The Actuary September 2015 by Redactive Media Group

SEPTEMBER 2015 theactuary.com

Interview: Adrian Waddingham

The magazine of the actuarial profession

A positive approach leading to a career of opportunities

General insurance Aviation risk and proﬁtability

Risk Quantifying the eﬀects of food shock scenarios

Soft skills Presentation tips for actuarial consultants

SWEETEST TABOO The eﬀects of sugar on human health and rating factors

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SEPTEMBER 2015

Contents

28 “Sugar has been shown to have a similar eﬀect on our brains to any addictive substance”

UP FRONT

FEATURES

AT THE BACK

10 IFoA news

18 Interview: Adrian Waddingham

34 Puzzles

14 People/society news 16 SIAS events

OPINION 5

Editorial Drawing on childhood memories, Kelvin Chamunorwa looks at how actuaries can inform on emerging environmental risks

Letters Actuaries discuss valuing loss reserves, public-sector ﬁnances, and being the youngest person on the planet

22 Soft skills: Present and correct Samir Parikh looks at the diﬀerent approaches in presenting advice

24 GI: On a wing and a prayer? Randhir Bilkhu considers the risks to airline insurance in the wake of recent major aviation incidents

Soapbox Banks should use fat-tailed investment models to assess risks, argues Shyam Mehta

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

COVER: SHUTTERSTOCK/CRAIG ZADUCK

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Try the latest cryptic crossword and Mensa puzzles, plus solutions

37 Student Jessica Elkin looks at the diﬀerences between students and qualiﬁed actuaries and uncovers some surprises

38 Actuary of the future James Moreland of Hymans Robertson

38 Appointments and moves

27 Agony actuary: Peer reviews Witty advice on the problem of ﬁnding a suitable colleague to assess your work under the APS X2 standard

28 Investment: Back to bonds Ciaran Deeney asks whether gross redemption yield is the best measure of bond relative value?

President’s comment Fiona Morrison believes uncluttered thought can produce better results for actuaries

The co-founder of Barnett Waddingham talks to Richard Purcell and Jessica Elkin about his positive approach

30 Food risk: Shock tactics Trevor Maynard considers the possible implications of disruption in global food supplies

ONLINE Business skills: Political animals in the workplace It takes great political savvy along with great performance to get ahead and stay ahead in the workplace today. Bonnie Marcus offers nine reasons why women find office politics so frustrating.

Newsround For daily news reports from around the world, visit: www.theactuary.com

32 Underwriting: The sweetest taboo Jean Eu looks at the eﬀects sugar has on health and how its consumption could be used as a rating factor

The Actuary e-newsletter To sign up, visit: www.theactuary.com/email-sign-up/

WRITER OF THE MONTH Trevor Maynard wins a £50 book token for his feature on a food shock scenario, courtesy of SIAS

September 2015 • THE ACTUARY 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 Will Green +44 (0)20 7324 2742 will.green@redactive.co.uk News reporter Cintia Cheong +44 (0)20 7324 2743 cintia.cheong@theactuary.com Digital assistant Tania Forrester tania.forrester@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 Print William Gibbons

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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 Contact: features@theactuary.com Jeremy Lee, pensions, investment, ERM, banking Richard Purcell, life, health and care Richard Schneider, life, Solvency II, mortality/longevity, modelling and software Gemma Gregson, pensions, GI People/society news editor Yvonne Wan social@theactuary.com Student page editor Jessica Elkin student@theactuary.com Arts page arts@theactuary.com IFoA news editor Alison Jiggins +44 (0)20 7632 2172 alison.jiggins@actuaries.org.uk SIAS representative Mark Gorman Editorial advisory panel Peter Tompkins (chairman), Naomi Burger, David Campbell, Matthew Edwards, Martin Lunnon, Sherdin Omar, Nick Silver, Andrew Smith

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Subscriptions For subscriptions from outside the actuarial profession, UK: £95 per annum. Europe: £125 per annum, rest of the world: £150 per annum. Contact: Alison Jiggins, The Institute and Faculty of Actuaries, 7th floor, Holborn Gate, 326-330 High Holborn, London WC1V 7PP. T +44 (0)20 7632 2100 E alison.jiggins@actuaries.org. uk. Students on actuarial science courses may join and they will receive The Actuary as part of their membership. Apply to: Membership Department, The Institute and Faculty of Actuaries, Maclaurin House, 18 Dublin Street, Edinburgh EH1 3PP. T +44 (0)131 240 1325 E membership@actuaries.org.uk Changes of address should inform the membership department as above. For delivery queries, contact: Rachel Young E rachel.young@redactive.co.uk Published by the Staple Inn Actuarial Society The editor, The Institute and Faculty of Actuaries and Staple Inn Actuarial Society are not responsible for the opinions put forward in The Actuary. No part of this publication may be reproduced, stored or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the copyright owners. While every effort is made to ensure the accuracy of the content, the publisher and its contributors accept no responsibility for any material contained herein. Important information for contributors to The Actuary By submitting content for publication you confirm that: (a) You (and/or other named contributors) are the sole author(s) of the content submitted; (b) The content you submit is original and has not previously been published (unless you specifically advise us to the contrary); (c) You haven’t previously licensed the use of the content you submit; (d) So far as you are aware, the content submitted will not infringe any third-party rights, be defamatory or in any way illegal. © SIAS September 2015 All rights reserved ISSN 0960-457X

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Growing pains Drawing on childhood memories, Kelvin Chamunorwa looks at how actuaries can inform on emerging environmental risks A seemingly oddball article online captured my attention the other day. Its author reflects on his childhood experiences in Ireland and how they influence his parenting style today. He recounts how through guilt-tripping, he was always made to finish all the food on his plate, no matter his appetite. His story profoundly resonates with my own, even though my childhood in Zimbabwe was geographically miles apart. His guilt trip would start when told “if you were in the Third World…”, which wouldn’t have worked in my case, but other countries were named to similar effect. There is a crucial point to be made in this reflection. Access to sufficient, safe and nutritious food are key pillars for food security, which we know is linked to health, the environment and economic development. In his article, Trevor Maynard highlights Maslow’s hierarchy of needs to reinforce the importance of food for human survival. He then describes the reverberating impact of a food shock scenario recently published by Lloyd’s of London, and makes a case for why it is important to consider the possible causes and financial effects (p30). Climate change, driven by the carbon economy more generally, is one of the leading risks to food security. Given the immediacy and extensive effect of climate change on the global financial system, there is a key role for actuaries, working alongside others, to understand and mitigate the risks. This was also emphasised by the speakers at our webinar on investment and carbon risk a few weeks back. You can access the recording at bit.ly/1SH0QiY. At The Actuary, we seek to create interaction with readers of the magazine on pertinent matters – the webinars we regularly host are part of this effort. In the same vein, this month we introduce a new column: Agony actuary. It is intended to raise important issues relevant to our actuarial work, but in a light-hearted style (p27). If you have an ‘actuarial agony’, or an opinion on the topic of the first instalment, we want to hear about it. The more oddball, the better!

“Climate change, driven by the carbon economy, is one of the leading risks to food security”

Kelvin Chamunorwa Editor

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September 2015 • THE ACTUARY www.theactuary.com

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Opinion Letters to the editor editor@theactuary.com

Have your say online

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

No need for another ‘discount’ I read Cathal Rabbitte’s article with interest. (The Actuary, July 2015, bit.ly/1gYguFv). He considers that valuing loss reserves using a negative discount rate was not considered likely when Solvency II was developed, and he wants a new word to replace ‘discounting’. I do not want to get into a long technical discussion about the European Insurance and Occupational Pensions Authority’s risk-free interest rate term structure. I do want to mention that the directive talks about “time value of money”, with no opinion on whether that allowance is positive or negative. If money is decreasing in value over time, then this needs to be allowed for. It’s not rocket science, or something other than discounting, it’s merely arithmetic. And there is no need for a new word at all. Rabbitte then moves on to the concept of “risk-free sovereigns”, which is one of the assumptions in the standard formula calculation of regulatory capital. It is worth looking at the requirements for an insurer’s calculation of the capital requirement. As part of the Own Risk and Solvency Assessment, (ORSA), an insurer has to assess the extent to which its risk profile deviates from the assumptions in its capital calculation, however calculated. If an insurer considers that the risks from assets that it holds (which it can select in line with the prudent person principle) are not reflected properly in its Solvency Capital Requirement (SCR) calculation, it must change the calculation so that it does. No one could reasonably expect that a Europewide formula could reflect the risks of each individual insurer; the standard formula is a complex beast that should not be regarded as gospel. I do agree that insurers have a big job to do in pricing business to reflect low yields. Perhaps it will make them think more carefully about the risks in their business and the assumptions they are making, as well as the appropriateness of their investments. We have been here before – look at all the ‘free’ guarantees added into life insurance contracts in the high-yield days of the 1970s, a period when yields below 5% were unimaginable. Kathryn Morgan 6 August 2015

THE ACTUARY • September 2015 www.theactuary.com

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Public-sector finances – a step too far? An area of interest that, for some reason, does not seem to have attracted any interest from actuaries is publicsector finances. Recently, the chancellor of the Exchequer suggested that public finances should be re-engineered towards “inter-temporal equity”, whereby the net financial cash flow demands of current generations should not bear upon those of future generations. Subsequently, the Office for Budget Responsibility noted that ageing populations may place unsustainable financial stress on the credibility of such promises. It should not be surprising that actuaries have views on such topics. However, a significant challenge is to convert such concerns into relatively simplistic, actuarial-based financial modelling tools. Understanding the impact of ageing can be used to better inform basic financial management, forecasting and budgeting of public-sector entities, such as local governments, NHS trusts and educational trusts. Finances in these areas appear to be dominated by issues related to a combination of private finance initiatives, unfunded pensions and health-care-related expenditures. Currently, neither Whole of Government Accounts, or the International Financial Reporting Standards-based accounts seem to incorporate these insights. This is simply because they focus not on inter-temporal equity, but more myopically on inter-period equity at the short-term level (via accrual accounting), where ‘deficits or surpluses’ are defined in an accounting sense. By contrast, an intergenerational perspective involves a more ambitious ‘imbalance’ of all current and future expenditures by each entity and how this affects the

PA / REX / SHUTTERSTOCK

25/08/2015 08:23

balance of current versus future generations of cohorts of the population that may need to rely on or choose to use their services. It does seem surprising to me that accountants seem to spend a lot of time worrying about these issues in the private sector and have no qualms about developing forward estimates of pensions or unfunded healthcare for private-sector entities. Most of the discussions by actuaries at forums such as on ERM research and thought leadership seem to be about capital modelling for private-sector insurers. So why is it somehow a ‘faux pas’ to have a similar conversation about the public sector? Paul Klumpes 12 June 2015

Members’ incentive The article on medically underwritten bulk annuities is interesting (The Actuary, August 2015, bit.ly/1PiBHpu). I can understand individuals wanting underwritten annuities if their health is poor. Why should the member of a pension scheme volunteer such information to enable the trustees to do a deal? What’s in it for them? Clearly it has worked, but I fail to see why. Icki Iqbal 11 August 2015

Youngest person on the planet I couldn’t help but have a go at the claim that Rachel Riley was, for a time, the youngest person in the world (The Actuary, August 2015, bit.ly/1hrJJRM). While global data is a bit shaky, the World Development Report 1986 can be used to ﬁnd an estimate for 166.7 million births worldwide in 1986, giving a birth rate of approximately 5.3 per second. Factoring in an estimate from the US National Library of Medicine of 3% of labours involving multiple births, and plugging this into the Poisson distribution gives an 82.7% chance of two births occurring simultaneously. We can therefore conclude that the chance of Rachel Riley being the youngest person on the planet at the instant of her birth is about 17%. Even then she would only have been so for an average of 0.2 seconds! Andrew Kelly 19 August 2015

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

Winning numbers Brian Jones says lottery numbers must be “truly random”, whatever that really is (The Actuary, July 2015, bit.ly/1JssZpz). But, in fact, a minimal bias is acceptable in real life, provided either no one or everyone knows what it is. Nobody selects 50 in the National Lottery because it has no chance of being drawn. Indeed, in the National Lottery, any bias is more than oﬀset by the ‘skill’ of knowing what numbers others have selected. Choosing the unpopular ones means that while the chance of winning the jackpot is practically the same, the chance of having to share it with others is signiﬁcantly diminished. Robert Steel 19 July 2015

Teaching grandmas on nest eggs We welcome Nick Spencer’s feedback in his letter in the August edition of The Actuary (bit.ly/1KxLYtq) following attendance at a recent professional skills training session, particularly the 8/10 for the focus on whistleblowing. As for the Eurovision-style award of 0 points for the preferred course of action in the case study – we accept that there will often be a range of views as to the best possible solution, depending on all the circumstances. We are pleased to see that the case studies are achieving their aim of generating discussion and provoking thought! Neil Hilary and Patrick Cleary Presenters at the May 18 session

“Rachel Riley was, for a time, the youngest person in the world ” 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 16 September 2015.

September 2015 • THE ACTUARY 7 www.theactuary.com

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›

Opinion President’s comment

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

FIONA MORRISON

The future in focus December 2013 saw the start of the largest outbreak of Ebola in history. Throughout 2014/15 our TV screens and newspapers were full of harrowing images of the impact of this deadly virus which, it has been estimated, has taken the lives of 11,000 individuals and infected a further 28,000. Despite the disease being identified more than 40 years ago, at the time of the outbreak there were no proven drugs or vaccines against the virus. It was recently reported in the medical journal, The Lancet, that the sheer scale of the 2014/15 outbreak led to an unprecedented push on vaccines. A decade’s work was condensed into around 10 months, resulting in a vaccine that has led to 100% protection in a clinical trial conducted in Guinea, where the outbreak originally started. The World Health Organization described the findings of the trial as a ‘game changer’. This was a sentiment echoed by the likes of the London School of Hygiene & Tropical Medicine, Médecins Sans Frontières and the medical charity Wellcome Trust, all of whom were involved in the international collaboration which led to the development of the vaccine. The Ebola outbreak might seem a strange subject to write about in the president’s column. However, my inspiration for highlighting this issue is twofold. First was our very own Longevity Bulletin, published last month. This latest edition promotes the research our members are doing in the field of pandemics, working alongside academics and scientists, demonstrating the value our professional skills can bring to solving some of the world’s biggest challenges. Second, a relative of mine, Dr Georgios Pollakis of the University of Liverpool, recently had his research on the evolution of the Ebola virus published in the journal Nature. He has spent his career in AIDS research, but has now applied his skillset to a new area that again is very much in the public interest. What really stood out for me, as I read the Ebola vaccine story was how professionals had worked collaboratively in the public interest to combine their knowledge, experience and expertise to help prevent a future epidemic or, even worse, a pandemic. As an actuary, it is a positive reminder of

President of the IFoA Fiona Morrison believes uncluttered thought can produce better results for actuaries why acting in the public interest is at the heart of our Royal Charter, and all we do. Closer to home, the beneﬁt of collaboration and promoting diversity of ideas was highlighted by a recent Council meeting guest speaker, recommended to us by our corporate secretary, Kimberley Russell. Jamie Smart, author of the bestselling book Clarity, gave an insightful presentation on how clear thinking, and embracing the diversity of ideas, could help with Council’s ‘strategy refresh’ deliberations. Smart introduced his book by saying: “If a pond is clouded with mud, there’s nothing you can do to make the water clear. But when you allow the mud to settle, it will clear on its own, because clarity is the water’s natural state.” He contended, if we as Council allow our ‘mud’ to settle, clarity will emerge and we will discover we have all we need for the job in hand. What really leapt out at me, as I listened to Smart, was that clarity of thinking is key to solving the big issues that we face if we want to create a sustainable future for our profession and the generations of actuaries

that will follow. Smart tried to get us to think about this concept of clarity through the use of a simple formula: clarity = capacity – contamination. It is important that we give ourselves the space to think (capacity), and ensure that our mental clarity is not contaminated by habitual ways of thinking, limiting beliefs, or even the daily distractions of email and social media. By giving ourselves uncontaminated capacity, we will improve our strategy discussions, and generate better outcomes for our profession. What the presentation drove home, as we started to debate the refresh of our education strategy, was the importance of clarity of thinking, and of engaging with external stakeholders to ensure that our qualiﬁcations deliver professionals with the right skills that industry and businesses want and need. If we get this right, our job of promoting actuaries, and the value we bring to business, and society more generally, will be made considerably easier. a

“Clarity of thinking is key to solving the big issues we face if we want to create a sustainable future for our profession”

THE ACTUARY • September 2015 www.theactuary.com

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Opinion Soapbox

SHYAM MEHTA

Losing out on lending It is common knowledge that in the UK the amount of bank lending to small and medium-sized enterprises (SMEs) and of mortgage lending to individuals has declined since the financial crisis. The question is why. A simple answer is that the amount of capital required, by the regulators and under the Basel framework, to support such lending has increased sharply. If capital is scarce and capital requirements have, say, doubled for any given volume of lending, then the volume of lending will halve. I do not believe that this is the answer. First, I believe that banks were dramatically underestimating the amount of capital needed to do business prior to the financial crisis. The risk of a financial meltdown was being underestimated. The use of the normal distribution to represent fluctuations in business conditions is inappropriate, and one needs heavily skewed distributions such as those that underlie the ‘Andrew Smith investment model’, developed and promoted by Deloitte. When building fat tails into an investment model it causes one to quickly reassess the amount of capital needed for risk events. The regulators are merely forcing banks to recognise the fundamental capital that is needed to support lending – even though they do not require the use of fat-tailed distributions to assess bank capital needs. Second, with a free banking market – in terms of price as distinct from capital requirements, which may or may not bite – it is all a question of price. If banks have had to reassess the amount of capital needed to support a given volume of lending, all that happens is that the price of this given supply increases – capital will be found if it is profitable to use it – and shifts the supply/ demand curve. This is a second-order effect and there is no reason for lending to halve. If lending was profitable, prices would have risen, lending would have been maintained at broadly pre-crash levels, and the capital needed would have been found. Unfortunately, not only do banks not know how to assess their fundamental capital needs – because they do not use fat-tailed investment models when assessing this

Shyam Mehta argues that banks should use fat-tailed investment models to more accurately assess the risks involved capital – they also do not know how to price their products. Contrary to the thinking of a typical bank, capital is cheap. This is because bank capital earns an investment return corresponding to the riskiness of the underlying assets backing this capital, and so the cost of holding an extra £1 of capital in a world of no taxes is nil. With taxes but low investment returns, such as we see today, there is a small, less than 1% per annum, net cost of holding capital. Against this, although banks assign a high net cost to holding capital, they assign a low cost to doing business. This is again because they do not use fat-tailed investment models when assessing the risks of lending. It was this underestimation of risk that led to the ﬁnancial crisis – aside from regulatory failure in creating a boom/bust credit cycle, in not providing enough liquidity into the system and in not spotting that banks were over-stretching themselves. So, we can say that lending products are now more correctly priced, with too high an assessed

capital cost being oﬀset by too low a risk of doing business cost, but that there is opportunity for new entrants to come into the market and more keenly price certain products. Well, the question therefore remains: Why has lending fallen? I believe one needs to look at the two distinct marketplaces separately. In the mortgage market the supply of homes has fallen and there is therefore less need for mortgage ﬁnance. In the SME market, there are two main factors. First, there is increased peer-topeer lending although it is not clear how much of a factor this is. Second, businesses are cost sensitive. They borrow to invest. Investment returns have declined, but borrowing costs have shot up as discussed above. The supply/demand curve has adjusted and markets now clear at a much lower volume of lending.

