The Actuary September 2014

SEPTEMBER 2014 theactuary.com

Interview: Lord Robert Winston

The magazine off the actuarial profession

The difficulties of prediction

GeneraI insurance Dealing with the risk of inflation

International New strategies for Africa’s growing economies

Soapbox The Actuary

Environmental impact of fracking

MONEY IN THE PIPELINE Financing renewable energy assets

September 2014

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Appointments

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THE ACTUARY • May 2013 www.theactuary.com

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SEPTEMBER 2014

Contents

18

22

28 UP FRONT 9

SIAS events

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

OPINION 5

Editorial Kelvin Chamunorwa reflects on the current spate of global conflict and considers its cost

6

Letters Solvency II fears, value for money and communication woes

7

President’s comment Diversity in research is key to professional survival, says Nick Salter

8

Soapbox Francis Lobo outlines the environmental impact of fracking

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

COVER: NEIL WEBB

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With returns of more than 8% in the post-construction phase, lower-bracket risk-takers are entering the market

FEATURES

AT THE BACK

18 Interview: Robert Winston

33 Books

Angus Macdonald and Sharon Maguire find out if the world-renowned scientist, Labour party peer and TV presenter deserves his reputation for being provocative in his views

22 Environment: Money in

Colin Czapiewski on Leo Gough’s The Con Men: A History of Financial Crime and the Lessons that you can Learn

34 Puzzles Try the latest cryptic crossword and Mensa puzzles

the pipeline Theresa Ruhayel looks at financing renewable energy assets

37 Student Jessica Elkin spots the light at the end of the tunnel following the exams and explains what to expect when you reach that point

25 Careers: Salary survey Jonny Plews reports on the results of a recent salary survey of actuaries in Asia and how IFoA Fellows compare

28 Risk: Bridging the divide

38 Actuary of the future Felix Mantz of Towers Watson

Chris Lewin looks at the risk initiative between the actuarial and civil engineering professions

30 GI: The hidden risk of inflation Graham Fulcher asks if building an allowance for inflation into projections based on historical data is an overly relaxed approach

ONLINE

32 International: Africa rising Tavaziva Madzinga reports on Africa’s fast-growing economies and what this means for savings and insurance on the continent

Investment: Volatile markets in India Chinnaraja Chendur Pandian discusses a copula approach to India’s volatility index

Review: R in Insurance Markus Gesmann and Andreas Tsanakas report on the recent 2014 conference.

Visit: www.theactuary.com

WRITERS OF THE MONTH Chris Lewin wins a £50 book token for his feature on risk initiatives, courtesy of SIAS

September 2014 • THE ACTUARY 3 www.theactuary.com

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Appointments

30.5

*

We know our markets.

* million civil aviation flights take place every \HDU ZRUOGZLGH}t HTXLYDOHQW WR URXJKO\ RQH flight every second

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www.hannover-re.com THE ACTUARY • May 2013 www.theactuary.com

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Opinion Editorial theactuary.com

Publisher Redactive Media Group 17-18 Britton Street, London EC1M 5TP +44 (0)20 7880 6200 Publishing director Joanna Marsh Sub-editors Kathryn Manning Caroline Taylor News editor Vivienne Russell +44 (0)20 7324 2788 vivienne.russell@redactive.co.uk News reporter Judith Ugwumadu +44 (0)20 7324 2794 judith@redactive.co.uk Editorial assistant Tania Forrester tania.forrester@redactive.co.uk Sales manager Chris Dooley +44 (0)20 7880 8545 chris.dooley@redactive.co.uk Display sales executive Vlad Harmanescu +44 (0)20 7324 2726 vlad@redactive.co.uk Senior recruitment sales executive Emmanuel Nettey +44 (0)20 7880 6234 emmanuel.nettey@redactive.co.uk Senior designer Gene Cornelius Picture editor Akin Falope Production executive Rachel Young +44 (0)20 7880 6209 rachel.young@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, life, health and care Richard Schneider, life, Solvency II, mortality/longevity, modelling and software 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 Profession news editor Alison Jiggens +44 (0)20 7632 2172 alison.jiggins@actuaries.org.uk SIAS representative Titas Bakanauskas Editorial advisory panel Peter Tompkins (chairman), Naomi Burger, David Campbell, Matthew Edwards, Martin Lunnon, Sherdin Omar, Richard Purcell, Nick Silver, Andrew Smith

Print Polestar Colchester Circulation 25,331 (July 2013 to June 2014)

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: Alison Jiggens, The Institute and Faculty of Actuaries, Staple Inn, High Holborn, London WC1V 7QT. T +44 (0)20 7632 2100 E alison.jiggens@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.

Beyond the numbers Kelvin Chamunorwa reflects on the current spate of global conflict and considers its cost The other day my colleague asked in earnest: “What is happening to this world?”

It was an acknowledgment of the number and scale of current conflicts. Lately, mainstream media has made for depressing consumption at best, horrifying at worst.

Amidst the onslaught of bad news, it is easy to become desensitised to the plight of fellow human beings – the 300 passengers and crew who lost their lives when Malaysia Airlines flight MH17 was shot down over Ukraine in July; and those living in constant fear for their lives in other troubled areas, many of whom are our peers in the profession.

Some are drawing parallels between Europe and Russia’s tension over Ukraine, the civil war in Syria and turmoil elsewhere in the Middle East with the onset of the First World War 100 years ago.

Conflict has an economic cost. In the recent Global Peace Index report, it was estimated that the economic impact of violence was $9.8trn over the past year – 11.3% of global GDP. Had there been 25% more peace on that measure, the global economy could have achieved the annual amount required to mitigate the effects of climate change.

The cost of the Millennium Development Goals to improve health and education and alleviate poverty would also have been met. ng to recent flight disasters, the war risk Owing nce industry hasn’t insurance pared in what is been spared expected to be the most expensive yearr in the market tle, exposing the since 9/11. Claims will take years to settle, ultimate loss to future inflation. ghts inflation This month, Graham Fulcher highlights sk to insurers in the Western world as an emerging risk (p30) and Tavaziva Madzinga shines a spotlight on the hich has had its insurance market in Africa, a region which owing rapidly on challenges with stability and is now growing many measures (p32). kes another I’m optimistic that globalisation makes hat the world war unlikely, while fully aware that e can estimate causes of current strife are complex. We mate the financial impact of war, but its ultimate hat we price – the loss of human life – is one that cannot quantify.

“The economic impact of violence was $9.8trn over the past year – 11.3% of global GDP.”

Kelvin Chamunorwa Editor

© SIAS September 2014 All rights reserved ISSN 0960-457X

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Opinion Letters to the editor editor@theactuary.com

IFoA aims to deliver value for money

Learners and learned ‘In times of change learners inherit the earth while the learned find themselves beautifully equipped to deal with a world that no longer exists’ – Eric Hoffer.

That could be the epitaph to both the life assurance industry and defined benefit pension schemes. In the 1990s the former was caught out by the conflation of two events that its management had no experience of: the death of inflation and the transfer of power from the providers and professions to the consumers.

The industry would have been better run by a set of wise men with no prior knowledge of the business. With the latter, a noose had gradually been tightened round the employer by the progressive improvement in the rights of early leavers and the way surpluses were dealt with. In both cases, actuaries should have been more proactive in alerting their principals. Alas, senior actuaries were learned not learners.

‘Nearly all men can stand adversity, but if you want to test a man’s character, give him power.’ – Abraham Lincoln.

Sadly this is the cause of the problems of the Equitable, the Independent, Northern Rock and the Royal Bank of Scotland. ‘Better to remain silent and be thought a fool, than to speak and remove all doubt.’ – Abraham Lincoln.

OK, Abe, I will stop, but let me make a final point.

Will Solvency II really be a panacea? It seems to me that at a basic level it makes insolvency more likely because of the depletion of net assets by the cost of building complex models, encouraging blind belief in its output when a dose of common sense is all that’s required.

Surely it is far better to create an environment in which prudent attitude is taken to risk management and there is congruence of interests of the shareholders, senior management and traders?

Icki Iqbal 15 July 2014

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

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In response to the letter from Mr Rashbrooke on subscription rates (August 2014).

The IFoA aims to deliver value for money in all its activities.

Membership subscriptions not only pay for the core membership of the IFoA, but also provide a wide range of other services and benefits including regular newsletters, an increasing range of free events, continuing professional development (CPD) courses, forums and discussion groups, the International Actuarial Careers Network and The Actuary magazine.

Our goal is to deliver an equivalence of service to all our members wherever they are located, by means such as technology and support for regional volunteer groups. We have made many strides towards this goal, but recognise that there is more to do.

Council reviews the level of subscriptions every year taking into account our financial forecasts, changes in the services provided – such as the recent changes to the CPD scheme – and the blend of our membership categories.

We have not increased the Fellow subscription rate since 2007, a reduction in real terms of

£152, thereby providing increased value for money. The reduced rate subscription has also remained static at £69 for that period.

The changes that are being introduced to the reduced rate subscription from 1 October 2014 are twofold. First, we have introduced a new ‘retired’ category that is linked to the 2014/2015 CPD Scheme.

Members can be classified as retired if they are not in paid work that relies on their actuarial training and experience, or on their membership of the IFoA. Second, members may also apply for a reduced rate subscription if their total income from all sources, now including pensions, alongside paid work and income from investments, is less than 30 times the full subscription rate applicable to them. The key principle about the income-based reduced rate subscription, is to help those members least able to afford the full subscription rate.

The previous exclusion of pensions from the assessment of income gave rise to inconsistencies and this has now been corrected.

Derek Cribb, IFoA chief executive 15 August 2014

Communication woes There were some excellent points raised in the article on CA3 (The Actuary, August 2014), with which I wholeheartedly agree.

I am on my third attempt and, although I’ve attended the expensive exam counselling, I’m still not clear on why I’m failing.

I’d really like to know why it takes three months to mark this exam. Effectively this means that

failing CA3 delays qualification for six months, as you then need to wait another three months to find a space on another sitting.

If I worked for the IFoA, I’d keep the pass rate as low as possible in order to keep forcing people to cough up the extortionate exam fee.

Andrew Wilson 15 August 2014 See article on CA3 on page 11

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 October issue is 17 September 2014.

ALAMY

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›

Opinion President’s comment

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

NICK SALTER

Adopting an open outlook Research and thought leadership are crucial to the long-term sustainability of the actuarial profession. Because of the hard work of those member volunteers who put in the time and effort to undertake such work, we have built up a strong knowledge bank for the benefit of a diverse range of interested parties: from our members to others in society such as academics and public policy makers.

Research informs what we do as practitioners and how we do it.

It drives our communications with policy makers and provides the evidence base and voice of the IFoA. It helps to improve our professional standards and fulfil our royal charter obligations.

I believe that my theme of diversity is relevant to our research efforts in two areas.

Firstly, by working across practice areas we will strengthen our actuarial expertise by encouraging greater diversity in the subject matter that we explore.

Secondly, by adopting a global outlook on research topics, we can ensure that our high quality work remains relevant to the global issues affecting our members no matter where they are located around the world.

To help to facilitate this progression our new Research and Thought Leadership Committee (RTLC) has been established. It was designed to complement the commissioning of research by the practice boards, either directly or through working parties.

We encourage cross-practice analysis and identify any gaps in our research programme where we need intellectual capital to further actuarial science or inform the key public policy debates of the day. Themes it has identified for further investigation include new economics and cyber risk.

Some of you may have noticed that we recently advertised for a lay chair for the RTLC and the selection process is underway. It is expected that the successful candidate will bring an external and different perspective to actuarial science, complementing the expertise of our members and broadening the focus of the committee.

The IFoA already sponsors and co-sponsors research by external bodies and academics to bring other perspectives to our knowledge bank. The Actuarial Research Centre, the Limits to Growth Research from 2013 and

Diversity in research is key to professional survival, says Nick Salter sponsored research by the Pensions Policy Institute are all examples of this. We also encourage these external influences to join us at the many events that we run to aid our members in accessing the latest thinking on a variety of relevant topics, from dementia to holistic balance sheets.

By including these within our research and thought leadership programme we are encouraging access to diverse thinking and a broader range of research.

I would encourage all of you to remain up to date on all these developments not only for the area in which you practice, but also other areas.

There is real value in the work that is produced in all of the practice areas, and it is encouraging to see more and more cross-practice research being produced – like the recent examination of the social care cap by the Pensions and Long Term Care Working Party.

Our research is disseminated in a variety of ways: through the media, member newsletters, the website and at events. We will be running three key events, all of which offer members access to a diverse breadth of thinking on key topic areas. ● From 15-17 September, we are hosting the

International Mortality and Longevity Symposium in Birmingham. Academics, policy and decision makers and members from around the world will hear from sharp thinkers with expertise on mortality and longevity. ● The GIRO conference is being held at the Celtic Manor resort in Wales from 23-26 September. This year’s theme is innovation and, in addition to the sharing of research and experience, there will be consideration and discussion of future opportunities for the roles of actuaries. ● We also have our autumn lecture on 1 October in Edinburgh, where one of our newly-elected Honorary Fellows, professor Carol Jagger, will share her research and insights on healthy and unhealthy life expectancy. I am keen that we all undertake continuing professional development because we want to stay up-todate and develop our own knowledge banks, and not because it is a requirement or a chore.

There are plenty of opportunities to get access to the research output. Sharing knowledge and research across sectors and regions is beneficial to us all. Encouraging further diversity in this way will, I hope you all agree, be of even greater benefit. a

“It is encouraging to see more cross-practice research being produced – like the examination of the social care cap”

September 2014 • THE ACTUARY 7 www.theactuary.com

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›

Opinion Soapbox

FRANCIS LOBO

Fracking – the manageable risk The basic principles of fracking or hydraulic fracturing have not changed since the 1860s when a brave man dropped an explosive charge down a well to fracture hard rock and stimulate the release of oil or gas.

Today, more controlled methods use high-pressure water, chemicals and proppant, such as sand or a ceramic material, to break up rock formations and keep the gas or oil flowing into the well.

A more recent development has been to combine hydraulic fracturing with horizontal drilling, again an existing technology, which has allowed the development of oil and gas resources which would otherwise not be commercial.

The implementation of these technologies on a large scale comes with risks that need to be understood and mitigated. Most risks associated with unconventional wells are, however, similar to those for conventional wells, but there is particular public sensitivity to fracking, especially in places without any significant experience of drilling.

For either form of drilling, the risks range from vehicle accidents at the frequency end of the scale to infrequent but potentially catastrophic events, such as blowouts or drinking water contamination, with latent risks to human and animal health.

Environmental pollution is a major exposure and, if not well managed, could lead to intensified opposition to any further exploitation of the technology, political backlash and draconian regulatory requirements.

Much of the concern about the environmental impact of fracking relates to the many chemicals that are added to the frac water and that should not, but could, get into drinking water aquifers as a result of a blow out or accidental seepage.

From an insurance point of view if, in 10 or 20 years, water from fracked wells was discovered to have slowly but widely contaminated drinking water supplies with adverse health effects, the liability claims would be unquantifiable. Such pollution claims could breach the limits on the operator’s or contractor’s policies and leave large uninsured losses against companies with varying degrees of financial resilience.

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Francis Lobo outlines the environmental impact of fracking Reducing pollution The key to minimising water pollution risks is good well design, good operating, maintenance and abandonment practices. In particular, designing the well creating a minimum of two barriers, to flow between any formation that is capable or potentially capable of flowing into subsurface drinking water aquifers or the surface environment, will result in a dramatic reduction in risks associated with the well.

Other environmental risks include greenhouse and other gas emissions, the release of chemicals and the effect of dust, smells, noise and light. Air pollution should not be dramatically different from conventional energy extraction, but lower standards, mistakes or insufficient caution could result in substantial losses.

There are also risks related to the handling, storage, transport, treatment and disposal of the residuals from fracking activity which need good management.

As we have seen from reports from Oklahoma, there are also seismic risks associated with fracking. The likelihood of an earthquake depends critically on whether the area is tectonically stressed in the first place.

Water injection can increase underground pressures, lubricate faults and cause earthquakes – a process known as injectioninduced seismicity. Those caused by fracking are almost always very small, under magnitude 3.8, and often unnoticed, but injecting large quantities of water in the wrong place can cause bigger events.

None of these risks is completely exclusive to fracking, and there is extensive good practice guidance available. Fracking, however, is likely to be deployed across the world. Any industrywide structural deficiencies in design, operations, maintenance or abandonment practices could result in more widespread incidents that fuel resistance globally.

Ultimately the world’s growing demand for energy and diminishing conventional reserves suggest a strong, long-term case for the continuing recovery of oil and gas from shale.

The experience in the US and elsewhere also shows that the extent to which fracking will become viable and acceptable will depend in large part on how well risks are managed and mitigated.

“If water from fracked wells widely contaminated drinking water supplies, the liability claims would be unquantifiable”

Francis Lobo is head of energy engineering, Catlin

THE ACTUARY • September 2014 www.theactuary.com

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MONDAY 13 OCTOBER

Welcome Drinks Staple Inn Hall High Holborn London WC1V 7QJ Drinks 5.30pm Presentations 6.00pm

TUESDAY 21 OCTOBER

Jubilee Lecture and SIAS AGM Staple Inn Hall High Holborn London WC1V 7QJ Refreshments 5.30pm SIAS AGM 5.45pm Lecture 6.00pm

SOCIAL EVENT

SIAS would like to welcome new members of the Institute and Faculty of Actuaries to a cheese and wine evening at Staple Inn Hall. This event is a great way for new members to meet fellow new joiners and to learn more about the profession, the qualification process and SIAS, whilst enjoying a selection of fine wines and delicious cheeses.

The tasting will begin at 5.30pm and will be followed at 6.00pm by a series of brief talks covering the education process, SIAS and business skills.

For those of you not so new to the profession, please encourage any new joiners from your company to attend. There is no need to register in advance for this event.

JUBILEE LECTURE & SIAS AGM

Speaking at this year’s Jubilee Lecture will be Steve Webb, minister of state for pensions, and Steve Groves, CEO of annuity writer Partnership.

