#x192;Â&#x2022; Â&#x2019;Â&#x192;Â&#x201D;Â&#x2013; Â&#x2018;Â&#x2C6; Â&#x192;Â? integrated funding and investment team to support corporate / scheme actuaries with a wide range of clients. They are looking for switched on individuals with a background in pension consulting. Will consider part time applicants.

Â&#x17D;Â&#x2021;Â&#x192;Â&#x2020;Â&#x2039;Â?Â&#x2030; Â&#x2039;Â?Â&#x2022;Â&#x2014;Â&#x201D;Â&#x2021;Â&#x201D; Â&#x2022;Â&#x2021;Â&#x2021;Â? 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&#x2013;Â&#x2018; Â&#x152;Â&#x2018;Â&#x2039;Â? Â&#x2013;Â&#x160;Â&#x2021;Â&#x2039;Â&#x201D; ƤÂ?Â&#x192;Â?Â&#x2026;Â&#x2039;Â&#x192;Â&#x17D; Â&#x2019;Â&#x17D;Â&#x192;Â?Â?Â&#x2039;Â?Â&#x2030; Â&#x192;Â?Â&#x2020; strategy team. The purpose of the role is to liaise with varying departments Â&#x2013;Â&#x2018; Â&#x2021;Â?Â&#x2022;Â&#x2014;Â&#x201D;Â&#x2021; ƤÂ?Â&#x192;Â?Â&#x2026;Â&#x2039;Â&#x192;Â&#x17D; Â&#x2039;Â?Â&#x2019;Â&#x17D;Â&#x2039;Â&#x2026;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x2022; Â&#x2018;Â&#x2C6; Â&#x2022;Â&#x2013;Â&#x201D;Â&#x192;Â&#x2013;Â&#x2021;Â&#x2030;Â&#x2039;Â&#x2026; Â&#x2020;Â&#x2021;Â&#x2026;Â&#x2039;Â&#x2022;Â&#x2039;Â&#x2018;Â?Â&#x2022; Â&#x192;Â&#x201D;Â&#x2021; Â&#x2C6;Â&#x2014;Â&#x17D;Â&#x17D;Â&#x203A; Â&#x192;Â&#x2022;Â&#x2022;Â&#x2021;Â&#x2022;Â&#x2022;Â&#x2021;Â&#x2020; Â&#x192;Â?Â&#x2020; Â&#x2014;Â?Â&#x2020;Â&#x2021;Â&#x201D;Â&#x2022;Â&#x2013;Â&#x2018;Â&#x2018;Â&#x2020;Ǥ Â&#x160;Â&#x2021; Â&#x2039;Â&#x2020;Â&#x2021;Â&#x192;Â&#x17D; Â&#x2026;Â&#x192;Â?Â&#x2020;Â&#x2039;Â&#x2020;Â&#x192;Â&#x2013;Â&#x2021; Â&#x2122;Â&#x2039;Â&#x17D;Â&#x17D; Â&#x2026;Â&#x2018;Â?Â&#x2021; Â&#x2C6;Â&#x201D;Â&#x2018;Â? Â&#x192; 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&#x201E;Â&#x192;Â&#x2026;Â?Â&#x2030;Â&#x201D;Â&#x2018;Â&#x2014;Â?Â&#x2020;ÇĄ with experience gained in either a consultancy, direct insurer or reinsurer.

ÂŁ45k - ÂŁ55k basic, Manchester

ÂŁ85k - ÂŁ120k basic, London

Abby Tempest

Abby Tempest

Pricing Analyst (stop studier)

Director of Corporate Actuarial

A leading UK insurer are looking to speak with actuarial students from a pricing background who have stopped studying but are still keen to pursue a career within insurance pricing. This diverse, exciting role is a great mixture between analytical work and communicating with internal and external teams.

Â&#x2122;Â&#x2021;Â&#x17D;Â&#x17D;ÇŚÂ?Â?Â&#x2018;Â&#x2122;Â? Â&#x201D;Â&#x2021;Â&#x2039;Â?Â&#x2022;Â&#x2014;Â&#x201D;Â&#x2021;Â&#x201D; 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; Â&#x201D;Â&#x2021;Â&#x2019;Â&#x2018;Â&#x201D;Â&#x2013;Â&#x2039;Â?Â&#x2030; Â&#x192;Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x203A; Â&#x2013;Â&#x2018; Â&#x17D;Â&#x2021;Â&#x192;Â&#x2020; Â&#x192; Â&#x2022;Â?Â&#x192;Â&#x17D;Â&#x17D; Â&#x2013;Â&#x2021;Â&#x192;Â? Â&#x2039;Â? Â&#x2013;Â&#x160;Â&#x2021;Â&#x2039;Â&#x201D; Â&#x2018;Â?Â&#x2020;Â&#x2018;Â? Â&#x2018;ĆĽÂ&#x2026;Â&#x2021;Ǥ Â&#x160;Â&#x2021; Â&#x2022;Â&#x2014;Â&#x2026;Â&#x2026;Â&#x2021;Â&#x2022;Â&#x2022;Â&#x2C6;Â&#x2014;Â&#x17D; Â&#x2039;Â?Â&#x2020;Â&#x2039;Â&#x2DC;Â&#x2039;Â&#x2020;Â&#x2014;Â&#x192;Â&#x17D; Â&#x2122;Â&#x2039;Â&#x17D;Â&#x17D; Â&#x201E;Â&#x2021; Â&#x201D;Â&#x2021;Â&#x2022;Â&#x2019;Â&#x2018;Â?Â&#x2022;Â&#x2039;Â&#x201E;Â&#x17D;Â&#x2021; Â&#x2C6;Â&#x2018;Â&#x201D; Â&#x2013;Â&#x160;Â&#x2021; Â?Â&#x192;Â?Â&#x192;Â&#x2030;Â&#x2021;Â?Â&#x2021;Â?Â&#x2013; Â&#x2018;Â&#x2C6; Â&#x2013;Â&#x2021;Â&#x192;Â?Â&#x2122;Â&#x2018;Â&#x201D;Â? ĆŞÂ&#x2018;Â&#x2122; Â&#x192;Â?Â&#x2020; Â&#x2013;Â&#x160;Â&#x2021; Â&#x201D;Â&#x2021;Â&#x2DC;Â&#x2039;Â&#x2021;Â&#x2122; Â&#x2018;Â&#x2C6; Â&#x201D;Â&#x2021;Â&#x2022;Â&#x2014;Â&#x17D;Â&#x2013;Â&#x2022; Â&#x2039;Â? Â&#x201D;Â&#x2021;Â&#x2022;Â&#x2019;Â&#x2021;Â&#x2026;Â&#x2013; Â&#x2018;Â&#x2C6; protection products. They require an individual with experience in protection and Â&#x192; Â&#x2022;Â&#x2018;Â&#x17D;Â&#x2039;Â&#x2020; Â&#x2014;Â?Â&#x2020;Â&#x2021;Â&#x201D;Â&#x2022;Â&#x2013;Â&#x192;Â?Â&#x2020;Â&#x2039;Â?Â&#x2030; Â&#x2018;Â&#x2C6; Â&#x192;Â?Â&#x2020;Č&#x20AC;Â&#x2018;Â&#x201D; 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&#x201D;Â&#x2021;Â&#x201C;Â&#x2014;Â&#x2039;Â&#x201D;Â&#x2021;Â?Â&#x2021;Â?Â&#x2013;Â&#x2022;Ǥ

