The Actuary May 2014 by Redactive Media Group

MAY 2014 theactuary.com

Interview: Evelyn Bourke

The magazine of the actuarial profession

The challenges facing the health and care industry

General Insurance Microinsurance in the developing world

Health and care An exercise in wellbeing

The Actuary

HEALTHY OPTIONS

Review One Million Years of the Human Story

Pricing income protection products in a gender-neutral world

May 2014

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Appointments

The next big thing. For more than 60 years, Milliman has helped clients identify the next trend and how it might affect them. With consultants in Europe, North America, and Asia, we can help you spot emerging events before they unfold and ready your business to face them.

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

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MAY 2014

Contents “It is vitally important that pricing and reserving actuaries keep abreast of both evolving market practice and medical advances”

UP FRONT

FEATURES

AT THE BACK

10 IFoA news

18 Interview: Evelyn Bourke

31 Book review

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

The CFO of Bupa sits down with Sarah Bennett and Richard Cohen to discuss gender diversity and the challenges facing the health and care industry

21 Health and care: An exercise in wellbeing

OPINION 5

Editorial Kelvin Chamunorwa believes collaboration is the best way to meet present and future challenges in health and elderly care

Letters Readers’ views on more maths, more risk and more vegetables

President’s comment David Hare says actuaries can oﬀer real support and expert guidance in challenging times

Soapbox Jules Constantinou sets out the next steps in solving the care conundrum

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

COVER: SCIENCE PHOTO LIBRARY

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Andrew Sykes and Colin Bullen explain why less is more for employers or insurers when designing wellness programmes

24 General insurance: Telematics

Tony Brooke-Taylor on The End of Ethics and a Way Back

34 Puzzles Try the latest cryptic crossword and Mensa puzzles for a chance to win Amazon vouchers

37 Student Jessica Elkin bids welcome to the new entrants of the Certiﬁed Actuarial Analyst qualiﬁcation

38 Appointments and moves

Paul Stacy and David Neave look at the impact of telematics on driving better management of loss ratios

26 Microinsurance: Challenge Africa Richard Leftley describes some of the issues facing microinsurance specialists operating in the developing world

28 Income protection: Cause and eﬀect Duncan Heald and Gerard Kennedy analyse the latest trends in income protection claims and the implications for insurers

ONLINE Investment: Emerging market debt Eugene Dimitriou looks at the investment opportunities for insurers

Pensions: Raising the real retirement age Joris Beernaert and Corine Hoekstra discuss how the Low Countries are rising to the real challenge

WRITER OF THE MONTH Andrew Sykes and Colin Bullen win a £50 book token for their feature on wellness programmes, courtesy of SIAS

May 2014 • THE ACTUARY www.theactuary.com

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Appointments

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

Visit www.theactuary.com 4

THE ACTUARY • October 2013 www.theactuary.com

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Opinion Editorial theactuary.com

Publisher Redactive Media Group 17-18 Britton Street, London EC1M 5TP +44 (0)20 7880 6200 Editor, Redactive ﬁnance division Mike Thatcher Publishing director Joanna Marsh Sub-editors Kathryn Manning Caroline Taylor News editor Vivienne Russell +44 (0)20 7324 2788 vivienne.russell@redactive.co.uk News reporter Judith Ugwumadu +44 (0)20 7324 2794 judith@redactive.co.uk Editorial assistant Tania Forrester tania.forrester@redactive.co.uk Sales manager Chris Dooley +44 (0)20 7880 8545 chris.dooley@redactive.co.uk Divisional director of digital and recruitment sales John Seaman +44 (0)20 7880 8541 john.seaman@redactive.co.uk

editor@theactuary.com

Internet The Actuary: www.theactuary.com Staple Inn Actuarial Society: www.sias.org.uk Institute and Faculty of Actuaries: www.actuaries.org.uk Managing editor Sharon Maguire +44 (0)20 7880 6246 sharon.maguire@redactive.co.uk Editor Kelvin Chamunorwa editor@theactuary.com Features editors Jeremy Lee, pensions, investment, ERM, banking Richard Purcell Richard Schneider, life, Solvency II, mortality/longevity, modelling and software

Collaboration is the way to meet the challenges of health and elderly care, says Kelvin Chamunorwa

Sonal Shah, GI, reinsurance, environment, careers (UK) Helen Lau, GI, reinsurance, environment, careers Contact: features@theactuary.com People/society news editor Yvonne Wan social@theactuary.com Student page editor Jessica Elkin student@theactuary.com Arts page arts@theactuary.com

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

Picture editor Akin Falope

SIAS representative Titas Bakanauskas

Production executive Rachel Young +44 (0)20 7880 6209 rachel.young@redactive.co.uk

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

Print Polestar Colchester

Healthy debate

Circulation 24,028 (July 2012 to June 2013)

Subscriptions For subscriptions from outside the actuarial profession, UK: £90 per annum/£8.50 per copy. Europe: £110 per annum, rest of the world: £130 per annum. Contact: Catherine Murray, The Institute and Faculty of Actuaries, Staple Inn, High Holborn, London WC1V 7QT. T +44 (0)20 7632 2100 E catherine.murray@actuaries.org.uk Students on actuarial science courses may join and they will receive The Actuary as part of their membership. Apply to: Membership Department, The Institute and Faculty of Actuaries, Maclaurin House, 18 Dublin Street, Edinburgh EH1 3PP. T +44 (0)131 240 1325 E membership@actuaries.org.uk Changes of address should inform the membership department as above. For delivery queries, contact: Rachel Young E rachel.young@redactive.co.uk Published by the Staple Inn Actuarial Society The editor, The Institute and Faculty of Actuaries and Staple Inn Actuarial Society are not responsible for the opinions put forward in The Actuary. No part of this publication may be reproduced, stored or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the copyright owners. While every effort is made to ensure the accuracy of the content, the publisher and its contributors accept no responsibility for any material contained herein. Important information for contributors to The Actuary By submitting content for publication you confirm that: (a) You (and/or other named contributors) are the sole author(s) of the content submitted; (b) The content you submit is original and has not previously been published (unless you specifically advise us to the contrary); (c) You haven’t previously licensed the use of the content you submit; (d) So far as you are aware, the content submitted will not infringe any third-party rights, be defamatory or in any way illegal. © SIAS May 2014 All rights reserved ISSN 0960-457X

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I recently attended a reception in London for financial services professionals where the keynote speaker was Nick Clegg, UK Deputy Prime Minister and Leader of the Liberal Democrats. Clegg’s address began with the obligatory electioneering, then he went on to speak about policy and his stance on whether the UK should remain part of the EU. He said he believed in a spirit of collective leadership within Europe for the benefit of the UK economy. Others argue that economic benefits can be achieved through trade agreements without being part of the Union and consequently losing other freedoms. We live in an increasingly international world – it was ironic that, in the same week as the reception, London was deluged by dust from the Sahara. A global, rather than a regional, perspective is imperative to tackle the challenges we face in areas such as climate change, crime and commerce. The proposed free-trade agreement between the EU and US certainly seems promising – it would boost not only the partners’ economies but those of other countries too. One of the biggest threats to the global economy over the long term is the ageing population. The cost of health and long-term care is already among the most significant in the budgets of governments and older people, especially in the developed world. Defusing the demographic time bomb will require collaboration across actuarial specialisms, creativity in new approaches to delivering and funding health and social care services and a change in attitudes towards older people in the workplace. The articles in this edition raise a number of pertinent issues around health and care and I hope they stimulate debate among readers. As features editor at The Actuary for the last two years, Sarah Bennett has worked tirelessly in her voluntary role, specialising in health and care. She has now decided to step down and focus on a new opportunity abroad. Sarah signs out by co-authoring an excellent interview piece with Evelyn Bourke, an actuary and CFO of Bupa (pg 18).

“In an increasingly international world… a global perspective is imperative to tackle the challenges we face”

Kelvin Chamunorwa Editor

JOIN US ON LINKEDIN www.linkedin.com/groups/Actuarymagazine-UK-Group-3751335

May 2014 • THE ACTUARY www.theactuary.com

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Opinion Letters to the editor editor@theactuary.com

Have your say online

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

Not more maths I would wholeheartedly agree with Rizwan Majeed Khan’s comments that many excellent mathematicians struggle with the later exams after conquering the heavily ‘mathsy’ Core Technical series (The Actuary, April 2014). Some brilliant mathematicians will never qualify as actuaries. I wouldn’t want them to. The work of a successful actuary is not restricted to producing numbers, spreadsheets and mathematical models. To be an effective professional and command the respect our qualification affords, an actuary needs many other skills. Communication is absolutely critical to making sure our technical work is understood, the risks we identify are appropriately emphasised and our analysis drives decisionmaking throughout the organisations we work in. The communications exam (CA3) attempts to capture this skill as do the Specialist Technical and Specialist Application exams. As a CA1 assistant examiner, I am often disappointed with the quality of responses from highly intelligent candidates who have clearly been very successful with the technical element but seem unable to apply logic with words rather than numbers. In my opinion, the new Certified Actuarial Analyst technical qualification recognises this skill set and adequately addresses this need. A suggestion for less emphasis on the other required skills and assertion that actuaries are truly mathematicians concerns me. I genuinely believe we are a whole lot more. Donna Cowell 4 April

Anti-selection and selective withdrawals The Profession regularly expresses its desire for the next generation of actuaries to be great communicators and leaders. Has it ever considered that this is incompatible with our qualification structure? When the expected time to qualification is between three and six years, many capable individuals don’t give the actuarial profession a second look and of those that do, a high proportion of the better communicators and more creative individuals drop out along the way. A colleague who is a former student put it to me recently that, “They design a system that requires you to have a limited social life for the five years it takes to qualify but expect confident alphamale types to emerge at the other side.” I would tend to agree. John Fitzgerald 15 April

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

THE ACTUARY • May 2014 www.theactuary.com

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Contract risk Regarding Ben Pring’s article ‘Illuminating the Age of Me’ about the possible future of underwriting (The Actuary, April 2014), my ﬁrst reaction was concern. There are already too many people watching our computers via advertising cookies and selling our personal data to anyone they wish. It now seems that more sophisticated surveillance may become possible. There’s also a contractual problem for insurance companies. Unlike proposal forms, there is no way in which (say) Twitter output can be regarded as part of a contract and, anecdotally, there is a lot of inaccurate information out there. If insurers draw wrong conclusions from social media, they will have no legal redress. Chris Grey 8 April

Spring greens and immortality This paragraph caught my eye in the recent newsletter from Guy Watson of Riverford organic farms: “It appears I am going to live forever. According to researchers at University College London, up to three veg a day decreases mortality by 14%, ﬁve by 29%, seven by 36% and seven plus by 42%. As I live and breathe the stuﬀ, I reckon I must be immortal. Maybe I should buy an annuity after all, just for the pleasure of getting one over on an insurance company. Will the actuaries now start asking how much cabbage you eat alongside how much you smoke and drink?” Clifton Melvin 11 April

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 June issue is 19 May 2014.

NEIL WEBB

29/04/2014 10:42

›

Opinion President’s comment

David Hare is the president of the Institute and Faculty of Actuaries

DAVID HARE

Time for discussion The writer Douglas Adams said, “I love deadlines. I like the whooshing sound they make as they fly by.” Unlike Mr Adams, I like to keep to my deadlines. Sadly, the final changes to my article last month did not make the print edition. So while the website carried the final version, many of you will not have seen that I wrote about my pleasure in chairing the inaugural IFoA awards dinner at the end of February. It was a lovely event, with awards and prizes presented for outstanding work in exams, research and developing the profession. A number of family and friends joined council members and senior IFoA executives to celebrate the achievements of these students and Fellows and I’m sure it will linger long in the memories of us all. I do hope that the incoming immediate-past president gets invited to the next one! Another topic also worth a mention is how our public affairs team responded to the press coverage of a recent paper on some IFoA critical illness research work. The coverage referenced the purchase of National Health Service data by SIAS as a “major insurance organisation” for commercial purposes. The initial article contained a number of factual inaccuracies regarding the status and objectives of the research, SIAS and the IFoA. The IFoA published a rebuttal, issued to all media, and requested corrections to factual inaccuracies. We also contacted MPs who had expressed an interest in care data, to provide them with background and information on the IFoA and the research we undertake. Ultimately, I believe we were able to navigate our way through the controversy and set the record straight; but there are clearly lessons to be learnt. Media interest in the work of actuaries is a good thing – but we want the facts to be right. If you are approached by a journalist to comment on matters that impact the IFoA, I urge you to follow the guidance set out in the code of conduct and to refer them to the IFoA public affairs team. The press has also had much to say about the surprise announcements affecting pensions in this year’s UK Budget. These changes could have a profound impact on what people do with their retirement savings and hence on the work of actuaries who advise them or support the financial services firms that provide appropriate products and

Actuaries can offer real support and expert guidance in these challenging times, says David Hare propositions. The IFoA has welcomed the changes and believes the government’s offer of free guidance will be critical to helping people make the right choices in retirement. But there are many unknowns and, as a profession, we can do much to inform the debate, not least in highlighting the challenges of longevity risk and the potential under-saving that could persist in this new era. We are currently considering what new research projects should be initiated to help move thinking forward in these areas. I know many in the profession have strong views on these issues, and I positively encourage the debate to rage amongst our membership. There is another area where I am keen to encourage debate, as the issues raised strike at the heart of what it means to be an actuary subject to professional regulation by the IFoA. Under the current proposals for Solvency II, there is no statutory requirement for the actuarial function to be undertaken by a qualified actuary. This is in stark contrast to the existing arrangements for life insurers where the actuarial function holder needs not only to be a Fellow, but also to have an

appropriate practising certificate. The role of the practising certificate regime is to help demonstrate that the holder has adequate experience and technical knowledge and that they can be considered a ‘fit and proper’ person for that role. As many of you will know, the IFoA Regulation Board is currently consulting on what professional requirements should be placed on those members who undertake some of the governance functions set out in the Solvency II regime. The consultation paper sets out a number of possible variations involving additional requirements on top of our existing membership categories. However, it also mentions the possibility of no additional requirements at all, with members performing these Solvency II governance roles simply being obliged to follow the Actuaries’ Code, relevant actuarial standards (whether produced by FRC or the IFoA) and, of course, the appropriate regulations and legislation. Please take the time to consider the consultation paper and respond to the questions. The Regulation Board is keen to hear from you. a

“We can do much to inform the debate, not least in highlighting the challenges of longevity risk”

May 2014 • THE ACTUARY 7 www.theactuary.com

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Opinion Soapbox

JULES CONSTANTINOU

A crossroads in care Last year on 11 February, the UK health secretary, Jeremy Hunt, announced that the recommendations of the Dilnot review into social care funding, which were published in the Fairer Care Funding Report on 4 July 2011, would be enacted in the Care Bill 2014. What followed was a unique collaboration between interested parties in the financial services industry and government. Guided by the Financial Services Steering Group, consisting of senior figures from both sides, a rapid review exercise was carried out to identify the potential for development of a private market to support the new capped-cost funding structure being introduced by the government in 2016. In January, the partnership between the government and the financial services industry was cemented when a Statement of Intent on Social Care Funding was signed by Norman Lamb, the minister for care and support, and Otto Thoresen, the director general of the Association of British Insurers. This has drawn support from many of the largest life insurers to work alongside government to create the environment conducive to the development of a private long-term care market following the passing into law of the Care Bill 2014 in April.

Jules Constantinou sets out the next steps in solving the care conundrum arrangements. Equally, as people value immediate over deferred consumption, they will opt for level pension annuities if at all, which will have an impact on the utility of DLAs and any other products or mechanisms designed to provide insurance in advance of people needing care. So people will call on their liquid savings, private and state pensions, welfare entitlements, the equity in their homes, the Universal Deferred Payment Scheme and their children’s assets to purchase care either directly or via the protection of an Immediate Needs Annuity.

Public awareness campaign The statement is the beginning It is important to put the Statement of Intent into context. It is a forward-looking document. It follows a rapid review last year that was not intended to be conclusive and which has identiﬁed areas for further research. The product ideas emerging from the rapid review (bit.ly/1gXVH2L) were the ‘quick wins’. The proliferation of pensions’ ideas set out bear testimony to the engagement of the pensions’ community in this debate for the ﬁrst time. However, there are other stakeholders, such as advisers, who could provide perspective and who may be closer to the needs of the public. This was evident in the poor response to Disability Linked Annuities (DLAs) by advisers and their clients in surveys by insurers during the rapid review. I would encourage more actuaries to become engaged in this next phase.

No single product solution This is a personal view that is founded on the premise that future levels of pensions will be lower as defined contribution pension schemes have replaced the ‘more generous’ defined benefit

However this utopian world, where people save more and then decumulate their assets as necessary post-retirement, will not occur without the issue becoming a matter of national debate. The public at large need to be made aware that the state will only pay once they have reached the £72,000 threshold. Moreover, the tariﬀ they pay may not correspond to that paid by the local authority, that they could conceivably pay more than the threshold for their care, that they will still be responsible for their food and accommodation, that the National Health Service will not be making a contribution and that without the necessary funding in place, their family may have to stop working to look after them. It is this awareness that has driven the emergence of private markets in Germany and Singapore to provide additional funding to plug gaps in state welfare provision.

Access to financial advice The complicated rules around entitlement to benefits, the postcode lottery evident in the different practices and assessments for care by local authorities, and the means test require families to seek financial advice in order to make the correct decisions. This is evidenced in the fact that each year, of the 55,000 self-funders, only 7,000 receive financial advice and only 1,200 insurance policies are purchased. The result of this inertia is an annual bill of £425m as self-funders turn to the local authority when their funds are exhausted. This is why the industry has lobbied for a requirement in the Care Bill 2014 for local authorities to signpost self-funders toward regulated financial advice. The rules around the means test need to be changed to incentivise the public to do the right thing and set aside funds for their social care funding, whether it is via an insurance product or by earmarking a portion of their pension funds or other savings. Currently, the means test rules encourage people to spend down, or pass on their assets to their children, to benefit from state funding. There is still a lot of work to do to bring about a functioning market and provide the public with the facilities they need to cater for their future care. But I am confident that a uniquely British solution will be found that may serve as an example to other nations. a

“The rules around the means test need to be changed to incentivise the public to do the right thing and set aside funds”

Jules Constantinou is chair of the Institute and Faculty of Actuaries Health and Care Board

THE ACTUARY • May 2014 www.theactuary.com

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TUESDAY 6 MAY

Liquidity risk Michael Ashcroft, KPMG and Graeme Wilson, LBG Staple Inn Hall High Holborn London WC1V 7QJ

PROGRAMME EVENT

Traditionally, liquidity risk has not required close management by life oﬃces. This is changing, with regulators giving the issue greater attention, and historically low interest rates and commoditisation of liquidity driving companies to less liquid asset strategies. We will discuss some of the fundamental principles of good liquidity risk management and practical challenges faced. Refreshments will be served from 5:30pm and the talk will start promptly at 6.00pm. There is no need to register in advance for this meeting and non-members are welcome. #SIASMay14

5.30pm start THURSDAY 22 MAY

Treasure hunt Covent Garden 6.30pm start

SOCIAL EVENT

On your marks… get set… go! This year’s mystery event is a treasure hunt around Covent Garden. Teams of five people should enter to compete. If you can’t find five people, don’t worry – we can allocate you to a team! Prizes will be awarded at the end along with the greatest treasure of them all: snacks at a nearby pub! Let the hunt begin! #SIASMay14 Ticket prices SIAS member: £12 Non-SIAS member: £16 SIAS will not offer refunds on tickets / entry fees after the payment deadline date. Refunds may be offered prior to the payment deadline date if we are able to re-sell the ticket / entry fee. Where a non-SIAS member ticket/fee is sold on to a SIAS member, only the SIAS member price will be returned. All refunds will be at the discretion of the SIAS Committee.