The UK pensions landscape has undergone a series of radical reforms in 2014, with retirees now granted greater access to their pensions pots and faced with more choices as to how to invest and spend their pensions. With the removal of compulsory annuitisation for many investors, the UK annuity market is undergoing a major overhaul as providers seek to remain competitive in the face of shifting market conditions.

Our Jubilee Lecture speakers will offer two different perspectives on the changes made to the UK pensions market, their impact to date and going forward. Steve Webb, as pensions minister in the coalition government, has overseen the creation and introduction of the new pensions rules.

Steve Groves, as CEO of one the largest UK annuity writers, has first-hand experience of dealing with the commercial effects of the rule changes.

Refreshments will be served from 5.30pm and the lecture will follow the SIAS AGM, which will run from 5.45pm to 6.00pm.

There is no need to register in advance for this meeting, and nonmembers are welcome.

There will be live tweeting throughout the talk via #SIASOct14.

Please get involved with any comments or questions for the speakers.

FRIDAY 21 NOVEMBER

Annual SIAS Dinner Save the date!

SOCIAL EVENT

Save the date for the Annual SIAS Dinner, which will be held at The HAC on Friday 21 November.

Tickets will go on sale on 13 October at 9am.

Look out for further updates over the coming weeks.

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

SAM KESTEVEN / SAM PEACH

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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

September 2014 • THE ACTUARY 9 www.theactuary.com

26/08/2014 11:00

News IFoA NEWS UPDATES FROM THE ACTUARIAL PROFESSION

Upfront Opinion CEO’s comment

Autumn lecture on longevity

Derek Cribb looks forward to GIRO and stresses the importance of diversity

Although many of us can expect to experience an extended old age, it is likely to be with longer periods of diminished mobility, cognitive function and other complex health conditions.

This presents a challenge for the ageing population, their families and carers. For policymakers, providers of health and social care services and financial services companies seeking to support any personal financial planning, there are a number of uncertainties that raise questions.

Professor Carol Jagger is the AXA professor of epidemiology of ageing at Newcastle University and is an acknowledged authority in the UK on the demography and epidemiology of ageing.

As a recently elected Honorary Fellow of the IFoA, she will address the Autumn Lecture on the complex challenges facing extended longevity and what is known about ageing trends in modern societies, including research on healthy and impaired life expectancy and ageing population projections.

Chaired by the IFoA’s new president, Nick Salter, the evening will also include the presentation of IFoA Honorary Fellowships to both Jagger and Sir Philip Mawer.

A diverse community Derek Cribb is the chief executive of the Institute and Faculty of Actuaries

members at our annual residential conferences.

I am disappointed therefore that I am not able to attend the GIRO conference this year. But on reviewing the programme of speakers – one of our most interesting and diverse yet, which includes Bank of England governor Mark Carney and author and philosopher Alain de Botton – I am very much looking forward to seeing its outputs, which will be available on the IFoA website after the event.

One of the great things about GIRO is that it attracts attendance from across the non-life community, from around the world and from outside the IFoA’s membership. Bringing such a large, diverse group of professionals together goes a long way towards promoting cross-practice learning and the spread of new ideas, which in turn facilitates the development of actuarial research and thought leadership.

Non-life – and here I am including professionals who may be working in a variety of fields such as resource and environment, investment and health and care – is the most rapidly expanding area where the actuarial skillset is being put to use. Looking specifically at the IFoA’s general insurance (GI) community, student membership is up over 60% in the past three years and GI members are now based in over 70 countries.

Over 200 people have passed their GI Fellowship exam within the past year and GI student membership is now at 27% of the IFoA’s total student population. GI is our third largest practice area – and the fastest growing.

On that note, I would like to encourage all IFoA members to look outside their current field of work and see what they can learn from actuaries working in other sectors. Let’s not get hung up on practicespecific mentality: think of your actuarial skillset and how it can be used in a wider business context. One of the IFoA’s key strengths is the diversity of its membership, another being the community feel which is amply demonstrated by our GI members.

But there is nothing to be gained from the silo approach. We must remember to reach out, across the whole of our membership and beyond, to move forward.

The GIRO conference is taking place on 23-26 September at Celtic Manor Hotel, Newport. www.actuaries.org.uk/events/residential/ giro-2014 Follow the event on Twitter at #IFoAGIRO2014

DEREK CRIBB

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It’s always a pleasure to get together with IFoA

This event will take place at the Royal College of Physicians in Edinburgh on 1 October.

To book your place, visit tinyurl.com/ojjohob

Chinese microsite to launch Autumn’s arrival heralds the launch of our brand new China microsite.

It is specifically designed to increase our visibility in China, as there is a huge benefit in our being able to communicate in Chinese with a market of such strategic importance.

As a profession we are committed to increasing international visibility and engagement with a key focus on China and South-East Asia.

The new China microsite is but one of the ongoing improvements we are making to our digital services and a key first element of our overall digital strategy, to enable users and search engines to locate our content.

THE ACTUARY • September 2014 www.theactuary.com

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26/08/2014 11:07

Five minutes with… Kathryn Morgan Member of Council Kathryn Morgan was one of a select group asked to test the IFoA’s new website, launched this month. Here she gives her opinion on the usability of the site and its look and feel “The first thing that struck me is that the newly designed website really helps to display the information that I am looking for very clearly.

This in turn meant that I found it extremely easy to use and navigate, something that I think is very important for websites.

I tested the new website on my tablet so that I could see how the new design worked. I really liked how it automatically adapted to my tablet; it’s a really responsive design.

I think the inclusion of the new sliding left and righthand navigation is a great new feature to have included and one that is very intuitive and simple to use. It is this feature in particular that made it very easy for me to find the information that I wanted.

Our refreshed website is a really fantastic step forwards towards meeting the first objective of the IFoA’s digital strategy, namely enabling user and search engines to easily find our content.

The refreshed design of the website is the perfect springboard for the following phases of the digital strategy that are to happen by the year’s end, such as the launch of our new virtual learning environment (VLE) as well as improvements to the search facility.

As an actuary based in Manchester, the VLE and the content it is to contain will be invaluable to me as a means of staying abreast of actuarial developments. The search project that is to follow is also incredibly exciting as it will seek to make over 10,000 documents easier to find. This will vastly increase the ease of access to all manner of information at the IFoA’s disposal to fellows, members and students alike.

The launch of the first phase of the website is a hugely exciting start towards a much improved digital offering.”

Kathryn Morgan: site is ‘easy to use and navigate’

CA3 (communications): the way forward

By Trevor Watkins, IFoA director of education Further to the article on the student page in the August 2014 edition, I would like to clarify some of the issues raised in respect of the core applications CA3 (communications) exam.

The purpose of CA3 is to test the candidate’s ability to communicate actuarial matters in a manner that is acceptable to a non-actuarial audience. As the article rightly points out, actuaries are not usually known for their good communication skills. However, these skills are essential for business professionals, and therefore form a key part of our qualification.

CA3 is currently tested via an online application. With more than half of our student members based overseas, we need to ensure that students are given consistent and fair treatment during their assessment. Further, there is the issue of scalability; more candidates can be assessed in an online session. Candidates now record their presentation online rather than having to wait in turn at a venue and indeed, when given a choice, many candidates deliberately opted for the online assessment over a face-to-face version. The increased capacity the online mode provides has eliminated waiting time. Indeed, a recent exam was cancelled due to lack of take-up.

Presentations are performed in front of a webcam and there are plenty of opportunities

for the candidate to demonstrate their abilities to make their presentation engaging. The examiners do appreciate that this is not the same as presenting live. Furthermore, they will not penalise candidates for any distractions that occur during their recording; this also happened during the face-to-face presentations, when occurrences such as fire alarm tests would interrupt a recording.

One major benefit of the online application is that students can play back recordings they make. This is a powerful tool for self assessment and preparation. There are a number of other tools the students can access via the application, such as the modules that explain the criteria for passing CA3, as well as a bulletin board where candidates can post questions and discuss CA3.

We encourage candidates to make full use of these tools to maximise their chances of passing.

Other resources available include our guidance documents on the pass criteria, which can be found on the CA3 page of the website.

They explain, for both the presentation and written question, how and where marks are awarded. They are based on the detailed and objective marking schedules to which the markers work. We also work closely with the Actuarial Education Company (ActEd) and would encourage candidates to use the ActEd course as part of their preparation.

The entry criteria for the CA3 examination were introduced to ensure candidates’

familiarity with the technical material. The questions are based on the concepts from CA1, which, in turn, draw on material from the core technical (CT) subjects.

Lastly, as the article says, CA3 is under review.

At an initial meeting of employer representatives, they agreed that communication skills need to be assessed. From reviewing a sample of past candidates’ submissions, the group was satisfied that the pass standard set was appropriate. However, the low pass rate needs addressing and students need more support and encouragement in their preparation for CA3. Much of this can be done at employer level but we would welcome any suggestions and feedback from employers and students as to how the IFoA can legitimately improve pass rates.

We are looking at ways in which we can improve the experience of using the application and have taken steps to improve it since it was first introduced. Less than 10% of our student population use a Mac or have firewall issues through their employer and we will always work with them to resolve any problems. At a recent Student Consultative Forum meeting, we informed the group that we were introducing a new Moodle-based virtual learning environment (VLE), which is web-based and therefore can be accessed by all students. We will look to move CA3 onto this platform once the review has taken place.

September 2014 • THE ACTUARY 11 www.theactuary.com

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News IFoA NEWS UPDATES FROM THE IFOA

Adjudication Panel hearings Michael Tobias FFA On 21 May 2014, the Adjudication Panel determined that the respondent had failed to produce sufficient records to prove participation in continuing professional development (CPD) events entered on his record. The panel dismissed an allegation that the respondent had not complied with the CPD monitoring exercise. In accordance with Rule 4.4(a)(i), the panel invited the respondent to accept the following sanctions: ● a reprimand; and ● a fine of £750.

The respondent accepted that there had been misconduct and accepted the above sanctions.

Richard John Hall FIA On 21 May 2014, the Adjudication Panel determined that the case report disclosed a prima facie case of misconduct in respect of an allegation that, between March 2013 and October 2013, the respondent in the employment of his previous employer sent

confidential material to his personal email account for no legitimate business purpose, in contravention of clause 25 of his contract of employment. The Adjudication Panel dismissed two further allegations that did not disclose a prima facie case of misconduct.

In accordance with Rule 4.4(a)(i), the panel invited the respondent to accept the following sanctions: ● a reprimand; and ● a fine of £4,000.

The respondent accepted that there had been misconduct and accepted the sanctions.

See full reports at www.actuaries.org.uk

NEWS IN BRIEF Changes to Practising Certificates Schemes Members are reminded that changes to the Practising Certificates Scheme came into effect on 1 September 2014. View the changes at: tinyurl.com/lnxjZk5

President urges remembrance Following August’s commemorations around the world, writes IFoA president Nick Salter, it seems right to take a moment to reflect on the First World War, which started 100 years ago last month. The figures are truly shocking – some 10 million soldiers died in battle as well as 7 million civilians, in a war that touched people around the globe. We all have a duty to ensure that this does not happen again, but this leaves me thinking about the good, ordinary people on both sides who gave their lives for their country. We should not forget the fallen.

Disciplinary Tribunal Panel hearings Anthony Hugh Carus FIA At a Disciplinary Tribunal Panel hearing on 24 June 2014, the investigation actuary laid the following charge of misconduct against Anthony Hugh Carus (the respondent).

Being at the material time a Fellow of the Institute and Faculty of Actuaries: 1. In November 2012, when contacted by the complainant, a solicitor representing a business (in sequestration) and the trustee in sequestration in legal proceedings against the Financial Services Authority (FSA) in the Upper Tribunal (Tax and Chancery Chamber), you prepared a report in those legal proceedings which was not expected by the complainant, and you thereafter: (a) contacted the FSA to inform it that a draft report you had created in relation to the ongoing legal proceedings was in existence; (b) your actions were intended to cause embarrassment to the complainant; (c) in doing so, you acted in a vexatious and/or malicious way.

2. In your actions at 1(a) – (c) above, you failed to maintain and observe the standards of conduct expected of a member, in breach of principles 1, 2, 3 and 5 of the Actuaries’ Code and, in any event, constituting misconduct in terms of Rule 1.6 of the Disciplinary Scheme of the Institute and Faculty of Actuaries, being

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conduct falling below the standards of behaviour, integrity, competence or professional judgement which other members or the public might reasonably expect of a member.

In respect of charge 1(a), the respondent had accepted, on reflection after the event, that it had not been appropriate for him to have contacted the FSA and had admitted that to have done so had been a mistake.

The panel found that, in the circumstances of this case, the communication which the respondent had with the FSA constituted misconduct in terms of Rule 1.6 of the Disciplinary Scheme.

In respect of charges 1(b) and 1(c), the panel did not find these charges proven from the evidence which had been submitted, and so these charges were dismissed.

The panel imposed the following sanctions in respect of charge 1(a) which it had found proven: ● a reprimand; ● costs: the panel determined that the respondent should make a payment of £5,000, inclusive of VAT, towards the costs of the Institute and Faculty of Actuaries.

Balakrishnan Subramaniam Iyer (student) At a Disciplinary Tribunal Panel hearing on

1 July 2014, the tribunal considered charges that the respondent had cheated on the Institute of Actuaries of India CA1 examination and that his behaviour had been dishonest.

The panel found the facts proven on the respondent’s admission.

In respect of the charge of dishonesty, the panel also found that charge proven by applying the legal test of dishonesty to the evidence submitted.

The panel found that the respondent’s actions were in breach of Principle 1 of the Actuaries’ Code and, in any event, constituted misconduct in terms of Rule 1.6 of the Disciplinary Scheme.

As a result of the finding of misconduct, the panel imposed the following sanctions: ● suspension from membership of the IFoA from 1 July 2014 to 3 August 2015. ● costs: having considered the conduct of both parties to the case, and taken into account the respondent’s submission on costs, the panel considered it appropriate to make an award of costs of £5,104.20 against the respondent and to require that they be paid by no later than 31 December 2014.

Full reports on the above cases, including the panel’s reasons, can be found on the IFoA’s website at www.actuaries.org.uk

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EVENTS AND CONFERENCES GIRO2014 23-26 September, Celtic Manor Resort You can still book for GIRO 2014, the premier conference for general insurance actuaries. The theme is innovation and we are delighted to announce that delegates will be able to engage in workshops and interact in real time with plenary speakers via the new free GIRO2014 app, available to download from the Apple Store and Google Play.

The app will allow you to browse the programme and delegate list, plus details of presentations, including Bank of England governor Mark Carney’s keynote talk and author and philosopher Alain de Botton’s views on ‘The ever-changing world of work’.

To book, visit tinyurl.com/n3vv4jr or email the event manager at steve.whalley@actuaries.org.uk Follow GIRO 2014 conference on Twitter at #IFoAGIRO2014

Senior Life Actuaries Workshop 30 September, 09.00 to 17.00, 30 Euston Square, London Responding to feedback from members of the Life Practice, the Life ECPD Committee is planning an autumn event aimed specifically at senior actuaries and actuarial function holders (AFH) who are preparing for the year end. This will be an interactive workshop, with an agenda built around suggestions from the senior actuary and AFH community. This event replaces the

‘CILA II’ event of previous years.

For further information, visit: tinyurl.com/jvrw4cd

Momentum Conference 2014

Model Documentation Workshop

For further information and to book, visit tinyurl.com/mhdbayx

7 October, 09.00 to 12.00,

SAVE THE DATE

3-5 December, Edinburgh International Conference Centre

Staple Inn Hall, London Producing and maintaining good-quality model documentation is an essential part of daily actuarial work. Representatives from the Prudential Regulation Authority (PRA), audit and actuarial education will explore what this entails. This seminar is particularly beneficial for those less familiar with CA2 or Solvency II. The final programme is now available.

For further information, visit: tinyurl.com/pot7gmf

2014 Actuarial Teachers’ and Researchers’ Conference 1-2 December, University of Edinburgh Further information and a call for presentations will be issued shortly.

Queries should be directed to maria.lyons@actuaries.org.uk

Keynote Speaker Announced:

Life Conference and Exhibition 2014

Steve Webb MP, Minister for Pensions will close the Conference

9-11 November, ICC, Birmingham Whether UK based or international, the Life Conference is the premier event for life insurance professionals.

The plenary sessions will give you the opportunity to hear insights from well-regarded industry and market leaders.

This year our keynote speakers include: Steve Webb MP, Minister for Pensions Nigel Wilson, CEO, Legal & General Jasmine Birtles, Broadcaster Sarah Harper, Director of the Oxford Institute of Population Ageing Andrew Roberts and Ross Walker, Economists, RBS

Sponsorship and Exhibition Opportunities Find out how your company can be involved in the Life Conference and Exhibition 2014.

Please contact: Hannah.watson@actuaries.org.uk

This will set the backdrop for a broad range of technical and non-technical workshops where you will be able to learn from, as well as challenge, knowledgeable specialists. The ideas with a broad range of professionals.

Book your place by 15 September to ensure the Early Bird Fee. To find out more information about the Conference and to book a place visit: http://bit.ly/1rDb8T0

September 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

Bowlers not ‘gutted’ by football

By Nicola Tooze On 19 June, the SIAS ten pin bowling took place in Elephant and Castle. Seventeen teams of three battled it out for the esteemed first place prize. Play went a little slower than usual, as teams took it in turn to watch the disappointing World Cup England performance between bowls.

Congratulations go to ‘I can’t believe it’s not gutter’ from Ageas Protect, who scored an impressive total of 857 over two games to take first place, with each member of the team

scoring over 100 points in each game!

Other special mentions go to Vishal Patel, who got the highest individual score for one game of 204 (five strikes and three spares) and to Alex Aiken, who found out he had qualified while at the bowling alley – and not surprisingly never finished his bowling game!

Prizes were also awarded for some impressive bowling by Palace Superbowl in their ‘World Cup’ giveaway. Many thanks go to Palace Superbowl and to all the teams that took part.