“The regulators are merely forcing banks to recognise the fundamental capital that is needed to support lending”

Shyam Mehta is a former investment banker and insurance risk practitioner

September 2015 • THE ACTUARY www.theactuary.com

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News IFoA NEWS UPDATES FROM THE ACTUARIAL PROFESSION

Upfront Opinion CEO’s comment

Changes afoot for education fees

Derek Cribb outlines the scheme that has boosted the IFoA’s reputation for innovation

From 1 March 2016, changes are going to be made to the education fee structure, and these will apply to all the education services we provide for students. These changes may aﬀect whether you are still eligible for the reduced fees for exams and other services, so it is important that you read this information. From March 2016, your eligibility for reduced education fees will be based on your earnings, wherever you are in the world – the list of ‘Special overseas rate’ countries will no longer be used to decide whether you are eligible. The IFoA Education Board and Council have discussed at length the current education fee structure, and have agreed to align it with the membership subscriptions structure. Following this decision, regardless of where you live, if you are eligible to pay the reduced membership subscription you will also be eligible for reduced exam fees and other education fees. It is therefore important that you pay the correct subscription rate. If, based on your income, you are eligible for the reduced subscription fee, you must ensure that you complete the ‘reduced rate application’ when you renew your subscription. This means that the reduced rate will then automatically apply to the education fees you pay. You can ﬁnd full information on subscription fees and eligibility for the reduced rate on the IFoA website at bit.ly/1IW7gzU If you have any questions, please email membership@actuaries.org.uk For further information, visit bit.ly/1Nnldes

FRC endorses quality scheme Derek Cribb is the chief executive of the Institute and Faculty of Actuaries

to professional bodies, but the findings from our recent ComRes survey show that this is the reputation the IFoA now has among its stakeholders. One innovation that is causing considerable excitement among our members and sister organisations internationally is the new Quality Assurance Scheme (QAS), which we launched on 1 September. Designed for organisations that undertake actuarial work, the QAS is the first scheme of its type that accredits the quality of the policies and processes which underpin the work of IFoA members. This groundbreaking initiative is open to all organisations that employ IFoA members, initially in the UK. This is the first time that we have been able to offer our members’ firms the opportunity to publicise an IFoA quality stamp, something that will give both the public and clients greater confidence when looking to engage with QAS-accredited providers. Organisations that are accredited will be able to use the QAS mark and branding on their communications and marketing materials, giving their clients a new level of assurance as to that organisation’s actuarial quality. It is easy to see why the QAS could become the industry standard to demonstrate the robustness and effectiveness of an organisation’s actuarial processes. While it’s great to have a new offering to help build public confidence in our members’ firms, it is the view of others in the regulatory environment that can really add weight. That’s why I am delighted that the Financial Reporting Council (FRC) has also endorsed the QAS, stating that it would “encourage businesses to join the Scheme” – a great endorsement from a body whose mission is “promoting high quality corporate governance and reporting to foster investment”. We expect to announce the first tranche of accredited organisations in the spring of 2016, so if you want to be a part of this lead group please ensure that you submit your applications no later than 1 November. Lastly, I would like thank the five firms that took part in our trial of the QAS: Lane Clark & Peacock, Barnett Waddingham, First Actuarial, BBS Consultants and Actuaries, and Towers Watson. More information on the QAS can be found at www.actuaries.org.uk/QAS or by emailing QAS@actuaries.org.uk

DEREK CRIBB

Innovative is not a word often applied

Practising Certificates Scheme alterations in effect The annual review of the Practising Certificates Scheme has been carried out and now incorporates chief actuary certificates, effective from 1 July 2015. A summary of the changes relating to chief actuary certificates is set out online (bit.ly/1HDPyQF) and a summary of all other changes is set out in the communication (bit.ly/1N6sOjt) from Desmond Hudson, chairman of the Regulation Board. For full details, visit bit.ly/1J9nDj3

THE ACTUARY • September 2015 www.theactuary.com

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IFoA research goes large: call for proposals

Lessons from the Monica Allanach Lecture: ‘Sex in the 21st Century’ and making it to the top Kathryn Morgan (pictured above), director of regulatory operations at Gibraltar Financial Services Commission, delivered a stimulating lecture on ‘Sex in the 21st Century’ on 15 July, encouraging women actuaries to navigate to the top of their fields. Morgan’s lecture was the first in what is hoped to be an annual lecture held in honour of Monica Allanach (pictured right), and was generously sponsored by the Prudential. Allanach was a trailblazer and the first woman on the Institute of Actuaries’ Council. She introduced ‘ladies’ tea parties’ in the 1950s to provide a forum for women to discuss their careers, and worked lifelong at the Prudential, where she retired from her position as actuary for the UK in 1981. IFoA president Fiona Morrison opened the lecture, welcoming everyone to celebrate Allanach’s achievements in paving the way for all female actuaries and to consider how we can continue her legacy into the future. Morrison wondered whether she would be standing there, as the second female president of the IFoA, were it not for Allanach – “I suspect the answer is ‘probably not’,” she said. Karin Brown, director of corporate pensions and legacy at Prudential Assurance, introduced Morgan to the stage, outlining her illustrious career and her contributions to regulatory policy, general insurance and to the IFoA. With the backdrop of Allanach’s remarkable achievements, Morgan delivered an insightful, funny and inspiring lecture.

She was frank in discussing the tactics she has employed to be both successful and fulfilled in her career. Her advice spanned from “Do every role in a sessional meeting at least once” and “Try to put something of yourself in every interaction you have with others” to “If you have to develop coping mechanisms to get you through the day, find another job – and make sure you test the corporate culture before you do”. She also recommended taking risks: “Find people you don’t know at a conference and find out what’s interesting about them.” Her overall message was that, like Allanach, women shouldn’t feel any barriers to going after what they want; likewise, they should make sure that, when they get what they want, they are also happy. Morgan asked the audience to offer coping mechanisms and further advice for making the field of actuaries more diverse. This led to a lively period of questions and answers that covered flexible working schedules, the provision of more opportunities for women in senior roles and whether or not there should be a business case for diversity – or, if this is a moot point, whether gender equality should be a ‘given’. The session was filmed and is available to view at bit.ly/1DFHNPn

What are the actuarial consequences of how people age? How do we expect the changing economic environment to aﬀect actuarial assessments? What are the consequences of disruptive technologies? Over the past few months, the IFoA’s Research and Thought Leadership Committee (RTLC) has been gathering views on the key research challenges in actuarial science that may need to be addressed in the coming years. Under the leadership of RTLC chairman Mark Cross, this has now resulted in a call for research proposals. While the IFoA has a long history of commissioned research projects, this call represents a marked change in the scale of research projects that the IFoA is seeking to fund. The intention is that successful projects will be run through the IFoA’s Actuarial Research Centre (ARC), which will be expanded to include a wider range of universities and research teams. The projects will also complement the extensive research already undertaken by the volunteer working parties. The IFoA would like to hear from academic and corporate research teams who believe they are in a position to help address some of the key questions in actuarial science and deliver research that is relevant to our members and industry. We are also keen to hear from organisations who have a keen interest in some of the research outputs and would like to shape and scope the research from the outset. The call for research closes on 5 October. To view the call for research proposals and the key questions identiﬁed, visit bit.ly/1WovvRs

New vacancies: your chance to volunteer Interested in volunteering for the profession? Why not take a look at some of our current vacancies below? Not only will you help direct and develop your profession but there is also the added beneﬁt of being able to develop your own skills, personally and professionally. ● Call for speakers. ● Board members – Resource and

Environment Board. ● Career ambassador. ● Independent examiner (professional

development and responsibility). For more details, visit bit.ly/ 1CdefkU, or email the head of volunteer engagement at debbie.atkins@ actuaries.org.uk

September 2015 • THE ACTUARY www.theactuary.com

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News IFoA NEWS UPDATES FROM THE IFOA

Professional skills training: the 2015-2016 CPD year It might seem a long time until the end June 2016, when you need to complete your two hours of professional skills training, but it is not too early to plan ahead. Many of you are choosing to enhance and refresh your professional skills by accessing the IFoA’s online video case studies and supplementary content. Going forward, we will also be exploring options to deliver a professional skills webinar. The Professionalism Content Development Working Group has been busy over the past six months developing new video case studies on a range of topics and in diﬀerent formats to help you achieve the professional skills element of your continuing professional development (CPD) requirements. You’ll see more of those from the end of August 2015. In the meantime, here’s an overview of some of the ways you can complete your professional skills training in 2015-2016. Remember, you

can source relevant CPD from a variety of sources; you just need to satisfy yourself that it meets the objectives set out in the 2015/16 CPD Scheme. It’s important to note when accessing the online content that it is not just viewing time that counts towards your CPD hours but also time spent making notes, reflecting, accessing additional resources or discussing with colleagues. We also recommend that you do not leave it until the final weeks of the CPD year when the demand tends to peak. Here are some other options to consider. ● If you like to attend live sessions, we will be running one-hour sittings at conferences (residential and non-residential), such as the Life Conference or Highlights of Life. ● Live two-hour sessions will be available at the IFoA’s London and Edinburgh offices from November through to June. Details of these events will be advertised on the Events

IFoA Longevity Bulletin: pandemics edition The Longevity Bulletin is usually published twice a year on topics relating to mortality and longevity around a particular theme. The sixth issue of the Longevity Bulletin discusses pandemic risks from various angles, including risk modelling, epidemiology, health policy and technology. For illustration, it also includes case studies on Spanish Flu, HIV/AIDS and the Ebola virus to demonstrate the complexity of infectious diseases as they diﬀer in origin, mode of transmission and impact on human population. To download the Longevity Bulletin, visit bit.ly/1E7INGQ

Subscriptions and practising certiﬁcate fees 2015-2016 Following agreement by Council, the subscription fees for 2015-16 are listed below. Subscription fees for 1 October 2015 are therefore as follows. Fellows ( full regulation) ................£700 Fellows (partial regulation) ............£350 Associate ( full regulation)................£465 Associate (partial regulation)...........£235 Certiﬁed Actuarial Analyst ..............£250 Student Actuarial Analyst ................£170

Student .........................................£235 Aﬃliate ..........................................£70 Reduced subscription (all categories).....£70 Please note, there has been a change to Regulation 22, regarding life membership (see bit.ly/1J1klwj). There has been no increase to practising certiﬁcate fees, which remain at £860. For details on fees, visit bit.ly/1IHaDLO For more information on partial regulation, see bit.ly/1IW6z9G

pages of the website – look out for the blue professional skills icon (pictured above). ● As part of your own wider contribution, why not attend one of our Train the Trainer sessions and learn how to deliver a session for your colleagues or at your local actuarial association. As well as acquiring tips and hints, you will be provided with all the materials you need to run an event. These sessions are also open to your non-actuarial colleagues involved in delivering training. ● Your own firm may also offer training that is relevant to professional skills. Whistleblowing, conflicts of interest or your organisation’s code of business ethics are just some examples. Of course, you have to use your judgement, but appropriate internal training can count. For queries regarding your professional skills training requirements or Train the Trainer events, please email Fiona Goddard at professional.skills@actuaries.org.uk

Adjudication Panel hearing: Mr Jean Drouffe On 21 May 2015, the Adjudication Panel considered an allegation of misconduct against Mr Jean Drouffe relating to the insufficient completion of continuing professional development (CPD) recorded on his online record in respect of CPD year 1 July 2013 to 30 June 2014. The panel felt that the respondent had demonstrated a dismissive attitude towards the investigation, executive sanctions regime and CPD Scheme and, as such, determined that the facts as alleged against the respondent amounted to a prima facie case of misconduct. The panel invited the respondent to accept that there had been misconduct and a fine of £3,000 by way of sanction. The level of fine imposed by the panel reflects the seniority and the experience of the respondent within the profession and his failure to avail himself of two opportunities to rectify his failure to record sufficient CPD activity. The full determination, including the panel’s full reasoning, is available on the IFoA website: www.actuaries.org.uk

THE ACTUARY • September 2015 www.theactuary.com

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EVENTS AND CONFERENCES CELEBRATING BRITISH ACTUARIAL JOURNAL’S 20TH ANNIVERSARY: LOOKING AT THE NEXT 20 YEARS OF ACTUARIAL RESEARCH 21 September Staple Inn Hall, London 17.00 – 20.00 The IFoA invites you to celebrate the 20th anniversary of British Actuarial Journal (BAJ) and participate in a discussion on the future of actuarial research. This unique event, chaired by president Fiona Morrison, will begin with a short panel discussion reﬂecting on the 20th anniversary and setting out the IFoA’s vision for research,

promotion and dissemination in the future. Panel members include David Wilkie, FFA, FIA; Andrew Smith, HFIA; Deborah Cooper, FIA; and Kelvin Chamunorwa, FIA. Audience members including members of the profession, journal editors, jou academics and other ac interested parties will inte have the opportunity to hav raise questions and rais discuss the future of disc actuarial research, the actu of our journals, how role o we promote the value of actuarial science research and more. Book your place at bit.ly/1DJZ7Td

NON-EXECUTIVE DIRECTOR (NED) EVENT

SUSTAINABILITY AND BUSINESS: WHAT IS THE ROLE OF THE BOARD AND HOW CAN ACTUARIES, AS NEDS, CONTRIBUTE? 24 September 17.00 – 20.00 This non-executive director session will seek to explore both modern thinking on how sustainability ﬁts the governance agenda and how actuaries can contribute to and enhance that agenda. Book now at bit.ly/1DPLcv3

SAVE THE DATE: AUTUMN LECTURE 9 November Edinburgh 18.00 – 19.30 (registration 17.30) This event will be delivered by Lady Susan Rice CBE, former

chief executive of Lloyds TSB Scotland and a founding member of the Banking Standards Board. The lecture will also be live streamed for members who are unable to attend. Register your place at bit.ly/1N7hynU

MOMENTUM CONFERENCE 2-4 December Bristol This cross-practice event is designed to provide all nearly and newly qualiﬁed actuaries with a variety of topical plenaries, workshops and business skills sessions. Identify key market opportunities, innovative solutions and discuss the evolving challenges in today’s insurance world. Book your place at bit.ly/1Wy32sy

Delegates will hear from a wide range of speakers on current topics:

GIRO2015

20-23 October, ACC, Liverpool Don’t miss your chance to attend this year’s GIRO Conference. GIRO remains the premier event for general insurance actuaries and this year’s programme features a range of thought provoking and informative plenary sessions and a diverse mix of workshop presentations.

Alleviating Reserving Stress Insurance in a Changed World Tomorrow’s World: Customer, Investor or Risk? Who Proﬁts? Delivering an Ethical Return Modelling: The Next Generation Professor John Kay OBE

Other highlights include: A keynote speech from Professor John Kay OBE Round Table discussions on key issues Two hours of Professional Skills CPD available Updates from the General Insurance e Working Parties The conference provides ample networking opportunities which we encourage you to make the most of. Join us on Wednesday 21 October for the GIRO Fun Fair and don’t miss your chance to put on your dancing shoes at the ﬁrst ever GIRO Does Strictly on Thursday 22 October where you will have the chance to meet Flavia and Vincent from the famous BBC show, Strictly Come Dancing.

CPD: 15.75 hours BOOK NOW AT: www.actuaries.org.uk/events

#IFoAGIRO15

September 2015 • THE ACTUARY www.theactuary.com

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

News People & Society

Testing his metal By Andrew O’Brien Ironman Austria was a rollercoaster of an event. On 28 June, the cannon fired at 7am as thousands charged into the turquoise waters of Lake Wörthersee for a swim more beautiful than I had ever imagined. That was followed by a fast bike course. The ‘Tour de France’ atmosphere helped to distract my mind from the pain of some horrendous climbs until the descents provided respite. It was a really tough marathon. Picture me hobbling along with saddle soreness, blisters and stomach cramps until I finally got to the finish, and a man with a mic came running over shouting “Andrew, you are an ironman!” I’ll never forget those words as I crossed the line after the hardest and most amazing 12 hours of my life; a 2.4 mile swim, 112 mile bike and 26.2 mile run. My heartfelt thanks to everyone who has supported me. The money raised means so much to the people of Kiwoko and makes such a difference to the lives of many. At £500, I’m currently at 25% of my £2,000 fundraising target. So if you can spare a few coins for Adara it would be greatly appreciated. You can donate via www.justgiving.com/Marathon-Man-to-Ironman

Cocktail masterclass By Svilena Dimitrova Earlier this year, the Irish Student Society Committee held a cocktail making masterclass at the Grafton Lounge in Dublin. An area was reserved with complimentary ﬁnger food and drinks. As part of the class we were taught by an expert mixologist on how to create a Mojito and a Solero. Armed with these new skills, we were let loose behind the bar to create our very own cocktails. And yes – we were allowed to pour as much as we liked into them, and sample the results. In addition to this was a competition to ﬁnd the best cocktail-makers. Acumen Resources kindly sponsored the prizes on the night, with the best cocktails being rewarded with One-4-All vouchers. Six €50 vouchers went to the lucky winners picked by the expert mixologist. The night proved an excellent opportunity to meet up with other students before the next set of exams.

Winning Waterloo By Phil Simpson In late June, to mark the 200th anniversary of the battle of Waterloo, 10 members of the Waterloo dining club and their spouses travelled to the battle site in present-day Belgium. The club’s name comes from the fact that its first meeting was in the Waterloo Room of the Institute of Directors, rather than directly inspired by the battle. For the anniversary there was a large re-enactment on the original fields by over 7,000 volunteers from all over the world. It was held over three days to allow for the different phases of the encounter and was watched by more than 100,000 people each day. We were there for the final enactment of the evening of the battle when the British and Prussian allies finally defeated Napoleon after a long and bloody day’s fighting. The reenactment with canons firing and all their smoke authentically portrayed how little either army’s leaders would have seen of the battle. Unlike the actual day of the battle, which was fought in a quagmire, the rain just held off until the end of the re-enactment. An enjoyable and sociable weekend was had by all. The Waterloo 200th anniversary beer was particularly popular with club members. The Waterloo Club is a dining club for actuaries and others working in financial services. The club meets in restaurants about nine times a year for good food, good drink and good company, and also arranges social events, such as the trip to Waterloo, and wine tastings. If anyone is interested in finding out more about the club, please contact me at:

philip.simpson@milliman.com

THE ACTUARY • September 2015 www.theactuary.com

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The world is enough

Peter Thompson becomes Master

By Anique Buddhdev

By Richard Purcell

On 17 July, more than 200 actuaries boarded the Golden Flame at Westminster Pier for the annual SIAS summer boat party. On arrival, guests were welcomed with a drink, after which they were free to roam around the craft as we sailed up and down the River Thames. The weather treated us kindly, and guests were sporting some imaginative and inspired ‘around the world’ themed outﬁts. The upper sundeck seemed to be the most popular area, where people could enjoy drinks outdoors, admire the sights of London and enjoy the aroma from the BBQ, with its wide selection of food, from chicken kebabs to burgers. Our casino table proved popular among the statisticians onboard – congratulations to Chloe Goillau, who received an Amazon voucher for winning the blackjack competition. Other highlights of the event included our cocktailpop station, where ‘Jack Daniels’ was creating diﬀerent cocktails and instantly freezing them into ice lollies

using a -30°C surface. Following dinner, the dance floor was the place to be, with everyone showcasing their moves. A definite highlight was the dance-off between a Native American and a turkey for the title of best dressed male – congratulations to Jacky Cheung for winning! Time flew and we were soon docking back at Westminster Pier. Those who found their sea legs and were still standing made it over to the Opal Bar to celebrate ‘returning’ to London. Many thanks to Capital Pleasure Boats and to everyone for attending. I look forward to seeing you next year.

Marathon charity challenge By Bobby Riddaway In June, I ran my ﬁrst marathon for eight years, the Liverpool Rock & Roll Marathon. After a sevenyear break from running, I was delighted with a time of 3:28:23, and also pleased to raise over £450. As a result, I am now running three and a half marathons to raise £3,500, ending in a spring 2016 marathon. I am supporting Cancer Research, a charity very close to my heart. The next stage is the Great North Run (a half marathon) on 13 September and then Chester Marathon on 4 October. I will then be able to announce the ﬁnal stage, the spring marathon, which is yet to be decided. If you would like to sponsor me, my just giving page is here: www.justgiving.com/bobby-riddaway1 Thanks for all the support.

Wedding Congratulations to Elizabeth Aylott (Towers Watson) and Matthew Boulton (First Actuarial), who got married on 22 May 2015 in the Cotswolds.

Birth

Deaths

Wali Chishti (Swiss Re) and his wife Mediha are pleased to announce the birth of their son, Ismael, a brother to Ibrahim, born on 2 June 2015. (For those of you with a good memory, Ismael was also announced in The Actuary magazine back in 2009!)

Mr William Philip May died recently, aged 68. He became a Fellow in 1982. Mr Brian Keith Worbey died recently, aged 85. He became a Fellow in 1961. Mr Rhys Thomas died recently, aged 31. He was a student.

