The Actuary December 2013

DECEMBER 2013 theactuary.com

ERM

The magazine off the actuarial i l profession proffession i

Embracing a complex mix for a robust risk strategy

Finance and investment Financial repression – a blight or boon?

Puzzles and prizes A Christmas bonanza

Soft skills The Actuary

The art of diligent documentation

FORCE OF NATURE Keeping a weather eye on solar cycles and magnetic storms

December 2013

p01_dec_cover•gc.indd 1

26/11/2013 11:24

Appointments

What’s underneath?

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

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

2

THE ACTUARY • October 2013 www.theactuary.com

ACT.12.13.002.indd 2

26/11/2013 12:06

DECEMBER 2013

Contents

18

34

31

“Low solar activities have implications on climate change.

It is known that large-scale seismic events occur more frequently during periods of low solar magnetic storm activity”

UP FRONT

FEATURES

AT THE BACK

10 IFoA news

18 Interview: Harold Clarke

35 Arts

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

OPINION 5

Editorial Predicting change is part of an actuary’s remit, says Deepak Jobanputra

7

President’s comment David Hare underlines that to succeed at a higher level actuaries will need broader skill sets than their forebears

8

Soapbox Carl Leeman argues that EU mandatory financial security proposals are not taking into account the market capacity already available

36 Book review Matthew Edwards on Solving Solvency: 100 Tips for Managing Insurance Capital in a Shifting Regulatory Landscape by Dr Matthew C Modisett

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

COVER: SCIENCE PHOTO LIBRARY

p03_Dec_contents_FINAL.indd 3

Harold Clarke’s worthy actuarial career spans four decades. Sherdin Omar and Areti Kalkani find out more

22 Enterprise risk management Neil Cantle looks at risk strategy and the ‘Own Risk and Solvency Assessment’ that firms will be facing

25 Financial repression Can government interference in the financial markets aid or damage a country? Paul Fulcher and the financial repression working party share insights

Alvin Kissoon gets festive with some ideas for fun at home with friends

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

39 Student Jessica Elkin recounts a tale of Christmas cheer to all... nearly

40 Actuary of the future Jacob Palmer of Hymans Robertson, ERM

28 Diligent documentation It is increasingly important to be able to articulate accurately, adequately and appropriately, says Sonal Shah

31 Solar: A force to be reckoned with Brent Walker explains how solar activities can affect the risks associated with climate change

34 Burgeoning Burundi Kieran Holmes and Laura LlewellynJones offer an insight into a growing financial landscape

ONLINE Interview: Kenneth Ayers, MBE Kulwant Bola marvels at the sheer drive and enthusiasm of a founding member of the Worshipful Company of Actuaries

GI: Microinsurance – a growing phenomenon The South African Actuarial ConneXions (SAAX) member interest group discuss this expanding market

WRITER OF THE MONTH Neil Cantle wins a £50 book token for his feature on risk strategy, courtesy of SIAS

December 2013 • THE ACTUARY www.theactuary.com

3

26/11/2013 11:30

Appointments

REFER A FRIEND AND RECEIVE CASH We have a number of opportunities for actuaries and students looking to make their next career move.

If you forward a friend or colleague’s CV, with their permission, and we subsequently place them then we will pay you £1,000 if they are a part qualiÄed actuary and £2,500 if they are qualiÄed.

Merry Christmas and Happy New Year from all at

A fresh approach www.the-arc.co.uk

The Actuarial Recruitment Company

Call us anytime including evenings and weekends on 020 7717 9705 or email enquiries@the-arc.co.uk

4

Andy Clark BSc FIA

0781 333 7891

Roger Massey BSc MBA FIA

0781 398 9016

THE ACTUARY • October 2013 www.theactuary.com

ARC Bauble FP.indd 41 ACT.12.13.004.indd

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

06/11/2013 12:09 15:39 26/11/2013

Editorial DEEPAK JOBANPUTRA

Publisher Redactive Media Group 17-18 Britton Street, London EC1M 5TP +44 (0)20 7880 6200 Editor, Redactive finance division Mike Thatcher Publishing director Joanna Marsh Sub-editors Kathryn Manning Caroline Taylor News editor Vivienne Russell +44 (0)20 7324 2788 vivienne.russell@redactive.co.uk Editorial assistant Tania Forrester tania.forrester@redactive.co.uk

Internet The Actuary website: www.theactuary.com SIAS website: www.sias.org.uk IFoA website: www.actuaries.org.uk

Managing editor Sharon Maguire +44 (0)20 7880 6246 sharon.maguire@redactive.co.uk Editor Deepak Jobanputra editor@theactuary.com Editorial team Sarah Bennett, health, international Jeremy Lee, pensions, investment, ERM, banking

Sonal Shah, GI, reinsurance, environment, careers (UK)

Divisional director of digital and recruitment sales John Seaman +44 (0)20 7880 8541 john.seaman@redactive.co.uk

Aoife Martin, GI, reinsurance, ERM, Solvency II

Ring in the new

Helen Lau, GI, reinsurance, environment, careers

Profession news editor Alison Jiggins +44 (0)20 7632 2172 alison.jiggins@actuaries.org.uk

Picture editor Akin Falope

People/society news editor Yvonne Wan social@theactuary.com

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

Student page editor Jessica Elkin student@theactuary.com

Print Southernprint Ltd

Arts page editor arts@theactuary.com SIAS representative Alvin Kissoon

Circulation 24,028 (July 2012 to June 2013)

The Actuary’s editor for the past two years bows out with some thoughts on change and challenges

Richard Purcell Richard Schneider, life, Solvency II, mortality/longevity, modelling and software

Recruitment and display manager Katy Eggleton +44 (0)20 7324 2762 katy.eggleton@redactive.co.uk

Art editor Gene Cornelius

Opinion

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

Subscriptions For subscriptions from outside the actuarial profession: UK, Eire and Europe: £55 a year/£5 a copy. For the rest of the world: £80 a year/£7.50 a copy. Contact: Alison Jiggins, The Institute and Faculty of Actuaries, Staple Inn, High Holborn, London WC1V 7QT. T +44 (0)20 7632 2100 E alison.jiggins@actuaries.org.uk Students on actuarial science courses at universities may join the Staple Inn Actuarial Society for £6 a year. 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: Jane Easterman E jane.easterman@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 December 2013 All rights reserved ISSN 0960-457X

Like The Actuary on Facebook

I have previously written about the elusive nature of time and how sometimes it seems to go fast, or slow. Few, if any, things in life are permanent, and change is something to which we are all exposed.

There are many natural forces at play as well as man-made influences that affect and shape the world. This month we feature an article that considers the sun, solar activity and the impact on climate change. It cites a challenge to actuaries and the profession as a whole to become involved in this area, and suggests we have a unique and varied blend of skills that can work with specialists in these fields. I hope we are able to diversify and grow into these new and exciting areas that have a huge impact on society.

Our interview with Harold Clarke gives an insight into his successful career spanning over four decades. He highlights some great examples of change, as you might expect during this period. Something that particularly caught my attention was the contrast between making a business case for change and taking a chance. Clearly, given the change in the risk and regulatory environment across the globe in recent years, this will be a much bigger challenge.

Hopefully it will not adversely affect innovation. This interview and a number of other features this month focus on communication. Building complex models to solve complex issues may be necessary (and even fun) but process and results need to be conveyed in a comprehensible way to wider audiences.

In keeping with the coming winter break, we have produced our 12 Days of Christmas Puzzle Book again and I hope you enjoy these yuletide teasers. There are lots of great prizes to be won.

Lastly, I have been privileged to be the editor of The Actuary for two years and it is now time for me to step down. The experience has been an amazing and highly enriching one. At times it felt as though I had been doing the job for just a few moments and at other times for years.

I would like to say a big thank you to all those involved with the magazine and welcome the new editor, Kelvin Chamunorwa.

“Few, if any, things in life are permanent and change is something to which we are all exposed”

Deepak Jobanputra editor@theactuary.com

Follow @TheActuaryMag on Twitter

Join The Actuary’s LinkedIn group

December 2013 • THE ACTUARY 5 www.theactuary.com

p05_Dec_editorial_FINAL•CT.indd 5

26/11/2013 11:51

Appointments

Business Critical As a self-respecting actuarial professional, you’ll no doubt want to keep up with the latest industry developments, people and society updates and professional news.

But you’re also busy being an actuarial professional. Right?

That’s why The Actuary’s weekly email alert brings you a handy round-up of only the most relevant news stories and comment, straight to your inbox, every Thursday.

Sign up for weekly news alerts today Visit www.theactuary.com/email-sign-up 2

THE ACTUARY • October 2013 www.theactuary.com

ACT.12.13.006.indd 2

26/11/2013 12:16

›

Opinion President’s comment

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

DAVID HARE

Reflections on making a difference The end of 2013 beckons and I’ve nearly reached the half-way point of my presidency. It feels like a good time to reflect on how things are going.

As I said in my opening address in June, the role of president is no longer to develop strategy – this rests with your elected representatives, the Council. As president I am an agent for the Council, which makes me your agent. My role as president is to be a representative voice and to use my particular skills and experience to help guide the implementation of the strategy and visibly champion the achieving of our mission and vision.

As you know, I chose ‘ramping up our relevance’ as the theme for my presidency.

As these columns will, I hope, have made clear in the past few months, I am keen to promote member engagement both for our own sake as a profession and to make a difference to society, whether that be through the work that each of us undertakes daily or through the wider public affairs work of the IFoA. I am, as I am sure you are now aware, keen to encourage us all to broaden our skill sets.

Businesses and government policy makers are looking for non-technical skills like influencing, communication and commercial awareness as well as technical skills.

When I speak to new qualifiers on how they can “be relevant and keep relevant,” I suggest that, in addition to keeping their technical and professional skills up to date, they also look to trends in corporate and public strategies and the consequential resource requirements.

To be relevant as individuals and as a profession we must consider what the market and employers need and how our skill sets fit with this – including how we can utilise the technology that is now available to us. To succeed at the highest levels the modern actuary will need a broader skill set than their forbears.