Actuaries taken to the Tower

By Bill Rayner A party of 60 visited the Tower of London to watch the Ceremony of the Keys, the daily formal closure of the Tower, a traditional practice observed for centuries.

The Company was lucky to have yeoman warder Colin Smith MBE as guide for a short walking tour of the Tower. He also arranged access to the Yeoman Warder’s Club for a buffet and drinks, a privilege for the group as visitor access is only granted by a yeoman warder personally. Throughout there was a steady flow of fascinating explanations of the history and rituals of the Tower, ranging from the gore of torture and executions to the daily working routine, and the most popular questions posed by 21st century tourists, each tale a source of (often mischievous) amusement.

The ceremony was followed with predictable military precision. Most in the party returned to the club afterwards to enjoy the hospitality and to marvel at the memorabilia collected by, and gifted to, the club over many decades.

SHOOTING FOR GOLD: Congratulations to David Luckman, an actuary who won his second gold of Glasgow 2014 in the individual full-bore rifle Queen’s Prize event. David, 38, added to the pairs gold he had won with Parag Patel at the Commonwealth Games.

Obituary: Robert Plumb

Births: Ajeet (Global Thematic Partners) and Charlotte (Mercer) Manjrekar are pleased to announce the birth of their baby boy, Theo Ravin Manjrekar, on 23 May.

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The IFoA Health and Care Board is sad to report the recent passing of Robert Plumb, long-time IFoA volunteer and member.

Robert (Bob) was well known to many health and care actuaries for his valuable insights, both from commercial and academic perspectives. Notably, he was valued as an expert in PHI – now known as income protection, and he served for many years on the Health and Care Board, helping to push forward timely and

important CPD and research for IFoA members. His work on the exam syllabus was particularly invaluable.

He will be most remembered for his willingness to put forward the ‘first question’ at a seminar – we could always count on him! Those wishing to send condolences can get in touch with Jennifer Chapin, practices manager, health and care: jennifer.chapin@actuaries.org.uk

THE ACTUARY • September 2014 www.theactuary.com

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Fundraising frenzy at Lloyds

By Bijal Patel Did you know that one in three people over 65 will die with dementia? Or that excessive drinking in mid-life doubles the risk of developing it? It is World Alzheimer’s Month and important for us all to get informed, raise awareness and challenge stigma.

A team of interns at Lloyds Banking Group (LBG) have been fundraising for Alzheimer’s Scotland and generating as much awareness as possible. They have been selling fortune cookies, running marathons, organising pub

quizzes, bag packing at supermarkets, mountain climbing, penny collecting, hosting competitions and many other activities.

The fundraising frenzy hasn’t been limited to the interns. Toby Strauss, group director for Insurance at LBG, and a host of insurance personalities within the group, along with Scottish Widows, have been eagerly training for their Prudential Ride London-Surrey 100 cycle, creating an atmosphere of generosity and team spirit from the top down. They have already raised more than £10,000 and,

together with the commercial banking team, have raised more than £32,000. This is in addition to the incredible £4 million the LBG has already raised.

Friendships have been cemented, a great time has been had by all and tons of money has been raised. Alzheimer’s Scotland’s Live Well Campaign is a fantastic programme that aims to train carers across the UK so that they have the skills and support necessary when being the prime carer for a loved one with dementia.

www.alzheimers.org.uk

Martin Miles made master

By Derek Newton On 8 July, Drapers Hall in London hosted the installation of Martin Miles as the 36th master of the Worshipful Company of Actuaries, together with Peter Thompson as senior warden and Michael Tripp as junior warden. The ceremony took place in the Court Dining Room with a dinner that followed in the Livery hall.

The Company’s chief guest at the dinner was Michael Fallon, MP for Sevenoaks and then minister of business and energy, now secretary of state for defence. Other guests of members included Greg Andrews, chief executive of Christ’s Hospital Foundation; alderman Alison Gowman, the master glover; John Dewhurst, the master tax adviser; Michael Webster, the master information technologist; and Neil Braithwaite, chairman of the Brathay Trust.

The new master thanked Michael Fallon for finding the time in his extremely busy schedule to dine with the Company, before paying tribute to his immediate predecessor as master, Charles Cowling. He highlighted Charles’s recent extraordinary achievement – running 10 marathons in 10 days. While 5,000 people have

climbed Mount Everest, more than 800 have won Nobel Prizes and more than 500 have been into space, Charles was only the 79th person to do the 10-in-10. In so doing, Charles also raised more than £65,000 for charity, including the Brathay Trust.

Martin talked about the Company’s commitment to supporting education, both mathematical and actuarial, and he took the opportunity to present prizes to Clinton Elliot and Ian Rogers for their excellent performances in last year’s actuarial exams.

Before he closed proceedings he set the Company the challenge of raising at least £200,000 a year for the next five years – which he described as a ‘Million-in-five’ challenge to put his predecessor’s paltry 10-in-10 in the shade. Martin also paid tribute to the very first master of the company, Geoffrey Heywood, who died a few weeks earlier, aged 98. He had contributed greatly to the Company – and to the actuarial profession – over many years and continued to support the Company even in his twilight years. He will be fondly remembered and greatly missed by many.

Remembering World War I R L month, actuaries who lost their lives Last d during the First World War were remembered b by the IFoA. To coincide with the centenary o the outbreak of the war on 4 August 1914, of t IFoA published a list of the names, ranks the a regiments of the 43 Faculty of Actuaries and m members and 82 Institute of Actuaries members who lost their lives in service.

A total of 198 Faculty members and 430 Institute members served in the armed forces during the 1914-1918 war.

New actuaries lauded at dinner

By James Falla and Rosie Allsopp The qualification of six new actuaries was celebrated at the annual dinner of the Channel Islands Actuarial Association (CIAA) at La Grande Mare Hotel.

More than 80 people attended, including members from the finance and public sectors.

Guest of honour was David Hare, president of the Institute and Faculty of Actuaries.

He described the critical role of the profession and the contribution actuaries make to society: “To have four new Fellows and two Associates is remarkable given our population and that we have less than 50 local members, including trainees. It must be a record,” said Francis Kehoe, president of the CIAA. “Their success reflects commitment and discipline combined with academic achievement, as actuarial exams are renowned for being most challenging.”

Mr Hare presented certificates to new Fellows Sam Langlois, Gayle Lloyd, Andy Mountford and Stacey Wilen, and Associates Carolyn Baty and Luke Mauger.

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

September 2014 • THE ACTUARY www.theactuary.com

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› GENERAL INSURANCE

NEWS ROUND-UP

Driverless cars ‘require new insurance approach’

Air disasters ‘to increase war-risk premiums by 300%’ Insurers are expected to hike war risk premiums by up to 300% following the spate of flight disasters triggered by conflicts around the world, a senior aviation insurance executive has told The Actuary.

Malaysia Airlines Flight MH17 crashed in Ukraine on 17 July after it was shot down by a surface-to-air missile as it flew from Amsterdam to Kuala Lumpur killing all 298 people on board. Fighting between rival militias at Tripoli airport and the militant attack on Karachi airport in June also fall on the war-risk market, as does half of the $100m hull loss on flight MH370, which disappeared over the Pacific Ocean in March.

Philip Smaje, global head of transportation broking and chief executive of aerospace for broker Willis, said: “In the aviation hull and liability insurance market there will be a reaction in terms of pricing levels… The abundance of capacity could limit the extent to which insurers can hike rates. But in the war risks market, certain insurers have inferred that hull war rates could go up approximately 300%.”

Towers Watson’s senior consultant Tim McMurrough agreed that the aviation war market would see rates increase quickly and significantly, with underwriters “hungry” to achieve payback. He told The Actuary that the four war-risk incidents would lead to “very material” losses for insurers as the war-risk market within aviation is small, with income of $65-$70m. “So, in the aviation war market, it looks likely that we will see significant rate increases,” he concluded.

See more at: bit.ly/1s37xtT

Government to cap fees for whiplash medical reports The fees for whiplash medical reports are to be cut significantly as part of government efforts to clamp down on insurance fraud, justice secretary Chris Grayling has announced.

It follows moves to discourage insurers from settling whiplash claims that are not backed up by medical evidence. Doctors preparing whiplash assessments are also to be prevented from offering treatment to injured claimants to ensure that incentives are removed.

From October, medical professionals can only charge £180 for an initial report, reflecting the time taken to carry out assessments and write them up. Currently, prices of up to £700 are charged, leading to concerns that they are being used to generate profit.

Grayling said: “Honest drivers have been bearing the cost of a system that has been open to abuse and it is time for a change.” The Association of British Insurers also welcomed the announcement.

See more at: bit.ly/1lj0sYg

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There needs to be “a fresh approach to motor insurance” if driverless cars are to become a feature of the UK road landscape, a senior industry leader has claimed.

The government announced that it is to explore the potential to introduce driverless cars onto UK roads from the start of next year. A review by the Department for Business, Innovation & Skills is examining feasibility, looking at the type of insurance and regulations other countries have put in place.

AA Insurance director Simon Douglas said: “Motor insurance is based on risk and much of the cost of a policy is associated with the driver – such as age, experience, past claims and convictions.

If that element is largely removed, then driverless cars could potentially attract significantly lower premiums than conventional vehicles, providing the technology that operates them is reliable and demonstrably reduces the likelihood of a collision.”

James Dalton, head of motor at the Association of British Insurers, agreed that more research on driverless cars was needed.

Graeme Trudgill, executive director at the British Insurance Brokers’ Association, said the research into driverless cars was a positive move. “Further work will need to be completed on behalf of the industry before we understand the full implications of this technology and its impact on the insurance market,” he added.

See more at: bit.ly/1tt9ocu

GI

MPs criticise government over mesothelioma review The House of Commons’ Justice Committee has criticised a government review of compensation claims for the asbestosrelated disease mesothelioma, including an agreement reached with the insurance industry to pay for some deals.

The Mesothelioma Claims report concluded that the review, which examined the law relating to compensation claims, had not been undertaken in a thorough and evenhanded manner.

Committee chair Sir Alan Beith MP said: “We listened carefully to views on both sides of an emotive and polarised debate about the process of claiming compensation for this terrible disease, caused by exposure to asbestos. We have concluded that the government’s

approach has been unsatisfactory on a number of counts.”

MPs were concerned government had not been transparent or open about the fact that its overall policy in relation to mesothelioma had been shaped in accordance with an agreement reached with insurers.

A Ministry of Justice spokesman said: “We are considering the best way to get claims settled fairly and quickly. We will consider the report’s recommendations and respond in due course.”

The Association of British Insurers said: “We make no apologies for negotiating with government a scheme, paid for by insurers, that will compensate an extra 3,000 sufferers over the next 10 years, who would otherwise go uncompensated.”

See more at: bit.ly/1sWVTFg

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

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News Industry news@theactuary.com

Solvency II: small insurers ‘could cut costs by outsourcing actuaries’

UK consultation on Solvency II launched

Scottish independence timetable ‘too short’

Many UK-based general insurers could benefit from outsourcing their actuarial function as they prepare for Solvency II to avoid the cost of the extra expertise needed, OAC Actuaries and Consultants has said

The Treasury has opened a consultation on how the government should implement the European Union’s Solvency II directive in the UK. The launch of the six-week consultation on 6 August comes after the initial plan to hold one in 2011 was abandoned as work was ongoing to finalise the Omnibus II directive that underpins Solvency II.

The timetable for Scottish independence does not give businesses enough time to make the necessary changes to workplace pension arrangements and would be significantly worse for companies that operate cross-border, according to global HR benefits and human resource consulting firm Buck Consultants.

The firm’s Coping With the Issues report outlines the workplace pensions issues that would arise from a ‘Yes’ vote in the referendum.

Businesses that run a single workplace pension scheme covering employees on both sides of the border might have to split the scheme into two parts, the report said. This would significantly change future workplace provisions, with such schemes unlikely to be replaced by defined benefit schemes.

Steven White, managing director for Europe, said: “One thing we can be confident of is additional costs, both to defined benefit and defined contribution schemes, which may suffer reduced economies of scale.” These costs would “be likely to fall across employers and employees on both sides of the border”.

Independence is expected to be implemented on 24 March 2016, 18 months after the vote.

See more at: bit.ly/1p0pCp5

The European Union’s upcoming Solvency II capital rules require all insurers to have an actuarial capability to help them assess their liabilities.

However, actuarial and financial modelling consultancy OAC warned that many firms would not have sufficient assets under management to allow them to meet the cost of the extra regulatory obligations.

Its examination of a sample of 28 firms found 17 had assets under management – the market value of the firms’ assets – of under £150m.

Speaking to The Actuary, Christopher Critchlow, consultant actuary at OAC, said: “Actuaries are not cheap and the work that needs to be done is such that you need a cross-section of skills to ensure you can provide the breadth and depth of an actuarial function for any insurer, no matter how big or small the needs. For smaller firms, therefore, it makes greater economic sense and makes for a more well-rounded actuarial service to outsource the function to specialists.”

He added that companies needed to start making preparations for these changes now “as the deadline [1 January 2016] is just around the corner and firms can’t afford to fall behind”.

See more at: bit.ly/VHRbfN

IAS19 change ‘could wipe £25bn from company balance sheets’ More than £25bn could be wiped off the balance sheet of FTSE 350 companies when proposed changes to pension accounting standards come into effect in 2017, Aon Hewitt has claimed On 15 July, the International Accounting Standards Board proposed changes to its IFRIC14 guidance, which supports the international accounting standard IAS19. Proposed changes would mean that surplus on defined benefit pension assets would no longer be recognised unless there is a realistic expectation that the company will eventually be able to have access to the surplus.

According to Aon Hewitt, around 25% of FTSE 350 companies have an accounting surplus in relation to their pension scheme that is recognised on their balance sheets. Aon said the proposed changes would have a significant impact on balance sheet calculations.

Aon’s principal consultant, Simon Robinson, said: “The big change being proposed is that in the future, when assessing the funding position of a pension scheme, companies will have to take into account the expected behaviour of the trustees. This means that they will need to recognise trustees’ potential future actions, such as de-risking exercises, that might reduce the calculated accounting surplus.”

Under the new proposals, Robinson said he expected most FTSE 350 companies with schemes that already have a surplus to reduce their balance sheets by £8bn.

See more at: bit.ly/1qtdHlb

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See more at: bit.ly/1kXPczT

Regulator yet to issue fines on auto-enrolment The Pensions Regulator revealed that it has had to take action 23 times since July 2012 to ensure that employers comply with their auto-enrolment duties. However, in its first quarterly autoenrolment compliance and enforcement report, the regulator said it had not yet had to use its powers to issue £400 fixed penalties for failure to comply.

See more at: bit.ly/1s4frDs

Reinsurance sector urged to diversify Standard & Poor’s (S&P) has advised the global reinsurance sector to diversify its business risks or face negative ratings and increased volatility in earnings between 2014 and 2015.

Increased competition has caused premiums to decline, S&P said, with the knock-on effects threatening reinsurers’ ability to maintain their financial strength.

See more at: bit.ly/1nek5LW

Top firms devote over a third of DB spending to deficits FTSE 350 companies devoted 37p out of every £1 spent on defined benefit (DB) schemes to clearing pension deficits last year, according to an examination of 220 FTSE 350 companies with DB pension arrangements by actuarial firm Barnett Waddingham.

Although deficit contributions were at their lowest level for five years, 40% of companies were still paying more towards deficits than to future pension provision for their employees.

Nick Griggs, head of corporate at the firm, said: “This is striking and illustrates just how much companies are still having to pay in order to reduce funding shortfalls. This 37p, along with the significant amounts that have been paid historically, is being diverted to pay for pensions for the generation of employees lucky enough to receive a DB pension.”

Nonetheless, the overall picture of DB funding last year was better than in previous years, according to the firm’s fourth annual Impact of Pension Schemes on UK Business report. It found that the total level of DB deficits decreased from £63bn to £56bn in 2013 because of good asset performance as well as rising bond yields.

See more at: bit.ly/1tkIJjX

September 2014 • THE ACTUARY 17 www.theactuary.com

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On my agenda features@theactuary.com

Tales of evolution Lord Robert Winston, world-renowned scientist, emeritus professor of fertility studies at Imperial College London, Labour party peer and popular TV presenter, has a reputation for being provocative in his views. Angus Macdonald and Sharon Maguire meet him to find out why

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MANUEL VASQUEZ

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It was a packed house at the Royal Society of Medicine on 15 May, when Lord Robert Winston delivered the Institute and Faculty of Actuaries Spring Lecture, on the topic of Genes, Genomics, Genetics: Human or Hubris?

Millions of TV viewers will recognise him from the vast array of largely BBC commissioned programmes. Among them the BAFTA award-winning series The Human Body, and Walking with Cavemen – a four-part documentary series about human evolution.

As the country’s leading expert on in vitro fertilisation (IVF) , he is outspoken and more than happy to venture an opinion on the commercialisation of fertility treatment via private clinics; the inadequacies of the Human Fertilisation and Embryology Authority; and is scornful of the UK government’s attempts to reform the National Health Service. In keeping with his robust reputation he is also keen to acknowledge the downside of every advancement.

Speaking to The Actuary just prior to the evening’s lecture, Winston gave an insight into the main issues currently preoccupying him, paying particular attention to the premise of uncertainty and the difficulties of prediction; both topics of great interest to actuaries.

He immediately sets the record straight in relation to sensationalist tabloid headlines that have stated with horror that certain IVF treatments will inevitably lead to ‘designer babies’. Winston insists that this is not the case. “It should be possible to use a technique that we have devised to introduce new genes into humans without using a complex technology – so you wouldn’t need to use IVF.” Any risks that would need to

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be managed would be for society, rather than scientists, to decide. They would be very different risks, he adds. “The issue is that we might be able to produce humans that have enhanced attributes, and in so doing, we may change the way humans might be in the future. That technology is nearer now than it ever has been, and with it comes all sorts of implications.”

