TheActuaryAugust2014 by Redactive Media Group

AUGUST 2014 theactuary.com

Interview: Sharon Bowles

The magazine of the actuarial profession

Playing an inﬂuential role in the European Union

Life The true cost of non-disclosure in insurance

Business skills Misconceptions in data management

Arts review The Actuary

The God P–article, where art and science collide

August 2014

SCIENCE FACTS NOT FICTION Oliver Werneyer asks whether actuaries can master the power of new technologies p01_august_cover_SEMIFINAL•KC.indd 1

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Appointments

Whatâ&#x20AC;&#x2122;s underneath? We look below the surface to spot trends early and show you what is really happening. Whether your need relates to risk management, capital, or strategy, our cutting-edge analysis techniques can help you see deeper than the competition.

Get new insights on your business at uk.milliman.com.

THE ACTUARY â&#x20AC;˘ May 2013 www.theactuary.com

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AUGUST 2014

Contents

With the revolution on the individual health monitoring front, actuaries are entering a period of opportunity

22 UP FRONT 9

SIAS events

10 IFoA news 14 People/society news 16 General insurance news 17 Industry news

OPINION 5

Editorial Kelvin Chamunorwa highlights the beneﬁts of volunteering, to the profession and to those giving back

Letters Actuaries ever mindful of their reputation, and the costs of their professionalism

President’s comment Nick Salter discusses the processes of Council, the IFoA’s governing body, which leads its vision and strategy

FEATURES

AT THE BACK

18 Interview: Sharon Bowles

32 Arts

Having been one of the most inﬂuential regulators in the European Union, Sharon Bowles speaks to Mark Dowsey about her many achievements

22 Life: Backward in coming forward Paul Morden and Phil Brown explore the true cost of non-disclosure of medical conditions by life insurance applicants to the life insurance industry

24 Life: Appliance of science Oliver Werneyer asks whether life actuaries can master the power of new technologies

William Trump and Paul Hately consider what is really achievable by using ‘big data’

30 Business skills: Measure

Soapbox

for measure A number of common misconceptions prevent the optimal use of data, argues Douglas Hubbard

COVER: VINCE FRASER

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34 Puzzles Try the latest cryptic crossword and Mensa puzzles

37 Student Jessica Elkin discusses the communications exam (CA3) and examines the pitfalls and problems students should watch out for

38 Actuary of the future Sam Mawoyo of African Actuarial Consultants

38 Appointments and moves

28 Life: The predictive power of data

Shyam Mehta discusses global unemployment and argues that the minimum wage is one of its causes

MORE CONTENT ONLINE Additional content can be found at www.theactuary.com

Anjali Sakhrani and Sonal Shah ﬁnd themselves on an electrifying journey through space and time

ONLINE Hanging in the balance Suzanne Vaughan reports on the debate on Scottish independence, hosted by the IFoA

News For more daily news coverage, visit: www.theactuary.com/news

WRITERS OF THE MONTH Paul Morden and Phil Brown win a £50 book token for their feature on the Costs of Non-disclosure, courtesy of SIAS

August 2014 • THE ACTUARY www.theactuary.com

29/07/2014 09:16

Appointments

Business Critical As a self-respecting actuarial professional, you’ll no doubt want to keep up with the latest industry developments, people and society updates and professional news. But you’re also busy being an actuarial professional. Right? That’s why The Actuary’s weekly email alert brings you a handy round-up of only the most relevant news stories and comment, straight to your inbox, every Thursday.

THE ACTUARY • May 2013 www.theactuary.com

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Opinion Editorial theactuary.com

Publisher Redactive Media Group 17-18 Britton Street, London EC1M 5TP +44 (0)20 7880 6200 Publishing director Joanna Marsh Sub-editors Kathryn Manning Caroline Taylor News editor Vivienne Russell +44 (0)20 7324 2788 vivienne.russell@redactive.co.uk News reporter Judith Ugwumadu +44 (0)20 7324 2794 judith@redactive.co.uk Editorial assistant Tania Forrester tania.forrester@redactive.co.uk Sales manager Chris Dooley +44 (0)20 7880 8545 chris.dooley@redactive.co.uk Display sales executive Vlad Harmanescu +44 (0)20 7324 2726 vlad@redactive.co.uk

editor@theactuary.com

Internet The Actuary: www.theactuary.com Staple Inn Actuarial Society: www.sias.org.uk Institute and Faculty of Actuaries: www.actuaries.org.uk Managing editor Sharon Maguire +44 (0)20 7880 6246 sharon.maguire@redactive.co.uk Editor Kelvin Chamunorwa editor@theactuary.com Features editors Jeremy Lee, pensions, investment, ERM, banking Richard Purcell Richard Schneider, life, Solvency II, mortality/longevity, modelling and software Sonal Shah, GI, reinsurance, environment, careers (UK) Helen Lau, GI, reinsurance, environment, careers Contact: features@theactuary.com People/society news editor Yvonne Wan social@theactuary.com Student page editor Jessica Elkin student@theactuary.com Arts page arts@theactuary.com

Senior recruitment sales executive Emmanuel Nettey +44 (0)20 7880 6234 emmanuel.nettey@redactive.co.uk

Profession news editor Catherine Murray +44 (0)20 7632 2198 catherine.murray@actuaries.org.uk

Senior designer Gene Cornelius

SIAS representative Titas Bakanauskas

Picture editor Akin Falope

Editorial advisory panel Peter Tompkins (chairman), Naomi Burger, David Campbell, Matthew Edwards, Martin Lunnon, Sherdin Omar, Richard Purcell, Nick Silver, Andrew Smith

Production executive Rachel Young +44 (0)20 7880 6209 rachel.young@redactive.co.uk Print Polestar Colchester Circulation 24,028 (July 2012 to June 2013)

Subscriptions For subscriptions from outside the actuarial profession, UK: £90 per annum/£8.50 per copy. Europe: £110 per annum, rest of the world: £130 per annum. Contact: Catherine Murray, The Institute and Faculty of Actuaries, Staple Inn, High Holborn, London WC1V 7QT. T +44 (0)20 7632 2100 E catherine.murray@actuaries.org.uk Students on actuarial science courses may join and they will receive The Actuary as part of their membership. Apply to: Membership Department, The Institute and Faculty of Actuaries, Maclaurin House, 18 Dublin Street, Edinburgh EH1 3PP. T +44 (0)131 240 1325 E membership@actuaries.org.uk Changes of address should inform the membership department as above. For delivery queries, contact: Rachel Young E rachel.young@redactive.co.uk Published by the Staple Inn Actuarial Society The editor, The Institute and Faculty of Actuaries and Staple Inn Actuarial Society are not responsible for the opinions put forward in The Actuary. No part of this publication may be reproduced, stored or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the copyright owners. While every effort is made to ensure the accuracy of the content, the publisher and its contributors accept no responsibility for any material contained herein. Important information for contributors to The Actuary By submitting content for publication you confirm that: (a) You (and/or other named contributors) are the sole author(s) of the content submitted; (b) The content you submit is original and has not previously been published (unless you specifically advise us to the contrary); (c) You haven’t previously licensed the use of the content you submit; (d) So far as you are aware, the content submitted will not infringe any third-party rights, be defamatory or in any way illegal.

Voluntary contribution Kelvin Chamunorwa looks at how actuaries are giving back and highlights the many benefits of doing so When I meet people and mention my work as a volunteer for The Actuary magazine, there are two questions that I’m commonly asked. The first is usually around which aspect of the role I enjoy the most. My response is unequivocal: it’s the interaction with contributors, readers and others with an interest in actuarial work. I am often amazed when I hear about actuaries who are helping to solve all sorts of unique challenges. A few weeks ago I met Charles Cowling, an actuary who told me about his recent feat of completing ten marathons in ten consecutive days for charity. Ten marathons! He has raised £70,000 in donations, some of which will go to a charity that supports disadvantaged and vulnerable children in the UK. The second question is usually rhetorical, about the time commitment. It is significant, but eclipsed by the benefits. At the IFoA volunteer recognition party in London last month, I learned that more than 3,000 members of our profession also give up their time. I see volunteering as not only an act of benevolence but also about personal growth, developing professional relationships to draw upon and building friendships. In his article, Derek Cribb discusses how volunteers are integral to the increasing diversity of the work of actuaries, and thus the continued relevance of actuarial skills in business (page 10). Producing The Actuary is a team effort. Sonal Shah has been one of the enthusiastic volunteers on the team for four years, serving as a features editor. She has now decided to step down. Many will remember her ‘Elegant English’ series of articles, a particular favourite of mine, amongst her many considerable contributions which we greatly appreciate. Sonal’s departure leaves a vacancy for a features editor at The Actuary. If you would relish interacting with thought leaders in the actuarial world and have a keen eye for detail, please get in touch for more information. All you would need is some spare time.

“Volunteering is not only an act of benevolence, but also about personal growth”

Kelvin Chamunorwa Editor

LIKE US ON FACEBOOK www.facebook.com/ TheActuaryMagazine

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August 2014 • THE ACTUARY 5 www.theactuary.com

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Opinion Letters to the editor editor@theactuary.com

Have your say online

More comments are posted online about news stories published on www.theactuary.com.

Reputation damage To quote from an extract in The Week referring to an article by Alistair Osborne in The Times, which focused on collective defined contribution (DC) schemes: “Worst of all, income is ‘determined by actuaries’, those masterminds responsible for the Equitable Life and ‘with-profits funds’ fiascos.” Such sarcastic rhetoric is becoming frequent but is also apparently unanswered. It makes me wonder if the reputation of all actuaries has been undermined by the Equitable Life actuaries. But of course we cannot ignore the debacles of Statement of Standard Accounting Practice (SSAP) 24, Inland Revenue taxation of surpluses and the withdrawal of dividend tax relief – all implemented by others but unanswered by pensions actuaries at the time. The short termism of these initiatives, pandering to analysts and politicians who are only interested in the next quarter’s results or the next election, should have been snuffed out by a logically and well-communicated response before they were implemented. The profession should have at least been clearly seen to be opposed. I worry about the legacy, but also the future, of my profession. Our failure to communicate clearly the folly of those who don’t understand all of the economic and demographic dynamics and implications of their ill-thought-out ideas not only leads to potential financial ruin for many beneficiaries of pension arrangements but also the ridicule and demise of my profession. The starting point to reversing this is an overtly explained, clearly communicated impartial objection by the actuarial profession to the proposal to not require retirees to annuitise DC balances (or at least create some kind of disciplined lifetime drawdown facility). It is time we stood up and communicated in layman’s terms why this is a financially catastrophic idea for the long-term financial security of our elderly – before it happens. We have a duty to our profession. If we don’t act soon, I predict that in 10 or 20 years’ time we will be among those blamed for the plight of the destitute that have no private pension, and for the sharp increase in social security welfare costs.

Should we emulate Aussie subscription rates? Readers may not be aware that the reduced subscription policy being operated by IFoA management, particularly its most recent version, is focused almost solely on helping indigent actuaries and appears to ignore any concerns about value for money. As it now operates, entitlement to the reduced rate requires a Fellow to have total annual income less than £20,700, a little less than 80% of the average UK wage. Total income is earnings from all employment, investment income and pensions of any kind, including social security. For a start, this would seem likely to exclude most actuaries in or approaching retirement, regardless of any employment income they may have, other than the ﬁscally imprudent and those who have arranged their aﬀairs to avoid tax. True, those not earning anything at all from activities remotely actuarial in nature, and not expecting to do so ever again, will be eligible. And attainment of age 80 gets free life membership. But returning to value for money, something for which most of us have high regard in our professional lives, consider the following factors: ● the actuarial ‘brand’ confers high incomes on those in full-time work, but, for those

getting significantly less from part-time employment, is it equitable that they pay a full subscription? ● overseas members miss out on domestic continuing professional development (CPD) opportunities, and face greater costs to meet their professional obligations in any meaningful fashion – should they not get some discount? ● older members who have paid the full subscription for many years have financed the development and standing of the ‘brand’ – should there be a point at which they can be said to have done enough? Our Australian colleagues recognise these points by providing discounts of: ● 40% for overseas members; ● 50% for members aged 60-69 (100% from age 70); and ● 70% for members whose annual employment income is less than 95% of the average wage. I am frankly baffled. Aussies are a generous lot, but not that generous without cause. It may be that actuarial principles have a greater sway in their policy development than in the UK, and/or that they are concerned not to be perceived to be taking advantage of a monopoly position. I’d be interested to know what others think. Geoff Rashbrooke 21 July 2014

Danny Quant 23 June 2014

MORE LETTERS ONLINE More letters are available online at www.theactuary.com/opinion

The editor welcomes readers’ letters but reserves the right to edit them for publication. Please email editor@theactuary.com. The deadline for receiving letters for the September issue is 18 August 2014.

THE ACTUARY • August 2014 www.theactuary.com

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›

Opinion President’s comment

Nick Salter is the president of the Institute and Faculty of Actuaries

NICK SALTER

Council matters On 22 July I chaired my first Council meeting, which is part of my role as president, and I wanted to shine a spotlight on some of the issues Council wrestles with. I hope that in so doing more of you will consider standing for Council in the future, and that issues can be shared and discussed across the IFoA membership that will feed into it. Council is the IFoA’s governing body; it is responsible for the direction, vision and strategy of the organisation. That is a considerable responsibility, which is perhaps why it is shared across approximately 30 members, voted in by the membership. There are nine positions refreshed annually and any Fellow or Associate may stand for election. Importantly, Council delegates some responsibilities to bodies that report directly to it, namely the: Management Board, Audit and Risk Committee, Awards Committee, Nominations Committee, Public Affairs and Consultations Committee, and the Research and Thought Leadership Committee. I was chosen by the Council as its – and by extension your – leading ambassador when representing the IFoA, both externally and to the membership. During my year as president, I will help to steer Council as its chairman, but ultimately the decision-making power rests with the collective agreement of Council itself. It is important that all decisions are discussed, considered and agreed upon. Naturally, when you have 30 or so highly intelligent individuals with an array of experiences, hailing from different regions with differing issues and priorities, there will be debate. For a body that represents our 26,000-plus membership around the world this is as it should be. However, choices have to be made in order that our profession can move forward – and that, I believe, requires vote-based decision-making and a majority rules approach. Not everyone agrees that majority views should stand. In a recent, spirited discussion at Council (which spilled into the letters page of The Actuary last month – ‘Cabinet responsibly’, July 2014 ) a written requirement that Council members should, except in special circumstances, take on ‘cabinet responsibility’ and publicly support all decisions made by Council was considered. Or to put it another way, that Council members

Nick Salter discusses the processes of Council, the IFoA’s governing body, which leads its direction, vision and strategy should support the collective decisions that are made, even if those decisions go against their personal opinions, on the understanding that Council members could explain that they were not in favour. You may agree or disagree with this point; the collective decision made by Council was to accept this, although on an individual level some do not. The obvious question, after reading the above of course, is what represents a ‘special circumstance’ and this does indeed engender debate. Fiona Morrison, your new president-elect, suggested that if a decision was collectively taken that she considered had a negative impact on the female membership of the IFoA (rest assured, this will not happen during my presidency), then as a matter of conscience she would not be able to support such a decision. An excellent example perhaps, but different people will draw the line in different places. The key issue for Council, like any collective body, is that to be effective it cannot continually reconsider issues that have been decided, so once a decision is made it is

necessary to move forward and support that decision. I will return, later during my presidency, to Council matters in this column because I believe it is important that members understand the issues that Council deals with, and the decisions that it makes on your behalf. The challenges that we face as a profession require many views shared from a range of voices that should be heard and assessed, in order that we might move ahead and ﬁnd solutions. Council are the elected representatives of your many voices, and they have a responsibility to act within the governance framework, and to fulﬁl the responsibilities that are set out for them. As members, you have a responsibility to vote for your representatives, and to actively engage with them when you feel it is necessary to do so. I hope many more members in the future will step forward for election as Council members. Without the dedication of those that do, your profession could not move forward. a

“Naturally, when you have 30 or so highly intelligent individuals with diﬀering priorities, there will be debate”

The minutes of previous meetings and member details are available online (bit.ly/1egWDIT)

August 2014 • THE ACTUARY www.theactuary.com

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Opinion Soapbox

SHYAM MEHTA

A disastrous trend in unemployment It is fashionable these days for politicians to support a minimum wage. This has disastrous social consequences. The natural rate of unemployment in an economy is around 3%. There are always some people moving between jobs. Because of the recognised benefits of free trade, there are relatively few hindrances to the movement of goods, and therefore there is an international market in employment. Jobs get exported to the countries with the lowest wages, as adjusted for the efficiency of labour. But there are always local services that cannot be traded between countries and so, in the natural state, unemployment in each country is low. There are four factors that push up the unemployment rate: ● the minimum wage, which causes employers to reduce or cease operations in a given country, owing to increased expenses but no corresponding rise in productivity; ● high taxes on income, including employer and employee social security taxes; ● means-tested benefits, which result in people tending to prefer benefits over employment; ● poor education, which means that the person is unemployable for the types of work that he or she could otherwise do in the world marketplace. Because of these factors, unemployment rates across the world are typically around 11%, instead of 3%. All the minimum wage does is to create a trade-off between having more people in employment and having fewer people in employment but with better pay. In my view, it is better to have more people in employment. For young people, the effects of the four factors mentioned above are disastrous. These government policies typically increase the unemployment rate for the young to around 20%-25%, and as high as 50% in some countries. The unemployed

What causes high unemployment, and what does this mean for the future? For Shyam Mehta, the outlook is bleak youth sits at home with nothing to do except watch television, and at risk of rapidly degenerating into a zombie-like state. Unemployment is completely disheartening for anyone, let alone young people. They lose all faith in humanity, their love of life is destroyed, they become senile – which has nothing to do with age, but is simply a result of lack of use of the brain – and they lose their health. By supporting the minimum wage, this is what the media and the politicians are, in practice, encouraging. Poor education, also the effect of government policy, is leading to approximately 95% of young people becoming disaffected, and subsequently developing other poor health issues and habits. Even if they are lucky enough to get a job, they are likely to lose it or be off sick. It should be noted that, from an economic rather than a financial point of view, the real economy is not in recession now – it is normal. Utility functions are normal, and

“Government policies typically increase the unemployment rate for the young to around 20%-25%”

further analysis that I have conducted, shows that people are generally happy with their current levels of income, and that they value leisure activities just as much as income from work. Unemployment levels of more than double the free-market level are caused largely by unemployable young people, who cannot do either office or manual work, and who do not have a trade. This may be due to poor health and a lack of education, caused by various factors that had not existed for older generations. If the trends in unemployment and inactivity rates that have been seen over the past two decades continue into the future, together with a further deterioration among young people as schooling gets progressively worse, then unemployment could be over 30% in 20 years’ time. A change in policy is urgently needed. Shyam Mehta is a former investment banker and insurance risk practitioner who has studied financial markets and economics for 47 years. He writes on a variety of topics including financial economics, life insurance, pensions, general insurance and investments.