TUESDAY 3 JUNE

Projecting future mortality trends The CMI Mortality Projection Committee Time TBC Staple Inn Hall High Holborn London WC1V 7QJ

THURSDAY 19 JUNE

Bowling tournament tourn Locatio TBC Location 6:45pm at 6

PROGRAMME EVENT

Members of the CMI Mortality Projections Committee will lead a discussion of issues faced when projecting mortality improvements. This will include issues affecting the CMI Mortality Projections Model in particular, as well as issues affecting projection models more generally, including data quality, smoothing, treatment of cohort effects, and sensitivity to short-term experience. #SIASJun14

SOCIAL EVENT

This year has already got oﬀ to a rolling start and soon it’ll be time to be bowled over by this year’s SIAS bowling tournament! More details, along with prices and tickets, will be available on 26 May 2014. #SIASJun14

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

SHUTTERSTOCK

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

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

May 2014 • THE ACTUARY 9 www.theactuary.com

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News IFoA NEWS UPDATES FROM THE ACTUARIAL PROFESSION

Upfront Opinion CEO’s comment

Mixed response to pension plan

Derek Cribb explains how the Quality Assurance Scheme will beneﬁt all concerned

In his March Budget, chancellor George Osborne introduced changes to the way in which people can access their pensions at retirement. The new flexibility generated a great deal of positive media comment and a number of negative responses from industry commentators, including the TUC. The IFoA will be responding to the Treasury consultation ‘Freedom and Choice in Pensions’, which asks for views on a variety of topics, including the proposed pensions tax framework reform, its approach to helping people make informed choices at retirement and the burdens that changes to defined benefit schemes could have for scheme sponsors. Following the Budget, pensions minister Steve Webb also introduced a charge cap of 0.75% on default pension funds. While the cap made the headlines, it may be that the establishment of Independent Governance Committees will have more impact on the occupational pensions landscape. The ‘Better Workplace Pensions’ consultation issued by the Department for Work and Pensions follows on from these changes and the IFoA will be responding. To view the IFoA’s immediate media responses, go to www.actuaries.org.uk/news

QAS: a winner on every front Derek Cribb is the chief executive of the Institute and Faculty of Actuaries

Public confidence in the quality of actuarial work is vital to both commercial and professional success. That confidence is not just determined by individual actuaries, acting in isolation, but also by the environment in which they work. Organisations have a crucial influence on that environment, and therefore on the ability of our members to deliver high quality work, in accordance with their professional obligations. A key objective for the IFoA this year will be delivering the new Quality Assurance Scheme (QAS) – a voluntary scheme that will accredit organisations meeting the objectives set out in a new standard, APS QA1. This focuses on good practice in the development and delivery of actuarial work. By engaging at an organisational level, we open up a two-way dialogue and are giving employers a greater opportunity to influence regulatory developments. I believe that the QAS will play an important role in delivering our public interest duties. The independent assurance the scheme provides will not only help organisations demonstrate their commitment to good practice to clients, and indeed the wider public, but will also enhance their presence in what is a highly competitive market. Although the scheme is voluntary, we hope that employers will recognise its relevance and the benefits it offers to their business. Proportionate, targeted regulation is a key principle for the IFoA, and we must continue to ensure we take a balanced approach, mindful that disproportionate or unjustified regulatory intervention serves neither the public nor our members. I believe the QAS will help us to tread this fine line. This really is the time to act. I am proud of our self-regulatory status. I believe that this model, exercised responsibly, and subject to independent controls, allows us most effectively to serve the public interest relevantly and appropriately, in partnership with our membership. It is by engaging in projects such as the QAS that we are able to maintain our collective credibility and relevance as a modern and forwardthinking professional body, and profession, that properly places the public interest at its heart. To help refine our proposals we will be launching a pilot in June, and I look forward to reporting back the outcome to members. Should you have any queries about this initiative, please email stephanie.farrell@actuaries.org.uk

DEREK CRIBB

Pensions role in social care From 5.30 to 7.30 on 7 May at Staple Inn, the Pensions and Long-Term Care, Products Research Group will be presenting the findings of its research ‘How pensions can help meet consumer needs under the new social care regime’. This considers long-term care and pensions holistically in light of the new, more flexible, pensions regime announced in the March 2014 budget. The research offers a summary of the social care regime that is being introduced in 2015 and 2016, provides insights into care costs in the UK and the impact of the new care cost cap, and considers how existing and new pension and pension-based products could be used to help people save for potential long-term care needs. Places are limited, so to reserve your space please go to www.actuaries.org.uk/events

THE ACTUARY • May 2014 www.theactuary.com

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Vote for Honorary Fellows now Fellows and Associates were recently notiﬁed of their opportunity to vote in the Honorary Fellow elections. Honorary Fellows are a valued section of our membership and bring a wealth of expertise to the IFoA. We encourage members to exercise their vote in recognising the contribution of the six outstanding individuals proposed to be invited to join the IFoA as Honorary Fellows. The nominees this year are: ● Professor Wai-Sum Chan, professor of ﬁnance at the Chinese University of Hong Kong. In a distinguished career in actuarial science he has published research in leading actuarial and statistical journals. ● Dr Peter England. Regarded as a worldwide expert on stochastic reserving techniques, he has authored a number of important research papers and served the IFoA for many years on GIRO and research committees.

● Professor Karel Van Hulle, former head of

LCP’s Morrison named as IFoA president-elect

ethical standards. She is also a court assistant of the Worshipful Company of Actuaries. Morrison said: “I feel honoured and privileged to be given this opportunity by the Council. I look forward to working with our members across the globe to ensure that we continue to meet their professional needs, and maintain our reputation as a highquality, public-interest professional body.”

Fiona Morrison (pictured below), partner at Lane Clark & Peacock, has been elected as the next president-elect of the IFoA. She will take up the post in June 2014, when Nick Salter takes over the presidency from David Hare. She will then assume the role of president in June 2015. Morrison has been an active volunteer with the IFoA for many years, holding positions on Council and the Regulation Board, which is responsible for the IFoA’s professional and

insurance and pensions at the European Commission, now lectures at KU Leuven in Belgium and the Goethe University, Frankfurt. He is an academic member of the Insurance and Reinsurance Stakeholder Group of EIOPA and has played a key role in regulatory development in Europe. ● Professor Carol Jagger, AXA Chair in Epidemiology of Ageing at Newcastle University’s Institute for Ageing and Health. With a research interest in healthy life expectancy and other aspects of later life, she has served the IFoA for some years on the Mortality Research Steering Committee and through various other activities for the IFoA. ● Sir Philip Mawer, former chair of the IFoA’s Professional Regulation Executive Committee (PREC), now known as the Regulation Board. He was instrumental in the IFoA implementing

many of the regulatory projects that followed the Morris Review and overhauling the IFoA’s regulatory function, which was key to the long-term credibility of the IFoA. ● Professor Hailiang Yang, from the Department of Statistics and Actuarial Science at the University of Hong Kong. He has an eminent international academic record with a range of published actuarial research papers. Council strongly recommends a vote in favour of all of these nominees. Fellows and Associates will have received an email directly from the Electoral Reform Services with their access code for voting. It is therefore imperative (as with all elections, including Council appointments) that your contact details on the members’ section of the IFoA website are up to date. The vote closes at midnight on 11 May. Further details can be found on the IFoA’s website www.actuaries.org.uk

Joint WCA project supports actuarial education in Ghana Ian Rogers (pictured with students) of Aon Hewitt recently returned from Ghana, having taken part in the joint Worshipful Company of Actuaries (WCA) and IFoA project to support actuarial education in the country. The project provides volunteer lecturers to deliver sections of the programme for the MSc in Actuarial Science at the Kwame Nkrumah University of Science and Technology. The course is primarily distance learning, with video lectures and face-to-face sessions at weekends. The WCA and IFoA have been supporting the programme since 2013, and are grateful to the volunteers’ employers for meeting a share of the costs. More volunteers are visiting Ghana over the next few months and the project will need more volunteers in future. To get involved in the Ghana project, please contact neil.hilary@actuaries.org.uk

Spotlight on longevity Don’t miss the longevity exhibition at the Royal Society, which runs until 26 June. Entitled ‘Life Beyond Measure: A Short History of Longevity’, it presents books and manuscripts from the Royal Society and the IFoA. The exhibition casts a spotlight on longevity, looking at what and who has contributed historically to the extended lives we lead, the impact that living longer has on all aspects of our society and a consideration of what the future might hold. The exhibition is free and open on weekdays. For more details, or to book your place, go to bit.ly/Q7fZM5

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News IFoA NEWS UPDATES FROM THE IFOA

CAA: can your firm benefit? On 7 April, the IFoA launched the Certified Actuarial Analyst membership qualification (CAA) to candidates and employers around the world. Study material is now available for candidates, who can register on 21 May for the Module 0 exam in August. As the financial services industry evolves, the needs of employers are also changing. The CAA qualification has been developed through close consultation with employers of actuaries and other financial analysts. It is designed to meet increasing international demand for financial analytical skills, particularly in investment, insurance, pensions and risk management. In the UK, the qualification has been approved within the government’s Trailblazer apprenticeship scheme. This is an employer-led initiative and companies that include Aon, Barnett Waddingham, Grant Thornton, JLT, Mercer, Munich Re and Sun Life of Canada are leading the way in supporting the qualification. CAA will be fully integrated into our existing global regulatory, examination and membership systems. It will help public confidence by ensuring that those working in analytical and technical roles are doing so in an environment requiring regulatory oversight and continuous professional development. For up to date information, join our mailing list by emailing caa@actuaries.org.uk or view our web pages at bit.ly/1kY9qVD To see how your company and staff can benefit, email robert.jelly@actuaries.org.uk

EIOPA consults on SII standards The European Insurance and Occupational Pensions Authority (EIOPA) has invited market participants and (re)insurance stakeholders to give feedback on the first draft of Implementing Technical Standards (ITS) for Solvency II by June. ITS defines the processes for the approval of matching adjustment, ancillary own funds, undertaking specific parameters, internal models and special purpose vehicles as well as the joint decision process on group internal models. The IFoA’s Solvency II steering group will consider how best to influence the debate. EIOPA will send the ITS framework to the European Commission by 31 October 2015 for final endorsement, making it legally binding.

Regional focus: thriving in Yorkshire In the second of our Regional Focus series, Malcolm Slee, secretary of the Yorkshire Actuarial Society and muchtravelled speaker on professionalism skills, looks at why Yorkshire continues to be such a thriving regional society Yorkshire has had a strong actuarial base for many years and, in 1981, The Yorkshire Actuarial Society (YAS) was created to be a society for Students, Associates and Fellows. It is now a vibrant, thriving society. The membership base is centred on the York, Leeds and Harrogate triangle and there is a good mix of members, covering mutual insurers, proprietary life and general insurers, all the major consultancies, bespoke consultancies and one man/woman bands. The society aims to have seven or eight meetings a year, spread between York and Leeds, as well as an annual dinner where one of the IFoA’s presidential team is the chief guest. To maintain meetings at this level, the committee looks at all avenues in order to ﬁnd

potential speakers: ● inviting YAS members to prepare a talk ● inviting speakers from Life/Pensions/Risk conferences to present their papers ● approaching academics who lecture at local universities ● IFoA working parties ● IFoA staff ● speakers at other local meetings As an example of lateral thinking, a few years ago a lecturer at York University gave a talk to the Yorkshire Philosophical Society on epidemiology. This looked a good topic for us and he duly gave YAS a talk – throwing in a few more statistics than in the original! As a result of this talk, he was then asked to present it at a Momentum conference, providing a fantastic example of not only different areas working together but different professions. The society is open to all members of the profession, with the added bonus of no membership fee. If you are in the area, by all means come along to one of the meetings – we’d love to see you. Details of our events can be found on the main events page of the IFoA website or on the YAS page bit.ly/1iNPCl4

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EVENTS AND CONFERENCES Investment Strategy for Pensions: New Directions, Insights and Solutions 14 May Westminster

CIGI 20 May Royal College of Physicians, London For further information, visit: bit.ly/1eEoZOw

08.45-5.00 For more information, visit: bit.ly/1iMFJ7m

2014 IFoA Spring Lecture with Lord Robert Winston 15 May London We are delighted to announce that this year’s Spring Lecture will be delivered by Professor Lord Robert Winston. A world-leading expert in reproductive health, Professor Lord Winston’s recent research has gravitated towards genetics. He will question whether genetics can be a predictive indicator of health and life expectancy and the extent to which understanding the human

Health and Care Conference 2014 21-23 May Radisson Blu Edwardian Heathrow Hotel The Health and Care conference oﬀers a wide-ranging programme designed to cover all of the areas required by insurance industry genome has been useful, or professionals. Plenary speakers whether society should be focusing include Norman Lamb MP, minister on the broader issues of public of state for care and support; David health. This lecture is expected to Smith, economics editor of The be extremely thought-provoking. As Sunday Times; and an after-dinner with all IFoA lectures, the event will talk from BBC economics editor be available to view online. Robert Peston. For more information and to book For further information, visit: your place, visit bit.ly/1gVYlk6 bit.ly/1nmVYQz

Risk and Investment Conference 2014 1-3 June Hilton Hotel, Glasgow The theme of this year’s conference is ‘The New Normal’ and plenary speakers will include Richard Werner, University of Southampton, and Nick Leeson, former trader at Barings Bank. For further information, visit: bit.ly/1d1iPXY

Volunteer recognition parties 26 June London 10 July Edinburgh 10 November Birmingham As a thank you for all their hard work and dedication to the IFoA, we will be inviting all current volunteers to join us for drinks and canapés at one of our annual volunteer recognition parties. Invitations to follow.

Boost your CPD at the Pensions Conference 2014 Technical Sessions:

Professional Skills Training:

O Discussions around longevity

Session 1 – The (Scheme) Actuary as a Data Controller 19 June, 11.00 – 12.00 Ian Stevens and Keith Webster, Cameron McKenna

improvements with Aubrey de Grey from the Sens Foundation Research Centre and Daniel Ryan from Swiss Re O An interactive debate on

behavioural ﬁnance with a panel of top ﬁeld experts, including the conference speaker with the longest commute, Steve Vernon of the Stanford Center on Longevity

Professional Skills Training – how will you get yours?

Session 2 – The Actuary as an Expert 20 June, 11.00 – 12.00 Clare Caroll and Jennifer Miles, Eversheds; Simon Head, AonHewitt

Business Skills Sessions: O Gravitas and Levitas plenary session, Speak First O Finding out what is important, The Lazarus Consultancy

O We also have a variety of

innovative workshop sessions led by industry experts

If you put one date in your continuing professional development (CPD) diary this year, make sure it is for the annual Pensions Conference 2014, 18-20 June at the Radisson Blu Edwardian Heathrow Hotel. There are many reasons to attend this year’s conference, which will see leading experts from both within and outside the pensions industry come together to share cutting-edge ideas, encourage debate and deepen delegates’ knowledge in key areas aﬀecting the pensions industry. The conference commences on 18 June with our headline speaker, Sharon Bowles, MEP and chair of the European Parliament’s Economic

ALAMY/ GETTY

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O CSR in Action, Mark Williams, Towers Watson O The Rising Role of Social Media in Pensions and

Investment, Dawid Konotey-Ahulu and Dan Mikulskis, Redington and Monetary Affairs Committee. The first Briton ever to chair the committee, Bowles has been described as the most influential Briton in the development of European Union policy, and also as one of the top 10 most influential regulators in the European Union. She was shortlisted to be governor of the Bank of England in 2012 and was rated by Financial News as being in the top 100 most influential people in European finance in 2013. There are also plenty of opportunities to gain CPD and two one-hour Professional Skills training sessions to choose from. For more information, or to book go to bit.ly/1iivk6L

May 2014 • THE ACTUARY www.theactuary.com

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News People & Society

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

Overcoming 12-by-12 marathon adversity By Richard Hawkes Andrew O’Brien was due to run in the Seville marathon on 23 February but unfortunately had to pull out after developing a stress fracture in his left shin at the end of January. “I was having a few problems before I ran the Bermuda marathon and had a scan when I got back to the UK which showed the damage. The doctors told me that I’d have to stop running or risk the stress fracture developing into a proper break,” said Andrew. But he was determined not to give up. He enlisted the help of an ex-Team GB triathlete to help develop a non-impact training schedule

that would allow him to keep his ﬁtness levels up while giving his stress fracture time to heal. Working six days a week, Andrew was aqua jogging, spinning and cross-training while undergoing physiotherapy. “Because of the time spent out with the injury, I’ve had to rejig the races that I’m running for the rest of the challenge so that I can get the remaining four in before 21 June – meaning that 12-in-12 doesn’t become 12-in-13-in-2014,” said Andrew. The Georgia Marathon on 23 March was Andrew’s ﬁrst race since the injury

and his ninth in the past nine months. Finishing in just over 4 hours, this was an important psychological milestone for Andrew. Now with only three marathons to go, Andrew intends to stay strong and continue to draw inspiration from the strength of character and determination of people he met in Uganda. So far, Andrew has managed to raise £8,380 for the ISIS Foundation, just £1,620 short of his target of £10,000. If you are as impressed by his determination as we are, head over to his JustGiving page (https://www. justgiving.com/ISIS12in12) and make a donation, however small. Every penny counts for the people served by Kiwoko Hospital.

Received in style at Westminster By Robert Hails

Steve Webb agreed to host members of the livery and guests at the House of Commons

Arising out of a chance conversation in the autumn between the master and the minister for pensions, Steve Webb agreed to host a reception for members of the livery and their guests at the House of Commons. With the helpful assistance of Webb’s researcher, arrangements were swiftly made for a reception in one of the members’ dining rooms, with the option of a tour of the Houses of Parliament. A capacity crowd succeeded in passing through the airport-style security checks in place for visiting the Palace of Westminster and

gathered in the members’ dining room for tasty canapés and liquid refreshment. After a brief welcome from the minister, the keenest half of our number departed on the ﬁrst of the two 45-minute tours. We had expected to be able to see only the public areas of the palace, but the business of both the Commons and the Lords ﬁnished early enough to see the two debating chambers as well. The tour guide was very knowledgeable, the sights and surroundings were indeed splendid and it was fascinating to learn some of the less well-known facts regarding the recent and past history of Parliament.

Obituaries Derek Bond FIA died on 4 February 2014, aged 85. Derek spent virtually all his careerr with the Medical Sickness Society (MSS), now part of the Wesleyan Group. He joined MSS in 1945, following national service, and qualiﬁed in 1959, before becoming managing director in 1981. His tenuree oversaw the company move from London to Exeter in the 1980s. Derekk specialised in permanent health, writing papers and giving talks on thee di subject, as well as the odd TV and radio appearance. His paper was used for many years as part of the actuarial coursework. He was also active in helping the next generation of actuaries, providing tuition as well as marking exam papers.

Away from work he was a d devoted and active Christian, sserving as treasurer and cchurchwarden at several c churches. He also was an e extremely gifted violinist, p playing in many leading a amateur groups and o orchestras well into his 70s. Derek retired in 1988 as managing director, although he stayed on the board of directors for a few further i i he moved to Yorkshire with years. Af After retiring his wife. His last few years were sadly blighted by dementia. Derek leaves his wife Doreen, of nearly 60 years, and three children, Helen, Peter and Carol. By Peter Bond

Michael Burns died last November at the age of 88. He began his actuarial career in 1948, following St Paul’s School, Hertford College Oxford, and two years’ national service which he spent in the Patent Office. When he joined Equity & Law, the society was recovering from a weak financial position. He joined a team led by R J Kirton that steadily strengthened and expanded the business. Michael qualified as an actuary in 1955 and rose to become chief executive in 1974. The wide range of his managerial responsibilities included the development of operations on the continent. He maintained an extensive network of friends through the tradition of a dinner every four years for Equity & Law actuaries past and present. Michael served for eight years on the Council of the Institute. On the dinners committee, he used his expertise in fine wine and dining.