I recently had a conversation with a senior manager at a FTSE 100 company about the career prospects for actuaries at middle and senior management levels. Rather than

David Hare underlines that to succeed at a higher level actuaries will need broader skill sets than their forebears talking about this in terms of future direction, he was thinking about the “here and now”, and was considering the extent to which the current generation of actuarial professionals in his firm needed to develop their skills to ensure they kept relevant to their firm’s business model. He was asking questions like: What can they do to help themselves? How much hand holding do they need? The need to be relevant and move with the times is incumbent on us all, not just those starting out.

When I discuss relevance I’m not only referring to actuaries in the outside world.

I’m also conscious of the need for the IFoA to be relevant to its membership. The IFoA is working hard to answer your calls for change. However, I recognise that more is needed and that this will take time.

The new-look www.actuaries.org.uk, which goes live next year, will help I’m sure, but what else can be done?

I wonder if we are missing a trick by emphasising the need to volunteer? One of the actuarial functionholders I was speaking to recently felt that this was the wrong emphasis. His view was that if we were to refer to “development opportunities”, members would be more likely to engage. It seems to me that as this is what the roles we offer actually are, after all, he may well have a point. I know that many of our members (and there are now

more than 25,000 of us) are keen to give something back, and nearly 2,700 of us are clearly happy to volunteer. But, to tap into the other nearly 90%, would a change in positioning help? Something to ponder – and I would be interested in hearing your thoughts.

At the strategy session we held at last month’s Council meeting, the question was raised about whether our qualification takes too long to achieve and if the training approach we use is flexible enough for today’s world. These are not new questions, but I sense answering them is becoming more urgent.

These are the sorts of issues I am grappling with as I seek to lead the IFoA Council and work in partnership with Derek Cribb, the IFoA chief executive. Are we headed in the right direction and are we moving quickly enough?

I think we need to do more, and I think more of the membership should be active in demanding more.

There is an opportunity for you to do so this month, as the practice board surveys arrive in your in-boxes. Please do take the time to respond.

These are exciting times. I look forward to the New Year and to tackling the many challenges and opportunities that will come with it. a

“To be relevant as a profession we must consider what the market and employers need and how our skill sets fit with this”

December 2013 • THE ACTUARY www.theactuary.com

p07_Dec_pres_comment_FINAL•CT.indd 7

7

26/11/2013 11:31

›

Opinion Soapbox

CARL LEEMAN

Mandatory security is not good security Mandatory financial security has become a big trend at EU level, thanks to recent catastrophic events, such as the 2011 Fukushima reactor disaster in Japan. But as business insurance buyers, we believe this is not the way to allow the market to create the most efficient solutions for the industry.

Three separate Directorates General (DG) of the European Commission – Environment, Energy and Internal Market & Services – have come up with mandatory financial security proposals this year. The Commission wants to convince member states that such panEuropean schemes are necessary to cover the adverse consequences of industrial activities.

It’s also looking at ways of funding the impact of natural and man-made disasters, likely to be highlighted by the devastation caused by Typhoon Haiyan in November.

Starting in 2012, DG Environment commissioned a series of reports on the enforcement of the Environmental Liability Directive (ELD) in the 27 member states, which were published in June 2013. The ELD established a new kind of liability regime for biodiversity damages for certain industrial operators; this current review was the opportunity for the Commission to start thinking more about the ability of companies to pay for the recovery. Its idea is that operators should be able to demonstrate they have the financial capacity to pay the costs of environmental remediation, by insurance, letter of credit, internal provision or some other means.

Risk and insurance Except for the largest companies with deep resources, insurance is likely to be the most cost-effective means of covering these exposures, and since the ELD came into effect in 2004, the insurance industry has been developing products to meet the needs of operators. The Federation of European Risk Management Associations (FERMA) sees no need for what is in effect a compulsory scheme for financial security for environmental impairment, and there have been no cases to date where it would have been necessary.

The Commission is not taking account of what market capacity is already available. A

8

Carl Leeman argues that EU mandatory financial security proposals are not taking into account the market capacity already available compulsory scheme could not be flexible enough to respond to the diverse nature of operators and risks under the ELD, and it would reduce the ability of the insurance industry to build a viable pool of business.

When the insurance market is working well, there is no specific reason to move to a mandatory financial security scheme. A free insurance market is likely to respond better to the needs of insurance buyers at a fair price, and there is established law on many of the coverage issues that could arise.

The Commission will release its final report on ELD financial security in April 2014, with a list of options to be discussed by the new Commission following the European elections in May. The only exception among the current crop of proposals is the nuclear sector, for which the energy commissioner confirmed there would be a proposal before the end of the year for a mandatory insurance scheme for nuclear operators, and that it will be high on the agenda of the new parliament.

It is up to industry to convince the Commission that imposing mandatory financial security schemes for environmental damage on European operators would be

counter-productive. For one, it would lead to unintended and potentially damaging consequences, as it would be a long and risky task to reach a consensus over such measures among member states with very uncertain results.

The environmental insurance market should be allowed to continue to develop without constraints from a rigid and ‘one-sizefits-all’ kind of regime. ELD-related risks are too diverse and their exposure is over a long time. These cannot be covered by one single mandatory insurance scheme.

Let’s also remind ourselves that the Commission is now also active on the cyber security front, with a specific strategy and a proposed Directive on Network and Information Security targeting ‘critical operators’ and their infrastructure. No doubt financial security will also come up at some point.

“A compulsory scheme could not be flexible enough to respond to the diverse nature of operators and risks”

Carl Leeman is a board member of FERMA and president of the International Federation of Risk and Insurance Management Associations (IFRIMA). He is chief risk officer of global logistics services provider Katoen Natie, based in Antwerp

THE ACTUARY • December 2013 www.theactuary.com

p08_dec_soapbox•FINAL.indd 8

26/11/2013 11:53

Features list 2014 The issue themes below are not exclusive – the aim is always for a strong cross-section of articles to cater for The Actuary’s wide readership While we take every care to adhere to the themes shown, please note that this schedule is subject to occasional revisions. Please check prior to particular issue deadlines for details.

January/February 2014 Published: Contributor deadline: Ad booking deadline:

Issue theme 6 February 2014 03 January 2014 21 January 2014

■ GI ■ Environment ■ International

06 March 2014 31 January 2014 18 February 2014

■ Investment ■ Enterprise Risk Management ■ Soft skills

Events etc

March 2014 Published: Contributor deadline: Ad booking deadline:

April 2014 Published: Contributor deadline: Ad booking deadline:

03 April 2014 28 February 2014 18 March 2014

■ Business Social Media ■ Modelling solutions ■ Pensions

May 2014 Published: Contributor deadline: Ad booking deadline:

01 May 2014 26 March 2014 11 April 2014

■ Health and care ■ GI ■ Life

June 2014 Published: Contributor deadline: Ad booking deadline:

05 June 2014 25 April 2014 19 May 2014

■ Pensions ■ Risk Management ■ Environment

03 July 2014 30 May 2014 17 June 2014

■ Careers: Working overseas ■ Banking/Financial services ■ Solvency II/regulation

August 2014 Published: Contributor deadline: Ad booking deadline:

07 August 2014 27 June 2014 22 July 2014

September 2014 Published: Contributor deadline: Ad booking deadline:

Pensions Conference (12-20 June) Risk & Investment Conference (June tbc) Working overseas supplement

July 2014 Published: Contributor deadline: Ad booking deadline:

Health & Care Conference (21-23 May)

04 September 2014 25 July 2014 18 August 2014

■ Investment Modelling ■ Health & Care ■ Life

■ GI ■ Environment ■ Reinsurance ■ Mortality/Longevity

Mortality Conference (15-17 Sept) GIRO Conference (23-26 Sept)

October 2014 Published: Contributor deadline: Ad booking deadline:

02 October 2014 29 August 2014 16 September 2014

■ Investment ■ Risk Management ■ Health & Care

06 November 2014 26 September 2014 21 October 2014

■ Solvency II/Regulation ■ Pensions ■ Life

04 December 2014 24 October 2014 18 November 2014

■ Careers/CPD ■ Enterprise Risk Management ■ Reinsurance

November 2014 Published: Contributor deadline: Ad booking deadline:

December 2014 Published: Contributor deadline: Ad booking deadline:

FURTHER INFORMATION For further information and advice please contact features@theactuary.com

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

Life conference (9-11 Nov)

Momentum conference (Dec tbc)

WRITING FOR THE ACTUARY See terms and conditions at www. theactuary.com/contribute/

December 2013 • THE ACTUARY www.theactuary.com

p9_dec_themes_FINAL•CT.indd 9

9

26/11/2013 11:31

News IFoA NEWS UPDATES FROM THE ACTUARIAL PROFESSION

Upfront Opinion CEO’s comment Derek Cribb takes a look at what the IFoA has achieved in 2013 and what the future holds

The year in review Derek Cribb is the chief executive of the Institute and Faculty of Actuaries

As the year draws to a close, I wanted to use this opportunity to take stock of what we have achieved in 2013 and to look ahead at what is on the horizon for 2014.

It has been another busy year for the IFoA. Our flagship residential conferences have been well attended and raised interesting discussion points across all practice areas. In particular, the number of delegates at GIRO increased from 630 in 2012 to 716 in 2013. The number of exam entries has also increased, with 26,864 exams sat across the April and September sessions. For the first time, both the number of exam entries and the number of IFoA members around the world has breached the 25,000 mark.

Our research continues to attract interest, particularly the Third Party Working Party’s contribution to the third-party motor insurance debate, encouraging further engagement with Whitehall and Westminster. On international engagement, we appointed Wen Li as our first lead representative in China and the south-east Asia region to support the rapidly growing number of members in the area. We rolled out the IFoA’s new brand, which I hope you’ll agree really helps to convey our organisation’s identity, and also commenced the new professionalism training regime, which is free for IFoA members.

Members have long asked us to improve our website and, in the first half of 2014, the new website goes live. Members will also see further work on the new quality assurance scheme, which will encourage best practice within their various working environments.

We will also be launching the new Certified Actuarial Analyst membership category, to give those working at a technical actuarial level a valuable qualification.