THE ACTUARY • August 2014 www.theactuary.com

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SATURDAY 30 AUGUST

SIAS Sports Tournament 2014 PlayOn Sports 100 Prestons Road Wood Wharf London, E14 9SB Nearest station – Canary Wharf/Blackwall From 10am onwards

SOCIAL EVENT

Join the SIAS sports tournament for something a little different this year and compete against fellow actuaries and friends, in five-a-side football, mixed netball and dodgeball all in one day. • There will be 16 teams, split into two groups. • In each sport, all eight teams will play each other, with the first and second placings for both groups in each sport progressing to the finals. • The winners of each sport will be presented with trophies and prizes. Places are limited and will be offered on a first come, first served basis. Email social@sias.org.uk to register your team with the following information: a) Team captain name, SIAS membership status, mobile number and email address; b) Names of players and SIAS membership status; c) Team name. If you do not have enough players to form a team, email us and we will try to allocate places. Entry is £15 per person for SIAS members and £20 per person for non-SIAS members. Teams must have a minimum of five players and can be mixed – there are no rules on gender split. Please note, refreshments will not be provided, but the venue has a bar with food options.

TUESDAY 2 SEPTEMBER

The need for change in economic theory By Andrew Smithers Staple Inn Hall High Holborn London WC1V 7QJ Refreshments 5.30pm Lecture 6pm

PROGRAMME TALK

Andrew Smithers is a leading expert on financial economics and global asset allocation who has helped pioneer the application of academic analysis of financial economics to the field of investment management. Andrew has 45 years’ international investment experience, including 20 years as head of his own investment consultancy firm, Smithers & Co, where he works currently. As well as contributing regularly to his blog on FT.com, Andrew has co-authored various books on the subject of international finance. These include The Road To Recovery: How and why economic theory must change (2013), which argues that the bonus culture of US and UK public companies is weakening investment and slowing the economic recovery. It is the ideas expressed in the latter publication that will form the basis of Andrew’s SIAS lecture on 2 September. Refreshments will be served and the lecture will start promptly at 6pm. There is no need to register in advance for this meeting and non-members are welcome. There will be live tweeting available via #SIASSep14 during the talk – please do get involved with any comments and questions for the speaker.

MONDAY 13 OCTOBER

Welcome drinks Save the date!

TUESDAY 21 OCTOBER

Annual General Meeting and Jubilee Lecture

MORE EVENTS ONLINE For details of events, visit www.sias.org.uk

SOCIAL EVENT

This event is a great way for new members of the profession to learn more about the Institute and Faculty of Actuaries, SIAS, and the route to becoming a qualiﬁed actuary. It is also an ideal opportunity for new students to get to know each other, while enjoying the free drinks, buﬀet and entertainment. If you have recently joined the profession as a student, or your company is expecting new graduates to join this autumn, then please spread the word.

AGM

Join us at Staple Inn for the SIAS Annual General Meeting and Jubilee Lecture. We are very pleased to announce that speaking at this year’s lecture will be Steve Webb, Minister of State for Pensions, and Steve Groves, chief executive, Partnership. Further details will be published in due course.

SIAS IS ON TWITTER! Follow us on @SIAScommittee for latest news on meetings, socials and more!

SIAS IS ON FACEBOOK! Check out the SIAS Facebook page for photos from the latest social events

August 2014 • THE ACTUARY www.theactuary.com

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29/07/2014 09:26

News IFoA NEWS UPDATES FROM THE ACTUARIAL PROFESSION

Upfront Opinion CEO’s comment

New president addresses AGM

A move to non-traditional areas could help actuaries face tough times, writes Derek Cribb

The AGM of the IFoA was held on 30 June at Staple Inn. David Hare handed the baton of presidency to Nick Salter (pictured) and introduced president-elect Fiona Morrison. The results of the recent Council elections were announced and the report and accounts of the IFoA were formally presented. There are nine new Council members: Charles Cowling, Marian Elliott, Karen Grant, Andy Rear, Malcolm Slee, Mike Smedley, Mark O’Reilly, Cynthia Yuan and Feifei Zhang. Honarary Fellow Peter England attended and was presented with his certiﬁcate. Full details of the Council election can be found at bit.ly/IFoAElec2014 To watch Nick Salter’s presidential address, go to bit.ly/1n0kF38

Ahead of the curve Derek Cribb is the chief executive of the Institute and Faculty of Actuaries

It can’t be ignored that the actuarial job market is going through a challenging time, particularly in the UK. Indeed, many members reading this will have been personally affected or know someone who has. But how is your professional body responding to this challenging environment? During the past couple of years we have been responding to the realities presented by the employment market and sowing the seeds for change. We have built the profile of actuaries via our public affairs strategy so that employers across the financial sector and beyond, who may not have been aware of the benefits of the actuarial skillset, have a better understanding of the value actuaries can bring to their business. We have done this by continuously engaging with businesses in traditional and non-traditional areas to understand their needs so that the quality of our qualifications, our regulatory oversight, along with the support we offer our members and our continuing professional development remain attractive and relevant to the market. As Nick Salter explained in last month’s issue, it is vital for actuaries to be recognised for the skills they have rather than the areas in which those skills are applied. His theme of ‘diversity’ is vital: branching out into different types of businesses will enable actuaries to remain relevant. We look at the diversity of work that actuaries in countries such as Australia are engaged in and ask ourselves how can we learn from this. We can learn, but historically there has always been a factor that drives professionals out of their traditional low-risk/high-reward fields into new territories. Perhaps the UK market is witnessing the start of this ‘push’ imperative? By proactively promoting the actuarial skillset through activities and initiatives such as the risk management strategy and the creation of the Resource and Environment Board, the IFoA has been trying to get ahead of the curve so that it is a natural evolution for actuaries to work in non-traditional roles. Ultimately, it is up to members to make the most of the opportunities that do exist: pioneering members who have already moved to non-traditional areas are forging the path for future actuaries to expand into wider fields. The IFoA will do all it can to publicise the unique talents of our members. If you are interested in the future landscape of actuarial work and want to channel this interest by volunteering for your profession, please get in touch. Email debbie.atkins@actuaries.org.uk

DEREK CRIBB

Subscriptions and practising certificate fees Following agreement by Council, the subscription fees for 2014-15 are noted below. There has been no increase to practising certificate fees, which remain at £860. Subscription fees for 1 October 2014 are therefore as follows: Fellows (full regulation) £690 Fellows (partial regulation) £345 Associate (full regulation) £460 Associate (partial regulation) £230 Certified Actuarial Analyst £250 Student Actuarial Analyst £170 Student (UK/EU) £230 Student (overseas) £230 Affiliate £69 Reduced subscription (all categories) £69 Members can find further information on fees at bit.ly/1mRDeq0 Information on partial regulation can be found at bit.ly/1jMlgGM

THE ACTUARY • August 2014 www.theactuary.com

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29/07/2014 09:27

User testing for new IFoA website now complete Our new website development is progressing and a detailed programme of user testing has recently been undertaken to ensure that it meets the needs of members and stakeholders. Feedback has been positive and we are very grateful to all those testers who took part and were so generous with their time. Overall, the participants felt the site looked clean and uncluttered and that navigation, structure and newly written content were much improved. The new website will go live at the end of the summer. This is the ﬁrst exciting phase of ongoing digital developments at the IFoA. During the coming months we will be also be launching a Chinese microsite, which will contain region-

specific information and promote our members in the Far East. We don’t intend to stop there. In the next phase of development, after the launch of the new website, we will be making significant improvements to the search facility, reorganising more than 10,000 documents already on the site so that members see a noticeable improvement in search results. Other ideas for future enhancements include: ● Online collaboration tools ● Online forms ● Online networking tools You can find out more about the digital strategy and future plans at bit.ly/1jSUe0B B

‘Clean and uncluttered’: testers liked the new look

Five things to know about the 2014/2015 CPD scheme The 2014/2015 CPD Scheme, eﬀective from 1 July 2014, has been developed to clarify and simplify the continuing professional development (CPD) arrangements for members. Below are some of the key things members should know to help them understand what has changed and how to meet their obligations.

1. All professional and technical requirements come under CPD ‘umbrella’ Since the introduction of the professional skills training (PST) regime, our members have had to navigate two separate sets of rules to understand their professional development obligations. The 2014/2015 scheme makes it easier for members by bringing together the CPD and PST requirements under one regime, with one set of rules.

2. The CPD scheme applies to all members As we have brought the PST and CPD requirements together under one scheme, some members who had obligations under the PST (but not under the CPD regime) now ﬁnd themselves having to consider the CPD arrangements. We therefore needed to create some new CPD categories to ensure clarity for everyone. The CPD scheme clearly sets out the new categories together with the requirements of each in an easy-to-follow

format. Many members will ﬁnd that the changes impose no additional requirements upon them.

3. The scheme introduces a ‘retired’ category Another change is the introduction of a ‘retired’ category. You need to apply to be classified as retired and you can do so if you meet the criteria set out in the CPD scheme. If you are classified as retired you do not have an annual CPD requirement, unless you are in unpaid work that relies on your actuarial training and experience. You will also be eligible to pay a reduced subscription rate of £69. If you meet the criteria and would like to be classified as retired, please contact us at cpd_feedback@actuaries.org.uk

4. It’s now easier to focus your learning activities on areas that are important to you The scheme aﬀords you more freedom to select a balance of activities best suited to your learning needs and preferred learning styles. For example, in the 2014/2015 scheme, Category 1 members are no longer required to compete obligatory business skills/additional professional skills training – it’s up to them to determine what types of activities will be of most beneﬁt to them. For Category 2 members, completing private study was given less weight under the 2013/2014 scheme so they had to

complete more CPD if private study activities were counted towards their minimum requirement. Under the 2014/2015 scheme, private study is considered equivalent to other types of learning activities. Just remember to record a learning outcome.

5. Arbitrary reporting deadlines removed Historically we have asked members to make applications or report to the Membership team at certain dates throughout the course of the CPD year. Under the new arrangements, those arbitrary deadlines have been abolished and members can come to us at any time during the reporting year. All members received an email in June which highlighted how the 2014/2015 CPD Scheme aﬀects them. Full Scheme details and helpful guidance can be found at bit.ly/1mjLevI. If you did not receive your email or have any questions about these changes or how they apply to you, please contact us at cpd_feedback@actuaries.org.uk.

August 2014 • THE ACTUARY 11 www.theactuary.com

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News IFoA NEWS UPDATES FROM THE IFOA

Join the party for a taste of volunteering The ﬁrst two of our 2014 volunteer recognition parties were held on 26 June in Edinburgh and 10 July in London. More than 200 volunteers attended the two events, which included a speech from IFoA past president David Hare in Edinburgh and the incoming president Nick Salter in London. One guest said: “I thoroughly enjoyed the event, in particular meeting other volunteers and seeing the huge range of volunteer opportunities that people are involved in. The magician, chocolate fountain and drinks were very much appreciated. I was also very impressed by the speed and accuracy of the silhouette artist in creating a nice keepsake. One thing that the event has also very much done for me is to nudge me into wanting to get involved with the IFoA even more. I look forward to attending events such as these in the future!” The next party is being held in Birmingham, in conjunction with the Life Conference, on Monday 10 November. If you are an active volunteer and would like to attend this event, please contact Debbie Atkins, the IFoA’s head of volunteer engagement. Email debbie.atkins@actuaries.org.uk

Volunteer Sarah Bingham at the Edinburgh volunteer recognition party in June

Forum launched to tackle challenges of internal models

IFoA signs mutual recognition agreement with Israel On 16 June, ﬁve representatives of the IFoA arrived for breakfast in a quiet side street in Tel Aviv. Their destination was the oﬃcial residence of the British ambassador to Israel, Matthew Gould MBE for a seminar to mark the launch of a university actuarial course in Hebrew at Israel’s Magid Institute in Tel Aviv. By coincidence, a mutual recognition agreement between the Israel Association of Actuaries (ILAA) and the IFoA, which had been in preparation for some time, was also ready for signing. The document was signed by IFoA president David Hare in London prior to the event and by Ms Naama Hashmonai, ILAA president, at the event (pictured). Fellows and Associates of each body may now be granted equivalent status in the other body if involved in actuarial work in that country.

The IFoA was represented by David Martin, Trevor Watkins, Neil Hilary, Tony Hewitt and Alan Fishman, and Martin accepted a gift from the ILAA on behalf of Hare and the IFoA. The ambassador emphasised the links between the two organisations. The seminar continued with roundtable discussions on changes in the profession and the education of actuaries. The morning session was attended by senior Israeli ﬁnance ﬁgures, while the afternoon session included an audience of Israeli actuaries and students to discuss education, regulation, professionalism and widening areas of expertise. The pleasant garden and rooms of the residence formed a backdrop to a fruitful event, appreciated by hosts and guests alike.

The Internal Model Industry Forum (IMIF) was launched on 19 June and promises to be an important development in addressing the issues that insurers face concerning the use and validation of internal models. It will bring together senior risk and capital professionals, such as chief risk officers, heads of risk, model validation or capital, as well as other relevant stakeholders such as the Prudential Regulation Authority, the Association of British Insurers, the IFoA and key consultancy firms. Delegates at the launch event heard from Mark Chaplin, group enterprise risk director at Aviva plc, Vishal Desai, manager, general insurance risk specialists, at the Bank of England, Ian Marshall, chairman of Markel International and senior advisor at the Bank of England Prudential Regulatory Authority, and Jose Morago, group risk director at Aviva and deputy chairman at The Institute of Risk Management (IRM). The forum is supported by the IRM and the IFoA is represented on the steering group. We are keen to ensure there is broad input from a range of general insurance and life practitioners. For details of how to join the forum, go to bit.ly/1pdu0Dm. Although insurance companies are producing good evidence to support the validation of models, there remain a number of challenges as to how to embed them in decision-making, get the right visibility at the board level and build trust through a well focused and cost-effective validation framework. The IMIF will tackle these questions and produce an industry view of best practices and the level of maturity around the use and validation of internal models.

THE ACTUARY • August 2014 www.theactuary.com

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EVENTS AND Spotlight on GIRO CONFERENCES GIRO Conference, 23-26 September, Celtic Manor Hotel, Newport

NED event: Evolving appetite for risk 8 September Staple Inn Hall, London 17.00–19.30 The theme of this meeting will be ‘Evolving appetite for risk and the board’s reaction to this’. The crucial part of the debate will be to understand some of the less well-deﬁned risks that directors and, in particular, non-executive directors are now expected to consider. For more information, visit: bit.ly/TN6ROE

Practical Solvency II for life actuaries 9 September 09.00-17.00 This seminar looks at how companies are preparing for Solvency II and outlines the road map, and obstacles, to its eﬀective implementation. The seminar will have a UK and European focus. For more information, visit: bit.ly/1qCAtJ4

The International Mortality and Longevity Symposium 15-17 September

The theme for GIRO 2014 is innovation and the subject will span the many general insurance areas where actuaries are pushing boundaries – pricing recalibration, the future consumer, reserving judgment, tomorrow’s model, working practices, diversity and next year’s leaders to name but a few. The hottest topics will be ‘sold’ on stage so that you can choose those that will beneﬁt you the most. Thought-provoking plenaries will be supported by over 50 challenging workshops, with presentations from leading insurance and actuarial ‘brains’ as well as esteemed colleagues from wider industries. Continuing professional development, both technical and professional, will be available in abundance! In a ﬁrst for GIRO, we will be joined by the governor of the Bank of England, Mark Carney (pictured), who will be giving a keynote address. You will also have the unprecedented opportunity to ask him direct questions.

Look out also for presentations from Inga Beale, chief executive at Lloyd’s; Bronek Masojada, chief executive at Hiscox; JayneAnne Gadhia, chief executive at Virgin Money; Andrew Smith, partner at Deloitte; and – not to be missed– author and philosopher Alain de Botton giving his views on the ‘Ever-changing world of work’. The technical programme will be supported by many social, entertaining and interactive sessions, all designed to enhance your networking opportunities. All this and the magniﬁcent Celtic Manor resort set in beautiful grounds make GIRO 2014 the event to attend! For more details of the event programme, visit: bit.ly/1sXnxyV To book your place at this year’s GIRO conference, visit: bit.ly/1mdjLvx or contact Steve Whalley, IFoA event manager, at steve.whalley@actuaries.org.uk

Birmingham For details and to book, visit: bit.ly/1l3UoBo

Model documentation workshop 7 October London, 09.00-12.00 Good quality model documentation is an essential part of daily actuarial work. Representatives from the PRA, audit and from actuarial education share their views on what good-quality model documentation looks like. This seminar is particularly beneﬁcial for those less familiar with CA2 or Solvency II and for those interested in PRA, internal audit and actuarial education insights. For more information, visit: bit.ly/1tLJ6q5

SAVE THE DATE Life Conference 9-11 November ICC Birmingham For more information, visit: bit.ly/SBQxyQ

Momentum 2014 3-5 December Edinburgh International Convention Centre For more information, visit: bit.ly/1mLpw48

Visit the members’ lounge at our new Edinburgh offices

đƫ Relocated library resources đƫ Wireless internet access đƫ Private booths đƫ Open tables for group work đƫ Self-service tea and coffee points

Level 2, Exchange Crescent, 7 Conference Square, Edinburgh EH3 8RA. Tel: 0 131 240 1300

www.actuaries.org.uk

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29/07/2014 09:28

News People & Society

If you have any newsworthy items for these pages please email social@theactuary.com

Hill climbs into lead at Master’s golf day By Martin Miles For the fourth year in a row, the Master’s Golf Day, organised by the Actuaries Livery Company, was held at the Effingham Golf Club on 18 June. Open to all actuaries and their partners, 18 golfers teed off after lunch for an 18-hole stableford competition in what turned out to be a gloriously sunny afternoon and evening. The day was finished off with drinks on the patio and then supper and prize-giving in the club house. The competition was won by Stuart Hill, who

Cambridge winners chosen The 2014 Thomas Bond Sprague Prize has been awarded jointly to T Assiotis of Trinity College, and T B Berrett of Gonville and Caius College for distinguished performance in the 2014 Master of Mathematics/Master of Advanced Studies in Mathematics examinations, in the areas of probability, statistics and ﬁnance. The Sprague prize commemorates Thomas Bond Sprague (1830-1920), the only person to have been president of both the Institute of Actuaries in London and the Faculty of

Actuaries in Edinburgh. Sprague was Senior Wrangler and Smith’s prizewinner at the University of Cambridge in 1853. He had a most distinguished career in the actuarial profession, becoming actuary to the Equity and Law life insurance company, and chief executive of the Scottish Equitable Life Assurance Society. The prize is awarded at the University of Cambridge in the subjects of actuarial science, ﬁnance, insurance, mathematics of operational research, probability, risk and statistics.