ÂŁ40k - ÂŁ50k basic, Brighton

ÂŁCompetitive package, London

Abby Tempest

Abby Tempest

Risk Senior Risk Manager

Investment Consultant

A specialist insurer in the Lloydâ&#x20AC;&#x2122;s market is looking to make a senior hire within their Risk Function. Managing a small team reporting directly into the CRO, you will lead the implementation of the risk management framework; develop risk strategy, policies and principles for the business. The jobholder will have accountability for ORSA, Risk Appetite, and Stress & Scenario testing.

HFG have partnered with a leading consultancy to help them source a senior investment consultant to join their Manchester team. Working as the lead consultant for small to medium clients, you will have a proven record advising DB pension schemes and managing your own clients. You should have 8+ yearsâ&#x20AC;&#x2122; Â&#x2021;Â&#x161;Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2039;Â&#x2021;Â?Â&#x2026;Â&#x2021;ÇĄ Â&#x201E;Â&#x2021; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;ƤÂ&#x2021;Â&#x2020; Â&#x192;Â?Â&#x2020; Â&#x2019;Â&#x2018;Â&#x2022;Â&#x2022;Â&#x2021;Â&#x2022;Â&#x2022; Â&#x160;Â&#x2039;Â&#x2030;Â&#x160; Â&#x2013;Â&#x2021;Â&#x2026;Â&#x160;Â?Â&#x2039;Â&#x2026;Â&#x192;Â&#x17D; Â&#x2039;Â?Â&#x2DC;Â&#x2021;Â&#x2022;Â&#x2013;Â?Â&#x2021;Â?Â&#x2013; Â?Â?Â&#x2018;Â&#x2122;Â&#x17D;Â&#x2021;Â&#x2020;Â&#x2030;Â&#x2021;Ǥ

ÂŁ100k - ÂŁ120k, London

ÂŁ70k - ÂŁ80k basic, Manchester

Antony Williams

Antony Williams

Insurance Risk Analyst

Risk & Reinsurance Pricing Actuary

One of the largest insurance providers are looking for an insurance risk analyst to join their team. A newly created role for the business, the client is looking for a strong statistician who can make sense of large data along with statistical modelling. You will have strong statistical and analytical modelling skills.

Experience in life insurance and pensions is desirable.

This growing start up syndicate are looking to hire a hybrid actuary, to bridge the gap between the actuarial and risk teams. You will be keen to explore the risk space, but bring a quantitative approach to your work. This role would ideally suit a consulting actuary with a wide range of general insurance actuarial experience, ideally within the Lloydâ&#x20AC;&#x2122;s market.

ÂŁ40k - ÂŁ55k basic, London

ÂŁ55k - ÂŁ95k, London

Antony Williams

Paul Fox

Data Science & Analytics Global Head of Marketing Analytics

Machine Learning Engineer

This is a client facing position where previous â&#x20AC;&#x153;hands-onâ&#x20AC;? technical (econometrics) and business development experience is essential. In addition, exposure to programmatic, ad-tech and big data technologies is a distinct advantage.

In this role you will work closely with the head of data science to architect, build and deploy systems and tools to be able to develop data science algorithms and deploy into production at scale. You must be able to build and create prototypes for end-to-end analytics solutions, from jobs to expose Python and R algorithms via APIs to be considered.

ÂŁ130k - ÂŁ160k basic, London

ÂŁ50k - ÂŁ70k basic, London

Ahad Shadab

Ahad Shadab

Advanced Analytics Pricing Manager

Global Data Science Analyst

A growing Lloydâ&#x20AC;&#x2122;s syndicate is building a market leading pricing team. This is an exciting opportunity for a highly technical and experienced pricing analyst to take the next step and join their high performing team. Statistical modelling skills, a passion for data science and good communication skills are essential.

An opportunity has arisen with a multi-national specialist insurer. They are looking to take on a capable data analyst with strong coding and visualisation Â&#x2022;Â?Â&#x2039;Â&#x17D;Â&#x17D;Â&#x2022;ÇĄ Â&#x192;Â?Â&#x2020; Â&#x2013;Â&#x160;Â&#x2021; Â&#x192;Â&#x201E;Â&#x2039;Â&#x17D;Â&#x2039;Â&#x2013;Â&#x203A; Â&#x2013;Â&#x2018; Â&#x2122;Â&#x2018;Â&#x201D;Â? Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160; Â&#x17D;Â&#x192;Â&#x201D;Â&#x2030;Â&#x2021; Â&#x2020;Â&#x192;Â&#x2013;Â&#x192; Â&#x2022;Â&#x2021;Â&#x2013;Â&#x2022;Ǥ Â&#x160;Â&#x2039;Â&#x2022; Â&#x2039;Â&#x2022; Â&#x192; Â&#x2030;Â&#x17D;Â&#x2018;Â&#x201E;Â&#x192;Â&#x17D; Â&#x201D;Â&#x2018;Â&#x17D;Â&#x2021; Â&#x2013;Â&#x160;Â&#x192;Â&#x2013; Â&#x2018;ĆĄÂ&#x2021;Â&#x201D;Â&#x2022; exposure to all parts of the business and the freedom to explore innovative methods and technologies.

ÂŁ60k - ÂŁ70k basic, London

ÂŁ40k - ÂŁ50k basic, London

Abby Tempest Life +44 (0) 207 337 8810 abby@hfg.co.uk

Ahad Shadab

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

+44 (0) 207 337 8800 ACT Rec Apr17.indd 43

Ahad Shadab Data Science & Analytics +44 (0) 207 337 1203 ahad.shadab@hfg.co.uk

www.hfg.co.uk

Ahad Shadab

Paul Fox Actuarial +44 (0) 207 220 1103 paul.fox@hfg.co.uk April 2017 â&#x20AC;˘ THE ACTUARY 43 www.theactuary.com

03/04/2017 15:49

APPOINTMENTS www.theactuaryjobs.com

2nd Floor, 32 Cornhill, London, EC3V 3SG | 0207 332 5870 | ActuarialGroup@mansionhouse.co.uk www.mansionhouse.co.uk

PENSION ACTUARIAL CONSULTANT £70,000 + Bens LONDON – LEEDS OR BIRMINGHAM WILL BE CONSIDERED

LIFE ACTUARIAL CONSULTANT £80,000 + Bens LONDON

This is an excellent opportunity to join a forward thinking organisation in a professional team. The role focusses on delivery to a portfolio of clients, with responsibilities for implementing governance framework, identifying risks and managing those risks. Ideally you will have gained 7 years + Pension Actuarial experience, with a broad understanding of pension trusteeship, the ability to demonstrate deep technical understanding of pension legislation and regulations, excellent communication skills and a team player. Ref: 26070

Working for this top consultancy you will use your management skills to lead and deliver on projects to time and on budget, along with the development and performance management of junior staff. You need to have gained your skills within a life insurer or consultancy, have experience of IFRS 4 or 17 and Cashƃow models. A ƃexibility and ability to multi-task is expected and you need to demonstrate that you are able to stay abreast of industry developments and implement change to projects when necessary.

