The Actuary January/February 2016

JANUARY / FEBRUARY 2016 theactuary.com

Interview: Susan Rice

The magazine of the actuarial profession

On banking, risk and sustainable business

Risk Pandemics: how prevention is better than cure

Insurance Understanding the takaful model

Solvency II Getting to grips with the new regime

SECURITY MEASURES Meeting the social challenges of climate change p01_jan_feb_covers_FINAL•CT.indd 1

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People are inherently optimistic.

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

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Contents

JANUARY / FEBRUARY 2016

14

Climate change has an impact on economic growth but also social cohesion... This is where social security and protection systems come in

17

30

UP FRONT 9

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

OPINION 4

Editorial New editor Richard Purcell comments on developments within the industry, climate policy and The Actuary team

5

7

Letters

FEATURES

AT THE BACK

14 Interview: Lady Susan Rice

33 Books

Discusses the banking industry, emerging risks, and sustainability

20 Internal audit: An inside job Andy Cox gives tips about what goes on inside an internal audit department

22 Takaful: At a crossroads A lack of understanding could hamper takaful, says Zainal Abidin Mohd Kassim

Joseph Lu considers the risks of

President’s comment

towards prevention

pandemics, and how actuaries can work

CEO’s comment Give voice to your thoughts on the EU referendum, urges Derek Cribb

13 Soapbox Karel Van Hulle considers the new Solvency II regulatory landscape

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

COVER: VINCE FRASER

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Jessica Elkin suggests planning for a worse-case scenario, and the challenge of new frontiers

35 Puzzles Try the latest cryptic crossword and Mensa puzzles

38 Actuary of the future Namrata Bagree of Prudential

38 Appointments and moves

28 Spotlight: A measured approach The role of actuaries in the context of

8

34 Student

36 People/society news

25 Risk: Pandemics

Actuaries discuss the environment, investment risk and regulation

Fiona Morrison comments on how volunteering benefits the profession

Peter Tompkins reviews Misbehaving: The Making of Behavioral Economics by Richard Thaler

climate change. Nico Aspinall talks to Cintia Cheong.

ONLINE Agony actuary: Rumour has it

30 Climate change: It’s a fair COP Mike Clark reports on a sustainable

Advice on the unusual behaviour of ‘Adele’.

Read more at : bit.ly/1SGZi7C

investment forum during COP21

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Editorial editor@theactuary.com

All change New editor Richard Purcell comments on developments within the industry, climate policy, and The Actuary team

change means for stranded assets (p30), while Simon Brimblecombe discusses the impact on social security systems (p17). Actuaries have a big role to play here too, and Nico Aspinall reflects on how we can best use our skills in risk management to support change (p28).

Our interview this month is with Lady Susan Rice.

A keen proponent of sustainability, she discusses the ways in which businesses and industry can also play their part (p14).

Lastly, we also see a few changes to the magazine itself. We welcome some new members to the editorial team this month; Sheila Harney, Stephen Hyams and Garry Smith join us as features editors.

I’d also like to thank my predecessor Kelvin Chamunorwa for his significant contribution over the past two years.

As you explore this issue you will see some small changes to the layout, which we hope you like.

We would love to hear your views on the magazine and what you think the big issues will be for the year ahead.

So it just leaves me to wish you a prosperous 2016.

As I write my very first editorial, change seems to be an overriding theme in many respects. One topic that is close to home for many of us is Solvency II. After more than a decade in development, hundreds of millions of euros invested, and countless hours of negotiation, we saw the new pan-European regulatory regime for insurers finally go live on 1 January 2016. While it is by no means perfect, Karel Van Hulle, one of the regime’s original architects, reflects on the final outcome and warns against any hasty changes (p12).

Perhaps the biggest change affecting the world today is to the climate. Whatever your views on the subject, the United Nation’s climate change conference in Paris no doubt exceeded expectations. In this issue, Mike Clark asks what climate

“Whatever your views on climate change, the UN conference in Paris no doubt exceeded expectations”

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Editor Richard Purcell editor@theactuary.com Features editors features@theactuary.com Jeremy Lee, pensions, investment, ERM, banking Garry Smith, life, banking, risk Gemma Gregson, GI, reinsurance, environment Stephen Hyams, pensions, modelling Sheila Harney, life, regulation People/society news editor Yvonne Wan social@theactuary.com

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Delivery queries: contact Rachel Young E rachel.young@redactive.co.uk Published by the Institute and Faculty of Actuaries (IFoA) The editor and the IFoA are not responsible for the opinions put forward in The Actuary. No part of this publication may be reproduced, stored or transmitted in any form, or by any means, without prior written permission of the copyright owners.

While every effort is made to ensure the accuracy of the content, the publisher and its contributors accept no responsibility for any material contained herein. © Institute and Faculty of Actuaries, January / February 2016 All rights reserved ISSN 0960-457X

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26/01/2016 15:59

Opinion Letters to the editor

The evolution of ERM

Have your say online

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

No whitewash of green issues Mr Solomon Green’s letter of 11 November (The Actuary, December 2015, bit.ly/1RUVcJo) casts doubt on the competence of all those men and women working in the complex and important field of climate modelling. While it is entirely proper that good actuaries can offer some level of impartial critical interrogation in fields in which they claim no expertise, it cannot be right that this can then morph into outright condemnation and ridicule of an entire profession.

It has taken considerable effort to restrain my language, so I will restrict my remarks to commenting on the seemingly widely held misapprehensions concerning the apparent undershoot in the rate of warming since approximately 2000 – the so-called ‘global pause’ or ‘hiatus’. I emphasise rate, because the absolute temperatures tell us that most of the hottest years ever recorded have happened this century (see, for example, NASA data). It is not getting any cooler. But it may be true that the rate of increase since 2000 has flattened off.

As far as I understand it (see the National Oceanic and Atmospheric Administration), there are always going to be temporary (decadal) variabilities. In recent years, this has been due primarily to a series of negative El Niño years together with a phenomenon known as the Pacific Decadal Oscillation. There have also been a number of volcanic eruptions and other similar variable effects (Scripps Institution of Oceanography provides evidence for the El Niño effect).

But the energy imbalance caused by the greenhouse gases covering the planet is still in effect. Just because the surface temperatures ‘only’ increased at a reduced rate since 2000 doesn’t mean that global warming did not continue. Excess energy doesn’t just vanish. It melts ice, it causes evaporations and, in particular, it warms the deep oceans. This last is significant. Measurements down to 2,000m, 700m and 300m below sea level show a marked increase in oceanic warming since 2000, particularly at the deeper levels (Balmaseda et al, 2013).

Finally, the rate of increase may have flattened off. This was indeed what the Intergovernmental Panel on Climate Change (IPCC) concluded in its fifth assessment report. However, in recent years, scientists have been looking hard at the data used by the IPCC (TR Karl et al, Science, 2015). The network of the observation points used to collect this data are expanding and changing, particularly sea-surface temperatures, which rely in part on thousands of commercial ships. There has also been an increase in land-station data. In summary, to quote from the paper in Science, “newly corrected and updated global surface temperature data … do not support the notion of a global warming ‘hiatus’… Indeed, based on our new analysis, the IPCC’s statement … is no longer valid.”

As actuaries, we know all models are wrong, but we can still conclude that some are still useful. However, it casts us in an appalling light if we start issuing blanket condemnations in ignorance of all the facts.

(Although I sit on the IFoA’s Resource and Environment Board, and chair the IAA’s Resource and Environment Working Group, this letter is written in a personal capacity and the views are my own.)

Kenneth Donaldson, Fellow 13 January 2016

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

Paul Harwood’s article, The Evolution of ERM (The Actuary, June 2015, bit.ly/1QZY73e), “discusses how to optimise the second generation of enterprise risk management (ERM)”, and makes the following statement: “In summary, second-generation ERM is about ‘better decision making’ (BDM ERM), which adds value when its users, primarily boards and managers, are confident that they are overseeing, or making, quality decisions. BDM ERM connects risks and actions more directly than hitherto”.

This statement resonated strongly with a recent paper of mine, which placed ERM in an optimal stochastic control-theoretic framework. The paper can be found at http://ssrn.com/abstract=2660026 by any who wish to study the detail. However, in broad terms, the reasoning runs as follows: ● Most for-profit organisations operate according to some profit objective that is to be maximised ● But this optimisation will usually be constrained in such a way as to avoid (at least, with high probability) certain undesirable situations – dangerously thin capitalisation, overly volatile business volumes ● The constraints can be interpreted as the embodiment of risk management. The constrained optimisation formulation creates the necessary tension between the profit objective and ERM. The paper shows how this formulation may be placed in correspondence with an ERM Integrated Framework such as COSO. Many past pronouncements on ERM have been dogged by two criticisms: 1. That risk management is essentially negative, a panoply of restrictions that reduce the potential for profit 2. That, in delivering quantitative conclusions in only the vaguest form, ERM is of limited value for informing business decisions in the manner contemplated by Paul Harwood’s article.

As the third bullet point above makes clear, the first of these criticisms is valid as long as one considers risk management in a vacuum, rather than as a subset of considerations within a larger, profit-orientated system.

My paper endeavoured to add this profit dimension.

It endeavours to establish a fully quantitative optimal control model. The practical implementation of this should lead to results that assist in business decision-making.

Greg Taylor Adjunct professor, UNSW Business School, Australia 14 January 2016

A trust exercise I have read Charles Cowling’s letter very carefully (The Actuary, December 2015, bit.ly/1T7XqEa) and, in the spirit of promoting harmony, I would like to highlight a sentence in it with which I agree. He says: “If we never had to worry about companies going bust, we would not need to be so concerned about deficits and short-term volatilities.”

Since the creation of the Pension Protection Fund (PPF) in April 2005, the worst-case scenario for a

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 March 2016 issue is 18 February 2016.

January / February 2016 • THE ACTUARY 5 www.theactuary.com

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26/01/2016 10:30

Opinion Letters to the editor

Aon Benfield

pension scheme whose sponsor has gone bust is entry into the PPF. In the PPF, members receive sufficient benefits to satisfy the EU and the UK government that their interests have been protected. The PPF is a trust-based scheme, with many sponsors of impeccable aggregate covenant – ultimately, these are all the employers sponsoring all other trust schemes.

Given that benefits are either provided in a trust sponsored by the originating employer or from a trust sponsored by all other employers, please can we not be so concerned with (solvency) deficits and short-term volatilities? And instead put together a prudent plan for the cashflows of the trust?

Leaving aside the valuation and asset liability management black boxes and taking a direct look at the cashflows can be very revealing. A cashflow analysis comparing contributions and the income from the assets with the outgo on benefits is a great place to start the construction of a long-term funding and investment plan.

Derek Benstead, Fellow 7 December 2015

Cost of regulation

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Risk. Reinsurance. Human Resources.

Owen Kelly-Smith’s letter, Cost of Regulation (The Actuary, December 2015, bit.ly/1nbgkh9), calls for a review of the merits, or otherwise, of continuing to be a regulated profession. “As the downsides of remaining regulated rise,” he argues, “the choice of whether to remain so will come more sharply into focus.”

The pressures on professional people may never have been greater, but equally important, we would argue, is trustworthy advice from regulated professionals. Without regulation, and the ethical values which it embodies, we risk sacrificing the public esteem in which this profession is still, rightly, held.

The challenge, of course, for the IFoA, as with other professional bodies and regulators, is to ensure the balance and proportionality, as well as effectiveness, of its regulatory regime. Hence, for example, our commitment to outcome-focused regulation, an approach which emphasises individual professional judgment over ‘tick-box’ compliance. The Quality Assurance Scheme (QAS) recently launched is a pertinent example of the potential power of ‘regulation by assent’: a voluntary scheme that has already attracted substantial participation from actuarial employers committed to the importance of quality and professionalism.

Where necessary, we must be robust in defending our professional standards. In the disciplinary cases to which Mr Kelly-Smith refers, the tribunal found the two actuaries concerned “had breached the technical actuarial standards and the [Actuaries’] Code in a number of regards” and it was “concerned by the pattern of conduct and, in particular, the poor professional judgment revealed by these matters”. It found one of the actuaries involved guilty of professional misconduct, imposed a fine and awarded the IFoA its full costs in bringing the case to the tribunal on behalf of the profession.

It is important, we would argue, that we maintain quality and professionalism and that we act decisively where we identify conduct that has fallen significantly short of those standards. Only thus will we serve not only the public interest but also the brand and reputation of our profession.

Comments on the IFoA’s regulatory work are always welcome, to regulation@actuaries.org.uk.

Desmond Hudson, chair (lay), IFoA Regulation Board Keith Oliver, chair (lay), IFoA Disciplinary Board 6 January 2016

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

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26/01/2016 10:59

Fiona Morrison is the president of the Institute and Faculty of Actuaries

President Comment

Life is not about sitting on the sideline...

As regular readers will know, I am an avid listener to BBC Radio 4’s Today programme.

Putting the radio on and getting my news fix as I prepare myself for the day ahead is well and truly embedded into my daily routine.

The format of the programme really works for me. I find the news interesting, the political jockeying entertaining and the feature reports fascinating.

It was one of these feature reports a couple of weeks ago, with Andy Haldane, chief economist at the Bank of England, that really caught my ear and stopped me in my tracks.

The commuters among you will be relieved to hear that I did not miss my train.

Here was a senior figure talking about volunteering and the need to do more to recognise and calculate the value of the contribution that volunteers make to the country’s economy. The statistics quoted were staggering. Haldane estimated that in the UK 15 million people volunteer on a regular basis, rising to 30 million when you include those who give small amounts of sporadic help. That is the equivalent of the working hours of people employed in manufacturing across the whole of the UK. While the UK has a proud tradition of recognising the value volunteers give to society through the Honours system, the Bank of England has attempted to put a monetary value on this. It estimates that the contribution volunteering makes to the country’s economy is at least £50bn a year and could be as much as £100bn. I know this is stating the obvious, but that is not an insignificant amount of money – a point not lost on the BBC, which highlighted that this is similar to the amount we spend annually on defending the nation or educating our children.

This story resonated with me on a number of levels, but primarily it brought into sharp focus the scale and value of volunteering within the IFoA. For an organisation that has just over 28,000 members, it is quite remarkable to think that more than 3,500 of you give up some of your precious spare time to give something back to your profession by undertaking an optional role. Speaking to the lay members of our boards and

Fiona Morrison comments on how volunteering benefits us, the profession, and society more than we might imagine committees, they tell me that this level of engagement is extremely unusual for a membership organisation.

For me, throwing your hat into the ring is part of the DNA of the Institute and Faculty of Actuaries. Working in partnership with our dedicated executive staff, volunteers use their skills and experience to support and enhance our membership body, and use their intellectual expertise to advance our research and thought leadership.

We know that our organisation wouldn’t exist without this dedicated force. This is why part of our strategy is ‘to provide appropriate opportunities for members to volunteer’. As a body we fully recognise the value this brings to our organisation, ensuring that it not only remains relevant to the membership but also that we remain relevant as a profession to business and society.

You just have to look back over the past two years to witness the change in volunteering opportunities that have arisen. Two years ago, we advertised 127 vacancies in the sessional year, which led to 544 offers of support. Last year, we advertised 250 vacancies, which generated 1,199 offers!

“More than 3,500 of you give up some of your precious spare time to give back to your profession”

As many of you will be aware, I’ve been an active volunteer for many years, and at times it is really demanding trying to balance a busy work and personal life with this. I have found this even more so during my year as president and, worried that my family and friends have forgotten what I look like, I send them a copy of The Actuary each month so that they can read what I am up to and remind them what I look like.

Despite this challenge, I have always found volunteering to be wonderfully fulfilling, as well as offering opportunities to develop skills outside the day job.

Michael Tripp, the current chair of the GI Board, summed this up quite nicely for me when he said: “Life is not about sitting on the sideline, but going on the pitch and taking part.” This was brought to life for me on a trip to India last year, where I met a number of actuaries who in their spare time have been teaching mathematics to young children, many of whom come from economically and sometimes socially marginalised families.

Hearing about their initiative made me proud to be an actuary, and I am looking forward to meeting those young children, and the volunteer actuaries, on my next trip to India.

So as the New Year starts, for those of you who have sat on the volunteering sideline, I encourage you to get off the bench and onto the pitch. You might just be pleasantly surprised. a

January / February 2016 • THE ACTUARY 7 www.theactuary.com

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26/01/2016 09:33

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

CEO Comment

Your chance to join the great EU debate I would like to take this opportunity to welcome you back to The Actuary and to a new-look column for 2016. It is my belief that this year will be one of a bolder, innovative and more proactive Institute and Faculty of Actuaries (IFoA).

As part of this proactive view, the IFoA has created the EU Referendum Working Party.

Much of the core information needed for informed decision-making touches on the work of our members – whether in actuarial science, demographics or broader financial services.

I am very much looking forward to seeing the activities and outcomes of the working party over the next few months.

The EU referendum is a once-in-ageneration issue that will affect the UK in many ways – and over the long term. The UK government is currently negotiating its relationship with the EU, focusing on better economic governance, more competitiveness, national sovereignty and curbs on immigration benefits.

As a Royal Chartered professional body, we believe it is our public-interest duty to look at these issues closely to help inform the public, using the unique actuarial skills and expertise that we can bring.

We must go beyond the ‘black and white’ debate and analyse the long-term risks and benefits of remaining in – or leaving – the EU. First, we will look into the potential effects of the vote on state pension and (re-)insurance systems, and the sustainability of these systems.

Second, we want to inform, and start, debate among members. The EU referendum is 2016’s big issue, and may affect our international members as well as those in the UK. We would like to hear all of you voicing your thoughts, ideas, concerns and questions.

We have reached out to all our regional societies to help stimulate debate, and will be using our many communications channels to raise awareness of our work in this area.

We also plan to organise two national debates, in London and Edinburgh, targeting our members as well as external business,

Derek Cribb urges members to give voice to their thoughts and play an active role in 2016’s big issue – the EU referendum political and media stakeholders.

The referendum debate is not only rich ground for applying actuarial science but is also a great chance to raise the profile of actuaries’ skills as well as awareness of the IFoA. We should grasp such opportunities with both hands.

This is an exciting time for the IFoA and its public affairs activity, and the results of this work will be reflected in our visibility and reputation in the public sphere.

If you are interested in sharing your thoughts and ideas with the EU Referendum working party, please email Tim Werkhoven, the IFoA’s policy adviser, at tim.werkhoven@actuaries.org.uk.

In this issue of the magazine we are also looking back at some notable achievements of 2015, and there’s one particular area I’d like to highlight as raising our profile and reputation outside our traditional stakeholder group.

In December, the IFoA attended COP21, the United Nations international climate change conference in Paris. Nico Aspinall, chair of the IFoA Resource and Environment Board, presented our thinking on actuarial principles

“The referendum debate is a great chance to raise the profile of actuaries’ skills – we should grasp such opportunities with both hands”

8

for risk management for climate change at the World Business Council for Sustainable Development (see p28).

The presentation was extremely well received and shows there is a clear appetite for actuarial insight into climate risk.

It sits alongside the workshop we hosted earlier in the year on the role of insurance regulation in supporting adaptation to climate change for the Prudential Regulation Authority.

This workshop contributed to a speech on the topic given by Mark Carney, governor of the Bank of England.

Where there are opportunities to both fulfil our public interest role and raise the profile of actuaries, then we have a sweet spot we must make the most of.

I have focused on two areas here, and there will be more we identify – whether from within the executive function or through the extensive volunteer members base.

If you would like to contribute to your profession as a volunteer, please contact Debbie Atkins, head of volunteer engagement: debbie.atkins@actuaries.org.uk.

In doing so, you will also be helping to drive forward the IFoA vision that: “We will serve the public interest by ensuring that where there is uncertainty of future financial outcomes, actuaries are trusted and sought-after for their valued analysis and authority.” a

THE ACTUARY • January / February 2016 www.theactuary.com

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26/01/2016 09:33

News ARIAL PROFESSION

Upfront COP21: action on climate change ‘a mainstream concern and smart business choice’

We expect to see major policy developments in 2016 on climate change and the role of business. In particular, these developments could have major implications for the actuarial profession, and the IFoA looks forward to informing the debate.

On December 11, governments reached a historical agreement in Paris to tackle climate change. The 21st UN Climate Change Conference (COP21) has gone further than some thought possible, with leaders agreeing to limit any global temperature rise

to well below 2°C and to pursue efforts to limit this even further to 1.5°C. Supporting this goal are pledges to cut and curb emissions in the short term, to achieve net zero emissions over the long term, and to introduce five-yearly emission review mechanisms to ramp up emissions reductions. This is supplemented by a promise to raise $100 billion a year by 2020 to help poor countries adapt their economies towards a low-carbon path.

It is an important step forward, with an unprecedented number of countries agreeing to a deal avoiding the worst effects of climate change. It has sent an important signal at the international level that our future needs to be low carbon and has provided a framework to move forward, but it will be up to business to deliver these ambitious targets.

Speaking at the British Embassy

in Paris on the low-carbon economy, UK energy minister Lord Bourne made it clear that firms need to move away from thinking about climate change as a corporate social responsibility issue to one that is a mainstream concern and smart business choice.

On the one hand, climate change poses risks to supply chains, infrastructure, energy and resources such as water, which will need to be managed. But the transition to a low-carbon economy will require substantial capital and present investment opportunities – the financial community will be the ones to drive the transition. This means: ● Increasing financial flows for climate-resilient infrastructure and renewable energy ● Introducing low-carbon investment strategies and considering the advantages of green bonds ● The financial sector and

investors will need the necessary information in a regular and transparent manner in order to factor these risks into decisions in a meaningful or proactive fashion.