Where is expert judgment needed? The GIRO Getting Better Judgment Working Party is looking to understand current industry practice and needs in relation to expert judgment. The online survey https://www.surveymonkey.com/s/8LLL393 has a deadline of 20 August; results will be presented in the Working Party workshop at the GIRO conference in September. Responses from working general insurance actuaries from anywhere on the globe would be highly appreciated. Senders of the ﬁrst ﬁve informative responses will each receive a copy of Daniel Kahnemann’s international bestseller Thinking Fast and Slow.

scored an impressive 35 points. Close on his heels was Rosemary Derby, followed by Martin Miles and Yan Liu. Stuart and Yan were two of the four actuaries playing with the Livery Company golfers for the ﬁrst time. The longest drive prizes for men and women on the 17th went to Jeﬀ Medlock and Rosemary Derby respectively, and closest to the pin on the 7th went to Lindy Clay. The Master’s Cup for the best score by a Liveryman was won by Martin Miles. Stuart Hill was congratulated on his victory by the Master, Charles Cowling (left).

Biography launch A biography of the late Professor Alfred Hurlstone Pollard, The Kid from Norfolk Island – the story of the remarkable Alf Pollard, was launched at an Actuaries Institute cocktail party held at the Amora Hotel Jamison Sydney on 12 March. In attendance was the former prime minister of Australia, the Honourable John Howard (who contributed the foreword), along with the author, professor John Croucher, members of the Pollard family and invited guests. Professor Pollard is widely acknowledged as one of Australia’s most outstanding actuaries, having made particularly important contributions in the ﬁeld of actuarial education. He was president of the Institute of Australia in 1955 and was awarded Life Membership in 1987 in recognition of a long record of distinguished service to the Actuaries Institute and the actuarial profession.

Andrew O’Brien receives award for marathon year The Worshipful Company of Actuaries is delighted to announce the winner of this year’s Phiatus Award, for an actuary who has made an outstanding contribution to charity through their efforts. This year’s winner is Andrew O’Brien who completed 12 marathons in 12 months (12-in-12), raising over £10,000 for the ISIS Foundation. The Phiatus Award was established in 2012 using a legacy from an actuarial dining club. It is run by the Worshipful Company of Actuaries and The Actuary magazine with the

intention of encouraging members of the actuarial profession to increase and publicise their charitable activities. Each year, so far, the number of nominees and their achievements have grown, and we are delighted to make this year’s award. The ISIS Foundation is a charity that works together with communities and children in remote areas of Nepal and Uganda to improve their lives through health, education and other development projects. They would be very grateful for any further donations. www.isisgroup.org

THE ACTUARY • August 2014 www.theactuary.com

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29/07/2014 09:29

LIKE US ON FACEBOOK www.facebook.com/ TheActuaryMagazine

See how the ‘other halves’ live

Treasure found By Nicola Tooze The SIAS mystery event took place in May – a treasure hunt around Covent Garden. Sixteen teams took part in the challenge, using their smartphones to navigate to key landmarks and unlock their tasks, learning about the local history and stopping the odd celebrity for a selﬁe! This was followed by food and drink in a local pub, where teams shared their photographic evidence. Congratulations go to ‘Born Wanderers’ from

By Jacky Pendleton Barnett Waddingham, Waddingham who came third, third ‘Raider of the Lost Ark’, also from Barnett Waddingham, who came second and ‘Bear Left’ from Towers Watson, who topped the leader board with a massive 386 points. Thanks to all the teams who took part.

Land’s End to John O’Groats cycle By Phil Lloyd After almost a year of training, on 16 June we e completed the Land’s End to John O’Groats bike ride in 10 days. The he team of Steve Scott, Phil hil Lloyd, Kamran Umar, Paul Kelly and Toby Thomas was mostly made up of commuter cyclists who had rarely y cycled more than 20 miles in one go but through lots of training and sacrifice managed to get in a fit enough state to cover the serious mileage planned. Sleep deprived, legs aching, pains in the back and with mental fog each day, we dragged ourselves out of bed, gobbled up some porridge, guzzled down some juice and coffee then re-focused for another 90-100 mile ride to the next destination. Along the way, there were many punctures, bad jokes, near misses, small crashes, wildlife (dogs, cats, rabbits, deer, sheep, cows, birds of prey), tough climbs and amazing descents. The places we stayed were

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mostly very good but m unfortunately it was just a u case of recovery routine, à c food, à bed most nights. f Each of us had days where we just wanted to w give g up, but the support from Facebook, Twitter, text messages, donations to the charity page and all the other positive messages we received helped us back on the bike. We rarely argued, if at all, all and had ha a general rule that if you’re angry about something it’s most likely because you’re dehydrated/hungry – eating ﬂapjacks solves most problems (apart from obesity). As well as the personal challenge, a key reason for the ride was to raise as much as possible for Cancer Research UK. We have already surpassed our wildest expectations of the total so far, but any odd pound we can get on top will make a big diﬀerence. If you would like to make a donation, visit

mydonate.bt.com/fundraisers/muppets For more information about Cancer Research, visit www.cancerresearchuk.org

Births Congratulations to Matt (Towers Watson) and Kelly Wood on the birth of their daughter Elena Rebekah on 8 May

Deaths Mr Brian Wilfred DAWSON died recently, aged 78. He became a Fellow of the Institute in 1962. Mr Pyarally Ahmedally DOSSAL died recently, aged 87. He became a Fellow of the Institute in 1958. Mr Deryl Patrick TANDY died recently, aged 82. He became a Fellow of the Institute in 2005.

Those of you who have an actuary as a partner, wife or husband will know that part of their professional/social life involves attending seminars often coupled with dinners and events. ‘The Other Half Club’ offers you the same opportunity for socialising with like-minded people who understand what it’s like being the ‘other half’ of an actuary. We welcome new members to our club, which contains a wide variety of personalities and hosts a broad range of events. This year in January we visited the Ice Sculpting Festival in East London and saw beautiful art work sculpted by teams from around the world. We then all had lunch at One Canada Square restaurant. In March, we toured the Old Bailey followed by dinner, again in a private dining room on the premises. We admired the superb paintings, particularly the wall frescos and murals on the ceilings. We were lucky to be hosted by the sheriff of the Old Bailey, whose wife is an ‘other halfer’. In May, we took our annual London walk, which this year was around Smithfield Market, with lunch on the top floor of One New Change. Robin Michaelson, an actuary, and now also a qualified London guide, led a gentle and interesting sortie into old London. Most recently, we met at Brixton Prison for a visit to The Clink restaurant, and enjoyed the high cuisine of some of the offenders who are training to achieve a qualification. The restaurant and food are of an extremely high standard and we spoke to some of our hosts about the opportunities that these skills might give them when they re-join the community. We may stage a Christmas event at The Clink to which we could invite our other halves. More news on this will follow soon. Other events for this year will include lunch and a visit to see War Horse at the London Theatre, and dinner at the Café du Marche, and in 2015 we have a number of ideas for events that will provide a unique opportunity for us all. If you are interested in joining us or for further information on the club, please do get in touch. We look forward to seeing you. Email: theotherhalfclub@gmail.com or phone Jacky Pendleton (chair) on 07768 200539 or Lesley Birse (secretary) on 01689 836392

We would be delighted to hear from you if you have any newsworthy items for these pages. Please contact Yvonne Wan at social@theactuary.com

August 2014 • THE ACTUARY www.theactuary.com

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› GENERAL INSURANCE

NEWS ROUND-UP

UK insurers regard Solvency II as ‘a necessary evil’

FCA: price comparison websites ‘not always fair’ Some price comparison websites in the general insurance sector are failing to meet consumers’ expectations and, in some cases, regulatory standards, the Financial Conduct Authority (FCA) has warned. In a thematic review, the FCA looked at 14 price comparison websites, covering private motor, home and travel insurance. It found that the websites did not always give consumers the appropriate information to help them make informed decisions. The FCA said it was worried that consumers’ focus on headline prices and brands when using the websites could distract them from crucial product information such as policy coverage and terms. FCA director of supervision Clive Adamson (above) said price comparison websites provide an important service for millions of consumers. “However, our review found that they were not meeting our requirements in delivering fair and consistent outcomes for consumers. We also found, through our consumer research, that consumers had misconceptions about the services they provided.” See more at: bit.ly/1pFmWzF

Treasury issues Insurance Bill The Treasury has published an Insurance Bill to reform and update insurance law and boost growth in the industry. The Bill follows Law Commission recommendations, published on 15 July, which suggested changes in four areas of insurance law. The Bill will modernise 100-year-old rules governing contracts between businesses and insurers by increasing transparency and certainty, in a bid to reduce the number of legal disputes over time. However, the Treasury excluded one of the commission’s recommendations, which would have given claimants the ability to pursue damages for “unreasonably” late payments. The recommendations included in the Bill: place the duty on business policyholders to disclose risk information to insurers before entering into an insurance contract; abolish the “basis of the contract” clause, which has the effect of converting pre-contractual information given to insurers into warranties without further discussion; and provide the insurer with clear, robust remedies when a policyholder submits a fraudulent claim. Alexis Roberts, a partner in the insurance team at law firm Pinsent Masons, said: “Insurance contract law has needed updating for many years, and this programme of development is definitely welcome. There are challenges for insurers as a result, however. They will need to make sure policy wordings are updated to make sure they are more explicit about the types of risk that might be excluded in the event of a claim.” See more at: bit.ly/1mknlUF

THE ACTUARY • August 2014 www.theactuary.com

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The European Union’s upcoming Solvency II capital rules are viewed “begrudgingly” by UK insurers and considered a “necessary evil”, according to a survey by audit and advisory firm Grant Thornton. In a poll of 77 senior executives, including chief actuaries and chief risk officers working in the UK general, life and health insurance markets, Grant Thornton found that almost two-thirds (65%) believed the value added by the new requirements would not justify the expenses incurred. Three-quarters considered the costs of Solvency II to be disproportionate, while only 6% of respondents believed the costs to implement the new regulation were reasonable. Simon Sheaf, head of actuarial and risk at Grant Thornton, said: “Increasingly, the sector is begrudgingly accepting Solvency II as a ‘necessary evil’ and recognising that it will bring some benefits. “However, it is clear that they do not believe that those benefits will be significant enough to justify the costs. “The volume of work and resources that have gone into preparations for Solvency II compliance have been outstanding and insurers have substantial reservations regarding the impact this has had on their business.” See more at: bit.ly/1r8nnUV

ABI calls for clearer insurance renewal process The Association of British Insurers (ABI) has proposed a new minimum standard of information that would make motor and house insurance renewals easier and clearer. The trade association has written to the Financial Conduct Authority (FCA) making two suggestions that would further improve clarity for customers when renewing and taking out insurance. These are: the inclusion of the last year’s premium in renewal documents so a price comparison can be made; and a clear explanation that any introductory discounts may no longer apply. The ABI cited a survey of over 2,000 adults, which found that a large majority (89%) would like to see the last price they paid for insurance

printed on their renewal documents. Responding to the letter, the FCA said: “We welcome the ABI’s contribution to the debate on helping consumers make better decisions at renewal time. We already have various pieces of work under way in this area and will continue to work with the industry as this develops. “We will report back on our work in 2015, but we would encourage firms to develop innovative solutions that will benefit consumers in the meantime.” In February, consumer group Which? also called on insurance companies to show last year’s premium alongside renewal quotes and explain any differences. It said that without this information people lacked incentives to shop around. See more at: bit.ly/1kU5RPx

MORE GI NEWS ONLINE For further GI news, visit www.theactuary.com/news

GETTY

29/07/2014 09:30

News Industry news@theactuary.com

Osborne promises pension savers independent advice Millions of pension savers are set to receive free and impartial guidance on retirement options from independent organisations rather than scheme providers Setting out the government’s response to the consultation on pension changes on 21 July, chancellor George Osborne confirmed his intentions to go ahead with the reform, seen as the biggest change to how people access their pension in almost a century. He said the guidance would be offered through a broad range of ways, including web-based, phone-based as well as face-to-face channels. The advice will be delivered by the Money Advice Service and The Pensions Advisory Service. From April, the government will also allow savers to take out their money from their pension pots when they reach the age of 55 and spend it as they see fit. Tax penalties will be reduced on those who withdraw their savings in a lump sum and will be subject to marginal tax rates. Osborne also confirmed that changes will be made to allow individuals to transfer from private-sector defined benefit (DB) schemes to defined contribution (DC) pension schemes, although there would be a new requirement for individuals to take impartial financial advice before a transfer could be accepted. Association of Consulting Actuaries chair David Fairs said the government’s decision on DB to DC transfers was a “sensible and pragmatic solution”. Fairs said: “Banning private-sector DB to DC transfers – one of the options in the consultation paper – would have put UK plc at a huge commercial disadvantage with Europe as it would effectively have locked companies into funding for buy-out.” See more at: bit.ly/1jUQVFE

Law Commission urges trustees to take long-term investment approach Pension fund trustees have a duty to plan and invest for the best realistic return over the long term, not just short term, according to a report from the Law Commission

TPR issues public service pension board guides The Pensions Regulator (TPR) has published two “quick guides” to help public service pension schemes comply with new legal governance standards. Under the Public Service Pensions Act 2013, schemes must appoint pension boards to ensure governance and administration standards are adhered to. bit.ly/1jV1fxu

Deferred state pension increase cut to 5.8% The state pension enhancement enjoyed by people who choose to defer taking the payment is to be cut by almost half, the government announced today. Currently, the government encourages older people to postpone claiming their state pension by adding 10.4% onto the payment for each year deferred. But for anyone hitting the state pension age from April 2016, this rate will fall to 5.8%. bit.ly/1kTzGzP

The government asked the commission to clarify the law on pension trust investments following concerns outlined in the 2012 Kay review, which noted that uncertainty about their legal duties led investors to focus on short-term movements in share price to satisfy legal requirements for large pension schemes. David Hertzell, the law commissioner for commercial and common law, said: “The law does not prevent trustees from taking a long-term view when setting investment strategies. They are free to take account of environmental, social and governance issues over ethical factors where they are ﬁnancially material, or where the tests we have set out are satisﬁed.” The report also set out guidance for pension trustees on their legal duties and recommended that, in the long term, the Pensions Regulator endorses the guidance through one of its codes of practice. See more at: bit.ly/1rAjwmh

MORE BREAKING NEWS ONLINE Visit www.theactuary.com for up-to-date news and to register for weekly news alerts

AXA chief announced as ABI chair Paul Evans, group chief executive at AXA UK, has taken over as chair of the Association of British Insurers (ABI). Evans – who during the past four years at AXA has led industry engagement groups with government on motor insurance reforms and ensured member support on initiatives such as Flood Re – took up the post on 3 July. bit.ly/1kRVpH2

Government pushes on with defined ambition reforms The pensions minister is to press ahead with reforms to overhaul the private pensions market after results of a public consultation found there was widespread support for the introduction of defined ambition (DA) schemes. The Department for Work and Pensions published its response in late June. Pensions minister Steve Webb said the government was committed to developing DA and a Private Pensions Bill has been laid before Parliament. The bill will enable employers to develop shared risk schemes that offer more certain outcomes for workers, while keeping costs under control. The legislation will also allow the development of new collective pension (or collective defined contribution) arrangements based on risk-pooling models. David Hare, past-president of the Institute and Faculty of Actuaries, said more needed to be done to ensure the right structures were in place before DA becomes law: “More work is required from the financial services industry, all areas of the government and employers to ensure that the right regulation, legislation and incentives are in place before DA and shared risk schemes can become a reality.” See more at: bit.ly/1rD5H3v

Mercer and Zurich team up to offer longevity hedge Mercer has partnered with global insurer Zurich to launch what they claim is a “unique” longevity hedge product for smaller and midsized defined benefit (DB) schemes. The “streamlined longevity solution” is aimed at DB schemes with pensioner liabilities of £50m or more. Historically, the complexity and advisory costs associated with a longevity hedge have meant their use in pension scheme de-risking has been restricted to larger schemes with £1bn or more in liabilities. Mercer said insurers and reinsurers have found quoting on smaller schemes too expensive owing to the high transaction costs involved and the complexity of each speciallymade deal. The new hedge product has been designed to allow schemes to combine their fiduciary management, actuarial, administration and governance services more easily, the firm said. Alan Baker, Mercer’s head of DB risk, said: “Demand for DB de-risking solutions is increasing... We have pre-agreed hedging terms with a panel of reinsurers fronted by Zurich, to allow clients access to the best prices because getting them competitive deals is crucial.” See more at: bit.ly/Us2Y1l

August 2014 • THE ACTUARY www.theactuary.com

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29/07/2014 09:31

On my agenda features@theactuary.com

Bowled over Having been one of the most inﬂuential regulators in the European Union, Sharon Bowles speaks to Mark Dowsey about her many achievements and how she believes actuaries can engage in policy debates in Europe

Sharon Bowles is a Liberal Democrat politician, a former member of the European Parliament (MEP) for the South East of England, and was the first British chair of the European Parliament’s Economic and Monetary Affairs Committee. She has been described as the most influential Briton in the development of European Union policy, and as one of the top 10 most influential regulators in the EU. She was also shortlisted for the role of Governor of the Bank of England in 2012. Bowles is now moving on to new challenges. Her husband, Andrew Horton, is about to retire and together they are disposing of their patent attorney business. Despite not standing for re-election in the European elections this year, she shows little sign of wanting to rest up. She has maintained a busy schedule of speaking events, and has half an eye on a “US tour”. This amounts to ‘slowing down’ compared with the frantic activity she has sustained over the past five years. No wonder then, when pressed on her desired super-power, Bowles opted for the ability to slow down time. The Actuary recently met up with her to discuss the many facets of a political life.

THE ACTUARY • August 2014 www.theactuary.com

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PETER SEARLE

29/07/2014 09:32

August 2014 • THE ACTUARY www.theactuary.com

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29/07/2014 09:32

On my agenda features@theactuary.com

How did you get to the position of chair of the Economic and Monetary Aﬀairs Committee (ECON) in the European Parliament? It was totally accidental. I had been interested in politics from the time of Margaret Thatcher and the recession of the early 1980s. I was upset, however, at the divides in industry that it caused. I also felt there weren’t enough people from science and technology involved in politics. So, rather than sit and complain, I decided to do something and became more engaged in political issues. As a chartered patent attorney, and having a technical background in analysis and numbers, it seemed to come quite naturally to me. Coming from a profession where you have to satisfy the rigours of both law and engineering in what you’re describing, being able to draft, express and write amendments was also something that came relatively easily. So, being a patent attorney is a very good background to going into politics.