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LIKE US ON FACEBOOK www.facebook.com/ TheActuaryMagazine

Invite to the Master’s golf day All actuaries, actuarial students and their partners are invited to the Master’s Golf Day at the Effingham Golf Club – Guildford Road, Effingham, Surrey – on Wednesday 18 June. It is being organised by the Actuaries Livery Company and will consist of an 18-hole Stableford Competition with teeing off times from 1.30pm. Supper and prize giving will be at 7.15pm. Effingham is one of the finest courses in Surrey and has been an Open qualifier course for the past five years. We do hope you and your partner will be able to play. If you would like to take part, please contact Martin Miles who will email further details to you. Martin’s details are given below. Numbers are limited so don’t be long! For more information, contact

Martin Miles, Great Budds House, Mote Road, Shipbourne, Kent, TN11 9QD. Email: martinwmiles@yahoo.co.uk

Resistance a success By Jack Paton Heriot Watt’s Students’ Actuarial Society (SAS) held its annual conference on Wednesday 12 February. The SAS Conference is a unique opportunity for those who wish to gain an insight into the ﬁeld of actuarial work. It is attended by students, qualiﬁed actuaries working in the industry and prominent academics. The theme of this year’s conference was ‘Resistance’, aptly referring to the numerous new challenges faced by the modern rn actuary. The director of the conference, ence, Reshan Sivasamy, introduced each of

He brought other talents to bear whenn he was treasurer of the Institute. He enjoyed the company of actuaries through his membership of he several clubs and as a liveryman of the Worshipful Company of Actuaries. Away from the world of business,, icular, his greatest love was music, in particular, man of the choral music. He was also a liveryman Musicians’ Company and for over 50 years sang with the Goldsmiths’ Choral Union. Many of Michael’s relations, friends and former colleagues gathered for a thanksgiving service at the church in Kensington where he had worshipped for the past 30 years. Representatives of the Choral Union sang several anthems in celebration of Michael’s exceptional life well lived. By Christopher Brocksom

SAM KESTEVEN / SHUTTERSTOCK

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the speakers. The vice-president of SAS, Ben Bailey-Conlon, opened the conference with a speech reﬂecting on the wide range of successful events and social activities organised by the SAS. The president of SAS, Dean Robinson, gave a closing speech. There were over 100 students in attendance, marking the continued success the event has in generating interest from students. Overall, it was another very well-executed well executed conference. conf For the full article visit: bit.ly/PXrKVj

Deaths D M Robert ELLIOT died Mr r recently, aged 69. H became a Fellow of the He F Faculty in 1971. M Graham TITFORD died Mr recently, aged 92. He became a Fellow of the Institute in 1953. Mr Alan MAXWELL died recently, aged 57. He became a Fellow of the Faculty in 1983.

JOIN US ON LINKEDIN www.linkedin.com/groups/Actuarymagazine-UK-Group-3751335

Calling all actuaries in the UK public sector By Bill Rayner The Forum for Public Actuaries is an informal London-based discussion group. Both student and qualified actuaries in the public sector are welcome to attend – free of charge. Meetings are held on topics of specific interest to actuaries who work in, or alongside, government. They deliver CPD relevant to the sector, along with networking opportunities. The Forum was set up by Bill Rayner of the Government Actuary’s Department (GAD), founding chair for the first two years, and Martin Clarke of the Pensions Protection Fund (PPF), who has taken over as chair for a two-year term. With attendances averaging around 75 – drawn from the Financial Conduct Authority, the Financial Reporting Council, GAD, National Employment Savings Trust (NEST), PPF, Prudential Regulation Authority and the Pensions Regulator – the Forum’s informality has prompted active participation, irrespective of experience. Topics have covered all actuarial disciplines, and include: ● Approaches across the public sector to setting assumptions on mortality and longevity improvement ● Techniques for identifying, quantifying and mitigating risk ● Presentations by regulators and NEST, summarising respective perspectives on managing, and meeting, consumer expectations from investment products ● An interactive session with the minister for pensions, Steve Webb ● The theory and practice of valuing liabilities for Solvency II and the Institutions for Occupational Retirement Provisions (IORP) II ● Possible consequences of environmental and systemic limitations to long-term economic growth. If you are not already on the forum’s mailing-list, or are interested in making a presentation, please contact Lucy Currie

lucy.currie@ppf.gsi.gov.uk

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

May 2014 • THE ACTUARY 15 www.theactuary.com

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› GENERAL INSURANCE

NEWS ROUND-UP

BRICS countries ‘face heightened political risk’

Airline premiums decline The value of airline insurance claims has overtaken premiums for the ﬁrst time since 2010. Nevertheless, insurance prices are predicted to continue to fall this year, according to Aon Risk Solution’s annual report on the sector. Aon found that global lead hull and liability premiums for 2013/14 reached $1.4bn (£830m), but the value of claims stood at $1.5bn. The factors driving the fall in premium prices included strong underwriting competition, a small number of claims and record low fatality levels, Aon said. It suggested insurance premiums could continue to fall in the short term, given that 2013 saw the lowest numbers of both airline incidents and fatalities since 1995. Aon noted that the Malaysia Airlines ﬂight MH370, which disappeared on 8 March, carried more passengers (227) than the total global number of airline fatalities in 2013. This highlighted the potential for catastrophic loss the airline sector would always present. “At this early stage of the year, we believe it is unlikely that this incident will be a catalyst for a shift in current market conditions. However, should there be another large loss or a string of losses this could change,” said Aon. Aon expects competition to remain healthy for 2014/15 insurance programmes. See more at: bit.ly/1f9w3Iu

Motor cover at five-year low The average annual cost of comprehensive motor insurance cover in the UK has dipped below £600 for the first time in five years, according to a pricing index. Current premium levels, published by Confused.com together with actuaries Towers Watson, showed that the average annual comprehensive costs in the first quarter of 2014 fell by 7.5%. Over the past 12 months, average prices fell by £140 (19%) to £596. For third party, fire and theft policies, prices decreased by 18% to about £959. Towers Watson said the scale of reduction in comprehensive premium prices suggested a more cautious approach from motor insurers to developments in the market, such as implementation of the 2012 Legal Aid, Sentencing and Punishment of Offenders Act (LASPO), which included a ban on referral fees and restrictions on legal costs. The ‘LASPO’ effect was apparent within regional prices. Manchester and Merseyside, two areas that have been particularly associated with high numbers of third-party claims, saw the largest annual price cuts in the country – 23% between them. Stephen Jones, UK general insurance pricing leader at Towers Watson, said the Q1 2014 price reductions were sizable, even allowing for industry competition around this time of the year. See more at: bit.ly/1etvqnp

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All five of the emerging-market ‘BRICS’ countries – Brazil, Russia, India, China and South Africa – will face increased political risks this year, according to analysis by Aon Risk Solutions. Its quarterly 2014 Political risk map examined 163 countries and territories, measuring political risks such as violence, government interference and sovereign non-payment. Each country’s rating reflects a combination of analysis by Aon, Roubini Global Economics and the opinions of 26 Lloyd’s syndicates and corporate insurers actively writing political risk insurance. Aon’s map increased Brazil’s political risk score from last year’s ‘medium-low’ to ‘medium’ because of economic weaknesses, which had increased the role of the government in the economy. This was of particular concern given Brazil will host this year’s World Cup and the 2016 Olympics. For Russia, political risk was heightened by recent developments regarding Ukraine and the annexation of Crimea. Aon said political strains intensified Russia’s already weak operating environment for business and that currency exchange transfer risks had increased. India was moved up the risk scale from ‘medium low’ to ‘medium’ with legal and regulatory risks elevated by continuing corruption and high levels of political interference. Territorial disputes, terrorism and ethnic conflicts also increased the threat of political violence. China’s rating was changed from ‘medium’ to ‘medium high’ because of increases in political violence at a time of slowing economic growth. South Africa has been hit with recurrent strikes, which has changed its rating on the political risk map from ‘medium low’ to ‘medium’. See more at: bit.ly/1gTdjIB

ENERGY

Cyber threat

Willis warns of attack on energy industry

A new and “highly worrying” threat of cyber attack has emerged onto the energy insurance risk landscape, a global insurance and reinsurance broker has warned. In its annual Energy market review, Willis Group Holdings said the energy industry could be sitting on an “uninsured cyber-attack time bomb”. It said that, although insurance cover was readily available for noncatastrophic cyber-attack losses to data and intellectual property, it would be much more challenging to access cover for a truly catastrophic event involving physical loss, damage

or business interruption running into billions of dollars. Alistair Rivers, global head of natural resources at Willis, said: “Alarmingly, this risk is currently excluded from most energy insurance policy forms. “Although we can now detect the beginnings of a market for this critical risk, much more needs to be done to bring cyber, political violence and energy underwriting expertise together to forge a product that will truly meet the needs of the industry.” See more at: bit.ly/QAtwMv

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

REUTERS

29/04/2014 10:51

News Industry news@theactuary.com

HCA ordered to sell oﬀ hospitals following healthcare review

DWP halves auto-enrolment opt-out forecast

Concern at draft EU IORP directive

The Competition and Markets Authority has ordered private healthcare operator HCA Hospitals to sell one or more of its hospitals in central London as part of eﬀorts to increase competition and stimulate innovation in the insurance market.

The Department for Work and Pensions has slashed its forecast of how many people it expects to opt out of auto-enrolment from 30% to 15%. This equates to around a million more people saving in workplace pensions.

Reservations have been expressed over the proposed changes to the Europe-wide directive on the supervision of institutions providing occupational pensions. On 27 March, the European Commission published the draft of a version of the IORP directive, saying it would strengthen the internal market, increase cross-border provision and make IORPs better governed and more transparent. But Dave Roberts of Towers Watson said he was disappointed that proposals to ensure cross-border pension plans are fully-funded at all times had not been dropped. He said removing obstacles to cross-border provision of services could create signiﬁcant funding problems for some schemes in the event of Scotland leaving the UK. He also criticised the directive for failing to set out why action was needed at EU level. However, Nick Salter, president-elect of the Institute and Faculty of Actuaries, welcomed the lack of change to the area of ﬁnancial solvency for IORPs and the commission’s recognition that more work was needed in this area. For more on this story, visit bit.ly/1mCSVjE

The watchdog’s call follows a two-year investigation by the Competition Commission, one of the CMA’s predecessor bodies, into health insurers and private hospital operators across the UK. The CMA said HCA Hospitals owned over half of the available overnight private sector bed capacity in central London and charged significantly higher prices to insured patients than its closest competitor. HCA is required to sell the London Bridge and Princess Grace hospitals or the Wellington hospital. But HCA hit back saying the move would stifle innovation and was not in the best interest of patients. The group said it would “vigorously” challenge the CMA’s requirement in the courts. On the health insurance market, the CMA found that the two largest insurers – Bupa and AXA PPP – had significant buyer power, but there was no evidence that this was being exercised in a way that harmed competition. “Indeed, our view was that the incentive was on insurers to promote competition among consultants on price and quality and maintain innovation and quality to protect and improve demand for private medical insurance,” the watchdog’s report stated. For more on this story, visit bit.ly/1gTkpwB

Wheatley admits insurance review leak ‘not FCA’s finest hour’ The leaking of information on a planned insurance sector review “was not the Financial Conduct Authority’s finest hour”, its chief executive Martin Wheatley admitted. Following a briefing from a senior FCA executive, the Daily Telegraph revealed that the watchdog planned an inquiry into whether millions of pensions and savings policyholders were mis-sold products from the 1970s up to 2000. The story ignited speculation that the changes would affect the profitability of insurance products and led to shares in top insurance firms falling sharply. The FCA subsequently clarified its position, saying the exercise would focus on just a sample of policies. Commenting on the episode, Wheatley said: “This was clearly not the FCA’s finest hour but it does serve as a timely reminder of the importance to all parties involved in markets of the care and thought that is needed when handling the significant amounts of information we hold as a part of going about our day-to-day business.” The FCA subsequently appointed Simon Davis, partner at the law firm Clifford Chance, to conduct an independent inquiry into the communication of the supervisory work and draw out the lessons that can be learned. For more on this story, visit bit.ly/1ho0R76

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

bit.ly/1l6uXNG

European insurers ‘ready for Solvency II’ Almost 80% of European insurers expect to fully meet all Solvency II requirements before the January 2016 deadline, according to consultants EY. Its European Solvency II survey 2014 polled 170 insurance companies in 20 countries and found Dutch, UK and Nordic insurers were best prepared, while French, German, Greek and East European insurers were least confident. bit.ly/1ro6LXk

Face-to-face guidance preferred for pension advice More than two-thirds of pension savers want the free advice promised by the government to be delivered face-to-face. Research firm Consumer Intelligence found 69% of 1,000 adults polled said they wanted their options set out in a formal session with a qualiﬁed adviser. One quarter would be willing to use online services as long as human help was also available, but just 3% were willing to rely solely on online advice. bit.ly/1psTcdm

Recent retirees given longer to make decisions about pension pots People who have recently taken a tax-free lump sum from their deﬁned contribution pension will be given 18 months to decide what they want to do with the rest of their retirement savings, the Treasury announced. Previously, once a tax-free lump sum has been taken, individuals had just six months before they were required to either purchase an annuity or enter into capped drawdown. Failure to do either of these would mean any withdrawals would be taxed at 55%. However, HM Revenue & Customs guidance published in April increases the time people will have to make a decision from six to 18 months. Exchequer Secretary to the Treasury David Gauke said: “We recognise that the decisions people take regarding their pensions are important and take time. This extension to the decision-making period will give people the opportunity to take full advantage of the new ﬂexibilities introduced at the Budget.” Huw Evans, policy director at the Association of British Insurers, welcomed the HMRC guidance calling it “pragmatic and realistic”. For more on this story, visit bit.ly/1hrfTot

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On my agenda features@theactuary.com

Evelyn Bourke sits down with Sarah Bennett and Richard Cohen to discuss her current role as CFO of Bupa, gender diversity, and the challenges and opportunities facing the health and care industry

THE ACTUARY â&#x20AC;˘ May 2014 www.theactuary.com

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Feeling

on topof the

World

We are ushered into a meeting room at Bupa House in central London, having managed to secure some time in Evelyn Bourke’s busy schedule. Slight in stature, she stands out in many ways, speaking with passion, confidence and authority in a distinct Irish accent. Pursuing an actuarial career straight from school, Bourke was one of the first two women to qualify as an actuary in Ireland. Since then, she has navigated her way through various actuarial and business roles to become chief financial officer of Bupa. Actuarial training had largely equipped her with the necessary skills for a CFO’s role at a financial services company. But, she points out, this was not a passport in itself and she firmly believes that good people management and communication skills, and an ability to influence and shape agendas, are key to success in a senior role. Bourke admits it was not easy to move to Bupa from a long-term insurance background. “Although the business is not as actuarially intense and is easier to navigate from a measurement perspective, the strategic challenges are multi-dimensional because of operating in provision of healthcare as well as in pure health insurance.” She is well aware that healthcare is a political issue, with wider society being more present in what you do. “People’s health feels more immediate to them,” she says. The changing face of the actuarial community, with more women moving into the profession, is a source of pride for Bourke. She acknowledges that this is also changing at more senior levels but is pragmatic in her expectations that “this is largely cohort-driven and an artefact of historic influences”. Her expectation is this will change in future. Bourke also sits on the board of Opportunity Now, an initiative by Business in the Community to promote gender

MANUEL VASQUEZ

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diversity in the workplace. The organisation is in the ﬁnal stages of research into what gets in the way of career progression for women, and how to balance the juggling act of starting a family and pursuing a career. The Opportunity Now Report, Project 28-40, has since been published (bit.ly/1jyKGV5). “It is a matter for employers to consider what else they can do to facilitate women staying connected to the workplace and not dropping out completely,” says Bourke. “This is so that when they want to take on a higher level of participation they are able to do so, and their skills are current; they have the networks and are still connected to what the business is doing.”

Taking chances Bourke says her advice to young actuaries would be: “Believe in yourself, have the confidence to go and try new stuff. Take chances, take risks, take on a role that you are not 100% qualified for just yet.” She believes she benefited hugely from the varied experiences over the course of her career and that these helped her “develop a high tolerance for uncertainty, ambiguity and unpredictability”. In particular, her time spent working for Tillinghast (now part of Towers Watson) as a consultant gave her the skills to move on to new projects with ease, plus the ability to identify problems and to work toward solutions. “Anyone who aspires to a senior executive career should understand what it takes to run the different functional parts within a business as this knowledge will prove invaluable,” she advises. When Bourke starts talking about Bupa, her passion for the company is evident. She cites the little-known fact that Bupa was founded by an actuary, Andrew Rowell, who

May 2014 • THE ACTUARY www.theactuary.com

29/04/2014 10:52

On my agenda features@theactuary.com

“Bourke views the changing face of the actuarial community with pride, with more women moving into the profession” oversaw the opening of the business in 1947 and who later became the centenary president of the Institute of Actuaries and was eventually knighted. In the face of the formation of the National Health Service, Rowell championed a national association of all provident societies that would operate as a united scheme for the whole country. Bupa was formed to “prevent, relieve and cure sickness and ill-health of every kind” by the merger of 17 provident associations. Bourke relishes the global reach of the business, believing that “despite the current economic and regulatory environment, health and care companies have a great future, particularly where they are uniquely positioned in both the funding and provisioning of healthcare services”. She acknowledges that the role of CFO has changed over the past five years, largely by embracing the risk agenda. The role has progressed from one focused on financial performance to one that requires a CFO to identify risks with the aim of aligning their strategic consequences with consideration of economic capital. It is her belief that managing risk is integral to the successful and sustainable performance of any company and that an organisation cannot manage the risks it faces unless senior management embraces this. It is no longer acceptable to focus on performance only and there are many examples where companies have made good profits which turn out to be unethical or unsustainable. For Bourke it is about “sustainable profitability underpinned by strong risk management based on durable customer relationships”. The UK is one of the most regulated individual markets in which Bupa operates as a result of the dual regime of regulation with a solvency and prudential perspective, and a conduct perspective. Bourke recognises how easy it is to complain about the intrusiveness of the regulator, but is very clear that it is best to proactively demonstrate strong governance and the fair treatment of customers in order to prevent any requirement for the regulator to intrude. Another key challenge for the private medical insurance industry in the UK is affordability and Bourke believes that the core indemnity product is becoming increasingly expensive. This is exacerbated by the fact that medical cost inflation can run at a level twice that of Retail Price Index inflation if left unchecked. The success of companies in the industry relies on their ability to launch products that are more affordable. Only through continuous engagement with customers will these products become available. Without reaching more customers there is a risk the private medical insurance market will be unsustainable. Bourke talks us through the various approaches to cost management

available to a private medical insurer, including improved contracting with hospitals and provider groups, ensuring compliance with existing contracting and ensuring that the recommended treatment is appropriate. “It is not our job to second-guess clinicians but it is unquestionably the case that there is a lot of over-treatment. This is well-documented in the US. In the UK it is not at that level, but left unchecked there is scope for it to get to there,” she says. She is also aware how important it is to manage all aspects of healthcare financing to ensure an affordable and appropriate level of care is provided for members. Bourke believes that the recommendations proposed by the recent Competition and Markets Authority report into the private healthcare market are promising, “They offer the potential for better outcomes for customers, clinicians and hospitals. The prize would be to make private healthcare more affordable.” (See final report: bit.ly/1iwmHmM.) Another key but complex opportunity facing the health and care market in the UK is the growing population of older people and the ability of the government and families to provide care for them. Bourke is clear that the current system is not effective. “In our care homes business, about 70% of our residents are local-authority funded. We are experiencing an adverse pincer movement where on the one hand local authorities are driving fees down where they can, and on the other hand the system is delaying entry into care to the latest possible point. This means when frail and elderly people arrive in our care homes they need more intensive specialist nursing care, so the costs per patient day are driven up.” She admits it is a difficult balancing act to get right. The Dilnot commission has raised the profile but more work needs to be done to find long-term solutions. “We need more radical solutions. But it’s a huge societal issue and the best thing you can do is stay healthy for as long as possible.” Bourke believes that companies are uniquely placed to learn from international markets. The UK might learn from the accommodation bond concept in Australia or care villages in New Zealand.