On the public affairs side, we will continue to inform debate on issues such as Scotland’s referendum on independence, adding value in those areas where we can make useful factual contributions, such as on the potential impact on the financial services. Above all, we will continue to provide outstanding support to all of our members.

I wish you all the best for the festive season, and a happy and prosperous 2014.

DEREK CRIBB

10

FRC: New accounting regulations open up opportunities Early in November, the Financial Reporting Council (FRC) announced new accounting regulations for listed companies: risk management; internal control; and the going concern basis of accounting.

The new requirements will mean that sophisticated solvency and liquidity risk reports will be mandatory and that auditors will be required to both check the company’s risk assessment and assess these risks themselves. The FRC said that the “narrow accounting basis” of going concern would be retained, but that it would incorporate the stewardship definition into the reporting of solvency and liquidity risks.

The council was quoted in the media as saying: “When looking at going concern in layman’s terms, people want to know if the entity is going to be able to settle its bills. We wanted to move away from giving a going concern statement in the narrative report.”

Robust risk assessments The new rules will require companies to undertake robust risk assessments, often backed up by scenario modelling, and for auditors to be able to investigate and challenge the work that was carried out to evidence these assessments.

With an October 2014 application date, the timeline to implement these activities is challenging to say the least, and access to established expertise in the modelling of financial uncertainty and risk will be vital.

Few professionals have the technical knowledge and judgement required to undertake the modelling that these new rules demand. Clearly, there is an opportunity here for actuaries to play a key role in helping companies and auditors to implement these new requirements.

THE ACTUARY • December 2013 www.theactuary.com

p10_13_DEC_prof news_FINAL•CT.indd 10

26/11/2013 11:33

CPD: How professional skills training fits in Experienced members of the IFoA must complete at least two hours of learning focused on professional skills training (PST) each year. Here’s how that obligation fits with your wider continuing professional development (CPD) requirements What are professional skills?

The aim of PST is to enhance members’ understanding of their professional obligations and the principles of ethical behaviour and to equip them to apply that knowledge in practice.

How do I meet my CPD and PST obligations?

It’s important to note that under the PST you don’t need to complete two extra hours of CPD each year: the two PST hours will count towards your overall CPD requirement.

Category 1 members Experienced members who hold practising certificates are expected to complete 30 hours of CPD each year. Of those:

● 20 hours must relate to technical issues (10 of which must be obtained at external events); ● A minimum of two hours are focused on professional skills, in accordance with Stage 3 of the Professional Skills Training Handbook; and ● At least four hours of learning is related to either business skills and/ or additional professional skills. Business skills are those wider, non-technical skills that may be required no matter what role you carry out and may include management, staff development and IT training.

Category 2 members Most Category 2 members must complete between 15 and 20 hours of CPD, depending on the types of activities you choose to undertake.

If you have reached Stage 3 of PST, two of those hours must relate to professional skills. If you have not completed Stage 2, you will be expected to do so within a year of transferring to the category of Fellow or Associate. Beyond this framework, you are free to select a mix of

learning on technical and professional skills relevant to your role.

Professional skills learning The IFoA has produced a number of video case studies that have been designed to meet the Stage 3 objectives set out in the Professional Skills Training Handbook.

These case studies include discussion in the form of character interviews. You can access the videos via the professional skills training area of the website.

Any learning that meets the Stage 3 objectives set out in the Professional Skills Training Handbook will, however, qualify as professional skills learning.

Please do ensure that you read and familiarise yourself with both the CPD scheme and the professional skills training regime, which can be found on our website.

If you have any questions about requirements for professional skills training, please email professional.skills@actuaries.org.uk

LIFE CONFERENCE: DARLING’S ECONOMY

China and SE Asia representative Wen Li sets out the IFoA’s five-year strategy

EAAC: Redefining risk The East Asian Actuarial Conference (EAAC) is one of the largest actuarial events in Asia. The 17th EAAC was held in Singapore between 15-18 October. The EAAC member associations include Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Chinese Taipei and Thailand. The conference was first held in 1981 and has since been held in varying parts of Asia. This year’s main theme was ‘Redefining risk, creating value’.

This year’s event attracted over 500 actuaries and industry professionals from the region and around the globe. The IFoA representative team was led by CEO Derek Cribb. The IFoA had a booth at the conference, providing information on the new Certified Actuarial Analyst qualification, volunteer opportunities, working parties and popular research papers. During the conference, Derek Cribb led a drinks reception on 16 October for IFoA members attending the EAAC. Wen Li, the IFoA’s lead representative in China and south-east Asia also gave a 10-minute presentation covering our vision; the five-year strategy, including education, member support, public affairs and research; and our international strategy.

The 17th EAAC presentations are now available to download at: tinyurl.com/pzxkvfn

ALAMY

p10_13_DEC_prof news_FINAL•CT.indd 11

The Life Conference and Exhibition was a huge success, with 970 delegates attending. We trust that those who attended found it useful and enjoyable.

The conference opened with HBOS whistle-blower Paul Moore, who provided an interesting and personal story that raised many professionalism issues.

Journalist and author Michael Blastland gave an entertaining talk on communicating mortality risk, perhaps tempting the audience to use sound for their latest mortality assumptions.

It would be difficult to single out one particular workshop session, as the level of participation and debate amongst them all was outstanding.

We closed on a high point with former Labour chancellor Alastair Darling offering his perspective on the current state of the economy, followed by an excellent question and answer session.

Attention now turns to next year’s conference in Birmingham. The committee is seeking up to three new members to help shape the conference. For more details, see the volunteer article (p12) or email debbie.atkins@actuaries.org.uk

Book for next year’s Life Conference at: tinyurl.com/oZkyon6

December 2013 • THE ACTUARY 11 www.theactuary.com

26/11/2013 11:33

News IFoA NEWS UPDATES FROM THE IFOA

NEWS IN BRIEF

Give something back:

New qualification takes a step forward The IFoA is pleased to announce that, on 7 November, the Privy Council granted formal approval to the amendments to the IFoA’s bye-laws, which are required to introduce the new membership categories associated with the Certified Actuarial Analyst qualification.

This significant milestone means that we can now formally proceed with plans to introduce the certification, which will provide those working in financial and actuarial roles at a technical level around the world with both valuable skills and a qualification that is well respected.

If you would like to register your interest in the qualification, please get in touch at caa@actuaries.org.uk.

Read all about it: more e-books for members Members now have access to double the number of e-books from the library service following further investment in the Athens information portal.

New titles include the recently published Loss Models: From Data to Decisions, 4th Edition and Risk Modelling in General Insurance, as well as another 20 titles appearing in the recommended additional reading for the exams.

Access is available via computer, tablet or mobile phone with an internet connection, and sections can also be downloaded or printed for reading offline. For an Athens password and further details, contact libraries@actuaries.org.uk

Going in search of pastures new The ‘How and why to get actuaries into wider fields’ working party was established to investigate how actuaries might be able to apply their professional skills and experience outside the ‘traditional’ fields of insurance, pensions and asset management.

The working party would like to invite those currently engaged in (or have experience of) working in areas and industries outside of these traditional fields to complete this short survey: tinyurl.com/qdxzwya.

They are particularly interested in exploring opportunities in education and would welcome contact with members involved in such work, whether full or parttime. This will help to broaden the options for actuaries and ensure that the IFoA continues to remain influential and relevant.

12

Volunteering is a great way to give back to your profession, earn continuing professional development (CPD) hours and develop your skills further. Take a look at some of the new volunteer vacancies available below and find out more at: tinyurl.com/qa6ltgc Resource and Environment Board members

International appeal: volunteering was on the agenda at the IFoA’s booth at the East Asian Actuarial Conference

The IFoA is seeking to appoint enthusiastic, innovative and committed volunteers to join this important new board, and to build

A mine of information Paul Reynolds, director of public affairs, outlines a very busy year for his team

The IFoA’s public affairs team is here to help members to disseminate information through the right channels. This information includes research and consultation responses, with channels including media and stakeholder engagement. In the last few months of 2013 we have been very busy on your behalf.

Hopefully, you are aware of the IFoA’s engagement in the preScottish independence referendum debate. Driven by members, the IFoA published a paper in October looking at the key challenges facing financial services if Scotland were to become independent.

The IFoA has no political bias in this debate, but by identifying issues is seeking to inform the public debate.

From a stakeholder perspective, the paper was warmly received by both the Yes and No campaigns and also by the media; generating a significant level of national and regional coverage. If you would like to know more about the engagement work being undertaken, please visit: tinyurl.com/oq832ra The public affairs team has helped to coordinate more than 21 consultation responses since the start of September, including; the International Accounting Standards Board (IASB) exposure draft for insurance contracts; the European Insurance and Occupational Pensions Authority’s (EIOPA) consultation on holistic balance sheets (sponsor support technical specifications), the Department for Work and Pensions’ (DWP) consultation on defined ambition and the Department of Health’s paper Caring for our Future: Reforming What and How People Pay for their Care and Support. The input of the practice Boards and working parties in providing these responses is invaluable, with the pensions practice board and working parties having had a particularly busy year.

Contact debbie.atkins@actuaries.org.uk if you wish to volunteer your services for future responses. If you would like to view the consultation responses please visit: tinyurl.com/aa2kzz5 We also help to disseminate research through the right channels. In November, the Third Party Working Party’s (TPWP) updated analysis on third

THE ACTUARY • December 2013 www.theactuary.com

p10_13_DEC_prof news_FINAL•CT.indd 12

26/11/2013 11:33

volunteer for us EVENTS AND on the work of the Resource and Environment member interest group (MIG).

Life Conference Programme Committee 2014 If you work in the Life practice area, particularly a Life office, and have an excellent awareness of current issues, please consider joining the committee and helping shape the content, topics and theme for the Life Conference 2014. The committee is looking to appoint up to three new members.