Why did you then move from there to chairing the committee? Did you put yourself forward? No, that’s not how chairs work. The chairmanships are shared out between the parties on a proportional basis determined by their relative strengths, so it’s no surprise that the larger groups like the socialists and the European People’s Party get their ﬁrst pick of the chairs. The Liberal Democrats

were oﬀered ECON and we sent it back twice saying, “no, we want civil liberties”, but others wanted that. So there was quite a lot of argy-bargy. It was much more that the ﬁnger of fate was pointing at me.

During the past five years, what would you say was your greatest achievement? We took 60 pieces of co-decision legislation through to completion, from start to finish. Financial services accounts for a little over 30 of those pieces of legislation, with some really big items in it, such as the Capital Requirements Directive (CRD) and the Markets in Financial Instruments Directive (MiFID), but we were also working on Solvency II and all the derivatives legislation in the European Market Infrastructure Regulation (EMIR). Plus we have the governance legislation through the so-called ‘six-pack’ and ‘two-pack’ fiscal surveillance part of the Treaty on Stability, Coordination and Governance, which are very intrusive into what member states can do with their budgets.

Presumably, it would be wrong to say that it was the quantity of legislation that you are proud of? Well, there are individual things, but it’s very difficult to single out a particular piece of legislation. CRD was very important and both MiFID and EMIR were extremely important. If you are looking in the context of the EU, then everyone is always going to say the creation of the banking union and the single supervisory mechanism are major achievements; it depends on your perspective. In the UK, the focus is financial services, if you are in the Eurozone it was initially the six-pack and so on, and then the banking union. It’s a puzzle that all fits together and all pieces have to work, so what I’m proud of is that I’ve been down and dirty in the detail of every single piece of it.

Did the interesting discussions happen behind closed doors? Televised debates did not seem to discuss matters in depth. Yes, that’s right – especially during hearings, when there isn’t actually any time allocated to make speeches. But the work is not unseen – all texts are available, with all of the amendments, the results, and even the trialogue tables and compromise amendments – all the European Parliament’s work is public.

How do you avoid ending up with a no-win compromise? It’s easy to say that and that’s what to expect, but I think we’re rather more

THE ACTUARY • August 2014 www.theactuary.com

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29/07/2014 09:32

sophisticated than that. We are pretty good at finding compromises that are nevertheless strong. With MiFID, we implemented some strong rules on how high-frequency trading is done. If you look at capital requirements, the European Parliament was good at bringing in elements to foster growth – all the changes that I promoted on trade finance and so forth. The purpose of financial services legislation is that you should feel you have been made a little more constrained. Of course, industry jolly well ought to feel a little bit nipped, but not savaged, and I think getting that balance right actually fits quite well with the European ethos.

Should actuaries be looking to inform the debate? Are there ways in which we should be doing more to engage with policy makers? You shouldn’t be afraid of being technical. Not every MEP wants to or is capable of being highly technical, but there are some and you should share that knowledge. There is often a problem when the technical work goes to lawyers and the public affairs people, and by the time it re-emerges you are presenting a ‘this is a truth, this is how it must be’ and you’ve lost all the reasoning. If something is not understood then it won’t succeed. If you have a genuinely good case then it is usually listened to, especially when it affects real people and the real economy. That’s where the European Parliament resides – asking ‘What is the end effect on our constituents?’.

ECON supported the request from the European Insurance and Occupational Pensions Authority and other European supervisory authorities (ESAs) to extend their powers to include direct intervention in institutions in a particular member state. Does that render national competent authorities (NCAs) superﬂuous? I don’t think you’ll ever render NCAs superﬂuous, or not for a long time. Maybe, ultimately, they will be absorbed into a network like the single supervisory mechanism, with banking supervision under the European Central Bank. However, the ESAs are quite small and the rulebook is still not a handbook in terms of the progression of detail.

“You shouldn’t be afraid of being technical. Not every MEP wants to or is capable of being highly technical, but there are some and you should share that knowledge” What consideration has ECON given to the possibility that measuring the balance sheets of different financial institutions in relation to the same limited pool of financial instruments could create systemic risk? This is something that I have spoken about many times. I am concerned about loss of diversity. We have already lost too much equity. This is something the European Parliament has long complained about, including Solvency II. At the moment, everything is being run by central banks. The various stability boards are dominated by central bankers. They are as capable as others of group-think and they’re all moving in the same direction. They are very bank-focused instead of market-focused. They understand markets, but they don’t actually understand capital markets outside. Perhaps our next systemic crisis is central banks.

That’s all history. Going forward, what’s your next move? I’ll go over to the ‘dark side’ and do something in the industry. Realistically, it seems that non-executive roles will be the obvious route to go down.

How much forward-looking does ECON do regarding risks like climate change and food and water security?

I don’t think its job is to try to second guess actuaries and others. There are things that do crop up. If we were looking at what we put in MiFID, then having position limits on You’ve publicly stated that a lesson to be learned from commodities was all to do with food security in the sense of Solvency II for the revision of the Institutions for Occupational Retirement Provisions Directive (IORPs) was not having inflated prices. ECON also considers that more information should be included in the Level 1 text sustainability, both in an economic and climate change sense, so it makes amendments that have a specific objective. and not left for Level 2. Can you explain that a little more? Maybe now there should be some more geopolitical It was a problem everywhere. Our first discovery that it was a problem was on MiFID 1. Level 2 came along and it wasn’t considerations. Everything is now done through globalised what we’d expected and was sent back. All the time we were banking, and geopolitical awareness has gone by the board. working on Solvency II, we kept referring back to that experience, saying it’s very difficult for us to fix the Level 1 I told my seven-year-old son that I was coming to see one of text until we see where we think you’re going to be going on the most powerful people in Europe, so he wanted to know Level 2. When it is completely new legislation, it is quite what super-powers you have. So, if you could have a difficult to frame those policy objectives and choices until super-power, what would it be? you’ve actually seen what they come up against in the During the past five years, the super-power that I would have technical work, and it would be ideal if we had some other liked would probably be a little bit of time to travel or a way of method of interchange that is not a complete revision of cloning myself. I think most other super-powers would lead Level 1 text but allows flexibility. to problems, wouldn’t they? a

PETER SEARLE

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August 2014 • THE ACTUARY www.theactuary.com

29/07/2014 09:32

Life Non-disclosure features@theactuary.com

BACKWARD IN COMING FORWARD Non-disclosure of medical conditions by life insurance applicants is nothing new, but what is the true cost of this to the life insurance industry? Paul Morden and Phil Brown explore further

Recent research has shown the prevalence of non-disclosure and the degree of deliberate concealment within the life insurance industry is far beyond expected levels. In many cases, the facts withheld relate to issues which were so severe that the application should have been declined outright. Treating Customers Fairly (TCF) guidelines limit the ability to reject – and in some cases even investigate – cases in which such non-disclosure is present. The research found one in seven claims arises from individuals deliberately choosing to non-disclose. This statistic is one of the key findings of a study to understand the benefits of using third-party medical evidence, which provides access to fuller information on applicants’ lifestyle and medical health, during the underwriting process. Our findings indicate that the industry is allowing the vast majority of customers to pay higher premiums to cover the costs of this minority group. Is this treating honest customers fairly?

What is non-disclosure? Traditionally, when applying for life insurance, customers are asked to disclose personal information such as their date of birth and gender, as well as answering 30 to 40 questions on their medical history, family history, lifestyle, pastimes and occupation. Non-disclosure occurs when the information provided is incorrect, and in many cases this can result in a policy being issued where it would have been otherwise rejected. It is understandable that individuals may, for example, forget a high blood pressure reading from 10 years ago, or miscommunicate complicated medical information. However, the analysis shows non-disclosure on conditions such as long-term alcohol abuse, long-term depression and even cancer. The omission of such conditions from an individual’s responses can only be considered as deliberate.

THE ACTUARY • August 2014 www.theactuary.com

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GETTY

29/07/2014 10:30

PAUL MORDEN (left) is head of pricing at Munich Re UK Life, and PHIL BROWN (right) is chief underwriting oﬃcer at Munich Re UK Life

Figure 1 below shows the lifestyle and medical history conditions that contribute to non-disclosure. The ones which are most commonly deliberately non-disclosed are smoking, depression/psychiatric disorders, and alcohol. There are a number of reasons as to why an individual may non-disclose, such as to obtain cheaper insurance premiums or simply because they were embarrassed to admit to certain conditions in front of an adviser.

What does it cost? If non-disclosure isn’t eliminated during underwriting and isn’t found or dealt with at the claims stage, then there is a cost which is paid for by increasing insurance premiums across the market. At first it may seem that this cost is small as only 7% of policyholders non-disclose, and an even smaller minority, 4%, deliberately non-disclose. However, the claims experience on such cases is obviously much higher than the average policyholder, running at four times or more the claims rate on a healthy life. These policyholders are also expected to show lighter lapse experience. Those who have successfully deliberately non-disclosed and gained a policy, are assumed to be unlikely to risk losing that cover by seeking a replacement policy elsewhere, even if the price is a little cheaper. Putting all this together for a typical portfolio of business, it is estimated that 17% of paid claims arise from all types of non-disclosure. Individuals who have deliberately nondisclosed on application make up the vast majority of these claimants, the equivalent of 14% of paid claims. This represents a significant cost to the industry and to the honest majority of customers who pay higher premiums to cover the non-disclosers. Insurers and reinsurers need to work together to eliminate this effect to ensure customers are treated fairly.

critical illness claims were declined due to non-disclosure 10 years ago, closer to 2% are now declined. Any reversal would understandably be met with resistance, with the industry having moved to its current position over a number of years in an effort to build consumer confidence. With restricted ability to eliminate non-disclosure at claims stage, the focus therefore needs to be on catching the nondisclosure through the underwriting process. The majority of customers will be underwritten by the insurer based solely on the answers disclosed on their application form. The industry has experimented with numerous approaches: warnings of non-payment on application forms, continually improving the application form questions, and in some cases using trained nurses to question the customers over the telephone via tele-underwriting. Ultimately, the research indicates that the industry has not found the perfect solution to eliminating non-disclosure. Obtaining further medical evidence at application stage helps. This already occurs where certain disclosures have been made on the application form, through random sampling or simply due to the size of policy requested. However the additional information is not always factual or comprehensive enough to identify all non-disclosure. For example, doctor’s reports, which are the most common source of medical evidence requested, only represent a summary of the applicant’s medical records, and in some cases the information provided can be influenced through the doctor’s relationship with the customer. A more comprehensive approach is to use the full medical records of customers. This is not subject to the limitations of a doctor’s report, but the challenge here lies in processing

Will we ever remove all non-disclosure? Despite the industry’s best efforts, our analysis tells us that we cannot rely solely on application forms to eliminate non-disclosure, especially where it is deliberate. In simple terms, catching one fraudulent claim from seven is likely to be an easier task than trying to identify the four fraudulent applications in every 100 received. However the difficulty in shifting claims philosophies is recognised. Obtaining the full medical records is an effective way of removing the vast majority of lifestyle and medical non-disclosure during underwriting, but limitations exist. Even full medical records may fail to capture certain risks such as smoking, visits to private doctors or simply symptoms or conditions that have not been reported to a doctor. Records may be limited for non-UK citizens or recent migrants to the UK, and, obviously, non-medical aspects such as hazardous pursuits will not be detailed. While it is unlikely that the industry will ever succeed in completely removing nondisclosure, a combination of good practices will be needed in order to ensure fairness to all policyholders. Obtaining full medical records, better application questioning and exploring the level and types of medical evidence available will all contribute to an improved risk management process. Getting the balance right means finding solutions that, in the context of the highly competitive UK market, are also cost-efficient and do not overly complicate the new business process. a

Figure 1: Types of lifestyle and medical history non-disclosure

How do we eliminate non-disclosure? Generally under TCF guidelines, individuals who have innocently misrepresented their situation at the point of underwriting are quite rightly viewed sympathetically at the point of claim, if the issue misrepresented was not a direct cause of the claim. However, a consequence of TCF has been that deliberate non-disclosure is now harder to prove at the claims stage as a result. This is reﬂected in the reduced declinature rates in published paid claims statistics. Where 10% to 15% of life and

and analysing the information accurately and eﬃciently. Each medical record can run to dozens of pages – some electronic and well-formatted and others simply electronic scans of handwritten doctor’s notes.

Depression and psychiatric disorders 19%

17%

Smoking Cardiovascular disorders Alcohol

2% 3%

Multiple non-disclosure conditions 16%

Diabetes Gastro intestinal disorders

BMI

Neurological disorders

15% 11%

Drugs Other

August 2014 • THE ACTUARY www.theactuary.com

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29/07/2014 09:33

Life Healthcare telematics features@theactuary.com

APPLIANCE OF SCIENCE 24

Oliver Werneyer asks whether actuaries can master the power of new technologies

THE ACTUARY • August 2014 www.theactuary.com

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29/07/2014 09:35

“Life actuaries who embrace more innovative solutions can fully integrate such policyholder behavioural information into product design and underwriting philosophies” Imagine you wake up one morning and hear: “It is the year 2054AD, and crime has been eliminated in Washington DC thanks to an elite law enforcement squad called ‘Precrime’. They predict a felony before it happens, and John Anderton heads the team in arresting criminals before they can commit the crime...” Relax, take a deep breath. It was only the movie, Minority Report, on your television. One aspect of the movie is how data is used in such an advanced way. We might not find ourselves in a world with predictive policing units, but it makes you think. Will we ever be in a position to predict crime? It is an actuary’s job to predict various events. The world has changed a lot, and never faster than in the past five years. We have seen the rise of social media, crowd-funding, wearable gadgets, telematics and the concept of ‘the quantified self’. The latter is the one actuaries should be most excited about, but also the most cautious. Its rise has come about through the partnership between technology and services that enable users to track aspects of their activity and health, and centrally store this data. Apple has just announced the HealthKit component to its operating system and Samsung is launching a similar service called ‘Sami’. Both of them cater for and prepare platforms for major expansion in this area. We have seen telematics in the motor insurance market for a while now, but life insurance companies are nowhere near this level of sophistication yet. Most of the companies who actually have some type of telematics offering have done so off the back of the medical insurance business they write, and combined it into a form of loyalty programme. One of the most successful and well-known examples of this is the Vitality loyalty programme. It is proof that activity data integration into insurance products is not only doable but also beneficial to the business and its policyholders.

Wearable devices alter behaviour The life insurance market is ripe for innovation, and wearable devices are a good example of an emerging technology that can spark a wave of developments in the market for life insurers to explore. Many published studies into human behaviour have shown that purely by monitoring or recording something about a person affects their behaviour. Whether the effect on behaviour is good or bad very much depends on the reason for monitoring, the incentives and what the insights are ultimately used for. So far, life actuaries have only had an indirect effect on policyholder behaviour, either

GARY WATERS/IKON

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through the initial underwriting protocol or through some form of loyalty programme. In future, life actuaries who embrace more innovative solutions can fully integrate such policyholder behavioural information not only into product design but also into underwriting philosophies, and can develop completely new product concepts. We could be looking at products where we underwrite a risk on a continuous basis, not only once upfront. What about products for people with chronic diseases with built-in protocol-adherence checks through devices? The technology can help previously uninsurable risks gain access to insurance at very reasonable terms.

Devices generate a lot of data Actuaries do love data. This is our life blood. It fuels our thoughts, our models, and it helps form expert opinions on longer-term risks. Actuaries are regarded as masters of data and extract insights from data. The problem is that, for the past 50-100 years, not much has changed with regards to the data life actuaries get to see – age, gender, smoker status, BMI, occupation, medical history, for example. With the revolution on the individual health monitoring front, we are seeing so much more information being recorded in new ways. This is exciting as it means actuaries are entering a period of opportunity and reinvention. Wearable technology is able to provide data in milliseconds. FitBit, a wireless-enabled activity tracker device, can identify age, gender, height (to estimate step length) and weight (most users record their weight). It also has application programming interfaces (APIs) that allow third parties to extract any data from the device once the customer enters their account credentials, similar to opening an account on a website using your Facebook login. This makes it very easy to submit the data, and also removes many legal obstacles around how the data was acquired, as the user has given express permission to use it. This means access to much more detail through these gadgets, compared with traditional underwriting. It includes sleep analysis (possible links to psychological and health concerns), weight-tracking, body measurements, activity information, dietary proﬁle and more. It can help improve the quality of information and reduce nondisclosure and fraud. It allows for more accurate measurements, and a continual check on data can be performed for a set period. This new data can be used to design new products and make better underwriting decisions.

OLIVER WERNEYER

is data and distribution leader, health and care, at Swiss Re

Consider someone applying for a policy with a BMI of 29.8. This makes them overweight and borderline obese. What terms would you offer them? Standard rates, load their premium or decline them cover? You have to make that decision based on the BMI measure at that point in time but the decision you make will last the entirety of the policy. Now imagine you could get their BMI values for the past six months. You could figure out whether this person has been losing weight (give standard rates), has maintained their weight (load premium) or has been gaining weight (decline cover), and use that to make a better underwriting decision. On top of this, you could get access to their activity data to separate those who are fit but have high BMI from those who are not and have a high BMI. This could have a massive effect on the accuracy of the underwriting decision and enhance the time it takes to arrive at this more accurate decision. The confidence you now have in your risk pool could also be significantly increased, meaning more accurate (and less intense) stress-testing can be performed to get a more reliable view on the portfolio risk. Experience buffers could be reduced on the portfolio, or a subset of lives, which could mean better premiums for your policyholders or higher margins for the business. Anti-selection in the portfolio could be reduced, because we would consider data collected over a period of several months rather than relying on responses on a single underwriting form. There are so many positive second-order effects that can lead to a better understanding of the risk pool and thus also better pricing of that risk. The possibilities for innovation are huge for those brave enough and entrepreneurial enough to explore the opportunities. Unfortunately, to solve the challenges that actuaries face will require equal amounts of both attributes, but it is certainly possible. There is also appetite in the market for new products (behaviourally assessed, individually monitored), underwriting philosophies (perpetual underwriting, probational underwriting) or risk assessment and management tools. We also need actuaries to develop new ways of thinking, to look at new data sources and to look at data differently. But, most importantly, we need actuaries who need to be challenged by change and inspired by other industries that have embraced these new data sources and technologies. Here’s to the future of the life industry and the role that actuaries can play in that future. a

August 2014 • THE ACTUARY 25 www.theactuary.com

29/07/2014 09:35

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Life Predictive analytics features@theactuary.com

William Trump and Paul Hately consider what is really achievable by using ‘big data’

The predictive power of data 28

THE ACTUARY • August 2014 www.theactuary.com

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29/07/2014 09:43

WILLIAM TRUMP (left) and PAUL HATELY (right)

work for Swiss Re in the Protection Partners team

Predictive analytics is nothing new, and has been playing a role in life insurance for over a decade. Life insurers have tried to emulate what banks and some general insurers were already doing with data. These companies use what they know about customers, such as purchase data, to derive a competitive advantage – for example by pre-approving customers for specific products, or by better targeting certain messages. One example of usage in life insurance is the analysis of banking and life insurance data from bancassurers to find new ‘predictors’ of health. These are then used to pre-select a group of customers for a targeted offer of life insurance with minimal underwriting. Today, amid the hype around the ‘big data’ revolution, it’s worth taking a step back, and revisiting the past 10 years to reflect on the lessons already learned about how to use big data to inform underwriting and other business initiatives.