Ref: 26041

ACTUARIAL CAPITAL MODELLING ANALYST £60,000 + Bens LONDON

PRICING ANALYST £50,000 + Bens LONDON

Excellent opportunity for a Part QualiƂed Actuary with around 2/3 years of experience to join a renowned Lloyd’s Insurer. Working in the Capital Modelling team, you will work closely with senior members of the team in assisting with the maintenance and further development of the internal capital models as well as analysing data and outputs. To be considered you must already be working as a GI Actuarial Analyst, with any experience of capital modelling preferred. Those with a reserving or pricing background who can show a real desire to make the move to the Capital space, are also encouraged to apply. You will be making steady progress with your Actuarial exams with a solid Academic track record. You must be a competent user of Excel with experience of Access and Remetrica extremely beneƂcial. Experience of writing Macros in VBA is also highly advantageous. Ref: 25997

A dynamic and growing Insurer are looking for a Pricing Analyst, with around 2 years experience in either motor or home lines, to join their Pricing team. Successful candidate will be playing a crucial part in the development and maintenance of pricing structures, models and performance analysis in support of delivering commercial objectives. Business insight, strong analytical skills and the ability to assist in making commercial recommendations are key. Experience of EMBLEM and Radar are highly desirable, however of particular interest are data extraction and manipulation skills in SAS and SQL. Full Actuarial study support package on offer.

Ref: 25983

For more information please call 0207 3325870 or e-mail ActuarialGroup@mansionhouse.co.uk.

We very much look forward to hearing from you.

Jason Sykes Group Managing Director EA Reg: R1333193 +65 6829 7154 jason@hfg.com.sg

Christina Chua Life Actuarial EA Reg: R1546910 +65 6829 7158 christinac@hfg.com.sg

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

Tong Yu Life Actuarial & Risk +65 6829 7159 tong@hfg.com.sg

APAC Actuarial Assignments ERM Actuary

Senior Pricing Actuary

Due to fast business growth, our client is seeking an ERM actuary with 6+ years of experience in risk management or related functions. The selected candidate would assist in formulating risk policies, implementing risk governance ơ strategies. He or she would also be involved in risk committee presentations, regional ERM projects and the review of M&A transactions in the region.

A multinational life insurer is looking for a chief actuary to lead their local Ǥ ͝ ǯ Ƥ ǡ ơ Ƥ Ǥ Ǧ Ǧƪ team.

MYR $280k - $320k, Kuala Lumpur or Malaysia Christina Chua

$Competitive package, Hong Kong

Motor Pricing Specialist

Consulting Actuary

A dynamic direct insurer seeks an experienced motor pricing actuary for their ƥ Ǥ ǡ Ȁ expertise within the motor portfolio across the SEA region. You should possess 7 years+ of relevant experience. International candidates are welcome to apply.

Ƥ ͠ relevant experience in performing advisory services on product development, valuations, capital, M&A, regulatory changes and pricing. The incumbent should demonstrate strong interpersonal and communicative skills, alongside a good Ǥ Ƥ Ȁ Ƥ Ǥ

$Competitive package, Singapore

$Competitive package, Malaysia

Shuyu Lim

Shuyu Lim

Senior Regional Life Actuarial Reporting Manager

AVP - Life Actuarial Manager

Ƥ Hong Kong and lead the regional actuarial reporting team looking after its APAC local business units. The ideal candidate must have strong actuarial reporting ǡ ơ proactive role in helping to correct and drive the business forward.

HKD $1million basic + bonus, Hong Kong Tong Yu

Ȁ Ƥ at AVP level and be heavily involved in project-based work. Strong Prophet modelling skills and well-rounded life actuarial experience is highly preferred.

EA Licence Number: 14C7034

44

Christina Chua

THB $2.5million + bonus, Thailand

Tong Yu

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

THE ACTUARY • April 2017 www.theactuary.com

ACT Rec Apr17.indd 44

03/04/2017 15:49

Role: Life Senior Manager - Ref: MG1522

Active Vacancies

Location: London | Sector: Life Insurance | Salary: £130,000 + Benefits | Type: Perm An exciting and multi-faceted role has come about for a Life Senior Manager with expertise in Economic Capital to join an established business. You will take on tasks such as managing projects across different areas of Life Insurance, working with multidisciplinary teams, developing and coaching your team, and driving new business. This role offers an opportunity to apply your leadership skills and take real ownership of your career.

Key criteria: Qualified Actuary with Life Insurance background & Economic Capital experience.

We are currently working on numerous Actuarial opportunities for top organisations across the following sectors; Lloyd’s Market, General Insurance, Broker, Strategy Consulting, Reinsurance and Life Insurance. Please contact us for more information on available positions.

Locations with active vacancies UK: London, Kent, Surrey, Manchester, Bristol, Edinburg, Birmingham, Bromley International: Thailand, Indonesia, Malaysia, Vietnam, Australia, Singapore

• • • • • • • • • • • • • • • x x x x x x x

Assistant Pricing Actuary - Ref:MG1512 @ £70,000 Reserving Manager - Ref:MG1507 @ £105,000 Non-Life Senior Manager - Ref:MG1524 @ £150,000 Life Senior Manager - Ref:MG1534 @ £140,000 Senior Pricing Analyst (Projects) - Ref:MG1532 @ £60,000 Senior Home Pricing Analyst - Ref:MG1533 @ £60,000 Senior Reserving Analyst - Ref:MG1536 @ £50,000 Insurance Risk Manager - Ref:MG1521 @ £64,000 Insurance Risk Advisor - Ref:MG1520 @ £79,000 Nearly Qualified Life Actuary - Ref:MG1516 @ £65,000 Life Actuarial Senior Manager - Ref:MG1519 @ £103,000 Investments Senior Manager - Ref:MG1515 @ £115,000 Reserving Senior Analyst - Ref:MG1517 @ £65,000 Non-Life EA (executive advisor) - Ref:MG1510 @ £95,000 Senior Reserving Manager - Ref:NA1504 @ £150,000 Commercial Pricing Analyst - Ref:MG1528 @ Competitive Non-Life Senior Manager - Ref:MG1513 @ £150,000 Risk Review Actuary - Ref: MG1514 @ Competitive With-Profits Actuary - Ref:MG1529 @ £100,000 Capital Modelling Actuary - Ref:MG1502 @£ 80,000 Pricing Analyst - Ref: JJ1501 @ £40,000 Qualified Reserving Manager - Ref: AT1435 @ £110,000

www.hewittstone.com Email: info@hewittstone.com Phone: 0203 773 2321

Associate, Life Insurance Ratings & Enterprise Risk Management Specialist (S&P Global Ratings), London Competitive + Bonus + Benefits The Role: We are currently looking for a credit analyst and risk management specialist to join the Insurance Ratings team in our London office for a unique opportunity to be responsible for both UK life insurance credit ratings and EMEA wide Enterprise Risk Management (ERM) reviews.