Transition risk and disclosure have moved to the top of the political agenda for many countries, and 2016 looks set to be a major year on that policy front.

China has placed the transition to a green global economy and channelling finance into green industries as a central theme of its G20 presidency in 2016.

The G20 Taskforce on ClimateRelated Financial Disclosures, led by former New York City mayor Michael Bloomberg, will develop voluntary, consistent climaterelated financial risk disclosures for use by companies in providing information to lenders, insurers, investors and other stakeholders.

And, lastly, the next UN Climate Change Conference – COP22 – in Morocco will put business centre stage.

New director of education joins team

Meet IFoA leaders at Global Conference

We are pleased to announce that our new director of education, Clifford Friend, joined the IFoA team in January. Friend has a distinguished academic record at Cranfield University, including a period as acting vice-chancellor.

Friend is an engineer by training, with a first-class honours degree and a PhD from the University of Surrey. He has strong international links and had strategic oversight of Cranfield University Technology Park. He also worked on developing regional and national funding for the university.

He is a Fellow of the Institute of Directors and an elected member of the Confederation of British Industry (CBI) Council.

The IFoA is once again proud to sponsor this year’s Global Conference of Actuaries.

Organised by the Institute of Actuaries of India, the conference will take place in Mumbai at the Renaissance Mumbai Convention Centre Hotel on 1-2 February.

The IFoA leadership team will be playing an active role in the conference, chairing plenary sessions and leading the student event.

IFoA president Fiona Morrison and chief executive Derek Cribb, along with newly appointed director of education Clifford Friend, look forward to meeting the many IFoA members who are likely to be attending the conference. For further information, go to: actuariesindia.org/gca/homepage.htm January / February 2016 • THE ACTUARY 9 www.theactuary.com

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26/01/2016 09:34

News

Disciplinary tribunals: what they mean for you

In the third part of our series on the IFoA’s Disciplinary Scheme, we explore what happens at a disciplinary tribunal panel You have just heard an allegation against you has been referred by the adjudication panel to a disciplinary tribunal panel.

What next?

The case manager and investigation actuary who were investigating the allegation now act for the IFoA and become the prosecutors of the allegation.

They will prepare a formal charge that will then be served on you and submitted to the disciplinary tribunal panel. You will then be advised and consulted by the secretary of the panel as to the date, time, and location of the hearing.

What is a charge and what should I do?

A charge is the formal document setting out that you are charged with misconduct, as defined in the IFoA Disciplinary Scheme, and as such have fallen below the standards of behaviour, integrity, competence or professional judgment that other members or the public might reasonably expect. It will set out the specific issues that are considered to contribute to misconduct and will include a statement of all the material facts with the evidence relied upon in support of the charge of misconduct.

You have the opportunity to submit a written defence to the charge. The IFoA is unable to advise you on how to prepare your defence. You may choose to represent yourself, but it is strongly recommended that you seek legal representation and advice. You have a period of 21 days from service of the charge to submit your written defence.

What happens at the disciplinary tribunal panel?

This is a public hearing, where a panel will decide whether the allegations against you amount to misconduct. The panel

comprises at least three people – a mix of IFoA members and ‘lay’ members – and is advised by a legal adviser. It follows the procedures adopted in UK civil courts, with each party (the IFoA and you, and respective legal advisers) introducing their case, calling witnesses who may be cross-examined by the other party. Both sides have the opportunity to make a closing submission.

The panel then has to decide on the balance of probabilities: ● Whether you did behave in the way alleged – in other words, whether the facts alleged against you have been proven ● If so, whether that behaviour amounted to misconduct ● If so, whether one or more sanctions should be imposed.

As this is a principles-based test, a number of minor breaches of professional standards may not amount collectively to misconduct, whereas a single but more serious breach may amount to misconduct.

What are the possible sanctions?

A disciplinary tribunal panel has a wide variety of sanctions available to it, ranging from a fine to expulsion from the IFoA for up

to five years. It also has the power to award costs against you.

What happens after a disciplinary tribunal panel?

A fully reasoned written determination will normally be provided to you within 10 days of the hearing, and will then be published in full on the IFoA website and in summary in The Actuary. It will record which of the allegations were found to be proved or not proved. The document will put the panel’s decisions in context and explain its reasons as to whether there has been a finding of misconduct and for any sanctions imposed. It is important to remember that even where some allegations have been found to be proved, it is not necessarily the case that each one individually will amount to misconduct. The panel will make its decisions having regard to all of the allegations found to be proved.

As the respondent, you have a right of appeal against any adverse decision of the disciplinary tribunal panel under grounds set out in the Disciplinary Scheme.

More information is available at www.actuaries.org.uk

Appeals tribunal panel: Mr Michael James Asher On 26 November 2015, the appeals tribunal panel considered an appeal against the determination by a disciplinary tribunal of a finding of misconduct against Mr Michael James Asher relating to non-compliance with a monitoring exercise carried out by the IFoA in respect of CPD year 1 July 2010 to 30 June 2011.

Further charges relating to a failure to retain sufficient records and failure to demonstrate that appropriate and sufficient continuing professional development (CPD) had been undertaken in respect of the same CPD year had not been proved before the disciplinary tribunal panel and had been dismissed.

The appeal tribunal panel noted that the disciplinary tribunal panel finding rested not on a conclusion that Mr Asher was subject to the CPD scheme but rather on a breach of an obligation to point out at an early stage that he was not required to do CPD at all because he was not in paid work. On this view, compliance with the CPD scheme extends even to those not subject to it in the first place.

The IFoA indicated in advance of the appeal hearing that it would not resist the appeal, as it had not been proved at the disciplinary tribunal that Mr Asher was subject to the CPD scheme in operation at the time.

In allowing the appeal, the appeal tribunal panel stated that it was 10

“incumbent” upon Mr Asher to inform the IFoA at all times, but certainly in 2012, that he was not in paid work and that he therefore was not subject to the CPD scheme to do CPD activities at all.

The appeal panel considered this obligation to be more than one of mere courtesy, stating that: “…there is a professional duty arising out of the terms of the Actuaries’ Code on any member when called upon to supply evidence of compliance with the CPD scheme, to say at the earliest possible opportunity (if that is his case) that he is not obliged to comply with the requirements of the CPD scheme because of factors he is aware of but of which the IFoA cannot be so aware.” Despite the lengthy history of the matter, Mr Asher had only told the IFoA that he was not in fact subject to the CPD scheme after the start of the formal hearing into the allegation of misconduct. Delays and adjournments had been caused by this late notification of the true nature of his defence. It was entirely possible that, had he made clear his position earlier, there would have been either no hearing at all or a much shorter hearing.

In the circumstances, the appeal against the finding of misconduct was allowed, the sanction of a reprimand was quashed, but the costs award against Mr Asher remained at a contribution of £5,000 inclusive of VAT towards the IFoA’s costs at first instance.

The full determination, including the appeal tribunal panel’s reasoning, is available on the IFoA website at bit.ly/1SDZC6c

THE ACTUARY • January / February 2016 www.theactuary.com

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26/01/2016 09:34

Members of the new committee, pictured with IFoA president-elect Colin Wilson

CANUK appoints Steven Yang Yu as new president The Chinese Actuarial Network UK (CANUK) is pleased to announce that Steven Yang Yu has been appointed to replace Feifei Zhang as the network’s president.

Yang Yu, who is a Fellow of the IFoA, is currently co-managing Redington’s award winning team of quantitative asset liability management (ALM) analysts.

In recent years, he has become a member of Redington’s executive committee and influences the firm’s strategic direction.

Ji Yao and Haijing Wang will continue their roles as vice-presidents of the network in the UK and China, respectively; and William Wu is appointed as general secretary.

Ex-president Feifei Zhang will soon be returning to China to pursue new challenges. CANUK would like to thank all the committee members for their leadership and support of the network and to wish them the very best of luck in future.

Details of the committee can be found on the CANUK page on the IFoA website at bit.ly/1TJhzi0

Simplify your research with new online resources Members now have access to over 500 journals in one online archive. Digital library JSTOR offers high-quality interdisciplinary content to support research.

Highlights include back copies of the British Medical Journal, the Journal of Risk and Insurance and the Journal of the Royal Statistical Society, series A, B, C and D. Hundreds more titles can be searched through one portal. Members can also access the complete Journal of the Institute of Actuaries and Transactions of the Faculty of Actuaries. This represents almost 150 years of British actuarial history, including research, membership lists, annual reports and exam papers. To access JSTOR, log in to the eLibrary with your Athens password.

In 2016, we will review how online library content is delivered. If you have any feedback, let us know at libraries@actuaries.org.uk. You can also use this address to request an Athens password.

Fancy a new role for the new year?

Volunteer to help your profession A new year brings new challenges – this could be your chance to branch out and try something new.

Volunteering means different things to different people. Some see it as an opportunity to develop personal and professional skills, while others value the opportunity to give back to their profession.

If you’re interested in getting involved, take a look at the current vacancies on our volunteer vacancies web page at bit.ly/1mKL1JE These include: ● Chair of the Education Committee and deputy chair of the Board of Examiners.

These two senior roles will require experienced, proactive and forward-thinking individuals, who are passionate about education. The holders will be required to build upon the high quality of our education processes and help shape the future of education strategy. ● Research peer review pool. This is a new

opportunity to support the quality assurance of the IFoA’s research output. ● Become a CPD co-ordinator for your organisation. Organisations that employ at least three qualified actuaries are encouraged to appoint a CPD co-ordinator. This is an IFoA recommendation.

Roundtable event tackles challenge of long-term care On 10 December, the IFoA hosted a roundtable to mark the launch of a member-led report on how financial products can help people pay for long-term care. We had panellists from The King’s Fund, Age UK and the Association of British Insurers, as well as academics, think-tanks, consumer champions and providers in attendance. This meant we were able to discuss the report’s findings in the wider context of policy and industry developments, without losing sight of those with care needs.

Despite the rising number of people with care needs, the funding of social care as a share of gross domestic product is in decline. There is a lack of political consensus on how we can respond to this challenge – implementation of the second phase of the Care Act (2014) has now been deferred to 2020, and there are doubts as to whether these reforms will be introduced at all.

The current funding system is complex, and many people still do not understand that they will have to pay for their care needs. Financial planning for long-term care cannot be looked at in isolation from the entirety of someone’s retirement income needs, and in the new post-freedom environment individuals are increasingly going to be faced with complex financial decisions. We therefore recommended: ● A comprehensive approach to collecting data on how people are using their assets post freedom and choice; and ● An awareness-raising campaign of the costs people face should they have care needs.

For details email policy@actuaries.org.uk The full report can be found at bit.ly/1JwICgf

Support for our volunteers All members of the IFoA benefit from the time given by their peers, both past and present, who volunteer to help achieve our strategic objectives and to advance actuarial science. To support those volunteers, a Volunteer Induction Pack (VIP) has been created and can be found on our website. It has recently been updated and now includes a section on ‘Complying with the Bribery Act 2010’. You can view the VIP at: bit.ly/1PkaGUX. This January, we are also launching a new resource called ‘Key information for chairs’.

It has been designed to help the people chairing our boards/committees (and those who work with them) to uphold the principles of the IFoA’s Governance Manual and VIP. There will also be a version for working party chairs.

To receive a copy, please email: debbie.atkins@actuaries.org.uk

January / February 2016 • THE ACTUARY 11 www.theactuary.com

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26/01/2016 09:34

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26/01/2016 09:34

Soapbox

Karel Dr Konstantinos Van Hulle isDrakos associate is professor associate at professor KU Leuven at Athens and Honorary UniversityFellow of Economic at the IFoA

Opinion

Getting to grips with a new regime As of 1 January 2016, some 4,000 insurance and reinsurance firms in the EU will have applied the new risk-based solvency capital regime, called Solvency II. It has taken about 15 years to develop, and while this might appear a long time, one should not forget that the introduction of a risk-based solvency capital regime constitutes the biggest reform in insurance regulation in the EU for 30 years.

Many stakeholders, including the actuarial profession, have been actively involved in the development of Solvency II. The regulatory process was bottom-up rather than top-down.

The active engagement of so many people and experts will help to smooth the transition from Solvency I to Solvency II. Solvency II establishes a link between risk and capital that will lead to a more professional way of conducting insurance business. From the conception of an insurance product, through the sales and claims handling process, insurers will have to be mindful about the capital consequences of the risks that they are taking.

A crucial element of the reform is the dialogue established between the supervisory authority and the supervised entity. This is enshrined in Solvency II through the review process, which automatically starts when an insurer breaches the solvency capital requirement (SCR). It is also present in the discussion between the supervisory authority and the supervised entity about the own risk and solvency assessment (ORSA), which must be carried out by the insurer at least once a year. This dialogue should not be a monologue.

Both parties will have to learn to discuss solvency issues based upon a relationship of trust.

Through the establishment of an actuarial function as a key governance function, the actuarial profession will gain importance under Solvency II. The person in charge of the actuarial function will have to produce a report and communicate their findings to the board and to the supervisory authority.

Actuaries will therefore have to get used to translating complex issues into understandable language, and to identify the strategic consequences following from numbers and models.

Not everything will go well from day one.

Karel Van Hulle, one of the original architects of Solvency II, considers the new regulatory landscape That cannot be expected. Important regulatory reforms take time to bed down in daily practice. One should therefore be cautious not to amend the regime before sufficient experience has been gained. Solvency II was designed as a flexible regime that can be adapted when needed in order to bring the rules in line with changed circumstances.

There is, however, pressure already to change the regime by lowering the calibration for certain investments and amending the market-consistent valuation of assets and liabilities. Changes should only be carried out after careful study and a thorough impact assessment.

Solvency II comprises four levels of regulation: the Solvency II Framework Directive (level 1), delegated regulation from the European Commission (level 2), the regulatory and implementing technical standards developed by European Insurance and Occupational Pensions Authority (EIOPA) (level 3) and the (non-legally binding) guidelines developed by EIOPA (level 4). The total regulatory package now comprises several thousand pages. This is clearly too much and not in line with the principles-based approach that was one of the objectives of Solvency II. Neither insurers, nor insurance supervisors will be able to monitor in detail all the rules

“Actuaries will have to get used to translating complex issues into understandable language”

that make up Solvency II. This is not a problem in itself. It is crucial that from day one, both insurers and insurance supervisors concentrate on the important issues and they apply the principle of substance over form.

It is equally important that national legislators as well as insurance supervisors avoid introducing further rules at national level (gold plating). This will require some discipline – not all problems can or should be resolved. Some experimentation is unavoidable and good. From applying the rules in practice, all parties concerned will learn where the strengths and the weaknesses in the new regime can be found.

Many countries in the world are looking at the experience the EU has gained with the development of Solvency II. Much can indeed be learned from the in-depth analyses that have been carried out and from the sometimes difficult negotiations that have taken place.

This does not mean that Solvency II is a perfect regime or that it is the best solvency regime in the world. It is, however, a regime that came about after much reflection and debate. It is therefore in the interest of any country in the world, which wants to move its solvency regime in the direction of a riskbased capital one, to learn from the experience gained with the development of Solvency II. a Karel Van Hulle will be discussing ‘Harmonising solvency regimes across a region’ at the IFoA Asia Conference on 3-4 March 2016. bit.ly/1P6AOke January / February 2016 • THE ACTUARY 13 www.theactuary.com

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26/01/2016 09:35

New standards will help the industry create a stronger future by going beyond regulations”

14

THE ACTUARY • January / February 2016 www.theactuary.com

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26/01/2016 09:35

On my agenda Interview

Braving uncharted

waters

Lady Susan Rice, a global leader in the banking industry, talks to Richard Purcell and Stephen Hyams about emerging risks, encouraging sustainability in business, and jumping into the unknown Lady Susan Rice has had a distinguished career. Previously chief executive at Lloyds TSB Scotland, she is the first woman to head a clearing bank and has sat on the Court of the Bank of England. Today, she chairs the Chartered Banker: Professional Standards Board (CB:PSB) and is a founding director of the Banking Standards Boards (BSB). It is at the BSB’s London base that we meet up with her.

A gentle and unassuming figure considering her many achievements, Rice speaks to us following her address on the role of banking and business in society at the Institute and Faculty of Actuaries’ (IFoA) Autumn Lecture. She begins by describing her early career. Born and brought up in the US, as an undergraduate she studied microbiology and psychology.

After graduating she took a job in the clinical research team

TOM CAMPBELL

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at Yale. Senior administration roles followed at both Yale and Colgate universities, which gave her the experience of dealing with a broad range of stakeholders, from academics through to striking staff. Her move into banking came following her relocation to New York and a job offer at a Manhattan bank.

Rice says: “I was thrown into a whole range of challenges, from mergers and acquisitions, private banking, to projects on financial inclusion and community redevelopment.”

On moving to the UK, Rice accepted a position at the Bank of Scotland, which “needed a different perspective”. Once again she was working in areas she had no prior background in, such as creating a bancassurance channel, and other new products. It was this “learning while we were doing” that she seems to have thrived on most.

Rice explains that her next banking role at Lloyds TSB Scotland almost didn’t happen: “A headhunter had been trying to get hold of me, and eventually my PA got fed up, so arranged for him to speak to me on the way to the airport.”

The rest was history, and Rice joined the bank as chief executive, again attracted by doing something new.

She remained as chief executive from 2000 until 2009,

January / February 2016 • THE ACTUARY 15 www.theactuary.com

27/01/2016 12:38

On my agenda

Live links on our app! p!

Interview

when finally she felt: “I’d had a good run.” However, her sense of loyalty to her colleagues and the organisation at a difficult time led her to stay on as a senior executive until 2014.

Today, as director of the BSB, Rice explains that following the financial crisis “the industry was challenged to address culture in banks, in part as a result of a parliamentary commission”. The plan is that by raising standards in banking it will “help the industry become stronger by having it reach beyond regulation”.

She also outlines the importance of the CB:PSB, which preceded the BSB. “It is focused on creating professional standards and behaviours for individuals rather than organisations.

“Bankers don’t think about themselves as professionals, yet it’s an industry that requires judgment.

“There is also a natural asymmetry of information between the bank and the customer. We need to ensure that banks do the right thing by customers.”

We move on to the CB:PSB’s new principles-based code – similar in that respect to the Actuaries’ Code. Rice is very clear: “It will take years to have an impact and change the culture of banking – what’s more, the code needs to be included into corporate codes.” But looking to the future, she adds: “The UK has been viewed as a leader of conduct for many years, and the CB:PSB and BSB are potentially models that could be replicated elsewhere in the world.”

Cause and effect Many of the emerging risks that affect banking today are also relevant to the broader financial market. A key issue Rice mentions is increased complexity in regulation: “There can be too much focus on it,” she says. “We also need to stand back and ask some simple questions. Freeing up management time for this is a challenge.”

Also on her agenda is technology – in particular, smartphones and mobile Wi-Fi boxes. As she explains: “Personal Wi-Fi will become ubiquitous and mark an

I love jumping into the unknown, that sense of edginess. I also enjoy using my past experience to make connections between problems” 16

THE ACTUARY • January / February 2016 www.theactuary.com

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irreversible change. We will need to move from mass customisation to individually tailored products.”

With the plethora of new technology, Rice asks: “How do we handle all the additional data?” Associated cyber-risks are also of concern: “Banks are heavily focused on this, and we need to help customers understand the implications of what they do. For example, emails aren’t gone when you delete them.” She is also troubled that: “Cyber-attacks can start within existing systems in ways we don’t at first see.”

A final area of concern for Rice is the disaggregation of banking: “How does a bank form a credit history on someone who’s only ever used online payment services?”

Interestingly, it’s in this area that she sees a key role for actuaries in banking: “Actuaries can help identify patterns and understand risks from the way we live.”

Measuring sustainability Rice spoke about sustainability in her Autumn Lecture.

On carbon emissions she admits: “No one is meeting the targets, and part of the problem is not being able to independently measure success and allow for population change in any targets.” She is clear that “businesses need to start thinking about a sustainable economy”. To incentivise firms she believes that investors need to: “Look beyond financial numbers – which don’t necessarily mean the business is sustainable.” She calls for greater metricising of long-term environmental factors and again believes it’s an area that actuaries can help with.

As chair of Scottish Water, the environment is a key issue for Rice. She explains: “Utility companies are huge emitters of carbon, but Scottish Water has a remarkable record of neutralising greenhouse gases.” She believes government has a role to play in incentivising the wider business community to take sustainability seriously. “No company ever wants to take the first step. Governments can help to legitimise behaviour through setting targets and creating subsidies.”

Throughout her career, Rice has been motivated by making a difference to other people: “I was brought up to believe that if you have done well in life you need to give something back.” This is certainly evident in the community development projects she is involved with, as well as driving greater professional standards in her banking roles, and her passion for sustainability in business.

When asked about the secret to her success, she says: “Communication.” She continues: “You have to listen to others, articulate ideas and be able to write.” She recalls being asked what she did by her daughter’s friend. Rather than say she worked for a bank, she paused and simply stated: “My role is to communicate with people.”

It’s clear Rice also relishes a new challenge. “I love jumping into the unknown, that sense of edginess. I also enjoy using my past experience to make connections between problems.”

She admits: “I had to learn to say upfront that I didn’t know something and then ask questions.”