Start with the end in mind – know what you want to predict This may sound obvious, but it is surprising how many people want to be ‘doing big data’ without having a clear business purpose in mind. They should start by asking “What are we seeking to achieve?”. The goal can vary hugely from one market to another: for one insurer, it may be that underwriting simplification is key, whereas another may find that it is retention that’s the real pain point. The reason it’s so crucial to define the aim is that it will hugely influence both what data will be needed, and how the analytics will be run. Some examples include: ● reducing the length of the underwriting process for healthy customers – in which case, predictive underwriting methods apply; ● differentiating on price based on the risk profile of the individual – typically done based on past claims data; ● aiming to achieve higher conversion rates on sales campaigns – where propensity-to-buy modelling or trigger-event marketing can be deployed; ● seeking to improve retention, where we use past data to build a propensity-to-lapse model – either to target better customer prospects at the point of sale, or to target retention efforts within the in-force book.

Be realistic about limitations Unfortunately, there are still a lot of wild promises about what is achievable through big data. The real world is far more constrained and some fairly strict criteria apply,

GETTY

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particularly when looking for health predictors. The strongest models are those built from scratch, on a bespoke basis. By definition, this means sufficient high-quality past data is needed. Bancassurers have invested heavily in getting their data to the point where it is an asset. As a consequence, they are now exceptionally well placed to take advantage of it. Typically, their wealth of past sales data – including underwriting decisions and claims – means that, when matched to banking data, unique insights can be learned by applying statistical techniques to the anonymised data-file. But even with banks, there can be vast data differences, whether it’s quantity of data or quality – such as the number of variables available per customer.

If you’re not a bank, it’s still worth doing something Not having perfect data is an easy excuse for not doing anything at all. This is a real mistake, for, as Eric Siegler puts it in his very helpful book, Predictive Analytics: The Power to Predict Who Will Click, Buy, Lie, or Die, “a little bit of prediction goes a long way”. Five years ago, people would ask whether they should be doing this type of analytics, whereas now they are asking how they can do this. This is a good sign. Even insurers with relatively weak data can – and should – be using it to make some improvement to their processes. The important thing is to ask what can be done – rather than what can’t – with what is accessible. A key question is about how diﬀerent types of data-sources can be used to predict health, purchase, or lapse. Table 1 shows our analysis.

Data doesn’t get you all the way There is sometimes the tendency for those working in predictive analytics to believe that, given the right data, perfect predictions can be made. Unfortunately, this is not the case. Models make mistakes and customers don’t always behave the way they are expected to. There will always be the customer with a low propensity to lapse who cancels their policy. Analytics can help improve the process, by removing redundant health questions for healthy customers, for example. However, strong sales methods and messages are still needed. Reliable results can only be expected when good analytics come together with strong sales or retention processes. The growing body of evidence emerging from the ﬁeld of behavioural economics is a helpful reminder that we are not as fully rational as we think we are – and as we claim to be. This should encourage taking a ‘test and learn’ approach to everything we do. Only then will the true drivers of customer behaviour be determined.

Lots of people talk about it – but few actually do it It’s easy to lose count of the number of industry events where the presenter has spoken about Google and Amazon and what they are doing with their data, but the life insurance industry is still very slow to react in actually making use of the data it has access to. Experience so far has proven that much can be achieved through matching life insurance data with other descriptive data in order to predict health, purchase or lapse. Some insurers have led the way on this, and hopefully many more will follow. a

Table 1: Databases and suitability for predictive modelling Database type

Suitability for predictive modelling

Agent/broker data

● Only suitable for predictive modelling if the data is held by all brokers in a

consistent way. Even then, questions remain on the depth of the data for each customer

General insurance data

● Suitable for predictive analytics for risk, purchase and lapse, but we ﬁnd that

Third-party databases

● These can provide very strong predictive powers in markets where the public

Loyalty card/ supermarket data

● This is expected to be as strong – if not stronger – than banking data. However,

this data is typically quite shallow, for example, only a few variables are held consistently on each customer – maybe 15-20 in total. We need to be realistic about the likely strength of a predictive model built this way

data source has good breadth – covers most of the adult population – and depth (has many data ﬁelds held on all customers) – such as in the US and UK

the challenge lies in convincing these providers to extract/share their data

August 2014 • THE ACTUARY 29 www.theactuary.com

29/07/2014 09:43

Business skills Data management features@theactuary.com

MEASURE FOR MEASURE A number of common misconceptions prevent the optimal use of data, argues Douglas Hubbard It’s been confirmed many times in many fields: even simple statistical models outperform human experts in a variety of forecasts and decisions. In a meta-study of 150 studies comparing expert judgment with statistical models, the models clearly outperformed the experts in 144 studies (Meehl, 1975). More recently, Philip Tetlock undertook a giant study to track more than 82,000 forecasts of 284 experts over a 20-year period. From this, Tetlock could confidently state: “It is impossible to find any domain in which humans clearly outperformed crude extrapolation algorithms, less still sophisticated statistical ones.” Many other researchers have studied the intuitions even fairly sophisticated managers have about interpreting data and they have concluded that “these intuitions are wrong in fundamental respects” (Tversky, Kahneman 1971). And there is far more research than the sources I cite here that concludes we are simply better off ‘doing the math’. But there are unfortunate misconceptions, which keep many managers from using powerful quantitative methods on key

problems. Perhaps first and foremost among these misconceptions is that some things simply aren’t measurable and, therefore, we can’t use a quantitative model to improve our judgment. For most of my 25 years in consulting, I’ve worked on seemingly intractable measurement problems. In 2007, I wrote my first book, How to Measure Anything, to address common misconceptions I encountered. Among my many clients in several industries, I find that many educated professionals seem to be susceptible to at least some of these erroneous beliefs. I once met a vice-president in IT at a large insurance company who told me: “Doug, the problem with IT is that it’s risky… and there is no way to measure risk.” I responded “What do you mean there is no way to measure risk? You work for an insurance company.” I believe I observed a man having an epiphany at that very moment. We happened to be in the area of the building where we were surrounded by actuaries, and he must have only then realised the irony in an opinion he may have held for quite some time. This is not an isolated story and risk is not the only thing that seems to defy

THE ACTUARY • August 2014 www.theactuary.com

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29/07/2014 09:49

DOUGLAS W HUBBARD

is president of Hubbard Decision Research in the US, and an internationally recognised expert in measurement and decision analysis

measurement to some people. Even actuaries succumb to the belief that some important things they might like to know are nevertheless immeasurable. I believe that the insistence that some things cannot be measured – especially some of the most important issues – is sand in the gears of the entire economy, as well as a detriment to decisions in government, medicine, justice, military operations, the environment and many other areas of our lives. Big decisions are not as informed as they could be, because values like quality, brand, collaboration, innovation and even risk are routinely dismissed as immeasurable. You, yourself, have probably accepted more risk of decision error because you believed, incorrectly, that something was immeasurable and you doubtless have been affected by the failure to measure by others in business and government. The fact is that I haven’t found a real ‘immeasurable’ yet. In the past several years, my staff and I have developed measures of the risk of a mine flooding, drought resilience in the Horn of Africa, the market for new laboratory devices, the risks of cyber attacks and the value of industry standards, to name a few. In each of these cases, something was perceived to be virtually impossible to measure and, yet, we showed that we can use informative observations to inform decisions. There are reasons why things are perceived to be immeasurable, and why all these reasons are mistaken. Here are a few of them.

Measurement doesn’t mean what you think it does Measurement is often perceived to be some ‘exact’ point value. But scientists eﬀectively treat it as observations that reduce uncertainty about a quantity. This is the deﬁnition I use and is the most relevant use of the term in decision-making. Suppose you have a wide range of possible values for a quantity – say, the adoption rate of a new technology, the percentage of people with a certain medical condition, or the awareness of

your brand in China. Then suppose you take a few observations, such as survey samples or controlled experiments, followed by some (usually trivial) maths, and now our range is narrower. This constitutes a measurement even though an ‘exact’ value is never reached. We use these new ranges to populate Monte Carlo simulations, to compute how much the remaining uncertainty aﬀects risk, and to determine whether further measurements are justiﬁed.

Define exactly what you are talking about When clients ask me to measure image, collaboration, productivity, or the value of an improved office environment, I first ask them what they mean, specifically. I ask: “What do you see when you see more of this thing?” After prompting, they start to identify a few anecdotes they’ve seen. Perhaps when they imagine improved ‘collaboration’, they imagine that people from different areas of the firm talk more. That’s at least observable. Perhaps they also mean product development teams reach goals faster. Good, that’s observable too. Then I ask: “Why do you care?” Measuring collaboration, for example, may help to identify the teams that are more likely to be successful in projects and, therefore, they can intervene when necessary. Being less ambiguous is a big help in measurement.

You need less data than you think you do A manager might say: “It would be great if we could measure this, but we just don’t have enough data.” This is usually a claim unsupported by actual calculations, and they often seriously underestimate how much uncertainty reduction they get from a small amount of data. We use Bayesian methods to update prior uncertainties with new data and, when these methods are used, managers will often be surprised how even paltry data has some impact on their decisions. Many managers believe that when we have a lot of uncertainty, we need a lot of data to measure it but, mathematically speaking, just the opposite is true. When you have a lot of uncertainty, you get a large uncertainty reduction from the ﬁrst few observations. I often say when you know almost nothing, almost anything will tell you something.

You have more data than you think you do Managers also greatly underestimate how much informative data they have access to.

GARY WATERS / IKON

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This sometimes comes in the form of the ‘uniqueness fallacy’ – the belief that only similar or even nearly identical examples are informative. Managers may claim that they can’t make estimates about implementing a new technology because it is so unique – even if they have a long history of doing so. Using that same logic, an insurance company couldn’t compute a life insurance premium because a given person is unique and because he/she hasn’t died yet. In fact, insurance actuaries know how to extrapolate from larger, more heterogeneous populations. Big data, social media, mobile phones and personal measurement devices are making the “we don’t have enough data” excuse much harder to justify.

Information has computable value, and results can surprise In our decision models, we routinely compute the value of information using some decades-old methods from decision theory. This usually generates surprising results for a client. The high-payoff measurements are not what they would have otherwise measured. The things they would have spent more time measuring are those that are less likely to improve decisions. This is a pervasive phenomenon we’ve observed in many industries and we call it the ‘measurement inversion’. It is not just that people measure the wrong things – they measure almost exactly the wrong things. A list of measurement categories sorted by how much attention they get historically would not just be different from a list sorted by information values. It would be nearly exactly inverted. I honestly can’t imagine how this would not affect the profit of any company or the GDP of any country. This simple set of calculations also shows that we need to measure relatively few things even in a big decision model with over a hundred variables (common in our business). You can, in fact, measure anything if you get past some common and deeply entrenched misconceptions. Corporations, governments and even the average voter and consumer will be better off once this is understood. a

Douglas Hubbard is the author of How to Measure Anything: Finding the Value of Intangibles in Business

August 2014 • THE ACTUARY 31 www.theactuary.com

29/07/2014 12:26

arts@theactuary.com

Arts

Anjali Sakhrani and Sonal Shah ﬁnd themselves on an electrifying journey through space and time

THE GOD P-ARTICLE A COLLISION WHERE SCIENCE MEETS ART Like particles spinning around in the Large Hadron Collider, our intrepid actuaries embark upon their own subatomic underground journey, avoiding human collisions while travelling around the Circle Line to the Science Museum 32

THE ACTUARY • August 2014 www.theactuary.com

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Every month, London’s Science Museum hosts an event called ‘Lates’. These are adult-only evenings featuring themed science experiments, talks, speed-dating for self-confessed geeks, and a silent disco beneath real space rockets, with DJs and bars on every ﬂoor. The exhibitions, which change every few months, sometimes take centre stage on these occasions. On one such evening, we visited the temporary exhibition on particle physics. Collider: step inside the world’s greatest experiment is a highly informative and entertaining exhibition, which examined the signiﬁcance of, and the detail behind, the biggest experiment in the history of physics: the Large Hadron Collider (LHC). It sheds light on the importance of the discovery of the most superior and elusive sub-atomic particle, unsurprisingly nicknamed the ‘God Particle’, at the European Organization for Nuclear Research (CERN) in Geneva, Switzerland.

Visitors to the exhibition had the privilege of witnessing the particle accelerator virtually as it would have been at CERN prior to the LHC closing for its regeneration project. We were able to marvel at the sheer scale and complexity of the world’s largest and most powerful particle collision mechanism (which took CERN a decade to build) in its quest to locate such a minuscule particle, which ironically would hold the fabric of the universe together. Collider is an exhibition that effortlessly blends the worlds of science and art, filled with esoteric particle physics, beautifully presented using a whole host of various multi-dimensional innovative media, and a carefully selected variety of real artefacts. The journey began with an invitation to take our seats in a mock lecture theatre showing a film written by playwright Michael Wynne. Professor Brian Cox had a cameo role as a new recruit tasked with the tea round. The focus was on the announcement of

SCIENCE MUSEUM

29/07/2014 09:50

At the back Arts

The exhibition recreated some of the corridors and oﬃces in a mock set-up of the Large Hadron Collider

the empirical evidence of a particle consistent with the God Particle – scientifically referenced as the Higgs boson and named after Professor Peter Higgs who had predicted its existence. From the recreated virtual lecture theatre, the spectators accessed a mock tunnel mimicking the labyrinth of the LHC. Within this space, there was a recreation of corridors and offices, with items such as noticeboards with newspaper cuttings, whiteboards with formulae, lab coats, and the Champagne bottle drunk from by Higgs the night before the discovery of his particle was announced. Things have come a long way from the cathode ray tube on display used for the discovery of the first elementary particle (the electron) by J J Thomson in 1897. It was pleasing to see that, amid the concreteness of science, this exhibition cared to show the human dimensions of this vast project.

It was the ‘unblinding’ – the poring over the data of the aftermath of such collisions – which led CERN scientists to conclude on the existence of the Higgs boson in July 2012. The Higgs boson is so unstable that even when it is created it exists for only a fraction of a nanosecond before decaying. Recreating these early moments around the time of the Big Bang can perhaps loosely be compared with statistical regression and back-testing in the actuarial space. What we found interesting is there are two detectors: A Toroidal LHC Apparatus (ATLAS) and Compact Muon Solenoid (CMS), which separately collect and analyse the data to come up with independent conclusions. This introduces healthy competition to incentivise the teams into making accurate and timely discoveries and remove the potential for biased outcomes, perhaps comparable with an independent actuarial review.

Tunnel vision Among the tunnels was a circular room with a curved screen. A film was showing in which members of the audience got to imagine themselves as proton protagonists. A sequential narration ran through the simulation of firing two proton beams, accelerating them to 99.9999991% of the speed of light (nearly 300,000km per second) and finally leading to their collision with each other. To put this into perspective, by the time you read this sentence, a particle in the LHC could have travelled around the world 30 times.

Standard model of elementary particles

Standard modelling Scientists arranged all known elementary particles into a well-structured picture called the Standard Model of Particle Physics (see below). It breaks down the universe in an orderly fashion into 17 diﬀerent particles that are considered fundamental and indivisible. The theory describes these smallest experimentally observed particles of matter and the interactions between the energy and matter. Of these 17, 12 matter (particles of matter called fermions, half of which are named quarks and the other half are leptons). The lepton family includes the widely-known electron, as well as some very strange particles which came from outer space in the form of cosmic rays and appear just like the electron but with 207 times the mass. Dubbed the muon, it prompted one physicist to ask: “Who ordered that?” The remaining ﬁve of the 17 particles are bosons, four of which are force carrier particles, and last, but by no means least, is indeed the intangible Higgs boson, which would be the reason for the origin of mass in all the other 16 elementary particles. According to the Higgs

model, elementary particles acquire mass by interacting with an invisible, omnipresent field carried by the Higgs boson. The more a particle interacts with this all-pervading Higgs field, the more mass it will have. Proving its existence will be the cornerstone to validating the Standard Model. As we pottered around inside this huge experiment we felt we could have quite easily been beneath the Alps. Thanks to all the incredible work that went into the exhibition, it was successful at transferring the knowledge across almost effortlessly, and we have tried our best to condense here a flavour of the science behind the complex theories. Physicists would, of course, argue that their simulation model is far more complicated than any actuarial model that we may modestly try to build… but is it really? If this is the case, then bearing this is mind, it is quite an accomplishment that we walked out of the Science Museum that night feeling like budding quantum physicists. How difficult can it all be? After all, it isn’t rocket science! Quarky humour aside, Collider proved to be a smashing exhibition, although just like the Higgs boson particle, it was short-lived and only temporary. It is no longer on show at London’s Science Museum having transferred over to Manchester’s Museum of Science and Industry (MOSI) until 28 September. DisCERNing actuaries unable to get the chance to visit would be highly recommended to pay a visit to the bonafide CERN facility in Geneva as soon as the upgraded collider mechanism reopens in 2015 following an expensive facelift. Back at London’s Science Museum, another current exhibition worth a visit is Mind Maps: Stories from Psychology (running until 26 October), which explores how mental health conditions have been diagnosed and treated over the past 250 years. It reveals the journey through time into understanding the mind, and the encompassing tools and treatment methods used. For an evening of informative, educational and intellectually stimulating, free, adults-only entertainment, the Science Museum’s Lates comes highly recommended. Anjali Sakhrani is a valuation actuary at ACE Group. Sonal Shah is a freelance actuary specialising in Solvency II documentation

August 2014 • THE ACTUARY www.theactuary.com

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At the back Coﬀee break

Nylﬁa is an actuary who solves and sets cryptic crosswords created especially for The Actuary

puzzles@theactuary.com

Puzzles

— RD SWO CROS IZE PR E PUZZL

For a chance to win a £25 Amazon voucher, please email your crossword solution to: puzzles@theactuary.com by Monday 18 August

—

Across

THE WINNER TAKES IT ALL

1 6 9 10

This puzzle celebrates 2, 22, who in 1980 was the subject of extreme 10 down due to participation in the 4, 3, 18 and the 6, 10,18.