You will: • Predominantly be tasked with EMEA wide ERM reviews including a range of technical deep dive reviews of both S&P capital models and insurers’ internal models, covering all aspects of the risks including financial, life and non-life.

• Possess flexibility and adaptability to perform credit rating surveillance on a portfolio of insurance credits predominantly across the U.K., taking responsibility for these ratings as a primary analyst with minimal supervision.

• Attend meetings and interact with senior management of corporations.

• Develop and maintain an understanding of industry trends and issues.

• Actively participate in rating committees across EMEA. The Impact: The individual will demonstrate analytical excellence alongside robust communication skills to make an impact on analytics across the wider ratings team.

The Career Opportunity: This is a visible role in the organization that will involve significant engagement with a variety of internal and external stakeholders.

The Team / The Business: The successful candidate will be part of the Insurance Ratings team, based in London, and will work alongside senior credit analysts and other technical experts.

Your Skills: • Educated to degree level, ideally possessing actuarial/risk management qualifications.

• Strong analytical experience in the insurance space across different types of risks.

• Deep understanding of financial statements, P&L, balance sheets and accounting concepts including financial models is essential.

• Excellent numerical skills and a detail orientated approach with the ability to maintain accuracy whilst complying with deadlines.

• Ability to work both independently and within a team environment.

• German language skills are considered an advantage.

• Knowledge of S&P analytical tools and research techniques considered an advantage.

To apply please visit www.theactuaryjobs.com

April 2017 • THE ACTUARY 45 www.theactuary.com

ACT Rec Apr17.indd 45

03/04/2017 15:50

APPOINTMENTS www.theactuaryjobs.com

Better futures aren’t down to chance Hymans Robertson is one of the UK’s leading actuarial consultancies, and we pride ourselves on our innovative, client focussed approach. We provide independent pensions, investment and life consultancy services, as well as data and technology solutions. We are steadfastly independent and have over 750 employees working from our offices in London, Glasgow, Edinburgh and Birmingham. We believe everyone has a right to a better future. We help make sure it’s not left down to chance.

We currently have the following opportunities available:

Part Qualified/Newly Qualified Actuaries You will get exposure to a varied range of work that will allow you to grow and develop a career in areas of pensions that suit your own particular skills. You’ll receive comprehensive training with us and gain exposure to stimulating client project work which will make the most of your communication, team working and problem solving skills. You will attend client meetings and we will encourage and develop your consulting skills alongside your technical skills and industry knowledge. We are interested in hearing from candidates who are actively studying for the Fellowship qualification or are newly qualified.

Nearly or Newly Qualified Actuary Location: Leeds Salary: £46782 - £51980 per annum + benefits As a nearly or newly qualified Actuary you'll be responsible for helping with producing capital requirements for the General Insurance business.

This role will involve interactions with a wide range of stakeholders, including the Chief Actuary, Finance Director.

In this collaborative team you'll have a role that matters, delivering key capital outputs such as Solvency Capital Requirement (SCR) and capital forecasts. You'll share responsibility for the maintenance of capital models (Igloo/ICE), you'll be involved in delivering regulatory reports such as Quantitative Reporting Templates (QRTs), while also contributing to and supporting the setting of modelling assumptions and methodologies. You'd also be involved in model validation activities and liaise with key stakeholders such as the Head and Deputy Head of General Insurance Actuarial.

To apply go to: www.theactuaryjobs.com/job/59272/assistantactuarial-manager-gi-capital-modelling-/

Life Consultants We have exciting opportunities for high calibre, ambitious individuals to take on a diverse role within the Life and Financial Services practice, supporting the Partners and Directors on a variety of assignments across risk and capital management, Solvency II, investment strategy and ALM, reinsurance & risk transfer, M&A transactions and structuring, and pricing & product development. Candidates are likely to be nearly or recently qualified UK actuaries with excellent consulting skills and a track record of achievement and delivery.

Why work with Hymans? Because better futures aren’t down to chance.

theactuaryjobs.com is the official job board for the Institute and Faculty of Actuaries.

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

Find a better future with hymans.co.uk/careers 46

THE ACTUARY • April 2017 www.theactuary.com

ACT Rec Apr17.indd 46

03/04/2017 15:50

Specialising in High Performance Selection LONGEVITY RISK ACTUARY Competitive package Herts

Interaction with finance, actuarial, pricing and underwriting – need an actuarial student with reserving / pricing experience.

Role encapsulates all elements of the syndicate SCR capital production. Small team that has strategic influence to the business.

ACTUARIAL ANALYST Competitive salary, bonus and benefits with full study support Surrey New position in this expanding team, working in personal lines retail motor and home sector, seeks an actuarial student close to CT completion.

Must have experience of reserving in either motor or home business.

For more information please contact Clinton on 020 7621 3774 or c.poore@darwinrhodes.com

For more information please contact Clinton on 020 7621 3774 or c.poore@darwinrhodes.com

For more information please contact Clinton on 020 7621 3774 or c.poore@darwinrhodes.com

For more information please contact Clinton on 020 7621 3774 or c.poore@darwinrhodes.com

ACTUARIAL DIRECTOR Salary negotiable London

SENIOR MANAGER – CONSULTING Competitive base salary plus bonus and benefits Zurich

SENIOR RISK ACTUARY LIFE CHF Open Zurich

Reinsurance company seeking a senior actuary for their London operations. You will be a qualified actuary with several years experience required for quarterly US GAAP and solvency ii valuations.

SENIOR INTERNAL RISK ACTUARY - LIFE Competitive South East Be part of a busy risk team where you will be supporting CRO by Leading the planning, performance and communication of Independent Validation of the Internal Model.

Leading consulting group is seeking a strong business development actuary to work on their expanding client portfolio.

You will be required to lead risk insight to key stakeholders across the life area including actuarial. Ideally you will have substantial experience in multifunctional areas on a national and international basis.