At the Worshipful Company of Actuaries (WCA) Installation Dinner at Vintners’ Hall on 16 July, Peter Thompson (below) became the 37th Master of the Company. Sally Bridgeland was installed as senior warden and Nick Dumbreck as junior warden. Peter, who takes over from Martin Miles, is a successful pensions actuary and previously chair of the National Association of Pension Funds and a Member of Council for the Pensions Policy Institute. Each year, the WCA presents the Phiatus Award to an actuary who has made an impressive contribution to charity. This year’s winner is Michael Thomas. Mike retired five years ago from an actuarial career as a pensions manager. Conscious of being a ‘debtor to his profession’, he welcomed the opportunity to do more for those less fortunate. Readers may know about Mike’s work for the Swindon Restore Centre – to which the Company of Actuaries Charitable Trust (CACT) has provided financial support over recent years – and the Swindon Foodbank. He also participated in the Annual Inter-Livery Swimathon, helping to raise significant funds for successive Lord Mayor’s Appeals, CACT and other charities. Few people will be aware of Mike’s extensive work with Sightsavers and The Leprosy Mission. He is an area representative and ambassador for the charities, giving talks at schools and churches, and represents them at fundraising events by other organisations, such as Rotary International. One of the difficulties for the awarding committee is that people who do a lot of charitable work are often very modest, and Mike is one of those people. It took some digging to discover that Mike is also involved with the Uffington White Horse Show and was on the organising committee for 25 years, during which time it raised over £300,000 for local charities and community groups. Mike is also on the Amnesty International Urgent Action rota, and regularly appeals on behalf of prisoners facing execution or at risk of torture. Congratulations to Mike.

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 2015 • THE ACTUARY 15 www.theactuary.com

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TUESDAY 8 SEPTEMBER

You Cannot Lose – Pricing, Products and Professionalism Staple Inn Hall High Holborn London WC1V 7QJ 5.30pm

MONDAY 19 OCTOBER

Annual General Meeting and Jubilee Lecture Staple Inn Hall High Holborn London WC1V 7QJ 5.30pm THURSDAY 22 OCTOBER

SIAS pool tournament Venue: TBC Tickets on sale: 21 September

PROGRAMME

It’s about a new product. It’s about ﬁnancial guarantee. It’s about capital loads. It’s about Life vs GI. It’s about time pressures and an answer needed yesterday. It’s about dominant bosses. It’s about the reinsurer that never says no. It’s an everyday story of actuary folk. It’s win-win-win. So YOU CANNOT LOSE – or can you? Refreshments will be served from 5.30pm and the lecture will start promptly at 6pm. There is no need to register in advance for this meeting and non-members are welcome. There will also be live tweeting available via #SIASSep15 during the talk – please do get involved with any comments and questions for the speakers.

PROGRAMME

We are delighted to announce that, following our Annual General Meeting, professor Jagjit Chadha will be our Jubilee Lecture guest speaker. Jagjit holds the position of professor and chair in money and banking at the department of economics at the University of Kent. He is an adviser to the Treasury Select Committee, Bank of England and other policy-making institutions. Jagjit’s interests lie in macroeconomics with a focus on monetary issues. We look forward to hearing his views and hope you can join us for our 2015 Jubilee Lecture. SOCIAL

Time to take your cue and show us your skills. Could you be a SIAS pool champion? This year’s competition looks set to be better than ever. Teams of two enter for the chance to be crowned SIAS pool champions. Please visit www.sias.org.uk for further details.

THURSDAY 29 OCTOBER

Welcome drinks Staple Inn Hall High Holborn London WC1V 7QJ 5.30pm

SOCIAL

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 to meet fellow new joiners and learn more about the profession, the qualiﬁcation process and SIAS, while enjoying a selection of ﬁne wines and delicious cheeses. The tasting will begin at 5.30pm with 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.

FRIDAY 20 NOVEMBER

SIAS Annual Dinner The Roundhouse Chalk Farm Road London NW1 8EH Tickets on sale: 9am, Monday 12 October

SOCIAL

It’s nearly time to get your glad rags on and join us for a night of great food, entertainment and dancing! Owing to SIAS’s generous subsidising of the event, tickets are being ﬁxed at the same prices as last year: Pre-30 October 2015 registrations: £80 SIAS members, £98 non-SIAS members Post-1 November 2015 registrations: £85 SIAS members, £100 non-SIAS members Stay tuned for further details of the night, including the theme, at www.sias.org.uk.

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

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

THE ACTUARY • September 2015 www.theactuary.com

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On my agenda features@theactuary.com

Just

say

yes

Adrian Waddingham CBE, co-founder of Barnett Waddingham, explains to Richard Purcell and Jessica Elkin how a positive approach has unlocked a career full of opportunities It’s with characteristic modesty that Adrian Waddingham attributes much of his success to “a series of happy accidents” and so decisive is his calm and measured demeanour that you can almost believe it. Yet the more we talk through the many achievements and experiences of his life so far, the more you realise that this is an extraordinary individual. We meet Waddingham at his offices in London, and are shown into the ‘Imaginary’ room – the first clue that this is a firm of actuaries (all the rooms are named after numbers). But you quickly forget Waddingham is an actuary as he talks enthusiastically about his varied career, including spells in the Far East, growing a successful business, and representing the City as sheriff of London. As a Lancashire lad, Waddingham reveals that he almost followed in the footsteps of his father, who practised as a lawyer locally. Unable to get a place at university to study law, he opted for maths instead. Yet being an actuary wasn’t on the radar, even at the end of his degree. As he explains: “I hadn’t heard of the actuarial profession and wondered what I should do next. All I knew was that I wanted to move to Liverpool to follow a girl I was sweet on.” It was only after stumbling on a job advert for Duncan C Fraser that a life-long career as an actuary began. He adds that the move brought about “both a job and a wife”. Having qualified as an actuary in 1975, Waddingham went on to become a partner in 1977. “Life was good then,” he says, adding “you won’t believe this now, but we were busy setting up defined benefit (DB) schemes”. In 1981 he was offered the opportunity to run the firm’s Malaysian office. During the next four years he worked with both pension schemes and life companies around Asia within a team of just four people. He recalls: “It was a wonderful time, but we were on our own. Back then, if we wanted to speak to London we had to book

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telephone calls in advance.” Waddingham learnt much from the experience and concludes: “I was learning to run a business without realising it.” On his return to the UK in 1985, he was asked to join the much busier London oﬃce. But the following year Mercer took over Duncan C Fraser, and it felt like the right time to set up his own practice.

Setting up in business It was 1987 when Waddingham & Co was established. Although there was plenty of work from self-administered schemes requiring actuarial assistance, he quickly realised the importance of building the credentials of his young firm. So after tempting a couple of old colleagues to join him, he also merged with Rodney Barnett & Co in London, and Barnett Waddingham was born in 1989. Waddingham says: “We had offices in Amersham, Liverpool and London and just under 20 staff. We had no business plan, but lots of enthusiasm and good connections. We didn’t earn much for a few years, but it was exciting.” He adds: “It didn’t feel like that much of a risk. If it went wrong we knew we would be able to find work again, even if that meant we’d have to eat some humble pie. Having supportive partners at home helped in the early days too.” Thanks to the founding partners being “sociable actuaries”, as Waddingham puts it, they maintained good relationships with old colleagues, and gradually picked up more business from their competitors, including acquiring teams of staff when other firms decided to withdraw from areas of actuarial work. They went on to acquire offices in Glasgow, Birmingham, Cheltenham and even Duncan C Fraser’s original office in Liverpool. Waddingham gives credit to “Her Majesty’s government” for the continually changing pension rules that produced work for the business.

TOM CAMPBELL

25/08/2015 08:27

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On my agenda features@theactuary.com

employees to retire on.” While Waddingham does not believe DB as we know it is the solution, he does think we’ll ﬁnd a solution better than DC. He adds: “I was disappointed that the Turner Review didn’t focus on the middle ground between DB and DC.” Waddingham concludes: “I think in a few years’ time employers will see an ageing workforce who can’t aﬀord to retire, and will be asking themselves ‘Shouldn’t we help them to retire?’.” He thinks this could be a driver for new hybrid solutions that will help to manage the problem.

Life in the City

“It looked like a clever plan, but in fact was a series of happy accidents,” he explains. “The thing was, we never said a job was too small or too uneconomic. We just needed to keep busy. After all, we’ve seen large clients grow from small acorns, and it’s all just worked out.” Remarkably, Waddingham doesn’t believe that starting his own firm was particularly brave. “It’s happening all the time! The Association of Consulting Actuaries has over 100 member firms. What we did wasn’t a one-off – the profession is healthy and it’s still happening.” Today, Barnett Waddingham works with over 2,000 pension schemes, and 70% of its business is in relation to DB schemes, although this work is still growing. The other 30% is focused on insurance and wider fields including oil and gas. As we discuss the decline of DB pensions, Waddingham takes us back to when he qualified. “At the time I thought it was a bad time to qualify because the DB schemes were all set up. I remember thinking ‘just my luck’. But I couldn’t have been more wrong. There has been a ceaseless onslaught of regulation because governments can’t do ‘simple’ or ‘permanent’ changes. It’s never-ending.” On the government’s latest consultation to restructure tax relief on pension contributions, Waddingham is critical. “I am not a fan of moving away from the EET regime.” The so-called Exempt-Exempt-Tax method means tax is only paid on money taken out of a pension, not on the way in or as it grows. “It looks like we could be moving towards the ISA regime, with contributions paid from taxed income.” He is sceptical about what this will do to the attractiveness of pensions, and points out the need to make decisions for the long-term so people are motivated to lock away money until retirement. Waddingham also believes that the pensions world could go full cycle. “When I started my career, we were setting up DB schemes because defined contribution (DC) schemes were not delivering. They were not providing a sufficient income for

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Waddingham’s involvement in the City of London began with the Worshipful of Company of Actuaries, founded in 1979. “I got the opportunity to be master in 2010, which allowed me to explore different livery companies and professions. You’re meeting people from all walks of life.” It gave him a window into the City of London Corporation and, after enjoying his time as chair, he confesses: “It didn’t take too much to tempt me to throw my hat into the ring for sheriff of London.” Following his election as one of the two sheriffs of London that support the Lord Mayor, he and his wife moved into the Old Bailey, the official residence of the sheriffs, for the duration of his one-year term. Waddingham explains that one of his responsibilities was to ensure the comfort of the 16 judges that reside in the Old Bailey. He explains: “I had to host lunches for the judges three days a week, to create an oasis in the middle of their busy days. What’s more, I had to find three guests for every lunch.” Looking for 400 guests over the course of the year at first proved a daunting task, but supporting the Lord Mayor at functions every evening meant that it wasn’t so difficult to find them. Waddingham reflects: “I don’t miss the pomp and circumstance, but I miss meeting all these interesting people, including the unsung heroes of the charitable world. Every single night you’re out for dinner. It was great to be busy doing nice things.” It was also an opportunity for Waddingham to fly the flag for the profession. Although he was described by the Queen as “the Lord Mayor’s minder”, in reality being sheriff also meant travelling overseas representing the City and meeting presidents, prime ministers; and even awarding the Freedom of the City of London to Desmond Tutu, whom Waddingham describes as “a lovely man”. So how did he balance this with his day job? “Fortunately, being a partnership means you have some flexibility to slow down a bit.” On the topic of getting involved in other activities in the profession and the City of London, he stresses the importance of firms supporting their people to do more. We end by discussing the future for actuaries in new fields, a transition which Waddingham believes should have been made years ago. “Actuaries are bright people and can make the leap,” he says. “In areas that require long-term riskmanagement, I think we can offer good value for money.” When we ask what his advice would be to younger actuaries today, he contemplates that actuaries of the future will see very different careers to his. However, he is optimistic about their future. He suggests: “Keep in touch with fellow actuaries; you never know what might come your way.” He concludes that perhaps most important of all is simply taking the opportunities that present themselves – an act to which he attributes his greatest successes in life. He puts it simply: “Just say yes when an opportunity arises.” a

TOM CAMPBELL

25/08/2015 08:27

Aon on Benfield Benfie Benfie Be nfi ld d

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Risk. Reinsurance. Human Resources.

ACT.09.15.021.indd 21

24/08/2015 11:43

Soft skills Communication features@theactuary.com

For an actuary giving advice, the support and commitment of others must generally be secured before progress can be made. Achieving this will generally require more than the smooth delivery of a few PowerPoint slides. Whether the target audience is large or small, you must consider the success factors that are required to drive a favourable outcome. Prior to an important meeting, especially if you anticipate a sceptical or hostile audience, you may ďŹ nd yourself thinking: I have designed my presentation material, but what else will it take? Early one morning in 2002, I started to give these factors deeper consideration as I looked out across the misty Beijing skyline from my hotel room. Representing what was then a young organisation, I was scheduled to deliver a keynote address to an audience of some 500 at an international conference. My content was robust, my presentation material

The role of an actuary calls on the skill of presenting advice with a variety of diďŹ&#x20AC;erent approaches, says Samir Parikh

Present and

correct 22

THE ACTUARY â&#x20AC;˘ September 2015 www.theactuary.com

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25/08/2015 08:28

SAMIR PARIKH is chief executive of SPConsulting AB

attractively designed but still the question remained: how would I successfully engage my audience for 45 minutes and, more important, inspire them to act upon the recommendations that I presented? The conclusions that followed have helped me succeed in a broad range of presentation situations, to both colleagues and senior client executives alike. They consider simple, easy-to-implement practices in four speciﬁc areas: ● setting the stage as a speaker; ● generating interest around the topic; ● crafting an audience engagement approach; ● handling questions and concerns.

Introduce yourself To inspire and secure the commitment of others you will need to make a positive impact. One of the most underestimated aspects of any presentation is the speaker introduction, which should be well thought-out. The response from your audience will be based on two factors: the strength of your content and the credibility of the person presenting it. Clearly highlight the experience that you will draw upon to illustrate your topic. Don’t rush through the introduction, and be personable in tone to position yourself as an interesting speaker. Most important, be context-speciﬁc. If you have a presentation at 1pm to discuss changes in regulation, and another at 3pm to present risk management strategies, you will need to modify your introductory words to emphasise your credentials relative to each topic. Even if presenting to colleagues who know you well, make sure that you explain what makes you qualiﬁed to present on this subject.

Generating interest Having earned your position on the stage you need to generate interest. Outline the main points that you intend to cover but, more important, explain why they are relevant to your audience. Weaving these things into a compelling set of introductory words is an art, and the key is to understand who your audience are and to connect to their reality. You may have established credibility as a speaker, but, when it comes to the topic, everyone will be asking themselves the same question: What’s in it for me? If the content of this article were to be presented to graduate students, for example, it might be appropriate to emphasise how the content could help them to progress successfully in their careers. Towards a senior management audience, on the other hand,

IKON

p22_23_sep_consulting.indd 23

introductory words might focus on the importance of engaging stakeholders when getting a new business venture off the ground. Real-world examples and references command a high level of attention, particularly those that refer to the perils of poor practice. A universal trait of humans is that we don’t like to get our fingers burned. Statements such as ‘many projects suffer as a result of their failure to quantify risks’ therefore help to draw attention. Do make sure, however, that your presentation provides solutions to any dilemmas that you introduce.

A two-way street Prolonged periods of one-way communication are challenging both for a speaker and the listening audience. In any live presentation you will need to include some form of interaction, and it is advisable to plan your principal interaction points in advance. The optimal approach will vary according to the structure of your material and the size of the group that you are addressing. The beneﬁt of working with smaller audiences is that you can really have a dialogue with them. Facilitate short discussions, and create additional momentum by inviting them to share their own examples to further illustrate your points. Presenting to larger groups lends itself to other techniques, such as polling (asking for a show of hands from those supporting an opinion), or allowing the audience to collectively respond to simple ‘yes’ or ‘no’ questions. Try to make your ﬁrst interaction early in the session. This gives the signal that two-way communication is expected, and people will naturally pay more attention and be ready to respond. Keep in mind, however, that interaction takes time and your content and timing may need to be adjusted accordingly. Cultural overtones will also have an impact on your engagement approach as some cultures are more open to interaction than others.

Handling questions Some presenters adopt the practice of deferring questions until a window at the end of their session. While this makes the presenter’s job easier, it is a measure that should be avoided other than in exceptional situations, where the number of questions becomes unmanageable. This is for an important reason: your aim is to secure the commitment of your audience, but, until a listener’s questions have been suﬃciently addressed, they are unlikely to commit.

While good question handling requires preparation, it’s usually better to encourage people to speak up, put forward their questions (which may also be lodged in the minds of others) and address them. This will secure commitment and increase the momentum around your topic. Some of the most common ways to handle questions are to: ● answer the question, being clear and concise in doing so; ● politely defer the question to a later point in your presentation, where it can be answered in a clearer context; ● take the question off-line, particularly if the answer is unlikely to be of interest to the wider audience; ● take an action item to look into an answer, if appropriate to do so; ● use your audience – ask others in the room to propose answers and facilitate a constructive discussion. Challenging audiences, on the other hand, may put forward concerns and objections. The skill with which these are handled conveys a key part of a speaker’s credibility. ● Be prepared. When planning a presentation always anticipate the most likely concerns that may come up, consider your approach for handling them, and prepare any additional support material that may be required. It is quite common to prepare presentation slides that will only be used to support the response to particular questions and will otherwise not be shown. A professional presenter thinks ahead and avoids handling what could have been anticipated on the fly. ● Be ready for the unexpected. Always address concerns with a high level of professionalism, even if the concern seems unreasonable or cannot be resolved. Others in the audience observing the dialogue will respect you for this. At the conclusion of my presentation in Beijing, I was content with my speaking performance but was most impressed by the crowd of people who approached me saying that they were inspired and looked forward to implementing some of my ideas. Try using some of the simple techniques shared in this article and see how they can contribute to your own performance next time you present to inspire. a Samir Parikh’s new book, The Consultant’s Handbook: A Practical Guide to Delivering High-Value and Differentiated Services in a Competitive Marketplace, is published by John Wiley

September 2015 • THE ACTUARY www.theactuary.com

25/08/2015 08:28

General insurance Aviation features@theactuary.com

On a

wing and a prayer? In the past year, there have been several major aviation incidents. Randhir Bilkhu considers the risks to airline insurance and the factors aﬀecting proﬁtability

THE ACTUARY • September 2015 www.theactuary.com

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25/08/2015 08:29

RANDHIR BILKHU works

for Global Aerospace, a leading provider of aviation insurance

Aviation is a very small niche sector of the

Table 1: Fatal events per 10 million landings US

Other developed economies

BRIC

Developing world

Five-year average

0.23

0.20

2.68

9.25

10-year average

0.44

1.00

3.15

12.30

Chart 1 Worldwide passenger fatality rates – ﬁve-year rolling average

non-life market, but high-profile catastrophes often thrust this business into the spotlight, as seen in 2014, when Malaysia Airlines lost two Boeing 777 aircraft, and earlier this year, with the Germanwings Flight 9525 disaster. Aviation risks have been insured almost since flying began in the early 20th century. The market developed after the end of the Second World War, when commercial flights became popular. Today, total market premium is estimated to be circa $5.25bn worldwide, split between the four major sub-classes of airlines, aerospace, general aviation and space. Airline is the most high-profile sub-class, providing cover to commercial airlines. A typical policy will cover hull and third-party liability with separate war coverage, which includes a range of perils, such as acts of war, terrorism, sabotage, hijacking and intentional malicious action. The recent Germanwings tragedy where the pilot deliberately crashed the plane is viewed as a war loss. Policy limits for airline cover are large. If an aircraft is destroyed, losses can exceed $100m and, with typical limits for liability cover of around $2bn on a per aircraft basis, coverage is effectively unlimited. This means exposures at risk are enormous. In the five minutes it takes to read this article, there will have been 250 take-offs worldwide, representing $94bn at risk. The earned premium associated with this exposure? $13,500! No single insurer has the capacity to wholly accept such large risks. However, airlines need a single policy to ensure consistency of coverage and claims handling. Therefore, business is written with one lead insurer, which manages policy wording and claims in exchange for a fee, and many co-insurers, which each take a share of the risk.

Fatality per million passengers

0.8

Event frequency

0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 1995

1997

1999

2001

2003

2005

Accident year

GETTY

p24_26_sep_airlines•FINAL.indd 25

2007

2009

2011

2013

Claims for lost baggage, food poisoning or minor aircraft damage are common. Most claims are less than $10m and so are relatively small in size. The largest claims arise from fatal events, with insurers liable for passenger settlements, legal fees, search costs and wreckage site clean-up. Fatal events are relatively infrequent. Although the events of 2014 resulted in 821 fatalities worldwide, 3.2 billion passengers travelled in 2014 so that’s a rate of only 0.000026%, or almost one fatality for every 4 million passengers. However, as claim severity can be high, fatal events form a large portion of the total claim cost. Therefore the

September 2015 • THE ACTUARY www.theactuary.com

25/08/2015 08:29

General insurance Aviation features@theactuary.com

“The five-year averages suggest that for one accident in the US we could expect 40 in the developing world” frequency of such events is a very important feature for insurers. Frequency varies greatly by geographic region, with the biggest difference between the US and developing world as shown in Table 1 on p25. The five-year averages suggest for one accident in the US we could expect 40 in the developing world. This is probably because aircraft tend to be older, maintenance standards lower and pilots less well trained in developing countries. Another important feature of frequency is the trend in fatality rates over time. Chart 1 on p25 clearly shows that fatality rates have decreased over time, dropping from around 0.7 per million passengers in the mid-1990s to almost 0.1 in 2013, equivalent to an 8% annual reduction.