Diverse experiences Asked about her own career development, Bourke readily admits to getting her ‘university fix’ while doing her MBA at London Business School at the age of 32. While not looking to change industry, she believes that LBS gave her access to a breadth of experience and significantly enhanced her confidence. “Sometimes you wonder whether, because you are in the insurance industry all the time and are looking at the world from that perspective, it might be restrictive,” she says. “The diversity of topics, intensity of teaching, a university setting, and the people you meet from diverse backgrounds is unique.” As our time ends, we catch a glimpse of how important it is to Bourke to maintain a work-life balance and of her future aspirations. She likes to travel with her partner of over 20 years, Seamus, also an actuary, making use of London’s proximity to continental Europe for weekend getaways. In the future Bourke sees herself taking on non-executive directorships in different industries. “I value the contribution of a fresh perspective that can be made by a non-executive director, in particular the rich functional expertise they can bring.” a

MANUEL VASQUEZ

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29/04/2014 10:52

Health and care Wellbeing features@theactuary.com

AN EXERCISE IN WELLBEING Why do so many wellness programmes fail? Certainly looking at the US experience, despite 30 years of effort at improving population health and thousands of wellness companies offering all sorts of solutions, the health of the average US citizen is still poor compared to what it could be. The same is true for many countries around the world. We all know we should be offering better programmes, motivating employees, addressing areas of wellness like smoking cessation, stress management, healthy eating, financial fitness, work-life balance and others. More is required but with a small and reducing budget. No wonder we are failing. But what if that assumption is wrong? What if we are better served by less, not more? The average employer has a very limited budget for wellness programmes (despite the irony that over 70% of sick care costs are driven by health habits). We would all like to see that budget increase, but what could we do to make the absolute best of what we have? We believe the answer might be to do only one thing, and do it very, very well. That one thing is exercise. But why? There are many things that don’t add much value in wellness programmes. Yet we spend money on them year

GARY WATERS / IKON

p21_23_may_wellness.indd 21

Andrew Sykes and Colin Bullen explain why less is more for employers or insurers when designing wellness programmes

May 2014 • THE ACTUARY 21 www.theactuary.com

29/04/2014 10:53

“Exercise prevents – or treats – more conditions than any single medication, therapy, procedure or medical intervention. We know that at least 45 diseases are less likely to arise, or be less severe or costly, for those who are fit”

after year, somehow hoping that this year they will have an impact they have never had before – if we’re even evaluating the impact. Health risk assessments, biometric screenings, biggest loser competitions, and smoking cessation programmes are just a few examples of money spent for little, if any, return beyond the cost of the programme. It is not that quitting smoking does not produce results – it is that the cessation programmes do not have very high success rates. The same goes for programmes focused on other habits. We know that almost everyone should be exercising, including those (with appropriate direction from their physicians) who are suﬀering from chronic diseases or who are in recovery from most medical procedures. We know this, and yet at least 40% of people don’t do any exercise at all. Perhaps as many again exercise insuﬃciently to meet the basic guidelines. Although a few people will change their habits in response to, for instance, knowing their numbers, sadly the vast majority of people will seek drug therapy to address high cholesterol, high blood pressure and other risk factors under the guidance and support of their personal physician. Worse still, once on drug therapy, people are often less motivated to change their health habits, believing that the drugs will now take care of the problem.

Almost everyone should be exercising. It is the most important element of wellness programmes and needs to be prioritised

Not all health habits are equal Why focus on exercise rather than the whole range of wellness initiatives? Surely the obesity and diabetes epidemics are more pressing, expensive problems to address? Well no, they’re not, and here is the evidence. Exercise prevents – or treats – more conditions than any single medication, therapy, procedure or medical intervention. We know that at least 45 diseases are less likely to arise, or be less severe and costly, for those who are fit versus unfit. Exercise treats or prevents depression, chronic pain in multiple sclerosis, headaches, impotence, heart disease, high blood pressure, diabetes and many other diseases, often (though not always) more effectively than the leading drug in each therapeutic class. Exercise works very quickly. According to the Physicians Committee for Responsible Medicine in Washington DC, over 90% of patients on oral diabetic medications and 75% of patients on insulin were able to get off their medications after 26 days on a proposed diet and exercise regime. Hang on, did that say exercise and diet? Yes. However, people who exercise: ● Have greater willpower to resist the temptation of unhealthy food. Exercise improves heart rate variability (a good thing), reduces cravings, boosts willpower and increases persistence with new tasks – persistence being an important element of eating a healthy diet

THE ACTUARY • May 2014 www.theactuary.com

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ANDREW SYKES is chairman and COLIN BULLEN is a

consultant at Health At Work Wellness Actuaries.

REFERENCES online.wsj.com/news/articles/ SB124476804026308603 ■ Health, United States, 2012. www.cdc.gov/ nchs/hus.htm ■ Schoenborn CA, Adams PF, Peregoy JA. Health behaviors of adults: United States, 2008–2010. National Center for Health Statistics. Vital Health Stat 10(257). 2013. ■ Dwyer-Lindgren, L, Freedman, G, Engell, RE, Fleming, TD, Lim, SS, Murray, JL & Mokdad, AH (2013) Prevalence of physical activity and obesity in US counties, 2001–2011 Population Health Metrics 11(7) ■ Count by Health at Work Wellness Actuaries based on variety of research articles. See also: en.wikipedia.org/wiki/ Neurobiological_effects_of_physical_ exercise ■ Cardiorespiratory Fitness and Metabolic Risk, Scott M Grundy, Carolyn E Barlow, Stephen W Farrell,Gloria L Vega, and William L Haskell. Cooper center longitudinal study ■ www.fitnessblender.com/v/article-detail/ Stop-Smoking-Exercise-Plan-HowExercise-Can-Help/be/ ■ California Physical fitness test, 2004 results, calf dept of ed April 2005. Also www.cooperinstitute.org/pub/news. cfm?id=71 ■ news.illinois.edu/news/10/0915_brain_ development_and_fitness_art_kramer.html ■ www.newsweek.com/can-you-build-betterbrain-66769 ■ Hung, T-M, Tsai, C-L, Chen, F-T, Wang, C-C, & Chang, Y-K (2013). The immediate and sustained effects of acute exercise on planning aspect of executive function. Psychology of Sport and Exercise, 14, 728–736. ■ Winter, B, Breitenstein, C, Mooren, F C, Voelker, K, Fobker, M, Lechtermann, A, … Knecht, S (2007). High impact running improves learning. Neurobiology of Learning and Memory, 87, 597–609. ■ Hung, T-M, Tsai, C-L, Chen, F-T, Wang, C-C, & Chang, Y-K (2013). The immediate and sustained effects of acute exercise on planning aspect of executive function. Psychology of Sport and Exercise, 14, 728–736. ■ Colcombe, S, & Kramer, A F (2003). Fitness effects on the cognitive function of older adults. Psychological Science, 14(2), 125–130. ■

● Have increased energy, the core source of motivation to put other healthy habits into action ● Sleep better, which helps with appetite control for up to three days following a good night’s sleep We’re not saying a good diet is not important, just less important. Remember, most companies have a limited budget and are trying to maximise their return. The least fit 20% of people have five times the prevalence of diabetes compared with the fittest 20%, but the apparent range based on nutrition habits alone seems to be narrower. Since we can’t afford to do everything, we should focus on those things that will have the greatest impact. The impact on other health habits from exercising is not limited to diet. Starting or increasing exercise is one of the most effective ways to quit smoking. Exercise is the ‘gateway habit’ to other good habits. The fittest 20% of people include only 5% of smokers, while the least fit 20% include over 30%.

Exercise drives positive performance In the US, the lens through which we often compare wellness initiatives is the likely impact on medical claims costs. Through that lens, exercise outperforms disease management and drug therapy for risk factors such as hypertension, cholesterol and many other treatment-based modalities. However, when we look at the impact on positive performance, exercise really outperforms. For example:

● Students that are the most fit get up to 20% better grades than the least fit in English, Maths and other subjects. They have better discipline and attendance records. Interestingly, there appears to be no difference in academic performance based on body mass index ● Fitter 10-year-old children tend to have a bigger hippocampus and perform better on a test of memory than their less-fit peers ● Forty minutes of walking, three times per week, improves episodic memory and executive control functions by 20% ● A year of exercise can give a 70-year-old the brain connectivity of a 30-year-old, improving memory, planning, dealing with ambiguity and multitasking ● In one study, complex decision-making improved by 70% in response to exercise ● Mental errors fell by 27% for fit workers on concentration and memory tasks ● Nasa is quoted as saying that stamina improves by 100% (in the last two hours of each day) for those who exercise that morning. When was the last time your business achieved that kind of improvement in the same day? Some of the performance impacts of exercise are almost immediate, even for those who have not exercised for years. To be fair, as with all data in wellness, we are hypothesising causal relationships from data on correlation and no one has ever conducted a true double-blind experiment to tease out cause. There could be a hidden third variable. However, we believe that a sober look at the data makes the hypothesis that exercise is overwhelmingly the single most important health habit look very likely to be true. Yet a problem persists that prevents a greater focus on exercise to the exclusion of other health habits. We are in love with breadth, not depth. Wellness vendors and buyers want programmes with ‘something for everyone’ and that address all possible aspects of health, health management and wellness. But the price of this is not doing very well the one thing that makes the world of difference – getting people to exercise effectively almost every day. The problems caused by growth in behaviour-related non-communicable diseases are global, not just specific to the US. The lessons we’ve learned here are just as relevant in any industrialised economy as they are for Americans. As the quantified-self movement evolves (people using ‘trackers’ to measure their exercise and health habits), we predict that the data to prove that exercise really is the ‘killer app’ for keeping us alive, healthy and productive will emerge even more strongly. Until that time, we hope this convinces you that employers around the world should focus on this foundational habit with their limited budgets. a

May 2014 • THE ACTUARY 23 www.theactuary.com

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29/04/2014 10:53

General Insurance Telematics features@theactuary.com

It’s

automatic,

it’s systematic, it’s

Paul Stacy and David Neave look at the evolving impact of telematics on driving better management of loss ratios We live in a personalised world. Everywhere we turn we are having ‘experiences’ recommended to us based on our previous purchases, visits or viewings. Now, thanks to the advent of telematics, the insurance sector is shaping up to be able to oﬀer consumers personalised policies based on their actual driving behaviour, rather than the ‘guesstimates’ of old. This is because insurers will be able to determine the ultimate loss ratio

of a single risk – revolutionising motor pricing. Traditionally, without actual driving behaviour data, insurers would rely on information such as a driver’s age, number of years’ experience, location and claims history to make an estimate as to the likelihood of future claims happening, and then set a premium price accordingly. This would usually result in premiums being set either too high or too low, potentially resulting in poor value-for-

Table 1: Relative fault claims per mile on different UK roads

Road speed limit

Miles travelled

Percentage total miles

Relative fault claim rate per mile

>40mph

75,645,841

42%

11.6

50-60mph

53,317,470

29%

4.8

70mph

52,624,061

29%

1.0

Total

181,587,372

100%

money or high loss ratios. However, recent experience tells us that if you can gain insight into individual driving behaviour, scored against a set of predictive driving parameters, this can dramatically improve loss ratios. The most predictive driving parameters include veriﬁed mileage and garaging, what times of day and night driving is taking place, the number of incidents exceeding speed limits, the smoothness of the drive and the incidence of short journeys. Table 1 (left) demonstrates the predictive power of these driving parameters. It shows the relative fault claims per mile on diﬀerent UK roads. The data shows that there are 11.6 times more claims per mile travelled on 40mph roads and below compared to a 70mph motorway. It could therefore be assumed that someone who drives very regularly on a 40mph road is statistically more likely to have an accident

THE ACTUARY • May 2014 www.theactuary.com

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29/04/2014 11:37

PAUL STACY is research and

Empower Results®

development director of Wunelli DAVID NEAVE is non-

executive director of Wunelli

than someone who rarely drives on a 40mph road. By taking a weighted combination of four or more driving parameters, it is possible to craft a personalised ‘driving score’ for each individual who has a telematics device in their vehicle. Once we have those scores, we can then map them against a range of forecast loss ratios. If we assume a scale of 1 to 100 for driving scores (1 representing the worst scoring drivers and 100 the best), we can see clearly from Figure 1 (below) that a population of drivers scoring 25 or under will have a loss ratio of about 135% compared with a loss ratio in the region of 38% for a group scoring above 75. By using the latest smartphone technology, we have reached a point where an accurate score can be determined after just 200 miles of driving. This means that insurers can determine the likely ultimate loss ratio of individual risks within weeks, rather than years, of a policy being taken out. Traditionally, it would take an incident to happen before a loss ratio could be calculated, and claims and risks would have to be aggregated to ensure the results were robust. However, now we can look in much ﬁner detail and more quickly at the performance of individual policies or broker portfolios or underwriting changes. It is this and the use of apps that we believe will start to take telematics from niche to mass market over the next 12 months – a true revolution for both consumers and insurers. a

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Figure 1 Driving scores mapped against forecasted loss ratios Driving scores distribution Loss ratio

Ask for a demo today and inject a little ReMetrica into your business at aonbenﬁeld.com/remetrica_demo

160%

60%

140%

50%

100% 30%

80%

Loss ratio

% of population

120% 40%

60%

20%

40% 10% 20% 0%

0% 1 - 25

25 - 50

50 - 75

75 - 100

Driving score

DAVE EASTBURY

p24_25_may_telematicsKM.indd 25

May 2014 • THE ACTUARY 25 www.theactuary.com

29/04/2014 10:57

General Insurance Microinsurance features@theactuary.com

Richard Leftley sets the record straight on the issues facing microinsurance specialists that operate in the developing world

THE ACTUARY â&#x20AC;˘ May 2014 www.theactuary.com

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29/04/2014 10:54

RICHARD LEFTLEY is

CEO of MicroEnsure and MicroEnsure Asia

CHALLENGE AFRICA Providing a range of insurance products to low- and middle-income clients in the developing world is always going to be a challenge, but the demands faced by microinsurance specialists differ from those of the mainstream insurance industry. Contrary to popular belief, pricing microinsurance products is not a major problem, even with the inevitable lack of mortality and morbidity data. This is because the products sold have small sums insured, the period of cover is short and the number of people covered is relatively large. These factors contribute to a stable loss ratio once the product is at scale. Pricing can be altered relatively quickly, due to the short period of cover, to ensure that the risk rate is sufficient. More significant than the risk rate is the cost of selling and administering the product, which is often overlooked by mainstream insurers entering the market. The premiums for these products are often just a few dollars. If 20% of the gross premium is set aside for sales and administration then this may not translate into enough cash, especially if the role of sales is outsourced to a third party. A vicious circle can develop whereby the third party tasked with sales and administration does not receive enough cash and so in turn is not motivated to push sales or provide good customer service, which in turn means that the loss ratio is highly unstable due to the low take-up. Scale is important, therefore, not only in ensuring a stable loss ratio but also so that the sales and administration of microinsurance products are sustainable. The key focus for any new programme is, therefore, how to reach scale as quickly as possible. Our experience has led us to believe that the best way to reach scale is by partnering with organisations that have a strong brand and level of trust with the mass market, have points of sale that are accessible and have the ability to handle cash for premiums and claims. Many new entrants to the microinsurance market have focused their attention on the providers, known as microfinance institutions (MFI’s), because they are trusted by the poor and their loan officers are field-based. In fact, most microinsurance programmes have

SHUTTERSTOCK

p26_27_may_micro-insurance 2.indd 27

piggybacked the MFIs by providing simple credit life tied to the loan. The MFI market is estimated at approximately 150m families globally and yet the number of people without insurance is close to 4 billion. MFIs are a great starting point but we have to work with other partners if we want scale. Our team decided four years ago that to maximise scale we needed to work not only with the MFIs, but also with the mobile network operators because of their reach in developing countries. The issue we faced was: “Why would they want to work with us?” We knew that most mobile networks struggled with subscriber loyalty. Clients were using multiple SIM cards and spreading their pre-paid airtime purchases across multiple mobile networks to beneﬁt from frequent sales promotions.

Benefits of loyalty Our approach to the mobile networks was aimed at maximising subscriber loyalty as measured by an increase in purchases of pre-paid airtime, and a reduction in churn of subscribers. We believed that while few people woke up each morning wanting to buy insurance, many of our target clients woke up worried about how they would cover the cost of a funeral, sickness or natural disaster. If we addressed these risks then we would be able to increase loyalty to a given mobile operator. We have convinced the mobile operators that if they offer free insurance to their subscribers, the cost of the premiums will be more than offset by the increase in loyalty. Millions of clients across Africa and Asia have been signed up to insurance for the first time by using this approach. Interestingly, this concept of using insurance as a way of driving loyalty has also worked for banks in Africa who find that they have a majority of clients who maintain uneconomically low average monthly balances in their deposit accounts. One microinsurance product that has yet to benefit from scale is agricultural insurance used to protect smallholder farmers against crop loss. The small plot sizes and geographical disbursement of smallholders mean that manual loss verification is expensive and, therefore, unsustainable. In 2004, MicroEnsure

was an early pioneer in introducing parametric weather index insurance that used rainfall as a proxy for crop yield in Malawi. As an industry we hoped that weather index insurance would provide a mechanism for simply clarifying whether claims were payable. However, reaching scale has been hindered by the lack of weather stations to provide the basis for pricing and payout. Simply building new weather stations does not necessarily solve the problem, as underwriters typically require 30 years of historical data to price products. Recently, we have invested heavily in developing models that use satellite data as an alternative to weather stations. In many situations, remotely-sensed data is a viable tool for providing weather index insurance products in areas that were previously uninsurable. While many of the technical challenges to providing weather index insurance have been overcome, agricultural products remain far behind other microinsurance products in terms of scale. This will be the next challenge to address if these products are to succeed. Weather index products can be sold to individual farmers via group policies through a cooperative, microfinance organisation or commercial bank, or at a macro-level to governments or aid organisations for wider areas. Most practitioners now agree it is impractical to sell weather index insurance to individual farmers as it is just too costly. Many have misgivings about selling insurance to a government body as it is unclear that the money will filter down to the farmers themselves following a claims event. So sales are focused on groups of farmers. The most obvious way to reach farmers is to embed weather insurance into loans made to smallholders to purchase farm inputs such as fertiliser and seeds. This has worked, yet the number of loans being made in the sector remains quite small relative to the potential market. Most recently we have sought to embed weather insurance into contract farming and seed suppliers’ offerings in an attempt to drive farmer loyalty. In essence, we are learning from our experience with the mobile network operators and wondering if loyalty can underpin a significant leap in scale for weather index insurance. Time will tell. a

May 2014 • THE ACTUARY 27 www.theactuary.com

29/04/2014 10:54

Health and care Income protection features@theactuary.com

Cause and

eﬀect 28

Duncan Heald and Gerard Kennedy analyse the latest trends in income protection claims, and some of the implications for insurers

THE ACTUARY • May 2014 www.theactuary.com

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29/04/2014 10:55

DUNCAN HEALD is an actuary in the business development area of a global reinsurer’s UK life division GERARD KENNEDY is senior lecturer in actuarial mathematics at the University of Southampton

Understanding the effect of different causes of sickness is essential to the proper actuarial modelling and management of income protection (IP) business. Knowledge of the distribution of claim inceptions by cause and their subsequent cause-specific patterns of termination, and therefore cost, enables accurate pricing of IP products, efficient reserving and improved management of claims in payment, and better informed product development. In the recently published CMI Working Paper 72, the Continuous Mortality Investigation (CMI) IP Committee presents an analysis of IP claim experience by cause of sickness. The underlying claims data covers the period 1991-2009 and includes over 56,000 claim inceptions and over 43,000 claim terminations (recoveries and deaths), classified according to 72 individual causes of sickness. Results are stated on a ‘lives’ basis, with IPM 1991-98 serving as the expected basis for comparison. This article highlights some of the more interesting features of that analysis.