The implications he refers to would revolve around whether it is ethically permissible to alter a patient’s DNA, and potentially that of any offspring. Are we to give scientists a free rein in manipulating our genetic blueprint via eggs and sperm?

Winston is mindful of the reasons parents may seek fertility treatment, and sees private healthcare as a problematic issue. It is, he says, a market of anxious couples and willing scientists keen to try out experimental treatment. He has gone as far as to suggest that when a symptom of infertility is initially diagnosed, IVF is automatically given despite there possibly being other, cheaper methods that are more effective, and that the

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industry watchdog is doing nothing about it.

There are, he says, “all sorts of reasons why people may decide they want to try and enhance their offspring – we send them to better schools – so we might as well give them genetic advancement in intelligence, memory or cognitive ability of some kind”. He adds that if we can train them to become outstanding athletes then we might as well consider modifying the genes that control muscle development too. Perhaps less controversial is that it may allow scientists the ability to replace faulty or ‘unhealthy’ genes. One example of this is how our genome could be altered to make future generations resistant to HIV.

Emergence of epigenetics It has often been said that knowledge of our genetics will change medicine and make health outcomes more predictable, but with a few exceptions that has yet to happen. So are we being wildly over-optimistic about scientific discoveries, of which genetics is a prime example?

Winston thinks that the whole notion of genomics is

MANUEL VASQUEZ

26/08/2014 11:13

On my agenda features@theactuary.com

“We might be able to produce humans with enhanced attributes, and in doing so we may change the way humans might be in the future”

misunderstood. “I don’t believe that it is going to be quite as important as has been claimed,” he says. “I think we will be looking at the field of epigenetics which is more to do with how we inherit certain characteristics.”

One of Winston’s primary concerns is public health and how to improve it. In this the potential for epigenetics is massive, and the idea of using it as a way of improving the environment for humans, and to ensure better health, is an area he thinks actuaries may well be interested in.

He later explains in greater detail how there is a real need for public engagement. How can we educate the population to protect their own health?

One major flaw, according to Winston, is that we are not doing the social science research we should be doing. The need to address social conditions rather than scientific ones remains a bugbear of his.

He sees diabetes (type 2) as a scourge which will more than likely double in the next 15 to 20 years, largely through obesity. Pandemics will be on the increase as the danger is more immediate with the ease and accessibility of air travel. Viruses are equally perilous as they can mutate across species. Coupled with this is the increasing ineffectiveness of antibiotics with “not really any new approaches to antibiotic medicine in recent years”.

I pre-empt his later lecture by asking about stem cell therapies, and the potential they have in the treatment and management of some illnesses. Again, this is another important field that needs far more research, and it is one that is very difficult to predict. Winston seems unsure of just how much it can achieve: “It has prospects for being really useful to develop tissues, but I’m not so sure about organs, at least not in the near future.” There are some diseases, he claims, where it is difficult to see how stem cell biology can be as helpful as it is claimed. He cites dementia as a prime example.

So where does all this leave the insurance industry?

There is currently a moratorium on the use of genetic information by insurance companies. Would Winston like to see this continued, or is there a place for some genetic

information to be utilised? Winston reverts back to his earlier premise that there is a misunderstanding of genetics.

The genome is not going to be as predictive in the way it has widely been rooted, he says, and he remains suspicious of the claims that sequencing the human genome will lead to a massive change in the way we are able to insure in the next 10 years. “The whole point is that the field is immensely complicated – the amount of data so overwhelming, that it is difficult to see how big data can be analysed in individual cases to create any useful information that might be valuable to life insurers.”

Thinking ahead Winston doesn’t believe we anticipate the future terribly well. “I may well be wrong, because you may say actuarial studies do that brilliantly, but I suspect it’s only done in a limited model”, he says. When it comes to the health of a population, “did actuaries consider and factor in 30 years ago that we could be wiped out by a pandemic infection, or that we might be destroyed by climate change?” These, he believes, are very serious questions. He sees pandemic infections as probably the greatest threat facing humans.

Climate change is certainly happening and could have a devastating effect. How could we go about deciding the effect of a 4°C rise in the temperature in Britain in the next 30 years?

Winston is convinced that we are all consumed with an arrogant view of our own ability to change the world, and that most things that come along are largely unpredictable.

When asked what role the actuarial profession might play in any of these developments he replies that it depends on whether actuaries were any better at predicting the future than anyone else. “We always believe experts can predict the future – scientists certainly can’t.”

He cites as an example, the laser, now so ubiquitous in everything from electronic devices to experimental fusion science that it shapes our modern lives. Einstein established the foundation of the laser in 1917, yet it took 50 years for someone to make one, and when they did, no-one could think of any use for it.

That’s how difficult meaningful predictions can be. a

September 2014 • THE ACTUARY 21 www.theactuary.com

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Finance Renewable energy features@theactuary.com

Theresa Ruhayel looks at financing pre-construction and operational renewable energy assets

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THERESA RUHAYEL is a structured finance analyst, product development, at REEF Partners. She holds a masters in international finance from Lund University, Sweden

To date, utility companies have been the most important and largest developers of renewable energy assets, mostly by issuing investment grade corporate bonds which are then purchased by traditional corporate bond investors. However, a new investor-base is required to finance the need for geopolitically secure, environmentally affordable and competitive energy in the 21st century economy. The market has had to diversify by seeking new investors that are able to provide capital, like pension funds and insurers.

Securitisation is the pooling of assets, typically representing the payment obligations of a number of borrowers. Renewable energy assets, such as electricity generated from onshore and offshore wind farms, solar parks and other renewable energy technologies, form potential assets for securitisation. With a weighted average life of 20-25 years, this asset class is stable, uncorrelated and its cashflows are inflation protected.

Financing new energy assets SolarCity, an American provider of energy services, announced in July 2014 the pricing of the third offering in its solar asset-backed programme. The LMC Series III, LLC is priced at $215.5m principal aggregate amount, secured by and payable solely from the cash flow generated by a pool of photovoltaic systems, an arrangement of components designed to supply usable electric power for a variety of purposes, using the sun or, less commonly, other light sources as the power source.

Elsewhere in Jädraås, Sweden, an interesting example of an onshore wind farm was commissioned in 2013. The 203 MW wind project had a total capital expenditure (CAPEX) of €360m and was innovative due to the guarantee placed by the Kingdom of Denmark on one third of the CAPEX. This allowed PensionDanmark to provide €120m in the form of 15-year synthetic loans. The loans are rated AAA thanks to the innovative guarantee by EKF. The export credit guarantee aligns the risk-profile of the loans to the Danish sovereign rating, now making pre-construction developments accessible to institutional investors without using specialised infrastructure funds.

The internal rate of return for the special purpose vehicle (SPV) is projected at 5.4%-7.9% for the project finance and 13.7%-17.7% on the equity, after tax. Furthermore, the project has benefited from hedging contracts to reduce the impact of price volatility and also shift a portion of price risk away from the developer towards risk brokers.

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Clement Weber of Green Giraffe Energy Bankers, a specialist renewable energy advisory firm, says commercial banks have been steadily used as non-recourse finance providers in the past five years, accounting for one-third to a half of the offshore wind projects globally. They typically finance up to 70% of a given offshore wind project, the remaining part being financed by subordinated loans or equity.

The equity investments have been historically borne by the large European utilities, but some of them are dropping out and pure financial players, such as private equity firms, infrastructure funds and pension funds are coming on to the market to fill the gap. As an example, the £1.2m 288 MW Meerwind offshore wind farm was financed by a mix of equity and project finance loans.

Other projects are fully equity financed, such as Dong’s €600m 252 MW offshore Gode Wind II development, announced in April 2014. Rune Birk Nielsen explained that Dong sought to frontload pre-construction CAPEX at 50%, with the remaining 50% equity investment coming from a consortium of Danish pension funds between 2014 and 2016.

The consortium of pension funds has agreed to pay the majority of its investment upfront according to agreed milestones.

The source of financing depends on the risk perceived. At an early development stage of a project, a technology or an industry, the developers usually have to bear the risk and finance it. In a sufficiently mature industry – a stage that offshore wind reached in 2006, 15 years after the first prototypes installed off the coast of Denmark – banks and some financial investors are willing to finance late development and construction.

Other financial investors and capital market sources such as project bonds, initial public offerings of portfolios and secondary market debt funds will only target de-risked operational assets.

Is there liquidity in renewable energy assets?

Industry leaders at the large-scale end say that the secondary market for the sale of solar or wind assets is certainly liquid because buyers are more comfortable purchasing an operational asset with an established income track record. There is, however, a shortage of good quality assets that are fought over by investors, and this lack of ample supply leads to higher valuations.

Recently, the European Investment Bank (EIB) held a round-table discussion on the potential interest in an EIB-wrapped

September 2014 • THE ACTUARY www.theactuary.com

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Finance Renewable energy features@theactuary.com

“As investors are witnessing returns of more than 8% in the post-construction phase, the lower-bracket risk-takers are entering the market” prospectuses for securities, all enabling comparison within the asset-classes.

3. Treatment of ABS by credit rating agencies: the ECB would like investors to be able to decide whether or not to apply the sovereign rating in their internal evaluations.

ABS in stressed economies are constrained by the corresponding sovereign rating.

Energy efficiency

securitised infrastructure fund for renewable energy developments. The investor consensus was pretty much that there is already plenty of liquidity coming from banks in the form of project finance and equity investors, and such a fund therefore would not see great uptake.

Banks are still active in the project finance market despite talk of exit in the name of improved capital ratios.

Operational solar assets refinance at lower rates A few years ago in the UK, solar developers could expect five out of every 10 applications submitted to local authorities for site development to be granted planning permission. Now, the success rate of that has decreased, diminishing the returns for developers. The reason for this is that the UK government is lowering the subsidies (feed-intariffs) in April 2015, so developers are making hay while the sun shines.

Furthermore, as investors are witnessing returns of more than 8% in the postconstruction phase, the lower-bracket risk-takers are entering the market. For solar investments, previously perceived as risky,

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required returns are greater than 8%, but the good track record on (electricity generated) cash flow has lowered perceived risks, and so expected returns are now at only 4-5%.

Asset-backed securities could also be structured on loans made available to retrofit commercial or residential buildings to high levels of energy efficiency. Smaller-bracket energy-efficiency projects are too small for institutional investors to participate in: the average retrofit for the average commercial building is in the range of $1-10m, so aggregating these projects into ABS could be useful.

The process of bringing ABS to market has improved, as originators, such as banks, need to purchase and retain at least 5% of the originated security on their books. The lower rated tranches are kept on the books, while the higher rated tranches are sold to investors, so in effect investors are offered a sound deal.

Conclusions European securitisation markets Independently of renewable energy developments, the European Central Bank (ECB) is focusing on reviving the European asset-backed securities (ABS) market, as it is highly exposed to the collateral which it has taken in its European Financial Stability Fund.

There is little activity in the European securitisation markets, with redemptions greater than issuances. The ECB sees ABS as a method of credit creation, transmitting monetary policy into the real economy, and is proposing three areas of change:

1. Excessive regulatory capital charges: the European Commission is proposing to halve the capital charge for AAA-rated Type 1 ABS to 2.1% and increasing this charge down along the ratings bands (4.2% AA, 7.4% A, 8.5% BBB).

2. Transparency and standardisation requirements: transparency of loan-level data, central database depositories and standardised

As securitisation is not an asset class in itself, but a useful financing method to pool future streams of income, the key to successful investment lies in understanding the macroeconomic factors and analysing the underlying asset-class, which holds true for any market.

Securitisation is a simple and useful method for re-financing operational new energy assets, as we have seen in the ABS issuances by SolarCity. The photovoltaic solar panel market is considered a mature asset-class, with lower risks.

Comparing the competitive and innovative dynamics of the telecommunications industry with the energy industry, Michael Liebreich of Bloomberg New Energy Finance points out that the cost of producing electricity from solar has fallen at a faster rate than the rate of change in the telecoms industry of delivering mobile telephony – which challenges our perception of the change that is possible in the energy markets. a

NEIL WEBB

26/08/2014 11:15

Profession Remuneration features@theactuary.com

CAREER COMPARISON Some months ago, during a meeting with Derek Cribb, chief executive of the Institute and Faculty of Actuaries (IFoA), it was decided to undertake a salary survey of actuaries in Asia to understand how the fortunes of Fellows of the IFoA compare to those of other professional bodies. The goal was to raise awareness of the popularity of the UK profession throughout the continent.

For many professionals contemplating a career move, one of the most common considerations is salary. It is therefore no surprise that one of the most frequently asked questions is “what is the market rate for my experience?” and that the majority of these people are interested in maximising this number.

Many of the generic salary guides published online are vague and ignore the many variables of life. So to answer the question accurately, albeit in a rather uninformative manner – you are worth whatever a company is willing to pay you. If salary is high on the priority list, a more suitable question should be “Which companies would be willing to pay me the most?” A Fellow of the UK profession need look no further than the Asian markets.

Within Asia, there is a rapid increase in the demand from insurers for skilled actuaries. The multinationals are

Jonny Plews reports on the results of a recent salary survey of actuaries in Asia, how IFoA Fellows compare and why

Figure 1 Average annual salary for qualified actuaries in Asia by country of qualification £160,000 £140,000

UK US Australia

£120,000 £100,000 £80,000 £60,000 £40,000 £20,000 0

3-5 years’ post-qualification experience

6-9 years’ post-qualification experience

10+ years’ post-qualification experience

growing, the local firms are developing in complexity, and each year new companies are being formed. However, it is not just actuaries that are needed, it is those with the ability to communicate complex actuarial concepts in layman’s terms to non-actuaries. Firms nowadays are using actuarial analysis as an integral component towards their general strategy, and to add to this, actuaries are working in an increasingly wide variety of functions – finance, risk, marketing, strategy, research and so on.

There is no shortage of actuaries in Asia, but finding those with the right communication skills is difficult.

Actuaries there have traditionally worked in back office statutory-focused roles. Combined with the fact that English is most people’s second, third or even fourth

“The UK qualification is designed to teach students to communicate complexity... in Asia it is this rare talent that employers are looking for” language, it is clear why many actuaries in Asia lack this proficiency. To meet this demand, employers look elsewhere around the world, and as a result many actuaries are relocating. There remains, however, a shortage of actuaries with these skills.

The UK qualification is designed to teach students to communicate complexity, through both the exams and in practical application. This skill may be taken for granted in the UK, but in Asia it is a rare talent that employers are looking for. Of course there are also many actuaries from other parts of the world who naturally have this skill.

However the level of training provided through the UK qualification provides an advantage.

The salary survey covered 883 qualified actuaries based in Asia and the results are summarised in Figure 1.

On average, the annual salary for a UK actuary in Asia was £13,000 higher than for the US equivalent, and £6,500 higher than the Australian. On top of this, UK actuaries in Asia were the highest paid in each post-qualification experience bracket compared to the others. The results were as we expected. a

Overall average Jonny Plews is an actuarial recruitment consultant based in Hong Kong

September 2014 • THE ACTUARY www.theactuary.com

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Risk management RAMP features@theactuary.com

BRIDGING THE DIVIDE Chris Lewin looks at the risk initiative between the actuarial and civil engineering professions

For the past 20 years, actuaries and civil engineers have been working together on risk management. Starting with the development of a methodology known as RAMP (risk analysis and management for projects), the work has broadened out to include strategic, operational and enterprise risk. This article outlines the results and indicates how actuaries might be able to use them in the financial services industry and elsewhere.

History The RAMP guide, first published in 1998, covers the management of risks in change projects, large and small. It was later recommended by HM Treasury for the government’s own projects and rolled out to government departments. We also published guides related to the management of strategic risk (2006), a framework for implementing

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enterprise risk management (2009), and recommendations on handling uncertainty (2011). A few months ago, we learned that our guides on project risk and strategic risk are being used by London’s Crossrail in its own risk management systems.

Components of enterprise risk Bringing all this work together, we summarised the components of enterprise risk into the form shown in Figure 1: The double lines between the three components represent the overlaps between them, and the double line round the whole triangle represents the dynamic interface between enterprise risks and the risks of the outside world. Each of the three components is normally managed by separate groups of executives, but there should also be concentration at the centre on the overall risk faced by the enterprise.

RAMP RAMP is an iterative process, which is applied in gradually increasing depth as the development of a project proceeds. It is particularly useful when employed from the very start, while alternative projects are being considered and there is a need to evaluate the risks in each of them. The process emphasises the need to reduce uncertainty, by conducting a methodical and focused search for additional relevant knowledge. The guide covers the production of a risk register, but calls for it to be constructed in greater depth than is common practice, for example by treating assumptions as risks and indicating connections between different risks. Criteria are proposed for determining whether possible risk mitigation actions would be cost effective.

Special attention is paid to catastrophe risks.

To aid decision-makers, it is suggested that

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CHRIS LEWIN leads

the risk management initiative between the actuarial and civil engineering professions

scenario analysis is carried out, illustrating the value of the project if various key scenarios occur, and leading to a single risk-adjusted net present value that represents the value of the project after allowing for risk. The results can be presented in a simple diagram such as Figure 2.

The left-hand section illustrates the net present value of the project before risk mitigation and the right-hand side shows the corresponding value if risk mitigation actions are implemented. In each section, the net present values from five scenarios, A to E, are shown, where A is ‘as expected’ and the other four scenarios illustrate the results if specific groups of risks materialise.

The ‘risk-adjusted value’ of the project, displayed in the final column of each section, is the weighted-average of the results from the five scenarios, allowing for the estimated likelihood of each scenario group occurring as shown. In this example, the risk mitigation has not only brought the outcome for each scenario within the board’s level of risk tolerance for the project but it has also increased the risk-adjusted value of the project, even after allowing for the cost of the mitigation actions.