Question bank authors for the Actuarial Analyst Qualification The IFoA is seeking enthusiastic Fellows to volunteer to author questions in relation to the computer-based assessment platform that will support the new Certified Actuarial Analyst qualification. Ideally, they will have experience of setting a wide range of objective test questions, or be willing to undergo training in this method of assessment. The qualification is scheduled to be launched during 2014.

for public affairs party injury and damage data for motor insurance was released to the media, with requests for more information and meetings from a number of public bodies following the coverage. You may have also noticed that the IFoA has sponsored three significant pieces of external research since September. The Finance and Investment Board sponsored research looking into the use of real estate investment in auto-enrolment defined contribution schemes: Returning to the Core: Rediscovering a Role for Real Estate in Defined Contribution Pension Schemes. The Pensions Board sponsored research by the Pensions Policy Institute (PPI) looking at pensions tax relief in the UK and also research from the PPI looking at what saving at the auto-enrolment minimum levels could mean for later life income. The IFoA provided comment on all of these items – if you would like to know more, please visit: tinyurl.com/p4vldqc Lastly, the IFoA does comment on important issues as and when they arise, where member interest is aligned. Clearly, it has been a busy year and, as such, the IFoA has issued a number of comments, including, in the past three months, on the Office of Fair Trading report into workplace pension schemes, new regulations by the Financial Reporting Council for listed company accounting and, of course, on the defined ambition consultations.

We do not email members every time we issue a statement, but we do ensure that these statements can be found in the news section of our website and in your newsletters so that you are up to date with the views expressed by your professional body.

If you ever have any questions for the public affairs team, please do contact us at: press.office@actuaries.org.uk

Have your say: practice-specific surveys

CONFERENCES Resource and environment networking event 11 December 2013 17.30 to 20.00 (registration from 17.00) This is an opportunity to meet actuaries with an interest in resource and environment issues, and to contribute to the development of the strategy of the Resource and Environment Board, recently launched by the IFoA. Resource constraints and environmental change are affecting all practice areas and starting to create new areas of work, for example in the implications of climate change for investors and insurers, and in energy modelling.

For more information visit: tinyurl. com/oskqam2

With profits business – coping with change 21 January 2014 12.30 to 17.10 This seminar will highlight and discuss the key issues currently affecting the management of with-profits business and provide an opportunity to discuss the best way to address these going forward. This seminar is aimed at all life actuaries and senior management with an interest in managing with-profits business.

For further information visit: tinyurl.com/k2hojvj

CANUK anniversary event

Mortality and longevity conference 2014

12 December 2013

15-17 September 2014

18.30 to 21.30 The Chinese Actuarial Network UK (CANUK) is delighted to invite you to celebrate its second anniversary at Staple Inn after another successful year.

Admission is free for all CANUK members and honoured guests and is on a first-come first-served basis. Please register online to avoid disappointment.

For further information visit: tinyurl.com/mzsnqc3

This conference will provide a multi-disciplinary forum for the exchange of information on the latest relevant research. It is also an opportunity to learn about established knowledge from a range of different disciplines, all with the aim of better understanding and managing this complex yet critical subject.

The themes for this event are: ● Medical advances and the impact of genetic profiling on medicine and longevity ● The international perspective: what we can learn from elsewhere ● New sources of information: ‘big data’, risk factors ● Practical mortality and morbidity: pricing/reserving for the long-term, underwriting, critical illness, long-term care and underwritten annuities.

For more information about the conference, please contact: petrina.parnell@ actuaries.org.uk

Highlights from the health and care 2013 Conference: Understanding the fundamentals affecting our products 13 January 2014

Each of the practice boards will be launching their own surveys before the end of the year. Influence what your board does for you. What continuing professional development (CPD) do you want to have access to? What research topics do you want discussed? What do you want presented at conferences? What content will help you be a more effective actuary?

Make sure you take the opportunity to have your say by completing the survey when you receive it. It is vital to the IFoA’s future progress.

across all product lines ● Speakers from outside the actuarial profession.

For further information visit: tinyurl.com/nfov8n8

09.20 to 15.05 (registration from 09.00) This event will cover: ● Highlights from the 2013 Health and Care Conference ● Topics selected for applicability

December 2013 • THE ACTUARY 13 www.theactuary.com

p10_13_DEC_prof news_FINAL•CT.indd 13

26/11/2013 11:34

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

News People & Society

A banquet fit for actuaries

By Simon O’Regan More than 100 liverymen and freemen of the Worshipful Company of Actuaries and their guests gathered in the Clothworkers’ Hall on 25 September for the Autumn Livery Dinner. This was the first time the Company had held a dinner at Clothworkers’ Hall. The WCA were grateful to the Clothworkers for making their fine hall available, and were delighted to have the master of the Clothworkers’ Company, Mr Christopher McLean May, as a guest.

This was the second livery dinner in the term of the WCA master Charles Cowling, who has adopted as his theme for the year: ‘Making a difference in the lives of others’. Guest speakers at each of these two dinners have certainly

underlined this theme with challenging and thought-provoking topics.

The principal guest on this occasion was Esther Rantzen CBE, the journalist and TV presenter, also well-known for her work on charitable causes. Esther led the establishment of Childline, now part of the NSPCC, focused on supporting children suffering abuse. On its first night of operation in October 1986, Childline received 50,000 calls from children around the country. This call rate continued for the following six weeks, showing the depth of need in this area. Childline is now in its 27th year of operation, and has been emulated in more than 100 countries. Childline and its volunteers continue to play a critical

role today in educating and supporting children in need.

Esther has been prominent in the creation of Silverline, a support and befriending service for the elderly. Esther talked about widespread loneliness amongst older people and the stigma that people feel in talking about it. Silverline launched last month after securing £5m funding from the National Lottery Fund.

Esther Rantzen has certainly ‘made a difference’, and her inspiring speech left us all thinking about what each of us could do individually, and as a Company, to make a difference to the lives of others.

For further details, visit Silverline: www.thesilverline.org.uk/

Sunny Spain’s highs and lows

By Jonathan Halstead Have you ever looked out of the office window and wished you were somewhere else? Well, I have, and I have been doing so for 30 years now. So I decided it was time to do something about it. I have spent the past six months travelling around the Spanish hills and forests by mountain bike, visiting remote and spectacular areas. Many will have heard of the Sierra Nevada and the Pyrenees, but other areas, like the Sierra de Tejeda and Sierra Segura, are little visited, less populated and all the more beautiful for it. The Sierra de Alcaraz and Sierra d’Espada were the most amazing places with their deep gorges giving incredible views – and some tricky riding: I was travelling with a trailer on the back of the bike and 20kg of kit, which made down-hills that little bit more interesting. If you would like to watch the video diaries or download the satnav files, go to www.my-epic-journey.com/stories/1. You can read all about it in date order or like a book, in chapters. You will find it has lots of information on planning and the kit I used, just in case you want to do such a trip yourself.

14

Interview with Ken Ayers In

The joker in you

Ku Kulwant Bola has interviewed Ken Ayers, a founder me member of the Worshipful Company of Actuaries an and most recently the chief commoner of the City of Lo London Corporation. As well as discussing Ken’s su successful career – which he modestly attributes to mo mostly “extraordinary good luck”– Ken gives some ad advice to trainee actuaries and talks about his views an and paper on state pension ages. The full interview ca can be found online at www.theactuary.com.

Donald Macleod has written and published a second charity joke book following the success of his first book which raised £7,000.

Some jokes from his new book include: ● “Doctor doctor, I think I’m addicted to iPads.” I can give you a tablet for that. ● “How do you make a pirate angry?” Take away the ‘p’.

There are around 300 jokes in each book, which cost just £10.

If you would like to buy a copy, please email Donald at donniemaroot@hotmail.co.uk.

THE ACTUARY • December 2013 www.theactuary.com

p14_15_DEC_soc_news_FINAL•CT.indd 14

26/11/2013 13:19

Like The Actuary on Facebook

Follow @TheActuaryMag on Twitter

Join The Actuary’s LinkedIn group

12 in 12 marathon feat continues On 3 November, Andrew O’Brien ran the New York marathon – his sixth marathon since June this year.

Andrew dedicated his run to Josephine, a young woman from Uganda who was born with HIV. With the help of ISIS, Josephine and her family were able to cultivate a plot of land in the village and build a home in which they now live. Josephine’s health stabilised and she is able to concentrate her efforts on her schooling and helping her mother in caring for her younger siblings, all of whom have since tested negative for HIV. Money raised by Andrew from his 12-in-12 challenge will go toward continuing the great work that the Kiwoko Hospital does supporting local HIV sufferers, like Josephine and her parents. HIV continues to be a huge issue in Uganda but you can help Josephine and others like her by donating to Andrew’s campaign at: www.justgiving.com/ISIS12in12 For all the latest updates, visit www.12in12forisis.com

JLT Manchester plays in pink Ratings game

By Carl Harrison On 25 October, at an incredibly wet Warrington venue, a team from the Jardine Lloyd Thompson (JLT) Manchester office – including a number of actuaries – took part in an 11-a-side football match against HS Admin.

The JLT team were dressed in pink in support of the national ‘Wear It Pink’ day.

The weather did not lend itself to top quality football but the two teams battled it out in raging winds and lashing rain against a backdrop of forked lightning slashing across dark skies. After a few early flurries, JLT managed to get two goals through Paul Pritchard and Dwaine Crawford before it really started hammering it down.

Marriage Congratulations to Gareth Evison (JLT) and fiancée Issy, who got married on 20 October at St Mary’s Church, Nercwys, North Wales.

They are pictured here with their daughters Sophia and Scarlett.

REX / SHUTTERSTOCK

p14_15_DEC_soc_news_FINAL•CT.indd 15

After a short break and a few formation shuffles the match got under way again with HS Admin looking a bit more composed on the ball as the match wore on. Despite this, JLT managed to get two more goals from Marc Law and Dwaine Crawford to take a 4-0 lead, as the rain fell ever harder.

Eventually, a bit of HS Admin pressure told and they were able to score from a cross to make it 4-1 just before the end.

A terrific £666 was raised for the Breast Cancer Campaign, which included a matching contribution of £333 from JLT. We would like to say a big thank you to everyone who played and all those who donated to a great cause. www.breastcancercampaign.org/

Birth Neil Watson (Prudential) and his wife Donna are pleased to announce the birth of their son Henry James Watson on 11 September, weighing 8lb 6oz.

Henry is a little brother for Gregor and Penny.

Death Andrew George O’LEARY has died, aged 84. He became a Fellow of the Institute in 1959.