11 12 14 16 17 19 21 22

25 26 27

Down

2 13

3 4

5 7 8 10

13 24

15 26

18 20

Diversion gives essential cover for English army (9) Scholarship without scholar, primarily? (6) Ranges thus produced in old age (8) Feature of kitchen from Easter or Christmas, for example (6) These should cause motion from behind (6) Headless spider i.e. confused spider (7) Shot by Hammers on the rebound? (4) Popular school situated on City circus (10) Crumble slice may go to cause glucose in blood (10) Pepper companion with wit (4) A useful public service (7) American poet will comply shortly, unknown thereafter (6) Where racing has its day in France (2,4) Give it in case of fallback in French church (8) Traveller is a secret agent held up in Guyana (5) Coach makes call, frontman drops back in playing ﬁeld (9)

23 24

Girl identiﬁed as Midge E in embrace of man (7) Utter predicament (5) Area around Plymouth where cash asset must be converted (13) Evidence of a close shave? (4) Dutch artist covered storyteller (Dutch) with ropes on board (9) Self-importance minds no misconduct (7) In uncertainty I bit, implicating my bipolar disorder (13) Large birds fall back trapping pressure to produce foam (5) A surplice designed for parishes run by Monarch (9) Draw mammal shown in wings of library (7) Vocabulary lesson ends covering most of country (7) Communist gets into company ethos (5) Charge rent (4)

THE ACTUARY • August 2014 www.theactuary.com

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29/07/2014 09:51

—

ER BUMP VER ROLLO PRIZE E PUZZL

HAVE YOU GOT WHAT IT TAKES? For information on IQ testing in your area, visit www.mensa.org.uk

For a chance to win a £50 Amazon voucher, email your solution to puzzle 595 to: puzzles@theactuary.com by Monday 18 August

TERMS AND CONDITIONS The prize will be awarded for the ﬁrst correct entry drawn at random from those received before the closing date. The winner’s name will be announced in the next edition. Please note, the puzzle editor’s decision is ﬁnal and no correspondence will be entered into. We reserve the right to feature the winner’s name in The Actuary. Your details will not be passed to any third party in connection with this draw.

Bon voyage Mensa puzzle 595

♠ AQJ75 ♥ 43 ♦ AK2 ♣ A52

♠ 82 ♥ KQJ109 W 8765 ♦7 ♣ 10

ang is featured on page 31, Pen In a holiday brochure Sicily page 44. on ed tur fea is s pru Cy is featured on page 35 and er for Jersey? What is the page numb

Alphabet order

Bridge puzzle 45 It helps to see the opponents’ hands!

Mensa puzzle 596

Bidding

Which symbol should replace the question mark to continue the sequence?

All Pass

% &

& % $

Tunnel vision Mensa puzzle 598

$ % £

A 550 yard long train, travelling at 90mph, enters a one and a half mile long tunnel. How much time will elapse between the moment the front of the train enters the tunnel and the moment the end of the train clears the tunnel?

SHUTTERSTOCK

p34_35_aug_crossword_puzzles_SEMIFINAL•KC.indd 35

4♥

Pass

4♠

West leads the K♥ . East ruﬀs and will return K♣ . You have lost one trick and surely have three losers in the minors to come... or have you? Plan the play.

£ % &

& X

♦ QJ10983 ♣ KQJ987

Sometimes you can work out exactly the opponents’ distribution to help you play the hand. Here is one such example.

Symbolic ﬁgures Mensa puzzle 597

♠ K10963 ♥ A2 ♦ 654 ♣ 643

What letter is missing in this sequence?

♠4 ♥ --

Bridge puzzle provided by David Lampert

August 2014 • THE ACTUARY www.theactuary.com

29/07/2014 09:51

puzzles@theactuary.com

SOLUTIONS FOR JULY 2014

A C A W I R B O U S T E O M P J O R T A R H Y

BARKS

Congratulations to this month’s winner – Craig Fothergill

N OBLE VINES

T U N T H I R D I A V O E L U H N T L E E D R

A R O O U A E R T E U E T M D O S N T

S E D R U C G A T V I O A N 22

N S O M B E U R

D A W S A R T E N C E S G S E T E Y E R I C E

N L E S 24

T A R

S S

Word search Mensa puzzle 593

Finding the link Mensa puzzle 594

Mix and match Mensa puzzle 592

Use the letters given to complete the square so that four other words can be read downwards and across. What are the words?

There is a connection between the words (left).

On each row place two letters that can be attached to the beginning of the word to the right to give a longer word. When completed the eight added letters will give a word reading downwards. What is it?

AEEEEEILLRRRVVYY

Answer: Emigrate.

E S

Answer: Each word contains an item of clothing – vest, suit, sari and cape.

—

Squaring up Mensa puzzle 591

A MENSE PRIZ E PUZZL

—

Due to a typographical error, the July prize puzzle is now void. The prize of a £25 Amazon voucher has now been rolled over to the August issue. Therefore, the winning entry to this issue’s prize puzzle competition will win a bumper £50 Amazon voucher. We apologise for any inconvenience caused.

♠ K9432 ♥9 ♦ 542 ♣ 8752

♠65 ♥10876 ♦QJ1093 ♣Q10

E E S Bridge puzzle 44 Give us a break! With E-W vulnerable, you as South decide to open 4♥ . East doubles for penalties. West leads the Q♦ . Provided clubs are 3-2, you have seven hearts, two spades and one club. So you ruﬀ the diamond and….

N W

NECESSARILY ESCAPED

Answer: Ravel, every, eerie and slyer.

What is it?

INVESTMENT UNSUITABILITY

STAT E

E S

♠ A8 ♥ AKQJ432 ♦ – ♣ 9643

I E S A T P E P S L E A I S E R S A T E T T E M U X S M E I D R E S O

At the back Coﬀee break

THE ACTUARY • August 2014 www.theactuary.com

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♠QJ107 ♥5 ♦AK876 ♣AKJ

Plan the play. Answer: Suppose you draw trumps. You have a 4-1 break. That leaves you with two trumps. You now play a club. Whoever wins plays another diamond. After two clubs and two diamonds, you have run out of trumps. When you play the third club, East will win and play a winning diamond. The problem is you have to lose the lead three times and only have two spare trumps. No problem if they were also 3-2 The answer is to play clubs immediately, leaving the valuable 9♥ in Dummy to deal with the fourth diamond. If the defence plays anything else, you now have time to draw trumps and set up the clubs. Note: E-W cannot make ﬁve clubs or ﬁve diamonds as they have to lose two spades and a heart. Double was a perfectly reasonable bid. Bridge puzzle provided by David Lampert

SHUTTERSTOCK

29/07/2014 09:52

At the back Student student@theactuary.com

Student Jessica Elkin discusses the communications exam (CA3), and examines the pitfalls and problems students should watch out for

TALKING THE TALK How can you tell when you meet an actuary who is an extrovert? He is the one who looks at your shoes when he talks to you! This joke tells us two things. Number one, people who like to laugh at actuaries do not have a very good sense of humour. Secondly, actuaries aren’t reputed for their dazzling conversation skills. That’s probably why the profession decided it was necessary to add the communications exam, CA3, to the array of hoops set out in front of students, to ensure that actuaries have the skills for “effective communication to both technical and non-technical audiences”. Have you spotted the problem yet? Most of our exams are about facts and figures, and using an exam to test communication is a bit like putting someone in a paddling pool to ascertain if they can swim. You’d get an idea of their reaction to water in general, but it wouldn’t necessarily show they could handle an ocean of sharks and jellyfish and krakens. Trouble is, dropping someone into the ocean isn’t a feasible testing method.

Paving the road to hell The profession has put a lot of thought into this problem, and their method for tackling it has been to set students a two-day, course-style exam. On the ﬁrst day you complete a written exam involving the communication of actuarial issues to a non-actuarial audience. In the afternoon, you prepare slides for a short presentation that you make on the second day. It’s an imaginative solution – but there are snags. First, you do not deliver the presentation to a group of people as you might in a work environment. Your audience is a webcam,

PHIL WRIGGLESWORTH

p37_aug_student_SEMIFINAL NEW•KC.indd 37

which you are now required to set up and use yourself at home or in the office. This has been controversial, with many concerned that it is not a like-for-like exchange; both because it allows misanthropists not to have to face anybody, and because it is harder to deliver a presentation when you do not have the added eye contact and rapport with your audience. An added complication is that the software required for the exam is not supported on Mac OS X or Linux, so many students are unable to set it up at home. And since some firms’ IT security policies do not allow the downloading of the software, Mac or Linux users can be left at sea as to where and how they can sit the subject. Associated problems include the fact that not having a controlled environment to present in can lead to issues involving errant pets/ flatmates, unexpected loud building work, or various IT problems. Unfortunately, although the examinations team is aware of the above complaints, there are still no plans to develop the software to be used on other platforms. The idea behind having the exam exclusively

online is to allow more spaces to be available, as CA3 is oversubscribed. However, it is still notoriously difficult to get a place on the course. As a friend put it: “The spaces came online today and got snapped up before I could say ‘Why aren’t they releasing enough spaces?’. I got tickets for the Monty Python reunion, but I could not get CA3. Ridiculous.” Many students end up with a lengthy wait in CA3 purgatory long after finishing the rest of the exams. Removing the requirement to have passed all the CTs and CA1 might help, as it would allow people to attempt it earlier; hopefully, the examinations team is considering this solution, or finding a way to open up spaces.

Blind man’s bluff Ironically, given the point of CA3, communications on the exam are considered to be lacking. Judging from the Student Consultative Forum, candidates often feel they have followed the marking schedule without success and consider the process a “lottery”. One student complained that they had been told during a mock exam that their presentation was among the best the examiner had seen, but came out of the real thing with an FB. A colleague who passed on his third attempt told me that he did not do anything especially different between takes and that he views the passing of the course as “completely random”. I haven’t covered all the complaints about CA3. The impossibility of knowing whether you need to improve on the written or vocal side without paying for expensive exam counselling, the lack of available past papers and model solutions, the low pass rate… I don’t have space for it all. The testing of communication skills is a worthy endeavour, and the profession has certainly put effort into coming up with a solution. But while CA3 has improved over time, it doesn’t seem to be quite there yet. A review of the course is forthcoming, and students are likely to welcome some changes that would hopefully see the pass rates increase and frustration surrounding the process drop. The Student Consultative Forum discusses the examinations and examination processes, including a whole section on CA2 and CA3, each time. If you have comments to make, do pass them on to me at student@theactuary.com and I can take them to the SCF. It would be good to get some communication practice myself! a

August 2014 • THE ACTUARY www.theactuary.com

29/07/2014 12:26

At the back Appointments

SPONSORED BY

peoplemoves@theactuary.com

Moves IFG Group plc is pleased to announce the appointment of Paul McNamara as group chief executive and as an executive director of the group, subject to regulatory approvals. Prior to this, McNamara was managing director of investments and insurance at Barclays and has previously held senior roles at Standard Life Group, HBOS (now Lloyds Banking Group), AXA UK, McKinsey & Company and Bank of Ireland Group.

Jeff Hunt, former KPMG partner, has been appointed as managing director at Xafinity Consulting. Hunt takes over from Robert Birmingham, who remains executive chairman. Hunt joined Xafinity Consulting in June 2013 as deputy managing director. Immediately prior to joining Xafinity, he was managing director of TradeRisks, before which he was a partner at KPMG for eight years.

Barnett Waddingham has increased its total number of qualified actuaries to 127. The firm has announced that six of its staff (see right) are newly qualified, subject to approval of work-based skills, following the latest round of exam results from the Institute and Faculty of Actuaries.

The latest newly qualified actuaries are; Katie Huxley-Duggan, Catherine Pleass and Nicole Tooze (pictured above, left to right) from the Amersham office, Matt Alderson from the Bromsgrove office, Beth Aylott from the Cheltenham office and Emma Abraham from the London office.

Quantum Advisory has appointed Sean Gilfeather as a principal consultant and actuary. He joins the ﬁrm from Lorica Employee Beneﬁts,

where he was head of pension consulting for over four years. Prior to this, he was a senior beneﬁt consultant and actuary at Buck Consultants.

at Aon Hewitt, Bridgeland also holds non-executive roles at EDHEC-Risk Institute, FTSE Group, and the Worshipful Company of Actuaries.

www.hfg.co.uk

SAM MAWOYO

ACTUARY OF THE FUTURE assumptions for possible answers and still not give a ﬁnal answer at the end of it. I’ve struggled really hard to not do so in answering these questions.

Greatest risk you have ever taken? Leaving university after the ﬁrst year to study for the Fellowship with ActEd as my partner. It seems to be working so far.

If you could learn one random skill, what would you learn? Play the mbira (thumb piano). Favourite Excel function? It depends. One

If you could go back in history, who would you like to meet? Shaka kaSenzangakhona, aka King

What motivates you? Proving anyone who

of VLOOKUP and the many variants of the IF function.

What’s your most treasured possession? A set of

endorses or trusts me right.

How do you relax away from the oﬃce? Watching

What would be your personal motto? Keep facing forward; ex fide fiducia – from faith comes confidence; and esse quam videri – to be, rather than to seem (to be). It’s circumstantial, but thanks go to my y former Jesuit schools for drilling the he Latin mottos into me.

football, going to the golf range – especially after studying, acoustic music evenings, reading moti motivational literature and catching up with my girlfriend. It really does depend.

Employer and area of work African Actuarial Consultants – general insurance department. How would your best friend describe you? Something very lengthy with “driven… ambitious… control freak… upside risk… accommodating but not Mother Theresa… great friend” in it, but I didn’t want to ﬁnish my word count on this question.

Name ﬁve dream companions to be stuck uck on a desert island with? In no particular order: Warren Buﬀet, Strive Masiyiwa, Arsène sène Wenger, Damian Marley and Muhammad Ali in his heyday.

What’s your most ‘actuarial’ habit? Responding to most questions by saying “it depends” then listing all

Former BP Pension Trustees chief executive Sally Bridgeland is joining Avida International as a senior adviser. Formerly a consultant

Alternative ccareer choice? I was going to be an actua actuary or nothing, so I never gave any tho thought to the alternative.

Shaka Zulu, the most inﬂuential Zulu monarch. horns from a bull my maternal grandfather slaughtered.

What are the top three things you would like to achieve in your lifetime? Be a chief executive or a chairman of the board of a listed company. Become a Fellow of the IFoA. Have an inﬂuence on Arsenal FC player signings.

If you ruled the world, what would you change ﬁrst? Do away with extreme poverty.

Tell us so something unusual about yo I’m superstitious yourself about Arsenal FC–related a things and I genuinely feel t my actions have an inﬂuence over the outcome of matches.

Do you know an actuary destined for greatness? You can nominate an Actuary of the Future by emailing

aotf@theactuary.com

THE ACTUARY • August 2014 www.theactuary.com

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www.theactuaryjobs.com

Appointments

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

Chill out & enjoy the sunshine Our Consultant’s in-depth knowledge of the Acutarial market, means you’re in safe hands. Make the most of your summer, knowing that your dedicated Consultant is focused on finding the perfect match for you.

General Insurance Roles Head of General Insurance

Head of Pricing/ Underwriting

£110k - £140k Basic, London

£80k - £120k Basic, London

Composite Insurer with a strong personal lines business is looking for a qualified Actuary to lead their GI business. You will have a strong pricing background, ideally across motor and household insurance. This is a unique opportunity for a people person, who can make things happen and is confident challenging Non Actuaries. You will manage a growing team and should be looking to fast track your career. william@hfg.co.uk

Specialist Reinsurer is looking for a pricing Actuary to lead their function. The right person should be passionate about Underwriting and have a desire to work with Non Actuaries on a daily basis. The client is looking for someone who has good engagement skills and is keen to work in the reinsurance world. The right person must be confident, outgoing and a strong communicator. william@hfg.co.uk

Capital Modelling Manager

Head of Pricing Actuary

£100k - £125k Basic, London This world leading general insurer is looking for a capital modelling manager to lead their capital function. The right person should be strong in person and have the ability to work well with non actuaries. Igloo experience would be beneficial. william@hfg.co.uk

Capital Analyst

£120k - £150k Basic, London Lloyd’s syndicate requires a qualified Actuary to lead their pricing team. You should enjoy working closely with underwriters, have a strong analytical background and be happy managing a team. You will report to the Chief Actuary whilst working daily with the underwriters. Previous pricing experience is required. william@hfg.co.uk

Senior Capital Analyst £55k - £65k Basic, London

£45k - £65k Basic, London A leading Lloyd’s Syndicate is looking to hire two capital modelling analysts. The roles report directly into the Head of Capital, and have a dotted line to the risk function. The successful candidate will have at least 2/3 years capital modelling experience in a London Market firm and will be from a top tier university, graduate. ben@hfg.co.uk

A leading London market insurer requires a senior capital modelling analyst. The successful candidate will have experience in a similar role, experience of igloo software is highly desirable but not essential. This role is part of a restructure of the whole actuarial department. With exposure to the whole capital model the role offers a great development platform for candidates who are restricted in their current position. ben@hfg.co.uk

Actuarial Analyst

Capital Analyst £50k - £60k Basic, London

A mid-sized Lloyd’s syndicate is looking for an ambitious actuarial student to join their actuarial team. With good exposure across the actuarial function and a competitive study package, this provides an excellent opportunity for the next step in your career. The ideal candidate will have experience of reserving and/or pricing. ben@hfg.co.uk

Market Rate, Surrey Software vendor is rapidly expanding their actuarial team, and making hires at a junior and senior level. You should be competent with Igloo or remetrica software with a GI background. The small team ensures rapid progression with responsibility and autonomy. The study package on offer is one of the best in the London market. ben@hfg.co.uk

WILLIAM GALLIMORE

RUPA PITHIYA

BEN HICKEY

Director

General Insurance Contract

General Insurance

+44 (0) 207 337 8826 william@hfg.co.uk

+44 (0) 207 337 1200

+44 (0) 207 220 1106

rupa@hfg.co.uk

ben@hfg.co.uk

+44 (0) 207 337 8800

www.hfg.co.uk August 2014 • THE ACTUARY 39 www.theactuary.com

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Appointments

Your new Actuarial recruitment gateway FIND OUT MORE ON OUR WEBSITE WWW.FENASSOCIATES.COM

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RESEARCH ANALYST (PHD)

A Syndicate is looking for an Actuarial Analyst to join the Reserving team working across all lines. Ideally you will have completed at least 5 CT’s, minimum 2 years GI and have prior Lloyds Reserving experience. ResQ EHQHþFLDO EXW QRW HVVHQWLDO

A reputable Syndicate is looking for a Senior Capital Actuary. Managing several direct reports whilst reporting to the Head of Capital. A ReMetrica expert is essential and those not sitting the Actuarial exams will also be considered.