$ per number of passengers carried

Number of events

the answers are learning from mistakes and better technology. The black box has been a crucial tool, allowing detailed analysis to understand the cause of accidents. This has helped aircraft design to be improved to prevent reoccurrence. Pilot errors were a major source of accidents in the past and have been greatly reduced by sophisticated ‘fly-by-wire’ electronic equipment on modern aircraft. Developments like the Traffic Collision Avoidance System (TCAS) have reduced the chance of mid-air collisions. New aircraft have also enhanced survivability. For example, in 2013 a Boeing 777 Asiana Airlines plane crashed at San Francisco airport with three fatalities. In the report, US authorities described how the aircraft’s structure absorbed a tremendous amount of energy on impact. If the same incident had occurred on an older aircraft, it’s Technology boost likely the fatality count would have been Why has there been an improvement? In short, much higher. Safety improvement Chart 2 Airlines events over $100m has been important for airline insurers, helping $1.6bn 7 to offset declining $1.4bn 6 premium rates. It’s likely $1.2bn 5 the trend will continue, $1.0bn 4 particularly as modern $0.8bn 3 aircraft and safety $0.6bn 2 management standards $0.4bn 1 are adopted in the $0.2bn 0 developing world, but $0bn 1993 1996 1999 2002 2005 2008 2011 2014 the rate of improvement Accident year may begin to tail off as No of events over $100m Airlines share of loss over $100m each new step change in *Excludes Sept 11th technology produces Chart 3 Premium per number of passengers proportionately less gain. A further trend to 2.5 highlight is the change in exposures over time. 2 Over the past 10 years, passenger numbers have 1.5 increased dramatically from around 2.1bn in 1 2004 to 3.2bn in 2014. Most of this has come 0.5 from growth in Asia and the Middle East. This 0 trend is expected to 1998 2000 2002 2004 2006 2008 2010 2012 2014 Underwriting year continue, with the

International Air Transport Association (IATA) predicting that annual passenger rates will reach 7bn by 2034.

Profitability 2014 was undoubtedly a difficult year for insurers. There were four catastrophic claims above $100m, which meant many insurers made a loss on their airline portfolios. The events that occurred were highly unusual in their circumstances, which may have led to a perception that the experience in 2014 was an outlier. However, Chart 2 (left) shows that 2014 wasn’t an exceptional year for catastrophic claims. With an average of three per year over the past 20 years, 2014 is only slightly above average. It’s reasonable to assume that this small variation from average frequency would be reflected in the premium, but unfortunately that’s not the situation in the current market. In fact, an era of persistent decline in premium rates since the high following the September 11 attacks have led to rates being at their lowest since the late 1990s, as shown in Chart 3 (left). This is a problem for insurers. With current market premiums around $1,500m, non-catastrophic claims (under $100m) consistently around $1,100m and assuming expenses of 20% of premium, which is somewhat optimistic, that leaves only $100m to cover potential catastrophes and provide a reasonable risk margin. Although catastrophic claims are relatively infrequent, based on the past we could reasonably expect two to three events per year. With an average cost per event of $340m, $100m is insufficient to even cover one claim. What’s more, with only one year since 1993 (Chart 2) with no claims, the likelihood of profit is very low. Despite the losses, the 2014 renewal season showed no signs of a rebound in rates. Competition remains fierce and looks likely to continue. To stay profitable in the future, insurers may have to be more selective around the risks they write. This presents an ideal opportunity for actuaries to add value to the business, using their quantitative skills to aid risk selection. a

THE ACTUARY • September 2015 www.theactuary.com

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25/08/2015 08:29

Advice Of a sort features@theactuary.com

actuary Dear Agony actuary I ﬁnd myself in something of a predicament because I understand that the Regulation Standards Board has released a new standard called “APS X2”, which requires me to have my work peer reviewed. The problem I face is that I am not sure which of my colleagues I trust with reviewing my work. I attach a list of my staﬀ, together with a thumbnail sketch of each. I would appreciate your thoughts. Also, what do you think, is £140 per policy about right? Yours Name and address supplied

Thank you for your letter. Now, I hope your closing question – “What do you think, is £140 per policy about right?” – is not a devious way of getting me to carry out your peer review for you. I have absolutely no way of telling whether this is the right price – I know nothing about your line of business. Mind you, based upon your character sketches, I appear to know only a little less than many of your colleagues. For example, I can immediately rule out Wiggins, Maltravers and ‘Dogface’ as being appropriate peer reviewers. Wiggins’ fondness for absinthe appears to render him unsuitable. And while your review need not be carried out by an actuary, I don’t think Maltravers would be suitable as, from your brief description of him, he appears to be the man who mends the photocopier. ‘Dogface’ is unsuitable because he appears to be a ﬁgment of your fevered imagination. Turning to Michael Spoonbender, would I be correct in deducing from your description of him as “a feckless young shaver” together with your description of what you term your “diverse acts of bravery and derring-do during the Crimean War” that there is something of an age gap between the two of you? In which case, you will have to consider whether Spoonbender is in a position to oﬀer a meaningful challenge to you. Would he not be slightly intimidated in challenging the work

The concept of net present value is one that only actuaries, a handful of Nobel Prize winning economists and Professor Yaﬄe from Bagpuss have the intellectual capacity to grasp

o someone who is not only 150 years his senior of b who also possesses such prowess with but a bayonet? Concerning Doris Francesca Wobblegoose, I w would discount her as a peer review option ssimply on the basis that she died in 1942. It is o of the essence that actuarial peer review must b be done “hot”, at a time when it is able to iinfluence the outcome of the work involved. A And I would advise against waiting until such ttime as cryogenics had advanced to the point w where Ms Wobblegoose was in a fit state to c carry out the work. In fact, having looked through your 19 pages o analysis, diagrams, confused ramblings and of s sundry erotic sketches, I have concluded that n none of your colleagues is in a position to peer r review your work. But this should not cause you to despair, as t there are other options. First, you could resign f from the actuarial profession and absolve y yourself of the formal requirement for peer review. Although I would caution against this. Membership of the profession is a highly sought-after achievement as we are an extremely prestigious organisation with extraordinarily high levels of intellect. The concept of net present value is one that only actuaries, a handful of Nobel Prize winning economists and Professor Yaffle from Bagpuss have the mental capacity to fully grasp. Perhaps the best advice I can offer is that you might look outside your organisation for your peer reviewer. Have you built up a professional network over the years? In one of your appendices you describe your time with ‘Ye Venerational Dining Company of Ye Actuaries’ in this way: “In the company of such luminaries as Cyril “Legs” Eggnog and Percival Cornelius Clutterbuck I have spent many a glorious evening eating with relish the inner organs of beasts and fowls. I like nutty gizzards, a stuffed roast heart and liver slices with crustcrumbs. Most of all, I like grilled mutton kidneys which give to my palate the full flavour of a heated Staple Inn debate.” Might Messrs Eggnog and Clutterbuck be pressed into APS X2 action? Do let me know how you get on. Kind regards Agony actuary

September 2015 • THE ACTUARY 27 www.theactuary.com

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25/08/2015 11:16

Back to bonds Gross redemption yield (GRY) is an inaccurate and inappropriate measure of bond value because it rejects the concept that a longer investment and coupon re-investment term equates to a riskier investment and should therefore attract higher rates of return. With any sloping yield curve and/or variable future yields, GRY is only a relative guideline as to return over the full life of a bond. This might be tolerable if bonds were held for their entire life by a single party. In practice, bonds are rarely, if ever, held by the same investor or investor class from issue date to maturity date, with investor class frequently changing as a bond moves down the curve to maturity. So if GRY is not the correct approach, what is? The objective should be to maximise the total return over the chosen investment term, taking into account potential interest rate changes during that term. The period total return (PTR) can be defined as the historic actual return achieved, on a bond or portfolio, over a defined period of time. Alternatively, PTR can refer to the calculated actual rate of return expected over a specific future term, for a specific change in a bond’s GRY from the current level, over that term. This PTR value is found by deriving the applicable bond price, at the forward settlement date, using the specific forward GRY as the valuation basis, and adjusting this forward price for any bond coupon payments earned/received and accrued interest, during this forward term. PTR can then be defined as the net change from the bond current market price, inclusive of accrued interest content (the ‘dirty’ price),

Ciaran Deeney asks whether gross redemption yield is the best measure of bond relative value?

THE ACTUARY • September 2015 www.theactuary.com

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25/08/2015 08:31

Investment Gross redemption yield

CIARAN DEENEY is a principal with Enhanced Bond Analytics

features@theactuary.com

Scenario

remaining one-year life of this bond – for resultant bond parameters to ensure more to this adjusted forward dirty price, expressed example, six months – the bond interim-period informed scenario analysis and improved as a percentage of the current dirty price. total returns can be of critical importance and investment policy decision making. In practice, a table or PTR matrix can be bear little resemblance to the GRY at purchase. All analytics should accommodate usercalculated for each individual bond, over a This PTR/GRY divergence can be greatly specific requirements and existing investment range of forward terms (for example, one week magnified for longer dated bonds. policy constraints. to one year), and a range of potential changes Therefore, in addition to standard and in the bond current GRY (for example, from -50 non-standard bond parameters, investors basis points to +50 basis points). Matrix cells Logical thinking should focus on quantitative PTR analytics, represent the exact individual bond rates of Once you accept that you should regularly which overcome the shortcomings of GRY as a return, for defined future changes from the optimise PTR, not just GRY at the outset, two measure. The attraction of PTR analysis is that current bond GRY at specific forward valuation questions immediately spring to mind. all calculations and analytics rely solely on terms from the current date. A Are bond prices (particularly of liquid market price, coupons, dates, and more, and do Because PTR is a finite rate of return derived sovereign debt issuance) always ‘logical’ insofar not depend on trend, momentum or time series from the projected forward GRY/curve and is as they properly reflect the fact that PTR criteria, which are inherently subjective. both forward-yield and forward-term specific, optimisation should be the investment Analytics should facilitate multiple-scenario it accords with reality rather than a notional objective of every investor? analysis and permit detailed re-valuations and ‘hold to maturity’ approach. Moreover, because B How can investors evaluate current market analysis of current portfolio holdings including portfolios comprise multiple bond holdings, a prices and future yield-curve scenarios to open switches. PTR matrix of forward terms/yield/average ensure they are optimising PTR in relation to The process then becomes one of optimising deviations for individual bonds and the their curve outlook and investment constraints? PTR, either for a specific forward term/yield combined portfolio satisfies the assessment of The short answer to question A is ‘no’, even in change or scenario analysis over a chosen this fundamental investment objective. highly liquid sovereign debt markets. Because of range or ranges. PTR optimisation should Consider a one-year bond, with a 2% coupon, the fixation with GRY, prices do drift away from permit the user to set as fixed, or change in payable semi-annually and initially priced at their ‘correct’ levels, which optimise PTR. Some absolute or in percentage terms, any user100, that is, with an initial GRY of 2%. Chart 1 bonds will become ‘cheap’ relative to the rest of defined weighted parameter (for example, any below illustrates five possible pairs of six-month the market whereas others will become benchmark constraint), either inclusive or PTR scenarios for five different changes in this ‘expensive’. Crucially, these anomalies for exclusive of adjustments for any changes in net bond’s yield over its first six months. Scenario 3 individual bonds tend to correct themselves capital investment. Ideally, the analytics reflects the initial GRY assumption, that is, an over time, with new anomalies emerging, processes should also assist in the efficient unchanged, constant re-investment rate thereby creating ongoing opportunities for implementation of one-off structural changes to assumption over the full one-year term of the enhanced portfolio returns. the bond portfolio – for example, the timely and bond. The remaining four scenarios illustrate The answer to question ‘B’ is ‘not easily’ – if it accurate execution of revisions to a house view potential different interim and total returns were easy, the anomalies would be short-lived. or investment policy/strategy. over a range of changes in the bond yield after PTRs for any investment term will, of course, be Significant relative portfolio out-performance six months. determined not only by today’s market prices can be added to indexed portfolios by adopting If this bond were bought and held for the full but by the shape and level of the yield curve at a regular routine of even modest PTR one-year term to maturity, the individual total the end of the term. Accordingly, investors need optimisation, through consideration and returns over each of the five scenarios – to employ quantitative calculations using risk-neutral ‘housekeeping’ switches without assuming re-investment of the interim coupon simulated forward-curve levels and their risky deviations from paid – show little the benchmark or variation, ranging Chart 1 Bond semi-annual PTRs vs GRY assumption other constraints. between 2.0050% and In summary, GRY 2.0151%. So to investors 2.0050% remains the most frequently with a one-year time 0.4975% 5 cited of all the individual horizon, the five 1.5000% bond parameters, partly due individual scenarios 2.0075% to convention and ease of produce broadly similar 4 0.7481% calculation. However, results over their time 1.2500% within a bond’s life cycle, horizon of one year. But 2.0100% and to its many, often the individual scenarios 1.0000% 3 1.0000% temporary owners, display a wide range of the shorter term specific potential first-half returns 2.0125% PTRs are more important varying between 0.50% 2 1.2531% 0.7500% measures, as their and 1.50% at the end of cumulative total the first six months, and 2.0151% is the measure applied similarly for second 1.5075% 1 0.5000% in fund manager six-month performances. portfolio performance For investors with time 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% evaluations. a horizons shorter than the 2nd half PTR Tot. return 1st half PTR

IKON

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September 2015 • THE ACTUARY www.theactuary.com

25/08/2015 08:31

Risk Food

Key

features@theactuary.com

Flooding

Torrential rainfall

Food riots

Landslides

Crop epidemic

Severe drought

Farms suﬀer

WHEAT STEM RUST PATHOGEN WINDBLOWN

EL NIÑO Southern Oscillation (ENSO)

Kazakhstan

Russia

Ukraine

Missouri River

Pakistan

Nepal

Turkey Mississippi River Bangladesh North Africa Latin America

India

Middle East South East Asia Brazil Australia

WARMER TEMPERATURES

Argentina

Trevor Maynard discusses the recent food shock scenario published by Lloyd’s of London and considers its implications for insurers

Shock

THE ACTUARY • September 2015 www.theactuary.com

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25/08/2015 08:31

“Food shocks can occur in many ways. Wars and conflicts can affect supply, diseases can reduce yields, transport systems can fail, floods can destroy crops” Abraham Maslow first noted the “hierarchy of needs” in his 1943 theory. Humans have many needs, but it is clear that food comes first. Working with leading academics, Lloyd’s of London has recently published a scenario, Food System Shock: The Insurance Impacts of Acute Disruption to Global Food Supply, which considers the possible implications for the global economy of a disruption on a worldwide scale to this fundamental need. The planet’s population has grown at a breathtaking rate, rising from 1.8bn 100 years ago, to 3.3bn 50 years ago, to 7.3bn today. We have added a whole world of people equal to the global population in 1905 to the planet in just 22 years since 1993. How has the population growth over the past century been achieved? The answer lies in technology and the so-called Green Revolution. Fertilisers, mechanised farming, diseaseresistant high-yielding crops and irrigation have massively increased agricultural output. But the rate of growth in supply has slowed significantly in recent times, and a Green Revolution II is not on the horizon. Meanwhile, food systems have globalised, creating interdependencies and security concerns that link commodities, sectors and parts of the world. Samir Suweis et al in Resilience and Reactivity of Global Food Security argue that the Arab Spring uprisings were strongly influenced by the heat wave in Russia in 2010, which led to reductions in wheat yields. Russia acted to protect its people by restricting sales of wheat, leading to increased global prices through basic supply/demand economics. Egypt, a major importer of Russian wheat, attempted to suppress the price increase but could not ultimately fight the economics; high wheat prices led to social unrest and rioting – the rest

is history. Pre-existing conditions had to be present for the outcome to emerge, but it is likely that food security issues played their part.

Cause and effect Food shocks can occur in many ways. Wars and conflicts can affect supply, diseases can reduce yields, transport systems can fail, floods can destroy otherwise healthy crops and droughts can stop them growing. Tasked with creating an extreme but plausible scenario – with a probability of occurrence within the onein-200 likelihood that insurers must routinely consider – researchers Molly Jahn and Toby Lunt at the University of Wisconsin-Madison, and Aled Jones at Anglia Ruskin University produced a very interesting scenario as illustrated in the graphic (left). In summary, a major El Niño event causes drought in Southern India and Australia, and leads to flooding in the United States and Pakistan. Warmer temperatures allow the Asian soybean rust pathogen to expand its usual range, which reduces soybean yields in South America. The scenario also assumes that major flooding in the US Mississippi river leads to transport disruption, which adds to the severity of the scenario. This leads to reductions in yields of between 7% and 10% for maize, wheat, rice and soy in a number of the major bread baskets around the world. Economic and social scientists estimate that the effect on food prices of such a scenario are such that the prices of each commodity could increase by more than 400%. The impact of rising food prices is felt particularly acutely in poorer countries, where the scenario assumes that a variety of social unrest, terrorism and political violence arises. In one country, the impact spills over

TREVOR MAYNARD is

head of exposure management and reinsurance at Lloyd’s of London

into the banking system, leading to currency effects. Potential insurance outcomes include claims against political violence, political risk, terrorism, event cancellation, environmental liability and property damage. The increased political tension is also assumed to affect investment market confidence, leading to a 5% reduction in US equity markets and a 10% reduction in UK equity markets. Depending on asset mix, such a scenario could therefore affect the liability and asset side of the balance sheet simultaneously. Lloyd’s stresses that this is a scenario and not a prediction or a forecast. It is based on events that have all occurred before, though not in combination. Importantly, the scenario emphasises the power of expert-driven scenarios to explore little-understood emerging risks, and demonstrates the vast depth of knowledge in the academic community. Indeed, the UK and US governments have set up a task force to consider food security impacts of climate change, and the team behind the Lloyd’s scenario was able to draw on their work. The project highlights a gap in modelling capability; academics have built highly detailed global climate models, but more could be done to couple them with behaviouralbased economic or social models. This seems to be an important next step and one that actuaries can help with, given our economic and modelling backgrounds. This work has again confirmed that environmental issues such as water security, climate change and land use are not tomorrow’s problem but today’s. They are business relevant and should be added to our risk registers. Scenarios can help us quantify the financial effects. a

tactics

SOURCE: LLOYD’S OF LONDON

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September 2015 • THE ACTUARY www.theactuary.com

25/08/2015 08:31

Underwriting Health features@theactuary.com

Sugar is everywhere. But, as actuaries, do we

The

Jean Eu looks at the eﬀects sugar has on human health and how its consumption could be used as a rating factor in the underwriting process

really understand the impact it has on our health, and how we can better allow for sugar intake in underwriting? Let’s start with sugar consumption. If asked to name sugary foods, you may think of sweets, chocolate, ﬁzzy drinks, table sugar, and perhaps even fruit. But sugar also appears in savoury foods such as ready meals, soups, salads and sauces; as well as ‘healthy’ foods such as breakfast cereals and yoghurt. Furthermore, starches such as bread, pasta, rice and potatoes also convert to sugar in our bloodstream, having the same impact on our bodies. These ‘hidden sugars’ can add a surprising amount to our daily intake. Sugar is also used by food manufacturers to increase the attraction of their foods. Large brands focus on ﬁnding the ‘bliss point’ – the optimal level of sugar at which sensory pleasure is at its maximum – thus creating products that consumers will crave and return to buy. The ‘low-fat’ food industry has also exploited the use of sugar. Researchers found that by removing fats from foods the taste deteriorated, so counter-balanced this by adding more sugar to make them more palatable. According to the National Diet and Nutrition Survey, adults in the UK consume on average up to 58.8g, or 17 teaspoons, of sugar per day (see Chart 1, right). Yet the World Health Organization recently published draft guidelines recommending that an average adult’s sugar intake should be below 5% of total energy intake. This roughly equates to no more than 25g, or six teaspoons, per day. This means that the average UK adult is currently consuming nearly three times more sugar than is healthy.