The London Market Student Group organises events at which the next generation of actuaries can learn from senior figures working in the general insurance industry – all in a relaxed atmosphere.

On 21 August, the group hosted a talk on ‘Actuaries and rating agencies’, presented by Cameron Heath of Barnett Waddingham, who previously worked at S&P and was the global head of non-life reserving and the European head of insurance linked securities.

Cameron started by explaining how rating agencies express their opinion on the likelihood that an issuer will or will not pay its debts. These ratings are important for the insurance industry as they affect the cost of capital, the capital charge for credit risk and also the price you can charge for reinsurance.

He finished by giving a brief overview of cat bonds, which are financial instruments used to transfer peak insurance risk to the capital markets.

There has been increasing investor demand for cat bonds, owing to the low correlation with other investments and the positive returns they have brought (despite the Lehmans crash).

To learn more about upcoming events, or if you are interested in speaking at or sponsoring an LMSG event, please contact our chairperson at Meera.Rajoo@directlinegroup.co.uk.

For the full article, visit www.theactuary.com

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

December 2013 • THE ACTUARY www.theactuary.com

15

26/11/2013 13:20

› GENERAL INSURANCE

NEWS ROUND-UP

Two years to get Solvency II right, says Bernardino

Insurance brokers back Flood Re – with reservations

Europe’s insurance and pensions regulator has stressed that the next two years will be “crucial” for the success of Solvency II. Gabriel Bernardino, chair of the European Insurance and Occupational Pensions Authority, said the more companies worked together “the more consistent preparatory work [and] the more efficient... full implementation of Solvency II [would be] in 2016”.

He told delegates at EIOPA’s third annual conference in Frankfurt that the regulator would publicly consult on technical standards and guidelines during 2014 “in order to deliver them in time for a good and timely implementation by the industry”.

He said the next two years should be used to actively implement measures to avoid the worst-case scenarios.

“We need to continue to see adjustments in product design in order to gradually change the mix of business. And we need to see this change preserving the rights of the policyholders and avoiding any mis-selling cases.

“The reputation of the insurance industry needs to be preserved. It is a difficult balance but it is crucial to achieve it,” Bernardino said.

In November, EU politicians struck a provisional deal that could introduce new rules to the Solvency II framework.

This was in time for the revised directive to enter into force, said Raimundus Karoblish, chair of the European Union’s Permanent Representatives Committee devising the regulations, and should create momentum for final adoption by the EU Council and European Parliament.

Insurance brokers have backed the adoption of Flood Re but raised some concerns about aspects of the government’s plans. A report prepared by the Chartered Insurance Institute’s (CII’s) New Generation group highlighted clauses 5-11 of the Water Bill, which will bring in Flood Re, but which could lead to a reduction in capacity and competition. A spokesperson for the group said: “We feel strongly that adherence to the [Flood Insurance] Obligation will require auditing, supervising and enforcing, which will bring about additional costs to the industry. Furthermore, the framework does not appear to address the issues of affordable premiums, which devalues the entire proposal.”

The group also said Flood Re is not intended to address the issue of cover for businesses and commercial premises, and warned that small and medium-sized businesses in particular may find it difficult to purchase insurance in the free market. The group’s opinion is independent and does not represent CII policy.

LARGE LOSSES

Insurers challenge proposed accounting standard The proposed international accounting standard for insurance contracts needs “critical amendments” if it is to properly reflect the realities of the business, Insurance Europe has said.

Commenting on proposals issued by the International Accounting Standards Board (IASB) for a permanent accounting standard for insurance contracts, the association said more work was needed to make them workable. The International Financial Reporting Standard 4 Phase II has been in development for three years.

Olav Jones, the deputy director general of Insurance Europe, said: “The IASB has made considerable strides in addressing the concerns raised by insurers since the original draft in 2010.

“However, a number of critical areas require further development to appropriately reflect the long-term nature and the asset-liability management that are fundamental to insurance business.”

Among insurers’ concerns is the provision for an ‘other comprehensive income’ (OCI) model for changes in market interest rates on both insurance liabilities and related assets.

Insurance Europe said this OCI model should not be mandatory. Instead, insurers should have the ability to apply fair value either through the profit and loss account or through OCI. This would avoid possible accounting mismatches and inappropriate performance reporting for certain types of business.

16

THE ACTUARY • December 2013 www.theactuary.com

p16_DEC_gen_ins_news_FINAL•CT.indd 16

£130m Cost to UK insurers of the St Jude storm that swept Europe in October Thunderstorms, Europe UK insurers are expected to pay out around £130m to people whose homes, businesses and vehicles were damaged by October’s storm, according to the Association of British Insurers. The ABI said its members would deal with a total of 105,000 claims by customers affected by the St Jude storm. Aidan Kerr, the ABI’s head of property, said: “The storm was a significant event with some tragic consequences, but

advance warning meant people were well prepared and could take steps to minimise damage and disruption.

“Violent weather like this is exactly what insurers expect to deal with during the year, and they will have mobilised claims teams to help customers recover as quickly as possible.” Catastrophe modelling firm AIR Worldwide estimated insured losses caused by the Europeanwide storm at between €1.5bn and €2.5bn, with the majority of the losses occurring in Denmark and Germany.

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

REX

26/11/2013 11:35

News Industry news@theactuary.com

DWP issues defined ambition consultation

DB pension deficit climbs to £6bn

ABI to review UK retirement needs

The Department for Work and Pensions has set out its thinking on the move towards defined ambition pensions to complement the traditional defined benefit and defined contribution structures that dominate the market.

The aggregate deficit of UK companies’ defined benefit pension schemes increased by £6bn in October driven by falling bond yields, Mercer said. According to the consultancy’s latest risk survey, the estimated deficit of the FTSE 350 companies’ pension schemes stood at £102bn at the end of October.

The Association of British Insurers (ABI) has launched the first comprehensive review of the UK’s retirement needs to determine how the market can develop in the future.

The ABI’s investigation will examine the products, information and advice available to people as they reach retirement age. Areas to be explored are people’s financial needs in, and concerns about, retirement and what changes are needed to ensure adequate retirement incomes. The ABI said ‘radical’ reforms were needed to ensure that people do not struggle to make ends meet once they retire.

ABI director general Otto Thoresen said: “Reform has to be holistic. The pensions industry has a key role to play in meeting people’s changing retirement needs but we are part of a much bigger picture. This is why we are inviting views from far and wide, including consumer groups, charities, health support groups, think-thanks, unions and politicians.”

The ABI’s review closes on 20 December. A final report will be published in spring 2014.

A DWP consultation issued in November sets out three possible ways forward: flexible DB; risk sharing and risk pooling; or collective DC. Pensions minister Steve Webb said: “Our proposals for defined ambition pensions are designed to reinvigorate workplace pensions, providing people with more certainty about what they will get in retirement.”

Andrew Vaughan, who chairs the defined ambition industry working group as well as the Association of Consulting Actuaries, said the proposals addressed an unfinished agenda and provided a way forward towards both reshaping and reinvigorating workplace pensions.

Nick Salter president-elect of the Institute and Faculty of Actuaries, said the work undertaken by the DWP on defined ambition was a step towards offering a lot of fresh thinking for the pensions industry.

“There are clearly considerable challenges ahead and working with the DWP and the rest of the pensions industry, actuaries have an important role to play in helping to identify how to overcome them,” he said.

The consultation closes on 19 December 2013.

For more on this story, visit bit.ly/I6Pvqm

OFT DC recommendations ‘could have gone further,’ says NAPF Pension funds have criticised the Office of Fair Trading’s September report on defined contribution, saying some of its recommendations did not go far enough.

The National Association of Pension Funds last month issued its consultation response to the OFT. It warned that the watchdog’s shortand medium-term recommendations on governance and charges could fail to deliver the right outcome for savers.

In particular, the NAPF said placing governance committees at provider level could lead to conflicts of interest, while a ban on active member discounts could penalise consumers whose employers had chosen to pay part of the charges for existing employees.

NAPF’s chief executive Joanne Segars said that, although she agreed with much of the report, the success of the watchdog’s short- and medium-term recommendations would depend on how they were implemented by the government and the industry.

“There are several barriers that need to be overcome before we can achieve the right outcomes – especially around governance.”

She said it was essential that the government and regulators bring in policies that ensure sustainable and good DC pension provision in the long term.

The OFT’s market study, published on 19 September, criticised the current DC pensions as complex and often poor value.

For more on this story, visit bit.ly/1fmHriW

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

bit.ly/HKe0J3

DWP to begin recruiting new TPR chair The Department for Work and Pensions said it would “shortly” start the search for a new chair for The Pensions Regulator. Michael O’Higgins, TPR’s current chair, will leave the post as he reaches the end of his term in December.

However, he has agreed to stay on for a further three months to help with the transition. bit.ly/19KRFBO

Number of over-80s set to double by 2037 The number of people aged 80 and over in the UK will double to 6 million by 2037, according to official population projections and the number of people aged 90 and over is expected to triple. The Office for National Statistics figures assumed mortality rates for women and men in their 80s will be worse than previously estimated. bit.ly/1axNuh7

For more on this story, visit bit.ly/1fmHriW

DWP consults on 0.75% DC pension charge cap The government has run a short consultation on capping annual charges imposed on members of workplace defined contribution schemes at 0.75% and banning active member discounts.

Three options were: a charge cap of 1% of funds under management; a lower charge cap of 0.75%; and a two-tier ‘comply or explain’ cap, to allow some employers to increase the cap to 1% if they provide The Pensions Regulator with their reasons for doing so. The cap would first be imposed on employers from April 2014 and be extended to cover all schemes by April 2015.

Pensions minister Steve Webb said: “We want to assess what can be done to improve transparency in pension scheme charges and to look at whether there is a role for the government in improving disclosure. We also want to test the case for capping default fund charges and have offered a range of structures to help tease out some of the various issues.”

But the National Association of Pension Funds pointed out charges have decreased over the past few years with average charges now standing at 0.51%. Some charges are more than 0.75% because the services and support on offer result in a higher return on investment, the association said. The consultation closed on 28 November 2013.