The role mainly involves helping the Head of Analytics in maintaining and advancing proprietary view of risk. Frequent duties involve model evaluation of third party catastrophe vendor models, development of proprietary pricing and portfolio models DQG GHYHORSPHQW RI ZRUNÿRZ WRROV

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London : Chicago : Hong Kong : Singapore : Shanghai

www.theactuaryjobs.com

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Appointments We are a recruitment consultancy with a difference Bringing Talent Together

Chief Risk Of¿cer

Eames Consulting Group are operating as preferred search partner to a top tier Re-Insurer in sourcing a Chief Risk Of¿cer. You will be based in continental Europe and will head up risk management across the European Non Life Group. You will be the designated risk of¿cer for 2 legal entities in direct and reinsurance business and you will head a team of actuaries and risk management professionals across Europe to deliver the ERM framework. You will be dealing with regulators across the continent and have exposure to the European board and risk committee. It is essential to have strong non life product knowledge, and you will have skills in either underwriting, pricing, capital modelling or risk management. Remuneration is competitive and will be circa £200k + package.

Contact Andrew Cannon

Anthony Hill

Of¿ce Number +44 (0)20 7092 3200

For current opportunities please visit www.eamesconsulting.com

Actuarial, Pensions & Insurance Risk Management 020 7092 3262 andy.cannon@eamesconsulting.com

Pensions & Investments | Non-Life | Life & Health

UK | Europe | Asia Paci¿c

Actuarial, Pensions & Insurance Risk Management 020 7092 3287 anthony.hill@eamesconsulting.com

www.eamesconsulting.com

Your specialist actuarial recruiter in the UK, Mainland Europe, and Asia-Pacific, with dedicated sector specific consultants covering; Non-Life Life Pensions and Investments For a confidential career discussion please contact us on +44 (0)207 332 5870 or actuarial@mansionhouse.co.uk 42

THE ACTUARY • August 2014 www.theactuary.com

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Life Insurance Roles Internal Model Manager

Modelling Manager

Up to £85k Basic, London

£75k - £90k Basic, London This leading life insurer is looking for an experienced life actuary to lead their Systems team. You will have strong communication skills with strong technical skills. Experience in Prophet or MoSes is essential as you will also play a part in remodelling the Systems function across the business. The managerial responsibility indicative of this position provides a great stepping stone in your career path. sophia@hfg.co.uk

This is an ideal opportunity for a qualified highly technical Actuary who wants to play a key role in the implementation of Solvency II to join a leading Life insurer. Prior experience working with Solvency II is essential and the ability to speak with senior stakeholders and advise the business on these matters. sophia@hfg.co.uk

Financial Reporting Manager

Capital Management Actuary

£60k - £80k Basic, London

£55k - £75k Basic, South West & London

This leading life insurer is looking for a qualified Life Actuary to play a key role in managing the reporting team. You will work closely with the Chief Actuary and CFO making key decisions across the business with regards to the reporting metrics in the UK and abroad. Prior reporting experience is essential and the ability to manage and mentor students. sophia@hfg.co.uk

This leading composite insurer needs a talented and commercially minded Actuary to join the capital management team. This role will give you exposure across risk and other aspects of the business along with gaining a holistic view of the business in both Life and non Life. Previous life office experience is essential and the ability to apply and implement technical work. sophia@hfg.co.uk

Consulting Actuarial Analysts

Product Development Analyst £35k - £45k Basic, London

£40k - £55k Basic, London This is an exciting opportunity for life actuarial students to work for a Big 4 Consultancy and enhance their Actuarial career. Previous consulting experience is not essential but a commercial mindset is preferred. You will be working alongside influential Actuaries and gain exposure across a variety of projects. They are looking for several Actuarial analysts ranging a variety of expertise. sophia@hfg.co.uk

If you are looking to broaden your actuarial experience and gain some Pricing & Product Development experience then this is the perfect role for you! Working within a multinational insurer, you will be involved in the productions and pricing of new products. Good progress through the exams is preferred and prior experience in a Life insurer. sophia@hfg.co.uk

Contract Roles Capital Contractor

Pricing Contractor

£700 - £1000 per day, 6 months, London

£700 - £1000, 12 months, London A leading insurer is currently looking for a pricing contractor to work within their team. You must be able to build relationships and get underwriter buy-in within a short amount of time. To be considered you must have a strong GI background, with pricing experience and be able to build Pricing models. rupa@hfg.co.uk

This leading niche insurer is looking for a contractor to help with project based work. Reporting to the Chief Actuary, you will assist with the internal model development, standard formula calculation as well working on Lloyd’s submissions. In order to be successful you must have strong capital modelling experience. rupa@hfg.co.uk

S2 Actuary Contractor

Reserving Contractor £700 - £900 per day, 6 months, London

£800 - £1000 per day, 6 months, London A exciting opportunity has risen for all you Solvency II experts out there. This client is looking for a contractor with Capital experience to support their existing team. You will be required to help with the validation, documentation as well as the LCR submissions. In order to be considered you must have strong S2 experience and a sound understanding of the capital requirements. rupa@hfg.co.uk

This leading insurer is looking for a contractor, for an initial 6 month period subject to extension with reserving experience. You will be required to help backfill the day to day reserving work as well as help the quarterly GAAP/technical provisions under Solvency II and reserve risk parameters. In order to be successful you must have relevant GI Reserving and ResQ experience. rupa@hfg.co.uk

Risk Roles Risk Manager

Internal Model Risk Manager

£40k - £60k Basic, London

Up to £100k Basic, West Midlands A fantastic opportunity for an experienced Actuary to join a well renowned Insurance firm. You will be a senior member of the team performing second line of defence review for the Capital and Risk models. You will have a good appreciation of Solvency 2 and Model Validation as well as model governance. You will be a qualified Actuary with strong Risk Management, Solvency 2 and ICA experience. You will be confident in interacting with internal stakeholders and be able to communicate effectively. james@hfg.co.uk

SOPHIA CROSSMAN

JAMES KITT

ERIN O’DONNELL

Life Insurance

Risk Management

+44 (0) 207 337 1207

+44 (0) 207 337 1202

sophia@hfg.co.uk

james@hfg.co.uk

erin@hfg.co.uk

0207 337 8800

p43_ACT.08.14.indd 43

This leading managing agency is looking for a Risk Manager to support and develop their Risk Management function. You will embed the risk management framework and ensure that all Internal model documentation is maintained, as well as contributing to the Risk Management elements of the organisation’s Solvency II implementation effort. You will be highly numerate and either have obtained, or be working towards, a professional qualification. erin@hfg.co.uk

www.hfg.co.uk

actuarialteam@hfg.co.uk

September 2013 • THE ACTUARY 43 www.theactuary.com

29/07/2014 10:27

Appointments

ALM Group Pensions Actuarial Manager An internaƟonal consultancy is looking for a part qualiĮed non-life Actuarial Analyst making good progress through their exams. This person would ideally have knowledge of reserving, regulatory regimes and reporƟng methodologies as well as modelling skills. The role would be hands on and involve being part of a team on various client engagements as well as draŌing and presenƟng of reports. You will also get exposure to managing small teams on certain projects. Great opportunity for an Analyst looking to gain consultancy experience and wider exposure in their day to day work.

Head of Actuarial & Risk AnalyƟcs We are supporƟng a global life and pension provider with the search for an experienced post qualiĮed Life actuary. You will have a signiĮcant background in managing large teams as a consultant or head of. Your department will employ circa 45 actuaries and risk specialist that will provide all actuarial and risk analysis internaƟonally.

As a part or nearly qualiĮed Pensions actuary you will join as a key member of small team within a Group ALM & Financial Risk department. This team is focused on developing and implemenƟng funding plans and investment strategies for our clients group pension schemes, and carries out regular reporƟng for economic capital. You will have a detailed understanding of UK pensions with experience in valuaƟons, scheme funding, accounƟng for pensions (UK and US GAAP) and investment strategy.

For more informaƟon please contact Clinton Poore on 0207 929 7667

For more informaƟon please contact Victoria Cruickshank on 0207 929 7667

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For more informaƟon please contact Adam Goodwin on 0207 929 7667

x x

CongratulaƟons to last months winner Tony Pearse

W www.darwinrhodes.com E London@darwinrhodes.com

Head of Actuarial

Pricing Manager Kuala Lumpur, Market Competitive

Singapore, Market Competitive

My client is looking for a manager to lead a dynamic Actuarial team in Kuala Lumpur in a variety of market-leading projects. You will be a nearly or newly qualified Actuary with pricing, reserving and capital modelling expertise. Malaysian market experience highly advantageous. Contact Jason on +65-68297154 or jason@hfg.com.sg.

International insurer is looking for a Pricing Manager for their regional office in Singapore. New growth requiring a qualified Actuary to direct regional pricing strategy, portfolio management, building new pricing models. Working across motor, property, casualty and marine, this role favours GLM experience. Contact Jason on +65-68297154 or jason@hfg.com.sg.

Regional Corporate Actuary

Regional Manager – Insurance Risk

Singapore, Up to SGD $200k base + bonus

Opportunity to join the regional operations of this multinational insurer with a strong presence in Asia. They require a qualified Life Actuary who can see the big picture as the role has regional oversight for their operations in Asia Pacific. The role is technical and commercial, so requires you to have EV/MCEV reporting knowledge and ideally M&A experience. clare@hfg.com.sg

Working across Asia Pac, this role seeks a qualified Actuary with a good comprehension of what risk means in the context of a Life Insurer. You will be a well rounded Actuary who can provide technical depth and understand the changing dynamics in Asia in as you embed the risk framework. A progressive role for a progressive Actuary. clare@hfg.com.sg

R & D Strategy Lead

Big Four Consulting Opportunities

Singapore, SGD $160k – $190k base + bonus

As part of the senior management group you will be tasked with developing the regional strategic proposition of this renowned international reinsurer. With a strong protection product and reinsurance background you will play an integral role in designing the strategic direction of this ambitious and progressive business. graeme@hfg.com.sg

Jason Sykes Clare Bethell Graeme Braidwood Tong Yu

Hong Kong , Up to HKD $1.2m package

Managing Director Director Senior Consultant Consultant

Singapore, HK, China, Thailand, Salary dependent on experience

Would you like to work in business development and advance your consulting skills in Asia? Join as a consultant and be responsible for Actuarial advisory projects across risk management, financial valuations and modelling. If you are a nearly/newly qualified actuary with EV/MCEV, ALM, risk management or Solvency II experience, contact us today. tong@hfg.com.sg

EA Reg: R1333193 EA Reg: R1434590 EA Reg: R1434568

www.hfg.com.sg +65 6829 7153 EA Licence Number: 14C7034

THE ACTUARY • August 2014 www.theactuary.com

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www.theactuaryjobs.com

Hannover Life Reassurance Bermuda Ltd (HLR Bermuda) has been operating successfully in Bermuda since 2007. HLR Bermuda writes Life and Health reinsurance business in partnership with our clients around the world. This business is managed by our dedicated team of reinsurance professionals based in Bermuda. We now seek to appoint a qualified life actuary as

Marketing Actuary Reporting to the Chief Business Development Officer The role:

This is a challenging role which will suite a well rounded candidate with strong technical and communication skills. The role will entail a degree of international travel to develop business opportunities in conjunction with the Hannover Re worldwide network. In this role the Marketing Actuary will be involved in the treaty process throughout its lifecycle: negotiation, pricing, documenting and reporting on each deal.

Responsibilities include but are not limited to: • On a day-to-day basis, analyzing, modeling and pricing new business opportunities. • Product development of tailor made reinsurance solutions to meet the needs of current and potential client base. • Researching new markets and lines of business in order to diversify exposure • Development of pricing models and assumptions for various lines of business in various geographical locations. Your profile:

• • • • • •

Qualified Actuary with a minimum of 5 years of life and health (re)insurance experience Geographical experience in our target markets of Asia Pacific, Europe and the UK is essential Functionally, experience in the specialist fields of financial reinsurance, mortality and morbidity would be a distinct advantage Excellent communication skills, both written and verbal, would be required. A high level of computer literacy and experience with an industry-standard actuarial projection system is essential. The necessity to meet tight deadlines and multi task on projects running in parallel will require an individual who is committed to the business and open to working hours beyond the norm.

Hannover Life Re Bermuda is an equal opportunity employer. Qualified persons should apply before 31 August, 2014. All applications will be held in the strictest confidence and should be sent to: Chantal Cardinez - Chief Business Development Officer; ccardinez@hlr.bm; telephone: +1 441 279 1144. Hannover Life Reassurance Bermuda Ltd. Victoria Place, 2nd Floor 31 Victoria Street Hamilton HM 10 Bermuda

August 2014 • THE ACTUARY 45 www.theactuary.com

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www.theactuaryjobs.com

Fresh Thinking For the latest news and views, visit theactuary.com. With high quality content, useful tools and easy navigation, you will find a wealth of actuarial resources at your fingertips. Register for weekly email newsletters Read the latest features and opinion and add your comments Read about actuaries stepping into new frontiers Browse theactuaryjobs.com, the official jobs board of the UK actuarial profession

Visit www.theactuary.com September 2013 • THE ACTUARY 47 www.theactuary.com

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www.theactuaryjobs.com

“The best thing about working for Mercer is the people, working with very clever individuals, you can learn from them on a daily basis” ZAHID ZAMAN, RETIREMENT ACTUARY

Are you looking for a career where excellent training and attractive rewards come as standard? Then you’ll ﬁt in perfectly at Mercer. We are a global consulting leader in talent, health, retirement and investments and we can promise you outstanding prospects as part of our world-class team.

FINANCIAL STRATEGY GROUP ANALYST

LONDON

Mercer’s group of pension risk experts, the Financial Strategy Group, specialise in delivering strategic risk advice to pension scheme trustees and sponsors. Our multi-disciplinary team brings together strong capital market expertise with actuarial and investment consulting to provide a holistic approach to pension risk management. Our advice covers the broad spectrum of risk management solutions ranging from innovative liability hedging to risk transfer or balance sheet ﬁnancing. Through our innovative approach, the group has been involved with a number of market leading transactions. As an analyst joining the group you will work as part of a dynamic team to develop and deliver customised and innovative solutions and advice to our clients to help them manage pension risk, whilst working at the forefront of the changing pensions landscape. Our interventions are often bespoke and frequently involve combining asset solutions, liability management and the use of the corporate balance sheet. This is a fantastic opportunity for you to develop your core investment and/or actuarial skills and knowledge and learn from others as you build a platform for career growth at a global consulting ﬁrm.

PART QUALIFIED ACTUARIAL ANALYSTS

NATIONWIDE OPPORTUNITIES

Within this role you will work as part of a team supporting consultants and actuaries in all aspects of pensions consulting and actuarial work whilst gaining signiﬁcant exposure to clients and developing your knowledge and consulting skills. With opportunities in many of our UK locations, this is a fantastic chance to develop your career as a key member and part of a team recognised for the quality of its thinking and the consistency of its performance. Looking for a new challenge? Then discover more and apply online by visiting

careers.uk.mercer.com

TALENT. HEALTH. RETIREMENT. INVESTMENTS.

August 2014 • THE ACTUARY 47 www.theactuary.com

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Appointments NON- LI FE RI SK SENIOR PRICING MANAGER

HEAD OF RISK - NON-LIFE

£ depends upon experience

£ excellent + bonus + benefits

NON-LIFE SOUTH EAST

RISK LOCATION UPON APPLICATION

STAR1975

FIRST ACTUARY IN THE BUILDING £ excellent + benefits STAR1977

NON-LIFE SCOTLAND

STAR1993

Leading insurance group is seeking a qualified non-life actuary to take responsibility for pricing decisions across all lines of business to improve rating structures, risk and operational costs, and price optimisation.

Leading insurer has an exciting opportunity for a qualified non-life expert to lead the constructive challenge and oversight of the business to ensure all its risks are managed within its appetite.

We are working on a new role based in Scotland for a qualified non-life actuary to build internal capability in capital modelling, pricing and reserving. A unique opportunity.

GI BUSINESS RISK MANAGER - MOTOR

LONDON MARKET PRICING

PRICING MANAGER

£ excellent + bonus + benefits

£ excellent package

£ excellent + bonus + benefits

NON-LIFE LONDON

STAR1986

NON-LIFE LONDON

STAR1803

NON-LIFE SOUTH EAST

STAR1974

Leading insurer is seeking a part-qualified or qualified non-life actuary, with an underwriting, pricing or capital background in motor insurance, to be responsible for the secondline oversight within its risk function.

We have an exciting opportunity for a part-qualified or qualified non-life actuary with pricing experience and strong influencing skills to join a leading London Market insurer.

Our client is seeking a strategically-focused pricing expert to set and deliver an innovative pricing plan for specialist business objectives. Significant Motor pricing experience essential.

RESERVING ACTUARY - NON-LIFE

NON-LIFE CONSULTANCY

ACTUARIAL ANALYTICS MANAGER

£ excellent + bonus + benefits

NON-LIFE LONDON

NON-LIFE GREATER LONDON

NON-LIFE MIDLANDS

STAR2010

STAR2015 & STAR2013

STAR1972

Leading general insurer seeks a part-qualified or qualified non-life actuary to take up a key role in its reserving team. Develop your leadership skills in a role offering great exposure to the wider business.

Opportunities for part-qualified or qualified actuaries to join a leading firm, providing high-quality consulting services to wide-ranging clients. Develop your technical and soft skills every day within a variety of projects.

An excellent opportunity to join one of the UK’s leading general insurers. Use your existing non-life experience to optimise risk management controls and help to deliver the company’s financial risk strategy and plan.

PRICE OPTIMISATION EXPERT

TELEMATICS SPECIALIST

LONDON MARKET RISK ANALYST

£ excellent + bonus + benefits

up to £55k + bonus + benefits

NON-LIFE SOUTH WEST

STAR1999

NON-LIFE SOUTH WEST

STAR2002

NON-LIFE LONDON

STAR1968

Niche insurer seeks a non-life expert to drive broker price optimisation and underwriting workstreams. Work with the business as you lead reporting and analytics projects, and develop a robust and competitive insurer panel.

Utilise your telematics experience and work with senior stakeholders to drive developments within this niche insurance group, inspiring innovation and growth.

Lloyd’s Syndicate seeks a part-qualified actuary to maintain a robust ERM framework as part of a dynamic risk team. Contribute new ideas and challenge an evolving team that is keen to develop its knowledge and capabilities.

RISKY BUSINESS

PRICING EXPERTISE

RISK AND CAPITAL MODELLING

£ excellent + bonus + benefits

up to £75k + bonus + benefits

up to £60k + bonus + benefits

RISK LONDON

STAR2016

NON-LIFE SOUTH EAST

STAR1941

NON-LIFE SOUTH EAST

STAR1969

Leading financial services group seeks a part-qualified or qualified pricing expert to contribute towards the delivery of appropriate pricing for commercial lines business strategies and objectives.