STRATrisk Our guide to the management of strategic risks is colloquially known as STRATrisk and was underpinned by a Bristol University study based on interviews with directors and senior executives, mainly in the construction industry. The guide stresses the need for effective board leadership and commitment, and suggests that a short list of up to 10 strategic threats should be drawn up for the

Figure 1 Components of enterprise risk

Strategic risk

Project risk

Operating risk

board to monitor regularly, as well as a short list of key opportunities. A participative open culture involving the entire staff is recommended, with two-way communication about emerging risks, as well as organisational learning and knowledge sharing. The guide also recommends that there should be a comprehensive ERM framework, with a central organisational focus on risk. Among other aspects, the risks already embedded in the organisation should be studied, such as the use of mathematical models that do not reveal extreme events, or erroneous spreadsheets and inadequately understood computer programmes. A section of the guide deals with self-inflicted strategic risks, such as those that could follow from cutting out a layer of management or from giving insufficient attention to risks identified already.

Some useful tools for managing strategic risks are described, including horizon scanning, concept mapping, pattern recognition and risk grouping.

Figure 2 Scenario analysis

Value of project in different scenarios

£M

Before mitigation +50

After mitigation Riskadjusted value

+30 60%

+20 10% C

A 0 B 10%

Riskadjusted value

+27 65% +13.9

+16 15% D

-50 -50

E 5% -70

+17 10% C

A B 10% -23

+23 10% D

+18.6 E 5% -13 Risk tolerance

Enterprise risk management We know that most boards understand the concept and desirability of having a holistic enterprise risk management framework, but we also realise that many organisations have found difficulty in introducing one.

We have therefore produced a comprehensive guide to implementing such a framework in any business, covering organisational principles and the details of a central focus on risk.

The other topics discussed include uncertainty, risk appetite and capacity, scenario analysis and stress testing, responses to risk, risk governance and developing an action plan. There is also a section on managing a list of common operating risks, which we drew up following a Southampton University study on operating risks in the energy, transport, waste management and water industries.

This list includes reputation damage, problems with IT systems, reductions in demand, customer service problems, supply chain issues, malevolent third parties and numerous risks we identified relating to staff and finance.

Applications in financial services and other industries The results of our work have potentially wide applications in a variety of businesses, with appropriate adjustments for the particular context. In financial services, for example, there are many projects that could usefully be managed by RAMP, including IT schemes and the launch of new products, and many strategic risks that could be managed by applying the concepts and tools of STRATrisk.

Those insurance companies that do not yet have a fully comprehensive system of enterprise risk management might be able to benefit from the framework we recommend, using it as a checklist of the action which is needed. Moreover, a new field of possible application is now opening up.

Last year, the Financial Reporting Council consulted about strengthened risk-reporting requirements for listed companies, which call for deeper analysis and the use of models, scenario analysis and stress testing.

If actuaries become involved in helping companies to comply with the new requirements, the results of our work may provide a useful background for all concerned. a For further references, see full article online at www.theactuary.com/features

September 2014 • THE ACTUARY www.theactuary.com

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General insurance Inflation features@theactuary.com

With inflationary pressures reappearing in several economies, Graham Fulcher questions whether building an implicit allowance for inflation into projections based on historical data is an overly relaxed approach

THE HIDDEN RISK OF INFLATION GETTY

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GRAHAM FULCHER

is a managing director at Towers Watson

In my view, awareness of inflation goes hand in hand with understanding the operations of an insurance company because the assumption of inflation risk is fundamental to the basic premise of property and casualty insurance.

Breaking the insurance transaction into its simple components, an insurer accepts a fixed premium today in exchange for a promise to pay an uncertain amount in the future, contingent on an insurable event occurring.

The risk of writing the business can be divided into two parts. The first is insurance risk – the contingency of whether the insurable event occurs and the uncertainty about the nominal amount of the claim (expressed in today’s prices). The second is a financial risk – the impact of inflation on the actual amount of the claim at the time of payment. Every time an insurer writes an insurance contract, therefore, it is giving an implicit, contingent inflation hedge to the policyholder.

Hidden menace Economic circumstances have meant that many actuaries today have spent their working careers in a world where price inflation has largely been a side issue. It would not be unreasonable on their part to wonder whether it is really worth expending much effort to model inflation effects more precisely.

But, looking back at UK inflation levels over the past 250 or so years, there have been only two periods where inflation has been low and stable for more than 10 years – the early 20th century and now. The current period of inflation is clearly anomalous. At the start of the last century, open trade, reduced tariffs and price controls, the rise of global capital flows and a stable monetary supply all contributed to the previous period of passive inflation. Many at the time expected the conditions to continue indefinitely, for example dismissing worries of a major European conflict as ‘impossible’. And we all know what happened then.

To a degree, many arguments for continuing low inflation are similarly open to question now, where interest rates have been suppressed by huge amounts of quantitative easing.

Current practice The vast majority of insurers around the world are already making some allowances for inflation in their business models. But with it having been a relatively minor consideration in recent years, the danger is that approaches may have become somewhat formulaic. Current practice tends to be dominated by firms that are making an implicit projection of claims

inflation from their historical claims data.

In stable markets, such as we have been experiencing, this may be sufficient. But any of the following ‘what if’ scenarios could quickly invalidate extrapolated inflation assumptions: ● if the beginnings of a European recovery lead to an upturn in economic activity, which affects claims frequency trends; ● costs of medical care and the use of medical services change substantially; ● if claims farming and changing social attitudes increase litigiousness further; ● a geopolitical event leads to an oil or commodity price-related shock; ● central bankers overreact to the emerging threat of devaluation.

A broad brush approach also makes it very difficult to understand how different parts of the business are affected by inflation and how to react to inflationary changes effectively.

Experience shows that the tentacles of inflation reach far beyond claims reserves into a whole gamut of areas, including reinsurance adequacy, the company’s solvency position and broader business strategy. Moreover, just as important as recognising where the impact of inflation may be greater, is that dependencies between claims inflation and price and wage inflation may be very small in some classes of business.

inspect residual plots by calendar period to see if there is an observable pattern – highlighting a systematic failure of the model. Another option is to adjust triangles for suspected historical claims inflation and look for any remaining calendar period effects.

Data and mathematical models will take companies some way along the road to understand the impact of claims inflation better. But expert judgment, based on a solid understanding of the nature of the risks in a portfolio and of the internal and external claim drivers, is a key additional ingredient in setting appropriate claim inflation allowances which needs to include super-imposed inflation, as well as pure economic inflation. Otherwise, a range of potentially important contributing factors can be missed, including:

External changes ● legislative changes resulting in an increase or

decrease of legal expenses; ● new medical diagnostic guidelines; ● jury decisions and court interpretations; ● change in local/global economic/geopolitical

environment.

Internal aspects ● portfolio cleansing; ● change in business strategy;

Modelling and knowledge

● changes in the claims department;

Various modelling approaches could assist companies to start to get a better handle on their inflation exposure.

A step forward in modelling accuracy is to explicitly account for claims inflation. This involves creating reserving triangles based on paid claims, as incurred claims already include some unknown expectation of inflation.

Extracting past inflation patterns from these models gives the level of paid claims in real terms, from which a real terms best estimate of reserves can be derived. Then, by factoring in estimates of future payment patterns and inflation, the best estimate reserves will include an explicit allowance for future price or wage inflation.

Even better is to make use of statistical methods, such as generalised linear models (GLMs) applied to claims triangles, which can help to separate origin, development and calendar period effects. Calendar period effects are not just explainable by claims inflation, but anything in the data that has an effect in the calendar period direction.

A good way to see if these effects need modelling is to fit development factor methods (that assume the same development pattern for each origin period) in the usual way, and

● new claims handling software.

Superimposed inflation and claims culture ● improved risk management – for example,

fire safety, car security, rules for alcohol consumption in vehicles; ● increase in awareness on accessibility of compensation, for example via social networks; ● strong lobbying from victim associations.

Potential blind spot One of the lessons learned from the banking crisis was that low interest rates, increasing and uncorrelated house prices and low unemployment had become regarded as business as usual. Many of the quants working in the sector had never experienced anything different, and built and traded on increasingly complex mathematical models of risk that completely ignored the binary risk of a change in the macroeconomic environment.

Similarly, many insurers, and the actuaries that work in them, have only ever worked in a period of low and predictable inflation. Let us not repeat the same mistakes – for example by developing sophisticated stochastic reserving models that ignore the binary impact of a move to a different inflationary environment. a

September 2014 • THE ACTUARY www.theactuary.com

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31

26/08/2014 11:17

International Strategy features@theactuary.com

AFRICA RISING Tavaziva Madzinga reports on Africa’s fastgrowing economies and what this means for savings and insurance on the continent

Over the past few years, I have seen

the financial services industry across the vast African continent transform, with the regulatory landscape tightening and consumers’ awareness growing. In future, a burgeoning middle class will mean more disposable income, although the cost of living is also generally on the increase.

Over time, these factors will mean people in Africa will increasingly seek to protect themselves from the risks that can affect their income and assets. One of the best ways that they will achieve this protection is through savings and insurance, increasing the demand for these products on the continent in future.

Africa has had its challenges. In the past, political and civil instability, poverty, limited infrastructure and poor governance has held back many countries. In recent years, many African countries have been breaking these barriers and moving forward, resulting in strong macro-economic growth and rapid financial regulatory reform.

The insurance services we see now in Africa have come a long way from what was offered, say, 50 years ago.

Today, the lines of who provides insurance are blurred as non-traditional competitors such as telecommunications providers and banks now take a significant portion of the population’s share of pocket.

The once small African insurance market is now expanding at a steady pace and the opportunity lies in developing innovations to meet customers’ ever-growing sophistication. Actuaries who understand the market’s growth potential will be able to develop targeted products that cater specifically to customers’ needs. In turn, this will help to restore faith in the insurance industry across Africa.

Role of mobile technology The future is digital, whichever direction you look. It is a reality of business, whether on mobile phones or via the internet. An increasing number of products and services will be distributed through digital platforms as customers continue to move towards having more control over their finances.

Businesses will need to evolve and

32

invest significantly to meet this growing need, which will only get more sophisticated. Businesses have to continue to invest in products to keep up with the consumer demand.

In Kenya, where the insurance penetration rate is below 3%, the rapid growth of mobile technology has resulted in products being developed that cater to people in the large informal sector. There is technology that enables customers to invest in money markets using their mobile devices. This includes those in the informal sector, a previously unexplored market. One example is in agricultural insurance, where great strides have been made with mobile applications that assist Kenyan farmers to manage the risk to their livestock and crops.

Nigeria also has a low insurance penetration rate, but it has a substantial population – by far the largest in Africa and seventh largest in the world – and a GDP greater than that of South Africa. The potential in Nigeria is colossal.

To harness these opportunities, insurance products have to be easy to access and to understand. In terms of access, a great proportion of the population across Africa now own mobile phones. Distributing insurance products through mobile phones to the informal mass market offers exciting opportunities. Here, customer self-service is encouraged and the opportunities for cross-selling are numerous.

Mobile network operators (MNOs) have the potential to reach a large number of customers through extensive physical and virtual networks at a low cost. MNOs can control a wide range of communication channels that are able to support promotions, sales and enrolment in insurance policies. In this way, MNOs are able to enhance the way claims handling and customer service is executed by the insurance companies in order to deliver more value to the customer.

African financial services markets are trailblazing in their proliferation of digital distribution of products.

While mobile access makes insurance products more accessible to Africa’s masses, the other key ingredient is financial education, to increase understanding of insurance and encourage sound money management.

As financially astute individuals, actuaries have much to contribute to financial education initiatives that will improve consumer knowledge and help drive insurance penetration in Africa.

Business models that may have worked in more mature markets cannot be replicated in Africa’s fast-growing economies, which require new strategies for success. a Tavaziva Madzinga is an actuary and chief operating officer of Old Mutual Africa, responsible for operations across eight African countries

THE ACTUARY • September 2014 www.theactuary.com

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26/08/2014 11:19

BOOK REVIEW

The Con Men: A History of Financial Crime and the Lessons that you can Learn by Leo Gough PUBLISHER: FT Publishing International ISBN-13: 978-0273751342 RRP: £20

“Occasionally, fraud is caused by market participants colluding to create a false market at the expense of honest players” In contrast to just a few years ago, actuaries, especially those who are executive or non-executive directors, receive an increasing volume of compliance information, and those involved in financial institutions have a significant amount relating to financial crime.

I was pleased to review a book on this subject, particularly one written in a light-hearted way as opposed to the mass of far less entertaining compliance information.

This book is based around a series of high-profile cases. However, more background is provided to give an insight into the reasons for the failures and what crucial evidence was available within the public domain before these failures came to light. The topics range from the South Sea Bubble to the still ongoing enquiry into alleged LIBOR rigging.

The aim is to provide the readers with sufficient data to understand the issues relating to past examples of fraud, and make us aware of the salient features and the telltale signs to look for. This will help to spot future fraud before it becomes serious and apparent within the public domain.

The conclusion of the book inevitably lays much of the blame at the door of the poor regulators, in all countries. It must be remembered they usually have

GETTY

p33_sep_book_review_FINAL•CT.indd 33

meagre resources. However, they tread a fine line between encouraging and controlling entrepreneurship, so perhaps they should be more consistent in their regulation rather than swinging between a strict and rigid regime. The regulators should also listen to those in the market as this could set alarm bells ringing at a far earlier stage. It is a little unfair to blame the regulators alone, however, as it is primarily up to the investors to perform their own due diligence.

Company directors are not heavily mentioned in the book, although they do have corporate responsibility for dealing with fraud. As actuaries, we have the necessary skills to look for these warning signs, and with the increasing focus on the responsibility of directors, must ensure we have our say and do not look the other way, especially when there might be business reasons, and opportunities for increased profit by doing so. However, directors are passed considerable amounts of compliance data and they must be able to spot the important issues. This role is no longer an easy one.

The examples provided within the book are wide-ranging. Some fraudulent exercises are fully premeditated and their financial returns could not possibly come to fruition without it. Naïve – and sometimes sophisticated – investors often invest their

funds too easily with very little due diligence or an appropriate examination for the evidence of fraud.

These might include Ponzi schemes where the promised returns clearly cannot be realised, and the only way for their continuance is for new investors to provide the funding to produce the returns for past investors. Their only hope is that future investors continue to be naïve enough to do the same. And so the cycle continues. Once the house of cards inevitably falls down, those within the scheme lose out completely.

Other fraud includes false, innovative and creative accounting, including accounting for non-existent stocks and other assets. The book explains that as accountancy standards vary considerably around the world, it is this environment that often provides the framework for fraud.

Occasionally, fraud is caused by several market participants. They collude to create a false market position from which the originators benefit at the expense of honest players in that market. Although the investigations are as yet incomplete, the alleged LIBOR rigging may well be an example of this.

Some frauds are not premeditated but occur when an initially honest business plan fails, perhaps for reasons beyond management control, and then an increasing spiral of additional risky ventures is undertaken to try to produce the original expectations.

This type of fraud creeps up on the perpetrators. Past successful and respected fund managers can become undone when they see an opportunity to enhance their returns and promote their reputations.

Too many investors seem to have all, or a large proportion, of their eggs in one basket. This is where basic investment principles become an important issue.

Diversification, appropriate due diligence, market information from respected sources and other ‘rules’ are often forgotten when greed plays its part, and a very high return is just too tempting. On many occasions the signs of fraud are there but are ignored. If an opportunity looks too good to be true, then it probably is.

History is often a good teacher. Although the past cannot be guaranteed to be an accurate guide to the future on all occasions, it cannot be ignored. I would recommend this book, perhaps for an easy and interesting summer read. ● Colin Czapiewski is an independent actuarial, insurance

and risk management consultant

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

September 2014 • THE ACTUARY 33 www.theactuary.com

26/08/2014 11:19

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 17 September

—

Across

HOW GREEN IS YOUR VALLEY

7

Paltry meals cooked come to a sticky end (6)

8

Residence for Capone on California craft capsized by the third variable? (8)

11 “Unseen” actress gives lame performance with Mark N (5,4) 12 Nora Meerbaum provided refuge for Arab commander (5) 13 Explosion if cable hits….and then you die?

(5,1,5) 16 Accident to scare an Arab (7)

“Earth provides enough to satisfy every man’s needs, but not every man’s greed.”

Mahatma Gandhi

18 Follow the crowd against the rule (7) 19 Spanish Governors notice style a short time before drink is poured (11) 23 We can come back in ones? (5) 24 Italian mathematician got back at introducing Long Island note (9)

1

2

3

4

7

5

6

25 One who reasons chemical maker found in Boston Airport (8) 9

8

26 Protection for two companies working (6)

10

11

Down

12

1

Doctor’s warning? Encourage something to keep air cleaner (9,4)

2

Rural situation involving ram during Friday mayhem (5,4)

3

Grassland issue completely resolved (6)

13

14

16

17

4 Chemical agent responsible for Global warming? (7,6)

18

19

21

20

5

Potentially at harm working in the long run (8)

6

Theme colour (5)

9

Waste free zones I reconditioned when isomer is incorporated (4,9)

10 Balancing greenhouse gases in butchers cannot be rural (6,7)

22

23

15

14 Capped item to warm daughter within small room retreat? (9)

24

15 See 9 17 High-brow subject traditional on Sunday (8)

© Nylfia

25

34

26

20 Support for photographer provided by journey daily (6) 21 See 1 22 Calling out heartily in the vernacular (5)

THE ACTUARY • September 2014 www.theactuary.com

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26/08/2014 11:19

HAVE YOU GOT WHAT IT TAKES? For information on IQ testing in your area, visit www.mensa.org.uk For a chance to win a £50 Amazon voucher, email your solution to puzzle 599 to: puzzles@theactuary.com by Wednesday 17 September

—

A MENSE PRIZ E PUZZL

Founding father Mensa puzzle 599

Bridge puzzle 46 Which contract?

—

A quote by Benjamin Franklin has been split up into groups. Rearrange the groups to form the quote.

What should it say?

ANG HOU TAR

BUT DOM EAS ERI HAG ON, ONE OOD SEL SNE VER WIT WIT

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.

Dining options Mensa puzzle 600

♠ AQJ10 ♥4 ♦ K74 ♣ AQ732

N W

E

♠ K8 ♥J93 ♦ AJ ♣ KJ10986

S Playing Standard ACOL, West deals and opens 1♣. The scoring is Duplicate Pairs 1.