For more on this story, visit bit.ly/17QwI8K

December 2013 • THE ACTUARY www.theactuary.com

p17_Dec_ind_news_FINAL.indd 17

17

26/11/2013 11:35

On my agenda features@theactuary.com

During Harold Clarke’s actuarial career spanning four decades, he has experienced the introduction of computers into the actuarial world and helped to implement the Profession’s current Technical Actuarial Standards and Solvency II. Sherdin Omar and Areti Kalkani find out more

Can you give us an outline of your career experiences?

I started my career in 1973, at a firm

called Bacon & Woodrow (B&W). I qualified as an actuary in 1975 and became a partner in B&W in 1983. My work until 1986 was primarily in the pensions field, as actuarial consulting was then dominated by pensions.

However, as I worked closely with Sidney Benjamin – one of the most innovative actuaries at the forefront of the actuarial profession’s push into general insurance – I became more involved in life and general insurance. B&W had by then linked up with Milliman, who had a large property and casualty practice in the US. So in 1986, I took the opportunity to work in the US for a short stint, and on returning to the UK I focused on, and set up B&W’s general insurance work as a distinct practice.

During the 1990s, I concentrated my efforts in mergers and acquisitions work around Europe.

In 2000, B&W took the decision to de-merge the pensions and insurance arms, with the insurance arm going to Deloitte in 2001. I returned to the UK, and eventually parted company with Deloitte in 2005.

In 2006, I became a member of the Board for Actuarial Standards (BAS), a non-executive director for the Medical Defence Union (MDU) and I was also interim chief actuary of Codan (RSA’s Scandinavian subsidiary) helping them implement a Sarbanes Oxley-compliant reserving system in a short period, which was an interesting challenge. In January 2008, I became interim director of the BAS for six months and we laid down the structure of the TASs and a timetable for their implementation.

In June 2008, I moved to Ernst & Young to help introduce their new European actuarial services framework. Within a year, Solvency II work kicked off with a vengeance, so I refocused my attentions back to the UK. Incidentally, I set my retirement date to be six months after Solvency II went live, so I could wind down and hand over all my projects in a

timely fashion. I saw no reason to alter my retirement plans just because the legislation failed to meet its deadline.

My career has spanned the introduction of computers to the actuarial world. When I started work we used to collate and summarise the data manually. The factors for the calculations were produced on a mainframe computer, with programmes being produced on punched cards in Fortran.

One then reverted to a manual process to apply the factors to the data. I have always been interested in computing. I like to think this is in my history as my father met my mother at Bletchley Park during the Second World War. I worked hard to embed computing into all the actuarial processes I was involved in – for example, in pension fund valuations trying to replace the approximations required in applying factors to value benefits with cashflow projections so the benefit could be accurately represented at each duration.

In the late 1980s, when the desktop PC became the norm in offices, I tried to ensure everyone in my team had one on their desk as early as possible. There was a lot of innovation back then, and although I am not claiming that I did the actual developments, I created an environment and culture to allow my team to generate that innovation. We did a lot of interesting things without having a formal business case.

Today, I suspect we are too obsessed with getting a case put together to justify an investment. Sometimes we just need to take a few punts and hopefully one will work.

What do you like most about your job?

Communicating the results of my work to the person who is paying in such a way that they can clearly understand the information and take a decision based on it. Sidney Benjamin, who was a brilliant speaker and communicator, instilled in me the need to keep things simple and not to build over-complicated models.

What do you like about the profession?

It has a good reputation, but it needs to maintain it. It needs to get more involved in public affairs, which it has started to do. It needs to start thinking about how it becomes a champion of the consumer. There have been too many instances when it has produced solutions that are possibly not in the interest of the person on the other side of the process. The earliest example I can think of in my career is the way unit-linked contracts were designed in the 1970s,

FORMING A 18

THE ACTUARY • December 2013 www.theactuary.com

p18_20_dec_interview_clarke_FINAL.indd 18

SAM KESTEVEN

26/11/2013 11:38

FRAMEWORK December 2013 • THE ACTUARY www.theactuary.com

p18_20_dec_interview_clarke_FINAL.indd 19

19

26/11/2013 11:38

“Companies do not go bankrupt because of the mathematical models, even in banking. It was not the models, it was the culture to push things to the limit” which effectively concealed how much of the first two years’ premiums were going in commission.

It is a profession that has allowed me to have a wide and varied career, but you have to be willing to seize opportunities. It is too easy for people to sit back and just carry on doing the same thing day after day.

Setting up GIRO was excellent, as it provided a framework and forum for new ideas to be discussed in general insurance. However the event has morphed from being quite an altruistic forum into something that is too big and less focused on new ideas and thoughts and more on building individuals’ brands.

Did you always want to be an actuary?

Yes, amazingly! I was always interested in mathematics, and back in the late 1960s/early 1970s there were few jobs for mathematicians where you would be well remunerated.

For example, there were no quants and computers were only just starting to arrive in the business world.

What’s next for you?

I will continue my non-executive director role at the MDU, and hopefully I will pick up a couple of other similar roles. I may also look into a regulatory role, similar to my one at the BAS. Personally, I want to continue travelling, with my shortlist of places to visit being Myanmar, Bhutan and Northern India. I also intend to enrol into the second year of the film studies course I started in 2005 and maybe a course on art history. Further, I am contributing to two workshops at GIRO this year. The first, which I am leading, looks at practical issues PPOs raise and in particular how to invest for them in practice, and the second is on communicating to the board.

Do you think volunteering within the profession is important? Have you been involved?

Yes, it was how GIRO started. I was on the committee that ran the Student Society, now SIAS. I have also written a few papers. The advantage of volunteering is you meet a wide range of people, which helps expand your network and can be a source of new ideas. I also think you have a duty to give back to the profession by doing things that need to be done.

For example, at least mark as many exams as you have sat in the past. Otherwise the system grinds to a halt.

What challenges have you faced in your career?

Where do you see the profession is going?

The core defined benefit pension market is in decline, and life insurance is either in a state of stability or decline.

General insurance has grown rapidly but it could have plateaued now. So the actuaries need to explore new avenues, such as banking. I find it amazing that we are not more involved in building and controlling the banking models. I think the core skills that an actuary learns could be much more widely applied in the business world.

How about risk and capital models?

The risk function looks like it is here to stay as things are enshrined in legislation. Over the last five years, we have built models to calculate capital numbers, either by a ‘standard’ formula or a complicated model. I defy any actuary to prove that these complicated models materially add value to a company.

I have seen this issue often before. A lot of time and effort is spent on tweaking and perfecting a model.

However then we need to choose assumptions to make it useful. The judgments involved in choosing the assumptions completely outweigh the effect of the very minor refinements in the model. As a result we have a model that is unstable and too complicated to communicate properly. We need to remember we are in the business of trying to solve business problems and keep our models as simple as we can.

The main risk to a company is the CEO. It is the CEO who establishes the culture. If this is right, things will broadly go ok. Companies do not go bankrupt because of the mathematical models, even in banking. It was not the models, it was the culture to push things to the limit.

20

THE ACTUARY • December 2013 www.theactuary.com

p18_20_dec_interview_clarke_FINAL.indd 20

When building general insurance during the 1980s, the main issue was delivering difficult messages to some very senior and entrenched individuals. Over the years, I think we have helped to break down the barriers, and build trust. Most people tend to want to listen to what we have to say now. But we have a duty to explain things clearly and simply. The recipients need to understand what we are saying, and why it matters to them. They have other jobs and often think in very different ways to actuaries, so we need to put ourselves in their shoes in working out how to deliver our messages.

Over the years, every project I have worked on can broadly be boiled down to three sections: problems with data, data analysis, and communicating the results. Interestingly, the time spent on sorting out the data is still a significant portion of the job, we then spend too much time on the analysis and not enough on the communicating the results. Interestingly, this has not changed in the last 40 years.

Will Solvency II ever happen?

I think so, in some shape or form. It will be interesting to see if the political will is still there. If it had rolled out when it should have, then it would have set out a framework for the way in which capital could be calculated and other territories might have simply adopted it. But now countries are developing their own regimes. For example, both China and Singapore are progressing with systems that may be similar to Solvency II, but will, no doubt, be irritatingly different. a Sherdin Omar is a senior manager, insurance risk and actuarial services, at Ernst & Young. Areti Kalkani is an associate of insurance risk and actuarial services at Ernst & Young

SAM KESTEVEN

26/11/2013 11:38

Don’t let the numbers puzzle you. Fill in the gaps with ReMetrica.

Aon Benfield’s new Solvency II-focused version 6 of ReMetrica is the dynamic financial analysis tool of choice for the world’s leading actuaries.

ReMetrica continues to evolve to help reduce model size by up to 95% when tools are becoming increasingly complex in a Solvency II world. In addition, the latest version helps insurers more accurately model credit risk in today’s uncertain economic environment.

For a demo, visit: www.aonbenfield.com/remetrica_demo

aonbenfield.com/empower

Empower Results™

ACT.12.13.021.indd 25

26/11/2013 12:24

Enterprise Risk Management Strategy features@theactuary.com

All in the risk mix Modern risk strategy is hard, primarily because modern business is complex. Neil Cantle looks at the ‘Own Risk and Solvency Assessment’ that firms will be facing

When we look at the risk strategy our business is trying to deliver we see a forest of multiple factors which depend on other factors, which in turn interact with others. It is hard to ‘see the wood for the trees’ and make sense of it all.

Insurance companies are moving into a regulatory regime which requires an ‘Own Risk and Solvency Assessment’ (ORSA) exercise – a formal assessment of the risks they face, the resources available to meet them and clear communication about how they intend to manage them.

Strategy and risk The achievement of strategic goals is rarely certain. The reality of the business world means while results should be somewhat clustered around the planned outcome, they could be quite different to what was planned.

Some of these outcomes could be welcome out-performance, but many will not – risk represents the possibility of these unwelcome outcomes.

Risk management is an evolving discipline – historically more about hazard avoidance and mitigation but increasingly about insights into business performance and resilience. So how should one go about trying to unearth the uncertainties inherent in a modern insurance company and make sense of them?