The dangers within To understand why sugar consumption is such a problem, we ﬁrst need to understand how our bodies process sugar. The sugars and starches we consume are digested in our intestines to form glucose, which is then

sweetest

taboo

THE ACTUARY • September 2015 www.theactuary.com

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25/08/2015 08:32

JEAN EU is a senior actuary at Correlation Risk Partners, specialising in life and health insurance

Human beings are designed to crave sugar. If you consider the caveman, when humans had to hunt for or gather their food, sugar was hard to come by. Humans may have eaten fruit and recognised it as an instant energy source. As part of our evolution, we recognise sugar as a means of survival, and therefore naturally seek out sweet foods in times of need. Sugar has also been shown to have a similar eﬀect on our brains to any addictive substance. Chemically speaking, dopamine is released when we consume drugs, nicotine or alcohol, giving individuals a ‘high’ that can lead to addiction. When eating food, dopamine is released in the brain; however, after repeatedly eating the same food, dopamine levels begin to plateau, and we no longer ﬁnd the same foods as satisfying. This is an evolutionary tactic, to ensure we eat a variety of food so that our bodies receive the nutrition it requires.

SHUTTERSTOCK / CRAIG ZADUCK

p32_33_sep_sugar•FINAL.indd 33

Consumption as a rating factor Given that sugar has a clear impact on health, it might therefore be appropriate to use sugar consumption as a rating factor in the underwriting process. In theory, if we could measure the level of a person’s sugar consumption, we could calculate the risk of even a healthy individual developing a disease. Current rating factors measure levels of cholesterol, blood glucose and abdominal obesity, however, these are measures of risks that have already occurred.

Chart 1 Average daily intake of non-milk extrinsic sugars (g) Average daily intake (g)

Why we love sugar

Interestingly, no matter how much sugar a person consumes, dopamine levels never even out enough to discourage an individual from eating more sugar. Those who have tried to reduce their sugar intake have often reported withdrawal symptoms akin to drug withdrawal symptoms; for example, dizziness, headaches, fatigue, irritability, shakes and mood swings. Apart from the impact on fat storage and subsequent obesity, sugar also has many other implications for our health. It can lead to tooth decay, non-alcoholic fatty liver disease, metabolic syndrome, cardiovascular disease, obesity and type 2 diabetes, and an increased risk of cancer. For example, consider soft drinks which generally have high sugar content. Whether or not there is a direct link, it is interesting that consumption has risen along with the prevalence of obesity. See Chart 2 (below).

80 60 40 20 0 1.5-10

11-18

19-64

65+

Age group

Chart 2 UK obesity versus soft drinks correlation

Litres per person

transported around the body through our bloodstream. The glucose is absorbed by our body’s cells for energy. To regulate the amount of glucose in our blood, the pancreas releases a hormone called insulin. The more sugar in our bloodstream, the more insulin is released to help lower it. Equally, if blood sugar is low – say, between meals or during exercise – then a second hormone called glucagon is released by our pancreas to convert the stored sugar back into glucose and increase blood sugar levels. Both insulin and glucagon work together to regulate blood sugar levels. Any excess sugar is stored ﬁrst in the liver and muscles if glycogen levels are low. However, if glycogen levels in the liver or in the muscles do not need replenishing, the excess sugar is stored as triglycerides in fat cells around the body. A problem occurs with the consumption of too much sugar. When we put a high level of sugar into our bodies too quickly, our body releases too much insulin in response to the sugar ‘ﬂood’. This causes our blood sugar to drop below normal levels, resulting in hypoglycaemia, or a sugar crash. There is a delay between this and when the body begins converting the stored sugars in our bodies back to glucose. This is when sugar cravings occur, in an attempt to replenish what our body thinks it has lost. So we take on even more sugar, and the process starts again. A further complication is that the consumption of fructose or fruit sugars (the base of all table sugar) has been shown to increase the resistance of the brain to leptin, the protein which tells our body it is full and satiated.

250 200

60%

150

40%

100 20%

0 1982

1990

Soft drink consumption

2013

% adults obese (BMI>25)

Source: National Diet and Nutrition Survey 2008/9-2011/12

Furthermore, measures of blood glucose only provide a snapshot view at a specific point in time, rather than a measure of someone’s dietary habits. Individuals could answer questions about their food habits to indicate the amount of sugar they are consuming – but this is highly dependent on the individual’s memory, and on the questions being answered accurately and truthfully. We need to measure the amount of glucose being consumed by an individual over a prolonged period of time. Such a test would be a good indicator of future health before a disease advances. Measuring sugar consumption may not be a too distant possibility. Wearable technology used by diabetics to monitor blood glucose levels is already in use. For example, a continuous glucose monitor (CGM) uses a tiny sensor under the skin of an individual’s stomach to measure blood glucose levels every five minutes, and sends a signal to a receiving device. The CGM sounds an alarm if blood sugar drops below a certain level, and can be connected to a number of smartphone apps. There are also non-invasive methods of measuring blood glucose levels, such as GlucoWise, a device which measures blood sugar levels by squeezing the skin between the thumb and forefinger, or the earlobe, and connects wirelessly to a smartphone app, giving users a non-invasive and painfree method of continuously measuring their blood sugar. An article published in the Journal of Nutrition (June 2013) reported that researchers in the United States have recently identified a biomarker for dietary sugar, which would enable detection of habitual sugar intake from a hair or blood sample. The methodology is still being developed, but it would appear that the test may become available in the near future. While it is becoming more commonplace to measure sugar consumption with the aid of wearable technology, there are other considerations to investigate before sugar intake can be used as a rating factor. These include the impact of salt and fat consumption on an individual’s future health in conjunction with sugar intake; how much exercise the individual does, and how this may negate the impact of excess sugar intake; and the quantification of the exact level of risk associated with excess sugar consumption. There are also socio-economic factors to consider. Traditionally, the less wealthy are associated with poorer health. However, these parts of the population may live off the land and consume less processed foods and sugar than their more affluent counterparts. In this scenario, it may actually lead to better health for them in the long run. a

September 2015 • THE ACTUARY www.theactuary.com

25/08/2015 11:17

At the back Coﬀee break puzzles@theactuary.com

Puzzles

PRIZE PUZZLTE TO H BROUGU BY YO AN MILLIM

Across

IDENTITY THEFT BY NYLFIA

Solutions in 15 entries include trigonometrical functions. These aren’t included in the subsidiary part of the relevant clues. A further solution contains a reciprocal function, normally clued. All deﬁnitions refer to the complete solution 1

For a chance to win a £25 Amazon voucher, please email your crossword solution to: puzzles@theactuary.com by Wednesday 16 September

1 Eastern city is built without computer infrastructure? (8) 5 Appearance of Manx cat displaying a lunar frenzy (6) 10 Took leading role when last character out of Reds got smeared (7) 11 Challenges book (7) 12 Months in space (6) 13 Cradle forms dwelling place for the beginner (8) 15 Become rich from pound put on painting (6,3) 16 Force applied by pointed end of tool (4) 20 Help lass when Merchant Navy depart (4) 21 Hot and bothered pet amused imbecile (7,2) 24 “Take shoe like Choo”, leading halves make Jews cast oﬀ (8) 26 Ancient mystic sneezes wildly with unknown item expelled (6) 28 Authorise typesetter’s head to follow condensed printing method (9) 29 Obsessive with change of heart found wanting (5) 30 German entertainer (6) 31 Article follows sailor’s classiﬁcation of liqueur (8)

Down 14

1 2 3 4 6 7 8 9 14 17 18 19 22 23 25 27

Bug used to locate Institute in City? Just the opposite (6) Started in building and passed through an area (9) Poles brought in wanting air – induced unconsiousness (8) Absurd urge to show tongue (4) Free reactionary on request, at last (2,4) Concerning substance produced from sap (5) Finally remaining as lot got distributed (4,2,2) Kindly person on expedition when male replaces female (9) Swan provided on New Year’s Festival (9) Fun to think people get into a temperature (9) Case of a slut abandoned (8) Large deer seen during hail in Finland (8) Cover assumed habitually by upper member? (6) Sort after regarding second draft (6) Leaders of senseless attack in nick (5) Wound up loose screw? (4)

Can you spot the patterns inﬂuencing your business? We help you identify emerging trends among complex business dynamics. Our innovative and unique approaches to enterprise risk, strategy and capital management will help you make better strategic business decisions and see more clearly than the competition. Get new insights on your business at uk.milliman.com.

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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 £25 Amazon voucher, email your solution to puzzle 639 to: puzzles@theactuary.com by Wednesday 16 September

PRIZE PUZZLTE TO H BROUGU BY YO AN MILLIM

Clocking oﬀ Mensa puzzle 639

Clock A was correct at midnight. From that moment it began to lose three and a half minutes per hour. The clock stopped two hours ago showing clock B. What is the correct time now? The clock runs for less than 24 hours.

A. 00:00

B. 13:11

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.

Addling abacus Mensa puzzle 640

DENT

Mix and match Mensa puzzle 641 When each word is rearranged, one of them can be used to preﬁx all the others to give four longer words.

MINTY TUNER

What are they?

is to

DINE LIBEL

is to

Boxing tryout Mensa puzzle 642

Bridge puzzle 56 Was there a choice?

Which square is the odd one out?

♠ A4 ♥ 10987 ♦ Q986 ♣ A82

Playing Duplicate Pairs, as South you open 1♥. Partner bids 3♥. Although you have a 7 loser hand, holding two AKs, you bid 4♥.

N W

E S

♠ 762 ♥ AK652 ♦ AK3 ♣ 97

West leads ♠Q. You duck and win the continuation. You play a heart to the Ace and the ♥J falls from West. Once you have ﬁnished sorting out the trump suit, you will play diamonds. When you cash ♦AK, the ♦J is played by East. How do you play these two red suits? Remember this is Pairs, so overtricks are important. Bridge puzzle provided by David Lampert

These puzzles are sponsored by:

SHUTTERSTOCK

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September 2015 • THE ACTUARY www.theactuary.com

25/08/2015 08:32

puzzles@theactuary.com

SOLUTIONS FOR AUGUST 2015 PRIZE PUZZLTE TO H BROUGU BY YO AN MILLIM

Emmental challenge Mensa puzzle 635

S C R A P C E A O X F O R T L E T E E N C C W I T C H A Y T H E M E G A R O O K F T O A G R A R S I A T O P O L 11

D S

E A 22

If [ % X @ @ # $ is the code for CHEDDAR, what are the following cheeses? a)

X@#+

&$£X

{XO#

I S

I N S I D E T R A N C K I

Congratulations to this month’s winner – Henry Tham of KPMG

Bird brain teaser Mensa puzzle 637 A log of bird numbers visiting a garden is as follows. How many robins visited? Magpie – 8 Pigeon – 2 Thrush – 12

Seagull – 7 Robin – ?

ANSWER Four. The alphabetical value of the ﬁrst letter, minus the alphabetical value of the last letter gives the number

What number is missing in this sequence? ANSWER 342. The numbers are cube numbers minus one

Bridge puzzle 55 Two’s company ♠ 864 ♥ QJ104 ♦ AK7 ♣ QJ2

As South you open 1NT. Partner bids 3NT and West leads ♠3. (NB with a 4-3-3-3 distribution, it is better not to bid Stayman) 1 Plan the play.

N W

2 Should you ask any questions? If so, of whom and when?

S ♠ A10 ♥ K52 ♦ QJ62 ♣ A1097

U E A A T S T S E W E R A T L H O M U S S E

B L E R A R S N E D

U E M C E R U G E A N C A K E R A D B T I N Y A N N C E

Congratulations to this month’s winner – Gerald Notley

ANSWER a) Edam b) Brie c) Feta

Fun run Mensa puzzle 636

T R O B O M E S E B R V E I C E E

At the back Coﬀee break

Bridge puzzle provided by David Lampert

Search for a saying Mensa puzzle 638

ERE ION LAT STF

HES IMI OFF TAT

INC IST ORM TERY

A well-known proverb has been split up into groups. Rearrange the groups to form the proverb. What is it? ANSWER: Imitation is the sincerest form of ﬂattery.

You have 6 tricks on top and knocking out ♥A will guarantee a further 3. The problem is that the defence have found your weak suit. If spades divide 4-4, your plan will work but if they are 5-3, then as soon as you give up a trick to ♥A the defence will take a total of 5 tricks. If so, your only hope is to find East with ♣K and make a further 3 tricks by way of a successful club finesse. So which should we do? The first thing to do is duck the first spade and see what East returns. If the ♠2 is returned, you can (probably) go ahead with your original plan. Why probably? You need to ask East if they are playing standard leads (i.e. 4th highest in this case). It is possible that the ♠2 does not appear at all. Again, ask the question. If East answers in the affirmative, then you have to decide whether West is cunningly concealing the ♠2, holding ♥A, or East is concealing it, hoping you take the club finesse which will lose to West’s ♣K. Good bridge players can be very devious! To give yourself the best hope that the defenders will play normally to help each other, rather than deviously to confuse Declarer, wait until the 2nd trick has been completed before asking East the question. Ask too early and deviousness is more likely! Bridge puzzle provided by David Lampert

THE ACTUARY • September 2015 www.theactuary.com

p36_sep_puzzle_solution.indd 36

SHUTTERSTOCK

25/08/2015 08:33

At the back Student student@theactuary.com

Student Jessica Elkin looks at the surprising similarities and the diﬀerences between students and qualiﬁed actuaries

UNQUALIFIED SUCCESS Sometimes I lie and tell people that I am an actuary. It’s much easier that way. They ask what I do and the words just come out. People always believe me, so convincing has the lie become. Sometimes even I forget that I am not an actuary. To be clear, when I say it’s ‘easier’, I mean that telling a layperson that I’m an actuary rather than an actuarial student is marginally easier to explain, in the sense that scaling a cliff face just using your arms is easier than doing it just using one arm. The difference is minimal in a sense, but significant at the time. And they’re all baffling endeavours to the outsider. The difference between being a student and being qualified is similarly both minimal and significant. It’s minimal in the sense that the student may have worked longer than the qualified actuary, may have a broader range of experience, may even have more technical ability. He or she may be fitter, funnier, better-looking and kinder to animals and the elderly. But you shouldn’t use me as an example. I’m not your average student. So how is it significant? I think a lot of students, and indeed a lot of our colleagues, think of the difference between students and qualified actuaries as being mostly just that tick-box of examinations. And, owing to the above statement about skills and experience, this is understandable. However, that’s not all. Or so I hear.

PHIL WRIGGLESWORTH

p37_sep_student.indd 37

Mind the gap There must be some difference between being qualified and not qualified. Apart from the salary, of course. I think we can all agree that the salary increase is a good enough reason to put some effort into it. I decided to have a look on the IFoA website to check up on this, since there is a whole section called “Just qualified”. After congratulating me on qualifying (I try not to let this go to my head), it tells me, “You can now enjoy the many benefits that come with membership of the Institute and Faculty

of Actuaries.” I am already a member of the IFoA and have been since 2011, so that’s fairly redundant. It goes on: “We support members throughout their careers, helping them maintain professionalism and career progression through a programme of events and courses backed by an extensive information resource.” I’m still at something of a loss. Not to say that this section of the website isn’t useful. It lists out the responsibilities of the qualified actuary with regard to professional skills and continuing professional development, which makes for helpful if dry reading. I wrote about this in the September 2014 issue, in case you want a brief overview that’s light on content and heavy on Game of Thrones references (bit.ly/1NkC4lh). In theory, qualified actuaries can demonstrate all the skills from all the syllabuses from all the examinations they have passed. Easy, right? However, reading all of those would be a long job. So how about we look at the skills you need to have demonstrated in your work-based skills submission in order to qualify? They fit into broad, digestible categories. We have: ● technical application of actuarial skills; ● judgment; ● professional and ethical; ● communication; ● commercial; ● ICT; ● management. Logic suggests these are the hurdles to overcome, and – eureka! – they do explain a lot. To some extent, the above skills are all covered by exams anyway. But some of the less tangible and difficult to measure skills are hard-won and come with time and ample experience. This explains why work-based skills exist. It’s true some actuarial students have more experience than some qualified actuaries. And it’s not that non-actuaries don’t have talents in the above areas. It’s just that you must demonstrate them in order to qualify. Exams are only a sliver of the pie, but still part of it, to the chagrin of many a slow qualifier. I reckon that the one that really marks out the difference between a student and a bona fide actuary is judgment – judgment backed up by the weight of experience. Personally, I can barely decide between chocolate and vanilla. But then, I’m not an actuary. No matter what I may have told you. a

September 2015 • THE ACTUARY 37 www.theactuary.com

25/08/2015 08:33

At the back Appointments

SPONSORED BY

peoplemoves@theactuary.com

Moves positions for a number of leading ﬁrms. He has over 25 years of ﬁnancial industry experience.

Mercer has announced the appointment of Ravi Rastogi (above) as a partner and insurance group leader (Europe). He will be based in Mercer’s London oﬃce, with responsibility for providing overall leadership of the insurance group. Rastogi joins Mercer from Towers Watson, where he was the EMEA leader of the insurance investment advisory group. Prior to this, he held senior pensions and insurance advisory

The Government Actuary’s Department (GAD) has appointed Sue Vivian (below) to its management board as head of public-sector pensions. In this executive role, Vivian will oversee the advice that the department gives to some 20 schemes with 12 million members in total. She joined GAD in 2004 after spending

many years in privatesector consulting. Pitmans Trustees (PTL) has announced the expansion of its presence in London with the appointment of Alison Bostock (right) as a client director. Bostock is a graduate of Christ’s College, Cambridge, and joins PTL with 25 years of actuarial, investment and deﬁned contribution experience. She previously worked at Punter Southall, where she was a scheme actuary, investment

previously deputy chairman of Scottish Widows Group and a non-executive director of TSB Bank.

consultant and head of the London oﬃce. Prior to this, she was consultant and actuary at Clay & Partners. Norval Bryson (right) joined the board of the Prudential Regulation Authority in September as an independent member. He was

www.hfg.co.uk

JAMES MORELAND Employer and area of work

If you could learn one random skill, what would you learn?

How would your best friend describe you?

I’d love to improve my French and speak it ﬂuently.

An excerpt from the best man’s speech at my wedding was: “James is loyal, determined and hard working.” But he also said: “James never did the dishes and was stingy about the heating.”

Favourite Excel function?

What motivates you?

Coming from the Highlands, I love mountains. There’s nothing more relaxing than a few days in the hills.

What would be your personal motto? “Inch by inch, life’s a cinch; yard by yard, life is hard.”

Name ﬁve dream companions to be stuck on a desert island with? Sir Ranulph Fiennes; Jonny Wilkinson; Michael McIntyre; Prince Harry; my wife, Rachel.

What’s your most ‘actuarial’ habit? I keep exceptionally detailed spreadsheets of my own personal ﬁnances.

ACTUARY OF THE FUTURE

Hymans Robertson, pensions.

The sense of achievement when I’ve completed a diﬃcult task – whether that is ﬁnishing a half marathon or solving a complex problem at work.

Barnett Waddingham, has appointed John Hoskin (right) to join its insurance consulting team, as the ﬁrm continues to expand the

breadth of services it oﬀers to insurance companies. Hoskin joins the ﬁrm as an associate and will advise life insurance companies primarily on unit-linked issues. He joins from Towers Watson, and is the actuarial function holder for two insurance companies.

=YEARFRAC (start date, end date, basis) – number of years between two dates.

How do you relax away from the oﬃce?

Alternative career choice? Royal Air Force. While at university I was a part of the East of Scotland Universities Air Squadron and had an amazing time volunteering with Mountain Rescue.

What song best describes your work ethic? Another [Transfer Value] Bites the Dust – Queen

Greatest risk you have ever taken? At the age of nine I jumped oﬀ a moving train. I was on a family

holiday in Portugal and we’d missed our stop so I just jumped oﬀ. My parents were horriﬁed.

If you could go back in history, who would you like to meet? US president Abraham Lincoln. He led the country through a turbulent time so I’m sure he’d be able to pass on some wisdom.

If there was a movie produced about your life, who would play you, and why? Hugh Laurie, because he could capture my exuberant enthusiasm and cheeky, devilish sense of humour.

If you could be anyone else, who would it be? James Bond (if ﬁctional characters are allowed).