Inceptions In order to facilitate the interpretation of results, and for statistical robustness, claims are aggregated into 15 cause-of-sickness groups, primarily on the basis of medical similarity. In the figures below, we present results for the seven most significant of these cause groups. Figure 1 (right) highlights the key contributing cause of sickness groups for each sex. The much higher percentages for females reflect the fact that IPM 1991-98 is based on male experience only. Cancer (neoplasms) and mental illness are relatively more prevalent for females, whereas injuries and circulatory are relatively more prevalent for males, and musculoskeletal claims are a significant contributor for both sexes. The figure also illustrates the observed significant improvement in inception rates over time. There are several possible reasons for this: ● Standards of underwriting have strengthened significantly over time ● There has been a reduction in the number of occupations where an ‘own occupation’ definition of disability is offered and a more restrictive activities-based definition is now more common, though this trend is currently reversing ● Exclusions for particular medical conditions are also now more readily applied than in the past. Such changes may have led to the general

NEIL WEBB

p28_30_may_CMI.indd 29

observed reduction in claims from injuries and musculoskeletal causes ● Restrictions on cover for certain occupations, such as teachers, may have contributed to the observed reduction in mental illness claims ● Signiﬁcant improvements to health and safety over the investigation period are likely to have led to reduced inception rates for certain causes In common with other protection products, IP inceptions due to cancer have remained fairly stable over time, reﬂecting the fact that this cause is largely impervious to underwriting.

Terminations IP claim terminations consist of claimant recoveries and claimant deaths. It is the recovery rates that are of most interest to practitioners. Figure 2 (on page 30) illustrates the variation in the male recovery rate with duration sick for each of the main cause-of-sickness groups, and for all causes combined, expressed as a percentage of the all-causes basis, IPM 1991-98. The pattern for females is broadly similar. The ﬁgure clearly demonstrates which causes lead to short-tail claims (acute respiratory and infections) and those that have a much longer recovery time (mental illness).

The all-causes recovery rate is quite close to expectation for short durations but higher than expected at later durations. Since the expected basis was set using the 1991-98 data, this indicates that there has been an improvement in the more recent (1999-2009) experience and that recovery rates are now higher than before. This could be due to a number of factors, including improvements in medical interventions (for example, improved cancer screening and treatment) and greater emphasis by insurers in helping claimants return to work (including much more awareness and understanding of mental health issues). A similar analysis of claimant deaths shows that about half of all deaths of claimants in payment are in respect of cancer claims.

Cost distribution Since claims by certain causes tend to be more long-tailed than others, the distribution of claim incidence by cause group often diﬀers markedly from that of claim cost. This is illustrated in Table 1 (page 30), which, as an example, shows both distributions, for both males and females aged 40 at the onset of sickness, for a policy with a four-week deferred period. This table also shows the average cost per claim, on the basis of a £1,000 a year claim

Figure 1 Actual claim inceptions for deferred periods 4, 13, 26 and 52 weeks, as a percentage of expected claim inceptions (based on IPM 1991-98) 250%

200% Other 150%

Injuries Musculoskeletal

100%

Acute respiratory Circulatory Mental illness

50%

Neoplasms 0%

Infections

4 2 8 9 6 -9 -9 -0 -0 00 91 07 9 -2 95 03 1 0 9 0 19 2 9 2 19 Males

4 2 8 9 6 -9 -9 -0 -0 00 91 07 9 -2 95 03 1 0 9 0 19 2 9 2 19 Females

May 2014 • THE ACTUARY 29 www.theactuary.com

29/04/2014 10:55

Health and care Income protection features@theactuary.com

Figure 2 Actual claimant recoveries for males as a percentage of expected claimant recoveries (based on IPM 1991-98)

300% 250% 200% 150%

“Mental illness claims, due to their long-tailed nature, contribute rather more weight to the claim cost distribution than to claim incidence distribution, especially for females”

100% 50% 0%

4 7-1 ys a d

e we

k4 we

s5 ek

-8 we

s9 ek

-13

2 8 5 4 11 6 9 0 17 -2 -5 310 6-3 -9 -3 412 18 31 3rs 27 rs s1 40 5 s s s a a k s r s k k e e s e a e y e y ek ek ek ye we we we we we we Duration sick

Infections

Neoplasms

Mental illness

Circulatory

Acute respiratory

Musculoskeletal

Injuries

All causes

Table 1: Claim incidence distribution, claim cost distribution and average claim cost Claim Incidence Distribution (%)

Claim Cost Distribution (%)

Average Claim Cost (per £1,000 p.a. annuity)

Males

Females

Infections

3.8

3.1

2.4

2.6

1,539

2,322

Neoplasms

6.2

10.6

4.8

7.9

1,848

2,079

Endocrine & metabolic

1.0

1.4

1.5

2.0

3,685

4,096

Mental illness

21.9

16.6

29.7

27.5

3,277

4,596

Nervous system

4.1

4.6

10.1

11.2

5,875

6,701

Circulatory

8.1

2.3

8.5

2.6

2,532

3,120

Acute respiratory

2.1

2.3

1.2

1.3

1,420

1,515

Other respiratory

0.7

0.6

2,170

2,522

Digestive

5.6

3.5

2.1

1.1

895

859

Genito-urinary

1.3

15.9

0.6

3.1

1,147

544

Arthritis

1.9

2.3

3.0

6.3

3,736

7,599

Musculoskeletal

21.5

17.2

21.8

17.2

2,450

2,758

Summary

Injuries

17.9

12.5

7.3

6.8

989

1,509

All other known

3.8

7.1

6.4

9.8

4,072

3,838

Total all known causes

100

2,418

2,768

As the above trends and cost differentials indicate, it is vitally important that pricing and reserving actuaries keep abreast of both evolving market practice and medical advances. Changes in underwriting philosophy, workplace regulations, and claims management processes, as well as in the prevalence and treatment of different medical conditions, all influence the assumptions that underlie both the design and pricing of products and the reserving and management of claims in payment. Since the effect of such changes often varies by cause of sickness, it is likely that actuaries will increasingly need to focus on cause and its effect. a

Practitioner tool The CMI IP Committee has also developed a calculation tool for CMI subscribers, designed to assist practitioners with their day-to-day work. The spreadsheet-based CMI Income Protection Rate Table Tool is intended to help bridge the gap between the CMI’s published graduations and experience, and the tables of rates and factors required by actuaries to specify or implement an IP basis. The tool allows straightforward calculation of these rates and includes secondary functions to calculate rates of decrement, continuance probabilities and claim annuity values. Examples are provided to demonstrate use of these functions and to help enable users to tailor them to their own needs.

annuity payable from the end of the deferred period until attainment of age 65 or earlier termination and valued at 4% a year effective. It should be noted that these distributions and costs can vary significantly with age and deferred period. For both sexes, the most prominent cause groups contributing to both the claim incidence distribution and the claim cost distribution are mental illness and musculoskeletal. However, whereas musculoskeletal claims contribute the same weight to both distributions, mental illness claims, due to their long-tailed nature, contribute rather more weight to the claim cost distribution than to the claim incidence distribution, especially so for females. The table includes all known cause groups, which allows greater visibility of the less significant causes. It can be seen from these average claim cost figures, assumed to apply in 2002, that the cost of claims are greater for females for nearly all cause groups. Further investigation shows that, since then, female improvements have been greater than males’ for both inceptions and terminations, which is helping to reduce this disparity – welcome news to actuaries pricing in the new gender-neutral world.

THE ACTUARY • May 2014 www.theactuary.com

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BOOK REVIEW

The End of Ethics and a Way Back: How to ﬁx a fundamentally broken global ﬁnancial system by Theodore Roosevelt Malloch and Jordan D Mamorsky PUBLISHER: John Wiley and Sons ISBN-13: 978-1118550175 RRP: £24.13

“We must take a look at ourselves, revise our expectations of easy consumption and challenge leaders to take a longer-term view” At the heart of this book is a reminder of what happens when people with influence allow themselves to ignore the unwritten rules on which most economies – and indeed societies – are based. As a foreword, the authors use a speech by Sir John Marks Templeton in which he connects economics to one of the most essential of these rules: a sense of fair play. While Templeton goes on to discuss economic manifestations of several vices and the importance of certain virtues, the majority of this book is given over to the behaviour of key individuals at the heart of some of the most sensational financial scandals in recent history. In a series of brief stories under the heading ‘Economic vice’, the authors examine the rigging of LIBOR, the demise of MF Global, Lehman Brothers, Bear Stearns and Tyco, the rating agencies’ conflict of interests, the Madoff and Petters Ponzi schemes and the fraudulent accounting behind WorldCom and HealthSouth. Each of these stories is a mix of the basic

GETTY

p31_apr_book_review.indd 31

facts of the case and its impact on stakeholders with brief biographical details, anecdotes and speculation on the motives of some of the key individuals involved. These do make interesting reading – even in cases where most readers will be familiar with the details. Setting aside the somewhat judgmental tone of the authors’ analysis, a repeating pattern is evident in these stories. Most of the people involved do not appear to have set out to create disaster for others, or even to enrich themselves at others’ expense. But they encountered a vicious cycle of success, opportunity, increasing sense of entitlement and temptation to take risks. It is difficult to empathise with these characters – as few of us have been in similar circumstances. It is equally difficult to know if different individuals would have behaved differently. Taking just the LIBOR story as an example, the authors illustrate two fundamental problems that explain the need for regulation in the financial markets.

The first, more obvious, problem is human beings find it too easy to ignore broader negative consequences in favour of a positive response in their immediate environment. This is not just about short-termism: the negative effects can be simultaneous but hidden from the protagonist; the more immediate concern could be defensive or a desire for gain. The second problem is the need – practical and psychological – for the many to trust the few when it comes to the operation of markets. At least one person responsible for regulation suggested... “it wasn’t wrongdoing. It was a market that was dysfunctional”. This is possibly why the authors’ practicable – or not – suggestions require stronger regulation and governance. That the second section is about a quarter of the length of the first is rather telling, since this section contains the authors’ recommendations for addressing the problems illustrated in the previous eight chapters. Not only is this part of the book sadly short, but its most concrete ideas are for changes in the written rules: those that govern behaviour in financial markets and those that prescribe the powers and responsibilities of regulators. There is a critique of Dodd-Frank against what it promised on enactment – set against brief suggestions for ‘saving’ the Securities and Exchange Commission that lead on to a call for broader regulatory reform. Although focused on US markets, the reader can easily see more international application. Nevertheless, there seems to be nothing new – just more of what the authors perceive to have been effective oversight. There is some hope, though: an appeal to leaders to set the right example is accompanied by a reminder that those leaders only reflect the expectations we collectively set. If we are to return to a state of ethical behaviour, less economic risk and fewer cases of individuals destroying the wealth of many, we must take a look at ourselves, revise our expectations of easy consumption and challenge our leaders to take a longer-term view of the consequences of their actions. In that conclusion, this book fails to tell the reader anything most of us have not already worked out. ● Tony Brooke-Taylor is internal audit director

for Aviva’s general insurance business

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

May 2014 • THE ACTUARY www.theactuary.com

29/04/2014 10:56

arts@theactuary.com

Katy Manning meets the ancestors at an exhibition of early human history

Arts FACING UP TO OUR PREHISTORIC PAST A fascinating fascinat exhibition at the Natural History Museum sshows how people in Britain have changed over o a million years. With human hhead ead cast casts and life-size models, it provides a cchallenging hallengin view of ancient man and woman The past is meant to t be a foreign country, exhibition at the Natural but the latest exhibi brings it home. ‘Britain: one History Museum br million years of the human story’ examines Epoch, and does life here in the Pleistocene Pleis and somewhat it in a thought-provoking thought-provo disconcerting way. exhibition, you come face On entering the e human head casts showing to face with four hu species of Homo antecessor, the early human spe heidelbergensis, Homo Homo heidelbergens neanderthalensis and the successful and nea e nderthalensis an sapiens. familiar Homo sapie fam Homo were some of the earliest H Hom o o antecessor w humans hum umans a in Europe – remains have been found nd in Spain from 800,000 years ago. The exhibition exhibitio t n includes a video about fossilised footprints fo foo tprints found in Norfolk last year after coastal scientists are shown coasta coa st l erosion. Heroic H frantically trying to keep the area clear franticallly try of o sand and water while battling harsh and it soon har elements, ele becomes become clear why this is so important. imp Within two weeks, the tide Wit

had eroded the footprints entirely. But thankfully there had been time for them to be mapped on 3D photogrammetric images. After analysis, the weight and height of the wanderers were found to correlate with estimates for Homo antecessor. A small family group of humans left these traces behind some 850,000-950,000 years ago – way before we Homo sapiens ‘rocked up’ in England, which was around 40,000 years ago. Stone tools found in the same area were shown to date from 900,000 years ago, suggesting that Homo antecessor is likely to have been the first human species to enter Britain. These finds are the earliest evidence of human occupation north of the Alps and the oldest human footprints to be found outside Africa. So worth getting a bit wet for. At this point, Britain was connected to mainland Europe and the footprints would not have been left at the coast at all, but along the mudflats of a large estuary. It’s likely this would have been the Thames, which in those times meandered north. Indeed, one interesting element of the exhibition is the

NATURAL HISTORY MUSEUM

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29/04/2014 10:58

At the back Arts

Genetic data now suggests that Neanderthals (main pic opposite page) shared a common ancestor with our species Homo sapiens (below)

Four human head casts provide in-your-face history rendering of how the map of Britain has changed over thousands of years, from being at one with Europe, to being covered in ice, then, in the wake of enormous glaciers, being cut oﬀ from mainland Europe. During these times, it seems that humans inhabited Britain eight times, being pushed back and forth by ice ages. The ninth time humans stayed, and we are still here. Fossil evidence of a leg bone and two teeth show that around 500,000 years ago, Homo heidelbergensis was living in Boxgrove in West Sussex. Hand axes and other stone tools of this species have been found scattered around Britain. With strong brow-ridges but relatively large brains these were talented hunters, skilfully butchering large mammals such as horses, deer and even rhinos. There is an amazing array of ﬁnds showing the tools, bones and other remains from this time and interesting stories on how they were dated. A blue corridor representing an ice age

The skeleton of a hippo illustrates a time when these creatures would wallow in the Thames

450,000 years ago leads to a room with a backdrop of Trafalgar Square, which is where a huge tooth was dug up in the 1950s. This illustrates a period in Britain when hippos would have swum in the Thames (now settled in its proper place) during a warmer period in a Britain cut off from the mainland – and from humans too. The next room shows some amazing finds from the later return of the humans. As time goes on, it didn’t necessarily mean that man became more civilised, however. Gough’s cave in Somerset has been a rich source of finds that show cannibalism clearly went on and the humans who lived there made skull cups as well as leaving sophisticated weapons such as harpoons made of antlers. For a long time it was thought that while we are descended from Homo antecessor (as the name would suggest) and Homo heidelbergensis, Homo sapiens had not much to do with Homo neanderthalensis. So the middle of the exhibition, and arguably the highlight of it, comes as quite a revelation. There stand two amazingly lifelike figures. So lifelike, that my six-year-old daughter exclaimed loudly: “Why has that man got no clothes on?” These are Homo sapiens and Homo neanderthalensis. Commissioned by the museum, they are works of art in themselves. The head of human origins at the museum, Professor Chris Stringer, even declares: “My personal highlight was working with reconstruction artists to create the most lifelike and scientifically accurate Neanderthal and Homo sapiens models ever made.” Genetic data from fossils now suggests that Neanderthals shared a common ancestor with our species,

likely to be Homo heidelbergensis. In 2010 around 60% of the Neanderthal genome was mapped and, on comparing it to modern humans, it was found that people in Asia and Europe have around 2.5% Neanderthal DNA in their genetic code. A video shows how celebrities and experts such as Bill Bailey, Clive Anderson, Alice Roberts, Maggie Aderin-Pocock, Sian Williams and Kevin Fong agreed to have their DNA tested to see what the results reveal about their genetic origins. Aderin-Pocock, a space scientist of African descent, has no Neanderthal DNA whatsoever, while the others have varying degrees of it. Roberts, an anthropologist and TV presenter, has the most, at 2.7%. Certain traits such as light hair and eyes, and even illnesses such as type 2 diabetes and Crohn’s disease are likely to be a result of Neanderthal DNA. Neanderthals were also paler, to take advantage of getting more vitamin D from the sun in colder climates. All in all, this is a fascinating exhibition that will leave visitors pondering the things they’ve seen for many years to come. Britain: one million years of the human story is at the Natural History Museum, London until 28 September 2014

May 2014 • THE ACTUARY www.theactuary.com

p32_33_MAY_arts_NHM•km.indd 33

29/04/2014 10:58

At the back Coﬀee break

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

puzzles@theactuary.com

Puzzles

— RD SWO CROS IZE PR E PUZZL

For a chance to win a £25 Amazon voucher, please email your crossword solution to: puzzles@theactuary.com by Wednesday 21 May

—

UNEXPECTED RESULTS

Across

The danger of using ‘search and replace’ in wordprocessing is evident in this puzzle. Nylﬁa was using his ICA report as a basis for his new SCR report under Solvency II. He replaced all instances of ‘ICA’ with ‘SCR’ failing to notice it impacted the draft of his latest puzzle, where all down solutions were similarly aﬀected. Across solutions check with the altered downs.

9 10

Many thanks to the Fellow at a recent seminar whose error gave me the idea for this puzzle

1 4

12 13 15 16 19 20 23 25

27 8

28 29 30

Down

1 2 3 5 6 7 8

11 22

14 23

17 18 19

Companies introduced decimal devices for scrambling signals (6) Compound viewer discovered in experiment with atom includes me with hesitation (8) Corrupt foreign noble in seat of power (6) How the Special Constable ceased to gain entry yesterday? (8) Founder loses head, subordinate unconcerned with consequences (8) Nettle crop is patchy (6) Stable diet (4) Original strait-laced alternative face (10) Basic actor sent tumbling (10) Statement by groom left with object of adoration (4) Is half of November unexpected as snowy month? (6) Merchandise put on vehicle gets smashed in circulation (5,3) Caribbean soda produced by three companies accommodating US State (4,4) Pundit role played by everyone, it’s said (6) Gets near trainer with three stripes? (8) Starry embrace comes with Senora’s “Tra-La” (6)

21 22 24 26

Marx incorporated German Company in city (7) Actor died swimming in tributary (9) Insect, normally seen with 500, here with 50 (6) Mineral discovered through atomic analysis (4) Foreigner captured in camera (8) Perhaps I care for plant? (5) Examination found something in between with Carbon deposit (7) Old jurors have passed the point of no return, say, by selecting leader (7) Spring up when Roman becomes Catholic in Middle Eastern territory (7) Sign in Troy dropped by tyrant (9) Renounce sailor with demand short of time (8) Fellow’s ID is called in shortly when tinctures sourced (7) I cry, all out of sorts, ﬁlled with emotion (7) Issue ditched in sea following melting moment (6) After six, there’s transport for clergyman (5) Communication charity for which Vatican donated large tank (1, 3)

THE ACTUARY • May 2014 www.theactuary.com

p34_35_may_crossword.indd 34

29/04/2014 10:59

Problem on a plate Mensa puzzle 583

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

A factory recycles plates for use in its canteen. Nine used plates are needed to make each new plate. If there are 521 used plates How many new plates can possibly be made in total?

Winning words Mensa puzzle 586 When each of the following words is rearranged, one of them can be used to preﬁx all the others to give ﬁve longer words. What are they?