The articulation of risk appetite is at the heart of exercises like ORSA, as it explains the types, and amounts, of uncertainties that you would like to be exposed to in pursuing your chosen strategy, those you will accept as necessary evils and those you would like to avoid. To operationalise the concept however,

22

it is necessary to understand how those uncertainties arise and assign operational parameters to help the organisation know the boundaries of day-to-day activity. But this is where things get hard – surely there could be a million ways in which profit might not be the figure we had planned?

Complex phenomena have been studied by a number of disciplines outside of the business world and it turns out that the insights from these are helpful for us here. As described in Allan, Cantle, et. al. (2012), “For complex systems, like an economy or financial organisations, a new paradigm or philosophy is required to understand how the constituent parts interact to create behaviours not predictable from the ‘sum of the parts’. Systems theory provides a more robust conceptual framework which views risk as an emerging property arising from the complex and adaptive interactions which occur within companies, sectors and economies.”

People traditionally focus a lot of energy on the visible part of risk and uncertainty – the part above the water in the image (right). They identify undesirable outcomes ‘crises’ and seek to identify their ‘causes’ – the events which lead to them. The information collected at this level is often categorised and stored in databases in the belief that it can help inform predictions of future trends – a promise it generally fails to deliver on. This failure arises because we are still a way from understanding ‘why’ these events took place – we simply know that they did and what some of the potential consequences might be. We need to look deeper, and consider the part of the iceberg

underneath the water in the image below. We have to seek out the patterns that will help us to make sense of how the events might be related in some way, and ultimately seek an understanding of the underlying mechanism which produces these. People are generally afraid to venture ‘beneath the water’ as they believe that the complex outcomes we see are surely the result of impenetrably complex dynamics and that describing them at this level would be impossible or prohibitively complex to be useful.

Some important misconceptions and myths about the behaviours of complex systems mean that some of the techniques typically used can actually be dangerously misleading.

The first error is thinking that a complex systems problem is best solved by reducing it to a series of simpler parts. The outcomes of complex systems are emergent, arising from the interactions of many underlying parts, and the understanding of these interactions is crucial to understanding the system overall. So, unlike merely complicated systems, complex ones cannot be reduced

Symptoms

Causes

Sense-making

Understanding

THE ACTUARY • December 2013 www.theactuary.com

p22_24_dec_cantile_FINAL.indd 22

26/11/2013 11:39

and must be studied holistically first. The second major error is ignoring adaptation and basing statistical analyses on historical behaviours which are unlikely to repeat. We therefore need a way to understand what is actually going on before we try to simplify our information or models.

People at the heart There is an inescapable link between people and risk, not least because risk itself is a social construct. Companies are essentially groups of people, all trying to follow processes and procedures to achieve the particular goals of their organisation, introducing myriad complexities as they go about their work. But people are not just passive parts of the system.

They are often actively trying to anticipate outcomes and influence them, creating feedback and non-linearities. A lack of complete information and understanding means that human interventions nearly always have unintended consequences.

In trying to simplify the risk problems we face we tend to make assumptions about the

behaviours of others. In particular it is often assumed that everyone is behaving rationally and that their behaviours are consistent over time. Neither of these things tend to be true.

People also suffer a number of further cognitive shortcomings when we look at their role in risk assessment. People rely on judgmental heuristics (which are influenced by recent experience) and are fundamentally poor at assessing probability (Fenton and Neil (2012) gives a series of good examples of how people get this wrong) and yet we consistently rely upon expert opinions in our risk management activity – even models calibrated ‘factually’ with historical data are relying upon an expert’s opinion that such a trend will continue into the future.

Another big challenge is that stable environments naturally select resources with skills optimised for that environment, reducing future flexibility. This process of specialisation and optimisation forms part of an adaptive cycle (Holling and Gunderson (2002)) – as a company becomes increasingly

optimised and forgoes resources which assist flexibility it becomes increasingly fragile and exposed to changes in the environment. In areas such as ecology it has increasingly been accepted that resilience is a far more sensible target than optimisation when you are dealing with complex systems, but it does require short-term inefficiency by investing in resources which preserve flexibility.

Culture, or rather organisational behaviour, plays a crucial role in risk management too.

The prevailing behavioural environment can have profound impacts on the way in which risks arise and how they are identified, assessed and managed. In particular, there is no single ‘mood’ or culture at any point in time, but rather a dynamic and evolving blend of four risk attitudes as described in Ingram and Thompson (2011): ● Pragmatists who believe that the world is uncertain and unpredictable ● Conservators whose world belief is of peril and high risk ● Maximisers who see the world as low risk and fundamentally self-correcting

Crisis

Events

Patterns

System Structure

December 2013 • THE ACTUARY 23 www.theactuary.com

p22_24_dec_cantile_FINAL.indd 23

26/11/2013 11:40

ERM Strategy

NEIL CANTLE

is a principal working in Milliman’s London office

features@theactuary.com

real world we are nearly always faced with large gaps in our data relating to any but the most frequent observations, so a cognitive method for getting our first understanding of the system is invaluable.

Cognitive mapping

Assessing complex risks

In your head you form a view of the world that is helpful in making sense of the complexities around you.

It is possible to largely recover these images by reformatting narratives about particular topics as cognitive maps. Each node on the map represents a ‘concept’ mentioned in the narrative and the links between nodes represent the connections that you make between these concepts. So, for example, the sentence ‘increasing life spans is causing a strain on retirement income’ could be represented by the linked nodes ‘increasing life spans’ and ‘strain on retirement income’. Such maps can contain hundreds of nodes but the structure of the map lends itself to rigorous analysis which can identify the most connected parts of the narrative (immediately or more globally). These nodes which most often lead to such important concepts can also enable the identification of biases from the respondents and missing elements of the narrative.

Narratives from multiple sources can be combined into a single coherent view of the problem. ● Managers whose world is risky, but not too

risky for firms that are guided properly.

We therefore need to understand which blend of risk attitudes we have at any point in time and the drivers leading them to change.

It is also important to note the overall culture, or that of subgroups, is an emergent property of the group and is therefore different to how someone might behave on their own. It is important not to ‘judge’ culture against some perceived perfection, but to understand the interaction between it and risk management activity.

Harnessing expert input So, people are at the heart of generating complexity and the failure to understand its meaning for risk. All is not lost, however – there is a range of techniques that can be used to make sense of these things.

We have seen that people are not necessarily the best source of information about risk – but they are often the only source of information. This is particularly the case

24

where events are rare or where emerging trends can be imagined to a new conclusion that has not been seen before – historical data will have little or nothing to add to the analysis of such situations and yet these are precisely the ones that most risk managers are faced with on a daily basis. It is possible to recover the collective insights of your experts using cognitive techniques, like cognitive mapping (Eden, 1988) (see above for a brief overview of cognitive mapping), to distil a robust and meaningful insight into what is happening. The use of cognitive maps to capture and analyse the narrative of your experts provides a rigorous way to form a coherent single story. From this you can develop a deep understanding of the most important dynamics of your risk profile to feed into a wide range of risk management activity, including the ORSA. Forming an understanding of the underlying drivers of uncertainty is crucial if we are to make any kind of progress in assessing the risks that can emerge. In the

There are now a number of additional factors we can consider in trying to assess and understand our risks. First we can attempt to build models which replicate the interesting dynamics that our experts have explained.

The benefits of using a cognitive approach before proceeding to modelling are described, for example, in Cantle, Charmaille et al (2012) “financial stresses are serious, but the political and reputational aspects of [the organisation’s] critical success factors mean that failure could very well come from other directions…

Actuarial models are very powerful… however, for reverse stress testing the challenge is to know which scenarios should be considered… The model simply cannot tell us which scenarios to look at. We must decide which scenarios to look at ourselves and then use the model to evaluate them.”

Assuming we have sufficient data, statistical models may well be capable of mimicking the outcomes but they have little to say about the drivers of such outcomes. As described in Fenton and Neil (2012), it is far more productive to consider causal models, such as Bayesian Networks, which “help us to make sense of how risks emerge, are connected, and how we might represent our control and mitigation of them.”

In particular we would like to be consistent in the way that we handle uncertainty when we study our risks, meaning that we have to find a way to incorporate subjective judgments about uncertainty. We also need to be able to revise our views when new evidence is observed.

The Bayesian approach permits a subjective view of uncertainty which enables us to make much better progress with our risk studies than the classic frequentist approach that typical statistics requires.

Processes like ORSA demand rigour in areas where risk management is traditionally weak, such as capturing judgment and expert knowledge about things the data doesn’t know.

Framing risk using insights from other sciences which embrace complexity, culture and psychology brings the opportunity to add that rigour and also improve the resulting insights obtained. a A full list of references is available with the online version of this article at www.theactuary.com

THE ACTUARY • December 2013 www.theactuary.com

p22_24_dec_cantile_FINAL.indd 24

26/11/2013 11:40

Finance and investment Repression features@theactuary.com

BLIGHTS AND BOONS OF FINANCIAL REPRESSION Can government interference in the financial markets aid or damage a country? Paul Fulcher and the financial repression working party share their insights

CHRIS DUNN

p25_27_dec_financial_repression_FINAL.indd 25

December 2013 • THE ACTUARY 25 www.theactuary.com

26/11/2013 11:40

Finance and investment Repression features@theactuary.com

premium to issuers for looking after the purchasing power of their money.

Chart 1: UK pension fund asset allocation 1962 -2009

Is financial repression a natural consequence of the financial crisis?

100% 90% 80% 70% 60% 50% 40% 30% 20% 10%

Cash

Index-linked gilts

Overseas equities

Overseas fixed income

Real estates

UK equities

UK Fixed Income

Alternatives

0% 1962

1967

1972

1977

1982

1987

1992

1997

2002

2007

Source: UBS pension fund indicators 2012

Financial repression is an emotive term that stems from different political opinions on what is a legitimate interference of the state in the financial markets, so even within the academic literature there are differences about what it means.

One of the best general descriptions can be found in Shaw and McKinnon (1973). They define it as any distortion of the domestic capital markets by the government that channels funds to themselves which, in a deregulated market, would go elsewhere.