Ultimately, she believes: “You have to be interested in what you do.” It’s clear that this thirst for knowledge, and to understand new areas, has allowed her to make bold and successful leaps into unknown territories. a You can watch Lady Susan Rice’s IFoA Autumn Lecture at bit.ly/1MlNcd0 TOM CAMPBELL

26/01/2016 09:35

Environment Socio-economics

Simon Brimblecombe looks at the role of social security in helping to deal with the effects of climate change around the world At the end of last year, the world’s attention was focused on the United Nations climate change conference (COP21) talks in Paris. After some surprisingly smooth negotiations, a form of agreement on a range of general targets for some fairly distant dates in the future were agreed. While the intentions are laudable, commitments announced by national governments in the run-up to the event indicated probable future warming of close to 3°C rather than the 1.5°C to 2°C target referred to in Paris.

However, positive outcomes of the conference included a greater recognition of what is needed to achieve a “less than 2°C world” and also the

Social security in a new

climate

VINCE FRASER

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Environment Socio-economics

role of risk mechanisms – including social security – in taking the appropriate actions in reducing, mitigating and adapting to the changes ahead.

Immediate effects

The informal sector still counts billions of workers with no employer protection, and most people do not have access to risk cover” 18

While the focus in talks and media coverage tends to centre on what the world may look like in 2050 and 2100, the impact of climate change is already happening. The rate of increase in sea levels has doubled in the past decade.

Temperatures are more than 1°C higher than in pre-industrial times – so we are already more than halfway towards a 2°C target – and 2015 was not only the hottest year on record but also the 39th consecutive year of aboveaverage temperatures.

Extreme events already affect livelihoods across the globe. These include: the 2015 droughts in Ethiopia, where it rained 90% less than average, leading to 15 million people in need of food aid; severe flooding in South Carolina, classified as a “one-in-1,000-year” event by meteorologists; and record breaking droughts in Nicaragua in both 2014 and 2015, putting farmers’ livelihoods at risk. The number of natural catastrophes has quadrupled during the past 40 years, but this is just a taste of what is to come, with extreme events likely to occur with increasing frequency and severity over the decades ahead, according to research (bit.ly/1Z8NQFY).

Climate change has led to dramatic environmental degradation in recent times.

According to the UN Environment Programme, Lake Chad has lost 90% of its surface area in 50 years and the Gobi desert increases in size by 2,500km2 every year.

These changes have significant impacts on economic growth but also social cohesion – protests against increasing food prices have often developed into social conflict in the past decade alone. Negative impacts will fall disproportionately on the poor, who typically do not have the means to adapt and adjust – but are also overly represented in the agricultural sector, where income and living conditions are particularly vulnerable to droughts, flooding and other extreme events. These people also spend a higher proportion of their income on food staples than the better off and are thus more vulnerable to future price increases.

A social safety net This is where social security and social protection systems come in. Their aim is to respond effectively to a range of life-cycle risks and they often play the role of the insurer of last resort. The informal sector still counts billions of

workers with no employer protection, and most people do not have access to risk cover, because is too expensive or their risks are not insurable.

Social security institutions provide benefits and services in retirement, on death, during the birth and childhood of infants, for disability, unemployment and for sickness and long-term illness. While coverage varies by country, considerable efforts during recent decades to extend it within existing branches (increasing the level of benefits and the proportion of the population covered) and through new branches (the introduction of unemployment, medical and disability systems) is encouraging.

Social security systems have always had to put in place both ex-ante and ex-post measures to respond effectively to changes in the external environment – whether this is increasing life expectancy, the challenge of providing and financing long-term care, responding to an increase in mental health disability cases, the rise of non-communicable diseases and addressing youth unemployment.

In respect of climate change, social security will face changing demands and, at the same time, growing financing constraints as economic growth slows. The nature of demand for services and benefits will also change: the importance of unemployment coverage for small businesses impacted by extreme events; ensuring benefits for the increasing number of climate change migrants; and responding to administrative requirements (how to pay benefits when communication systems are interrupted) are just three examples. Patterns and distribution of mortality and morbidity experience are also likely to change, requiring both effective pre-emptive measures and post-event responses.

Despite the challenges, a number of social security institutions have already put in place effective policies and administrative measures to respond to these impacts: ● The Philippines is vulnerable to climaterelated disasters, particularly typhoons. Grant of calamity or emergency loans at concessional rates; moratoria on loan amortisations; advanced grant of pensions of up to three months; and accelerated procedures for processing and payout have been effective. ● In the US, Hurricane Katrina in 2005 affected 1.6 million social security recipients.

A number of emergency procedures were put in place, including: special hotlines; additional staff employed to expedite claims for death; survivor and disability benefits; the set up of temporary offices; and liaison with the US postal office to ensure payment of benefits.

While such ex-post interventions make a key difference for affected populations, they cost a lot of money. Systems will therefore also need to put in place preventive measures to reduce

THE ACTUARY • January / February 2016 www.theactuary.com

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26/01/2016 09:36

SIMON BRIMBLECOMBE

is an actuary and responsible for policy analysis and research at the International Social Security Association in Geneva

Social security around the world ●

●

In Brazil, the Bolsa Verde is a conditional cash transfer scheme.

It is specifically targeted at populations in the Amazonian region and pays $320 (£220) annually to more than 70,000 ultra-poor families if recipients abstain from harmful ecological activity such as illegal logging.

The twin goals are therefore poverty eradication and conservation.

prevention (reforestation) and flood control and have already lead to increases in the groundwater level and improved soil fertility, in turn improving land productivity and better prospects for farmers. ●

In India, the Mahatma Gandhi National Rural Employment Guarantee is a job creation scheme for the unemployed.

The activities supported include water conservation, drought

In Ethiopia, the Productive Safety Net Programme launched in 2005 moves social protection from ad hoc urgent responses to a planned approach.

It provides conditional cash or food transfers for six months coinciding with the dry season in return for participation in public works activities including soil and water

risks and the negative impacts of climate change. These measures are very effective as they also secure a varying degree of other positive outcomes – for example, improving population health and a better management of increasingly scarce natural resources, such as certain minerals and water.

Reasons to be positive?

So while concerted bold global action remains difficult, there is reason to be optimistic when looking at the action of different stakeholders – not just social security organisations but also some institutional investors, pension funds and certain corporates – and their increasing recognition of the risks and costs related to climate change. Changes will therefore also be driven by economic reality and the need to manage risk effectively. A switch from coal and other fossil fuels to increasingly cheaper renewable energy is occurring for financial, risk and health reasons – the regular episodes of smog in certain Asian cities, in part due to coal-fired power stations, is just one example.

The significant subsidies for fossil fuel – direct production subsidies amount to more than $500bn annually, with the IMF estimating total cost at more than $5trn if all externalities are taken into account – are no longer VINCE FRASER

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conservation measures.

In 2011, more than 80% of the population affected by the drought were covered by the scheme, leaving less than 20% to be covered only by emergency measures. ●

risk and cardiovascular disease incidence) and therefore reducing medical costs for social security. ●

In a number of countries, healthy eating initiatives have sought to reduce processed food, sugar and meat consumption. These initiatives have a positive impact on climate change (1kg of beef produces four times more greenhouse gas emissions than the production of a kilo of chicken or pork) as well as improving population health (reducing cancer

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A number of social security reserve funds, often with sizeable levels of assets, are reducing exposure to carbondependent assets and companies whose activities negatively affect climate change.

Not only does such an approach lead to a reduction in greenhouse gas emissions but it also reduces risks related to stranded assets and ensures that the transition to renewable energy is not missed.

sustainable. Redirecting them to financing social security would support financing measures. But this would also lead to a virtuous circle of critical mass and falling prices for renewables, which are already competitive with many energy sources and even more so when these subsidies are removed (renewable subsidies are estimated at less than one fifth of direct fossil fuel subsidies).

And the role of actuaries in all of this?

With their understanding of risk management, appreciation of discount rates and the financing, design and sustainability of systems, actuaries are well placed to play a leading role in not only the discussions but also the actions taken. The IFoA, as well as the International Actuarial Association, have strong, active and motivated working groups and committees producing excellent work. The issue is cross-cutting and will affect all aspects of social security programme design and delivery, in what will be one of the key challenges for society this century. a These are Simon Brimblecombe’s own views and do not necessarily reflect those of the International Social Security Association January / February 2016 • THE ACTUARY 19 www.theactuary.com

26/01/2016 09:36

Life insurance Internal audit

An

inside Andy Cox goes inside an internal audit department and is surprised by what he finds – a job and some tips on dealing with your internal auditor

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job

I’d always been curious about how best to deal with that inevitable visit from the internal audit (IA) department. My curiosity led to some conversations with those ‘on the inside’ to understand what they do, and how they do it.

Before I knew it I’d been persuaded that the best way to find out about IA was to get a job there.

I knew IA was known as the ‘third line of defence’ and usually provided an independent view to the board on how well risks within an organisation were controlled. I joined the department with little audit experience, but armed with varied actuarial expertise in pricing and financial reporting in the life industry.

I found some things surprising about how a modern IA department works. Reflecting on what I’ve learned has also made me realise that understanding how an IA function works can be very useful to those being audited.

It’s not just about audits Previously, I hadn’t given much thought as to why, for example, my with-profits reporting team, or protection pricing area had or had not been picked for audit – perhaps some diabolical dice game or a more mundane three-year cycle? It was interesting to see how much work goes into deciding what to audit, rather than just executing audits.

Figure 1 shows a typical framework for the work of an IA department. A typical IA department will be continually assessing the risks involved in the business to formulate the next period’s plan, as well as tweaking the current plan of audits. Gone are the days when departments waited for their turn to be audited on a predictable three-year cycle. Instead there’s a risk-based audit cycle that is more attuned to the current worries and concerns of both non-execs and senior execs.

Most IA departments will now keep in touch with what’s going on in the business through a series of regular liaison meetings, engaging with the various levels of management in an organisation. Good liaison should also be a two-way experience. IA finds out about the latest activities but keeps the business informed about the IA department’s audit plans and concerns.

IA recognises that all business areas go through challenging periods. Where businesses have clearly flagged problems through the governance framework and have put plans in place to address them, IA will generally give them time to put actions in place before a visit to confirm that resolution is well under way.

After the audit work is complete, it’s essential to track issues and actions. In the Prudential Regulation Authority’s recent censoring of the Co-operative Bank, they

THE ACTUARY • January / February 2016 www.theactuary.com

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26/01/2016 09:37

TOP TIPS FOR YOUR INTERNAL AUDIT ● ● ● ● ● ●

ANDY COX is an audit

Understand your organisation’s IA framework Gather documents together which describe your responsibilities and processes Remind yourself of your area’s risks and how you’re controlling them Invest time in the audit process – particularly if you are disputing findings If you’re in a position to do so, invest time outside audits to liaise with IA contacts Particularly as an actuary, consider how you’ve justified and documented judgments

Figure 1 – Sample internal audit framework PHASE I AUDIT PLAN DEVELOPMENT AND REVIEW

PHASE II AUDIT EXECUTION

PHASE III ISSUES TRACKING AND CLOSURE

PHASE IV QUALITY ASSURANCE

manager in internal audit at Legal & General Group

managers with ‘near misses’ request IA to come in to investigate further. I’ve also seen some business areas that want to use IA to gain assurance that their house is in order in advance of a regulatory visit.

Actuarial skills are useful noted that, at times, more than 30% of IA actions were outstanding. Robust incisive audit reports are worth little if their recommendations aren’t actioned. Although business areas are responsible for carrying out actions, IA needs to play its part in explaining, tracking, prompting and escalating outstanding issues.

Someone audits the auditor As an independent team, IA can appear to be an unaccountable function. However, this is far from the truth. In addition to a regular grilling from the audit committee, IA professional bodies require that IA functions have a formal internal quality assurance process. Regulators are now increasingly subjecting IA departments themselves to external quality assurance exercises. Many regulators see the quality of IA and its involvement in the business as good barometers of the risk management culture in the wider organisation.

Good IA departments are seeking feedback on their audit experience from business areas.

Although glowing feedback from an audit with significant findings might be optimistic, good feedback on understanding the business, communication, professionalism and level of challenge should be the aim.

In my previous roles, I’d been subjected to a number of audits but really hadn’t been aware of the methodology behind them. It now strikes me that this would have been useful both to make the audit more efficient and to avoid being surprised.

IA functions’ methodologies will of course all vary at a detailed level. However, most will have similar steps to those shown in the sample internal audit methodology in Figure 2. The IA will usually kick off with a few weeks’ planning, where it will aim to agree the timescales, processes and people involved in the audit. At the end of the planning phase there should also be agreement of the scope and risks being assessed.

The reporting part of the process is usually the more familiar part of the methodology to auditees, particularly if auditors follow the good practice of involving auditees in drafting the reports. A balance does of course need to be struck between taking feedback on board and standing firm on findings.

IA functions are increasingly employing experts from other fields. Gone are the days IKON

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when your average IA function comprised only career auditors with accountancy qualifications. This more traditional career profile is of course still very valuable, but most life office functions have supplemented their skill sets by employing professionals from the worlds of IT, change, investments and actuarial. There are a number of different operating models to using such experts, but I think deploying mixed audit teams is most powerful.

That way, career auditors can support those less experienced in the audit world, and business experts can support experienced auditors in understanding the business. Many life office functions will also employ external consultants on an ad-hoc basis, where they need to fill skill gaps in more specialist, less frequently used expert areas.

A number of IA functions are also using actuaries to build their capabilities in analysing data during audits to provide more in-depth insight. Actuaries have also proved useful in considering the hot topic of model risk.

I did think that nobody in their right mind would voluntarily open their door to an IA. I was, however, wrong. I’ve seen senior

It was fairly obvious to me that my actuarial skills would be useful in auditing actuarial areas. Non-actuarial auditors can of course do a very good job in auditing these areas, but having the technical knowledge can give that edge. But I hadn’t realised that the wide knowledge and naturally inquisitive nature of actuaries can be a real asset to an IA department. Having a good grasp of risk management and risk-based capital can also make the actuary useful in the yearly planning process to decide what to audit.

Internal audit can also be outspoken, commercial, topical and interesting – so what’s not to like? Effective IA functions get involved in the most current company change and activity right across the organisation.

Best practice also means IA usually reports in to the chief executive. Both of these factors can mean it gives independent views on the risks that might hamper the organisation in meeting its goals in the areas subject to the fastest change.

IA can also call out the risks others might hold back on. It does, of course, need to do this in a constructive, acceptable way. All of this makes for a fascinating job for an actuary – for short or longer periods. a

Figure 2 – Sample internal audit methodology PHASE I AUDIT PLAN DEVELOPMENT AND REVIEW

PHASE II AUDIT EXECUTION

PHASE III ISSUES TRACKING AND CLOSURE

PHASE IV QUALITY ASSURANCE

Planning

On-site fieldwork

Agreement of issues and actions

Reporting

- Engage with business - Agree timescales - Agree scope - Agree risks - Understand process and controls - Decide on tests - Issue terms of reference

- Refine understanding of process - Assess design of controls - Test controls

- Get feedback on findings - Agree issues and associated actions

- Prepare draft report - Get feedback on report - Issue final report

January / February 2016 • THE ACTUARY 21 www.theactuary.com

26/01/2016 09:37

Insurance Takaful

Takaful at a

crossroads The recent growth of the takaful model is impressive, says Zainal Abidin Mohd Kassim but this is in danger of being restricted by a general lack of understanding of the product

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A global observer of takaful could easily be puzzled by the differences in its practice and implementation among countries. Why, for example, is the takaful model used in Egypt different from that used in Malaysia?

One might also be perplexed as to why insurance is sharia-compliant in Iran but not in many other Muslim-majority countries.

From this observation, a misconception might arise that there is no common understanding of takaful.

A practising Muslim’s obligations extend to how they live their life and earn their living.

As an example, a Muslim is forbidden to earn interest. The ‘no return, without risk’ basic principle in sharia-compliant commercial transactions is the reason why earning interest is forbidden in Islam, as when interest is payable the lender reaps a return without taking any entrepreneurial risk.

Indeed, in the sharia vocabulary, the use of the word ‘loan’ only applies to benevolent

THE ACTUARY • January / February 2016 www.theactuary.com

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26/01/2016 09:38

ZAINAL ABIDIN MOHD-KASSIM FIA is

the senior partner at Actuarial Partners Consulting based in Kuala Lumpur, Malaysia

loans, a loan made with no expectation to be repaid other than the amount extended, or indeed to be repaid at all.

The insurance contract has in it elements that are not consistent with a Muslim’s belief.

Takaful is thus seen as meeting a need within this community. Another common assumption is that takaful is only for Muslims.

This, perhaps, can be explained by the use of the Arabic word ‘takaful’, or ‘sharia insurance’ or ‘halal insurance’ to describe it. The reality is that takaful is just ‘doing insurance in a particular way’; you need not be a Muslim to subscribe to it. For a non-Muslim, takaful is another insurance product, while to a Muslim it is about ensuring fairness and transparency in the insurance contract.

Variation between nations Yet another popular misconception is that takaful is a charitable institution. It is not, it cannot be in the regulated world that is insurance. Therein lies one of the reasons the practice of takaful varies by country.

The practical implementation of takaful is very much influenced by what the regulations in the country allow or do not allow. The takaful products available in a country are also determined by how solvency is determined.

They require capital support. Policyholders do not provide working/solvency capital, shareholders do, and so takaful products offered will depend on how much profit shareholders expect to reap for each unit of capital employed.

Capital in takaful is used to finance the ‘loan’ that the risk pool periodically requires either to fund a new business strain or bad claims experience. Capital is also required to finance risk capital for any mismatch between the liability profile and the assets backing this liability. All these considerations affect how the basic model is adjusted to meet shareholders’ expectations. The other reason

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takaful can vary between nations is the flexibility within which fiqh (sharia law) is implemented in different countries.

The sharia scholars in Iran, for example, examined the insurance contract and are able to explain away the elements which other sharia scholars in other countries deemed inconsistent with how business should be conducted to be consistent with fiqh muamalat (sharia law governing commercial transactions).

The level of sharia compliance that is acceptable in any one country may also vary.

Sharia-compliant is different from shariabased. The former has greater leeway in interpretation, while the latter leaves little room for variability. Generally, sharia compliance – where a shariah scholar or group of scholars give their blessings on a particular issue – is sufficient for acceptability among Muslims.

The basic commercial takaful model requires a separation between the shareholders’ capital and the policyholders’ fund (risk pool). Under this model, the takaful company informs the policyholder what percentage of the premium it is taking for its expenses and profit. The expense risk therefore rests with the shareholders.

The remainder of the premium goes into the risk pool and is used to meet claims.

The underwriting risk in this pool is thus shared among policyholders within the pool with any surplus being repaid as dividends to the policyholders.

Reinsurance is replaced with ‘retakaful’ and any net deficit is met through ‘loans’ financed by the shareholders’ fund. These loans are a first charge on the future surpluses from the risk pool. Thus, the risk-sharing element among policyholders in takaful extends through generations of policyholders.

Transparency is addressed through the ‘fee’ payable from the premium at the point of

entry into the pool and fairness through the sharing of surplus within the risk pool among the policyholders in that year. That is the theoretical basic takaful model – before factoring in the regulatory and sharia consequences mentioned before.

The takaful company would have in its set-up a sharia advisory committee (SAC).

This forms another layer of governance below the board of directors. The responsibility is to advise the board whether the takaful company’s operation is sharia-compliant.

This compliance extends to the whole operating model (including sales, underwriting and investments) not just the takaful technical model.

Reasons for growth The growth of takaful has been impressive, but this is primarily because the starting base is small. Takaful is more successful in countries where insurance generally has been successful. There are several reasons for this: ● The penetration for takaful corresponds with level of financial awareness among the population in the country. Also compulsory insurance (for example, motor) would similarly drive the demand for takaful. ● The main basis of distribution for takaful would be agents. Other than for compulsory products, takaful is ‘sold’ not bought. Thus in countries where insurance is sold through agents, we see greater success for takaful. As it needs to be explained to the consumer, this is another reason why agency is more successful than bancatakaful. ● Takaful companies are often newly set-up operations, requiring skilled human resources.

A market with a thriving insurance industry can be a source of these skilled labours.

What have been the challenges for takaful?

After the initial period of euphoria about the potential of takaful globally, the industry has

January / February 2016 • THE ACTUARY 23 www.theactuary.com

26/01/2016 09:38

Insurance Takaful

It would be unfortunate if takaful fails because of a misunderstanding of what it is and how it should be implemented”

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come to realise the formidable challenges it faces to make a profit. These include: ● Consumer expectations. Notwithstanding the significant Muslim market globally, takaful companies have come to realise that policyholders are the same whether it is takaful or insurance – they want the ‘cheapest’ offering. Thus, takaful companies compete on price with each other and insurance companies. This is the slippery slope to ruin.

Takaful companies are start-ups with limited capital, so competing on price simply uses up capital without growing a loyal group of policyholders. It is also a fruitless exercise.

Insurance companies do not have to share any underwriting surplus with policyholders, and thus can recover faster in any subsequent upturn in the insurance cycle. ● An undeveloped Islamic capital market.

Takaful premiums need to be invested, as premiums are paid before claims are paid.

Takaful is also a means to a disciplined approach to saving. Other than in Malaysia, there does not exist a national liquid sukuk (Islamic bond) market.