AGENT BLARE SOUR SIDE ASCENT AT O N I N G

Roundabout riddle Mensa puzzle 584 The top half and the bottom half are on interlocking rotating systems. When they move round they will realign so that four associated names are read downwards. What are they?

Bridge Puzzle 42 Who has what? Stayman is a useful convention – but it can give some important information to the defence. The bidding has been:

Musing on mileage Mensa puzzle 585 A coach has been travelling for four hours. In the ﬁrst hour it covered two ﬁfths of the total journey. The next hour it covered one third of what was left. The following hour it covered one quarter of the remainder and in the fourth hour half of the remaining distance. The coach still has 25 miles left to its destination. How many miles has it covered? For a chance to win a £25 Amazon voucher, email your solution to puzzle 571 to: puzzles@ theactuary.com by Tuesday 20 May

—

A MENSE PRIZ E PUZZL

—

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

SHUTTERSTOCK

p34_35_may_crossword.indd 35

Partner

You

1NT

2♣ (1)

2♦ (2)

3NT

(1)

(2)

Stayman;

No 4-card major

Q1: In the following hands, you, as West, lead your 4th highest card of your longest suit. Using the principles that Partner will play high but will also play the lower/lowest of touching cards, you have to determine which of the unseen cards are in Partner’s hand and which are in Declarer’s. The card led by you and played by Dummy is underlined. You (West)

Dummy (North)

Partner Declarer (East) (South)

♥K8743

♥652

♥J

♥Q

♥AJ653

♥42

♥10

♥Q754

♥10863

♥J

Q2: Why is it useful to work out the holdings? Bridge puzzle provided by David Lampert

May 2014 • THE ACTUARY www.theactuary.com

29/04/2014 10:59

puzzles@theactuary.com

SOLUTIONS FOR APRIL 2014 Congratulations to this month’s winner – Andrew Hill

M B A G A R N C M A H A R W L B C M C A R A V T L N A S A M Y S A L A D R L R A D A R N M

L B A G A R V H A J A H M A N A N V S A N M T F A R A F R R P A N D C A R Y

C R A N S A H D A A V D A C A N Y A T C A M A J R A C A R T

B T L D

T A C A M A H A C

At the back Coﬀee break

N S M

P H A T G R A N

Bridge puzzle 41 Are you in control? Movie musings Mensa puzzle 580 Racing to a conclusion Mensa puzzle 579 Two cars set oﬀ from the same point, at the same time, to travel the same 165 mile journey. If car A travels at 55 mph and car B travels at 40 mph. How long will it take car B to catch up? Answer One hour, seven minutes and 30 seconds.

You, as South, playing Rubber Bridge, end up in 4♥. West leads K♠. How do you approach this hand?

Rearrange the letters of ‘AWFUL AND DANGEROUS FRIEND’ to give the title of a well-known ﬁlm. What is it?

Answer: This looks easy. Win the A♠, play on trumps knocking out the A♥ and run the clubs, making 4 hearts, 5 clubs and 2 aces = 11 tricks. This is arguably the right approach in Pairs where overtricks are important. However, playing rubber bridge, you just have to make the contract and, on this layout, an alert defence will defeat you. West ducks the ﬁrst two rounds and, if you then switch to clubs, West can ruﬀ the 3rd round of clubs, draw Dummy’s last trump and cash winning spades.

And rearrange the letters of ‘HIGHLY VALID TESTING’ to give the title of a wellknown ﬁlm. What is it? Answer: a) Four Weddings and a Funeral. b) The Living Daylights. Congratulations to this month’s winner – Eolan Allen

The answer is to keep control of spades by ducking the ﬁrst spade. If West persists, you ruﬀ in dummy. Now you can play trumps. When West takes the A♥, there is nothing West can do to harm you because you still have A♠.

♠4 ♥Q72 ♦A943 ♣AQJ98

One direction Mensa puzzle 582 Correct to the letter Mensa puzzle 581 What letter should replace the question mark?

CJG

EUP

VXB

LTH KY?

Answer N. In each group, the sum of the alphabetical values of the two outer letters, gives the alphabetical value of the centre letter.

THE ACTUARY • May 2014 www.theactuary.com

p36_may_puzzle_solution.indd 36

♠KQ9 ♥A654 ♦8765 ♣63

In which direction should the missing arrow point? Answer North. A sequence of arrows pointing north, west, east, south, west, east, runs along the top row and returns along the second row and so on.

N W

E S

♠A753 ♥KJ1083 ♦5 ♣K105 ?

♠J10862 ♥9 ♦KQJ2 ♣742

The Bidding S N 1♥ 2♣ 2♥ 4♥

Bridge puzzle provided by David Lampert

SHUTTERSTOCK

29/04/2014 11:00

At the back Student student@theactuary.com

Student Working alongside actuaries just became a whole lot more scholarly. Jessica Elkin bids a hearty welcome to the new entrants

ANALYSE THIS This revered publication is called The Actuary, but let it not be said that we are narrow-minded enough for it to be solely for actuaries. Why, all sorts with an actuarial eye might find something to interest them. The puzzles alone are worth a look, even if you’ve no interest in making financial sense of the future and, let’s face it, you don’t need to be Einstein to read the stuff I’m putting down on paper. What am I getting at? Well, people with a rousing actuarial curiosity who are not going to be studying for the IFoA Fellowship, might want to look at a new opportunity to belong to the profession without having to travel the same path as the rest of us students. The new Certified Actuarial Analyst (CAA) qualification has been developed after consultation with members of the profession and seeks to fill a different need from the one addressed by the long-standing Fellowship. Those who are already in roles supporting actuaries, or in other financial services roles who would like a professional qualification, will have a more formal and internationally recognised path to gaining appropriate technical financial skills. We can be reassured that “it bears all the hallmarks you would expect from the IFoA: a high-quality qualification, robust regulatory framework and attractive membership package.” Phew. Some may bring up the adage about how things that are unbroken do not require mending and wonder what the reasoning is for bringing in this new fancy-pants certification. Is it just a money-spinner? Oh, ye of little faith! As it happens, a lot of thought was put into its genesis.

PHIL WRIGGLESWORTH

p37_may_student.indd 37

underpins the skills of those working with actuaries. Potential candidates will ﬁnd that it provides membership of a prestigious professional body and the associated beneﬁts of being part of the global IFoA community; the support from the IFoA throughout their careers and the various social – I mean networking – events. Finally, it will hopefully ensure the IFoA’s ongoing relevance in global markets. Oh, and you can rest easy as they still have to complete work-based skills, adhere to Technical Actuarial Standards and demonstrate Continuing Professional Development. No one escapes!

Seeing reason

Members’ club

CAA is intended to be to actuaries what paralegals are to lawyers. While there are other technical financial qualifications out there, none of them is actuarial in nature. Allowing those who work alongside actuaries to acquire part of the broad actuarial skill set and to join the profession will, in turn, promote awareness of actuarial science and its value to a broader demographic. Furthermore, professionalising actuarial support roles brings them within the regulatory framework of the Actuaries’ Code and all the finger-wagging that that entails. We will share the same sticks and carrots, giving the public and our clients that extra layer of confidence in our collective accountability. The broad application of the new qualification means it could generate much interest. Employers may find that offering the qualification aids the retention of staff and

When Waitrose brought out its free-coffeeand-newspaper scheme, it was met with disapproval with many a posh shopper who complained that these sorts of giveaways bring in the riff-raff. No worries of that sort here. Candidates must pass Module 0 before being allowed to attempt the later ones, and qualification is estimated to take at least two years of part-time study alongside a financial support role. Modules 1-4 consist of snippets from a lot of the CT exams and module 5 comprises half of CA2 (audit trails – that last hurdle). To those concerned that the CAA qualification will devalue the Fellowship, the IFoA has expressed a commitment to keeping them markedly separate. However, it may be possible for certified actuarial analysts to gain the Fellowship qualification in time. The intent is not for people to see CAA as a stepping stone to becoming an actuary, but a conversion course is considered a possibility given the right level of demand. As for the other way around, the early CT exams currently give exemptions from some of the CAA exams – but only with a year’s window planned to start in November this year. So get cracking if you’re interested! There is plenty more information on the IFoA website. The qualification is launched this year, with modules 1-5 ready for examination from 2015, so it’s only a few years before we welcome new comrades into our collective actuarial bosom. I don’t know about you, but I for one welcome our new analytical amigos. a

May 2014 • THE ACTUARY www.theactuary.com

29/04/2014 11:00

At the back Appointments

SPONSORED BY

peoplemoves@theactuary.com

Moves Gareth Davies joined LCP in 2011, having qualified as an actuary in 2006, and with 10 years of experience advising a wide range of clients on their pension schemes. Davies is actively involved in helping to advise companies and trustees on risk-reduction strategies, including several buy-in and buy-out transactions as a member of LCP’s buy-out practice. Davies has a first class degree in Mathematics from Southampton University. Catherine Drummond joined LCP from Imperial College in 2005 after graduating with a first class degree in Physics. She qualified as an actuary in 2008. She has a variety of experience in non-life insurance

LCP promotes ﬁve employees to partner status consulting including reserving and capital modelling as well as all aspects of Solvency II implementation. Drummond provides actuarial and insurance consulting advice to a range of clients including Lloyd’s syndicates, nonlife insurers and public insurance bodies. Carla Lakey works primarily as part of LCP’s corporate consulting team, helping clients with

their pensions strategy and accounting issues. Lakey began her career with LCP in 1999 and rejoined the firm in 2012 after working in a variety of finance roles at a global household name retailer. As a qualified actuary and chartered certified accountant she has a unique blend of pensions and finance experience to translate between the corporate and pensions worlds. She is currently involved in a number of

scheme design review projects, helping clients achieve designs to better manage their pensions costs and risks. Tom Porter joined LCP in 2009 after graduating with a ﬁrst-class degree in Mathematics and Statistics from Oxford University. He currently heads-up ﬁnancial modelling across LCP’s actuarial, investment and business analytics departments. Porter

specialises in analysis of the energy markets, where he works with a range of clients – including working closely with the UK government to understand the eﬀect of their environmental policies on the electricity market. Gordon Watchorn joined LCP from Warwick University in 2003, and qualiﬁed as an actuary in 2010. He advises a wide range of clients on

their pension schemes – including both sponsoring companies and trustees of pension schemes. Recently this has included advice on the changes to the annual and lifetime allowance, de-risking pension schemes and valuation/budgeting negotiations. Watchorn also advises several ﬁnancial companies in respect of their pension risk assessment for the Prudential Regulation Authority.

a product development actuary in the EMEA region.

Bernard Yardley, formerly of A J Bell, has formed his own consultancy, Actuate Consulting, specialising in the design and build of ﬁnancial software. He has over 14 years’ experience as an actuary, business analyst and developer. Elliot Varnell and William Coatesworth will join the Pension Insurance Corporation as head of enterprise risk

management (ERM) and head of risk respectively. Both will report to Chris Chappell, PIC’s chief risk oﬃcer. Varnell is a leading expert on ERM and is the chairman of the Institute & Faculty of Actuaries’ risk management research committee. Coatesworth is a leading expert on Solvency II across Europe. He also sits on the Solvency II Pillar V working

group of the Actuarial Association of Europe. Towers Watson has appointed John Ball (right) as EMEA head of retirement solutions, from June 2014. He will succeed Mark Stewart who will retire from

Towers Watson after 22 years of service. Ball joined Towers Watson more than 30 years ago and has held numerous leadership roles during that time, most recently heading the company’s Retirement business in the UK.

PartnerRe have announced that Greg Becker (above) has joined as a business development actuary with a focus on the UK and Irish markets. Prior to this role, Becker ran www.getguidance.com and worked for RGA as

MetLife has appointed Wayne Daniel as head of US pensions. Daniel will assume his new role from mid-May, based in New York, NY. Since 2011 Daniel has served as CEO of MetLife’s UK bulk annuity subsidiary. Daniel will be responsible for leading MetLife’s de-risking strategy in the US.

www.hfg.co.uk

THE ACTUARY • May 2014 www.theactuary.com

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29/04/2014 11:01

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

Missing Something? HFG is more than just a recruitment consultancy. We offer a whole range of add-on services that help people hone their CVs and develop their career potential. Get in touch today at actuarialteam@hfg.co.uk or +44 (0) 207 337 8800.

General Insurance Roles Deputy Head of reserving

First In-house Actuary £80k - £110k Basic, London

£80k - £120k Basic, London

A unique non-lifer Insurer is looking to bring on a stand alone actuary. The position is critical to the company’s plan of expanding its actuarial function – you will be playing a vital role in the company’s wider growth strategy. Reporting directly into the CFO, this role offers high degrees of both autonomy and responsibility and thus unmissable opportunity to further your career. Previous capital experience is important. william@hfg.co.uk

Mid sized Lloyd's Syndicate is looking for a qualified reserving Actuary to support their Head of Reserving. This person should have a real interest in reserving and be looking for a step up. The role will suit someone who wants to take over the Head of role in time. Managerial experience will put you at a good advantage. william@hfg.co.uk

Reserving & Pricing Actuary

Unique Actuarial Role

£80k - £120k Basic, London Rapidly expanding Actuarial team is looking for a newly qualified Actuary with experience across pricing or reserving. The role will encompass all areas of the Actuarial team and this is a great opportunity to work closely with Underwriters and gain invaluable experience. To find out more please get in touch: william@hfg.co.uk

Capital Actuarial Analyst

£70k - £110k Basic, London Insurance broker is looking to add a newly qualified actuary to its structured risk solutions team. The right person should have a strong consultative outlook and be interested in working on non insurance projects too. This is a unique opportunity to work in a brilliant team and add invaluable experience to your skillset. william@hfg.co.uk

Pricing Actuarial Analyst £50k - £60k Basic, London

£40k - £60k Basic, London

A London based P&I Club is currently recruiting for a capital modelling analyst. The small size of the firm offers varied exposure from the outset and a high degree of autonomy as the individual develops. The role will include both regulatory reporting and using the internal model for business planning. The successful candidate must be from an Actuarial/Statistical background, Igloo experience is a must. ben@hfg.co.uk

A mid sized Lloyd’s Syndicate is currently on the lookout for an experienced student actuary to join their expanding team. The opportunity sits within the Pricing team giving the successful candidate plenty of interaction with underwriting teams and the chance to be at the forefront of decision making. The successful candidate will have exemplary educational history and will have gained experience in a London market role. ben@hfg.co.uk

Actuarial Student

Actuarial Graduate £40k - £50k Basic, London

After a recent acquisition, a small Lloyd’s Syndicate is looking to expand their actuarial team and bring in a part-qualified actuarial student. This is a great opportunity for individuals who seek a mixed role, with exposure to pricing, reserving and capital modelling. This role reports directly into the chief actuary and offers fantastic career development. ben@hfg.co.uk

£25k - £30k Basic, London A Global market General Insurer requires an entry level candidate, offering an extremely competitive study package to ensure your continuing development. The individual will have exposure across a variety of actuarial functions including Pricing, Reserving and Capital Modelling with the option to specialise in the future. You will have a mathematics or science based bachelors degree, ideally having undertaken a postgraduate certification. ben@hfg.co.uk

WILLIAM GALLIMORE

RUPA PITHIYA

BEN HICKEY

Director

General Insurance Contract

General Insurance

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

+44 (0) 207 337 1200

+44 (0) 207 220 1106

rupa@hfg.co.uk

ben@hfg.co.uk

+44 (0) 207 337 8800

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

p39_ACT.05.14.indd 39

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Appointments

Head of ERM – circa £100k

Senior Consultant – from £120k

Senior Consultant – circa £75k

Seeking a Quali¿ed ERM Actuary to work closely with the CRO. Role includes the implementation of the Company’s Risk Appetite Framework, Stress & Scenario Testing, ORSA policy, oversight of ¿nancial risks and coordination of technical requirements, reporting required to support the wider parent company life risk function.

Seeking 2 scheme actuaries, to be based in London, to join this award winning pension consultancy. 1st role to manage existing book of business. 2nd role to build additional business opportunities across new clients. FIA/FFA quali¿ed is essential along with professional industry experience and strong desire to succeed.

Nearly/newly quali¿ed Actuary preferably from a capital modelling background, to work closely with a variety of Lloyd’s and London market clients. Team management responsibilities for certain projects is on offer as well as access to a wide variety of clients. Capital modelling or SII experience is a plus as well as strong communication skills.

For a con¿dential discussion please call Clinton Poore 0207 929 7667

For a con¿dential discussion please call Victoria Cruickshank 0207 621 3758

CONGRATULATIONS TO…

For a chance to win a prize…

Last months winner is Mr Eday Balaji… Eday has won a pair of tickets to see England Vs Peru. For your chance to win a prize, email your answer for this month’s question to London@darwinrhodes.com

Which word is the odd one out? Laughing Canopy Stupid Thunder Hijack

PLAN YOUR NEXT MOVE

pfJobs

ON THE MOVE See latest job listings Create job alerts by email Save and email jobs from mobile Apply for jobs by saving your CV to your proﬁle Keep track of your activity

Go to www.theactuaryjobs.com 40

THE ACTUARY • May 2014 www.theactuary.com

p40_ACT.05.14.indd 40

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London : Chicago : Hong Kong : Singapore : Shanghai

www.theactuaryjobs.com

Actuary Non-Life - Germany &DSLWDO 0RGHOOLQJ $QDO\VW /RQGRQ $WWUDFWLYH 6DODU\ %HQHÂżWV 3DFNDJH $WWUDFWLYH 6DODU\ %HQHÂżWV 3DFNDJH This multinational insurance company is looking to hire a Non-Life Actuary. The main remit is to monitor and control the risk and return situation of its international Non-Life entities including the performance of reserve and profitability analyses. You will work on the reserving methodology and the technical develolpment/implementation of reserving processes. You will establish and ensure required standards under Solvency II. You will also develop and improve the internal insurance risk models. The ideal candidate will be a part or fully qualified actuary. Knowledge of Igloo and ResQ would be advantageous. This role would suit a team player with good communication and technical skills. &RQWDFW SKX QJRF#LSVJURXS FR XN +44 207 481 8686

This multinational insurer is looking to hire a Senior Actuarial Student for their actuarial capital modelling team. Principal task is to undertake capital analysis and to assist in the development of the internal capital model. Other tasks include the participation in strategic projects, underwriting reviews and the development of management information. The ideal candidate is an actuarial student with relevant experience in the insurance industry - ideally London Market - and capital modelling. *RRG NQRZOHGJH RI HLWKHU 5HPHWULFD RU ,JORR 9%$ DQG 06 2IÂżFH would be advantageous.

&RQWDFW SKX QJRF#LSVJURXS FR XN +44 207 481 8686

3ULFLQJ $FWXDU\ 6ZLW]HUODQG 3DUW 4XDOLÂżHG 3HQVLRQV $FWXDU\ 0DQFKHVWHU $WWUDFWLYH 6DODU\ %HQHÂżWV 3DFNDJH 7R Â&#x2026; %HQHÂżWV Our client, a multinational property and casualty reinsurer, is looking to enhance their team with a Pricing Actuary. The main remit is to provide actuarial pricing support for underwriters across property, casualty and specialty lines of business. You will also interact with clients and brokers. Additional responsibilities include the maintenance and development of actuarial models and tools. Strong VBA and Excel skills are required. Relevant experience, especially in commercial property and casualty reinsurance is expected. The ideal candidate is a near or SRVW TXDOLÂżHG DFWXDU\ 6$9 '$9 ),$ &$6 HWF )OXHQW (QJOLVK LV a must, good knowledge of another European language would be an advantage. &RQWDFW SKX QJRF#LSVJURXS FR XN +44 207 481 8686

,Q WKH PLGVW RI VLJQLÂżFDQW DQG H[FLWLQJ JURZWK WKLV ERXWLTXH consulting practice is looking to recruit a driven and ambitious Pensions Actuarial Professional to augment their client facing team. With a minimum of 3-5 years experience gained working within a consulting environment and with a mix of corporate DQG WUXVWHH H[SRVXUH \RX ZLOO EH PDNLQJ VLJQLÂżFDQW VWULGHV WRZDUG TXDOLÂżFDWLRQ <RX ZLOO SRVVHV VWURQJ SHQVLRQV WHFKQLFDO DELOLW\ EXW \RXU ÂżUVW FODVV UHODWLRQVKLS PDQDJHPHQW DQG FOLHQW facing skills will be what set you apart from the crowd.