Our client seeks a part-qualified non-life actuary with strong risk and capital experience to design, develop and implement cutting-edge modelling solutions.

INTERNATIONAL RISK

TRAINING & DEVELOPMENT ACTUARY

THE PRICING IS RIGHT

CHF excellent + bonus + benefits

Take this chance to join a growing team offering risk consultancy services in a global market. A qualified actuary, you will research and develop new and existing services, and identify and support new business opportunities.

STARVACANCIES NON-LIFE ZURICH, SWITZERLAND

STAR2022

Fast-growing actuarial team seeks a partqualified or qualified non-life actuary to develop solutions to actuarial problems for insurance and reinsurance clients.

STAR1994

Leading financial services company seeks a (part-) qualified actuary to support global talent management, learning and development, and the implementation of best practice in pricing.

NON-LIFE ZURICH, SWITZERLAND

STAR2020

International financial services firm seeks a part-qualified or qualified non-life actuary to support the delivery and implementation of strategic objectives for its Financial Lines business. Additional language skills desirable.

Antony Buxton FIA Anton

Lance Randles MBA La

Paul C Cook

Joanne Young Joa

MANAGING DIRECTOR MANAG

ASSOCIATE DIRECTOR AS

SENIOR CONSULTANT

OPERATIONS DIRECTOR OPER

THE ACTUARY • September 2013 www.theactuary.com M +44 7766 414 560 E antony.buxton@staractuarial.com

p48-49_ACT.08.14.indd 48

NON-LIFE ZURICH, SWITZERLAND

M +44 7889 007 861 E lance.randles@staractuarial.com

M +44 7740 285 139 E paul.cook@staractuarial.com

M +44 7739 345 946 E joanne.young@staractuarial.com

29/07/2014 10:44

www.theactuaryjobs.com

LI FE PENSI ONS I NVESTM ENT

£ very attractive package LIFE SOUTH COAST

RESEARCH AND DEVELOPMENT ACTUARIES

PRICING ACTUARY

£ excellent + bonus + benefits

£ excellent + bonus + benefits STAR1811

LIFE LONDON

STAR1997

LIFE SOUTH WEST

STAR1981

A great opportunity for a qualified life actuary to lead and manage asset modelling activity for regulatory and economic capital purposes. Extensive experience in capital modelling, valuation and reporting required.

A high profile role for a qualified life actuary with excellent relationship management skills, involving key projects and deals. Deep experience of capital markets, financial modelling and reporting, pricing and risk required.

Exciting opportunities for actuaries with technical and managerial expertise to develop their careers within a unique organisation. You will have a commercial outlook, a can-do attitude and a track record of team leadership.

LIFE ACTUARY - RISK & CAPITAL

LIFE CONSULTANCY

REPORTING ACTUARY

up to £80k + bonus + benefits

£ excellent + bonus + benefits

LIFE NATIONWIDE

LIFE BRISTOL

LIFE SOUTH WEST

STAR1960

STAR2012 & STAR2014

STAR2030

Play a key role within risk and capital management for a leading life insurance business, working to ensure the provision of sound second line assurance through identification, assessment and mitigation of risks.

Global consultancy seeks adaptable partqualified and qualified life actuaries wishing to gain a wide range of experience. Provide technical input, manage client relationships and lead high-performing teams in these fulfilling roles.

Major life company seeks a qualified actuary to join its Actuarial Reporting team, where you will calculate Peak 1 reserves, MCEV, Free Surplus and IFRS Operating Profit for business written in the UK.

SOLVENCY II ACTUARY

MODELLING MANAGER

LIFE ACTUARY - MODEL VALIDATION

£ excellent package

£ excellent + bonus + benefits

LIFE SOUTH COAST

STAR1812

LIFE SCOTLAND

STAR1956

LIFE LONDON/SOUTH EAST/SCOTLAND

STAR1988

Leading insurer is seeking a qualified life actuary to support senior management by providing specialist actuarial technical expertise and advice in relation to the implementation of Solvency II.

Seeking an expert modeller with significant experience of Prophet to be responsible for all aspects of the maintenance and development of the actuarial modelling systems.

Global financial services company has an exciting opportunity for a qualified life actuary to oversee the independent review and challenge of the Solvency II Internal Model.

DEVELOPMENT ACTUARY

ACTUARIAL ANALYST - CAPITAL

ACTUARIAL PRICING

£ excellent + bonus + benefits

LIFE NORTH WEST

STAR1896

LIFE SOUTH COAST

STAR1955

LIFE MIDLANDS

STAR1973

Leading financial services company has an exciting opportunity for a qualified life actuary to make an impact within its reporting team. Work closely with other functions whilst designing new processes to reflect regulatory changes.

A great opportunity for a part-qualified actuary to apply their skills and knowledge to identify, analyse and solve business issues. Provide support for planning, forecasting, stresstesting, scenario planning and Solvency II.

One of the UK's leading companies has a fantastic opportunity for a part-qualified life actuary to review product charges and profitability, as well as recommend improvements to existing product features.

INVESTMENT CONSULTANTS

INVESTMENT RISK SOLUTIONS

ACTUARY - PENSIONS BUY-OUT

£ very competitive

£ excellent + bonus + benefits

INVESTMENT EDINBURGH

STAR1984

Leading practice seeks part-qualified or qualified actuaries with investment consultancy experience to join a growing team. You will have strong technical and client facing skills.

INVESTMENT LEEDS

STAR2011

Leading firm has an exciting opportunity for a part-qualified investment actuary to provide strategic advice, helping clients to determine the appropriate mix of risk and return and the optimum use of capital to fund pension liabilities.

PENSIONS BIRMINGHAM

STAR1982

Leading pensions consultancy has an exciting opportunity for a part-qualified or qualified actuary with strong technical skills and communication skills to make an impact within its buy-out team.

Star Actuarial Futures Ltd is an employment agency and employment business

ASSET MODELLING ACTUARY

www.staractuarial.com INVESTMENT MANAGER

HEDGING ACTUARY

PENSIONS CONSULTANT

£ excellent + benefits

£ excellent + bonus + benefits

INVESTMENT LONDON

STAR1858

Seeking a qualified actuary to work within a multi-disciplinary environment across the pension scheme risk management spectrum. You must possess a strong investment background with an understanding of asset class behaviour.

STAR1907

Play a leading role in the development and implementation of hedging strategies within an innovative team for a global insurer. Insurance, asset management and / or transaction structuring experience a plus.

PENSIONS LONDON

STAR1942

Global multi-disciplinary financial services group seeks a qualified actuary with experience of contributing to the delivery of defined benefit pension workstreams to work on challenging projects for high-profile clients.

Louis Manson Lou

Irene Paterson FFA Ire

Peter Baker

Clare Roberts

MANAGING DIRECTOR MAN

PARTNER PAR

SENIOR S SEN IOR CONSULTANT

SENIOR CONSULTANT

M +44 7595 023 983 E louis.manson@staractuarial.com

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INVESTMENT LONDON

M +44 7545 424 206 E irene.paterson@staractuarial.com

M +44 7860 602 586 E peter.baker@staractuarial.com

September 2013 • THE ACTUARY 49 www.theactuary.com M +44 7714 490 922 E clare.roberts@staractuarial.com

29/07/2014 10:44

GENERAL INSURANCE - UK Partner Rob Bentham

London (City) Up to £200,000

Head of Capital Rob Bentham

London (City) Up to £150,000

A rare opportunity has arisen within a London based consultancy who has ambitious growth plans. They are looking to bring in a Partner to be part of the organisation’s diversiﬁcation of its services. You will be a well networked ﬁgure in the general insurance market.

A leading Lloyd’s syndicate business is seeking a Head of Capital to join them in a newly created position. You must be an experienced, qualiﬁed Actuary with a strong background in capital modelling. The role will offer unparalleled strategic input for a role of this level.

Senior Reserving Actuary Paul Francis

G.I. Actuarial Manager Sarah Robins

London (City) Up to £100,000

West Yorkshire £65,000 + Bonus + Beneﬁts

A London Market organisation, with an enviable reputation, is seeking a Senior Reserving Actuary to join their reporting team. You will be a qualiﬁed Actuary with a strong background in London Market reserving. Must have excellent communication skills.

My client is a small retail insurer in West Yorkshire. They are looking for an experienced Actuary to join their team. You will be required to have strong communication skills and reserving experience.

London Market Pricing Rachel Kelly

Long Tail Reserving Analyst Rachel Kelly

London £60,000 + Bonus + Beneﬁts

I am looking for bright, ambitious candidates with previous pricing experience to join a medium sized Lloyd’s syndicate. You will work on end to end pricing for a diverse range of business classes. Excellent communication skills required.

London £60,000 + Bonus + Beneﬁts

Highly regarded Lloyd’s syndicate seeks a part qualiﬁed Actuary to be responsible for all aspects of the reserving process for their long tail business. You will work closely with underwriters, ﬁnance & pricing teams. Previous long tail experience required.

CONTRACTS - GENERAL INSURANCE - UK Contractor - Technical Provisions Elise Ogden

UK - Multiple Locations £800 - £1,000/day

We are working with a number of clients, both London Market and retail, to carry out technical provisions calculations in line with Solvency II regulations and produce the necessary documentation.

Pricing Actuary Elise Ogden

London £800 - £1,000/day

My client is seeking a Pricing Actuary to work closely with the underwriting teams and support other functions in respect of the provision of actuarial pricing support. Reinsurance experience desirable.

LIFE INSURANCE - UK Senior Actuarial Manager London Richard Howard £80,000 - £100,000 + Bonus + Beneﬁts

Senior Project Actuary Clare Nash

Excellent opportunity for a Senior Actuarial Manager to take management of a team of two qualiﬁed actuaries, responsible for EEV reporting. You must be a qualiﬁed Actuary who is a proven manmanager and able to demonstrate excellent communication skills.

EXCLUSIVE APPOINTMENT: My client seeks to appoint a qualiﬁed Actuary to play a hands on role with high proﬁle capital, reporting and risk work. An additional (European) language would be highly advantageous.

Commercial Actuary Hugo Chambers

Modelling Systems Manager Hugo Chambers

South West £75,000 - £90,000

South East £90,000 + Superb Package

Edinburgh £70,000 - £80,000

My client is seeking a senior qualiﬁed Actuary to join their growing product development and pricing team. They are looking for a commercially minded, technically capable individual to help shape their strategy. You will have a strong track record of successful product launches and market research experience.

An excellent opportunity for an experienced modelling Actuary to join a prestigious Edinburgh based organisation. This position focuses on delivery of all aspects of the maintenance and development of actuarial modelling systems.

Internal Model Governance & Validation London (City) Natalie Lightfoot £60,000 - £85,000 + Bonus + Beneﬁts

ALM Specialist Natalie Lightfoot

Second line defence Actuary required to provide oversight on the group’s risk appetite and strategy. Experience of practical ORSA is preferable.

Opportunity for a NNQ or recently qualiﬁed Actuary to join a group head ofﬁce ALM team. You will be responsible for the ALM, market risk and credit risk for the group. This is a fantastic opportunity for a career minded Actuary to join a leading international company.

London (City) £50,000 - £60,000 + Bonus + Beneﬁts

CONTRACTS - LIFE INSURANCE - UK IMAP Actuary Kaylash Kukadia

London (City) Up to £1200/day

We are looking for senior IMAP actuaries to work in a desirable role for an exclusive client. The role requires strong IMAP experience. In addition, credit risk and/or longevity risk experience is an advantage, as is a Big 4 consultancy background.

p50-51_ACT.08.14.indd 50

Prophet Consultant Benjamin Moses

London £600 - £900/day

I am currently working on an exclusive assignment for a major international insurer, who are looking for 1-2 prophet experts. Ideally the client would like a qualiﬁed actuary with the above skills due to the scope of the work. The project is likely to run beyond the initial period of 6 months.

29/07/2014 10:46

ASIA Head of Asia Gary Rushton

Singapore/Hong Kong £££Competitive

General Insurance – UK Paul Francis

0207 649 9469

I am interested in speaking with senior insurance professionals with ideally an actuarial background to drive my client’s business development and product strategy across Asia. The successful candidate will come with a proven track record of business management.

Rob Bentham

0207 649 9351

Sarah Robins

0207 310 8552

Head of G.I. Products Toby Weston

Rachel Kelly

0207 310 8579

Hong Kong £££Competitive

Multinational insurer seeks a regional Head of Products for their G.I. & health businesses. Non-traditional position for a highly commercial G.I. Actuary working closely with marketing, pricing & distribution teams. Asian languages/experience strongly preferred.

Contracts - G.I. - UK

Head of Pricing Hamza Mush

Life Insurance - UK

Malaysia £££Competitive

Globally renowned life insurer is looking for a Head of Pricing in its Malaysian arm, where it is currently the market leader by a signiﬁcant margin. Highly visible position with huge long-term potential for an Actuary with extensive product/pricing experience.

Regional FRM Manager Rhoda Rivera

Hong Kong £££Competitive

Elise Ogden

0207 649 9355

Clare Nash

0207 649 9350

Richard Howard

0207 649 9356

Natalie Lightfoot

0207 310 8547

Hugo Chambers

0207 310 8642

Our client is one of the largest insurers globally, looking for a ﬁnancial risk management professional to lead the implementation and maintain risk frameworks and policies compliant to group and external regulations. Insurance & mortality risk knowledge essential.

Contracts - Life Insurance - UK/Europe Benjamin Moses

0207 310 8793

Regional Manager - Capital Management Rhoda Rivera

Ani Pannell

+353 144 75975

Kaylash Kukadia

0207 310 8581

Hong Kong £££Competitive

An international life insurer seeks a qualified Actuary to work within their cash and capital management regional team. You will be looking at strategic asset allocation, reinsurance and financial analysis for the region. You must be qualified with strong financial reporting and valuation background (EEV, MCEV). Asian market experience highly preferable.

Asia Gary Rushton

+852 5804 9223

Singapore £££Competitive

Toby Weston

+852 5804 9042

Rapidly expanding consultancy seeks an ambitious G.I. Actuary to join its SE Asia practice, strong technical reserving skills required to consult to the region’s most prestigious insurers. Broad range of audit and advisory work. Mandarin preferred, but not essential.

Philip Chau

+852 5804 9287

Hamza Mush

+852 6086 9879

Rhoda Rivera

+852 5804 9225

Consulting Actuary Toby Weston

EUROPE Valuation Actuary - Life Emérique Opou

France Paris €80,000 - €90,000 + Bonus

You will be part of an international project involving life insurance and reinsurance. My client needs an individual with a background in modelling, EEV/EV/MCEV, Prophet or MoSes and reserves calculations, although you will not be producing calculations.

Senior Actuary - Health Emina Biscevic

Germany €€€Competitive

Emérique Opou

+33 1 76 77 46 30

Agathe Ibazizen

+33 1 76 77 46 31

Ireland Patrick McMahon

+353 1 437 0625

Benelux

A leading reinsurance company is looking to hire a Senior Actuary to join their R&D department focused on biometric risks. You will be in charge of pricing for MedEx business and will work closely with international subsidiaries. DAV qualiﬁcation required.

Niels van Nieuwkerk

+31 20 716 8327

Laurence Baken

+32 24 012 249

Life & Health Risk Actuary Manuel Lovell

Germany

Munich €€€Competitive

My client is looking for a qualiﬁed Actuary to join their L&H risk management team, responsible for the modelling methodologies and frameworks throughout the company. You will be expected to shape perceptions and present recommendations to senior management.

Head of Propositions & Pricing Patrick McMahon

Dublin €€€Competitive Salary + Beneﬁts

This excellent opportunity is with a small insurer in Dublin but part of a large and ambitious group with plans for growth in the Irish entity. The successful candidate will sit on the senior management team. Clear career progression opportunity.

Actuary Risk Reporting Niels van Nieuwkerk

The Hague €€€Competitive

Our client is an international insurance group. The organisation seeks to recruit an experienced Actuary to support the risk reporting team. In this role you will focus on high quality reports of Solvency II and MVN results on group level.

Senior Actuary Niels van Nieuwkerk

Amsterdam €€€Competitive

Our client is a large credit risk insurance group with a presence in over 20 countires worldwide. The company seeks to recruit an Actuary with extensive P&C experience. This is an exciting reserving position with exposure to IFRS 4 phase 2.

p50-51_ACT.08.14.indd 51

Manuel Lovell

+49 89 2109 3362

Emina Biscevic

+49 89 3803 8965

Alessio Montaruli

+49 89 2109 3339

Switzerland Audrey Dresen

+41 43 508 0444

Please contact one of the team for further information on any of the opportunities above or visit www.ojassociates.com/jobs

General Contact Details:

actuary@ojassociates.com

www.ojassociates.com @OJAssociates oliver-james-associates

29/07/2014 10:46

www.the-arc.co.uk

The Actuarial Recruitment Company

A fresh approach

Senior Reserving Actuary General Insurance London Circa £130K plus good bonus

Pricing Actuary London

A Senior Reserving Actuary is required for this international reinsurance company. The role will involve management of a team of actuaries and cover a range of property, casualty and specialty reinsurance lines. Responsibilities include production of quarterly reserves and financials, analysis of reserve risk for the internal capital model and Technical Provisions, development of new reserving and reporting tools and ensuring compliance with regulatory requirements. The client is looking for a qualified actuary with a number of years relevant reserving experience. Ref: ARC26256

This role with an international insurance and reinsurance business will lead the development of the technical pricing across various professional lines products. The role will involve technical pricing of individual risks, rate and exposure monitoring, evaluation of new business opportunities, assistance in the implementation of more comprehensive data capture. Management of a small team will be required. A London Market background is essential as well as strong interpersonal and managerial skills. Ref: ARC26255

Lead Capital Actuary London

Business Actuary London

General Insurance Circa £100K

General Insurance To £140K plus excellent benefits

General Insurance Circa £110K

This established Lloyd’s operation requires a qualified actuary to

This established London Market business needs a qualified actuary for

lead the capital modelling within the business and to manage a

varied role including pricing, reserving and business planning across

small team. The client is looking for a self motivated individual with

a number of classes of business. The client will be looking for an

strong technical knowledge in capital modelling and Solvency II and

academically strong candidate from a commercial general insurance

with good communication skills. For the right candidate this role has

background who can provide a consultative approach in support of the

scope to take on significant responsibility and for upwards career

underwriting team. Ability in project management and in managing more

progression. Igloo knowledge would be useful. Ref: ARC26227

junior members of staff will need to be demonstrated. Ref: ARC25261

Call us anytime including evenings and weekends on 020 7717 9705 or email enquiries@the-arc.co.uk Andy Clark BSc FIA Roger Massey BSc MBA FIA

0781 333 7891 0781 398 9016

andy@the-arc.co.uk roger@the-arc.co.uk The Actuarial Recruitment Company is an employment agency

p52_ACT.08.14.indd 52

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