2.

3.

4.

What mustn’t East bid?

What do you suggest East does bid?

What should the final contract be?

How do they get there?

Since the introduction of a new menu, a restaurant has served 106 portions of CAVIAR, 1050 portions of LAMB, 50 portions of SOLE, 151 portions of PLAICE, 61 portions of OXTAIL and 66 portions of OX LIVER. How many portions of DUCK has it served?

Bridge puzzle provided by David Lampert

Mixed messages Mensa puzzle 601

Handed on a plate Mensa puzzle 602

Use the letters given to complete the pyramid so that one seven letter word, one five letter word, one four letter word and three words of three letters can be read.

Place three 3-letter groups together to make a nine letter food item.

What is it?

What are the words?

ABEEEELLOSTW

P Y M

GET ORB OUT ANT MAN BUR

R SHUTTERSTOCK

p34_35_sep_crossword_puzzles_FINAL•CT.indd 35

September 2014 • THE ACTUARY 35 www.theactuary.com

26/08/2014 11:20

1

2

A M 9

puzzles@theactuary.com

SOLUTIONS FOR AUGUST 2014

5

6

E M E N

A T J U R A S R T E N E M

A I S I C S K A S

E S N

C H U

T

7

8

R H O D

E

A O I S L A N D M L N E P E I R I D 10

12

13

14

17

15

A

16

P E

L O U T

I

R A S P O D R O M B D 19

Y C O S E M I A U E E B I L I T Y W I

T I L E M A R R G Y P S

22

T S

25

27

♠ AQJ75 ♥ 43 ♦ AK2 ♣ A52

S P U

18

G 21

♠ 82 ♥ KQJ109 W 8765 ♦7 ♣ 10

4

S

11

Congratulations to this month’s winner – John Small of First Actuarial

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

3

U

© Nylfia

At the back Coffee break

N

24

T E V A G R E 26

28

Y

E

20

S A

L T E L C O X 23

L R I I D E N C E T D O Y H O U N D —

A MENSE PRIZ E Z PUZ L

Bon voyage Mensa puzzle 595

N

♠4 ♥ --

In a holiday brochure Sicily is featured on page 31, Penang is featured on page 35 and Cyprus is featured on page 44. What is the page number for Jersey?

♦ QJ10983 ♣ KQJ987

Answer: 33. The alphabetical values of the first three letters are added together to give the page number.

Congratulations to this month’s winner – Andrew Gough

E S

—

♠ K10963 ♥ A2 ♦ 654 ♣ 643

Alphabet Al lphabet order orde

Mensa puzzle 596

What letter is missing in this sequence?

Answer: U. They are the second letters of the days of the week.

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

U

O

?

E

H

R

A

Bidding W

N

E

S

4♥

x

Pass

4♠

All Pass West leads the K ♥. East ruffs and will return K ♣.

You have lost one trick and surely have three losers in the minors to come... or have you? Plan the play.

Did you go wrong at trick one by playing the 2 ♥ ? You must throw your A♥ !

You win the next trick with A ♣ and draw trumps, noting West had two. You now play A ♦ . When West follows to both aces, he is known only to have hearts left. You now throw West in with 2 ♥.

You are still not quite there. On the next heart, you don’t ruff but throw a club from Dummy and a diamond from your hand. You have now lost three tricks. On the next heart, you throw another club from Dummy and ruff in hand. Your remaining losers disappear on a cross ruff. Note that if West had the 2 ♥ , he could thwart you by ducking your heart!

Although you can’t ‘see’ the opponents’ hands, you know the exact distribution after five tricks.

Bridge puzzle provided by David Lampert

36

THE ACTUARY • September 2014 www.theactuary.com

p36_sep_puzzle_solution.indd 36

Symbolic figures Mensa puzzle 597 Which symbol should replace the question mark to continue the sequence?

Answer: $. A repeating sequence of $, %, &, X, £, + runs down the first column and up the next and so on.

$

X

£ % &

% & X £

& % $ +

+ $ % &

? X + £ £ + X $

Tunnel vision Mensa puzzle 598 A 550 yard long train, travelling at 90mph, enters a one and a half mile long tunnel. How much time will elapse between the moment the front of the train enters the tunnel and the moment the end of the train clears the tunnel?

Answer: One minute, 12 and a half seconds

SHUTTERSTOCK

26/08/2014 11:21

At the back Student student@theactuary.com

Student Jessica Elkin spots the light at the end of the tunnel following the exams and explains what to expect when you reach that point

END OF THE RAINBOW Tough month ahead of us. The short summer sitting means that there tends to be a last-minute scramble to get through study notes and plough through enough past papers to stand a chance of passing the exams. I’m convinced most (if not all) students spend the month with Queen’s song Under pressure on a loop in their heads.

As I am one of those students, I don’t particularly fancy going on about it. In fact, I’d rather not think about it at all. I suspect that September will involve copious drafting and re-drafting study schedules, watching Game of Thrones “just for a bit”, and snacking.

It’s easy to become jealous of non-student colleagues around this time. That qualification light at the end of the examinations tunnel feels like the remedy to all problems, removing the biannual stress points of exam periods and further pressure of exam results. They certainly don’t need to worry about failing, spending their evenings studying, or completing work-based skills.

However, completing the exams is not the end of the journey – actuaries must keep working to maintain and update their skills and competence.

An actuary’s work is never done The IFoA’s website optimistically states that: “Members pride themselves on their learning, not only at the point of entry to the profession but throughout their careers.” You learn in CT9 that we have a responsibility to work for the public interest, and the Actuaries’ Code requires members not to act unless they have an appropriate level of relevant knowledge and skill. As legislation, professional context and

PHIL WRIGGLESWORTH

p37_sep_student_FINAL•CT.indd 37

actuarial methods evolve over time, it is important to keep up-to-date with changes.

It’s with this in mind that the IFoA created the Continuous Professional Development (CPD) Scheme.

Once you are qualified (let’s be optimistic about this for now), you must attain a minimum level of CPD. This is defined as learning which is relevant to the nature of your role and addresses a personal development need, whether the focus is technical, professional or otherwise. It can include attendance at IFoA or company events such as workshops, training sessions or conferences and seminars. Any training or development activity involving interaction with other individuals can count as an ‘event’.

Alternatively, you can undertake private study, for example participating in an online

learning activity or researching professional or technical journals. Even time spent volunteering for the profession can be included where relevant (hint, hint). CPD is measured in hours and must be recorded on the member area of the IFoA website.

Actuaries with a practising certificate – for example, scheme actuaries – have the highest CPD requirements, currently needing to log at least 30 hours per year with 20 hours specifically relating to technical skills. And private study does not count as CPD for these members. Something to think about when making ambitious career plans.

As usual, there is further information on the IFoA’s website. Additionally, in the ‘events’ section, there are details about events and activities to assist with CPD. Note that you’ll need to provide evidence of your activities up to the required minimum of hours, and will have to log the learning outcomes from your CPD hours – much like work-based skills.

It’s reassuring that the party doesn’t end at qualification.

And that’s not all...

Since the Professional Skills and CPD requirements were combined fairly recently, they are now both part of a new umbrella CPD scheme which applies to all members of the IFoA – including the likes of us students. There are eight categories of members, each of which has different requirements. I recommend you check this out for yourself, as I’m not your mother... I don’t think.

Those of you who joined the IFoA on or after 1 March 2012 are hopefully aware that you need to complete a Professional Awareness Test online before you can sit CT9.

Then there’s the Professional Skills Course which all of us will need to sit; we’re required to take the course within a year of full qualification, or – if you joined the IFoA on or after 1 July 2006 and don’t qualify in advance – between the 4th and 6th anniversary of admission to the IFoA. Perhaps set a reminder in your calendar.

I’m really jumping the gun here, as most of us won’t need to think about any of this right now; however, it’s certainly more appealing than some other current topics. The upside to failing anything is that it’ll be even longer before you have to worry about any of this.

Ever the optimist, me. a

September 2014 • THE ACTUARY 37 www.theactuary.com

26/08/2014 11:22

ReMetrica Bringing strategy into focus When it comes to modelling effective financial strategies, ReMetrica transforms your data to help you make insightful business decisions.

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FELIX MANTZ Employer and area of work Towers Watson,

ACTUARY OF THE FUTURE

Alternative career choice? Management

pensions.

consultant or doctor.

How would your best friend describe you? As

Tell us something unusual about yourself I’ve

having great taste in socks and being rather protective of my food.

been to all seven continents, I was in the army for a year, and I managed to chop off the tip of my ear with a machete once. That was silly.

What motivates you? The pursuit of happiness – pretty much sums it all up.

Greatest risk you have ever taken? Riding

What is your personal motto? Nomen est omen

motorbikes, I guess.

– your name is your omen. As Felix means lucky, I’m pretty much sorted.

If you could go back in history, who would you like to meet? My parents and grandparents when

Name five dream companions to be stuck on a desert island with? Bear Grylls, Ray Mears,

What’s your most treasured possession? My

Steve Irwin, etc. I’d quite like to make it off the island alive!

camera - until I decided to leave it in a cab in Lima recently.

What’s your most ‘actuarial’ habit? My far too detailed and analytical budget spreadsheet.

What are the top three things you would like to achieve in your lifetime? Be happy, have a happy

If you could learn one random skill, what would you learn? How to fly a helicopter.

Favourite Excel function? Solver – it’s goal seek

they were my age.

family, and be remembered for those two things.

If you ruled the world, what would you change first? Make airline pricing less volatile.

on steroids.

How do you relax away from the office? By practising Krav Maga (an Israeli martial art) and by going to the gym. I also love travelling the world, riding motorbikes, and photography – ideally all three combined.

38

Do you know an actuary destined for greatness?

You can nominate an Actuary of the Future by emailing

aotf@theactuary.com

THE ACTUARY • September 2014 www.theactuary.com

p38_sept_AOTF_FINAL•CT.indd 38

26/08/2014 11:23

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A small Lloyd’s Syndicate is looking to recruit into their capital team. Due to a recent acquisition this team is expanding rapidly and has started an ambitious growth plan. The successful candidate will have 3 to 4 years experience in a London Market actuarial role with their most recent experience in capital modelling. ReMetrica experience is highly desirable however not essential. ben@hfg.co.uk

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£30k - £35k Basic, London A growing Lloyd’s Syndicate is recruiting into their reserving team. Due to internal movements this position has arisen in the team. This Syndicate would consider someone from a Life or Pensions background who have made good progress through their core actuarial exam. The successful candidate will have 1 or 2 years experience in a actuarial role from either a GI, Life or Pensions background. ben@hfg.co.uk

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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 September 2014 • THE ACTUARY www.theactuary.com

p39_ACT.09.14.indd 39

39

26/08/2014 11:37

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 40

THE ACTUARY • August 2014 www.theactuary.com

p40_ACT.09.14.indd 40

26/08/2014 11:45

London : Chicago : Hong Kong : Singapore : Shanghai

www.theactuaryjobs.com

Pension Actuarial Assistant / Student - Manc & Leeds 7R FÂ… SOXV ERQXV DQG EHQHÂżWV

Pension Actuarial Assistant Manager - Leeds 7R F… SOXV ERQXV DQG ÀH[ EHQH¿WV

Working as part of a very highly regarded Actuarial Consulting team, you will be responsible for delivering professional pensions consulting advice on a wide range of Corporate and Trustee pension issues. You will work on a broad range of SURMHFWV VXFK DV VWUDWHJ\ EHQHÂżW FKDQJH GH ULVNLQJ EX\ RXWV EX\ LQV HWF VXSSRUWLQJ WKH VHQLRU FRQVXOWDQWV DQG OHDGLQJ projects where required. The successful candidate will be studying for the FIA exams or equivalent and will be making strong progress toward this. You will possess excellent pension technical knowledge and have gained previous experience in working within a pensions consultancy environment.

This market leading Actuarial Consulting practice are looking to augment their team by recruiting an experienced SHQVLRQV SURIHVVLRQDO ZKR LV PDNLQJ VLJQLÂżFDQW SURJUHVV ZLWK WKH ),$ TXDOLÂżFDWLRQ HTXLYDOHQW DQG ZKR SRVVHVVHV strong client facing and communication skills. Working on a wide range of Corporate and Trustee pension issues you will have responsibility for leading and delivering a range of smaller projects, guiding the client through the process and bringing together the necessary internal resource. You will possess excellent UK pensions technical knowledge and be a commercially aware individual.

Contact dan.haynes@ipsgroup.co.uk +44 161 233 8222

Contact dan.haynes@ipsgroup.co.uk +44 161 233 8222

Risk Actuary - Continental Europe Senior Reserving Actuary - Kent $WWUDFWLYH 6DODU\ %HQHÂżWV 3DFNDJH $WWUDFWLYH 6DODU\ %HQHÂżWV 3DFNDJH $ OHDGLQJ UHLQVXUHU LV ORRNLQJ WR KLUH D TXDOLÂżHG RU QHDUO\ TXDOLÂżHG actuary for the risk management team. The main focus of responsibility LQFOXGHV WKH DJJUHJDWH PDQDJHPHQW RI QDW FDW WHUURULVP DQG RWKHU PDQ made exposures. You will also calculate the solvency capital required for the P&C catastrophe risk and will be involved in the underwriting process from a risk management perspective. The ideal candidate will KDYH VLJQLÂżFDQW NQRZOHGJH LQ 3 & LQVXUDQFH ULVN PDQDJHPHQW DQG 6ROYHQF\ ,, 1DW &DW H[SHULHQFH LV DOVR UHTXLUHG *RRG NQRZOHGJH RI 9%$ DQG SURJUDPPHV VXFK DV 6$6 0DWODE RU 5 ZRXOG EH EHQHÂżFLDO Contact phu.ngoc@ipsgroup.co.uk +44 207 481 8686

Our client, a growing specialist insurer, is looking to hire a TXDOL¿HG DFWXDU\ IRU WKHLU DFWXDULDO WHDP 7KH PDLQ UHPLW RI the Senior Reserving Actuary is to produce quarterly claims reserves and projections for captial required (including ICA and SCR). Knowledge of ORSA, Solvency II as well as an understanding of capital modelling (ideally with Igloo) would EH LGHDO 7KH FRPSDQ\ RIIHUV ÀH[LEOH ZRUNLQJ DUUDQJHPHQWV DQG D JRRG ZRUN OLIH EDODQFH *RRG FRPPXQLFDWLRQ VNLOOV combined with technical skills are expected.

Contact phu.ngoc@ipsgroup.co.uk +44 207 481 8686

/RQGRQ 2I¿FH ,36 *URXS %HYLV 0DUNV +RXVH %HYLV 0DUNV /RQGRQ (& $ -% 7HOHSKRQH (PDLO DFWXDULDO#LSVJURXS FR XN September 2013 • THE ACTUARY 41 www.theactuary.com

p41_ACT.09.14.indd 41

26/08/2014 11:46

Appointments

Eames Charity Golf Day 2014

outstanding heathland Old Course for over a century and now it is your chance to play this wonderful course.

Date: Friday 3rd October Venue: Walton Heath Golf Club Entry: Free

Entry is free, however we will ask for a donation on the day and everything collected will bene¿t Cancer Research UK.

Eames Consulting are hosting a Charity Golf Day in support of Cancer Research UK on Friday 3rd October 2014. The day will be held at Walton Heath Golf Club, Surrey, only 20 miles from London.

For further enquiries about the event, playing individually or entering a team; please contact Rob Bulpitt on 020 7092 3237 or rob.bulpitt@eamesconsulting.com

Walton Heath, ranked in the top 100 courses in the UK, is one of the most famous and prestigious golf clubs in the world. It has hosted nearly ninety amateur and professional events, including ¿ve European Opens, The Ryder Cup, the U.S. Open Qualifying and the Senior Open Championship in 2011. The World’s top players have taken on and enjoyed the challenges of the Pensions & Investments | Non-Life | Life & Health

The missing piece to your career puzzle

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

42

We look forward to hearing from you and thank you for all your support for this wonderful charity.