In many countries, takaful companies invest their policyholders’ and shareholders’ funds in the equity market. In such instances, the profitability of the takaful company is strongly correlated to the performance of the local stock market. Over the long term, the sustainability of takaful companies is dependent on access to a sukuk market. ● The influence of regulations on the ability of takaful companies to make a profit cannot be overemphasised. Stringent regulations require greater investments in systems and manpower. The cost of regulations weighs more heavily for new start-ups than for well-established insurance companies.

These costs make takaful operators less able to compete with the insurance industry.

Is the takaful industry then doomed to slower growth going forward? Maybe. If takaful

24

chooses to compete on price, it is unlikely to be a sustainable business model. To be successful, it has to reinvent its business model or request regulatory concessions. It is perhaps unrealistic to ask the regulator for concessions if its products are clones of insurance products.

Ideal implementation It would be unfortunate if takaful fails because of widespread misunderstanding of what it is and how it should be implemented. There are essentially two takaful markets and these should be considered separately.

First, there is the market where currently only the insurance industry is serving. This consists of customers who are relatively financially aware of the importance of insurance as a means of risk management. For this market, takaful can be a success and can compete with insurance, as evidenced in Malaysia.

What takaful needs to do to continue to grow is to reassess its product line and distribution costs. Insurance is expensive because distribution cost is expensive. Takaful needs to demonstrate that it can improve consumer outcomes compared with insurance. It should stick to its basic principles of providing consumers transparency and fairness.

The other takaful market has to do with financial inclusion. Compared with other groups, Muslims are disproportionately distributed in poor and underdeveloped markets, where the commercial takaful model cannot work. There needs to be a different takaful model to apply to this underserved segment of the world’s population, Muslim or otherwise. a

Zainal Abidin Mohd Kassim has been consulting on takaful since 1985. He will be speaking in a plenary session ‘Regulating takaful – making a difference’ at the IFoA Asia Conference in Kuala Lumpur on 3-4 March.

THE ACTUARY • January / February 2016 www.theactuary.com

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26/01/2016 09:38

Risk Pandemics

Joseph Lu considers the risk of pandemics and whether actuaries can go beyond just modelling financial losses towards working on prevention A pandemic, or global disease outbreak, is one of the top catastrophic risks faced by the insurance industry. So can we cope with a major pandemic?

Last year, Bill Gates in his blog (bit.ly/1JX4s7B), and a World Bank poll, concluded that we can’t.

The Ebola virus, with a fatality rate of 50%, has killed more than 11,000 victims since the West African epidemic began in December 2013.

Imagine an Ebola-influenza bug; an airborne germ that spreads as fast as influenza and with a similar fatality rate to Ebola. This could be expected to cause great global damage, including large insurance losses.

Prevention is better than cure

January / February 2016 • THE ACTUARY 25 www.theactuary.com

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26/01/2016 09:39

Risk Pandemics

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An independent panel of experts from Harvard and the London School of Hygiene & Tropical Medicine recently called in The Lancet for global reforms, based on lessons learned from the West African Ebola crisis, in preparation for the next pandemic. The panel highlighted grave deficiencies in the global system in responding to outbreaks, and provided a series of recommendations. The work also exposes opportunities for actuarial techniques and modelling to play a part in managing pandemic risk.

Knowledge is power

The world needs to understand the risks of disease outbreaks, and failure in preventing them, in various countries to inform resource allocation” 26

The world needs to understand the risks of disease outbreaks, and any failure in preventing them, in various countries to inform resource allocation. The UK government has outbreak detection infrastructure, a developed healthcare system and specific policies to deal with future pandemics. However, this is not the case in poorer countries with a higher risk of outbreaks.

From December 2013 to March 2014, the first Ebola infections occurred in a remote area in Guinea and went unreported for several months, allowing it to spread to neighbouring Liberia and Sierra Leone. This was largely the result of a failure to detect and respond to the disease outbreak. This highlights the need for international aid or a move to prioritise national resources for public health in less developed nations.

In addition, there is a need to understand the likelihood of the emergence of new germs over time. From 1940 to 2004, 335 new infectious diseases appeared in humans. About 60% of these were caused by microbes transmitted from animals to humans. Of these, about 70%

were from animals that typically live in the wild.

So, it would be useful to monitor infectious agents in wildlife in order to improve our awareness of emerging pandemic risks.

It has been estimated there are 320,000 different viruses that currently infect mammals, and a project to identify and characterise them would require an investment of approximately £4bn.

Additionally, an independent expert panel has recommended an investment of about £3.2bn per year to markedly improve global pandemic preparedness. To put these costs into context, recent calculations have estimated that pandemics could cost the world $4.2trn in the next 100 years, averaging £42bn per year.

Consider the 1918 Spanish flu, which experts suggest may have originated from birds. This has been the most severe flu pandemic over the past 100 years; the outbreak killed more than 50 million people and cost the insurance sector about £13bn worldwide in today’s money.

If an animal disease database were created, factors that influence disease transmission from animals to people, as well as the potential spread of disease in human populations, could then be considered in order to understand and actively manage global pandemic risks more effectively.

This can be assisted by developing a mathematical model to estimate the risk of emergence of outbreaks. It should take account of drivers of epidemics such as: ● Likelihood of emergence of new infectious agents from the wild ● Animal-human interactions ● Population density ● Investment in healthcare

THE ACTUARY • January / February 2016 www.theactuary.com

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26/01/2016 09:39

JOSEPH LU is the chair

of the IFoA Mortality Research Steering Committee and longevity science director at Legal & General

Left: To be ready for a pandemic, experts have said we need a new structure of risk management.

Below: The SARS coronavirus is thought to be an animal virus that first infected humans in 2002

Healthcare capability Government’s ability to mobilise prevention measures.

International intervention will be needed when national preventive measures fail. The Ebola epidemic saw failures in reporting the outbreaks, technical capacity to contain them and mobilisation of global action.

Consequently, international help was delayed.

Non-profit organisation Médecins Sans Frontières responded to the Ebola epidemic in March 2014, but it wasn’t until July that the global community engaged with the issue and provided tangible help.

Modelling could potentially help answer some key questions forming part of the risk management process, such as: ● What are the benefits of an early call for help?

This would help national leaders of affected countries prioritise communication with the global community ● What is the best containment strategy?

Policies to shut down travel and trade has harmed the economies of Ebola-affected regions and hindered epidemic control. Experts and equipment need to be transported in and out of affected countries as part of an effective strategy ● Can insurers do more to help their customers plan their travel or prevent infection? ● ●

Shared research and resources The sixth issue of the IFoA’s Longevity Bulletin on Pandemics suggested that recent advances in big data capability and social media data, when combined with genomics and spatial information, can potentially provide notably quicker information flows. Co-ordinated use of various data sources can theoretically help GETTY / SPL

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minimise the spread of infection and facilitate faster treatments. This wasn’t particularly evident during the Ebola epidemic.

Direct exchange of data on the spread of Ebola was ineffective between the three most affected countries because of a lack of robust channels and coordination. Consequently, data sharing on infection and death in each country had to go through the World Health Organization (WHO), rather than directly between the countries, hampering speedy decision-making.

Global scientific collaboration was also problematic. For example, some scientists shared genomic sequencing data through an open-access database but others kept the data to themselves. Although thousands of virus samples have been collected from patients, there isn’t any established arrangement for scientists to analyse them.

Clearly, more needs to be done to materialise the possible benefits of big data on pandemic prevention. Data, statistical and modelling experts in the actuarial community are well placed to contribute to this worthy task.

An effective system to prevent and respond to a pandemic requires complex co-ordination and resource sharing among many stakeholders.

This would include national governments, international agencies such as the WHO, non-governmental experts, a UN-related humanitarian system and research institutions.

They play a wide range of important roles, including maintenance of national health, information sharing, fund raising, mobilising international actions and scientific research.

The insurance sector is a key stakeholder in all this as it could suffer large losses directly

through insurance claims, and indirectly through business disruption. The Solvency II regime ensures that European insurers have the capital to sustain a severe pandemic.

In the US, the Society of Actuaries modelled the impact of recurrence of the Spanish Flu on the direct life insurance industry, showing that it would reduce the industry’s capital by 25%.

It reported: “It is clear that the industry as a whole can weather even a severe pandemic on the scale of 1918.”

It is comforting that the insurance sectors of the main global economies are likely to be able to sustain the aftermath of a severe pandemic.

However, in this instance, insurers’ capital would be useful only after a global tragedy.

Could the industry use its financial capability, in a commercially viable way, to prevent or respond to epidemics before they get out of control in the first place? Financial modelling is required to examine whether there are more capital-efficient approaches.

A major pandemic could cause significant damage globally, including insurance losses, yet the world seems poorly equipped to cope with a fast-spreading and fatal disease. Actuaries have the skills to develop advanced models, not only to calculate capital requirements for the insurance sector but also to inform decisions needed to prevent and deal with pandemics.

As a key stakeholder of pandemic loss, the insurance sector could consider wider roles beyond setting reserves. These might include financing, technical sharing and dissemination of crucial information to fight pandemics. a For more information go to IFoA’s Longevity Bulletin on Pandemics at bit.ly/1kJDn1l January / February 2016 • THE ACTUARY 27 www.theactuary.com

26/01/2016 09:39

Climate change Spotlight

A

measured approach Nico Aspinall, chair of the IFoA Resource and Environment Board, talks to Cintia Cheong about raising the profile of the actuarial profession and what actuaries can do in the context of climate change Live links on our app! p!

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The United Nations conference on climate change (COP21) in December 2015 saw global figures descend on Paris for what would be an historic opportunity to meet the challenges of global warming.

Among them was Nico Aspinall, representing the Institute and Faculty of Actuaries (IFoA).

Aspinall was there to participate in a workshop, organised by the World Business Council for Sustainable Development. Its main focus was to look at how businesses are reacting to climate change, and in wider discussion, managing scenarios of extreme events. He also attended an event hosted by the British Embassy as part of the ‘Green is Great Britain’ campaign.

The main objective for Aspinall and the IFoA was to build on its network within the business, risk and sustainable development community, in particular to promote the role of the actuary and the expertise they have in identifying and managing risk.

As a long-term member of the Resource and Environment (R and E) Board, Aspinall has co-authored a

number of reports, including two literature reviews entitled Climate Change and Resource Depletion: The Challenges for Actuaries, and Sustainability and the Financial System.

These offer a wider review of resource and environmental concerns, the sustainability of the financial system, and the potential impact of R and E issues on actuarial practice areas.

Ahead of the conference, Aspinall collaborated on the IFoA policy: Climate Change: Managing Risk and Uncertainty, published on 26 November 2015. The document calls for a risk management approach to be a central component of climate change policy.

What did you hope to see in COP21 and what did you want to achieve?

I wanted to get a sense of how people were talking about climate change.

We went there to discuss risk management approaches, and how using actuaries can support business decision-making. We got a warm response. Actuaries are considered as being phenomenally competent individuals within the risk management field.

THE ACTUARY • January / February 2016 www.theactuary.com

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I came away with a real sense that more is desired from the actuarial profession. We need all parts of the supply chain to become low-carbon in future. We need consumers to be conscious of the issue. At some stage they will want products to be low-carbon, and this is a huge opportunity for companies to get ahead.

When consumers start to worry about emissions they will move to these products.

We need to get every part of the supply-chain to invest in a low-carbon future so that we can be ready before the market changes.

Are there challenges in developing a robust framework to monitor climate change?

Absolutely! There’s a lot more work to be done.

Risk management is an ongoing process which should learn from experience and change if required. We need to help governments focus on the extreme risks of climate change, which is a uniquely actuarial topic, particularly over the long term.

Assessing a 1-in-200 level potential outcome of different emissions targets would be valuable, just in understanding the uncertainty of outcome there is in each target.

Governments will focus first on carbon dioxide, but I think companies may need to focus more on some of the impacts. How do they manage them? How will their customers?

These are both opportunities and risks which companies should be thinking about.

How do you change climate thinking to be more long-term when governments are instinctively short-term?

Fundamentally, actuaries advise long-term institutions, so ensuring their thinking is joined up is a big first step. It is important we think about our legacy. We are the last generation with a chance to do something positive about climate change. What kind of legacy do we want in 50 years time? How do we want to be remembered?

Governments may be short-term but there is also the House of Lords, which isn’t focused on REUTERS / BLOOMBERG / GETTY

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the five-year term. Parts of the political landscape do have a longer term focus, and we need to ensure they too are aware of the issues.

How do we quantify the economic cost and change behaviour?

It is very difficult. Whether you put additional tax on fossil fuels, or incentivise people to move to green energy through tax breaks, there is a role for government policy here. The worry is that with incentives we present a choice.

A lot of people run the risk and travel without insurance, for instance. In my view, there’s no opportunity for us to run the risk of increasing carbon dioxide without limit and suffer the effects of climate change. It is not a risk we should be gambling with. Tax incentives probably do help, but we need stricter controls if businesses are not reducing their impact.

Think about tearing down rainforests. You can’t put a price on biodiversity or recreate it with money. In practice we’ll need a dashboard of different measures. How well do you manage land? How well is your supply chain ensuring there are not any impacts on virgin forests or water? These do not necessarily translate into higher taxes for people who abuse the environment. It may have to be a regulatory system that criminalises bad behaviour.

Why should actuaries care about energy consumption?

Over the long-term, energy is going to become more expensive. If pension schemes or insurers invest in companies that are using a lot of energy, and who are doing nothing to manage that cost, then there is a large investment risk with those shares.

Likewise, energy underpins longevity.

In a hospital, you will notice there is a lot of energy consumption. If hospitals have become more expensive to run, how does it affect government policy and support for the older and infirm? Just understanding some of the resource demands gives us a better insight into actuarial factors.

Has your view on the role of actuaries changed since COP21?

Only to become stronger. As actuaries, as risk managers, we don’t just look at the expected outcome and the centre of distribution.

We also worry about the full probability distribution. For instance, we don’t have to believe sea levels are going to rise by 18 metres to know there’s a risk that they will, and manage that risk.

We need to understand the uncertainty experts have in a topic, and use our actuarial techniques to manage that uncertainty. That is the right approach for actuaries to be taking, and we are uniquely placed to do that.

How does the Resource and Environment Board do cross-practice work?

We have a number of cross parties running right now. We have the Climate Change Working Party engaging with the GI Board to examine two features: the effect on liabilities and on capital market effects.

We have just launched working parties looking at pension schemes and R and E issues, and looking at illiquidity in defined contribution pensions. Most actuaries work in traditional practice areas, but I don’t want people to overly focus on calling themselves a pension actuary or a resource and environment actuary. You can be both.

How optimistic are you that we can follow through on the COP21 agreement?

The main risk is that the world goes back to sleep on this issue, thinking that it has been fixed, when there is still so much to be done.

Actuaries have an important role to play in outlining the risks and appropriate pathways for emissions reductions.

Really the challenge goes back to both governments and individuals to decarbonise their activities – reduce carbon intensity through businesses – and try to ensure future generations have some hope of living on a planet that can sustain them. a January / February 2016 • THE ACTUARY 29 www.theactuary.com

26/01/2016 09:40

Environment Paris agreement

It’s a

fair

COP

Mike Clark reports on a Sustainable Investment Forum roundtable during COP21 and discusses possible changes to the industry in the light of the historic Paris agreement on climate change

As one leading commentator, Jeremy Leggett, put it: “On Saturday I witnessed something that nothing else in human history comes close to, in terms of scale and stakes. Most of the nations on earth, 195 of them, adopted the world’s first universal agreement to fight an existential threat to civilisation, and indeed life as we know it, on the planet.”

The Paris Climate Agreement, adopted in December at the end of the UN climate summit, COP21, is a momentous outcome. It will be interesting to explore what the end of the fossil-fuel era will mean for business and financial services.

So what did two weeks of intense negotiation preceded by many months, indeed years, of work behind the scenes achieve?

The agreement sets out commitments to: ● Keep global temperatures “well below” 2°C above pre-industrial levels, and endeavour to limit them even more, to 1.5°C above that level ● Limit the amount of greenhouse gases emitted by human activity to the same levels that trees, soil and oceans can absorb naturally, 30

THE ACTUARY • January / February 2016 www.theactuary.com

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beginning at some point between 2050 and 2100 ● Review each country’s contribution to cutting emissions every five years, so they scale up to the challenge ● To deliver significant financing by rich nations to help poorer nations adapt to climate change.

I was privileged to represent the IFoA during COP21 at a Sustainable Investment Forum (SIF15) Roundtable event in Paris organised by Carbon Tracker, the not-for-profit organisation that helped coin the term ‘stranded assets’ – where environmental policy devalues or strands fossil fuel reserves. The roundtable topic was ‘Strategic risk disclosures for fossil fuel companies’. It followed the launch of the report on ‘Recommended strategic risk engagement principles for fossil fuel companies’.

About 20 of us attended, representing pension funds, regulators, index providers, investment consultants, investment managers, academics and more. Chatham House rules prevailed, so the views reported are unattributed.

From the outset, there was agreement that greater transparency by companies and standardisation of reporting disclosures is necessary. The recently-announced climate taskforce to be chaired by Michael Bloomberg is seen as an excellent initiative.

There was much discussion around investment in coal companies. What percentage of a company’s business might be based on coal before investors begin to shun it? How might that view be reflected in capital market indices? It was noted that existing indices cover a range of fossil-fuel capital market exposures: fossil-free, ex-coal and several other variants. No standard has yet emerged.

Cross purposes The discussion turned to insurance companies.

Some have extensive expertise in assessing climate risk, but the industry practice of annual repricing hinders a long-term assessment of this. Further, while the liability side of the business might be expert on climate risk, does this expertise flow through the internal governance processes to influence the company’s investment strategy?

It was suggested that some investments held might actually be increasing the risks that the insurance business is seeking to mitigate.

As we looked at the issue of stranded assets in the financial system, we discussed the potential for wider regulation, delivering disclosures from entities other than fossil fuel companies. Might light-touch regulation of pension funds nudge them in the right direction? One UK pension fund has recently published an investment policy which states: “Our objective is to ensure our fund’s investment portfolio and processes are compatible with keeping the global average temperature increase to remain below 2°C relative to pre-industrial levels”.

How might such a policy be moved from a leadership role towards best practice?

Moreover, this fund’s policy explicitly refers to the role of the actuarial valuation and funding in meeting the objective. It was noted that many pension funds in Europe are further ahead in managing climate asset risk (and other environmental and social governance factors) than the small number of UK pension fund leaders.

Bank of England governor Mark Carney’s recent speech to insurers on climate risks helpfully splits them into physical, transition and liability risks. This was seen as a useful framework for financial services and business to build on.

One participant referred to the recent French law that will drive mandatory climate disclosures by investors. At the time of writing, the details are not clear. But this law IKON

26/01/2016 09:40

MIKE CLARK is

director, responsible investment, Russell Investments

January / February 2016 • THE ACTUARY 31 www.theactuary.com

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26/01/2016 09:40

Environment

Live links on our app! p!

Paris agreement

It will be interesting to explore what the end of the fossil-fuel era will mean for business and financial services”

might be broadly seen as making mandatory the voluntary Montreal Carbon Pledge to measure and report an investor’s carbon footprint. We also talked about the developing perspective around fiduciary duty. Once viewed narrowly, a growing number of asset owners see the management of carbon asset risk as a duty to be met, rather than an ethical issue to be avoided. Further, the potential legal risk of pension fund trustees is beginning to gain greater prominence through initiatives such as the Climate Pension Legal Initiative.

The recently-launched Commonwealth Climate Law Initiative (CCLI) was also highlighted. CCLI plans to look at fiduciary duty with respect to climate change risk in some Commonwealth countries (starting with the UK, South Africa, Canada and Australia), for both company directors and pension fund trustees.

As the IFoA representative on the Advisory Panel for the Stranded Assets Programme at one of the organisations involved – the Smith School at the University of Oxford – it will be interesting to see how this research evolves.

The other partners are Client Earth, environmental lawyers, and The Prince’s Accounting for Sustainability project (A4S).

Coping with new goals

World leaders attend COP21 in Paris and make a momentous agreement on climate change

32

What conclusions can we draw, both from this roundtable and the historic COP21 outcome?

First, climate change is firmly on the agenda of governments and regulators. The Paris agreement provides a clear signal for investors, companies, governments and civil society that the transition to a low-carbon economy is inevitable. Many years after the Kyoto Protocol,

and six years after the disaster of the Copenhagen COP15, governments have united to start tackling climate change with serious intent. There is much more to do. Governments will need to scale up their ambition, and deliver on their commitments. They also must provide the framework, the stability, for the private sector to move forward and take advantage of the opportunities that arise. This will all take many years; it’s a multi-decade timescale.

Second, now that investors and others have got the attention of governments, it seems likely they will increasingly be expected to do their own part. This will mean increasing the flow of finance for renewables, introducing low-carbon investment strategies, considering the advantages of green bonds, and collective engagement with companies through the exercise of share ownership rights (for example the BP and Shell AGM Shareholder Resolutions earlier in 2015).

Third, as the president wrote in her November 2015 Opinion, there are excellent opportunities for actuaries to develop and use their skills in this area. The profession’s position paper (bit.ly/22MCIOr) clearly states climate change is a risk issue. And of course, actuaries are the high priests of risk! Our general insurance colleagues have been involved here for many years, and now investment consultants and scheme actuaries are getting involved. Perhaps climate risk is big enough to figure in some actuarial firms’ business models.