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

aotf@theactuary.com

THE ACTUARY • September 2015 www.theactuary.com

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Is your role repetitive or do you feel a lack of progression? A global Ƥ Ǥ ơ

to continue their exams and get maximum exposure to a range of ơ ǯ ǯ Ǥ ǣ ̻ Ǥ Ǥ ǣ ͙͘͘͠

͋͠͝ Ǧ ͋͡͝ ǡ

Ǥ on group reserving there will be responsibility to get involved in capital and risk when required. A strong candidate presents extensive reserving Ƥ Ǥ ơ Ǥ ǣ ̻ Ǥ Ǥ ǣ ͚͘͘͠

ȋ Ƥ Ȍ

͋͞͝ ή ǡ

Ƥ ǯ ƥ Ƥ ǫ ơ ǫ ǡ Ǥ Ƥ team. This role is a great stepping stone to kick start your Actuarial career if ǯ Ǥ con ǣ ̻ Ǥ Ǥ ǣ ͚͘͘͠

Ǧ Pricing Contractors

͋͘͘͠ Ǧ ͙͚͋͘͘ ǡ

Capital Contractors

͋͘͘͟ Ǧ ͋͘͘͡ ǡ

Ǥ Ȁ Ǥ ǡ Ƥ Ǥ ǣ ̻ Ǥ Ǥ ǣ ͙͘͘͠

This established insurer is looking for a contractor for an initial 6 month period Ǥ across the business predominantly within capital modelling and be involved Ǥ Ǧ ǡ Ǥ ǣ ̻ Ǥ Ǥ ǣ ͚͘͘͠

Reserving TP Contractors

Solvency II Actuaries

͋͘͘͠ Ǧ ͙͚͋͘͘ ǡ

ǡ ǯ Ȁ Ǥ ͚ǡ Ǥ ǡ Ƥ Ǥ ǣ ̻ Ǥ Ǥ ǣ ͛͘͘͠

+44 (0) 207 337 8800

͋͘͟͝ Ǧ ͙͚͋͘͘ ǡ

This leading insurer is looking to recruit a Solvency II Actuary with Internal Ǥ have up to date S2 knowledge and know how to apply them practically to the business as well as experience in reviewing and challenging the model. ǣ ̻ Ǥ Ǥ ǣ ͘͘͜͠

Ǥ Ǥ Ǥ September 2015 • THE ACTUARY 39 www.theactuary.com

ACT Rec Sept15.indd 39

24/08/2015 16:42

Appointments

THE ACTUARY • September 2015 www.theactuary.com

ACT Rec Sept15.indd 40

24/08/2015 16:42

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

www.theactuaryjobs.com

Senior Non-Life Actuary, London ƩƌĂĐƟǀĞ ^ĂůĂƌǇ н ĞŶĞĮƚƐ Θ ŽŶƵƐ

Our client, an established and successful Lloyd’s syndicate is looking to appoint a senior actuary for their growing business. Based in London, key responsibilities are to lead and manage a team of high-performing actuaries and analysts. The main responsibilities will be the reserving process, and planning / pricing. The ideal candidate is a qualified actuary working in the Lloyds Market with good experience of a broad range of property & casualty business lines. Good communication/commercial skills are expected. Please contact us for a confidential discussion.

ůŝĞŶƚ DĂŶĂŐĞƌ /ŶƐƵƌĂŶĐĞ͕ >ŽŶĚŽŶ ƩƌĂĐƟǀĞ ^ĂůĂƌǇ н ĞŶĞĮƚƐ Θ ŽŶƵƐ

Our client, an investment advisory firm and asset manager, is looking for a (senior) client manager who has a good track record of managing key relationships. The person would offer advice on strategic investment reviews, asset allocation, manager selection, performance review and asset allocation.The individual will ideally have a good network within the non-life insurance market and enjoy being part of a dynamic business which is anticipating strong growth over the next few years. Good knowledge of investment and risk related topics (E.G. Solvency II) would be an advantage.

ĂƉŝƚĂů DŽĚĞůůŝŶŐ ŶĂůǇƐƚ͕ >ŽŶĚŽŶ ƩƌĂĐƟǀĞ ^ĂůĂƌǇ н ĞŶĞĮƚƐ Θ ŽŶƵƐ

Our client, a Lloyd’s syndicate, is looking to enhance their actuarial capital modelling team. Principal tasks will include capital model parameterisation, running of the model and production of model outputs. Other tasks include documentation, assisting in meetings and assisting with the asset model. The ideal candidate is a capital (student) actuary with experience in Igloo.

^ĞŶŝŽƌ ĐƚƵĂƌŝĂů ŶĂůǇƐƚ͕ >ŽŶĚŽŶ ƩƌĂĐƟǀĞ ^ĂůĂƌǇ н ĞŶĞĮƚƐ Θ ŽŶƵƐ

Our client, a leading global insurer, is looking to hire an actuarial analyst for their reserving team. The main remit is to assist in the reporting and reserving process across several lines of businesses. Another aspect of the role is to provide support in business planning, portfolio analysis and monitoring. Commercial awareness and strategic thinking are required to be successful. The ideal candidate will have gained experience in reserving and is a team player with very strong communication skills. The actuarial analyst is expected to work closely with other departments such as claims and underwriting. Please get in touch with us for a confidential discussion if you have been involved in several reserving processes and are looking for a new challenge with a market leading organisation. &Žƌ ŵŽƌĞ ŝŶĨŽƌŵĂƟŽŶ ƉůĞĂƐĞ ĞŵĂŝů ƉŚƵ͘ŶŐŽĐΛŝƉƐŐƌŽƵƉ͘ĐŽ͘ƵŬ

>ŽŶĚŽŶ KĸĐĞ͗ IPS Group, Bevis Marks House, 24 Bevis Marks, London EC3A 7JB dĞůĞƉŚŽŶĞ͗ +44 207 481 8686 Email: actuarial@ipsgroup.co.uk tĞďƐŝƚĞ͗ ŚƩƉ͗ͬͬǁǁǁ͘ŝƉƐŐƌŽƵƉ͘ĐŽ͘ƵŬ dǁŝƩĞƌ ͗ Λ/W^'ƌŽƵƉh< Linkedin: IPS Group ACT Rec Sept15.indd 41

September 2015 • THE ACTUARY 41 www.theactuary.com

24/08/2015 16:42

Appointments

VALUE BETTER PEOPLE? VALUE BETTER RECRUITMENT Backed by practising actuaries, weâ&#x20AC;&#x2122;re the true General Insurance recruitment specialists. OUR EXPERIENCE, YOUR ASSET

RESERVING & PRICING ACTUARY

RISK MANAGEMENT ACTUARY

DATA ANALYST

As a Reserving & Pricing Actuary for this Lloydâ&#x20AC;&#x2122;s syndicate youâ&#x20AC;&#x2122;ll develop rates, UDWLQJ SODQV SULFLQJ VWUDWHJLHV DQG ĂžQDQFLDO forecasts in order to achieve the company REMHFWLYHV IRU SURĂžWDELOLW\ DQG JURZWK Nearly FIA up to 3 years PQE required.

4XDOLĂžHG ,JORR &DSLWDO $FWXDU\ IRU D JOREDO insurance company with a syndicate at Lloydâ&#x20AC;&#x2122;s. Promote effective ERM throughout the business by supporting the Head of Capital to: Develop and deliver marketleading capital modelling capabilities.

A highly innovative insurance business requires a Data Analyst to work alongside the underwriting team. The role will focus on Loss Ratio/Claims Analysis and management of MI and KPIâ&#x20AC;&#x2122;s. Experience of VBA or SAS and excellent communication skills required.

b Â¸ Â

London Up to ÂŁ100,000 PERMANENT

+44 (0)20 7256 9777 |

London Up to ÂŁ130,000 PERMANENT

London Up to ÂŁ50,000 PERMANENT

WWW.FENASSOCIATES.COM

CALLING ALL HIGH PERFORMANCE CANDIDATESâ&#x20AC;Ś PRICING MANAGER London Paying up to ÂŁ70k We are currently seeking a motor renewal pricing manager for one of the worldâ&#x20AC;&#x2122;s leading multinational quoted insurance groups, with strong numeracy skills and understanding of statistical analysis, previous pricing experience is essential in this role which should include optimisation, cost analysis and modelling. For a conďŹ dential discussion please contact Bradley Doyle on 0207 929 7667 b.doyle@darwinrhodes.com

SENIOR PENSIONS CONSULTANT & ACTUARY

HEAD OF CAPITAL AND STRESS & SCENARIO TESTING

HEAD OF MODELLING AND ACTUARIAL SOLUTIONS

London Paying up to ÂŁ80k

London Paying up to ÂŁ85k

London Paying up to ÂŁ75k

Our client is seeking a qualiďŹ ed pensions consultant actuary with minimum 4 yearsâ&#x20AC;&#x2122; experience to join an ambitious team. To play a key part in dealing with clients and managing the junior members of the team.

An experienced qualiďŹ ed life actuary with signiďŹ cant management experience required to be responsible for determining and managing the regulatory and economic capital requirements for an international life company.

For a conďŹ dential discussion please contact Bruno Marqeshi on 0207 929 7667 b.marqeshi @darwinrhodes.com

For a conďŹ dential discussion please contact Adam Goodwin on 0207 929 7667 a.goodwin @darwinrhodes.com

An experienced qualiďŹ ed life actuary with signiďŹ cant management experience required to be responsible for the production and delivery of modelled results (actuarial liabilities, capital and projections) to key stakeholders, including the Valuation and Reporting and Capital & SST Teams.

Seeking a qualiďŹ ed Actuary with 10-15 years of experience, preferably someone with Health Valuation experience from reinsurance. You will focus on growing their health portfolio in Asia and providing advice for external reporting in US & HK GAAP, capital management and internal management reporting.

For a conďŹ dential discussion please contact Adam Goodwin on 0207 929 7667 a.goodwin @darwinrhodes.com

For a conďŹ dential discussion please contact Mable Kwong on +852-5337 9547 m.kwong@darwinrhodes.com

REGIONAL VALUATION ACTUARY Hong Kong HKD $1M-1.2M p.a.

THE ACTUARY â&#x20AC;˘ September 2015 www.theactuary.com

ACT Rec Sept15.indd 42

24/08/2015 16:42

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

George Bird Life Interim +44 (0) 207 337 8806 georgeb@hfg.co.uk

Erin O'Donnell Life & Risk +44 (0) 207 337 1202 erin@hfg.co.uk

Life insurance roles Student Pricing Actuary

ÂŁ30k - ÂŁ45k basic, London

Research Actuary

ÂŁ60k - ÂŁ70k basic, London

An excellent opportunity for a student Actuary to join a global insurer in their Pricing team. You must have previous experience working in pricing and have completed the CT series of the actuarial exams. The company has a track record of promoting people internally, as such there is the possibility to have an exciting career in a global player. For more information about this role please contact: abby@hfg.co.uk REF: AT0801

Â&#x2030;Â&#x201D;Â&#x2018;Â&#x2122;Â&#x2039;Â?Â&#x2030; Â&#x2030;Â&#x17D;Â&#x2018;Â&#x201E;Â&#x192;Â&#x17D; Â&#x17D;Â&#x2039;Â&#x2C6;Â&#x2021; Â&#x201D;Â&#x2021;Â&#x2039;Â?Â&#x2022;Â&#x2014;Â&#x201D;Â&#x2021;Â&#x201D; Â&#x192;Â&#x201D;Â&#x2021; Â&#x17D;Â&#x2018;Â&#x2018;Â?Â&#x2039;Â?Â&#x2030; Â&#x2C6;Â&#x2018;Â&#x201D; Â&#x192; Â?Â&#x2021;Â&#x192;Â&#x201D;Â&#x17D;Â&#x203A;Č&#x20AC;Â?Â&#x2021;Â&#x2122;Â&#x17D;Â&#x203A; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ć¤Â&#x2021;Â&#x2020; Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x203A; to join their team in a newly created Research Actuary Position. You will be leading the production of experience analysis for mortality, morbidity and persistency. The role involves a mix of data handling and Â&#x2013;Â&#x160;Â&#x2021;Â? Â&#x201D;Â&#x2021;Â&#x17D;Â&#x192;Â&#x203A;Â&#x2039;Â?Â&#x2030; Â&#x2013;Â&#x160;Â&#x192;Â&#x2013; Â&#x2020;Â&#x192;Â&#x2013;Â&#x192; Â&#x2039;Â? Â&#x2019;Â&#x201D;Â&#x2021;Â&#x2022;Â&#x2021;Â?Â&#x2013;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x2022; Â&#x2013;Â&#x2018; Â&#x2013;Â&#x160;Â&#x2021; Â&#x201E;Â&#x2018;Â&#x192;Â&#x201D;Â&#x2020;Č&#x20AC;Â&#x2022;Â&#x2021;Â?Â&#x2039;Â&#x2018;Â&#x201D; Â?Â&#x192;Â?Â&#x192;Â&#x2030;Â&#x2021;Â?Â&#x2021;Â?Â&#x2013;Ç¤ For more information please contact: abby@hfg.co.uk REF: AT0802

Managing Analyst

Consulting Actuary

ÂŁ60k - ÂŁ80k basic, London

We are working with a global ratings agency who are looking at bringing in a senior individual to their Insurance division, with particular focus on the Italian market. You are required to have some knowledge of Â&#x2013;Â&#x160;Â&#x2021; Â&#x2013;Â&#x192;Â&#x17D;Â&#x2039;Â&#x192;Â? Â?Â&#x192;Â&#x201D;Â?Â&#x2021;Â&#x2013;ÇĄ Â&#x201E;Â&#x2021; ĆŞÂ&#x2014;Â&#x2021;Â?Â&#x2013; Â&#x2039;Â? Â&#x201E;Â&#x2018;Â&#x2013;Â&#x160; Â?Â&#x2030;Â&#x17D;Â&#x2039;Â&#x2022;Â&#x160; Â&#x192;Â?Â&#x2020; Â&#x2013;Â&#x192;Â&#x17D;Â&#x2039;Â&#x192;Â?ÇĄ Â&#x201E;Â&#x2021; Â&#x192; Â&#x2022;Â&#x2013;Â&#x201D;Â&#x2018;Â?Â&#x2030; Ć¤Â?Â&#x192;Â?Â&#x2026;Â&#x2039;Â&#x192;Â&#x17D; Â&#x192;Â?Â&#x192;Â&#x17D;Â&#x203A;Â&#x2022;Â&#x2013; Â&#x192;Â?Â&#x2020; Â&#x160;Â&#x192;Â&#x2DC;Â&#x2021; Â&#x2030;Â&#x2018;Â&#x2018;Â&#x2020; Â&#x2019;Â&#x201D;Â&#x2021;Â&#x2022;Â&#x2021;Â?Â&#x2013;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Č&#x20AC;Â&#x2026;Â&#x2018;Â?Â?Â&#x2014;Â?Â&#x2039;Â&#x2026;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â? Â&#x2022;Â?Â&#x2039;Â&#x17D;Â&#x17D;Â&#x2022;Ç¤ For more information please contact: abby@hfg.co.uk REF: AT0803

Actuarial Systems Developer

ÂŁ550 - ÂŁ750 / day, 3 months, West Midlands

A FTSE 100 life insurer are looking for an Actuarial Developer to join their Systems team. The role will involve dealing with large datasets and data analysis utilising actuarial software and techniques. The ideal candidate will have excellent knowledge of the full actuarial system stack. Knowledge Â&#x2018;Â&#x2C6; Â&#x2013;Â&#x160;Â&#x2021; Â&#x2021;Â?Â&#x2020;ÇŚÂ&#x2013;Â&#x2018;ÇŚÂ&#x2021;Â?Â&#x2020; Â&#x201D;Â&#x2021;Â&#x2019;Â&#x2018;Â&#x201D;Â&#x2013;Â&#x2039;Â?Â&#x2030; Â&#x2019;Â&#x201D;Â&#x2018;Â&#x2026;Â&#x2021;Â&#x2022;Â&#x2022; Â&#x2014;Â?Â&#x2020;Â&#x2021;Â&#x201D; Â&#x2018;Â&#x17D;Â&#x2DC;Â&#x2021;Â?Â&#x2026;Â&#x203A;

Â&#x2122;Â&#x2039;Â&#x17D;Â&#x17D; Â&#x201E;Â&#x2021; Â&#x2018;Â&#x2C6; Â&#x201E;Â&#x2021;Â?Â&#x2021;Ć¤Â&#x2013;ÇĄ but not essential. Previous exposure to MG-Alfa software is desirable. For more information please contact: georgeb@hfg.co.uk REF: GBI0801

Solvency II Actuary

ÂŁ600 - ÂŁ800 / day, 9 months, Southern England

Â? Â&#x2039;Â?Â&#x2013;Â&#x2021;Â&#x201D;Â?Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x192;Â&#x17D; Â&#x17D;Â&#x2039;Â&#x2C6;Â&#x2021; Â&#x2039;Â?Â&#x2022;Â&#x2014;Â&#x201D;Â&#x2021;Â&#x201D; Â&#x192;Â&#x201D;Â&#x2021; Â&#x17D;Â&#x2018;Â&#x2018;Â?Â&#x2039;Â?Â&#x2030; Â&#x2C6;Â&#x2018;Â&#x201D; Â&#x192; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ć¤Â&#x2021;Â&#x2020; Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x203A; Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160; expert knowledge of the Solvency II directive. Reporting into the Â&#x160;Â&#x2039;Â&#x2021;Â&#x2C6; Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x203A;ÇĄ Â&#x2013;Â&#x160;Â&#x2039;Â&#x2022; Â&#x2019;Â&#x2018;Â&#x2022;Â&#x2039;Â&#x2013;Â&#x2039;Â&#x2018;Â? Â&#x2122;Â&#x2039;Â&#x17D;Â&#x17D; Â&#x2018;ĆĄÂ&#x2021;Â&#x201D; Â&#x2026;Â&#x2018;Â?Â&#x2019;Â&#x201D;Â&#x2021;Â&#x160;Â&#x2021;Â?Â&#x2022;Â&#x2039;Â&#x2DC;Â&#x2021; Â&#x2021;Â&#x161;Â&#x2019;Â&#x2018;Â&#x2022;Â&#x2014;Â&#x201D;Â&#x2021; Â&#x192;Â&#x2026;Â&#x201D;Â&#x2018;Â&#x2022;Â&#x2022; Pillars II and III of the framework. As such, the ideal candidate will have excellent knowledge of Solvency II, the reporting process under the framework and a deep understanding of life insurance risks. For more information please contact: georgeb@hfg.co.uk REF: GBI0803

ÂŁ30k - ÂŁ90k basic, UK wide

I am working with a boutique consultancy who are looking for an Actuary Â&#x2013;Â&#x2018; Â&#x152;Â&#x2018;Â&#x2039;Â? Â&#x2013;Â&#x160;Â&#x2021;Â&#x2039;Â&#x201D; Â&#x2018;Â?Â&#x2020;Â&#x2018;Â? Â&#x2018;ĆĽÂ&#x2026;Â&#x2021; Â&#x2039;Â? Â&#x2013;Â&#x160;Â&#x2021; Â&#x2039;Â&#x2C6;Â&#x2021; Â?Â&#x2022;Â&#x2014;Â&#x201D;Â&#x192;Â?Â&#x2026;Â&#x2021; Â&#x2013;Â&#x2021;Â&#x192;Â?Ç¤ Â&#x2018; Â&#x192;Â&#x2019;Â&#x2019;Â&#x17D;Â&#x203A; Â&#x2C6;Â&#x2018;Â&#x201D; this role you must have experience working in an actuarial role, have Â&#x2018;Â&#x2014;Â&#x2013;Â&#x2022;Â&#x2013;Â&#x192;Â?Â&#x2020;Â&#x2039;Â?Â&#x2030; Â&#x192;Â&#x2026;Â&#x192;Â&#x2020;Â&#x2021;Â?Â&#x2039;Â&#x2026;Â&#x2022; Â&#x192;Â?Â&#x2020; Â&#x201E;Â&#x2021; Â&#x192; Â&#x2026;Â&#x2018;Â?Ć¤Â&#x2020;Â&#x2021;Â?Â&#x2013;ÇĄ Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2022;Â&#x2018;Â?Â&#x192;Â&#x201E;Â&#x17D;Â&#x2021; Â&#x2039;Â?Â&#x2020;Â&#x2039;Â&#x2DC;Â&#x2039;Â&#x2020;Â&#x2014;Â&#x192;Â&#x17D; Â&#x2122;Â&#x160;Â&#x2018; is able to liaise with a variety of stakeholders across varying business. For more information please contact: abby@hfg.co.uk REF: AT0804

ÂŁ500 - ÂŁ700 / day, 6 months, North

Reporting Actuary

A composite insurer listed on the FTSE 100 are looking for additional actuarial resource as they restructure internally. The role will involve carrying out Â&#x201E;Â&#x192;Â&#x2026;Â?Ć¤Â&#x17D;Â&#x17D;Â&#x2039;Â?Â&#x2030; Â&#x201D;Â&#x2021;Â&#x2019;Â&#x2018;Â&#x201D;Â&#x2013;Â&#x2039;Â?Â&#x2030; Â&#x2C6;Â&#x2018;Â&#x201D; Â&#x2013;Â&#x160;Â&#x2021; Â&#x192;Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x2039;Â&#x192;Â&#x17D; Â&#x2020;Â&#x2021;Â&#x2019;Â&#x192;Â&#x201D;Â&#x2013;Â?Â&#x2021;Â?Â&#x2013; Â&#x192;Â&#x2022; Â&#x2018;Â&#x17D;Â&#x2DC;Â&#x2021;Â?Â&#x2026;Â&#x203A;