Ideally a good understanding of the life insurance market ideally in protection products.

You will be a qualified actuary with extensive technical and solvency II experience.

You will be a qualified actuary with a solid consulting background and proven client skills. You will also need to speak both English and German.

You will be a qualified life actuary or have a recognised qualification and speak English fluently, ideally German.

For more information please contact James on 07816 528 647 or j.harrison@darwinrhodes.com

For more information please contact James on 07816 528 647 or j.harrison@darwinrhodes.com

For more information please contact James on 07816 528 647 or j.harrison@darwinrhodes.com

For more information please contact James on 07816 528 647 or j.harrison@darwinrhodes.com

MANAGER/HEAD OF RISK Competitive salary Hong Kong Leader Insurer is seeking for a regional risk management expert with knowledge of Asia market.

SENIOR MANAGER – REGIONAL OFFICE Competitive salary Hong Kong

HEALTH ACTUARY Salary negotiable UAE

ACTUARIAL ASSISTANT Salary, bonus, benefits and full study support on offer Hertfordshire

RISK AND CAPITAL ANALYST Competitive salary, bonus & benefits with full study support Surrey Reporting to the Head of Risk and Capital, this new position to provide 2nd line defence oversight of and challenge to the business.

Seeking: qualified actuary with solid knowledge in Valuation/ Financial Reporting or Risk Management.

Languages: English – Mandarin / Cantonese is an advantage.

For more information please contact Mable on m.kwong@darwinrhodes.com.hk

CAPITAL ACTUARY Salary negotiable City of London Seeking a part qualified or up to nearly qualified capital analyst / capital actuary to join this relatively young, vibrant syndicate.

Seeking: Qualified Actuary to complete the annual production of economic capital for the Group and Local Business Units.

My client is seeking a solid health actuary to work across the MENA region. You will ideally be a qualified or nearly qualified actuary with good technical and communication skills .

Seeking a Qualified Actuary to support the longevity risk lead in the development and maintenance of this company’s longevity risk model plus other longevity risk initiatives across company and group. Involves recalibration, annual validation, full suite documentation – knowledge of Solvency II internal model requirements a must.

Languages: English – Mandarin / Cantonese is an advantage.

MENA market experience preferred, however you may have working in other health markets globally.

Working in the consolidation we seek to speak to CT based students with any experience of profit testing, determining reserves, capital requirements, experience studies, Solvency II, EV, FCR, DCAT, LICAT.

For more information please contact Mable on m.kwong@darwinrhodes.com.hk

For more information please contact James on 07816 528 647 or j.harrison@darwinrhodes.com

For more information please contact Clinton on 020 7621 3774 or c.poore@darwinrhodes.com

April 2017 • THE ACTUARY 47 www.theactuary.com

ACT Rec Apr17.indd 47

03/04/2017 15:50

APPOINTMENTS www.theactuaryjobs.com

ACTUARIAL POST RECRUITER OF THE YEAR 2012 . 2013 . 2014 . 2015 . 2016 EXCLUSIVE - LEADING-EDGE PRICING

SENIOR RESERVING ACTUARY

NON-LIFE LEADER

£ competitive salary + benefits package

€ excellent package

$ excellent

NON-LIFE LONDON

NON-LIFE DUBLIN

STAR3748

NON-LIFE CANADA

STAR3800

Rapidly developing business seeks a commercially-focused actuary with personal lines experience and an entrepreneurial outlook to work collaboratively in the delivery of cutting-edge pricing solutions.

Our client seeks a qualified non-life actuary to develop the reserving process for its multi-line, global reinsurance business. You will also be actively involved in Solvency II and IFRS reporting.

Our client has an excellent opportunity for a qualified non-life actuary to work in a fastgrowing and challenging environment, identifying and leading business development opportunities to build the practice.

LONDON P&C CONSULTANT

SENIOR MANAGER - GI CAPITAL MODELLING

RESERVING ACTUARY - LONDON MARKET

£ competitive market salary

£ dependent on experience

£ excellent

NON-LIFE LONDON

STAR3700

NON-LIFE LEEDS

STAR3793

NON-LIFE LONDON

STAR3767

Leading consultancy wishes to hire a partqualified or qualified non-life actuary to focus on capital work within the London Market. An excellent opportunity to develop your career within a market-leader.

Highly visible role for a qualified non-life actuary with strong technical and interpersonal skills to lead a team responsible for producing capital requirements for the GI business.

Are you a part-qualified or qualified actuary looking for the next step in your career? This role offers exposure to reserve risk, actuarial function reports, internal model validation and standard formula calculations.

CAPITAL MODEL VALIDATION ACTUARY

P&C RISK MANAGER

PRICING ANALYTICS ACTUARY

€ excellent

£ excellent package

NON-LIFE RISK DUBLIN

STAR3774

NON-LIFE RISK LONDON

£ excellent STAR3764

NON-LIFE LONDON

STAR3626

Global reinsurer seeks a qualified non-life actuary to provide professional actuarial and risk support and model change leadership.

Previous capital modelling, Solvency II or validation experience is essential.

Part-qualified or qualified non-life actuary needed to provide support in driving risk management activities including risk appetite, tolerances and limits setting, risk identification, assessment, monitoring and reporting.

Niche insurer seeks a part-qualified or qualified non-life actuary with strong programming skills (particularly Excel, VBA & SQL) to develop and maintain pricing tools and methodologies.

ISLAND PRICING

SOUTH COAST PRICING

PRICING ANALYSIS

£ dependent on experience

£ dependent on experience

£ competitive package

NON-LIFE INTERNATIONAL

STAR3823

NON-LIFE SOUTH COAST/SOUTH EAST

STAR3828

NON-LIFE HEALTH SOUTH COAST

STAR3813

Our client is seeking a part-qualified non-life actuary with pricing experience to build and improve price optimisation models, developing a strong understanding of conversion, retention and elasticity modelling.

Major insurance firm seeks a part-qualified or qualified actuary to join its team to support the pricing workstream whilst gaining exposure to reserving and capital. Candidates from a pensions or life insurance background will be considered.

Major insurer seeks a part-qualified actuary with great communication skills to assist with pricing, analysis and modelling, providing insightful commercial information to the business.

SENIOR RESERVING ANALYST

SENIOR ACTUARIAL ANALYST

SENIOR ACTUARIAL ANALYST – SII

£ excellent + bonus + benefits NON-LIFE SOUTH EAST

£ excellent STAR3853

NON-LIFE SOUTH EAST

£ dependent on experience STAR3782

NON-LIFE FLEXIBLE LOCATION

STAR3787

Leading insurance group seeks a partqualified non-life actuary to provide data, analytical support and recommendations to inform reserving, forecasting, monitoring and associated decision making.