If a UK pension scheme has an investment policy that is aligned with a 2 degree world, what might that mean for a profession following its clients where they plan to go? a

THE ACTUARY • January / February 2016 www.theactuary.com

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26/01/2016 09:40

BOOK REVIEW

Misbehaving: The Making of Behavioural Economics

by Richard Thaler PUBLISHER: Allen Lane ISBN-10: 1846144035 RRP: Hardback £20.

Richard Thaler’s latest book Misbehaving is, in effect, an academic autobiography charting his course over several decades through the choppy waters of economics, with his colleagues reluctantly coming to terms with the irrational behaviour of human beings.

Professor Thaler is based in Chicago and best known for his book Nudge with Cass Sunstein, which I reviewed (bit.ly/1Zmagyh) in this magazine along with an interview with him.

He has since worked for the No 10 Downing Street ‘behavioural insights team’ known to everyone as the ‘nudge unit’.

Richard Thaler’s father, Alan, was an actuary, so he collected some life table information and wrote an early paper on the value of a human life. This led him to test his ideas on his classes, which were asked how much they would pay for a cure for a disease with a 1-in-1,000 chance of killing them (up to $2,000) and separately, how much they would demand in safety money for an experiment which would have a 1-in-1000 chance of killing them (at least $500,000). In other words their lives were worth no more than $2m and no less than $500m. Contradictions like this run throughout the work.

In this book, Professor Thaler contrasts the behaviour of two types of creature, Econs (who behave just as any economics text book would tell you to) and Humans, who just don’t get it.

So the professor with an old bottle of vintage claret in his cupboard now worth $500 is happy to share it on a special occasion with his friends.

But would he pay $500 for a bottle of top claret to celebrate? No he couldn’t afford that expense.

The endowment effect, where we are influenced by where we start from regardless of the logical choices we face, forms a core of his writing.

Thaler introduces prospect theory, where an economist conducts his work by looking at how people are likely to behave. A subject might be uncomfortable tossing a coin for a 50% chance of winning $2,000 rather than accepting $1000 on the table. The reason is that the first $1000 is worth more than the next because of the diminishing marginal utility of wealth.

Prospect theory is about working out how real Humans are likely to behave.

The other focus of his analysis is what he calls SIFs – supposedly irrelevant factors. He started on this subject when, faced with a set of students disappointed with average marks of 72 out of 100 in his exams, he increased the total mark to 137 and found that an average of 96 (70% in fact)

Thaler contrasts the behaviour of two types of creature, Econs, who behave as an economic text book would tell you to, and Humans, who just don’t get it”

went down much better with the class.

An amusing long list of SIFs includes tickets to a sports game during a major winter snowstorm with travel almost impossible.

The people who won free tickets in a raffle decide not to struggle to get there. The ones who purchased their own brave the elements there and back. Their decisions should really have been the same.

The book is great fun to read, dealing with all kinds of anomaly in human interaction.

My favourite conundrum is the question: “Guess a number from 0 to 100 with the goal of making your guess as close as possible to two-thirds of the average guess of all those participating in the contest”.

Answers please to editor@theactuary.com and we will present the analysis of how actuaries answered this question in a future issue and compare it with Humans.

The science of behavioural economics is important for us in our work persuading people to take out insurance, contribute to pension policies or plan for their financial well-being.

This book is thoroughly worth reading as a foil to those moments when you want to argue for the magic, invisible hand of the market. ● Peter Tompkins is a consultant pensions actuary, and chairman of The Actuary editorial advisory panel

MORE ONLINE Latest reviews at www.theactuary.com/opinion

January / February 2016 • THE ACTUARY 33 www.theactuary.com

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26/01/2016 16:49

At the back student@theactuary.com

Student Happy new year from Jessica Elkin and, she says, while the future looks bright for actuaries, it’s always worth planning for a worse-case scenario

DEALING WITH MONKEY BUSINESS An ActEd tutor once commented in a tutorial of mine that pensions actuaries could be replaced by monkeys. Now there’s a line that’ll give a girl some existential angst.

Options for coming to terms with it include assuming that he was referring obscurely to infinite monkey theorem, or perhaps he took those old PG Tips adverts with the chimps too seriously, leading to an elevated opinion of their abilities – could be either.

Having digested that inspirational titbit over the last few years, I continue to be thankful that the prevailing opinion is not in line with his. Yes, actuarial banter might include teasing pensions actuaries about the decline of DB pensions making them obsolete.

Or teasing life actuaries because Solvency II is now in place, and there’ll be nothing left for most of them to do. And so on. I shouldn’t let GI actuaries get away scot-free, but it’s not my area of expertise.

These jokes got me thinking about actuaries’ potential – the bad kind. Last year I went to an industry talk by Centre for Policy Studies expert Michael Johnson in which he proclaimed that pensions are dead. He then went on to say that insurance is dead. He also said that we should abolish corporation tax. He said a lot of rather outrageous things, actually, but still. He predicted a concerning state of affairs for our kind.

Orwell that ends well What I’m eventually getting at is this: what would happen to us in a world where we were no longer necessary, replaced by infinite monkeys, or machines (think 34

Terminator with calculators), or cheaper workers elsewhere who can dial in via Skype?

We shouldn’t get too comfy. A few years ago we wouldn’t have expected cabbies to be in any imminent danger, then along came Uber.

Better for the consumer; not so good for taxi drivers.

Virginia Woolf said back in the 1920s, that “The very stone one kicks with one’s boot will outlast Shakespeare,” and during a tutorial at

university I debated this with other students.

Would there be a time when Shakespeare would cease to be relevant?

I know what you’re thinking: ‘Thank God someone thought to ask this!’ But now my priorities are different, and so is the question.

Could actuaries cease to be relevant? What would I do if such a thing happened?

We all have an understanding of the value of actuarial skills. Actuarial employers know our value. But sometimes, just sometimes, I’m not sure anyone else really has any clue.

Lay people who have some idea are impressed when I tell them what I do. But we all know those people are thin on the ground, and that they are probably just nodding along so that we stop talking about numbers. Let’s hope these nodders-along keep it up if we’re asking them for a job.

After the surprising majority of the last general election, I read a newspaper article on a phenomenon where we all think our political view is popular because we are all living in a social media echo chamber of our own opinions. We are parroting what we hear from our mates, and agreeing with these people on our social networks, so we believe that our views must be widely accepted in the population as a whole.

Sometimes I wonder if it’s the same here.

We, in the profession, all know that we’re worthy, but in reality are we both the emperor and the adoring crowds admiring his birthday suit?

Thanks a bunch I know this isn’t a particularly awe-inspiring way to start the year. I should be telling everyone to start a jar of happy thoughts and be thankful for the small joys of every day.

Call your mum more often, post flowers through a neighbour’s letter box, smile at babies you pass. That sort of thing.

But what better way to take your mind off a soggy January than a bit of cynical navel-gazing?

My foray into this sort of metaphysical catastrophe scenario, hopefully represents a less than 1-in-200 circumstance. Naturally, it is not to be taken seriously. But if you hear of a zombie apocalypse approaching, you might want to think about how useful that calculator is going to be. Thankfully, we are smarter than the dodo. Just check out our foray into the realms of climate change and the environment, as evidenced in this issue.

We are kings of evolution and won’t be dying out anytime soon. And if pensions and insurance did, well we’d hopefully step over their remains onto the next big challenge. a

THE ACTUARY • January / February 2016 www.theactuary.com

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26/01/2016 09:41

At the back

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iQ

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GETTING A BIT OF CREDIT

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BY NYLFIA

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Solving this crossword can earn you some all-important CPD points Across 1

6 10

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© Nylfia

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Short contest with weapon involving one of easy going nature (10) Establishment covers too much in convention (4) Film where heartless Midler, Allen and Moss face break-up (6,4,1,4) Lay out Spaniard on stage (4) Honesty is tiring yet character forming (9) Decay discovered in attic – airy void displaying corruption (13) Conveyance of Fellowship on Chief Whip? (13)

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Picture showing Spanish representation of The White House (10)

Tube teaser Mensa puzzle 651

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20 Unbiased in a trial with Republican promoted after one politician (9) 23 Pronounced cheek in Old France (4) 26 Senora: man hunter exhibiting Alabama Good Form (1,8,6) 28 Entertainment opener to end badly in PM (4) 29 Fitness to play in school tennis seconds? (10)

Down

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Chaos when Rommel sat outfoxed? (9) 3 Possession retained from line out? (4) 4 Garnet found buried in coal field (3) 5 Split open spice (5) 7 With outstretched arms, made haste in working extra hours (5) 8 Shellers providing central characters in magazine (4) 9 Wet weather is seen following expression of disgust from Arabs (9) 13 No aim to spin from Campbell, perhaps (5) 14 Workers support commercial

15 17 18 21 22 24 25 27

project for administrative assistants (9) Handy with strapping generally (2,3,5) Ton recorded by cricketer makes her famous? (5) Actor giving a reminder to old Queen in envelopes (3,6) Beast, low lying on step, irregularly (5) American band I follow through extremes (3,2) Mind control (4) Teenager finishing up with soldier, perhaps, at Rave (4) Kip down? (3)

Missing meanings Mensa puzzle 652

www.mensa.org.uk Use the letters given to complete the pyramid so that one sevenletter word, one five-letter word, one four-letter word and three words of three letters can be read.

What are the words?

A A C H J O P R R T U U

Find words to fit the clues, one letter in each word is given for you and all the words end in the same three letters.

What are the words?

D

____ ____ Plentifulness

R_ _ _ _ _

____ Revulsion

G

____ Result

S M Y

E_ _ _ _ _ _

FOR PUZZLES SOLUTIONS - December 2015 Answers and more can be found online.

Please go to www.theactuary.com/puzzles

January / February 2016 • THE ACTUARY 35 www.theactuary.com

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26/01/2016 10:04

News People & Society NEWS UPDATES FROM THE ACTUARIAL

A sizzling quizzing

By Deirdre O’Brien

A challenge for the ‘eyePlod’ team Husband and wife actuaries Simon St Leger-Harris and Elizabeth Treherne completed the inaugural Bristol and Bath Marathon on Sunday 25 October, raising money for: ● Friends of Bristol Eye Hospital – which helps to pay for medical equipment, patient comforts and staff resources not otherwise provided ● Life Cycle UK’s Two’s Company – a Bristol based charity that enables blind and partially sighted people to cycle on tandems ● Sightsavers International national ational – which saves people’s sight and as assists sists those who have lost theirs in developing g countries. c Simon’s sight wass saved by the wonderful work of the Bristol Eye Hospital in 2009-11 and he is now a Trustee and Treasurer of the Friends. Elizabeth iss a volunteer tandem m front-rider for Two’ss Company.

Simon was running n his ng first-ever marathon – and had thought it would be his last. Elizabeth was running her fourth marathon, adding the scenic (and hilly) Bristol and Bath to her more glamorous collection so far of New York, London and Paris. Here, they describe their efforts: 36

“The slightly curious course left Bristol in the wrong direction, heading towards Avonmouth for five miles before returning to where we had started. From there, we headed east towards Bath – but not by the obvious direct and largely flat routes along the road or the River Avon. No – a twisting and hilly route through Kelston, passing many tempting pubs full of people enjoying themselves. We had driven it a few weeks before, then wondered if ignorance might have ha av been preferable. ““We both finished in n one piece – Elizabeth in four Eli E hours 23 minutes and ho h Simon in five hours Si S 50 minutes. It might 5 not no ot sound fast but Simon Simo on was pleased to finish h and leave himself scope e to t improve.

Indeed, Inde ee he is talking of all doing it al ll again!

“We ran under the tteam name of ‘eyePlod’ and sponsors sponsorship h is still open. supporters so far, With thanks to all our sup supp we have raised almost £2,400 towards our target of £3,000.”

To contribute, go to https://mydonate.bt.com/ teams/eyeplod where you can choose to donate to Friends of Bristol Eye Hospital or Life Cycle Two’s Company.

The fourth and final event of the 2014/2015 Society of Actuaries in Ireland Student Committee was the annual summer BBQ in D2 on Harcourt Street, Dublin. This event was jointly hosted by the Student Society Committee and Acumen Resources, with both student actuaries and recent qualifiers invited to attend.

The event commenced at 6:30pm with over 80 students in attendance. There was a huge spread of BBQ food available to suit everyone’s taste as well as a range of salads and wedges, all washed down with a range of complementary drinks, from craft beers to cocktails.

After the BBQ came the competition everybody was waiting for – the chance to win an Apple iPad, kindly donated by Acumen Resources. Everybody who had registered for the event was entered into a draw, however, only those present on the night could participate.

Six lucky attendees were chosen at random to participate in a knock-out quiz of five rounds. Competitors were asked a question in each round and whoever was furthest from the correct answer was knocked out.

Questions on the night ranged from requiring competitors to determine the total maximum recommended study for all exams and courses to qualify as a Fellow of the IFoA, to guessing how many bridges cross the River Liffey from Lucan to the coast.

The knock-out rounds continued until finally, Michael Cheuk was the last participant standing. He was presented with his new Apple iPad by Jenny Johnson (below).

Thanks to D2 and Acumen Resources for their help in organising another successful event, and to all the members who attended.

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

THE ACTUARY • January / February 2016 www.theactuary.com

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26/01/2016 09:42

ARIAL PROFESSION

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

Obituaries

Dominic Scally

Charles Cowling on the double It seems that having run 10 marathons in 10 days for charity in 2014, JLT’s Charles Cowling has got the bug for charity marathon running. We caught up with him after his last double – New York and Kirkstall Abbey, Leeds.

“The New York marathon was very special. From the start on Staten Island with its American National Anthem and Frank Sinatra send-off, through Brooklyn, Queens, the Bronx and Harlem and finally finishing on 5th Avenue and into Central Park, it was full of evocative sights and sounds.

“The fantastic crowds gave us amazing support and the great mix of bands and music cheered us on our way. It was a bit tougher than I was expecting as, surprisingly, it’s not very flat. The many bridges are hard work and most of the last two or three miles along 5th Avenue are uphill which seems very unfair, even if the grandstand finish in Central Park and a time of four hours nine minutes made it all worthwhile.

“My second marathon at Kirkstall Abbey couldn’t have been

Births Moiz Khan (Prudential) and Saba Moiz are delighted to announce the birth of their baby boy, Musa Moiz, who arrived on 1 January 2016 to celebrate the New Year with them.

more different. A tough and muddy trail just north of Leeds was the setting for the annual reunion of the Brathay 10in10 Club (those few souls foolish enough to have completed the 10 marathon challenge). The wind was blowing a gale and it was bitterly cold, but otherwise it was a beautiful day and the rain and snow stayed away.

“It was very muddy and we were sliding around all over the place and continually getting bogged down in waterlogged shoes. But I was delighted to get round in four hours 15 minutes. Much of the Yorkshire scenery was very beautiful in lovely autumn colours and with so many friends out on the course it was a joyous if very tiring day.”

We congratulate Charles on his fundraising efforts – with a magnificent sum raised of around £10,000 (generously supported by JLT) for the wonderful charity for disabled children Get Kid’s Going.

Charles is not stopping there and is planning more marathon fundraising in 2016, see

uk.virginmoneygiving.com

Died on 20 September 2015, age 48.

It is very sad to report the death of Dominic Scally. He had a varied career spanning different disciplines and employers. The first 13 years of his working life were spent in the life insurance sector, working solely at Century Life, after which he switched careers and entered the pensions industry, working for Hymans Robertson, Jardine Lloyd Thompson, Mercer, RiskFirst, and finally the Pensions Regulator. Even at the early stage of his career he enjoyed the social networking side of work. After 18 years he happily completed the exams, having participated in the exam structure through its various guises existing from the late 1980s, becoming a Fellow in 2006 , and shortly thereafter a scheme actuary.

After qualification, he continued to serve the IFoA as an assistant examiner, a role he continued to undertake until his illness curtailed him from continuing. Outside of business he enjoyed playing golf and real tennis (there was a court in his village).

Dominic was diagnosed with cancer some years ago and the first chemotherapy treatment initially resulted in him overcoming the illness.

However, after more than a year of being cancer free, the disease returned and the second round of treatment was sadly unsuccessful.

He died at the local hospice in September. He is survived by his wife, Lisa, and his dog Dotty.

By Jack Shearing

Brendan McBride MA FFA FPMI Born on 10 June 1933 in Glasgow and died at home in Bristol on 31 October 2015.

On graduating from Glasgow University, Brendan joined Scottish Amicable and enrolled as a student of the Faculty of Actuaries, qualifying as Fellow in 1962.

Shortly thereafter he joined the Caledonian Insurance Company, before moving south in 1967 to work with London Life.

Brendan was a colourful character with a social conscience, who never forgot his roots. He served on Faculty Council in 1986-9 and frequently made contributions at Faculty Sessional meetings.

Even after he had retired he was a regular attender at sessional meetings in Edinburgh, followed by dinner at the Scottish Actuaries Club, and had recently booked to come to the IFoA’s Autumn Lecture on 9 November 2015.

In 2004, when he was chairman of the SAC, he initiated an ‘Away Weekend’ event for members and their wives ahead of the first sessional meeting. These continue as an annual event in which Brendan and his wife, Stella, always participated.

At the time of the discussions that led up to the merger of the Institute and the Faculty, Brendan was a leading member of a group of FFAs, referred to by some as the ‘Tartan Ten’, who argued successfully for improved terms for the merger.

By Paul Grace

Deaths Mr Gary Francis Boal died recently, aged 52. He was a Fellow.

Mr John Raymond Ford died recently, aged 86. He was a Fellow.

Mr Peter Douglas Johnson died recently, aged 86. He was a Fellow.

January / February 2016 • THE ACTUARY 37 www.theactuary.com

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26/01/2016 10:51

SPONSORED BY

Appointments peoplemoves@theactuary.com

Moves Cannings will support Gulland and strengthen the actuarial and risk management team.

He has 15 years’ experience in the life insurance industry.

Barnett Waddingham has appointed David Gulland (above) and Tom Cannings to join its life insurance consulting team. Gulland will lead the firm’s strategic and transactional services to life insurance companies.

He was most recently the chief executive of Marine & General Mutual, having initially joined that firm as chief risk officer.

His previous roles include managing director of RGA’s UK and Irish business, and 25 years as a consultant to the life industry.

Queen Mary University of London (QMUL) has appointed Jim Webber (above) as lecturer in actuarial science to support the development of its new Mathematics with Actuarial Science undergraduate programme, and to develop links with industry and the profession.

Webber joins QMUL after a short period working in Further Education.

Prior to this he held a number of senior actuarial roles, including CRO and group actuary , in a 19-year career at Aviva.

He also worked as a consultant for nine years with Towers Watson.

Paul Macro (above, right) has joined Isinglass Consulting as joint-owner and director.

Macro was most recently part of the DC leadership teams at Mercer and Towers Watson. His career has spanned more than 25 years at top

consultancies, the majority of which have been spent advising the country’s largest DC arrangements.

Towers Watson has appointed Marcus Bowser (above, right) to the position of UK life sales and practice leader.

With more than 15 years of experience in the life

insurance industry, Bowser has held a number of senior positions with Aviva, S&P and PwC. He is also chair of the IFoA Risk Board.

Royal London has appointed Brian Murray (above, right) to the role of with-profits actuary. Murray has spent 20 years in the

www.hfg.co.uk

NAMRATA BAGREE Employer and area of work Prudential, Solvency II.

How would your best friend describe you?

Short, rational, hungry, adventurous, spontaneous and geeky.

What motivates you?

Primarily food, but anything that requires a little bit of challenge, or a whole lot of imagination.

What would be your personal motto?

Everything happens for a good reason.

Name five dream companions to be stuck on a desert island with?

George Clooney, Jackie Chan, Akshay Kumar, Ellen DeGeneres and the man from Man vs Wild, Bear Grylls.

What’s your most ‘actuarial’ habit?

Formatting my life.

Favourite Excel function?

BDH (the Bloomberg add-in functions are really handy).

How do you relax away from the office?

Taekwondo, baking, food festivals and 38

industry, including 16 years at Royal London.

He will report to Shaun Cooper, Royal London Group’s chief actuary.

Murray takes over from Steve Wilson who held the role for the past 11 years. Wilson will retire in the summer but in the meantime he will continue on a number of actuarial projects.

ACTUARY OF THE FUTURE walking around the streets of London.

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

I am a bit tiny and keep getting asked for ID everywhere I go. The most embarrassing moment was in Disneyland, during the parade. I was sitting next to a kid with a DSLR camera like mine and a silent paparazzi war started between us. The Alice in wonderland float stopped in front of me and the characters started picking up children from the crowd, putting little card costumes on them and forcing them to dance. They picked up my nemesis and I felt so smug laughing at his little face. Sadly, the joke was on me because I got dragged in as well. There I was, surrounded by nine year olds, dancing with teapots.

Alternative career choice?

Pastry chef.

What song best describes your work ethic?

Warriors by Imagine Dragons.

Greatest risk you have ever taken?

Jumping out of a plane.

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

Mother Teresa.

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

Anna Kendrick because she is short, witty and can actually sing.

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

Nikita Gandhi – the 21 year old who won the vegetarian season of MasterChef.

Do you know an actuary destined for greatness?