Â&#x160;Â&#x192;Â&#x2022; Â&#x2019;Â&#x201D;Â&#x2018;Â?Â&#x2019;Â&#x2013;Â&#x2021;Â&#x2020; Â&#x192; Â&#x201D;Â&#x2021;Â&#x2022;Â&#x160;Â&#x2014;ĆŤÂ&#x2021; Â&#x2018;Â&#x2C6; Â&#x201D;Â&#x2021;Â&#x2022;Â&#x2018;Â&#x2014;Â&#x201D;Â&#x2026;Â&#x2021;Ç¤ Â&#x160;Â&#x2039;Â&#x2022; Â&#x2039;Â&#x2020;Â&#x2021;Â&#x192;Â&#x17D; Â&#x2026;Â&#x192;Â?Â&#x2020;Â&#x2039;Â&#x2020;Â&#x192;Â&#x2013;Â&#x2021; Â&#x2122;Â&#x2039;Â&#x17D;Â&#x17D; Â&#x201E;Â&#x2021; Â?Â&#x2021;Â&#x192;Â&#x201D;Â&#x17D;Â&#x203A; Â&#x2018;Â&#x201D; Â?Â&#x2021;Â&#x2122;Â&#x17D;Â&#x203A; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ć¤Â&#x2021;Â&#x2020;ÇĄ Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160; Â&#x2021;Â&#x161;Â&#x2026;Â&#x2021;Â&#x17D;Â&#x17D;Â&#x2021;Â?Â&#x2013; Â?Â?Â&#x2018;Â&#x2122;Â&#x17D;Â&#x2021;Â&#x2020;Â&#x2030;Â&#x2021; Â&#x2018;Â&#x2C6; Â&#x2013;Â&#x160;Â&#x2021; Â&#x2021;Â?Â&#x2020;ÇŚÂ&#x2013;Â&#x2018;ÇŚÂ&#x2021;Â?Â&#x2020; Â&#x201D;Â&#x2021;Â&#x2019;Â&#x2018;Â&#x201D;Â&#x2013;Â&#x2039;Â?Â&#x2030; Â&#x2019;Â&#x201D;Â&#x2018;Â&#x2026;Â&#x2021;Â&#x2022;Â&#x2022; Â&#x192;Â?Â&#x2020; associated metrics. Solvency II knowledge is preferred but not necessary. For more information please contact: georgeb@hfg.co.uk REF: GBI0802

Solvency II IMAP Actuary

ÂŁ400 - ÂŁ600 / day, 3 months, London

A niche life insurance entity are looking for additional resource in their actuarial department, with a particular focus on IMAP work. The ideal candidate will have very strong Solvency II experience, with previous exposure to IMAP and ORSA work under the directive. Soft skills such as liaising with senior Â&#x2022;Â&#x2013;Â&#x192;Â?Â&#x2021;Â&#x160;Â&#x2018;Â&#x17D;Â&#x2020;Â&#x2021;Â&#x201D;Â&#x2022;ÇĄ Â&#x2026;Â&#x2018;Â?Â?Â&#x2014;Â?Â&#x2039;Â&#x2026;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â? Â&#x192;Â?Â&#x2020; Â&#x2021;ĆĄÂ&#x2021;Â&#x2026;Â&#x2013;Â&#x2039;Â&#x2DC;Â&#x2021; Â&#x201D;Â&#x2021;Â&#x2019;Â&#x2018;Â&#x201D;Â&#x2013; Â&#x2122;Â&#x201D;Â&#x2039;Â&#x2013;Â&#x2039;Â?Â&#x2030; Â&#x192;Â&#x201D;Â&#x2021; Â&#x192;Â&#x17D;Â&#x17D; Â&#x2018;Â&#x2C6; Â&#x201E;Â&#x2021;Â?Â&#x2021;Ć¤Â&#x2013;Ç¤ For more information please contact: georgeb@hfg.co.uk REF: GBI0804

Risk roles Risk Analyst

ÂŁ25k - ÂŁ35k London

Credit Risk Manager

ÂŁ35k - ÂŁ65k / day, London

A well known Underwriting agency are looking for a Risk Analyst to join their small team. The ideal candidate will currently be working within a general Â&#x2039;Â?Â&#x2022;Â&#x2014;Â&#x201D;Â&#x2021;Â&#x201D; Â&#x192;Â?Â&#x2020; Â&#x201E;Â&#x2021; Â&#x17D;Â&#x2018;Â&#x2018;Â?Â&#x2039;Â?Â&#x2030; Â&#x2013;Â&#x2018; Â&#x2030;Â&#x192;Â&#x2039;Â? Â&#x201D;Â&#x2039;Â&#x2022;Â? Â&#x2021;Â&#x161;Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2039;Â&#x2021;Â?Â&#x2026;Â&#x2021;Ç¤ Â&#x2013; Â&#x2122;Â&#x2018;Â&#x2014;Â&#x17D;Â&#x2020; Â&#x201E;Â&#x2021; Â&#x201E;Â&#x2021;Â?Â&#x2021;Ć¤Â&#x2026;Â&#x2039;Â&#x192;Â&#x17D; Â&#x2013;Â&#x2018; come from a general insurance background and have project management experience. For more information please contact: erin@hfg.co.uk REF: EO0801

A large general insurer are looking for a Credit Risk Manager with a background in ALM and counterparty credit risk to join their team. The ideal candidate can come from a banking or insurance background but must have previously worked on corporate bonds and understand capital Â?Â&#x2018;Â&#x2020;Â&#x2021;Â&#x17D;Â&#x17D;Â&#x2039;Â?Â&#x2030;Ç¤ Â&#x160;Â&#x2021; Â&#x2026;Â&#x160;Â&#x2018;Â&#x2022;Â&#x2021;Â? Â&#x2026;Â&#x192;Â?Â&#x2020;Â&#x2039;Â&#x2020;Â&#x192;Â&#x2013;Â&#x2021; Â?Â&#x192;Â&#x203A; Â&#x201E;Â&#x2021; Â&#x192;Â? Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x203A; Â&#x2018;Â&#x201D; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;Ć¤Â&#x2021;Â&#x2020; with strong communication skills and a broad understanding of risk. For more information please contact: erin@hfg.co.uk REF: EO0802

Market Risk Manager

Validation Risk Analyst

ÂŁ40k - ÂŁ60k basic, London

A role has been created at a leading composite insurer within their Market Risk team. This is an excellent opportunity for someone with a background in insurance and an understanding of assets and risk metrics to take a step up in their career into a role where they will be directly supporting the CRO. The chosen candidate may be an Actuary or come from a liquidity risk background. For more information please contact: erin@hfg.co.uk REF: EO0803

ÂŁ30k - ÂŁ40k basic, London

An opportunity for an Actuary to pursue a career in risk. Working at one of the leading London market insurers you will play a crucial role in the coordination and production of Model Validation across the group as well as engaging in all risk management responsibilities. The chosen candidate may come from a capital modelling or validation background and be looking to gain exposure to risk. For more information please contact: erin@hfg.co.uk REF: EO0804

September 2015 â&#x20AC;˘ THE ACTUARY 43 www.theactuary.com

+44 (0) 207 337 8800 ACT Rec Sept15.indd 43

www.hfg.co.uk 24/08/2015 16:43

Appointments

Senior Pricing Actuary – Property London £120k - £130k A leading Lloyd's syndicate are currently seeking a Qualiﬁed Actuary to head up their property pricing function. The role will report directly to the Chief Actuary and will act as the subject matter expert for property from an actuarial perspective.

London Zurich

The role will focus on account pricing, portfolio management and analysis. The role will work extremely closely with the underwriters and senior managers, whilst also managing a small team.

Hong Kong

Singapore

You will be fully qualiﬁed and have a wealth of London/Lloyd's market experience as well as a property lines background.

Contact: James Rydon, Senior Consultant james.rydon@eamesconsulting.com | +44 (0)20 7092 3239

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Asia roles Commercial Director

͙͆Ǥ͝ Ǧ ͚͆ ή Ƥ Hong Kong

Ƥ Ǥ ǡ ǡ Ǥ ǡ Ƥ Ǥ ǣ ̻ Ǥ Ǥ ǣ ͙͘͘͠

Pricing Manager

HKD $600k - $800k + bonus Hong Kong

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Actuarial Opportunities (Taiwan)

$ depending on experience Taiwan

Financial Reinsurance Actuary

͙͆͘͞ǡ͘͘͘ Ǧ ͚͆͘͘ǡ͘͘͘ ή Ƥ ǡ Singapore

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Reinsurance Actuary

HKD $1.1- $1.3m + bonus, Hong Kong

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Senior Manager P&C Actuary

$ depending on experience Shanghai

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Ǧ Ƥ Ƥ Ƭ Ǥ ǡ Ǥ Ǧ Ƭ Ǥ Ǥ ǣ ̻ Ǥ Ǥ ǣ ͚͘͘͠

EA Licence Number: 14C7034

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

THE ACTUARY • September 2015 www.theactuary.com

ACT Rec Sept15.indd 44

24/08/2015 16:43

www.theactuaryjobs.com

Take the next step... …with a career at Towers Watson, Reigate

As a result of recent business growth, we are looking to recruit a small number of talented qualified and part-qualified actuaries to work in our Reigate pensions team. Employing over 200 associates, the team provides actuarial and benefits consulting services to many of the UK’s largest and most sophisticated pension schemes. With professional development a cornerstone of our business, the roles offer unique opportunities to work on diverse and innovative projects in the areas of risk management, pension change and beyond. Only 45 minutes from London, Reigate is an attractive location with excellent travel connections, and offers a great range of social and lifestyle opportunities. The open office environment is vibrant, professional discussion and challenge is actively encouraged, and continuing to provide a first class service to our clients is a business priority. We continue to invest in, and are committed to, the long term future of the business. To find out more, please get in touch with Charlotte Barton for a confidential, no obligation discussion on 01737 284919 or email charlotte.barton@towerswatson.com

towerswatson.com

Beneﬁts | Risk and Financial Services | Talent and Rewards Copyright © 2015 Towers Watson. All rights reserved. TW-EU-2015-44908. August 2015. Towers Watson is represented in the UK by Towers Watson Limited.

/company/towerswatson

@towerswatsonjob

/towerswatsoncareersemea

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AT YOUR

FINGERTIPS

Read the latest features and opinion Browse theactuaryjobs.com and theactuaryjobsasia.com, the oﬃcial jobsites of the UK actuarial profession

September 2015 • THE ACTUARY 45 www.theactuary.com

ACT Rec Sept15.indd 45

24/08/2015 16:43

Appointments

es uth Beach Bournemo

Shopping, c afe and restau s, bars rants

Swap the city for the sea

rk National Pa New Forest

A great Actuarial career can include glorious coastline, stunning scenery and a great café culture just a stone’s throw away from your head ofﬁce. Sound tempting? Find out more and apply at www.jobs.lv.com/actuarial or get in touch with Chelsea in our Resourcing team chelsea.bain@lv.com

PENSIONS ACTUARIES (PQ AND QUALIFIED) London up to £60k + bonus and beneﬁts Responsibilities include: • • • • • • • • • • • • •

Acting as an actuarial and consulting assistant for a portfolio of clients Handling the preparation of valuations and cost estimates Undertaking and supervising accounting disclosures (FRS17, IAS19 and USGAAP) Coordinating data collection including editing and testing data received from clients Undertaking and checking all aspects of actuarial work associated with pension schemes Preparing letters, reports and other client materials Checking day to day individual calculations as requested Participating in internal projects, handling special projects or assignments as needed Assisting scheme consultants with the consultancy aspects of pension schemes Establishing strong working relationships with clients Preparing for and attending client meetings Progress towards obtaining a Scheme Actuary certiﬁcate and holding responsibility for a portfolio of clients and acting as a client manager for a number of these Staying abreast with applicable regulatory bodies

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

PLAN YOUR NEXT MOVE

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

Go to www.theactuaryjobs.com

THE ACTUARY • September 2015 www.theactuary.com

ACT Rec Sept15.indd 46

24/08/2015 16:43

www.theactuaryjobs.com Ground Floor Pellipar House, 9 Cloak Lane, London EC4R 2RU | 0207 332 5870 | actuarial@mansionhouse.co.uk www.mansionhouse.co.uk

P E NSIONS A N D I N V ES T MEN T S SENIOR PENSIONS ACTUARY EDINBURGH £upper quartile + signiƓcant bonus + long term incentives

PENSION & INVESTMENTS

Ben Whalley whalleyb@mansionhouse.co.uk

Experienced qualiƂed actuary sought for role with expanding well established multi-disciplinary team. The team is involved in all areas of advice relating to DB and DC arrangements, from beneƂt design, to insurance solutions, scheme funding and Ƃnancing, wider risk issues, ALM, liability management exercises, and a range of investment areas. The team also gives UK and international advice, is active in the M&A sector, as well as advising on all aspects of investment related transactions. Ref: bw23746

NEARLY/NEWLY QUALIFIED PENSIONS ACTUARY LONDON £highly competitive salary + market leading bonus + beneƓts

Niche consultancy seeking a recently qualiƂed Pensions actuary for wide ranging role covering key areas relating to Funding, BeneƂts, Covenant Advisory, and Investment issues for an impressive corporate client base. The successful candidate will be able to work in a fast paced and entrepreneurial environment, keen to work on bespoke and varied projects, in a team where individual input and results are encouraged and rewarded. Key areas of work include; International strategy projects such as beneƂt change and scheme design, Pensions aspect of M&A involving both UK and international pension arrangements. De-risking work including buy-outs buy-ins and longevity swaps. Ref: bw23184 NON-LIFE

Samantha Yee yees@mansionhouse.co.uk

A market leading Insurer is looking for an outstanding part/ nearly qualiƂed Actuary to join their growing team. Great opportunity to be part of a dynamic organisation managing insurance solutions. The main focus of this opportunity will be personal lines pricing, with the option to get involved in Reserving and also Commercial lines pricing further down the line. Communication is key as there will be regular contact with senior stakeholders and broad business exposure. Ref: sy23799 Dior Musombo musombod@mansionhouse.co.uk

Emmanuel Frossard frossarde@mansiohouse.co.uk

Julia Dunkelberg dunkelbergj@mansionhouse.co.uk

ACT Rec Sept15.indd 47

My client, specialists in managing and providing bespoke advice to both DC and DB pension schemes, are now seeking a qualiƂed Actuary or other Senior Pensions Professional, to enhance development within their trusteeship business. As a senior member of the team, you will be expected to contribute towards the development of an already successful business including specialist technical development, new business and strategy development. The successful candidate is likely to hail from an Actuarial/Pensions/Investment consulting Ƃrm. Ref: bw23638

NEARLY/NEWLY QUALIFIED CAPITAL ACTUARY LONDON £80,000 - 90,000

Leading Lloyd’s syndicate with a strong Capital team is looking for a Capital Actuary with excellent technical and communication skills. Involvement across model paramatisation, documentation, validation and reporting. ReMetrica experience preferable, strong VBA skills necessary. Working closely with key stakeholders both internal and external, Ƃrst rate communication skills are of the utmost importance for this role. Leadership responsibilities on group projects. Ref: sy23188

SENIOR ACTUARIAL AND FINANCIAL RISK CONSULTANT BRUSSELS € Excellent remuneration package

PENSION ACTUARY BRUSSELS € 50-65,000

NAT CAT ANALYST PARIS, FRANCE €45-55,000 + package + beneƓts

SENIOR LIFE ACTUARY CONSULTANT PARIS, FRANCE €55-85,000 + package + beneƓts

SENIOR LIFE ACTUARY COLOGNE, GERMANY c. €100,000 + bens + bonus

SENIOR VALIDATION SPECIALIST – NON-LIFE COLOGNE, GERMANY c. €90,000 + bens + bonus

Reinsurance global leader are seeking a Nat Cat Analyst to support the Head of Catastrophe Analytics with the development and harmonization of multidimensional Global Cat Portfolio metrics and analytics across the organisation. The working environment is multicultural (various location around the world) and multidisciplinary (working with scientists, actuaries, underwriters). The role will involve travelling, and requires regular communication across the organization.

GERMANY

ACTUARY – TRUSTEE EXPERIENCE LONDON Six Ɠgure basic salary

E UROP E AN O PPO RT U N I T I ES

QualiƂed Life/NL Actuaries (IABE or similar) with signiƂcant consulting and managerial experience required for Brussels based Professional Services Ƃrm. You will have a solid track record within Life or P&C and be well connected in your market, leveraging off your network to help grow and maintain the business. With a minimum of 5 years of experience you will be expected to take a leadership role generating, executing and overseeing work as well as mentoring more junior members of the team. Dutch is an advantage. Ref: dm23760 FRANCE

Multi-disciplinary corporate Pensions team is seeking a Ƃrst rate QualiƂed actuary to join the group. All areas of corporate work are covered from M&A, to de-risking strategies, scheme funding, and a host of innovative solutions. You will get the opportunity to hone your commercial skills alongside some of the very best in the market. On offer is an overall beneƂts package second to none including a very competitive study package. Career progression is guaranteed for an individual able to add to the team. The desire to work outside of the boundaries of the typical Pensions actuarial sphere is a pre-requisite. Ref: bw22284

NON - LIFE SENIOR ACTUARIAL ANALYST LONDON/ KENT £45,000 - £65,000 + bonus + bens

FRANCE/BELGIUM/LUXEMBOURG

QUALIFIED PENSIONS ACTUARY LONDON £60-90,000 + package

A well-known German Insurer is looking for a Senior Life Actuary in Cologne. As a qualiƂed Actuary with at least 4 years PQE in Life Insurance, a Master degree in mathematics or equivalent and ƃuent in German and English, your position includes EV, SII calculations as well as proƂtability analysis and the responsibility for risk reporting. You will combine analytical skills with the ability to act independently as well as working in a team. Ref: JD 23798

Looking for a Junior Actuary with 2-3 years experience, preferably within the Pensions sector. Interesting opportunity with wide ranging responsibilities and broad exposure across the whole Belgian Pensions sector, including monitoring regulatory initiatives. University degree in Actuarial Sciences or likewise required. Good knowledge of the Belgian Pensions system second Pillar. Fluent in Dutch, French and English, you will have strong inter-personal skills and be an active listener and good communicator. Ref: dm23714

Leading professional services Ƃrm are seeking a Senior Life actuary. There will be involvement in various missions (EV, ALM, SII), participation in business development activities as well as technical supervision of more junior consultants. To be successful, you will hold a relevant higher education degree, have 3 to 6 years of Life experience, a strong analytical mind, like teamwork and speak ƃuent English. Modeling experience with Moses or Prophet an added advantage.

An international P&C Insurer is looking for a Validation Specialist with 5 years PQE in non-life risk modelling. Playing a senior role in the Risk Management Unit, responsibilities will include analysis and validation activities for the Internal Model in the scope of SII. Also, review of all risk capital requirements (non-Cat/Cat). A Master degree in mathematicsSeptember or equivalent, DAV 2015 •(completed) THE ACTUARY and good German and English language skillswww.theactuary.com required. You must be highly motivated, enjoy working in a team and on your own as well as being good communicator. Ref: JD 23648

24/08/2015 16:46

Appointments N ON - LI FE RI S K

N O N - L I F E L IFE R IS K P E N S IO NS I NVESTM ENT HEALTH EXCLUSIVE - REINSURANCE START-UP

LLOYD’S SYNDICATE CAPITAL ANALYST

MOVE TO WIDER FIELDS

£ very attractive package

£ excellent + bonus + benefits

NON-LIFE LOCATION UPON APPLICATION

STAR2702

NON-LIFE LONDON

STAR2696

NON-LIFE LIFE LONDON

STAR2621

Multiple roles for exceptional catastrophe modellers or pricing actuaries with strong modelling experience wishing to join a start-up reinsurer. Please contact us for more details of these career-defining opportunities.

Lloyd’s Syndicate has an exciting opportunity for a part-qualified non-life actuary to develop and enhance in-house capital models using stochastic and DFA modelling techniques.

This is a fantastic opportunity for a qualified actuary to take up a challenging role with a leading organisation, encompassing both traditional areas and wider fields.

EXCLUSIVE - RESERVING ACTUARY

PRICING INNOVATION

FINANCIAL RISK - NON-LIFE

£ dependent upon experience

£ competitive + bonus + benefits

£ dependent upon experience

NON-LIFE LOCATION UPON APPLICATION

STAR2618

NON-LIFE HEALTH SOUTH COAST

STAR2615

NON-LIFE NORTH

STAR2617

We are currently working on an exclusive opportunity for a qualified non-life actuary to take up a key role with a leading insurer. The ideal candidate will have experience of reserving for motor business.