Leading insurer seeks part-qualified non-life actuary to undertake internal reserve reviews across the Motor and Home portfolios for use in IFRS. Strong Excel model building skills including VBA coding required.

Leading international insurer seeks a partqualified non-life actuary with a detailed knowledge of SII requirements to contribute to the effective implementation of its risk management system. VBA or SQL an advantage.

EXPERT COMMUNICATOR

CORPORATE PENSIONS LEADER

SPECIALTY PENSION SOLUTIONS

£ excellent

£ attractive

£ depending on experience

STARVACANCIES PENSIONS MIDLANDS

STAR3862

Growing niche pensions consultancy seeks a qualified pensions actuary with outstanding knowledge of DB and DC schemes to take on a key role. You will have a gift for explaining complex ideas in simple terms.

48

STAR3763

STAR3864

Fantastic opportunity for a corporate pensions actuary with entrepreneurial flair and a track record in business development to play a key role in the launch and growth of a new actuarial consultancy.

PENSIONS LONDON

STAR3849

Seeking a part-qualified or qualified actuary to support specialty workstreams within a leading-edge independent firm. Develop your career whilst providing holistic solutions to a diverse client base.

Antony Buxton FIA

Louis Manson

Joanne O’Connor

Lance Randles MBA

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

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

Ivan Clarke

Paul Cook

Diane Lockley

David Ellis

DIRECTOR - INSURANCE SEARCH

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

SENIOR CONSULTANT +44 7492 060 219 diane.lockley@staractuarial.com

SENIOR CONSULTANT +44 7432 791 061 david.ellis@staractuarial.com

THE ACTUARY +44 • April 2017 7870 181 444 www.theactuary.com ivan.clarke@staractuarial.com

ACT Rec Apr17.indd 48

PENSIONS LONDON

03/04/2017 15:50

FOR MORE THAN 250 VACANCIES VISIT

ww w.s ta ra c tu a ri a l .c om CHIEF INTERNAL AUDITOR

HEAD OF INTERNAL AUDIT

HEAD OF ACTUARIAL - INTERNATIONAL

£ excellent + bonus + benefits

£ excellent package

£ attractive package

STAR3844

LIFE LONDON

STAR3771

LIFE LOCATION UPON APPLICATION

STAR3781

Major insurer wishes to hire a talented individual to support the development of the strategy for its Internal Audit function, identifying strategic and risk-based assurance priorities across the Group.

Major reinsurer seeks a qualified life actuary to lead a global independent function in the execution of internal audits and special reviews across an international reinsurance business division.

Major international financial services group seeks a qualified life actuary with excellent communication and stakeholder management skills to take up a key role reporting to the CRO.

PROTECTION DIRECTOR

DIRECTOR OF LONGEVITY PRICING

CORPORATE ACTUARIAL DIRECTOR

£ excellent package

£ excellent package

£ excellent package

LIFE LONDON

STAR3810

LIFE LONDON

STAR3809

LIFE LONDON

STAR3719

Exciting opportunity with a leading reinsurer for a qualified life actuary to take responsibility for financial reporting of in-force business. You will have a detailed understanding of protection products.

Global reinsurer seeks a qualified life actuary with expertise in longevity pricing. A creative thinker, you will work with the marketing team to understand the client’s needs and develop appropriate solutions and pricing.

Global reinsurer seeks a qualified actuary with excellent technical and analytical skills to play a leading role in the co-ordination and consolidation of its annual business planning exercise.

SENIOR MANAGER - AUDIT

SENIOR MANAGER - ECONOMIC CAPITAL

INSURANCE RISK ACTUARY

£ excellent

£ excellent package

£ excellent LIFE EDINBURGH

STAR3826

LIFE LONDON

STAR3825

LIFE NON-LIFE RISK LONDON

STAR3789

Major consultancy seeks a qualified life actuary with strong technical ability to join its Edinburgh-based team. The successful candidate will possess excellent project and people management skills.

Global consultancy seeks a qualified life actuary with strong experience in economic capital to join its London team. The successful candidate will have a proven ability to develop productive new business relationships.

Global management consultancy seeks exceptional actuaries to join in its success.

The ideal candidate will have strong leadership, influencing and consulting skills, and a good technical understanding of insurance.

SOLVENCY II SPECIALISTS

CAPITAL LIFE

LIFE REINSURANCE STRATEGIST

£ excellent package

£ excellent package

ZAR generous salary and benefits package

LIFE PENSIONS LONDON

STAR3805

LIFE LONDON

STAR3855

LIFE SOUTH AFRICA

STAR3845

Prestigious client seeks a part-qualified or qualified life or pensions actuary looking to develop their Solvency II capability. Fantastic opportunity to broaden your experience with a market leader.

Expanding insurer seeks a part-qualified or qualified actuary to join its capital team. The successful candidate will gain significant exposure to pricing, investment, operations, structuring, and management.

Our client is looking to hire a commercial life reinsurance actuary into this highly-visible and strategic leadership role. This is a fantastic opportunity to contribute to the significant growth of this business.

ACTUARIAL REINSURANCE MODELLER

ASSISTANT LONGEVITY ACTUARY

LONGEVITY ANALYST

£ excellent

£ excellent package

LIFE LONDON

STAR3851

LIFE LONDON

£ excellent + bonus + benefits STAR3843

LIFE MIDLANDS OR SOUTH EAST

STAR3839

Leading reinsurer has a number of exciting opportunities for part-qualified life actuaries, of various levels of experience, to assist in the development and maintenance of modelling tools and processes.

Leading global reinsurer seeks a part-qualified actuary with significant longevity/pensions experience to support the delivery of profitable new longevity business opportunities.

Part-qualified actuary is sought to provide high quality analysis and judgement for the administration of longevity swap treaties, assistance to reporting teams, and management of annuity queries.

PENSIONS AND INVESTMENT VACANCIES

SENIOR INVESTMENT CONSULTANT

RISK ACTUARY

£ excellent + bonus + benefits

£ excellent package

£ highly competitive package

STARVACANCIES PENSIONS INVESTMENT ACROSS THE UK

STAR3745

Leading consultancy seeks qualified actuaries with strong interpersonal skills and technical strength for potential vacancies in pensions actuarial, investment advisory and defined contribution advisory.

ACT Rec Apr17.indd 49

INVESTMENT LONDON/SOUTH EAST

STAR3729

Leading consultancy is seeking a qualified, talented investment specialist to lead relationships with a diverse client base, advising clients on investment strategy, default design, fund selection and provider reviews.

LIFE PENSIONS RISK NATIONWIDE

Star Actuarial Futures Ltd is an employment agency and employment business

LIFE SOUTH COAST

STAR3859

Our client is looking to hire an actuary with a depth of knowledge and understanding of financial risks, capital management, and Solvency II to support internal model validation and develop a robust risk framework.