You can nominate an Actuary of the Future by emailing

aotf@theactuary.com

THE ACTUARY • January / February 2016 www.theactuary.com

p38_jan_feb_AOTF_FINAL•CT.indd 38

26/01/2016 09:45

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

Highlighting Opportunities HFG’s consultants specialise in matching you to the right role at the right company. Call us ǡ Ƥ Ǥ Ben Hickey GI Perm +44 (0) 207 337 8859 ben@hfg.co.uk

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

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

GI Perm +44 (0) 207 337 1201 ̻ Ǥ Ǥ

General Insurance - Permanent roles Ƭ

͙͋͛͘ Ǧ ͙͋͘͞ ǡ

͋ ǡ

ǯ Ƥ Ǥ Ƥ Ǥ Ǥ For more information please contact: william@hfg.co.uk REF: WG0101

Ǥ Ǧ Ǥ Ǥ For more information please contact: william@hfg.co.uk REF:WG0102

Ȁ Ƥ

Deputy Solvency II Actuary

͋͞͝ Ǧ ͋͘͡ ǡ

Ǥ Ƥ Ǥ ǣ ̻ Ǥ Ǥ ǣ ͙͙͘͘

Capital Actuary

͋͞͝ ǡ

Ƥ Ǥ ǡ

Ǥ ͛ ή ǡ Ƥ Ǥ For more information please contact: ben@hfg.co.uk REF: BH0101

͋͘͟ Ǧ ͋͘͠ ǡ

ǯ

Ǥ

ǡ Ǥ Ǥ ǣ ̻ Ǥ Ǥ ǣ ͙͚͘͘

Reserving Analyst

͋͘͜ Ǧ ͋͘͝ ǡ

ǡ Ǧ Ǥ ͙͚ ͙ ͙ Ǥ

Ǥ Ǧ ǡ Ǥ For more information please contact: ben@hfg.co.uk REF: BH0102

General Insurance - Contract roles

͋͘͠​͘ Ǧ ͙͚͋͘​͘ ǡ

Reserving Contractors

͋͘͠​͘ Ǧ ͙͋͘​͘​͘ ǡ

Ǥ Ȁ Ǥ ǡ Ƥ Ǥ For more information please contact: rupa@hfg.co.uk REF: RP0101

Ǥ ǡ ǯ Ȁ Ǥ

ǡ Ǥ Ƥ Ǥ For more information please contact: rupa@hfg.co.uk REF: RP0102

Capital Contractors

Solvency II Actuaries

͋͘͟​͘ Ǧ ͙͋͘​͘​͘ ǡ

ǡ ͞ Ǥ

Ǥ Ǧ ǡ work. For more information please contact: rupa@hfg.co.uk REF: RP0103

+44 (0) 207 337 8800

͋͘͟͝ Ǧ ͙͚͋͘​͘ ǡ

Ǥ ͚ Ǥ For more information please contact: rupa@hfg.co.uk REF: RP0104

Ǥ Ǥ Ǥ January / February 2016 • THE ACTUARY 39 www.theactuary.com

ACT Rec JanFeb16.indd 39

26/01/2016 09:14

Appointments

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

NON-LIF E PART QUALIFIED TO NEWLY QUALIFIED PRICING ACTUARIES HOME COUNTIES Up to £80,000 depending on experience + bonus + beneƓts NON-LIFE

Samantha Yee yees@mansionhouse.co.uk

Mansion House are keen to speak with Part QualiƂed through to Newly QualiƂed Actuaries who are based in the Home Counties and specialise in Personal/Commercial Lines Pricing. To be considered you must have experience of pricing analysis and industry best practice, pricing strategy, model development and maintenance, experience of using software such as Emblem, Radar, rate assessor, R, SQL etc. With a minimum of 2 years of experience, you will be making steady progress with your exams, if not already qualiƂed, and be a strong communicator who enjoys working in multi-disciplinary teams.

Ref: sy24404

HEAD OF PRICING & RESERVING LONDON c£150,000 + bonus + beneƓts

Specialist non-life insurer, providing a wide range of services, are now looking for a highly experienced individual to lead the Pricing and Reserving team. Working closely with key senior internal and external stakeholders, you will be a strong communicator with highly developed inƃuencing skills. Responsibilities will include; overseeing the pricing and reserving functions including model development, making sure the requirements of the business are met; man management; BAU reserving across all lines; reporting; all Solvency II related projects. You must be a qualiƂed actuary with prior Lloyd’s/London Market experience with demonstrable management skills. Full support will be given to those from a reserving only background who are looking to expand their skill set. Ref: sy24429

LIF E AND PEN S I O N S

LIFE

Lloyd Seaborn seabornl@mansionhouse.co.uk

HEAD OF DATA ANALYTICS, LIFE INSURANCE LONDON

SENIOR SCHEME ACTUARY LONDON

A Unique opportunity to build, lead and shape a new offering within the Life Insurance Data Analytics space.

Responsibilities will include advising on analytical and data strategy, developing analytical risk management frameworks and designing data warehouses, to name a few. You must possess extensive Life/Protection product knowledge, strong statistical analysis, programming and modelling skills with an outstanding academic track record. Applications welcome from those with an Actuarial or Computer Science background.

Ref: ls24386

Excellent opportunity for a highly experienced Pensions Actuary to join the London based team of a multidisciplinary consultancy who are currently seeking a senior Scheme Actuary to take on an existing client portfolio. You will be responsible for the delivery of actuarial and consultancy advice to employers and Trustees of DB & DC schemes including M&A work, de-risking and liability management.

The successful candidate will be a strong, dynamic client facing actuary who enjoys working as part of a vibrant team.

Ref: bw23287

Up to £160,000 + bonus + beneƓts

COO, LIFE INSURER LONDON

£280,000 + executive bonus and beneƓts package FRANCE/BELGIUM/LUXEMBOURG Dior Musombo musombod@mansionhouse.co.uk

A rare opportunity to take the helm of this well-known insurer with leadership of c400 staff. A globally recognised Ƃ gure, you will already be a member of an Executive Leadership Committee with a strong and active presence on social media platforms and in the Life insurance market; conducting regular seminars and conferences. With experience of full P&L accountability alongside inƃ uencing strategy execution across all business units, you will have a keen interest in brand recognition and complete business turnaround. You must have extensive experience from within the Life Insurance sector across all products. MBA and Actuarial qualiƂ cations will be necessary. Ref: COOlife

Up to £150,000 + 50% bonus

FANTASTIC DB OPPORTUNITY WITHIN LIFE INSURER NORTH WEST Up to £60,000 + competitive remuneration package

A great opportunity for a technical Actuarial Analyst, with good DB experience, to join a large life insurer in the North West of England. You will be of graduate calibre and be making steady progress through your exams however applications are also welcome from those candidates who are no longer studying towards their FIA qualification. If you are looking for a technically challenging role that offers fantastic work life balance then get in touch for a confidential discussion.

Ref: bw21546

E UR OP E

FRANCE

Elodie Hong Tuan Ha Elodie@mansionhouse.co.uk

SENIOR ACTUARIAL & FINANCIAL RISK CONSULTANT BRUSSELS

SENIOR LIFE ACTUARY CONSULTANT PARIS, FRANCE

QualiƂ ed Life/NL Actuaries (IABE or similar) with signiƂ cant consulting and managerial experience required for this Brussels based Professional Services Ƃ rm. You will have a solid track record within Life/P&C and be well connected in your market, leveraging off your network to help grow and maintain the business. With a minimum of 5 years of experience you will be expected to take a leadership role generating, executing and overseeing work as well as mentoring more junior members of the team. Dutch is an advantage. Ref: dm23971

Leading professional services Ƃ rm are seeking a Senior Life actuary. Your responsibilities will be varied e.g. Embedded Value, ALM, Solvency II alongside participating in business development activities as well as technical supervision of more junior consultants. To be successful, you will hold a relevant higher education degree, have 3 to 6 years of Life experience, a strong analytical mind, thrive as part of a team and speak ƃ uent English. Experience using Moses or Prophet would be an added advantage. Ref: ef22119

PRODUCT DEVELOPER HEALTH MUNICH, GERMANY

PRICING ACTUARY FRANCE

A well-known German insurance company is looking for a Product Developer (Health) to be based in Munich. With at least 3 years PQE within Health insurance, the role will cover tariff calculation, re- and post calculation and knowledge of the legal components.

Candidates will possess a Masters degree in mathematics (or similar), highly developed soft skills, communicative and conƂ dent behaviour, interested in working independently as well as working in a team. Ref: jd24305

Actuary with strong expertise in Personal Lines pricing and GLM modeling required for a leading insurance company.

You will be in charge of the pricing models, the development of underwriting rules, the strategy of the company as well as the anticipation of new market trends and pricing innovation using Big Data. ProƂ ciency in English is required. You must be automonous, curious, proactive and have strong experience in Emblem or Pretium. Ref: ehth24405

€ Excellent remuneration package

€60-80,000 + bonus + beneƓts

GERMANY

40

Julia Dunkelberg dunkelbergj@mansionhouse.co.uk

THE ACTUARY • January / February 2016 www.theactuary.com

ACT Rec JanFeb16.indd 40

€55-85,000 + bonus + beneƓts

€50-60,000 + bonus + beneƓts

26/01/2016 09:14

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

www.theactuaryjobs.com

Senior Investment Consultant – Insurance, London ƩƌĂĐƟǀĞ ^ĂůĂƌLJ н ŽŶƵƐ Θ ŵƉůŽLJĞĞ ĞŶĞĮƚƐ WĂĐŬĂŐĞ

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WƌŝĐŝŶŐ ĐƚƵĂƌLJ͕ ^ǁŝƚnjĞƌůĂŶĚ ƩƌĂĐƟǀĞ ^ĂůĂƌLJ

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^ĞŶŝŽƌ DĂŶĂŐĞƌ ;EŽŶͲ>ŝĨĞͿ͕ >ŽŶĚŽŶ ŽŵƉĞƟƟǀĞ ^ĂůĂƌLJ н ĞŶĞĮƚƐ

dŚŝƐ ŐůŽďĂů ƐƚƌĂƚĞŐŝĐ ŵĂŶĂŐĞŵĞŶƚ ĐŽŶƐƵůƚĂŶĐLJ ŝƐ ůŽŽŬŝŶŐ ƚŽ ĞdžƉĂŶĚ ŝƚƐ ŚŝŐŚ ƉĞƌĨŽƌŵŝŶŐ ŶŽŶͲůŝĨĞ ŝŶƐƵƌĂŶĐĞ ƚĞĂŵ ǁŝƚŚ ƚŚĞ ĂƉƉŽŝŶƚŵĞŶƚ ŽĨ ĂŶ ĞdžƉĞƌŝĞŶĐĞĚ ƐĞŶŝŽƌ ŵĂŶĂŐĞƌ͘ dŚŝƐ ƉĞƌƐŽŶ ǁŝůů ĚĞůŝǀĞƌ ďƵƐŝŶĞƐƐ ŝŵƉƌŽǀĞŵĞŶƚ ĂŶĚ ĐŚĂŶŐĞ ƉƌŽũĞĐƚƐ ďLJ ĚĞŵŽŶƐƚƌĂƟŶŐ ƐƚƌŽŶŐ ƉƌŽďůĞŵ ƐŽůǀŝŶŐ ĂŶĚ ŝŵƉůĞŵĞŶƚĂƟŽŶ ĐĂƉĂďŝůŝƟĞƐ͘ ,ĞͬƐŚĞ ǁŝůů ĂůƐŽ ƵƐĞ ƐƚƌŽŶŐ ĂŶĂůLJƟĐĂů ƐŬŝůůƐ ƚŽ ƉƌŽǀŝĚĞ ƐŽůƵƟŽŶƐ ĨŽƌ ďŽƚŚ ƚĞĐŚŶŝĐĂů ĂŶĚ ŽƉĞƌĂƟŽŶĂů ŝŵƉƌŽǀĞŵĞŶƚ ƌĞůĂƚĞĚ ŝƐƐƵĞƐ͘ ĂŶĚŝĚĂƚĞƐ ǁŝůů ŚĂǀĞ ƵƉ ƚŽ ϱ LJĞĂƌƐ ĞdžƉĞƌŝĞŶĐĞ ŽĨ ǁŽƌŬŝŶŐ ŽŶ h< ĐůŝĞŶƚ ĂĚǀŝƐŽƌLJ ƉƌŽũĞĐƚƐ ĨƌŽŵ ǁŝƚŚŝŶ ĂŶ ŝŶƐƵƌĂŶĐĞ ŵĂŶĂŐĞŵĞŶƚ ĐŽŶƐƵůƟŶŐ ƉƌĂĐƟĐĞ Žƌ ƉĞƌŚĂƉƐ ĨƌŽŵ Ă ĐŽƌƉŽƌĂƚĞ ƉƌŽũĞĐƚƐ Žƌ ƐƚƌĂƚĞŐLJ ƌŽůĞ ĨƌŽŵ ǁŝƚŚŝŶ Ă h< ŝŶƐƵƌĂŶĐĞ ƉƌŽǀŝĚĞƌ͘ WƌŽŐƌĞƐƐ ǁŝƚŚ ĂŶ ĂĐƚƵĂƌŝĂů ƋƵĂůŝĮĐĂƟŽŶ ĐŽŵďŝŶĞĚ ǁŝƚŚ ŐŽŽĚ ĂĐĂĚĞŵŝĐ ĂĐŚŝĞǀĞŵĞŶƚ ƚŽ ĚĞŐƌĞĞ ůĞǀĞů ŝƐ ƐƚƌŽŶŐůLJ ƉƌĞĨĞƌƌĞĚ͘ ŽŶƚĂĐƚ͗ ƉŚƵ͘ŶŐŽĐΛŝƉƐŐƌŽƵƉ͘ĐŽ͘ƵŬ dĞů͗ нϰϰ ϮϬϳ ϰϴϭ ϴϲϴϲ

ŽŶƐƵůƟŶŐ ĐƚƵĂƌLJ ʹ WĞŶƐŝŽŶƐ͕ DĂŶĐŚĞƐƚĞƌ ά ƩƌĂĐƟǀĞ н ŽŶƵƐ Θ ĞŶĞĮƚƐ

ŐĞŶƵŝŶĞůLJ ƌĂƌĞ ĂŶĚ ĞdžĐŝƟŶŐ ĐĂƌĞĞƌ ŽƉƉŽƌƚƵŶŝƚLJ ŚĂƐ ĂƌŝƐĞŶ ĨŽƌ Ă ŶĞĂƌůLJͬƌĞĐĞŶƚůLJ ƋƵĂůŝĮĞĚ ƉĞŶƐŝŽŶ ĂĐƚƵĂƌLJ ƚŽ ũŽŝŶ ƚŚŝƐ ƐŵĂůů ďƵƚ ǀĞƌLJ ŚŝŐŚůLJ ƌĞŐĂƌĚĞĚ ďŽƵƟƋƵĞ ĐŽŶƐƵůƟŶŐ Įƌŵ͘ dŚĞ ŝĚĞĂů ŝŶĚŝǀŝĚƵĂů ǁŝůů ďĞ ĂƉƉƌŽdž͘ ϬͲϰ LJĞĂƌƐ WY ĂŶĚ ǁŝůů ŚĂǀĞ ƐƚƌŽŶŐ͕ ƌŽƵŶĚĞĚ ƚĞĐŚŶŝĐĂů ĞdžƉĞƌƟƐĞ ŝŶ ƚŚĞ h< ƉĞŶƐŝŽŶƐ ŝŶĚƵƐƚƌLJ͘ dŚĞ ŬĞLJ ƚŽ ƐƵĐĐĞƐƐ ŝŶ ƚŚŝƐ ƌŽůĞ ŝƐ Ă ĚƌŝǀĞŶ ĂŶĚ ĚĞƚĞƌŵŝŶĞĚ ĂƫƚƵĚĞ ĐŽŵďŝŶĞĚ ǁŝƚŚ ĞdžĐĞůůĞŶƚ ƉƌĞƐĞŶƚĂƟŽŶͬĐůŝĞŶƚ ĨĂĐŝŶŐ ƐŬŝůůƐ͘ džƉĞƌŝĞŶĐĞ ŽĨ ĂĚǀŝƐŝŶŐ ĐůŝĞŶƚƐ ŽŶ ^^ ^ ƐĐŚĞŵĞƐ ǁŽƵůĚ ďĞ ŚŝŐŚůLJ ĚĞƐŝƌĂďůĞ ƚŚŽƵŐŚ ŶŽƚ ĞƐƐĞŶƟĂů͘ džĐĞůůĞŶƚ ƌĞŵƵŶĞƌĂƟŽŶ ĂŶĚ ƐƵƉĞƌď ĐĂƌĞĞƌ ƉƌŽŐƌĞƐƐŝŽŶ ĂƌĞ ŽīĞƌĞĚ͕ ǁŝƚŚ ĞƋƵŝƚLJ ƉĂƌƟĐŝƉĂƟŽŶ Ă ŐĞŶƵŝŶĞ ƉŽƐƐŝďŝůŝƚLJ ŝŶ ƚŚĞ ĨƵƚƵƌĞ͘ ŽŶƚĂĐƚ͗ Ě͘ŚĂLJŶĞƐΛŝƉƐŐƌŽƵƉ͘ĐŽ͘ƵŬ dĞů͗ нϰϰ ϭϲϭ Ϯϯϯ ϴϮϮϮ

>ŽŶĚŽŶ KĸĐĞ͗ /W^ 'ƌŽƵƉ͕ ĞǀŝƐ DĂƌŬƐ ,ŽƵƐĞ͕ Ϯϰ ĞǀŝƐ DĂƌŬƐ͕ >ŽŶĚŽŶ ϯ ϳ: dĞůĞƉŚŽŶĞ͗ нϰϰ ϮϬϳ ϰϴϭ ϴϲϴϲ ŵĂŝů͗ ĂĐƚƵĂƌŝĂůΛŝƉƐŐƌŽƵƉ͘ĐŽ͘ƵŬ tĞďƐŝƚĞ͗ ŚƩƉ͗ͬ​ͬǁǁǁ͘ŝƉƐŐƌŽƵƉ͘ĐŽ͘ƵŬ dǁŝƩĞƌ ͗ Λ/W^'ƌŽƵƉh< >ŝŶŬĞĚŝŶ͗ /W^ 'ƌŽƵƉ ACT Rec JanFeb16.indd 41

January / February 2016 • THE ACTUARY 41 www.theactuary.com

26/01/2016 09:14

Appointments

PRICING ACTUARY $ JOREDO ULVN IXQFWLRQ DUH ORRNLQJ IRU D TXDOLþHG $FWXDU\ WR MRLQ WKHLU WHDP LQ WKH FLW\ RI /RQGRQ 7KH\ DUH VSHFLþFDOO\ LQWHUHVWHG LQ candidates who have a London Market Pricing background and the KXQJHU WR JHW LQYROYHG LQ RWKHU DFWXDULDO SURMHFWV VXFK DV &DSLWDO Modelling and Reserving . They can offer a generous package and the opportunity to be an integral part of a team that is growing through 2016.

b London

|

¸ Up to £135,000

|

­ PERMANENT

OUR SERVICES, YOUR ASSET Backed by practicing Actuaries, we’re the true general insurance recruitment specialists.

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42

RESERVING ANALYST £45,000 London Market

SENIOR PRICING ANALYST £55,000 London

CAPITA MODELLING MANAGER £100,000+ London

DATA ANALYST £40,000 London based

I am seeking Reserving Actuaries interested in working in the London market insurer. You will be assisting the primary Review to validate & communicate all key assumptions.

My client is a leading insurance group underwriting risks at Lloyd’s. Looking for someone who has passed 2+ CT Exams & has some exposure to Reserving.

Currently looking for Pricing Analyst with experience & exposure to motor Accounts. You’re also capable of controlling effective analysis & monitoring of competitors pricing.

You will need to have experience on Emblem & tools like SAS. I am looking for candidates with 2-3 years’ experience in an actuarial Analyst position looking to take the next step.

Looking for qualified/almost qualified actuaries with over 5 years’ experience in capital modelling & SII. The role will be supporting the GI Reserving & Capital Director In the coordination of the end to end Capital process engagement with the wider team. You ‘ll need great presentation skills as you will be conducting group led analysis to support reporting & engagement with business stakeholders.

Reporting into the Senior Product Actuary, you will be involved in system calculations of premium & benefit amounts. Signoff of policy and reinsurance systems.

Manage the premium calculation process.

Candidates must have 1-2 years actuarial experience as well as knowledge of working with Excel, Pivot tables, Access & Excel. London based with occasional travel to South Africa.