&RQWDFW GDQ KD\QHV#LSVJURXS FR XN +44 161 233 8222

/RQGRQ 2IÂżFH IPS Group, Lloydâ&#x20AC;&#x2122;s Avenue House, 6 Lloydâ&#x20AC;&#x2122;s Avenue, London EC3N 3ES 7HOHSKRQH 020 7481 8686 Email: actuarial@ipsgroup.co.uk /HHGV 2IÂżFH IPS Group, 8 St Paulâ&#x20AC;&#x2122;s Street, Leeds LS1 2LE 7HOHSKRQH 0113 202 1577 Email: actuarial@ipsgroup.co.uk p41_ACT.05.14.indd 41

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

29/04/2014 11:25

Appointments

Bespoke & Exclusive Opportunities in General Insurance Bolton Associates is a specialist search Âżrm dedicated to the actuarial market. Covering the Lloydâ&#x20AC;&#x2122;s and London Market and insurance industry as a whole, we work with you at all levels, from graduate to Senior Partner, CRO and beyond. As one of the longest-standing headhunters in this sector, we have many years of experience, and we all have the passion and enthusiasm to make a real difference. We are good at what we do, because we enjoy what we do.

www.bolton-associates.co.uk Tel. 0207 250 4718

Want to lead a team in Australiaâ&#x20AC;&#x2122;s fastest growing economy?

To apply, please visit www.pwc.com.au/careers, job reference PER0000KT. Or for more information, please contact: Michael Playford Actuarial (02) 8266 5478 Liz Eastwood Human Capital (08) 9238 3024

A unique opportunity will shortly become available, following the retirement of the leader of our Perth Actuarial team. This is a rare chance to secure a leadership role with the largest actuarial consultancy on Australiaâ&#x20AC;&#x2122;s West coast.

<RX ZRXOG EH H[SHFWHG WR DFWLYHO\ FROODERUDWH with and be a leader within the broader PwC Consulting team in Perth working across a range of industries with multi-disciplinary teams

You need to be self-motivated, results orientated, analytically minded and commercially astute. :H DUH DEOH WR RIIHU D IXQ Ă H[LEOH DQG VXSSRUWLYH ,I \RX DOVR KDYH H[FHOOHQW FRPPXQLFDWLRQ DQG work environment and the chance to build relationship building skills and thrive in an energetic and enthusiastic team environment, a successful career, including admission to please get in touch with us. Partnership for the right individual. You will be able to drive the future growth of an already PwC Actuarial is one of the largest actuarial very successful business. consulting practices in Australia, with around Our work is diverse, so we will consider people 90 people in our team (which is based in Sydney, Melbourne and Perth). We are a leading provider from a range of disciplines, including General Insurance / Accident Compensation, Retirement of risk advisory services across the Insurance, Government, Banking, Health and Retirement ,QFRPHV /LIH ,QVXUDQFH DQG +HDOWK :H H[SHFW WKDW \RX ZRXOG KDYH DW OHDVW Ă&#x20AC;IWHHQ \HDUV RI Incomes industries. UHOHYDQW H[SHULHQFH LQFOXGLQJ H[SHUWLVH LQ DQG a passion for, business and team development. ÂŠ 2014 PricewaterhouseCoopers. All rights reserved.

THE ACTUARY â&#x20AC;˘ May 2014 www.theactuary.com

p42_ACT.05.14.indd 42

29/04/2014 11:29

www.theactuaryjobs.com

Life Insurance Roles Business Development Reinsurance Actuary

Solvency II Technical Lead £90k - £130k Basic, London

£90k - £140k Basic, London A global insurance broker is looking for a qualified actuary to lead their Life insurance team. You will get involved with key decisions across the company and as well as create new business going forward. Previous knowledge working in Pricing and Product Development across reinsurance is preferred with a commercial mind-set. This is a great opportunity to develop your skills and grow a team. sophia@hfg.co.uk

An exciting opportunity has been created at an established consultancy for a Solvency II Technical expert adding significant experience to their Solvency II offering. Working across Life and Non-Life insurance, you will lead Solvency II across each of the three pillars, managing a team of consultants through the projects. Experience in working on Standard Formula and Internal Model would be advantageous. jack@hfg.co.uk

Calling all Life Consultants!

Pricing Actuary

£55k - £120k Basic, London

£55k - £90k Basic, South East

A leading big four consultancy is looking to rapidly expand their life insurance team across all levels. You will work across all areas of the business and get involved in key projects which will really enhance your career. This role will give you a unique insight into the Life insurance market and give you a good commercial awareness. Great opportunity to fast track your career! sophia@hfg.co.uk

A niche Insurer is looking for an experienced Pricing Actuary to join the Defined Benefit Bulk Purchase Annuity team. You will be responsible for pricing, supporting the new business team, transitioning schemes and developing the existing systems. This is an exciting opportunity operating near the start of a new product line, influencing the processes and models used post the product launch. jack@hfg.co.uk

Pricing Product Development Actuarial Analyst

Solvency II Actuarial Analyst

£35k - £55k Basic, London Have you just completed your exams and looking for a change? This leading life insurer requires an ambitious student to join their growing life pricing product development team. The role will involve pricing a range of products within the business, offering good exposure. Reporting into future thinkers, it’s an opportunity to fast-track your career and gain valuable industry knowledge. sophia@hfg.co.uk

£35k - £60k Basic, London With the impact of Solvency II legislation in full swing, this leading life insurer is looking for a Solvency II analyst to join their expanding team. The role is fundamental to the continuing growth and development of the business and is critical for its future expansion. This represents the prime opportunity to expand your knowledge in an increasingly important sphere of the insurance industry. sophia@hfg.co.uk

Contract Roles Solvency II Actuaries

Capital Contractor

£750 - £1,200 per day, 9 months, London

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

This leading Insurer is looking to recruit a Solvency II actuary with Internal Model and regulatory interpretation experience. To be successful you must have up to date Solvency II knowledge and know how to apply them practically to the business as well as experience in reviewing and challenging the model. rupa@hfg.co.uk

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

Solvency II Actuaries

Reserving Contractor

£550 - £1100 per day, 6 months, London A growing niche insurer is keen on recruiting a number of Solvency II Actuaries to work within their Internal Model, Balance Sheet and Systems teams for 6 months to build upon the existing Solvency II project. Roles are typically seeking Qualified Actuaries with significant Solvency II experience in either the Standard Formula or Internal Model approach. jack@hfg.co.uk

£700 - £900 per day, 6 months, London This leading insurer is looking for a contractor, for an initial 6 month period subject to extension with reserving experience. You will be required to help backfill the day to day reserving work as well as help the quarterly GAAP/technical provisions under Solvency II and reserve risk parameters. In order to be successful you must have relevant GI Reserving and ResQ experience. rupa@hfg.co.uk

Risk Roles Senior Risk analyst

ERM Actuary

£50k - £70k Basic, London

£75k - £100k Basic, London This leading London Market Insurer is looking for an experienced Non-Life Actuary to join their ERM team. The role will be responsible for communicating technical concepts out to various stakeholders throughout the company. You will make recommendations on business planning, reinsurance purchasing and pricing based on the outputs of the internal model. You will also have exposure to the wider risk management framework across the firm. james@hfg.co.uk

JACK SNAPE

SOPHIA CROSSMAN

JAMES KITT

ERIN O’DONNELL

Life Insurance

Risk Management

+44 (0) 207 337 1202

+44 (0) 207 337 1207

+44 (0) 207 337 1202

jack@hfg.co.uk

sophia@hfg.co.uk

james@hfg.co.uk

erin@hfg.co.uk

0207 337 8800 p43_ACT.05.14.indd 43

My client, a large multi line insurer is seeking a Senior Risk Analyst to join their Group function where they will support the implementation of the ORSA and delivery of the Risk Management Framework. Coming from a London market background you will be a strong communicator with a professional qualification and will feel comfortable both interacting and working with other parts of the business. erin@hfg.co.uk

www.hfg.co.uk

September 2013 • THE ACTUARY www.theactuary.com

actuarialteam@hfg.co.uk

29/04/2014 11:32

Appointments

INTRODUCING

ASH LE Y

C L AU D E

SIMON

Co-Founder and Director

Co-Founder and Non-Executive Director

WWW.FENASSOCIATES.COM

Head of Reserving – Hong Kong

Chief Risk Officer – The Philippines HKD 1m

Local Expat Package

Global business with an enviable culture of high staff retention and professional development is seeking a talented Actuary to join its Hong Kong team. Reporting to the Chief Actuary, you will lead a small team and be responsible for key reporting deadlines, getting involved in wider group change management projects. Superb internal career prospects. jason@hfg.com.sg

Unique chance to develop the risk management framework for the Philippines Life Insurance operations of an MNC. With Group & Regional support this is a key role to deliver global risk initiatives in a rapidly moving market. Reporting to the CEO with a team of 5, you will be a qualified life Actuary equipped to cover insurance, market, operational, investment and credit risk. clare@hfg.com.sg

Country Lead – China, Beijing

Actuarial Consultant – Indonesia CNY 1.5m – 2.5m

IDR 37m – 60m per month

Operating as part of the regional senior management you will have responsibility of the performance development, growth and strategic direction of the business across China. You will join a committed and proactive leadership team with a clear directive to become the leading practice in the region. Managerial knowledge and local market expertise is essential. graeme@hfg.com.sg

A multinational firm is expanding into Indonesia. They are seeking high calibre Actuaries or Actuarial students of the Indonesian Actuarial society to join their growing team and service their multinational clients on the ground. They provide excellent training to assist qualification. Advanced Prophet modelling skills are highly desirable. hallie@hfg.com.sg

Life Consultant - Beijing

Pricing Actuary – Hong Kong Competitive Salary

A globally recognised consulting firm is looking for a qualified Actuary with strong valuation experience on the life insurance side to join as a manager. You will perform and manage EV, IFRS and local statutory actuarial audit procedures for clients in China and Hong Kong and will actively participate in business development activities.tong@hfg.com.sg

Market competitive

A dynamic global reinsurer is seeking a part qualified pricing Actuary for this highly autonomous opportunity in Hong Kong. Offering fantastic regional exposure across Asia Pacific, responsibilities include treaty developments, claims and pricing renewal monitoring. You must be flexible, robust and contribute early in a fast-paced learning environment. merri@hfg.com.sg

HFG Singapore Office: Jason Sykes Clare Bethell Graeme Braidwood 44

Managing Director Director Senior Consultant

Hallie Chin Merri Knox Tong Yu

Consultant Consultant Consultant

www.hfg.com.sg

THE ACTUARY • May 2014 www.theactuary.com

p44_ACT.05.14.indd 44

29/04/2014 11:36

UK Roles Pricing Manager - Personal lines

Director of Capital - GI

£75-90K + Bonus + Benefits South East

£150-180K + Bonus + Benefits London

21523

Capital Actuary - Lloyds 21381

£90-120K + Bonus + Benefits London

21249

A specialist Commercial Insurer is seeking 2 Personal Lines pricing managers for their home & motor teams.

Leading consultancy is seeking a senior qualified actuary to take the lead on capital projects and develop the function.

Leading syndicate requires a nearly/newly qualified actuary to help lead the capital team. Experience with Igloo/ReMetrica is desirable.

Pricing Actuary - Lloyds - Contract

Solvency II Actuary - Contractor

Pricing VP

£700-£900 per day London

£800-£1,000 per day London

£100K + Bonus + Benefits London

21522

London market insurer seeking a pricing actuary for an initial 6 months to develop specialty lines of business including marine & aviation.

Part Qualified Pricing Analyst (Lloyds Syndicate) £45-65K + Bonus + Benefits London

21524

21430

London market insurer looking for a qualified actuary from a capital modelling back ground for a 12 month period to assist with Solvency II.

Major Reinsurance Broker looking for a Pricing Actuary to work closely with the brokers. Client facing role with excellent scope for progression.

Capital Modeller

Lloyds Reserving Actuary

£70K + Bonus + Benefits London

21484

£80-100K + Bonus + Benefits London

21271

Pricing large/complex risks for one of the leading syndicates in the Lloyd’s market. Strong VBA/ SQL/ C# essential.

Re-insurer seeking ReMetrica Modeller with strong technical skills, to design, build and maintain the internal capital model as part of a team. Occasional business Travel.

Unique opportunity with a niche Lloyd’s Syndicate for a nearly/ newly qualified Actuary. Broad lines of business, with potential to move between the Actuarial functions in the medium term.

Buy-out Actuaries

Head of IC

Principal - Life Reinsurance

£50-120K + Bonus + Benefits London

Up to £200K + Long Term Incentives London 21272

Up to £150K + Benefits + Bonus London

Innovative insurer seeking to grow successful buyout team with a number of individuals, pricing/BD/transaction experience preferred. Great opportunity to join major investor in the sector.

Unique opportunity to head successful growing team in the Investment consulting arena. The right candidate will have natural gravitas and leadership skills, and able to present a clear vision for future growth.

Management consultancy seeking an individual who is technical and client facing. Role involves leading existing programmes, working closely with the CEO in developing analysis, and driving the vision for improvement and expansion.

Director Covenant Advisory

Qualified Life Actuary - Change

Senior Investment Consultant

£100-150K + Market Leading Bonus + Benefits London 21504

c.£80K + Bonus + Benefits Midlands

Up to £140K + Benefits + Bonus London

21185

21485

Pensions Director sought with specific covenant expertise. Senior role within growing highly regarded team that also provides bespoke funding solutions and de-risking options to their client base of large and medium corporates.

21474

21563

21202

Commercial individual sought for exciting change role within UK Life assurance co. Knowledge of cutting edge actuarial techniques, valuation and reporting, and product development essential. Strong communication, people management and development skills essential.

Global consultancy seeking a Senior Investment Consultant at a Senior Manager level to take on and develop their existing portfolio of large corporate clients. CFA or FIA candidates will be considered - technical expertise, practical experience and in depth market knowledge are essential.

Director Non-Life Actuary Consultant - Paris

Risk Manager – Kuala Lumpur

International Roles Capital Modelling Actuary - Cologne Up to 80K€ + Benefits + Bonus

21571

RM 250K + Bonus + Benefits 21446

Consultancy seeking to grow their business on the Capital Modelling side. Role involves support with implementation of Solvency II requirements, project management and business development. Excellent communication skills and solutions oriented mind set needed.

Up to 150K€

International consultancy group seeking for a French speaking P&C Actuary to co-head the NonLife Practice. The right individual will have strong commercial and technical skills, and experience in the development of a team.

Global Life Insurer is looking for a Risk Manager to support the CRO in the risk management process. Background in Actuarial Science essential, proficiency in Malay highly desirable.

Director – Life - Cologne

Senior Life Actuary - Risk Manager - Paris

RM 300-400K + Bonus + Benefits

Up to 170K€

21508

Due to sustained growth an experienced actuary is now sought by an International consultancy. M&A, Solvency 2, and reporting skills are required, as well as the ability to manage multiple varied projects.

Up to 120K€

21433

Chief Actuary – Kuala Lumpur 21343

21574

Large international insurance group seeking an experienced Life Actuary to work in an international environment. The right individual will have experience working on Internal Models, SII, ORSA, EV.

Leading International Insurer looking to strengthen GI team. Looking for a qualified Actuary to manage and build the team. Pricing knowledge desirable. Long term incentive share options.

For a confidential career discussion please contact us on +44 (0)207 332 5870 or actuarial@mansionhouse.co.uk Mansion House FP.indd p45_ACT.05.14.indd 45 1

09:31 29/04/2014 11:43

We can help you

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Pricing Actuary London

circa £100,000 plus bene¿ts

Our client is looking for a Reinsurance Pricing Actuary for their specialty lines function where you will be handling the provision of analytics to underwriters and brokers. The responsibilities would include providing analytics for Reinsurance on specialty classes and recommending reinsurance structures and strategies and also aligning the structure with risk appetite and market capabilities. You will design and develop new Reinsurance products within the specialty division and building models to analyse the value of a reinsurance structure, identifying areas of optimisation and make recommendations to stakeholders. You will also help with the modelling to derive the capital impact of different reinsurance structures on underwriting risk. The ideal candidate will have Lloyds experience, as well as Reinsurance exposure. You should have excellent modelling skills and be able to liaise with senior stakeholders in a credible manner. This is an excellent opportunity at a top tier client for growth and progression in the Reinsurance space.

Contact Rob Bulpitt

Rupert AndrewRickard Cannon

Director Actuarial, Pensions Head of of Actuarial, Insurance & Insurance RiskManagement Management Pensions Risk 020 7092 3237

Manager Actuarial&Non-Life and Actuarial,of Pensions Insurance Insurance Risk Management Risk Management 020 7092 3219 3262

rob.bulpitt@eamesconsulting.com

rupert.rickard@eamesconsulting.com andy.cannon@eamesconsulting.com

Office Number

For current opportunities please visit

+44 (0)20 7092 3200

www.eamesconsulting.com

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SHAPE OUR FUTURE STRATEGIC DEVELOPMENT ACTUARY – BIRMINGHAM £85-95,000 + CAR + BENEFITS (RELOCATION AVAILABLE) Whatever your personal and professional ambitions are, we believe that you can achieve great things. We’re Wesleyan. We provide financial advice and solutions for the specific needs of doctors, dentists, teachers and lawyers. We have a 170 year history of looking forward. Help drive this momentum by being the catalyst for fresh ideas and influence the next chapter in our history. This is a unique opportunity to step into a newly created role – identifying, managing and overseeing actuarial aspects of our strategic growth program - becoming a major driving force in ensuring Wesleyan meets its commercial goals. Pulling on your knowledge in up-to-date technical actuarial practices, having successfully led teams in a highly commercial environment, you will have developed the skills required for this role. You will oversee the Product Pricing team, be a key influencer with senior stakeholders, and have your finger on the pulse with statutory and regulatory changes in the external market – continually monitoring product developments within the financial services industry. Interested in finding out more? Visit www.wesleyancareers.co.uk or email louise.lee@wesleyan.co.uk

we are all about you

May 2014 • THE ACTUARY 47 www.theactuary.com

p47_ACT.05.14.indd 47

29/04/2014 14:46

Appointments NON-LIFE HEAD OF PRICING - LONDON MARKET

CAPITAL ACTUARY - LONDON MARKET

CAPITAL MODELLING MANAGER

£ excellent package

up to £90k + bonus + benefits

£ excellent + bonus + benefits

NON-LIFE LONDON

STAR1842

NON-LIFE LONDON

STAR1856

NON-LIFE LONDON

STAR1847

Specialist (re)insurance Group seeks a pricing expert to be responsible for pricing all lines of business. You will develop actuarial assumptions, and assist the Syndicate Actuary in developing business modelling and reporting processes.

Leading London Market insurer and reinsurer is seeking a qualified non-life actuary with experience of Remetrica to support the on-going use and future development of the Group’s internal model.

Seeking a part qualified or qualified actuary with significant GI experience to manage the Internal Model, researching and developing new innovative enhancements to ensure a market leading capital model.

CAPITAL PRINCIPAL - LONDON MARKET

SENIOR MANAGER - CAPITAL MODELLING

CLIENT-FACING CAPITAL

up to £120k + bonus + benefits

£ excellent + bonus + benefits

NON-LIFE LONDON

STAR1855

NON-LIFE LONDON

STAR1851

NON-LIFE SOUTH EAST

STAR1731

Our client is seeking a talented capital modeller to take the internal model use to the next level and play a key part in the continuing development of this high profile business function.