UK | Europe | Asia Paci¿c

www.eamesconsulting.com

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

THE ACTUARY • September 2014 www.theactuary.com

p42_ACT.09.14.indd 42

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www.theactuaryjobs.com

Life Insurance Roles Head of Life Reinsurance

Senior Manager

£90k - £130k Basic, London

£90k - £140k Basic, London A leading big four consultancy is looking for a qualified life actuary who can join their growing life practise. This role would be ideal for someone who has previous consultancy experience or someone who would like to gain experience away from an insurer. The successful candidate will help lead the new projects and be involved in winning new business. sophia@hfg.co.uk

This leading composite reinsurance broker is looking for a qualified actuary with market experience to lead their growing life reinsurance team. You will work closely with brokers and actuaries across the business to get involved in both the technical pricing work and consulting with new and existing clients. This role is ideal for someone with a commercial outlook. sophia@hfg.co.uk

Development Manager

Reporting Manager (exclusive) £60k - £80k Basic, South Coast

£55k - £75k Basic, London

This newly created role is a great opportunity for a qualified actuary looking to work within an evolving systems team. You will get the opportunity to work with Life and General Insurance systems and manage a small, diverse team. If you are an experienced modeller, quick at picking up a variety of systems and enjoy a challenge, then this is the role for you. sophia@hfg.co.uk

This niche insurer is looking for life actuary to manage their Reporting team. You will be managing five students and liaising with the Chief Actuary and WPA to make key decisions within the business. This is ideal for someone with a breadth of reporting experience who wants more responsibility and a role where you can get hands on exposure to the whole business. sophia@hfg.co.uk

Risk Actuarial Analyst

Reporting Actuarial Analyst £40k - £55k Basic, London

£35k - £50k Basic, Surrey

The risk function of this group life insurer is looking to for an ambitious and driven life actuarial student. You will gain exposure to market risk and Solvency II and gain a unique insight into the business. The team consists of actuaries, risk professionals and accountants and so this role can really broaden you experience. sophia@hfg.co.uk

If you haven’t yet had the chance to rotate internally within your company then this is your chance to gain experience in reporting. Given this is such a integral team in the company, you will be involved in the quarterly and yearly valuations as well as being mentored by some of the best actuaries in the industry. sophia@hfg.co.uk

Contract Roles Solvency II Actuaries

Capital Contractor £700 - £900, 18 months, London

£750 - £1200 per day, 6 - 12 months, London

A valuable client is looking for an analytical / Solvency II, nearly / newly qualified actuary, to help develop the analytical capabilities of their new software. The role also involves producing reports on findings and providing training and supervising other actuaries. To be successful you must have a strong knowledge and understanding of the general insurance market, be familiar with SII requirements in particular with SII reporting and have a very technical background as well as high level of communication skills. rupa@hfg.co.uk

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 S2 knowledge and know how to apply it practically to the business as well as experience in reviewing and challenging the model. rupa@hfg.co.uk

Contractor

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

£700 - £900 per day, 6 months, London This leading insurer is looking for a contractor, for an initial 6month period subject to extension to work within their actuarial team. You will be involved across the business with Pricing, Reserving, Capital and ERM work. In order to be successful you must have relevant GI experience. rupa@hfg.co.uk

This leading Lloyd’s syndicate is looking for a qualified reserving contractor for 6 months. The role will work closely with the pricing function and the ability to communicate with non actuaries is very advantageous. rupa@hfg.co.uk

Risk Roles Market Risk Analyst

Risk Actuary

£40k - £60k Basic, London

Up to £1,000 per day, London A leading London Market (Re)Insurer is looking for an experienced, qualified actuary to assist the CRO in building and maintaining their risk framework, quantifying the operational risk model and validating the capital model and contributing to the ORSA. The successful candidate will come from a non life insurance background and be comfortable working on both risk and actuarial projects . james@hfg.co.uk

SOPHIA CROSSMAN

JAMES KITT

ERIN O’DONNELL

Life Insurance

Risk Management

Risk Management

+44 (0) 207 337 1207

+44 (0) 207 337 1202

+44 (0) 207 337 1202

sophia@hfg.co.uk

james@hfg.co.uk

erin@hfg.co.uk

0207 337 8800

p43_ACT.09.14.indd 43

An opportunity for a Market Risk Analyst with previous experience in insurance liabilities, financial markets and derivatives to join a large UK Life Insurer. Your role will be to provide challenge to the risk management and ALM strategies already being used within the business. This role offers fantastic opportunities for development and to take responsibility for risk across all asset classes. erin@hfg.co.uk

www.hfg.co.uk

actuarialteam@hfg.co.uk

September 2013 • THE ACTUARY 43 www.theactuary.com

26/08/2014 11:50

Appointments

Exposure Management Actuary A large London market insurer is looking for an Exposure Management Actuary to join their team of six. This person will be a nearly/newly qualiĮed Actuary with ReMetrica experience and strong skills in SQL. The role will be overseeing a subsecƟon of the capital model which oversees all risks to the Group. It is a varied role with cross overs between tradiƟon Capital Modelling work and Exposure Management.

For more informaƟon please contact Victoria Cruickshank on 0207 929 7667

The number 1234 needs seven words in its usual English descripƟon, namely “one thousand two hundred and thirty four”.

Insurance Risk ExecuƟve Advisor (Manager) Life/Non-Life Leading UK management consultancy Įrm presently has an opening for a Risk Actuary to join this expanding team.

Typically responsible for delivering advisory engagements and building relaƟonships new and exisƟng. Key services Risk TransformaƟon, Risk Framework development, Risk AppeƟte, Risk MI, S2, Capital Mgt. Great career step up for newly CERA qualiĮed actuary. Based in London, salary £60k to £80k

For more informaƟon please contact Clinton Poore on 0207 929 7667

What is the smallest whole number which requires exactly three words?

For your chance to win a prize, please email your answers to London@darwinrhodes.com

Risk Actuarial Specialist UK Based FS company has an opportunity for a nearly / newly CERA qualiĮed actuary to support the Head of Risk & Compliance. Based in North of England, you will monitor and oversee operaƟonal risk and support the business in managing operaƟonal risk exposure while aligning between operaƟonal risks modelled and the business environment. Very small team, hence great exposure to all aspects of Risk Management funcƟon. EssenƟally an internal consulƟng opportunity. Salary up to £65k.

For more informaƟon please contact Adam Goodwin on 0207 929 7667

Chief Actuary (Life)

Considering a move to Asia?

Jakarta, Indonesia, Local Exec Pkg

Singapore/HK/Malaysia/China/Thailand, Dependent on Experience

Our client is expanding in Asia, they are seeking a dynamic, people orientated Life actuary to be the Chief Actuary of their new operations in Indonesia. The role will be diverse covering key actuarial responsibilities as well as building and developing the actuarial team. If you are keen to explore what this opportunity could offer you please contact clare@hfg.com.sg

The Actuarial Market in Asia Pacific is rapidly growing and we are keen to connect with you. Whether you are a part qualified actuary, nearly/newly qualified actuary or post qualified actuary who comes from either Pricing/Valuation/Risk/Capital background, it would be great to talk through the potential opportunities in Asia with you. Please contact tong@hfg.co.uk

Regional ERM Actuary

Head of Actuarial Thailand, US$150,000 plus bonus

Hong Kong, Up to HKD$1,300,000 + Bonus + Benefits

An impressive and highly entrepreneurial regional Insurer is seeking a talented ERM specialist. In this highly autonomous role you will report to the Regional Chief Actuary and liaise extensively with senior internal stakeholders across the Asia Pac business. To be considered you must be a qualified Life Actuary with PQE and direct ERM experience. Please contact graeme@hfg.com.sg

Global non-life Insurance group is seeking to hire a talented actuary who is excited to work in a developing Insurance market.

Your CV will demonstrate strong pricing, reserving and capital modelling skills as well as effective managerial skills, ideally in international markets. Superb prospects. Email jason@hfg.com.sg for more information.

Prophet Specialists Wanted in Asia

Head of Reserving Singapore, SG$150,000 - $200,000 plus bonus

Singapore/HK/China, Dependent on Experience

Our Asian clients are looking for Prophet modellers at all levels!

There is a huge need for skilled financial modellers as Insurers advance their capabilities to meet increasing customer and regulatory demands. If you have solid working knowledge of Prophet especially Prophet ALS we would be keen to hear from you. Please contact tong@hfg.co.uk

Jason Sykes Clare Bethell Graeme Braidwood Tong Yu

44

Managing Director Director Senior Consultant Consultant

Global Insurer with an enviable underwriting track record is seeking a ethnically astute actuary to join its senior management team as Head of Reserving. The incumbent will be a strong general Insurance actuary with demonstrable reserving experience and superb stakeholder management ability. This is a high profile opportunity for an ambitions professional. jason@hfg.com.sg

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

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

THE ACTUARY • September 2014 www.theactuary.com

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www.theactuaryjobs.com

Introducing Jenny Heuvelmans JENNY FOCUSES ON THE GRADUATE AND JUNIOR ACTUARIAL AND CATASTROPHE MARKETS

EXCLUSIVE | ACTUARY

GRADUATE CAT MODELLER X3

EXCLUSIVE | ACTUARIAL ANALYST

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INFO@FENASSOCIATES.COM | +44 (0)20 3322 7474

PLAN YOUR NEXT MOVE

ON THE MOVE

London &RPSHWLWLYH SDFNDJH PERMANENT

WWW.FENASSOCIATES.COM

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See latest job listings Create job alerts by email Save and email jobs from mobile Apply for jobs by saving your CV to your proďŹ le Keep track of your activity

Go to www.theactuaryjobs.com September 2014 • THE ACTUARY www.theactuary.com

p45_ACT.09.14.indd 45

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Appointments LI FE RI SK REINSURANCE ACTUARY

ACTUARIAL TEAM MANAGER

£ excellent + bonus + benefits LIFE LONDON

DIRECTOR LEVEL LIFE CONSULTANT

£ excellent + bonus + benefits STAR2064

LIFE GREATER LONDON / SOUTH EAST

£ excellent + bonus + benefits STAR2082

LIFE LONDON / EDINBURGH

STAR2080

World leader in reinsurance is seeking a qualified life actuary with reinsurance pricing experience and strong interpersonal skills to make a difference within its London-based team.

This position is responsible for managing and mentoring a team of 4-5 staff and providing expert knowledge on UK actuarial valuations, reporting requirements and the use of Prophet.

Apply your skills in projects reaching beyond traditional actuarial boundaries. Lead teams, build strong client relationships and contribute to the growth of the practice. You will be an expert in your chosen area.

SENIOR FINANCIAL RISK MANAGER

RISKY BUSINESS

LIFE CONSULTANCY

up to £90k + bonus + benefits

£ excellent + bonus + benefits

£ excellent + bonus + benefits

LIFE & RISK MIDLANDS

STAR2065

LIFE & RISK LONDON

STAR2016

LIFE NATIONWIDE

STAR2014

A fantastic opportunity to develop and enhance the ongoing implementation of best practice financial and insurance risk management.

Work in a dynamic consultancy offering risk consultancy services in a global market. As a qualified actuary, you will have considerable responsibility within client engagements and will identify new business opportunities.

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

SENIOR MANAGER - ACTUARIAL ANALYSIS

ACTUARIAL ASSISTANT - MARKETING

LIFE ACTUARY - MODEL VALIDATION

£ excellent + bonus + benefits

£ depends upon experience

£ excellent + bonus + benefits

LIFE EDINBURGH

STAR1954

LIFE SOUTH WEST

STAR1976

LIFE LONDON/SOUTH EAST/SCOTLAND

STAR1988

An exciting opportunity for a qualified actuary to join this financial analysis team, where you will provide senior actuarial input to profitability, capital and other metrics during the planning, budgeting and forecasting process.

Seeking a commercially-minded and technically adept part-qualified actuary to provide actuarial expertise within the Research and Development team, focusing on the design, development and implementation of new and innovative products.

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

SOLVENCY II OPPORTUNITIES

LIFE CONSULTING SWITZERLAND

TECHNICAL MANAGEMENT ACTUARY

up to £80k + bonus + benefits

CHF excellent + bonus + benefits

£ excellent + bonus + benefits

LIFE SOUTH WEST

STAR1961

LIFE SWITZERLAND

STAR2077

LIFE BRISTOL

STAR1947

A leading global insurer has a number of vacancies for qualified life actuaries, providing exposure to Solvency II, excellent career development potential and interaction with the wider business.

Seeking a qualified life actuary to provide advice to a wide range of clients on risk management and economic capital frameworks. Fluent German is essential.

Seeking a technically strong life actuary to take up a key role. Candidates with strong management skills and a thorough grounding in UK life insurance from a wide variety of backgrounds will be considered.

RISK ACTUARIAL SPECIALIST

PLANNING & FINANCIAL SOLUTIONS

RISK ACTUARY

£ depends upon experience

£ excellent + bonus + benefits

£ excellent + bonus + benefits

LIFE & RISK NORTH WEST

STAR2046

LIFE SOUTH COAST

STAR2043

LIFE & RISK SOUTH COAST

STAR2079

An exciting opportunity for a qualified actuary to provide technical expertise and advice in this specialist actuarial area supporting the Planning & Financial Solutions Manager in the preparation of the annual Capital Plan.

Seeking a qualified life actuary and risk expert to deliver recommendations and solutions to business problems. Flexibility in approach and strong communication skills required.

STRATEGY LEADER

INTERNATIONAL EXPANSION

REPORTING ACTUARY

£ excellent + bonus + benefits

£ depends on experience

£ excellent + bonus + benefits

Our client has an exciting opportunity for a risk expert to support the Head of Risk and Compliance in monitoring and overseeing operational risk and supporting the business in managing its operational risk exposure.

STARVACANCIES LIFE LONDON

STAR2026

Global management consulting firm is seeking exceptional insurance actuaries from any sector to join in its success. You will have a proven track record of excellence and a strong desire to move into a strategic role.

46

STAR2035

Offering exceptional life actuaries the opportunity to create a role for themselves. Tell us your strengths and build a fantastic career within a growing, ambitious company.

LIFE BRISTOL

STAR2031

Seeking a life expert to become involved in the core activities of the Actuarial Reporting Team, managing the production of actuarial results and analyses, whilst maintaining and updating relevant process and models.

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

p46-47_ACT.09.14.indd 46

LIFE SOUTH WEST

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

26/08/2014 14:24

LI FE RI SK www.theactuaryjobs.com HEALTH PENSI ONS I NVESTM ENT

£ excellent + bonus + benefits LIFE & RISK SOUTH EAST

ACTUARIAL ASSISTANT

HEALTHCARE PRICING ACTUARY STAR2050

£ competitive + good bonus + benefits

£ excellent + bonus + benefits

LIFE & HEALTH GREATER LONDON

LIFE GREATER LONDON / SOUTH EAST

STAR2078

STAR2081

Leading life company seeks a qualified actuary to lead the ongoing design, implementation and management of the Risk Framework and associated policies, control standards, processes and reporting, with emphasis on Financial risks.

Our client is seeking a qualified healthcare pricing actuary with a strong technical background and good commercial awareness. You will lead projects, generate solutions, and work with senior stakeholders in supporting strategic business solutions.

Working in a friendly team, this position is responsible for assisting with annual and interim valuations, changes to Prophet models and Prophet upgrades.

ACTUARIAL PRICING

LIFE ANALYST - CAPITAL & PLANNING

PENSIONS ACTUARY

£ excellent + bonus + benefits

£ excellent + bonus + benefits

£ excellent + bonus + benefits LIFE MIDLANDS

STAR1973

LIFE SOUTH COAST

STAR2040

PENSIONS BIRMINGHAM

STAR1983

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

Seeking a part qualified life actuary to apply quantitative skills and knowledge to identify, analyse and solve business issues whilst maintaining an understanding of quantitative systems, techniques and methodologies.

Leading independent consultancy seeks qualified pensions actuary to provide a highquality service to clients, lead new business pitches, provide strategic input and contribute to the technical knowledge of the practice.

PENSIONS AND BENEFITS MANAGER

ACTUARY - PENSIONS BUY-OUT

PENSIONS CONSULTANT

£ excellent package

£ excellent + bonus + benefits

PENSIONS MANCHESTER

STAR2027

PENSIONS BIRMINGHAM

£ excellent + bonus + benefits STAR1982

PENSIONS LONDON

STAR1942

Global financial services firm seeks a talented individual with creativity and intellectual rigour to join a multi-disciplinary team where you will provide advice to employers on pensions and other employee benefit issues.

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

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

LEADING EDGE PENSIONS CONSULTANT

MARKET-FACING SCHEME ACTUARY

RETIREMENT CONSULTANTS

£ excellent + bonus + benefits

£ excellent package

£ excellent + bonus + benefits

PENSIONS BRISTOL

STAR1957

PENSIONS LONDON

STAR1878

PENSIONS LONDON

STAR2075

Major global professional services company is seeking a pensions consultant to be instrumental in designing and maintaining a range of internal and external consulting tools at the leading edge of technological advances.

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

Global financial services firm seeks partqualified pensions actuaries to support the defined benefit and defined contribution pension plan design for a wide range of clients, ensuring alignment with the wider total reward strategy.

ACTUARIAL PENSIONS ANALYST

PENSIONS ANALYST AND TECHNICIAN

INVESTMENT CONSULTANTS

up to £30k + bonus + benefits

£ competitive + bonus + benefits

£ very competitive

PENSIONS MANCHESTER

STAR2045

Leading pensions consultancy is seeking a part qualified actuary to handle the preparation of actuarial valuations; and undertake accounting disclosures (FRS17, IAS19 and USGAAP).

PENSIONS SOUTH WEST

STAR1990

Seeking a part-qualified actuary and a candidate who has given up the exams. Both candidates will have strong technical skills in order to provide support to a wide variety of UK defined benefit pension schemes.

INVESTMENT EDINBURGH

STAR1984

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

Star Actuarial Futures Ltd is an employment agency and employment business

ENTERPRISE RISK ACTUARY

www.staractuarial.com INVESTMENT-TRANSITIONS SPECIALIST"

INVESTMENT CONSULTANT

INVESTMENT RISK SOLUTIONS

£ excellent + bonus + benefits

£ excellent + bonus + benefits

up to £40k + bonus + benefits

INVESTMENT NATIONWIDE

STAR2060

Our client is seeking a part-qualified transition specialist with exceptional attention to detail and project management skills to develop the Investment Advisory team’s knowledge on asset transitions and contribute to intellectual capital.

STAR2036

Seeking a part-qualified actuary with experience in UK pension fund investment consultancy or a background in a pensions consultancy, with some direct experience in an investment advisory role.

INVESTMENT LEEDS

STAR2024

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

Louis Manson Lou

Irene Paterson FFA Ire

Peter Baker

Clare Roberts

MANAGING DIRECTOR MAN

PARTNER PAR

SENIOR CONSULTANT

SENIOR CONSULTANT

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

p46-47_ACT.09.14.indd 47

INVESTMENT LONDON

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

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

September 2013 • THE ACTUARY 47 www.theactuary.com M +44 7714 490 922 E clare.roberts@staractuarial.com

26/08/2014 14:24

Appointments NON- LI FE RI SK SENIOR PRICING MANAGER

RESERVING - PROPERTY AND CASUALTY

FIRST ACTUARY IN THE BUILDING

£ depends upon experience

up to £80k + bonus + benefits

£ excellent + benefits

NON-LIFE SOUTH EAST

STAR1975

NON-LIFE SOUTH WEST

STAR2073

NON-LIFE SCOTLAND

STAR1993

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

Our client has an exciting opportunity for a partqualified or qualified actuary with GI Solvency II reserving experience to develop market-leading technical provisions methodologies and provide key actuarial business planning insights.