For a confidential discussion please contact Terry on 0207 621 3771 or t.tumba@darwinrhodes.com

For a confidential discussion please contact Bradley on 0207 929 7667 or b.doyle@darwinrhodes.com

For a confidential discussion please contact Bradley on 0207 929 7667 or b.doyle@darwinrhodes.com

For a confidential discussion please contact Clinton on 0207 621 3774 or c.poore@darwinrhodes.com

THE ACTUARY • January / February 2016 www.theactuary.com

ACT Rec JanFeb16.indd 42

26/01/2016 09:14

www.theactuaryjobs.com

Life ή͜​͜ ȋ͘Ȍ ͚͘͟ ͛​͛͟ ͠​͙͘͠ ̻ Ǥ Ǥ

Risk ή͜​͜ ȋ͘Ȍ ͚͘͟ ͚​͚͘ ͙​͙͛͘ Ǥ ̻ Ǥ Ǥ

̹ Risk ή͜​͜ ȋ͘Ȍ ͚͘͟ ͛​͛͟ ͙͚͚͘ ̻ Ǥ Ǥ

Life insurance roles £40k - £50k basic, London

Student Modelling Actuary

Ƥ Ǧ Ƥ Ǥ

ƥ Ǥ Ǥ Ƥ Ǥ ǣ ̻ Ǥ Ǥ ǣ ͙͙͘͘ £35k - £50k basic, Surrey

Strategy Consultant

Ǥ Ƥ Ǥ Ƥ

Ǥ ƪ Ǥ ǣ ̻ Ǥ Ǥ ǣ ͙͛͘͘

Interim CFO/FD (Actuarial)

£1000 - £1400 / day, 6 months, London

Ƥ Ǥ ǡ Ƥ Ǥ ǡ Ǧ Ǥ ǣ ̻ Ǥ Ǥ ǣ ͙͘͘͝

Solvency II Actuary

£800 - £1000 / day, 6 months, North East

͙͘​͘

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Ƭ

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£45k - £65k basic, Bristol

Consultant

ƥ Ǥ ǡ Ƥ ǡ Ǥ ǣ ̻ Ǥ Ǥ ǣ ͙͚͘͘

£65k - £75k basic, London

Life/ Pension Actuary

Ƥ Ȁ Ǥ

ǡ Ǥ

Ǥ Ǥ ǣ ̻ Ǥ Ǥ ǣ ͙͘͘͜

£800 - £1200 / day, 6 months, London

Investment Actuary

Ǥ Ǥ Ƥ Ǥ ǡ

Ǥ ǣ ̻ Ǥ Ǥ ǣ ͙͘͘͞

Financial Reporting Actuary

£600 - £800 / day, 6 months, South West England

Ƥ Ǥ Ǧ Ǧ ǡ Ǥ

Ƥ Ǥ ǡ Ǥ ǣ ̻ Ǥ Ǥ ǣ ͙͘͘͠

Risk roles £30k - £35k basic, London

Risk Analyst

Ǥ

Ǥ

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Risk Consultant

£40k - £90k basic, London

A small consultancy are looking for a number of Risk actuaries to join their Ǥ ơ Ǥ Ǥ ǣ ̻ Ǥ Ǥ ǣ ͙͛͘͘

£80k - £100k basic, London

Risk Actuary

Ƥ

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£60k - £90k basic, London

Financial Risk Manager

Ȁ Ƥ Ǥ

Ƥ Ǥ Ƥ Ǥ ǣ ̻ Ǥ Ǥ ǣ ͙͘͘͜

January / February 2016 • THE ACTUARY 43 www.theactuary.com

+44 (0) 207 337 8800 ACT Rec JanFeb16.indd 43

www.hfg.co.uk 26/01/2016 09:15

Appointments

HELP BRITAIN PROSPER WITH UNLIMITED CAREER DEVELOPMENT ACTUARIAL OPPORTUNITIES At Lloyds Banking Group, we put customers ďŹ rst, and we keep our products and services simple. Itâ&#x20AC;&#x2122;s this crucial ethos that ensures we will help Britain prosper â&#x20AC;&#x201C; and our teams are a key part of this vision.

Based in our vibrant Bristol ofďŹ ce, there are plenty of reasons why youâ&#x20AC;&#x2122;ll beneďŹ t from joining us â&#x20AC;&#x201C; from a ďŹ&#x201A;exible working environment to the chance to make a positive impact on the wider industry, this is a dynamic opportunity. But donâ&#x20AC;&#x2122;t just take our word for it â&#x20AC;&#x201C; listen to what the team have to say.

Jack is an Analyst in our Capital Modelling team. Working to ensure the company has enough capital to satisfy our policy holders and the regulator, he says: â&#x20AC;&#x153;My role genuinely matters. The work is interesting and weâ&#x20AC;&#x2122;re focussed on doing the right thing for our customers. Itâ&#x20AC;&#x2122;s fascinating being involved in such a strong brand.â&#x20AC;?

Katie, a Senior Actuarial Analyst in our Model Development team also loves her role. â&#x20AC;&#x153;I enjoy a really good variety of work and my colleagues are great. We work together to get the job done!â&#x20AC;?

So if, like Jack and Katie, youâ&#x20AC;&#x2122;re committed to ensuring our products are the best they can be, then we need to talk. Youâ&#x20AC;&#x2122;ll be involved in everything from setting assumptions and methodology, through to analysing results â&#x20AC;&#x201C; which will be a breeze for someone with your technical ability and excellent communication skills.

In return, youâ&#x20AC;&#x2122;ll enjoy a permanent role with an award-winning beneďŹ ts package that includes a contributory pension scheme and private medical insurance.

To discover a role that matters, contact us at

actuarialrecruitment@lloydsbanking.com

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

Â&#x2018;Â?Â&#x2030; Â&#x2014; GI Actuarial +44 (0) 207 337 8853 tong@hfg.co.uk

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

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

APAC Actuarial Assignments HKD $Negotiable Hong Kong

Consultant

My client, a global consultancy is expanding its GI team in Asia and is seeking a dynamic actuary with at least 4 years of relevant experience in performing advisory services on product development, valuations, capital, M&A, regulatory changes and pricing. The incumbent should demonstrate strong interpersonal and communicative skills, along aside a good track record of project deliverables within a short deadline.

For more information please contact: shuyu@hfg.com.sg REF: SL0101 HKD $Negotiable Hong Kong

Chief Actuary

A renowned global direct insurer is looking for a Chief Actuary to lead their growing Â&#x201E;Â&#x2014;Â&#x2022;Â&#x2039;Â?Â&#x2021;Â&#x2022;Â&#x2022; Â&#x2039;Â? Â&#x2022;Â&#x2039;Â&#x192;Ǥ Â&#x2021;Â&#x2019;Â&#x2018;Â&#x201D;Â&#x2013;Â&#x2039;Â?Â&#x2030; Â&#x2013;Â&#x2018; Â&#x2013;Â&#x160;Â&#x2021; Â&#x160;Â&#x2039;Â&#x2021;Â&#x2C6; Â&#x2039;Â?Â&#x192;Â?Â&#x2026;Â&#x2039;Â&#x192;Â&#x17D; ĆĽÂ&#x2026;Â&#x2021;Â&#x201D;ÇĄ Â&#x203A;Â&#x2018;Â&#x2014; Â&#x2122;Â&#x2039;Â&#x17D;Â&#x17D; Â&#x201E;Â&#x2021; Â&#x201D;Â&#x2021;Â&#x2022;Â&#x2019;Â&#x2018;Â?Â&#x2022;Â&#x2039;Â&#x201E;Â&#x17D;Â&#x2021; for the corporate actuarial and capital management of the Life Insurance Â&#x201E;Â&#x2014;Â&#x2022;Â&#x2039;Â?Â&#x2021;Â&#x2022;Â&#x2022; Â&#x192;Â&#x2026;Â&#x201D;Â&#x2018;Â&#x2022;Â&#x2022; Â&#x2013;Â&#x160;Â&#x2021; Â&#x201D;Â&#x2021;Â&#x2030;Â&#x2039;Â&#x2018;Â?Ǥ Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;ƤÂ&#x2021;Â&#x2020; Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x203A; Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160; Â&#x2022;Â&#x2013;Â&#x201D;Â&#x2018;Â?Â&#x2030; ƤÂ?Â&#x192;Â?Â&#x2026;Â&#x2039;Â&#x192;Â&#x17D; Â?Â&#x192;Â?Â&#x192;Â&#x2030;Â&#x2021;Â?Â&#x2021;Â?Â&#x2013; experience and possesses good Asian market knowledge is highly welcomed.

For more information please contact: christinac@hfg.com.sg REF: CC0101

Regional Pricing Actuary

44

HKD $600k - $1.2m basic Hong Kong

Senior Actuary

$Negotiable Singapore/Hong Kong

Â&#x203A; Â&#x2026;Â&#x17D;Â&#x2039;Â&#x2021;Â?Â&#x2013; Â&#x2039;Â&#x2022; Â&#x192;Â? Â&#x2021;Â&#x2022;Â&#x2013;Â&#x192;Â&#x201E;Â&#x17D;Â&#x2039;Â&#x2022;Â&#x160;Â&#x2021;Â&#x2020; Â&#x192;Â?Â&#x2020; Â&#x2030;Â&#x17D;Â&#x2018;Â&#x201E;Â&#x192;Â&#x17D; Â&#x2039;Â?Â&#x2022;Â&#x2014;Â&#x201D;Â&#x192;Â?Â&#x2026;Â&#x2021; ƤÂ&#x201D;Â? Â&#x2022;Â&#x2021;Â&#x2021;Â?Â&#x2039;Â?Â&#x2030; Â&#x192;Â? Â&#x2021;Â&#x161;Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2039;Â&#x2021;Â?Â&#x2026;Â&#x2021;Â&#x2020; Â&#x2019;Â&#x192;Â&#x201D;Â&#x2013;ÇŚÂ&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;ƤÂ&#x2021;Â&#x2020; Č&#x20AC; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;ƤÂ&#x2021;Â&#x2020; Â&#x201D;Â&#x2021;Â&#x2022;Â&#x2021;Â&#x201D;Â&#x2DC;Â&#x2039;Â?Â&#x2030; Â&#x2022;Â&#x2019;Â&#x2021;Â&#x2026;Â&#x2039;Â&#x192;Â&#x17D;Â&#x2039;Â&#x2022;Â&#x2021;Â&#x2022; Â&#x2122;Â&#x160;Â&#x2018; Â&#x2039;Â&#x2022; Â&#x2C6;Â&#x192;Â?Â&#x2039;Â&#x17D;Â&#x2039;Â&#x192;Â&#x201D; Â&#x192;Â&#x2026;Â&#x201D;Â&#x2018;Â&#x2022;Â&#x2022; Â&#x192;Â&#x17D;Â&#x17D; Â&#x17D;Â&#x2039;Â?Â&#x2021;Â&#x2022; Â&#x2018;Â&#x2C6; business in APAC. The incumbent should have at least 8 years actuarial experience Â&#x192;Â?Â&#x2020; Â&#x2039;Â&#x2022; Â&#x2026;Â&#x192;Â&#x2019;Â&#x192;Â&#x201E;Â&#x17D;Â&#x2021; Â&#x2018;Â&#x2C6; Â&#x2122;Â&#x2018;Â&#x201D;Â?Â&#x2039;Â?Â&#x2030; Â&#x2039;Â?Â&#x2020;Â&#x2021;Â&#x2019;Â&#x2021;Â?Â&#x2020;Â&#x2021;Â?Â&#x2013;Â&#x17D;Â&#x203A;Ǥ Â&#x2021; Č&#x20AC; Â&#x2022;Â&#x160;Â&#x2021; Â&#x2122;Â&#x2018;Â&#x2014;Â&#x17D;Â&#x2020; Â&#x2019;Â&#x2018;Â&#x2013;Â&#x2021;Â?Â&#x2013;Â&#x2039;Â&#x192;Â&#x17D;Â&#x17D;Â&#x203A; Â&#x2018;Â&#x2DC;Â&#x2021;Â&#x201D;Â&#x2022;Â&#x2021;Â&#x2021; Â&#x201E;Â&#x2018;Â&#x2013;Â&#x160; reserving and pricing responsibilities in the SEA region. Versatility is key.

For more information please contact: shuyu@hfg.co.uk REF: SL0102 SGD $180k - $220k Singapore

Head of Pricing

An internationally acclaimed Reinsurer is looking for Head of Pricing to lead a team for the South East Asia region. As a Senior Actuary, you will work with Business Development and Underwriting teams in providing technical advice for clientele in Â&#x2013;Â&#x160;Â&#x2021; Â&#x201D;Â&#x2021;Â&#x2030;Â&#x2039;Â&#x2018;Â?Ǥ Â&#x192;Â?Â&#x2020;Â&#x2039;Â&#x2020;Â&#x192;Â&#x2013;Â&#x2021;Â&#x2022; Â&#x2022;Â&#x160;Â&#x2018;Â&#x2014;Â&#x17D;Â&#x2020; Â&#x201E;Â&#x2021; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;ƤÂ&#x2021;Â&#x2020; Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x2039;Â&#x2021;Â&#x2022; Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160; Â&#x2022;Â&#x2013;Â&#x201D;Â&#x2018;Â?Â&#x2030; Â&#x2013;Â&#x2021;Â&#x2026;Â&#x160;Â?Â&#x2039;Â&#x2026;Â&#x192;Â&#x17D; Â&#x2019;Â&#x201D;Â&#x2039;Â&#x2026;Â&#x2039;Â?Â&#x2030; knowledge and good business acumen.

For more information please contact: christinac@hfg.com.sg REF: CC0102

Actuarial Students

HKD $250k - $550k basic Hong Kong

Looking for managerial experience and better salary? My client is urgently looking Â&#x2C6;Â&#x2018;Â&#x201D; Â&#x192; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;ƤÂ&#x2021;Â&#x2020; Â&#x2039;Â&#x2C6;Â&#x2021; Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x203A; Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160; Â&#x2022;Â&#x2013;Â&#x201D;Â&#x2018;Â?Â&#x2030; Â&#x2019;Â&#x201D;Â&#x2018;Â&#x2020;Â&#x2014;Â&#x2026;Â&#x2013; Â&#x2019;Â&#x201D;Â&#x2039;Â&#x2026;Â&#x2039;Â?Â&#x2030; Â&#x2021;Â&#x161;Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2039;Â&#x2021;Â?Â&#x2026;Â&#x2021; Â&#x192;Â?Â&#x2020; Â&#x2021;Â&#x161;Â&#x2026;Â&#x2021;Â&#x17D;Â&#x17D;Â&#x2021;Â?Â&#x2013; Â&#x2026;Â&#x2018;Â?Â?Â&#x2014;Â?Â&#x2039;Â&#x2026;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â? Â&#x192;Â?Â&#x2020; Â&#x2039;Â?Â&#x2013;Â&#x2021;Â&#x201D;Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2022;Â&#x2018;Â?Â&#x192;Â&#x17D; Â&#x2022;Â?Â&#x2039;Â&#x17D;Â&#x17D;Â&#x2022; Â&#x2013;Â&#x2018; Â&#x152;Â&#x2018;Â&#x2039;Â? Â&#x2013;Â&#x160;Â&#x2021;Â&#x2039;Â&#x201D; Â&#x201D;Â&#x2021;Â&#x2030;Â&#x2039;Â&#x2018;Â?Â&#x192;Â&#x17D; Â&#x2018;ĆĽÂ&#x2026;Â&#x2021;Ǥ Â&#x2018;Â&#x2014; Â&#x2122;Â&#x2039;Â&#x17D;Â&#x17D; Â&#x201E;Â&#x2021; leading a small team looking after multiple local business units and support regional head on various tasks. Â&#x2018;Â&#x201D; Â?Â&#x2018;Â&#x201D;Â&#x2021; Â&#x2039;Â?Â&#x2C6;Â&#x2018;Â&#x201D;Â?Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â? Â&#x2019;Â&#x17D;Â&#x2021;Â&#x192;Â&#x2022;Â&#x2021; Â&#x2026;Â&#x2018;Â?Â&#x2013;Â&#x192;Â&#x2026;Â&#x2013; Â&#x2013;Â&#x2018;Â?Â&#x2030;ĚťÂ&#x160;Â&#x2C6;Â&#x2030;ǤÂ&#x2026;Â&#x2018;ǤÂ&#x2014;Â? ÇŁ Í&#x2DC;Í&#x2122;Í&#x2DC;Í&#x2122;

I am searching for several high calibre Actuarial students with at least 2 yearsâ&#x20AC;&#x2122; experience in the life insurance industry to join a regional direct insurer in Hong Kong.

The client provides excellent training scheme and you will have the opportunity to be involved in various roles including reporting, capital management and product Â&#x2019;Â&#x201D;Â&#x2039;Â&#x2026;Â&#x2039;Â?Â&#x2030;Ǥ Â&#x2018;Â&#x201D; Â?Â&#x2018;Â&#x201D;Â&#x2021; Â&#x2039;Â?Â&#x2C6;Â&#x2018;Â&#x201D;Â?Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â? Â&#x2019;Â&#x17D;Â&#x2021;Â&#x192;Â&#x2022;Â&#x2021; Â&#x2026;Â&#x2018;Â?Â&#x2013;Â&#x192;Â&#x2026;Â&#x2013; Â&#x2013;Â&#x2018;Â?Â&#x2030;ĚťÂ&#x160;Â&#x2C6;Â&#x2030;ǤÂ&#x2026;Â&#x2018;ǤÂ&#x2014;Â? ÇŁ Í&#x2DC;Í&#x2122;Í&#x2DC;Í&#x161;

EA Licence Number: 14C7034

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

THE ACTUARY â&#x20AC;˘ January / February 2016 www.theactuary.com

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PENSIONS & INVESTMENTS NON-LIFE LIFE & HEALTH LEAD PRICING ACTUARY- SPECIALITY LINES

ALM/INVESTMENT/CAPITAL ACTUARY

London, up to £150k + benefits + bonus

London, £70k - £80k + benefits + bonus

A growing international insurer are currently seeking their first in-house actuary to be based in London. The role will report directly into the Group Chief Actuary and will be responsible for pricing across their speciality lines of business. The role will initially be stand alone, dealing directly with the underwriters. Candidates will be fully qualified with strong technical modelling skills.

Contact: Anthony.Hill@eamesconsulting.com | 0207 092 3287

A large insurer are looking for an ALM actuary with experience of investment strategy and capital management. This is an extremely varied role with projects centred around the transfer of risk, in relation to a host of different areas across the group.

Contact: Simon.Arthur@eamesconsulting.com | 0207 092 3242

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

REINSURANCE PRICING ACTUARY Bermuda, up to £120k+ benefits + bonus + relocation package A newly launched international reinsurer are currently seeking a qualified actuary to join their head office in Bermuda. The role will report directly into the Chief Actuary and will be responsible for reinsurance pricing across their property treaty, marine and energy lines of business. Candidates will have strong reinsurance pricing experience. Exposure to using CAT models will be an advantage.

Contact: Anthony.Hill@eamesconsulting.com | 0207 092 3287

If you are looking for your next career move or to discuss other opportunities get in touch with us today for a confidential discussion.

Contact: actuarial@eamesconsulting.com | 0207 092 3200

London | Zurich | Singapore | Hong Kong

eamesconsulting.com

SENIOR INVESTMENT ANALYST London £40k to £50k + benefits

Are you looking for a change from the routine? Do you have a head for pensions and a heart for people? The Pension Protection Fund could be the place for you.

At the PPF, we’re responsible for protecting millions of members of thousands of eligible pension schemes throughout the UK. We’re committed to our vision to protect people’s futures, and want individuals who can help us to achieve this vision.

The PPF is recruiting for a number of actuarial roles at different levels. All positions are suited to people with previous pensions or insurance experience (particularly in the annuities ¿eld) who are interested in broadening their knowledge base.

If you want the opportunities and responsibilities a £23 billion organisation offers while working in a stimulating, multi award-winning professional environment, apply now at www.latestvacancies.com/pensionprotection-fund

A fantastic opportunity for an Investment Analyst to take their career to the next level at this expanding consultancy. You’ll get involved in a variety of work and be provided with full CFA/ actuarial study support. In this role your responsibilities will include: • • • • • •

Handling the preparation of performance monitoring reports, including receiving and reviewing data from investment managers to ensure quarterly deadlines are met.

Assisting in the preparation of Statement of Investment Principles and Asset Liability Reviews.

Assisting in completion of asset transfers.

Liaising with clients and investment managers on data and administrative matters.

Assisting in the development of more junior members, by overseeing their preparation of work items.

Staying abreast with applicable regulatory bodies.

Investment Modelling, London (up to £60k + bonus) A quantitative and qualitative role for those with a genuine interest in research and investment modelling. You will need broad based knowledge of multi asset classes and application of macroeconomics to investment strategy. Strong VBA skills will be advantageous.

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

January / February 2016 • THE ACTUARY 45 www.theactuary.com

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Appointments CAREER OPPORTUNITIES AT QUEEN’S UNIVERSITY

Lecturer (Education) Actuarial Science

Ref: 16/104375

Queen’s Management School

M A K E YO U R TA L E N T M AT T E R M O R E .

Queen’s Management School enjoys an international reputation as a top UK management school and a first class research institute for the business sciences. The successful candidate will deliver actuarial and related modules on the degree programmes offered by the School. Applications are now invited for the above post, tenable from 1 May 2016 [or as soon as possible thereafter].

Part-qualified and Qualified Actuarial Consultants

Salary scale:

£34,576 - £50,702 per annum (including contribution points)

Closing date:

Monday 29 February 2016.

Nationwide

Please visit our website for further information and to apply online www.qub.ac.uk/jobs or alternatively contact the address below.

Informal enquiries may be directed to Dr Barry Quinn, telephone: 028 9097 4824 or email: b.quinn@qub.ac.uk

We can promise you some of the best training and development resources in the industry – including an average of 180 hours of study every year and access to more than 100 courses.

The University is committed to equality of opportunity and to selection on merit. It therefore welcomes applications from all sections of society and particularly welcomes applications from people with a disability.

Ready to take your career to the next level? Then it’s time to explore your options by contacting steven.okeefe@mmc.com / 07530 601 095.

Personnel Department Queen’s University Belfast

careers.uk.mercer.com

Belfast, BT7 1NN. Tel (028) 90973044 E-mail on personnel@qub.ac.uk

H E A LT H W E A LT H C A R E E R

Make waves

A Russell Group university: one of the UK’s leading research-intensive universities.

Enjoy the rewards of career progress in international insurance

If you’re looking to combine insurance knowledge with professional consultancy, consider the many benefits of career progress with BWCI, the leading actuarial consultancy in the Channel Islands.