Irene Paterson FFA

Peter Baker

Jo Frankham

Jan Sparks FIA

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

PARTNER +44 7860 602 586 peter.baker@staractuarial.com

ASSOCIATE DIRECTOR +44 7950 419 115 jo.frankham@staractuarial.com

ASSOCIATE DIRECTOR +44 7477 757 151 jan.sparks@staractuarial.com

Adam Goodwin

Margaret de Valois FIA

Clare Roberts

Sarah O’Brien

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

ASSOCIATE DIRECTOR +44 7786 992 802 margaret.devalois@staractuarial.com

SENIOR CONSULTANT +44 7714 490 922 clare.roberts@staractuarial.com

SENIOR CONSULTANT April 2017025 • THE +44 7841 393ACTUARY www.theactuary.com sarah.obrien@staractuarial.com

49

03/04/2017 15:50

APPOINTMENTS www.theactuaryjobs.com

Oliver James Associates discusses the role of the Chief Actuary and the introduction of the Chief Actuary Practising *LY[PĂ&#x201E; JH[L ^P[O 3H\YH 4J4HZ[LY 7HY[ULY H[ JVUZ\S[HUJ` 3*7 >OH[ OH]L ILLU [OL THPU MHJ[VYZ HÉ&#x2C6; LJ[PUN [OL NLULYHS PUZ\YHUJL HJ[\HYPHS THYRL[ ZV MHY PU & The Lord Chancellorâ&#x20AC;&#x2122;s change to the court discount rate from +2.5% pa to -0.75% pa came as a huge shock to many â&#x20AC;&#x201C; although a change was anticipated, few expected it to be so large. For high-value personal injury claims involving young claimants, this change will triple the value of their compensation. It has made for a challenging start to 2017, with several large motor insurers announcing a ZPNUPĂ&#x201E; JHU[ OP[ [V [OLPY WYVĂ&#x201E; [Z <UJLY[HPU[` remains because of the consultation that the Lord Chancellor has just released on the way to set the rate. *`ILY PUZ\YHUJL PZ HSZV H ZPNUPĂ&#x201E; JHU[ HYLH VM focus. Lloydâ&#x20AC;&#x2122;s is predicting a surge in demand for cover after a 50% rise in 2016, and Allianz is predicting the global premium to grow ten fold from $2.5bn to $25bn in the next eight years. /V^ T\JO OHZ YLN\SH[PVU ZOHWLK [OL YVSL VM [OL (J[\HY` ZWLJPĂ&#x201E; JHSS` [OL *OPLM (J[\HY` PU YLJLU[ `LHYZ& :VS]LUJ` 00 OHZ JYLH[LK ZPNUPĂ&#x201E; JHU[ YLN\SH[VY` demands such as the reporting of technical provisions on an additional basis, rampedup capital modelling requirements around validation and model change, and the reporting of data. The Chief Actuary role, in WHY[PJ\SHY PZ OLH]PS` ZOHWLK I` [OL ZWLJPĂ&#x201E; J legislative requirements.

Interestingly, in Australia, the regulator is currently considering reducing the regulatory requirements of Appointed Actuaries to give them more freedom to focus on providing Z[YH[LNPJ Z\WWVY[ [V [OL )VHYK :VTL <2 Ă&#x201E; YTZ are addressing this issue by separating the Head of Actuarial from the Solvency II Chief Actuary role to allow the Head of Actuarial to maintain a more strategic focus.

What is the Chief Actuary Practising *LY[PĂ&#x201E; JH[L HUK ^OLU KPK [OPZ JVTL PU[V MVYJL& >OH[ ^HZ [OL YLHZVU MVY P[ ILPUN PU[YVK\JLK& The need for a Chief Actuary Practising *LY[PĂ&#x201E; JH[L 7* JHTL PU[V MVYJL H[ [OL Z[HY[ of 2016 alongside the new formal Solvency II Chief Actuary role. They are the IFoAâ&#x20AC;&#x2122;s way of WYV[LJ[PUN [OL W\ISPJ PU[LYLZ[ I` JVUĂ&#x201E; YTPUN that members holding statutory roles have the necessary skills and experience to perform them.

6[OLY [OHU [LJOUPJHS ZRPSSZ ^OH[ ZRPSSZ HYL YLX\PYLK MVY OVSKLYZ VM [OL JLY[PĂ&#x201E; JH[L&

>OV PZ LSPNPISL [V HWWS` MVY [OPZ& @V\ OH]L [V IL H X\HSPĂ&#x201E; LK (J[\HY` HUK meet the technical and general criteria. The technical criteria include a breadth and depth of experience across reserving, pricing, capital, reinsurance and risk management, although itâ&#x20AC;&#x2122;s not necessary to have deep experience in all areas. The Institute and Facultyâ&#x20AC;&#x2122;s website provides more details on the expectations of the PC committee who approve applications. /V^ THU` 3*7 WHY[ULYZ OVSK H 7* HUK ^OH[ KPK [OL` ULLK [V KV [V VI[HPU P[& All LCP insurance actuarial partners hold either the Chief Actuary or Lloydâ&#x20AC;&#x2122;s opinion PC â&#x20AC;&#x201C; several have both. For my part, working at LCP has provided opportunities to help a range of syndicates and insurers with reserving and capital modelling, and a large JSPUPJHS ULNSPNLUJL PUKLTUPĂ&#x201E; LY ^P[O [OLPY pricing. I am also an Appointed Actuary to an Australian insurer, for whom I provide a full range of actuarial support. The other partners have equally wide-ranging experience, so meeting the technical criteria was a natural consequence of our client work.

What ongoing requirements are there to THPU[HPU [OL YLN\SH[LK *OPLM (J[\HY` Z[H[\Z& 7YHJ[PZPUN *LY[PĂ&#x201E; JH[LZ OH]L [V IL YLUL^LK on an annual basis. At each renewal you must show that you have continued to meet the criteria, in particular the recent technical experience and the CPD requirements. If you hold a Chief Actuary role, it should be straightforward to demonstrate continued relevant technical experience. If not, or if you are planning a career break, some careful planning of work across the year will be valuable to help you retain your PC at renewal.

It is important to have self-assurance and PUĂ&#x2026; \LUJPUN ZRPSSZ HUK SPRL HSS HJ[\HYPLZ [V behave in an ethical and professional manner.

It is also important to be able to exercise sound judgement and meet the regulatory requirements, and to do all this even when under the pressures that the role might bring.