Our client is seeking a qualified non-life actuary to lead the delivery of a wide range of capital modelling and capital management solutions.

Seeking a talented individual with a detailed understanding and experience of actuarial and risk modelling software to identify client needs, proposing and demonstrating software solutions.

CASUALTY PRICING ACTUARY

ACTUARIAL MANAGER - BERMUDA

RISK MANAGER

£ excellent + bonus + benefits

BMD excellent + bonus + benefits

£ excellent + bonus + benefits

NON-LIFE LONDON

STAR1839

NON-LIFE BERMUDA

STAR1848

NON-LIFE LONDON

STAR1854

Market leader seeks actuary with strong interpersonal skills and experience of traditional reinsurance pricing for casualty business, including exposure rating and experience rating.

Leading professional services firm is seeking a qualified non-life actuary to focus on risk and capital management work with specialty and reinsurance clients.

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

ACTUARIAL DEVELOPMENT MANAGER

COMMERCIAL LINES PRICING

LIFETIME VALUE PRICING

up to £65k + bonus + benefits

£ excellent + bonus + benefits

NON-LIFE LONDON

NON-LIFE LONDON/SOUTH EAST

NON-LIFE SOUTH EAST/LONDON

STAR1796

STAR1725 & STAR1786

STAR1876

Seeking a talented individual with a solid understanding of actuarial processes to lead as a “subject matter” technical expert and deliver continuous technical improvements to actuarial data feeds, systems and processes.

Seeking qualified and part-qualified non-life actuaries with proven pricing ability to contribute to the Commercial Lines pricing strategy, developing and presenting pricing recommendations to senior management.

An exciting opportunity has arisen within a leading insurance Group for a part-qualified non-life actuary to join its Lifetime Value pricing team where you will help to shape and develop its proposition for customers.

ACTUARIAL TECHNICIAN - GROUP CAPITAL

CASUALTY PRICING ANALYST

LONDON MARKET PRICING

up to £45k + bonus + benefits

£ excellent + bonus + benefits

£ excellent package

NON-LIFE SOUTH WEST

STAR1879

NON-LIFE LONDON

STAR1840

NON-LIFE LONDON

STAR1803

Our client seeks a part qualified non-life actuary to take responsibility for reinsurance optimisation and design. This is an excellent opportunity for a highly driven, detail focused, and self-motivated actuary.

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

REINSURANCE PRICING EXPERT

RISK ANALYST

HOUSEHOLD PRICING SPECIALIST

£ excellent package

up to £55k + bonus + benefits

up to £80k + bonus + benefits

If you are a part-qualified GI actuary with a passion for modelling, then this is an excellent opportunity to further your career with a specialist insurer by helping to develop and test the Group Internal Model.

STARVACANCIES NON-LIFE LONDON

STAR1880

Leading client seeks a high-calibre qualified actuary with significant reinsurance pricing experience, including experience and exposure rating.

STAR1883

Global financial services group is seeking a part-qualified actuary with underwriting experience to support a range of risk management projects, providing a second line of defence, in particular, for P&C risks.

NON-LIFE MIDLANDS

STAR1886

Seeking a qualified non-life actuary or candidate with underwriting/pricing experience to contribute to the advancement of the technical and market pricing capability of our client's home products line.

Antony Buxton FIA Anton

Lance Randles MBA La

Paul C Cook

Joanne Young Joa

MANAGING DIRECTOR MANAG

ASSOCIATE DIRECTOR AS

SENIOR CONSULTANT

OPERATIONS DIRECTOR OPER

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

p48-49_ACT.05.14.indd 48

NON-LIFE LONDON

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

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

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

29/04/2014 11:47

LIFE www.theactuaryjobs.com

HEALTH PENSIONS INVESTMENT £ excellent + bonus + benefits LIFE EDINBURGH

SUPERSTARS - LIFE AND INVESTMENT

DIRECTOR - LIFE INSURANCE

£ excellent package

£ excellent + bonus + benefits STAR1885

LIFE LONDON OR EDINBURGH

STAR1875

LIFE & INVESTMENT LONDON

STAR1835

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

Our client has an exciting opportunity for a talented individual with good knowledge of the life insurance industry to apply your skills on cutting edge actuarial projects in a strategic context.

Our client is seeking superstar part-qualified or qualified actuaries with life and investment experience and exceptional modelling and programming skills for a once-in-a-lifetime opportunity.

AUDIT MANAGER

FINANCIAL STRATEGY ACTUARY

SOLVENCY II ACTUARY

£ excellent + bonus + benefits LIFE EDINBURGH OR BRISTOL

£ excellent package

£ excellent + bonus + benefits STAR1873

LIFE SOUTH EAST

STAR1871

LIFE SOUTH COAST

STAR1812

Our client has a number of opportunities for part-qualified actuaries to provide independent assurance on the effectiveness of the control framework.

Leading insurer seeks a qualified life actuary to support the design and implementation of financial restructuring projects to optimise the Group Capital structure.

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

PRICING ACTUARY

REPORTING ACTUARY

HEALTHCARE REPORTING

£ excellent + bonus + benefits

£ competitive package

LIFE SOUTH WEST

STAR1852

LIFE & HEALTH SOUTH COAST

STAR1841

LIFE & HEALTH SOUTH COAST

STAR1810

Leading financial services company is seeking a qualified life actuary to take the lead on actuarial analysis, providing support for pricing, profitability reviews and special projects.

Please contact us for more details of a wide-ranging leadership role and a brilliant career opportunity for a qualified actuary with this niche insurer.

A fantastic opportunity for a part-qualified or qualified actuary within this niche insurer. Our client is ideally looking for a personable candidate with health industry experience and good knowledge of Prophet.

MODELLING ACTUARY

MODELLING ANALYST

PENSIONS ACTUARIES

£ excellent + bonus + benefits

£ depends on experience

LIFE BRISTOL

STAR1813

LIFE & PENSIONS LONDON/SCOTLAND

STAR1845

PENSIONS LONDON

STAR1846

Leading life company is seeking a qualified actuary with Prophet developing experience to take responsibility for the gate-keeping and control environment for its actuarial models.

Seeking a part-qualified modelling actuary to test a range of pension scheme asset, liability and risk models, to ensure that the model output is accurate and products are of high quality and usable.

Our client has a number of exciting opportunities for qualified pensions actuaries to strengthen the practice's actuarial and consulting capability within the London Office through involvement in marketing and new business activity.

LIFE CONSULTANT

INVESTMENT MANAGER

MARKET-FACING SCHEME ACTUARY

£ excellent + bonus + benefits

£ excellent package

LIFE LONDON

STAR1874

Global professional services firm has an exciting opportunity for a part-qualified actuary to support a wide range of assignments from Solvency II to capital management, reserving and actuarial modelling.

INVESTMENT LONDON

STAR1858

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

PENSIONS LONDON

STAR1878

A unique opportunity for a pensions actuary with significant business development experience to build a trustee practice for a leading consultancy.

Star Actuarial Futures Ltd is an employment agency and employment business

MODELLING MANAGER

www.staractuarial.com INVESTMENT DIRECTOR

LONGEVITY ACTUARY

ASSET MODELLING ACTUARY

£ excellent package

£ excellent + bonus + benefits

£ very attractive package

INVESTMENT LONDON

STAR1877

We are seeking a senior institutional investments specialist with an FIA or CFA background. The role requires a candidate with superb clientfacing, influencing and leadership abilities, and a strong knowledge of pensions investment.

STAR1888

Market-leading insurer is seeking a qualified life actuary with the ability to engage with and influence stakeholders to be responsible for the implementation of the strategic road map for its internal longevity capability.

LIFE SOUTH COAST

STAR1811

Our client has an exciting opportunity for a qualified life actuary to be responsible for leading and managing its asset modelling activity for both regulatory and economic capital purposes.

Louis Manson Lou

Irene Paterson FFA Ire

Peter Baker

Clare Roberts

MANAGING DIRECTOR MAN

PARTNER PAR

SENIOR CONSULTANT

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

p48-49_ACT.05.14.indd 49

LIFE LOCATION UPON APPLICATION

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

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

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

29/04/2014 11:47

Appointments GENERAL INSURANCE - UK Chief Actuary, CRO, Head of Capital London Paul Francis £Excellent + Bonus + Beneﬁts

Solvency II Lead Rob Bentham

I am working on a range of high-proﬁle roles requiring senior actuaries with excellent knowledge of capital, reserving and / or risk. The roles will suit actuaries from any background (consultancy, company, etc.). Ideally seeking London market experience.

An exciting opportunity has arisen within a boutique London based consultancy. The business is looking for a charismatic and technically strong candidate with strong, hands-on knowledge of Solvency II. The role will have excellent career building potential.

Motor Actuary Sarah Robins

Senior Pricing Analyst Sarah Robins

Hertfordshire £100,000 - £120,000

London (City) Up to £120,000

Southampton £70,000

My client is looking for a qualiﬁed Actuary to lead their UK motor pricing team. This is an exciting opportunity for the right candidate as they will contribute towards the company’s success in this new market from an early stage. You must be a qualiﬁed Actuary and you must have UK motor pricing experience.

My client is looking for a Senior Pricing Analyst to help manage the personal lines pricing team. You must be a nearly / newly qualiﬁed Actuary with relevant G.I. pricing experience.

Capital & Risk Analyst Rachel Kelly

London Market Pricing Rachel Kelly

London Up to £70,000 + Bonus + Beneﬁts

A global financial services organisation seeks a part / nearly qualified Actuary with strong capital modelling and Solvency II skills to join their internationally recognised team. You will work on a variety of risk and capital projects in this high profile role.

London Up to £65,000 + Bonus + Beneﬁts

Lloyd’s syndicate seeks a nearly qualiﬁed pricing Actuary for their expanding team. Working closely with the underwriters you will be responsible for maintaining and developing models and price monitoring across all lines of business.

CONTRACTS - GENERAL INSURANCE - UK Capital Actuary Elise Ogden

London £800 - £900/day

A London market client of ours is seeking a Capital Actuary to assist with heavy workload. Suitable applicants must have Lloyd’s market experience and capital modelling. Strong ReMetrica knowledge is a must.

Head of Direct Insurance Elise Ogden

North of England £700 - £1000/day

My client is seeking a pricing Actuary to join the business for a period of 5 months. Candidates must have experience of claims, underwriting, pricing, P&L and cashﬂows. Good stakeholder engagement is a must.

LIFE INSURANCE - UK Reinsurance Pricing Lead Clare Nash

London (City) £120,000 + Excellent Package

Head of Healt Healthcare David Parker

London (City) £100,000 - £120,000 + Top Package

EXCLUSIVE APPOINTMENT:- An unusual opportunity to join a growing entity. My client seeks a qualiﬁed Actuary (ideally 5 years) with prior reinsurance pricing experience. A highly visible position both internally and externally. Unrivalled career progression.

EXCLUS EXCLUSIVE SIVE APPOINTMENT:AP A ﬁrst tier global ﬁnancial services looking to appoint a senior healthcare expert to lead businesss is loo business. Reporting to the board you will have their UK K and Ireland Ire expert knowledge knowled of the UK health market and a proven track record.

Technical Risk Manager David Parker

London (City) £110,000 + Bonus + Beneﬁts

Economic Capital Actuary London Richard Howard £60,000 - £75,000 + Bonus + Beneﬁts

A rapidly growing life business is looking to bolster its CRO function with a newly created hire. Leading the embedding of the risk appetite framework you will be the risk expert for oversight of asset management, credit, market and insurance risk.

My client is looking to strengthen their economic capital team and is looking for strong actuaries at nearly / newly qualiﬁed level. Must be from a life ofﬁce or consultancy and have relevant experience in economic capital, Solvency II and reporting.

DB Pricing Actuary Richard Howard

South East £55,000 - £75,000

Valuations / Projects Actuary London (City) Clare Nash £50,000 - £60,000 + Package + Study Support

My client is looking for strong candidates to join their market leading DB pricing team. You will be a part-qualified or qualified Actuary with experience of bulk annuity pricing or pensions consulting. Must be a strong communicator and confident with clients.

Outstanding opportunity to work for a prestigious player in the market. My client seeks a part qualiﬁed Actuary to play a leading role in valuations (as well as risk and capital). Excellent academics are a must as well as strong exams passes (ideally all CTs passed).

CONTRACTS - LIFE INSURANCE - UK Solvency II Actuaries Benjamin Moses

London £800 - £1,000/day

Several of my clients are currently looking to bolster their Solvency II teams in order to meet the work load demands in 2014. Qualiﬁed actuaries with extensive capital, risk and regulation knowledge should get in touch.

Remediation Project Ani Pannell

Edinburgh £300 - £500/day

My client seeks several part qualiﬁed actuaries to assist their remediation project. The ideal candidates will have at least 4 years of actuarial experience, strong technical abilities and good communication skills.

THE ACTUARY • September 2013 www.theactuary.com

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www.theactuaryjobs.com ASIA General Insurance – UK Chief Actuary Hamza Mush

Singapore £££Competitive

Paul Francis

0207 649 9469

A large and reputable global life insurer is looking for an experienced individual to join their team in Singapore. Key focus will be to drive all actuarial initiatives and train and develop existing resources. Exciting opportunity to be part of a growing business.

Rob Bentham

0207 649 9351

Sarah Robins

0207 310 8552

Senior Manager / Director Hamza Mush

Rachel Kelly

0207 310 8579

Singapore Negotiable

Contracts - G.I. - UK

Global multinational looking for a second in line to the Chief Actuary. A diverse and exciting leadership role for someone that possesses an exceptional technical skillset in valuations and reporting. Asian experience a must.

Elise Ogden

Regional Head of Health Philip Chau

Clare Nash

0207 649 9350

As Asia’s health market is booming, one of the leading multinational insurers would like to take advantage of this opportunity to substantially expand their health business in Asia Paciﬁc; seeking an experienced health Actuary to spearhead the team.

David Parker

0207 310 8649

Richard Howard

0207 649 9356

Regional Products Manager Philip Chau

Contracts - Life Insurance - UK/Europe

Hong Kong £££Competitive

0207 649 9355

Life Insurance - UK

Benjamin Moses

0207 310 8793

Due to an internal promotion, an exciting opportunity to join a leading multinational insurer as a Products Manager has arisen. The role will initially focus more on the product governance work but will slowly transition to a more commercial role.

Ani Pannell

0207 310 8572

Head of Pricing - Reinsurance Toby Weston

Hong Kong £££Competitive

Asia Jonny Plews

+852 5804 9200

My client; a global reinsurance business seeking a senior Actuary with deep reinsurance expertise, particularly in pricing and nat cat. Superb opportunity to lead a team and develop innovative services to clients. Mandarin language skills are essential for this role.

Gary Rushton

+852 5804 9223

Toby Weston

+852 5804 9042

Capital Modelling Lead Toby Weston

Philip Chau

+852 5804 9287

Hamza Mush

+852 6086 9879

Hong Kong £££Competitive

My client is a multinational professional services ﬁrm with a strong client base in Asia. They are seeking a non-life Actuary with strong technical modelling skills (Igloo/ReMetrica preferred) and ambition to play a key part of a rapidly expanding consulting practice.

EUROPE Senior Non-Life Risk Ofﬁcer / Actuary Laurence Baken

Belgium (Brussels) Attractive Package

A great opportunity to join an insurer which is part of an international corporation based in Brussels. Experience in non-life insurance is required, to work in Solvency II implementation (modelling, reserving...). You will be reporting to the regional Chief Actuary. Excellent English speaking skills are mandatory.

Catastrophe Modelling Specialist Emina Biscevic

Germany - Negotiable €85,000 - €95,000

France Emérique Opou

+33 1 76 77 46 30

Agathe Ibazizen

+33 1 76 77 46 31

Ireland Patrick McMahon

+353 1 437 0625

Benelux Niels van Nieuwkerk

+31 20 716 8327

Julien Fabius

+31 20 716 8450

Laurence Baken

+32 24 012 249

Looking for a Cat Modelling Specialist to join a catastrophe modelling team. Your main tasks will be to develop and maintain natural catastrophe models and to evaluate and implement modelling concepts. 3-5 years of work experience required.

Germany Manuel Lovell

+49 89 2109 3362

Cat Risk Actuary - Paris Agathe Ibazizen

Emina Biscevic

+49 89 3803 8965

My client, an international consulting ﬁrm, is looking for a specialist Cat Modelling Actuary to join their non-life actuarial team. You will also be involved in internal model review, review of reserves and Solvency II. French language skills required.

Alessio Montaruli

+49 89 2109 3339

Nearly / Newly Qualiﬁed Reporting Actuary Patrick McMahon

Audrey Dresen

+41 43 508 0444

Katharina Wein

+41 43 508 0509

Paris, France €€€Competitive Package

Dublin - Ireland Up to €80,000

An excellent business with a global presence has an unique opportunity to join their small but dynamic actuarial team. You will also get involved in their Solvency II and capital management program and exposure to their UK and European business.

Actuary Reporting Niels van Nieuwkerk

The Netherlands €€€Competitive Package

Switzerland

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

Our client is an international insurance group with a presence in 20 countries worldwide. They are seeking to recruit an experienced Actuary to support the risk reporting team. You will focus on high quality reports of Solvency II and MVN results on group level.

General Contact Details:

Pricing Analyst G.I. Niels van Nieuwkerk

W www.ojassociates.com

Rotterdam €€€Competitive Package

An exciting opportunity to join an international insurance group. You will join a growing team based in The Netherlands and will have pricing responsibities for all products both in commerical and personal lines.

p50-51_ACT.05.14.indd 51

actuary@ojassociates.com

@OJAssociates

September 2013 • THE ACTUARY www.theactuary.com

oliver-james-associates

29/04/2014 11:51

www.the-arc.co.uk

The Actuarial Recruitment Company

A fresh approach Chief Actuarial Officer North London

Significant base salary plus good bonus Cardif Pinnacle is the UK insurance arm of banking group BNP Paribas, a European leader in global financial services and one of the strongest banks in the world. With 580 employees across three sites, the business underwrites a diversified book of retail insurance business through a variety of channels and has two subsidiaries. The Chief Actuarial Officer (CAO) is a board position and will report into the CEO. In addition to the dayto-day management and leadership of the actuarial department, the CAO will be responsible for setting the underwriting risk appetite for the business. Together with the CEO and Chief Commercial Officer (CCO), the successful candidate will determine the appropriate underwriting approach to all products and market opportunities and play a critical role in the creation and implementation of the Company’s strategy. The successful candidate will be a qualified senior actuary with significant post qualification experience gained within the UK thus understanding the complexities and trends with the UK markets. They must have proven leadership and management skills, as well as the ability to communicate with both technical and non-technical audiences. They will also be required to build strong relationships across the business and throughout the Group. A commercial results driven outlook and knowledge about the historical, current and future prospects for personal lines insurance markets are essential. For more detailed information, or a confidential discussion, please contact Roger Massey on +44(0)781 398 9016 or e-mail roger@the-arc.co.uk Any cvs sent to The Client, either directly or through another agency will be forwarded to The ARC

Reinsurance Broking London

General Insurance Circa £100K

Supporting the casualty lines team of this major reinsurance broker this role will suit an individual with a strong personality, excellent communication skills and a proactive approach. The work will involve reinsurance pricing using cutting edge modelling techniques, involvement in the design and pricing of non-traditional reinsurance solutions, reinsurance optimisation work, support for reinsurance renewals as well as tenders for new business. Interaction with broking clients will be expected from an early stage. Ref: ARC20120

Senior Capital Actuary London

General Insurance To £120K

This senior actuarial position will play a leading role in the development and use of the group capital model within this London Market insurer. The roleholder will liaise with business unit CEO’s and other senior management to ensure the model is developed in line with business needs. The client is looking for an experienced capital actuary with a Remetrica background to lead a team of qualified and part qualified actuaries. Ref: ARC26247

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

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