We have a rapidly expanding consultancy team covering both life and general insurance, providing advice to corporate clients in the Channel Islands and internationally. We are looking for an actuary with insurance experience to take a leading role with current clients and help generate and support the planned future growth.

If you’d like to know more, we’d like to hear from you.

Laura Fawcett Call Alison Hawkinson on+44 +44(0)1481 (0)1481728432 728432ororvisit visitwww.bwcigroup.com www.bwcigroup.com

The work is challenging but the rewards are excellent. Generous pay and benefits are offered, together with a friendly working environment, tax advantages and the networking opportunities of working in the dynamic offshore financial community.

The work may be as interesting as the City: but the lifestyle is better!

A member of Abelica Global

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www.theactuaryjobs.com ACTUARIAL POST RECRUITER OF THE YEAR 2012 . 2013 . 2014 . 2015

We are delighted to welcome Ivan and Adam to Star. They both bring a wealth of experience in risk and actuarial recruitment, and are a great ďŹ t for our award-winning team.

Louis Manson, Managing Director

Ivan Clarke DIRECTOR - INSURANCE SEARCH Ivan has over 20 years of experience in executive recruitment, the last 13 of which have been focused exclusively on the insurance market.

He has a demonstrable track record of successfully managing senior level actuarial and risk assignments across diverse geographies.

Alongside his recruitment activity, Ivan is a regular contributor to the industry press covering topics such as Solvency II, telematics, predictive analytics and renewable energy.

M: +44 (0)7870 181 444 E: ivan.clarke@staractuarial.com L: uk.linkedin.com/in/ivanclarke

Adam Goodwin ASSOCIATE DIRECTOR Adam has over 10 years of actuarial and insurance risk recruitment experience obtained across all markets, covering permanent and contract assignments on an exclusive, retained and contingency basis.

He has successfully delivered candidates of all levels to clients in the UK and overseas.

Between 2008 and 2012, Adam specialised in the actuarial contractor market where he delivered teams of Solvency II consultants to multiple clients across actuarial, technology, risk, finance and programme management.

M: +44 (0)7584 357 590 E: adam.goodwin@staractuarial.com L: uk.linkedin.com/in/agoodwin1

VISIT WWW.STARACTUARIAL.COM NOW TO SEARCH MORE THAN

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CURRENT OPEN VACANCIES January / February 2016 â&#x20AC;˘ THE ACTUARY 47 www.theactuary.com

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Appointments

N ON - LI FE RI S K

N O N - L I F E L IFE R IS K P E N S IO NS I NVESTM ENT HEALTH EXCLUSIVE MANDATE - CHIEF ACTUARY

HEAD OF ACTUARIAL

HEAD OF PRUDENTIAL RISK

up to £180k + bonus

up to £170k package

£ excellent package

NON-LIFE LONDON

STAR2892

NON-LIFE SOUTH EAST

STAR2785

NON-LIFE MIDLANDS

STAR2983

We have been retained to identify a Chief Actuary for a leading P&C insurer. The initial focus will be on the pricing of its nontraditional motor book, and then on developing its Reserving and Capital team.

Leading insurer seeks a qualified actuary to take responsibility for the development and maintenance of appropriate actuarial controls and processes for its European insurance businesses.

Leading insurance group seeks to hire a qualified non-life actuary with a detailed understanding of financial and insurance risk management to provide prudential risk oversight for its general insurance business.

SENIOR ECONOMIC CAPITAL ACTUARY

PRICING EXCELLENCE

HOME PRICING MANAGER

£ excellent package

up to £75k + bonus + benefits

NON-LIFE LONDON

STAR2953

NON-LIFE MIDLANDS

up to £80k + bonus + benefits STAR2972

NON-LIFE SOUTH EAST

STAR2947

We are currently working on a fantastic opportunity for a qualified non-life actuary to be responsible for the production of the monthly and quarterly economic capital reporting within a major insurer.

Leading insurer is seeking a qualified non-life actuary with experience of managing a pricing or underwriting team to help shape the firm's pricing capability. Contact us now for more information regarding this fantastic opportunity.

Major insurance Group seeks a qualified non-life actuary to manage and support Product Development activities whilst taking the lead on the development of customer propositions, products and pricing strategies.

LONDON MARKET RESERVING

STATISTICAL MODELLING

NON-LIFE IN THE SOUTH WEST

£ excellent package NON-LIFE LONDON

up to £70k + bonus + benefits STAR2945

NON-LIFE SOUTH EAST

£ depends upon experience STAR2919

NON-LIFE BRISTOL

STAR2974

Global reinsurance firm has an exciting opportunity for a part-qualified or qualified non-life actuary to play a key role in supporting the development of the reserving processes within its Syndicate.

We are pleased to be working on multiple roles with a number of leading non-life insurers seeking candidates with deep statistical modelling experience, ideally gained within personal lines.

Growing non-life business seeks part-qualified or qualified non-life actuaries to work on cutting-edge pricing projects. Emblem experience would be considered an advantage.

MAXIMISE YOUR CAREER

ANALYSE IN THE CAPITAL

LONDON MARKET CAPITAL ANALYST

£ depends upon experience NON-LIFE LONDON

£ competitive + bonus + benefits STAR2961

NON-LIFE LONDON OR SOUTH EAST

up to £70k + bonus + benefits STAR2911

NON-LIFE LONDON

STAR2748

An incredible career development opportunity!

This role will reward a technically strong general insurance actuary (or part-qualified actuary) with a broad skill set.

Leading global business seeks to hire a highcalibre analyst with risk and capital expertise.

The successful candidate will have strong reporting and modelling experience; Igloo or London Market experience is advantageous.

Take this chance to work in the London Market as a part-qualified capital actuary. The successful candidate will be motivated to continue their own personal development and gain exposure in other actuarial areas.

INVESTMENT ACTUARY

SENIOR INVESTMENT CONSULTANT

NON-LIFE PRICING ANALYST

£ excellent package

£ excellent package

£ excellent + bonus + benefits

INVESTMENT NON-LIFE LONDON

STAR2950

An excellent opportunity has arisen for a part-qualified or qualified investment actuary to join a leading non-life firm. ESG or investment modelling or investment risk experience would be considered an advantage.

INVESTMENT SOUTH EAST

STAR2851

INVESTMENT BIRMINGHAM

STAR2970

Global financial services consultancy has a fantastic opportunity for a qualified investment specialist to develop and deliver customised solutions and advice for pensions risk management.

Major insurer has a fantastic opportunity for a part-qualified non-life actuary to join its pricing team where you will make an impact on the household line of business.

ASSET MANAGER ASSOCIATE DIRECTOR

FIDUCIARY ASSET MANAGER

£ excellent package

£ excellent package

STARVACANCIES INVESTMENT LEADERSHIP £ excellent package INVESTMENT NATIONWIDE

STAR2804

We are currently working on a number of investment leadership opportunities for talented qualified actuaries to join cutting-edge teams around the country.

48

INVESTMENT LONDON

STAR2959

Leading London Asset Manager has a fantastic opportunity for an actuary, CFA qualified or qualified-by-experience professional to be responsible for the management of client relationships across a broad range of services.

INVESTMENT LONDON

STAR2960

Leading Asset Manager has an unrivalled opportunity for a qualified actuary (or CFA) to join as an Associate Director, managing relationships with a focus on fiduciary management.

Antony Buxton FIA

Louis Manson

Irene Paterson FFA

Joanne O’Connor

MANAGING DIRECTOR +44 7766 414 560 antony.buxton@staractuarial.com

MANAGING DIRECTOR +44 7595 023 983 louis.manson@staractuarial.com

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

OPERATIONS DIRECTOR +44 7739 345 946 joanne.oconnor@staractuarial.com

Ivan Clarke

Lance Randles MBA

Paul Cook

Peter Baker

ASSOCIATE DIRECTOR +44 7889 007 861 lance.randles@staractuarial.com

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

ASSOCIATE DIRECTOR +44 7860 602 586 peter.baker@staractuarial.com

DIRECTOR - INSURANCE SEARCH THE ACTUARY+44 • January / February 2016 7870 181 444 www.theactuary.com ivan.clarke@staractuarial.com

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ACTUARIAL POST RECRUITER OF THE YEAR 2012 . 2013 . 2014 . 2015 DIRECTOR - PRODUCT DEVELOPMENT

DIRECTOR - BUSINESS DEVELOPMENT

LIFE ACTUARY - GROUP FUNCTION

£ competitive

£ excellent + bonus + benefits

£ excellent package

STAR2912

LIFE LONDON

STAR2922

LIFE LONDON WITH TRAVEL

STAR2895

Leading reinsurer has an exciting opportunity for a qualified life actuary to lead and deliver product innovation for the European business unit across both longevity and protection.

Leading global reinsurer seeks a qualified life actuary to identify opportunities to acquire new longevity reinsurance business. In this clientfacing role, you will manage treaty negotiation and implementation with clients.

Experienced life actuary sought to work in the group function of a large international provider.

The role will involve dealing with actuarial teams based in the UK, Europe and Asia.

RISK CALIBRATION ACTUARY

GROUP CREDIT RISK MANAGER

REINSURANCE - BERMUDA

£ excellent + bonus + benefits

£ excellent + bonus + benefits LIFE NON-LIFE SOUTH COAST

STAR2900

LIFE LONDON

BMD excellent STAR2924

LIFE BERMUDA

STAR2925

We are seeking a highly mathematical life or non-life actuary to work on risk calibration and methodology in both sectors. The work is highly project-based and will both nurture and enhance your technical skills.

Market-leading insurer seeks a talented individual to provide detailed review and challenge of credit risk profiles across the group.

Take this great opportunity to accelerate your professional development with a growing global reinsurer. Our client is seeking to hire a partqualified or qualified life actuary to support pricing, valuation and profitability analysis.

SYSTEMS ACTUARY - ASSET MODELLING

PRICING ACTUARY

SENIOR MANAGER OPPORTUNITIES

£ excellent package

£ excellent + bonus + benefits

LIFE LONDON

STAR2979

LIFE SOUTH OR SOUTH WEST

up to £95k + bonus + benefits STAR2865

LIFE BRISTOL

STAR2753

Our client is seeking a qualified life actuary to take ownership of the development, testing and documentation of the asset modelling within its firm.

Sitting within our client's pricing and technical team, this is a fantastic opportunity for a qualified life actuary to provide specialist pricing support to key stakeholders within the business.

Leading financial services group has a number of exciting opportunities for qualified life actuaries to play a key role in the design and delivery of changes to actuarial models, processes and systems.

PART-QUALIFIED MODELLING ACTUARY

ACTUARIAL AUDIT MANAGER

CAPITAL MODELLING EXPERT

£ excellent

£ excellent + bonus + benefits

£ excellent package

LIFE LONDON

STAR2944

LIFE BRISTOL

STAR2976

LIFE SOUTH EAST

STAR2981

Independent insurance consultancy is seeking a part-qualified life actuary to develop modelling software for the life market. The successful candidate will gain a good understanding of Economic Scenario Generation.

Leading insurer seeks a part-qualified or qualified life actuary to join its Internal Audit team where you will provide specialist independent review and insight over particular finance and risk functions.

Leading insurer has an exciting opportunity for a part-qualified or qualified life actuary with a detailed understanding of SII and economic capital principles to make an impact within its Capital Modelling team.

CAPITAL ACTUARY

PENSIONS ACTUARIAL OPPORTUNITIES -

PENSIONS MANAGER

up to £75k + bonus + benefits

£ depends upon experience

£ excellent + bonus + benefits

LIFE PENSIONS LONDON

STAR2969

Our client is seeking an ambitious partqualified or qualified capital actuary to join its high-performing team. This is an excellent opportunity to take up a role that opens doors to capital markets and the world of transactions.

PENSIONS SCOTLAND

STAR2952

Major professional services firm has a number of opportunities for part-qualified or qualified pensions actuaries with exceptional technical and communication skills to manage client relationships.

FOR MORE VACANCIES VISIT

PENSIONS MIDLANDS

Major professional services group has a fantastic opportunity for a qualified pensions actuary to take up a client-facing role, providing innovative solutions for both Trustee and Corporate benefits issues.

www.staractuarial.com

GROUP CAPITAL & ALM PENSIONS

PENSIONS SUPERSTARS

STRATEGY & VALUE MANAGEMENT

up to £50k + bonus + benefits

up to £80k + bonus + benefits

£ excellent + bonus + benefits

LIFE PENSIONS LONDON

STAR2937

Global insurance firm seeks a part-qualified or qualified life or pensions actuary with strong interpersonal skills. You will be responsible for preparing and delivering capital reporting in respect of its pension schemes.

PENSIONS LONDON

STAR2650

Seeking qualified pensions actuaries to advise companies on the management of their pensions costs and risks. You will have an understanding of pension scheme accounting standards alongside Pension Protection Fund levies.

LIFE BRISTOL

STAR2982

Leading insurance group is seeking a part-qualified or qualified life actuary to support analysis of commercial aspects of change, oversight of projects, and assessment of regulatory impacts on its business.

Jo Frankham

JJan Sparks FIA

Adam Goodwin

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

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

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

Clare Roberts

Carolina Emmanuel

Diane Lockley

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

SENIOR CONSULTANT +44 7495 564 958 carolina.emmanuel@staractuarial.com

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

ACT Rec JanFeb16.indd 49

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LIFE LONDON

January / February 2016 • THE ACTUARY 49 www.theactuary.com

26/01/2016 09:20

Appointments

The Rise in Demand for the Nat Cat Actuary We are the largest (J[\HYPHS ZLHYJO Ä YT globally with over 40 consultants, partnering with an international network of Insurers, Consultancies and 0U]LZ[TLU[ 4HUHNLTLU[ organisations. We have successfully guided the careers of Analysts through to Partners and Board level. Our L_WLY[PZL LUJVTWHZZLZ contingency, retained and executive search solutions MVY IV[O WLYTHULU[ HUK PU[LYPT WVZP[PVUZ

The role of the Actuary is key in the Catastrophe Modelling market, whereby the Actuary is essentially the conduit between several key stakeholders in the business, analysing and communicating RL` Ä UKPUNZ IL`VUK [OL ZWYLHKZOLL[

Here at Oliver James Associates we are seeing TVYL NSVIHS PUZ\YLYZ YL PUZ\YLYZ HUK IYVRLYZ recruiting for the Natural Catastrophe Actuary, in order to fully develop and enhance their current methods and systems for JH[ YPZR L_WVZ\YL HUHS`ZLZ As a result of increasingly frequent and severe natural catastrophe events, we have witnessed the Nat Cat Actuary position become much more visible in the last two to three years. The analytical skills held by an Actuary are best suited to provide the necessary oversight needed to price in a more competitive fashion, to optimise the underwriting value of the portfolio, and to manage and mitigate the cat risk exposure.

Last year, the World Economic Forum reported that less progress has been made against mitigating risks from natural disasters over the past 10 years than those against risks such as terrorist attacks or infectious diseases.

However, recent developments in catastrophe insurance appraise the likelihood of progressive reform within the UK/US insurance industry as a result of several recent announcements about innovative initiatives it aims to implement. One such example being the introduction of Flood Re this April.

The purpose of these initiatives is to engage with and help mitigate the enormous challenges posed by climate change. With greater surveillance from the regulator, insurers are undoubtedly under increased competitive pressures to protect their capital positions.

Hence, the spotlight is now Ä YTS` VU [OL 5H[\YHS *H[HZ[YVWOL Modelling Department to deliver VW[PT\T WYPJPUN WYVÄ [HIPSP[` HUK HKKLK ]HS\L [V PUZ\YHUJL Ä YTZ

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THE ACTUARY • January / February 2016

www.theactuary.com Oliver James Associates Financial & Professional Service Specialists

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www.theactuaryjobs.com

Although the Nat Cat Actuary is not a newly devised role, it is indeed becoming H IL[[LY KLĂ&#x201E; ULK UPJOL HZ I\ZPULZZLZ seek further robust thinking in their risk analysis.

0U[LYLZ[LK PU H 5H[ *H[ YVSL VY RLLU [V SLHYU TVYL& -VY HU VWLU HUK JVUĂ&#x201E; KLU[PHS JVU]LYZH[PVU LTHPS VY JHSS! Ross Anderson Managing Consultant G.I. Actuarial ross.anderson@ojassociates.com +44 207 649 9357

In a catastrophe exposed world with Ă&#x201E; LYJL JVTWL[P[PVU ^P[OPU [OL PUZ\YHUJL market, the Cat Modelling department is becoming central in making sense of how to analyse and measure risk T\JO TVYL HJJ\YH[LS` HUK WYVĂ&#x201E; [HIS` Essentially, how to do things better; establishing a best practice approach and adding value to the business as a whole.

Whatâ&#x20AC;&#x2122;s your view on the rise in demand for the Nat Cat Actuary? Tweet us @OJAssociates and let us know your thoughts.

9VILY[ .VYTSL` Managing Consultant G.I. Actuarial robert.gormley@ojassociates.com +44 207 310 8546

Head of Cat Modelling London <W [V Â&#x2030; )VU\Z )LULĂ&#x201E; [Z

Natural Catastrophe Actuary - Pricing London Â&#x2030; )VU\Z )LULĂ&#x201E; [Z

My client, a prestigious name in the London market, is currently seeking a senior individual to head up a young, talented team of Cat Modellers. The ideal individual will be comfortable managing and mentoring whilst still retaining a technical, hands on role.

My client is a leading light in the London market and requires a pricing led actuary / Cat Modeller for a ground-breaking R&D modelling role. You must have Nat Cat experience, and work with diverse stakeholders from underwriters and actuaries to scientists.

24,000

41

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77,000

GLOBAL CANDIDATES

OJ ACTUARIAL CONSULTANTS

LIVE ACTUARIAL VACANCIES

GLOBAL NETWORK

EXCLUSIVE JOBS Latest vacancies at

www.ojassociates.com Investment Consultant London Â&#x2030; )VU\Z )LULĂ&#x201E; [Z

International Chief Actuary - Pricing London Â&#x2030; )VU\Z 3;07: )LULĂ&#x201E; [Z

My client, a global consultancy, is seeking to appoint a talented Investment Consultant. You will implement and design investment strategy solutions for a plethora of high-calibre clients, and be responsible for presenting strategy proposals and developing investment WYVK\J[Z @V\ ^PSS IL H X\HSPĂ&#x201E; LK HJ[\HY` with at least 2 yearsâ&#x20AC;&#x2122; PQE, a background in consultancy, and a solid understanding of scheme liabilities.

EXCLUSIVE MANDATE: I have been assigned an executive level search for a well-known commercial risk carrier that has ambitious plans to grow their global insurance footprint. You will work as part of the exec management team â&#x20AC;&#x201C; get in touch for more details.

Group Capital Modelling London Â&#x2030; ,_JLSSLU[ )LULĂ&#x201E; [Z

Departmental Head - Reserving & Pricing London Â&#x2030; )VU\Z )LULĂ&#x201E; [Z

(U L_JP[PUN VWWVY[\UP[` MVY H 8\HSPĂ&#x201E; LK Actuary to join a multinational life insurer based in the City. The team is responsible for technical expertise in relation to Pillar 1 & 3 and ICA. The incumbent must have ZPNUPĂ&#x201E; JHU[ ^VYRPUN RUV^SLKNL VM :VS]LUJ` II and excellent communication skills.

This is a hugely exciting senior management opportunity to join an extremely innovative and dynamic organisation. You must have excellent London market reserving knowledge and demonstrable man management experience to make a successful application.

Clare Nash +44 207 649 9350 clare.nash@ojassociates.com Paul Francis +44 207 649 9469 paul.francis@ojassociates.com

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

January / February 2016 â&#x20AC;˘ THE ACTUARY 51 www.theactuary.com Oliver James Associates Financial & Professional Service Specialists

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Appointments www.the-arc.co.uk

The Actuarial Recruitment Company

A fresh approach

Risk Actuary London

General Insurance Circa £90K

Capital Analyst London

General Insurance To £60K

A major international specialist insurer is looking for a nearly qualified

Working in a small actuarial team for this Lloyd’s managing agency, this role

or qualified actuary to work closely with the Group CRO and specialise

will report to the Head of Capital and support all areas of maintenance,

in technical/actuarial risk management within the business. The role will

development and output of the internal capital model. The client is

be involved in areas such as exposure analysis, model validation, stress

looking for a part qualified actuary with an excellent academic record

testing, risk and control monitoring and reporting. The client is looking

and existing capital modelling experience ideally from a Remetrica

for a candidate with very strong communication skills as there will be

background. Strong communication skills and a good understanding of

alot of interaction with senior management. Ref: ARC26303

Solvency II and Lloyd’s are required. Ref: ARC26304

Pricing Actuary London

Reserving Actuary London

General Insurance To circa £80K

General Insurance £Excellent

This role for a nearly or newly qualified actuary will provide direct

Reporting to the Head of Reserving this role will support reserving

underwriting support for the property division of this London Market

across all business lines for this specialist insurance and reinsurance

insurer. The role will involve individual account pricing, rate making,

company. The role will include production of quarterly reserves,

rating model specification, portfolio analysis, outwards reinsurance

financials and Technical Provisions, development of new reserving and

support and other ad hoc pricing work. The client wants a proactive,

reporting tools and ensuring compliance with regulatory requirements.

ambitious and commercially focused individual with existing London

Previous reserving experience ideally from a London Market

Market pricing experience, ideally property. Ref: ARC26305

background is required. Ref ARC26306

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

52

THE ACTUARY • January / February 2016 www.theactuary.com

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