You need to be able to demonstrate that your character and professional experience makes `V\ H Ă&#x201E; [ WYVWLY HUK Z\P[HISL WLYZVU [V OVSK the PC. The need for all these attributes is formalised through the attestation process, where an existing PC holder attests that a new applicant has these skills as well as the technical experience. >OH[ HK]PJL ^V\SK `V\ NP]L [V H 1\UPVY HJ[\HY` ^OV PZ HZWPYPUN [V IL H *OPLM (J[\HY` PU [OL M\[\YL& Plan ahead and seek out the right opportunities. It is essential to have a range of experience to perform the role competently and meet the PC technical criteria. So plan how you might get that experience through your various clients in a consultancy, or through role rotation in house. It is also important to develop and demonstrate the related softer skills. Presenting to internal committees, such as the reserving committee or capital model steering group, is useful experience. Ask your managers to be involved PU KPZJ\ZZPVUZ ^OLYL Ă&#x201E; UHS KLJPZPVUZ HYL THKL It will help you understand the challenges to your advice that you may experience, so you can develop the self-assurance to deal with those challenges in future. /V^ KV `V\ [OPUR [OL *OPLM (J[\HY` YVSL ^PSS KL]LSVW PU [OL JVTPUN `LHYZ& Many Chief Actuaries are still developing the way they meet the requirements. I hope that as we come to the second year of the regime there will be more opportunities to share knowledge on best practice so that Chief (J[\HYPLZ JHU MVJ\Z [OLPY LÉ&#x2C6; VY[Z VU Z\WWVY[PUN the Board and avoid the trap of a â&#x20AC;&#x153;tick boxâ&#x20AC;? approach. I think this is particularly so in the areas of the underwriting and reinsurance opinions. And who knows, perhaps we ^PSS Ă&#x201E; UK V\YZLS]LZ MVSSV^PUN [OL (\Z[YHSPHU example in a few years by paring back the formal requirements to support a more strategic focus.

Oliver James Associates Delivering with Excellence

50

THE ACTUARY â&#x20AC;˘ April 2017 www.theactuary.com

ACT Rec Apr17.indd 50

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Growing international insurer is seeking to appoint a Senior Reporting Manager to its Actuarial team. Candidates will ideally have experience of Solvency II, capital reporting HUK >P[O 7YVÃ&#x201E; [Z

In a newly created role and division, you will act as Lead Consultant for a variety of clients, and will be responsible for designing and implementing complex solutions.

We are currently partnering with a number of life insurers who have opportunities for interim Actuarial Modellers to join system improvement projects. Roles available for MoSes, VBA and Prophet developers, in-depth coding experience is a must.

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A specialist insurer seeks to appoint a Director to its senior leadership team. Candidates will have experience of Solvency II, EV and IFRS, as well as knowledge of UK legal and regulatory frameworks.

Multinational Insurer seeking a Senior Actuary to work with the Risk Director to plan, carry out and report on validation of the Group Internal Model. Excellent communication skills are essential.

A life insurance organisation is looking for a contractor to come on-board and assist PU I\PSKPUN HU PU[LYUHS TVKLS MVY H ZWLJPÃ&#x201E; J portfolio of business. Initial six-month contract.

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3VUKVU 4HYRL[ SLHKLY ZLLRZ 8\HSPÃ&#x201E; LK (J[\HY` for highly commercial Reserving position.

Management of small team. Strong technical background preferred. My client will help you develop outstanding business partnering skills. Consultancy background of interest.

This group level role requires a Junior Actuary with knowledge of SQL, R, VBA or SAS to work on model development and design, and building MI tools. An excellent blend of IT and actuarial work. Entry-level candidates will also be considered.

A personal lines insurer is sourcing a Pricing Actuary to lead a new project. We are seeking a candidate with experience launching new online products. A background in retail insurance is preferred.

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My client, an innovative specialist insurer, seeks a bright and ambitious Student Actuary to join the team. Reinsurance Pricing experience ^V\SK IL ILULÃ&#x201E; JPHS I\[ PZ UV[ LZZLU[PHS MVY [OPZ OPNO WYVÃ&#x201E; SL H\[VUVTV\Z 3VUKVU 4HYRL[ opportunity.

A well-known London Market Syndicate is SVVRPUN MVY H 8\HSPÃ&#x201E; LK *HWP[HS (J[\HY` [V join the Risk function. The ideal candidate will have a Capital background, and a good understanding of Risk & Internal Model Validation.

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Interim Head of Capital required for a large personal lines insurer to lead and develop the Actuarial Capital Modelling team. Initial sixmonth contract with the potential to extend.

Contact Us )LUQHTPU 4VZLZ *VU[YHJ[ +44 207 310 8793 benjamin.moses@ojassociates.com

www.ojassociates.com

9PJOHYK /V^HYK 3PML +44 207 649 9356 richard.howard@ojassociates.com

oliver-james-associates

@OJAssociates

1VOU )SLHZKHSL .0 +44 203 861 9186 john.bleasdale@ojassociates.com April 2017 â&#x20AC;¢ THE ACTUARY 51 www.theactuary.com

ACT Rec Apr17.indd 51

31/03/2017 15:06

APPOINTMENTS www.theactuaryjobs.com

Experts in Actuarial Recruitment

CHIEF ACTUARY - LIFE M A LTA We are working alongside MAPFRE MSV Life p.l.c. in the search for a Chief Actuary, to be based on the beautiful Mediterranean island of Malta.

We are seeking an executive level qualified actuary to manage the actuarial unit, participating in the design of business and strategic plans and driving continuous improvement. In this key and highly visible role, you will lead on all actuarial matters including pricing, reserving, embedded value calculations, surplus, capital and solvency modelling. You will also lead on matters relating to regulation, reinsurance, and the development of actuarial processes, tools, and teams.

With excellent leadership and management skills, the successful candidate will possess a very good understanding of with-profits business and have experience of reporting within the Solvency II regime.

Please contact Jan Sparks of Star Actuarial Futures for further information.

Jan Sparks FIA ASSOCIATE DIRECTOR

M: +44 7477 757 151 E: jan.sparks@staractuarial.com

HEAD OF PRICING AND STRUCTURING B ER MUD A On behalf of Legal & General Re, we are seeking a qualified life actuary to lead on pricing, structuring and implementation of all new business including annuity, longevity and protection / mortality reinsurance business opportunities in Bermuda. You will direct and develop the pricing team and provide actuarial leadership to all areas of the business.

As well as playing a significant role in the development of new business strategy, a key responsibility will be to ensure that risk and capital implications are clearly understood and managed in the context of the business plan.

You will be an experienced pricing actuary, with prior involvement in structuring reinsurance arrangements. An excellent understanding of the technical aspects of regulatory reporting, capital and solvency is a pre-requisite, as is the appetite to develop pricing systems and processes and to mentor a growing team.

Please contact Jan Sparks of Star Actuarial Futures for further information.

Jan Sparks FIA ASSOCIATE DIRECTOR

52

M: +44 7477 757 151 E: jan.sparks@staractuarial.com

PLEASE CONTACT US AT ANY TIME TO DISCUSS YOUR RECRUITMENT NEEDS THE ACTUARY • April 2017 www.theactuary.com +44 20 7868 1900

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