Apply your technical pricing expertise in this analytical role, providing insight and identifying opportunities for the business, whilst working closely with colleagues across multiple teams.

Leading insurance group seeks a qualified, non-life, risk actuary with a proven ability to deliver change, influence senior management and to analyse and review risk portfolios.

TECHNICAL ACTUARY

MULTIPLE GI PRICING OPPORTUNITIES

NON-LIFE PRICING - MIDLANDS

£ competitive with excellent bonus + benefits

up to £70k + bonus + benefits

£ excellent + bonus + benefits

NON-LIFE GREATER LONDON/SOUTH EAST

NON-LIFE SOUTH EAST

STAR2671

STAR2510

NON-LIFE MIDLANDS

STAR2623

Our client is looking to hire a non-life actuary with in-depth knowledge of capital and reserving techniques. This is an ideal role for a technical actuary looking to influence development work within the actuarial function.

Our client, a leading UK insurer, is seeking to grow its commercial lines pricing teams. Opportunities exist across property and liability teams from Analyst to Manager level.

This is an excellent chance for a part-qualified or qualified actuary to take up a challenging role, with management opportunities, within a leading Commercial Lines Pricing team.

MOTOR INTO THE FUTURE

CAPITAL ANALYST - NON-LIFE

NON-LIFE CONSULTING OPPORTUNITIES

£ dependent upon experience

up to £45k + bonus + benefits

£ excellent + bonus + benefits

NON-LIFE SOUTH WEST

STAR2509

NON-LIFE SOUTH WEST

STAR2556

NON-LIFE LONDON

STAR2601

Our client is looking to expand its non-life team with pricing actuaries and analysts. Knowledge of GLM modelling and pricing analysis is a must. These roles will offer you a broad variety of project-style work.

Our client seeks a part-qualified actuary to join its capital team. GI experience is essential, but not necessarily within capital. You will provide support in the development, testing and use of the Internal Model.

Take this excellent chance to join the non-life team of a leading consultancy firm. Successful candidates will be part-qualified or qualified non-life actuaries with excellent communication and relationship-management skills.

CAPITAL MODELLING ACTUARY

SENIOR MANAGER - CAPITAL OPTIMISATION

CAPITAL IN THE CAPITAL

£ excellent + bonus + benefits

£ excellent + benefits

£ excellent + bonus + benefits

NON-LIFE LONDON

STAR2688

NON-LIFE LONDON

STAR2460

NON-LIFE LONDON

STAR2681

Global financial services firm seeks a qualified non-life actuary with strong experience in capital management to work closely with M&A specialists on a wide range of strategic projects.

Market-leading insurer has a great opportunity for a qualified GI actuary to oversee the capital team’s development and embedding of risk-adjusted economic models in the context of the implementation of SII.

HEDGE FUND ACTUARY

LEADING EDGE CAPITAL

CAPITAL MODELLING LEAD

£ up to director level

£ excellent package

£ highly competitive package

Market-leading insurer has a fantastic opportunity for a part-qualified or qualified non-life actuary to join its Internal Capital Model team, supporting the day-to-day running of the model.

STARVACANCIES NON-LIFE LONDON

STAR2539

Our client is seeking a catastrophe pricing actuary to take up a key role in the development of its ILS offering. You will join a deal team focusing on risk analysis and model development.

Antony Buxton FIA THE ACTUARY • September 2015 MANAGING DIRECTOR www.theactuary.com +44 7766 414 560 antony.buxton@staractuarial.com

ACT Rec Sept15.indd 48

NON-LIFE LONDON

STAR2701

Leading specialty financial services firm is seeking a part-qualified or qualified GI actuary with good knowledge of Remetrica to develop its internal model to ensure the continuing successful operation of the capital function.

NON-LIFE SOUTH EAST

STAR2476

Our client has an exciting opportunity for a qualified non-life actuary with capital experience to lead the development of its general insurance modelling capability.

Louis Manson

Joanne O’Connor

Irene Paterson FFA

Lance Randles MBA

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

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

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

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

24/08/2015 16:43

LI FE www.theactuaryjobs.com

RI SK PENSI ONS I NVESTM ENT "$56"3*"- 1045 3&$36*5&3 0' 5)& :&"3 t t INVESTMENT RISK ACTUARY

£ competitive salary + excellent benefits

£ very attractive package

LIFE PENSIONS INVESTMENT LONDON

STAR2695

HEAD OF ECONOMIC CAPITAL - LIFE £ to attract the best STAR2660

LIFE LONDON

STAR2658

We are working closely with a unique organisation looking to hire a technically astute life actuary with deep knowledge of risk management, illiquid assets, and derivatives.

Our client seeks innovative investment actuary with strong teamworking skills to play a key role in its market risk capital calibrations and aggregations. Please contact us for more information regarding this fantastic opportunity.

Leading insurer seeks qualified life actuary with strong interpersonal and influencing skills to lead the design and development of its economic capital model. Please contact us for more information on this exciting role.

HEAD OF PRICING - LIFE

PRICING ACTUARY - LIFE

RESEARCH ACTUARY - LIFE

£ excellent package

£ excellent + bonus + benefits

LIFE SOUTH EAST

STAR2670

LIFE SOUTH COAST

STAR2692

LIFE LONDON

STAR2685

Our client has a unique opportunity for a qualified life actuary with knowledge of the UK Group Risk Market to play a lead role in setting the group risk product terms and pricing strategy.

Seeking a qualified life actuary to be responsible for pricing and product maintenance of all non-protection products, product testing and product migration work, as well as supporting product developments.

Major global insurance Group seeks a qualified life actuary to lead the production of experience analysis for mortality, morbidity and persistency, ensuring that scaleable processes are developed for ongoing analysis.

REINSURANCE ACTUARY

PRICING ANALYST - LIFE

RISK AND CAPITAL STRATEGY

£ excellent + bonus + benefits

LIFE LONDON

STAR2607

LIFE LONDON

STAR2684

LIFE LONDON

STAR2682

Award-winning life insurer seeks a qualified life actuary to manage its reinsurance operation. This is a great chance to utilise your exceptional relationship management and technical skills.

Major international insurance group seeks a part-qualified life actuary to support the pricing function, providing input into the development of market-leading protection products.

Global management consultancy is seeking exceptional insurance actuaries to join in its success. The ideal candidate will have strong influencing and consulting skills, together with risk and capital experience.

LIFE PRICING ANALYST

LIFE ANALYTICS

PENSIONS INNOVATION

£ excellent package

£ maximise your career

£ excellent package

LIFE LONDON

STAR2704

LIFE LONDON

STAR2703

PENSIONS NORTH WEST

STAR2654

Leading financial services firm seeks a part-qualified life actuary to provide pricing support on product developments and enhancements to existing products.

Leading client seeks qualified life actuary with analytics experience to take their career to the next level. The successful candidate will create innovative solutions to deliver significant value to the business.

Our client is seeking a part-qualified or qualified pensions actuary to contribute to the on-going innovation and development of the firm, growing the existing business and identifying new opportunities.

COMMERCIAL DEVELOPMENT - LIFE

BULK ANNUITIES AND LONGEVITY

PRICING ACTUARY

£ excellent + bonus + benefits

£ excellent package

£ excellent + bonus + benefits

LIFE SOUTH COAST

STAR2611

Our client is seeking to hire a qualified life actuary to join its commercial development team. Strong technical skills and longevity experience are essential, with management experience and the ability to think creatively.

LIFE SOUTH EAST

STAR2656

Leading insurer seeks qualified actuary to support international pension scheme de-risking activity and perform calculations relating to inception pricing, reinsurance, longevity and collateral arrangements.

FOR MORE VACANCIES VISIT

LIFE PENSIONS LONDON

STAR2606

Our client is seeking a qualified actuary with life or pensions experience to join its new business team as a pricing actuary. The successful candidate will be a self-starter with strong people management skills.

www.staractuarial.com

LEAD CORPORATE PENSIONS ACTUARY

PENSIONS SUPERSTARS

INSURER SEEKS PENSIONS ACTUARY

£ excellent + bonus + benefits

up to £80k + bonus + benefits

£ dependent upon experience

PENSIONS NORTH

STAR2706

Leading consultany seeks a qualified pensions actuary to lead and grow its corporate practice in the North. The successful candidate will have excellent business development and client management skills.

PENSIONS LONDON

STAR2650

Seeking qualified pensions actuaries to advise companies on the management of their pensions costs and risks. An excellent opportunity to develop your career within a genuine market-leader.

LIFE PENSIONS LONDON

STAR2608

Leading insurer seeks a qualified pensions actuary to contribute to the development of its defined benefit proposition. You will lead the delivery of quotations and support the enhancement of the pricing approach.

Peter Baker

Paul Cook

Jo Frankham

Jan Sparks FIA

Clare Roberts

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

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

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

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

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

ACT Rec Sept15.indd 49

Star Actuarial Futures Ltd is an employment agency and employment business

ASSET AND RISK SPECIALIST

Carolina Emmanuel September 2015 • THE ACTUARY 49 SENIOR CONSULTANT www.theactuary.com +44 7495 564 958 carolina.emmanuel@staractuarial.com

24/08/2015 16:43

Appointments GENERAL INSURANCE - UK Capital / ERM Modelling Paul Francis

London £120,000 + Bonus + Beneﬁts

EXCLUSIVE - RI Pricing Expert London Rachel Kelly £Excellent + Bonus + Beneﬁts

I currently have a number of opportunities for capital orientated actuaries for (re)insurance ﬁrms. Any software would be considered and would suit technical modellers and/or candidates with a preference for business-facing and risk identiﬁcation/mitigation.

My client is looking to their next phase of European growth. Facilitated by a recent surge of investment they will be doing things differently from the standard, whilst leveraging unique industry relationships. This would suit someone with broker or company bias.

Pricing Analyst - London Market London Robert Gormley £65,000 + Bonus + Beneﬁts

G.I. Motor Pricing Manager Sarah Robins

Mid-sized London market insurer currently expanding pricing team seeks technical pricing analyst. A new role in a new team. You will be highly motivated with exceptional communication skills. Experience of LM pricing and strong VBA and/or SQL preferred.

Leading personal lines insurer seeks a pricing expert to lead their motor renewals pricing team. You will be required to manage and develop a team of pricing analysts. You will have advanced knowledge of SAS, Emblem and Radar. Previous management experience is desirable.

GI Actuarial Analyst South West Sarah Robins £35,000 – £50,000 + Bonus + Beneﬁts

Capital Analyst Ross Anderson

My client is seeking a part qualiﬁed actuary to strengthen their capital team. You must have a proven track record of success in an actuarial analyst role. Previous capital experience would be advantageous but is not essential.

Exclusive opportunity for a Capital Analyst to join a market leading London market insurer. Capital experience would be preferred and Igloo exposure advantageous. My client is keen to recruit a driven individual looking to develop their technical skills with aspirations to mentor junior members of the team. Part qualiﬁed to nearly qualiﬁed.

Surrey £70,000 + Bonus + Beneﬁts

London £60,000 + Bonus + Beneﬁts

CONTRACTS - GENERAL INSURANCE - UK Capital Actuary Elise Ogden

UK £700 - £1,000/day

A number of my clients are seeking capital actuaries for various projects. I am looking for contractors with experience of IGLOO and preferably experience working towards IMAP. There are roles throughout the UK so please call to discuss.

Pricing Actuary – Personal Lines Elise Ogden

UK £500 - £700/day

I am working on several pricing vacancies for personal lines clients. If you have experience of price optimisation, data management, GLM and commonly used pricing software. Two of the contracts focus on pricing renewal. Various UK locations.

LIFE INSURANCE - UK Head of Economic Capital Clare Nash

London £140,000 + Package

Head of Investments Clare Nash

London £120,0000 + Package

Supreme opportunity to join a growing business. My client seeks to appoint a senior individual to head up their team. This appointment provides a good blend of technical and strategic work and gives you full access to the board. Due to the nature of this role, I will be able to give further details upon request.

I am currently recruiting for a senior actuary with a wealth of experience in the investment arena. The ideal applicant will have substantial PQE and have detailed knowledge of risk management related to investments and derivatives. A unique position which will provide the successful candidate with plentiful career development.

Capital Optimisation Natalie Lightfoot

London - City £80,000 - £100,000 + Package

Projects Actuary – Health London Richard Howard £70,000 - £90,000 + Bonus + Beneﬁts

My client, a prestigious life insurer, is looking for a capital structuring actuary to join their team in the city. This role will support the business by leading the execution of capital analysis and optimisation of structural solutions.

We have been mandated to recruit a senior projects actuary for a leading provider of health insurance. The role will include a variety of activities across capital management, risk, M&A and Solvency II. They are looking for a qualiﬁed life actuary who is interested in a move into the health market.

ALM Specialist Hugo Chambers

London Up to £80,000 + Package

Surrey Part Qualiﬁed – Longevity Risk Actuary £35,000 + £50,000 + Study Package Natalie Lightfoot

An excellent opportunity to join an award winning life insurance consultancy in Central London. My client is seeking a specialist ALM Life Actuary (either nearly or newly qualiﬁed), to join as a senior consultant due to an increased demand for advisory work in this area. You will have excellent communication skills and strong technical ability. ALM experience is essential.

This is an excellent opportunity for a part qualiﬁed actuary. This role will be working closely with different stakeholders throughout the business and providing mortality assumptions for bulk annuity quotations both in the UK and internationally.

CONTRACTS - LIFE INSURANCE - UK 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 actuaries with a variety of skills. Please THE ACTUARY • September 2015 contact me for details on the project. www.theactuary.com

ACT Rec Sept15.indd 50

Reporting Manager Ani Pannell

London £600 - £700/day

My client, a well-regarded insurer, presently have a number of openings at assistant manager level. Nearly/newly qualiﬁed actuaries with extensive reporting exposure under a variety of metrics, ideally IFRS and SII reporting, should get in touch.

24/08/2015 16:43

General Insurance – UK Paul Francis 0207 649 9469 www.theactuaryjobs.com Sarah Robins 0207 310 8552

NYC OFFICE OPENING SEPTEMBER 2015 We are expanding our global presence further with the addition of our New York City office. Following the huge success seen in the UK, Europe and more recently Asia Pacific, the New York office is the latest addition to our global footprint. Having spent the last six months mapping the market, we now have a presence in Manhattan and will be focusing on Actuarial (across Life and P&C), Underwriting and Business & Technical Transformation. Our specialist consultants have already established strong relationships with the market leading insurers, reinsurers, brokers and consultancies as well as made multiple placements at various levels. Should the USA be of interest, contact us now. See some of our current opportunities below:

Chief Pricing Actuary Chris Lee

New York City $200,000 +

We are working with a market leading reinsurer who are looking for a senior actuary to head up their pricing function. This role will be based in NYC and will report in to the global head. Ideally, candidates will have experience in managing others as well as strong technical skills. Given the seniority of the position, you will also be required to liaise with both clients and internal stakeholders, so interpersonal skills are vital. Amazing opportunity with a global brand.

Assistant Vice President - ERM Vinny Hughes

Boston $110,000 – $180,000

We are working with a leading life insurer, based in Boston. Due to a continued level of growth and product development, my client is looking for an FSA with at least seven years’ experience, including two within ERM. This role will support the continued development, production, and reporting of economic value and economic capital for use in ERM and report directly to the vice president.

Senior Reserving Actuary Anna Davies

Connecticut $100,000 - $120,000

Our client is a U.S. insurer, with a particularly strong name in the market. Due to recent growth, they require a Senior Reserving Actuary to join their team in Connecticut. This role will be technically focused but will also work closely with other areas of the business and report in to senior management on a regular basis. This is a very exciting opportunity to get broad exposure, unparalleled training and solid study support.

EUROPE Head of Pricing Commercial Line Agathe Ibazizen

Paris €80,000 – €100,000 + Attractive Package

An international insurer are looking for a Head of Commercial Line to support the company’s 2030 vision of technical excellence. You will be expected to steer technical excellence, pricing fundamentals and models as well as innovating and supporting big data initiatives.

Senior Actuary GI Emina Biscevic

Dusseldorf €75,000

Multi-line market leader is currently looking to hire a Senior Actuary. You will deﬁne the pricing structure and tools, and contribute to the underwriting and risk assessment rules as well as ensure data accuracy for NAT CAT, reinsurance, and technical reserves.

Chief Actuary – Employee Beneﬁts Robrecht Geraerts

Brussels €Competitive Salary

Our client is one of the leading insurance organisations in the international employee beneﬁts management ﬁeld. They are currently recruiting a Chief Actuary. You will manage a team of three and will be able to have a strategic position within the organisation.

Hong Kong Up to HKD3 million

As a Senior Director, you will spearhead a newly developed team covering stakeholder management, risk and strategy for a leading multinational insurer. Given that this is a highly commercial role, you must have strong interpersonal skills.

AVP, Product Optimization, Asia Hamza Mush

Hong Kong Up to HKD2 million

You will join this company’s new senior regional team to drive product optimisation across 11 key Asian markets advising the business on bespoke capital-light and highmargin product initiatives. Reporting directly into the Asia CMO you must possess high energy, a creative mindset and strong inﬂuencing skills.

Regional Actuary Toby Weston

Hong Kong Up to HKD1.2 million + Bonus

My client is a global P&C insurer who are recruiting a qualiﬁed actuary for their regional ofﬁce in Hong Kong. This individual will support their entities in Asia on ERM, M&A, capital, reserving, and pricing. Exceptional communication skills and Asian languages required. ACT Rec Sept15.indd 51

0207 310 8579

Ross Anderson

0207 649 9357

Robert Gormley

0207 310 8546

Contracts - G.I. - UK Elise Ogden

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

0207 310 8572

Dermott Bradley

+353 144 75159

Asia 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

Wynlim Wong

+852 5804 9090

France Emérique Opou

+33 1 76 77 46 30

Agathe Ibazizen

+33 1 76 77 46 31

Audrey Arrighi

+33 1 76 77 46 02

Ireland Patrick McMahon

+353 1 437 0625

Jack Lynch

+353 1 695 0001

Benelux Robrecht Geraerts

+32 24 01 25 03

Germany Emina Biscevic

+49 89 3803 8965

Natalie Bogner

+49 89 2109 3935

Italy Alessio Montaruli

+39 02 3600 6810

USA

ASIA Senior Director, Strategy Philip Chau

Rachel Kelly

Chris Lee

(+1) 646 833 2681

Stewart Cherry

(+1) 646 833 2678

Anna Davies

(+1) 646 833 2675

Vinny Hughes

(+1) 646 833 2677

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

General Contact Details:

actuary@ojassociates.com

www.ojassociates.com September 2015 • THE ACTUARY 51 www.theactuary.com

@OJAssociates

oliver-james-associates 24/08/2015 16:43

Appointments www.the-arc.co.uk

The Actuarial Recruitment Company

A fresh approach

Senior Pricing Actuary London

General Insurance To £95K

Chief Actuary South East

General Insurance £175K plus benefits

A qualified actuary with London Market pricing experience is required

As the Chief Actuary you would have specific responsibility for the

by this large global insurer. The role is working as part of a dedicated

management, leadership and development of the actuarial function and

pricing team covering all London Market lines of business. The specific role will have ownership in London for a specific class of business but

team. You would also have ultimate ownership of reserving and capital modelling for the business and provide broad support and guidance to the senior management team. It is likely that you will have at least 10 years

would likely be involved in other classes. Strong communication, IT

pqe and already have experience of working at a senior level.

and technical skills are a must for this position. Ref: ARC26294

Ref: ARC 26296

Capital / Reserving Actuary General Insurance London circa £90K base plus bonus

Actuarial Trainee Scotland

This well positioned and growing Insurance Group specialising in

This specialist insurance company is seeking an actuarial analyst to

the acquisition/management of insurance/reinsurance entities and

support the Head of Actuarial in all aspects of actuarial work. This

portfolios is looking for a Nearly/Newly qualified actuary to manage

will include pricing, reserving and capital modelling. It is likely the

regulatory submissions and reserving for various entities across

successful candidate will have some work experience and have

multiple jurisdictions under its ownership. The role is London based

several CT exam passes. Applications from candidates seeking to

and reports directly into the Group Chief Actuary who is also London

move from life assurance or pensions into general insurance are

based. Ref: ARC 26293

encouraged. Ref: ARC 26295

Move into General Insurance Circa £35K

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

THE ACTUARY • September 2015 www.theactuary.com

ACT Rec Sept15.indd 52

24/08/2015 16:43