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

GI BUSINESS RISK MANAGER - MOTOR

ERM OPPORTUNITIES

PRICING - PROPERTY AND CASUALTY

£ excellent + bonus + benefits NON-LIFE & RISK LONDON

up to £95k + bonus + benefits STAR1986

NON-LIFE EAST ANGLIA

up to £80k + bonus + benefits STAR1920

NON-LIFE SOUTH WEST

STAR2072

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

Our client has a number of exciting opportunities for talented finance or insurance professionals to review, challenge and catalyse improvements to the management/mitigation of risk within a leading insurance business.

Our client is looking for a qualified actuary with commercial pricing experience to strengthen its actuarial pricing team, deriving appropriate technical premiums and underwriting analytics to support the UK business.

COMMERCIAL ACTUARY

NON-LIFE CONSULTANCY

ACTUARIAL ANALYTICS MANAGER

£ excellent + bonus + benefits

£ excellent + bonus + benefits

£ excellent + bonus + benefits

NON-LIFE LONDON

NON-LIFE GREATER LONDON

NON-LIFE SOUTH EAST

STAR2070

STAR2015 & STAR2013

STAR1972

Global insurer and financial services company seeks a qualified non-life actuary to lead the actuarial input into the Commercial lines of business, including quarterly reserving, pricing and business planning.

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

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

PRICE OPTIMISATION EXPERT

MOVE INTO ANALYTICS

INTERNATIONAL PRICING MANAGER

£ excellent + bonus + benefits

£ excellent + bonus + benefits

£ excellent + bonus + benefits

NON-LIFE SOUTH WEST

STAR1999

NON-LIFE LONDON

STAR2062

NON-LIFE WALES

STAR2061

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

Leading consultancy seeks exceptional actuaries to join its growing analytics team.

You will develop an impressive range of consulting and technical skills that will enhance your career.

Leading insurer is seeking a qualified non-life actuary to establish best pricing practice in its international operations, and to set rates as profitably as possible given specific market conditions.

NON-LIFE CONSULTANT

PRICING EXPERTISE

RISK AND CAPITAL MODELLING

up to £70k + bonus + benefits

up to £75k + bonus + benefits

up to £60k + bonus + benefits

NON-LIFE SOUTH EAST OR LONDON

STAR2057

NON-LIFE SOUTH EAST

STAR1941

NON-LIFE & RISK SOUTH EAST

STAR1969

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

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

PRICING CONSULTANT

LONDON MARKET CAPITAL

HEAD OF NON-LIFE FINANCIAL RISK

up to £70k + bonus + benefits

£ excellent + bonus + benefits

up to £110k + bonus + benefits

With a broad technical skill-set and strong consulting skills, you will work alongside leading industry practitioners, delivering cutting-edge solutions to clients across the London Market.

STARVACANCIES NON-LIFE SOUTH EAST

STAR2056

Lead projects and develop market leading pricing capabilities within this high profile consulting position. With a strong focus on the latest analytics techniques, you will have experience within personal lines.

48

STAR2049

Specialist insurer is seeking a part-qualified or qualified actuary to maintain and develop its internal model so that it continues to reflect the risk profile.

NON-LIFE & RISK FLEXIBLE LOCATION

STAR2047

Leading insurer has an unrivalled opportunity for a qualified non-life expert to lead the constructive challenge and oversight of the GI business to ensure all its risks are managed in accordance with policies and risk appetite.

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.09.14.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

26/08/2014 14:20

www.theactuaryjobs.com NON- LI FE RI SK

ACTUARIAL RECRUITMENT CONSULTANTS LOCATION: ANYWHERE

£ market leading commission structure

Star Actuarial Futures is seeking exceptional new consultants to expand its award-winning team.

You will currently be working as an actuary or actuarial student in industry, working with an actuarial recruitment consultancy firm, or working in-house with exposure to actuarial recruitment.

Candidates must possess a strong work ethic, the highest levels of integrity and a passion to deliver to a wide range of clients.

You will become part of an honest, professional and successful team with a wealth of knowledge to share.

You will be rewarded with a market-leading commission structure.

This is an exciting time to join the business in a period of growth.

Please contact us for a confidential discussion.

MANAGING DIRECTOR

M +44 7766 414 560 E antony.buxton@staractuarial.com

Louis Manson MANAGING DIRECTOR M +44 7595 023 983 E louis.manson@staractuarial.com

LONDON MARKET SPECIALIST

LLOYDS CAPITAL MODELLING / RESERVING

FINANCIAL LINES RESERVING LEAD

up to £40k + bonus + benefits

£ excellent + bonus + benefits

£ depends upon experience

NON-LIFE & RISK GREATER LONDON

STAR2039

NON-LIFE LONDON

STAR2037

NON-LIFE LONDON

STAR2034

An exciting opportunity for a part-qualified non-life actuary to move into a risk role. You will use your existing GI experience allied to strong analytical capabilities to provide second line oversight and identify risk trends.

A great opportunity for a qualified non-life actuary with London Market or Lloyd’s reserving and / or capital modelling experience to join a market leading consultancy.

International insurance firm is seeking a part-qualified or qualified non-life actuary to take a leading role in reserving for financial lines, including significant liaison with the claims team.

GI RESERVING EXECUTIVE

PRINCIPAL ANALYST - HOME PRICING

PRICING ANALYST

£ excellent + bonus + benefits

up to £50k + bonus + benefits

up to £40k + bonus + benefits

NON-LIFE MIDLANDS

STAR2028

Our client has an exciting opportunity for a part qualified or qualified non-life actuary to provide support, solutions, recommendations and advice to the GI business on a range of reserving and other financial projects.

NON-LIFE GREATER LONDON/SOUTH EAST

STAR1965

Our client is looking to hire a part-qualified non-life actuary to join its Pricing team. The role offers an opportunity to mentor more junior members of the team and deputise for the Manager as required.

NON-LIFE SOUTH EAST

STAR1963

With a focus on home insurance products, you will apply your statistical, data handling, and analytical skills to understand and explore customer behaviour, with a view to maintaining competitive advantage in the marketplace.

Star Actuarial Futures Ltd is an employment agency and employment business

Antony Buxton FIA

www.staractuarial.com PRICING MANAGER

ACTUARIAL PRICING - NON-LIFE

LONDON MARKET PRICING

£ competitive

up to £50k + bonus + benefits

£ excellent package

NON-LIFE SOUTH EAST

STAR1962

With an innovative and commercial mindset, strong analytical skills and a focus on customer needs, you will take ownership of an entire product line in this exciting and challenging role within a fast-growing organisation.

STAR1946

Leading financial services firm has a unique opportunity for a part qualified or qualified actuary to provide support and solutions to the GI business on a range of pricing and other financial projects.

NON-LIFE LONDON

STAR1803

We have an exciting opportunity for a high-calibre part-qualified non-life actuary with pricing experience to join a leading London Market insurer. Please contact us for more information on this new role.

Louis Manson Lou

Irene Paterson FFA Ire

Peter Baker

Clare Roberts

MANAGING DIRECTOR MAN

PARTNER PAR

SENIOR S SEN IOR CONSULTANT

SENIOR CONSULTANT

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

p48-49_ACT.09.14.indd 49

NON-LIFE MIDLANDS

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

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

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

26/08/2014 14:20

GENERAL INSURANCE - UK Retail Actuary Sarah Robins

London £120,000 + Bonus + Benefits

Head of Group Risk Modelling Paul Francis

London (City) Up to £120,000

A large retail insurer is seeking a qualified Actuary to join their team.

The role involves managerial responsibilities for a team of students and qualified actuaries. You must be commercially minded and demonstrate strong pricing techniques. GLM and/or telematics experience would be advantageous.

A well respected London Market organisation is looking to recruit a Head of Group Risk Modelling. You will have a strong cat modelling background (RMS experience preferable), outstanding communication skills and the ability to man manage.

ERM Actuary Rob Bentham

Exposure Management Actuary Rob Bentham

London (City) Up to £110,000

London (City) Up to £80,000

An up-and-coming London Market syndicate business is looking for an ERM Actuary to join their growing team. You will be a qualified Actuary with a capital background who is looking to move into a more risk focussed role.

A very rare opportunity has become available with a leading London Market business. This job role encompasses both capital and risk responsibilities as well as contact with a wide range of senior stakeholders.

Retail Actuary Sarah Robins

Reserving Actuary Ross Anderson

South West £80,000 + Bonus + Benefits

A leading specialist insurer is seeking a senior Actuary. You will play a senior role in the pricing function and be influential in key business and commercial decisions. You will be working closely with the underwriters, you must have good GLM experience and good exposure to emblem. Actuarial qualifications are desirable but not essential. Flexibility around home working for this position.

London Up to £50,000 + Bonus + Benefits

I’m working with a prestigious London Market insurer looking for actuarial students to join their reserving team. This is an excellent opportunity for an ambitious part-qualified Actuary looking to gain exposure to syndicate business. Candidates from varied actuarial backgrounds will be considered.

CONTRACTS - GENERAL INSURANCE - UK Documentation Roles Elise Ogden

London £600 - £1,000/day

We are working with a number of insurers who are seeking actuaries to assist in the production of documentation for Solvency II. Candidates must have capital model validation experience.

Commercial Analyst Elise Ogden

South West £Fixed Term Contract

Our client, a large international insurer is seeking a Commercial Analyst on a fixed term basis. Candidates must have strong analytical and modelling skills. A background in personal lines insurance would be preferable.

LIFE INSURANCE - UK Senior Strategy Manager South East Natalie Lightfoot £90,000 - £100,000 + Bonus + Benefits

Risk Actuary Clare Nash

My market leading client is looking for a Senior Strategy Manager to lead the strategic planning process for their retirement division. This is fantastic opportunity to act as a business partner to the different business units and have influence over the direction of the division.

Candidates must have an understanding of the retirement market and previous experience of competitor analysis.

An usual position has arisen within a multinational firm. My client seeks to appoint a qualified Actuary with a wealth of capital/risk management exposure. Highly visible across the group which will elevate your profile.

Capital Actuary - Exclusive to OJ Clare Nash

London (City) £75,000 + Package

Qualified Reporting Actuary Greater London Hugo Chambers £65,000 - £75,000 + Bonus + Benefits

EXCLUSIVE APPOINTMENT: - My client would like to speak to technically astute actuaries who would like to fast track their careers.

The role in question encompasses ICA, Risk and SII work at the highest level. Outstanding career development.

Fantastic opportunity for a qualified life Actuary to join the recently restructured finance function of this leading organisation in London.

They are looking for a qualified Actuary with experience in financial reporting and an understanding of Solvency II requirements.

Economic Capital Actuary London Richard Howard £65,000 - £75,000 + Bonus + Benefits

Senior Consultant - Modelling/Systems London Richard Howard £45,000 - £80,000 + Bonus + Benefits

Excellent opportunity for a qualified Actuary to join the economic capital team of this leading group office in London. Unique opportunity to work with an industry leading team. You will be qualified and have experience of Solvency II and Reporting.

Unique opportunity to join a leading consultancy in London, with a focus on actuarial modelling, systems and software development.

They are looking for candidates at all levels and specifically interested in Prophet, MoSes and/or other systems experience.

Birmingham £85,000 + Package

CONTRACTS - LIFE INSURANCE - UK Risk Calibrations Actuary Kaylash Kukadia

London & South West Up to £1200/day

We are looking for Actuaries with a statistical background and experience of calibrating risks for the internal model. Please get in touch for more information on this role.

p50-51_ACT.09.14.indd 50

EV Project Actuary Benjamin Moses

London £600 - £900/day

I am currently working with one of the world’s leading life insurers to help them establish a project team to implement EV into their business reporting structures. This is an exciting global project and one which requires PQ to qualified actuaries with a variety of skills.

Please contact me for me details on the project.

26/08/2014 12:06

ASIA Director Hamza Mush

Singapore or Hong Kong £££Competitive

General Insurance – UK Paul Francis

0207 649 9469

Rob Bentham

0207 649 9351

Sarah Robins

0207 310 8552

Rachel Kelly

0207 310 8579

Highly visible and commercial role; driving the product development and commercial initiatives for my clients life and health business across Asia. The successful candidate will have experience of presenting at board level and strong actuarial product knowledge.

Ross Anderson

0207 649 9357

Director Philip Chau

Elise Ogden

Incredibly unique and high profile position; seeking a very senior qualified and commercial UK Actuary with deep expertise in profits to work with the most senior leaders of the business in driving their most advanced technical projects across Asia.

Director Product Strategy Gary Rushton

Hong Kong £££Competitive

Hong Kong £££Competitive

A leading multinational insurer is seeking an experienced Actuary to drive exciting projects (capital, ALM, IFRS, product strategy, etc.) within the business. As you will be leading a large team previous managerial experience is a must.

Director, Capital Management Rhoda Rivera

Hong Kong £££Competitive

Global life insurer seeks a qualified UK Actuary to head up their capital management across Asia. 15 years’+ experience required with a strong combination of technical knowledge and the ability to influence and work with senior stakeholders.

Head of Actuarial Toby Weston

Malaysia £££Competitive

Contracts - G.I. - UK 0207 649 9355

Life Insurance - UK Clare Nash

0207 649 9350

Richard Howard

0207 649 9356

Natalie Lightfoot

0207 310 8547

Hugo Chambers

0207 310 8642

Contracts - Life Insurance - UK/Europe Benjamin Moses

0207 310 8793

Ani Pannell

+353 144 75975

My client is a major European insurer with a strong G.I. book in Malaysia. Due to changing regulations they are seeking an experienced Actuary to oversee all actuarial duties.

Strong communications, technical skills and team management required.

Kaylash Kukadia

0207 310 8581

Pricing Actuary Toby Weston

Gary Rushton

+852 5804 9223

Toby Weston

+852 5804 9042

Philip Chau

+852 5804 9287

Hamza Mush

+852 5804 9048

Rhoda Rivera

+852 5804 9225

Hong Kong £££Competitive

One of Asia’s leading P&C insurers seeks a Pricing Actuary to join their regional team in Hong Kong. Exceptional opportunity to work on all business lines covering both product development and pricing, with significant senior management interaction.

EUROPE

Asia

France Head of Health Emina Biscevic

Germany £££Competitive

Emérique Opou

+33 1 76 77 46 30

Leading reinsurer is currently seeking a Head of Health. You will lead and support a team of six healthcare professionals. You will be responsible for implementing a reinsurance strategy aimed at developing a reinsurance business plan for two global subsidiaries.

Agathe Ibazizen

+33 1 76 77 46 31

Risk Model Validation Consultant Laurence Baken

Patrick McMahon

Brussels €€€Competitive

You will join an international consultancy of model validation experts. Solid numerical background, possibly PHD with modelling/validation experience in an ALM or risk management department is required. You will contribute to innovative validation methodologies within a fast paced environment with a global reach.

Senior Actuary Niels van Nieuwkerk

Amsterdam €€€Competitive

Ireland +353 1 437 0625

Benelux Niels van Nieuwkerk

+31 20 716 8327

Laurence Baken

+32 24 012 249

Germany Manuel Lovell

+49 89 2109 3362

Our client is a large credit risk insurance group with a presence in over 20 countires worldwide. The company seeks to recruit an Actuary with extensive P&C experience.

This is an exciting reserving position with exposure to IFRS 4 phase 2.

Emina Biscevic

+49 89 3803 8965

Alessio Montaruli

+49 89 2109 3339

General Insurance Actuaries Patrick McMahon

Switzerland

Dublin, Ireland All Salary Levels

I am working with excellent clients on some exciting general insurance opportunities in Dublin. These roles are across all areas including reserving, capital and pricing. Please get in touch if you are actively interested or just keen to receive market updates.

Head of Non-Life Capital Alessio Montaruli

Milan €€€Negotiable

Head of Group Non-Life Capital required. Coordination of group wide calculation process of UW risk capital figures, the calibration for models & a contribution to the quantitative risk reporting. Sound knowledge of ResQ, Igloo or other statistical softwares preferred.

Reporting Actuary Ani Pannell

Dublin €550 - €750/day

My client seeks nearly/newly qualified and qualified actuaries, the ideal candidate will have at least five years of actuarial life experience and significant reporting exposure.

Previous work with Solvency II and Prophet will be a significant advantage to applicants.

p50-51_ACT.09.14.indd 51

Audrey Dresen

+41 43 508 0444

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

General Contact Details:

E

actuary@ojassociates.com

W

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

26/08/2014 12:06

www.the-arc.co.uk

The Actuarial Recruitment Company

A fresh approach

Company Actuary Scotland

General Insurance £Competitive

Group Chief Actuary London

General Insurance £Significant

This varied role as Company Actuary for a Scottish based operation

A Group Chief Actuary is required for this London Market operation

will include reserving and business planning, product development

with responsibilities across pricing, reserving and capital areas. The

and underwriting/pricing, advice on reinsurance strategy, production

role provides the opportunity to work in a friendly, professional and

of management information and liaison with external consultants. The

supportive environment. This developing business is looking for an

client is looking for a qualified actuary with broad general insurance

ambitious, strategic thinking and dynamic general insurance actuary

experience who is a commercial and strategic thinker able to

who has previous experience from a Lloyd’s or other London Market

influence senior management. Ref: ARCScotland

company. Ref: ARC26258

Capital and Reserving Actuary Bermuda

ERM Actuary London

General Insurance $Excellent

This reinsurance business in Bermuda is looking for a nearly or newly qualified actuary to work in a small team and take on responsibilities across reserving and capital work. The business is part of a larger financial group and so the role will have interaction with teams elsewhere. The client is a looking for a proactive and hands on individual, able to think for themselves and someone who is keen to join a growing business. Ref: ARCBermuda

General Insurance To £100K

A general insurance actuary around the nearly or newly qualified level is required for this Lloyd’s operation to support risk management, model validation and implementation of Solvency II within the business. The client is looking for a motivated and self managed individual able to work in a fast paced and adaptable environment. Candidates must have solid Solvency II and capital adequacy experience. Strong interpersonal skills are needed and some knowledge of reserving and pricing also desirable. Ref: ARC26259

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

0781 333 7891 0781 398 9016

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

p52_ACT.09.14.indd 52 ARC FP.indd 1

26/08/2014 21/08/2014 12:09 12:32