Reinhart and Sbancia (2011) give a more specific list of items that might constitute the government distorting markets: i) Explicit or indirect caps or ceilings on interest rates ii) The creation and maintenance of a captive domestic audience, for example ‘prudential’ regulatory measures forcing institutions to hold government debt iii) Supporting measures like the direct ownership of banks.

Is financial repression taking place today?

Some would argue the existence of negative yields on index-linked bonds is evidence that some form of financial repression must be

26

taking place. Why would anyone voluntarily invest in a product that is guaranteed to lose them money in real terms?

Have measures that were introduced under the label of ‘prudent regulation’ forced institutions into holding assets a rational investor with a similarly long-term horizon would not buy? The presumption that government debt is risk-free in comparison to private sector securities is also a factor in artificially lowering funding rates for governments.

Have government bonds now become a ‘Giffin good’? Do regulations force banks, insurers, and pension funds to hold more bonds as their price rises? Does this explain why investors perceive there to be a shortage even though, in reality, there are more bonds than before the start of the financial crisis after allowing for quantitative easing?

The counter argument is that this is just about global demand and supply. In the absence of good investment opportunities and with a global glut of savers it is inevitable that rates of return will be low, if not negative.

Right now, having some certainty that you will be able to consume in the future is more valuable than consuming today. Purchasers of index-linked bonds are happy to pay a

The normal argument against financial repression is that forcing investors to hold government bonds means they are not able to invest in equities or other assets that would give industry the capital to invest and boost the economy. However, Richard Koo (2011) outlines the concept of a balance sheet recession and why in these circumstances governments need to take the debt onto their balance sheet in order to kickstart the economy.

If a bubble – let’s say in real estate – builds up, then subsequently bursts, the balance sheets of the companies and households show higher liabilities than assets, since the bubble has burst and their assets are worth far less than before. However, since recognising this could lead to the economic ruin of the borrowers and they are still able to service the loans they have taken out, the solution is to pretend and carry on, as it is not in either the banks’ or the borrowers’ interest to accept the economic ruin. In such a situation, monetary policy will not be effective in stimulating economic growth since all parties will try and reduce debt even if this is at the expense of future profits. Regardless of the very low rates of interest, nobody wants to borrow any more money. As a result, governments step in with fiscal policy. This is described as the government becoming the borrower of last resort.

The expansion of government debt seen since 2008 is the direct result of bringing much of the private sector’s debt onto the government’s balance sheet in this way.

However, this policy does have consequences.

Savers may benefit if the policy prevents a crash in asset values but will suffer from lower rates of return on their savings. Borrowers will benefit from the low rates of interest.

What does history tell us about financial repression?

Reinhart and Sbrancia (2011) identified how important financial repression was in allowing governments across the world to shrink the level of government debt (as a percentage of GDP) in the three decades after the Second World War.

THE ACTUARY • December 2013 www.theactuary.com

p25_27_dec_financial_repression_FINAL.indd 26

26/11/2013 11:40

“While the measures introduced are aimed at bringing the economy back on track again, the redistribution of wealth likely to follow appears to be a by-product rather than a deliberate goal” Table 1 shows the periods of negative real interest rates for different countries, how much the savings for the state have been as a % of GDP per annum and the percentage of years within the period savers received negative real yields.

In the UK, for example, between 1945 and 1980 the equivalent of on average 3.6% of GDP p.a. was the equivalent of a net tax on savers for keeping their money in government bonds. The negative real interest rates that governments were able to pay in this period kept tax rates lower that they would otherwise have been and was arguably one of the stimulants to the economic growth that was seen in this period.

Are insurers and pension funds impacted by financial repression?

The working party attempted at a very high level to overlay some of the key regulatory developments with a history of the investment patterns of UK institutions. In both cases there have been changes that may have influenced insurers and pension funds to increase the proportion of assets invested into government debt.

Chart 1 (p28) shows that the net allocation of defined benefit pension funds to equities has been declining since the beginning of the 1990s, while the exposure of pension funds to fixed income securities (including those

Table 1: Periods of negative real interest rates for different countries

Country

Period

% GDP pa

% years with negative yield

Argentina

1944-1974

3.2

97

Australia

1945-1968, 1971, 1978

5.1

48

Belgium

1945-1974

2.5

48

India

1949-1980

1.5

53

Ireland

1965-1990

2.0

62

Italy

1945-1970

5.3

41

South Africa

1945-1974

1.2

43

Sweden

1945-1965, 1984-1990

0.9

36

United Kingdom

1945-1980

3.6

48

United States

1945-1980

3.2

25

Source: The return of financial repression, Reinhart

Table 2: Factors influencing financial repression 1995

Introduction of the Minimum Funding Requirement

1997

Pension obligations became LPI indexed

1997

Tax credits on share dividends were removed

2000-3

Dot com bubble burst

2001

The accounting standard FRS17 was introduced

2003

Pension obligations were recognised as debt-on-employer

2005

A pension protection fund and a pension regulator were introduced

2008

Financial crisis hit

2009-12

Quantitative easing

issued by UK government) has been steadily increasing. Table 2 shows the events that have played a part in changing the nature of pension promises and the way in which they impact scheme sponsors.

Examining the allocation to equities within the with-profits funds of some of the UK’s large life insurers shows that the amounts held in government bonds have increased since the beginning of the century. The bursting of the dotcom bubble and the introduction of the realistic balance sheet could be argued to have had an influence in driving this.

A different century Although financial repression may have been a factor in bringing down government debt-to-GDP levels in the post-war period, it isn’t clear the same thing is happening in the UK today.

Whilst the measures introduced are aimed at bringing the economy back on track again, the redistribution of wealth that is likely to follow from these measures appears to be a by-product rather than a deliberate goal.

The working party is continuing its work on this subject and would welcome the input of other actuaries who have an interest in this area. a All references can be found in the online version of this article, at www.theactuary.com The Institute and Faculty of Actuaries working party on financial repression was set up at the end of 2012 to investigate what financial repression is, the extent to which it is taking place and what impact it might have.

Over the course of the last year its deliberations have moved on to a broader set of discussions on the winners and losers from government policies to deal with the financial crisis.

Government policies that have played a part in keeping real interest rates low (at the time of writing, yields are negative on index-linked gilts with durations of less than 15 years and effectively zero at durations longer than this) have also transferred wealth between different groups in society. Primarily the transfer has been from savers to debtors, but in the political space this is played out as a transfer from old to young and between regions. Others will need to reach judgments about the fairness of these wealth transfers and the extent to which the broader public is aware of them.

Source: The Financial Repression Working Party

December 2013 • THE ACTUARY 27 www.theactuary.com

p25_27_dec_financial_repression_FINAL.indd 27

26/11/2013 11:40

Soft skills Communication features@theactuary.com

BENEFITS OF DILIGENT DOCUMENTATION

28

THE ACTUARY • December 2013 www.theactuary.com

p28_30_dec_documentation_FINAL.indd 28

26/11/2013 11:57

It is increasingly important to be able to articulate accurately, adequately and appropriately without confounding or misleading the audience, says Sonal Shah In last month’s edition of The Actuary, both the magazine’s editor and the President of the Institute and Faculty of Actuaries drew attention to the importance of soft skills, including communication skills.

Unfortunately, actuaries suffer from an uncomplimentary stereotype of being poor communicators. We would do well to cultivate good communication skills, including for that key product – documentation. This can take a number of forms, with those most relevant to actuarial work being: ● Recording the application of knowledge, such as methodologies and assumptions; ● Recording of events and processes that might be required as evidence, such as for regulatory purposes.

Most of us have encountered frustratingly poor documentation due to inaccuracies, incompleteness, irrelevance, ambiguity, disproportion and obsolescence. Poor actuarial documentation is the consequence for a number of factors, including the resource-intensive nature of creating and maintaining adequate documentation, and the fact that many actuaries are not keen on writing.

Solvency II has put an unprecedented spotlight on documentation in the insurance industry, and this has had consequences on the work done by actuaries. While some view documentation as a regulatory burden or formality, there are concrete benefits to be gained from good quality records.

This article focuses on some key tangible benefits of sound documentation, with supporting excerpts taken from a couple of documents recently issued by the European Insurance and Occupational Pensions Authority (EIOPA): Guidelines on PreApplication of Internal Models, and EIOPA Final Report on Public Consultations No. 13/011 on the Proposal for Guidelines on the Preapplication for Internal Models. The excerpts relate to the making of assumptions and application of expert judgment, as these are prevalent and significant in all fields of actuarial work.

A better understanding of the importance of documentation may lead to changing attitudes towards this – often neglected and disliked – area of actuarial work. Besides meeting regulatory requirements, investing resources

ALAMY

p28_30_dec_documentation_FINAL.indd 29

and utilising suitably skilled actuaries in amassing a functional suite of documents can be very useful in a number of areas, notably: sharing knowledge, promoting clarity, encouraging enhancements, facilitating review, and demonstrating competence.

Sharing knowledge Documents are valuable sources of reference for sharing knowledge with both internal and external stakeholders, such as management, new staff, colleagues in different departments, regulators, rating agencies and independent validators. Relevant documentation supports the induction and training of new joiners in a team, and user-friendly documentation provided by developers and vendors of software supports clients’ understanding of the products, thus reducing the demand for resource-intensive support.

There may be instances where specific information is known to only one or a few people in a company; for example, rationale on values to be assigned to certain parameters.

There is the risk of the loss of such important information upon the departure of such staff.

Detailed documentation of this knowledge would greatly expedite familiarity. This is vital for developers of software products, which can take several months (or years) to create. If there is no thorough documentation of the evolution of the software, it can be extremely burdensome to recreate, understand and test specific parts of the original program.

When a particular process is to be followed in a consistent manner across a company, diligent documentation considerably helps this objective: “Through the pre-application process, national competent authorities should form a view on how the insurance or reinsurance undertaking documents the assumption setting process, and in particular the use of expert judgment, in such a manner that the process is transparent.” (Paragraph 1.61 of the EIOPA document, Guidelines on Pre-Application of Internal Models.)

Promoting clarity Documentation promotes lucidity and transparency, as it compels articulation of ideas that may otherwise remain abstract.

Ambiguous, wishy-washy interpretations of concepts such as risk appetite and materiality get refined and defined when required to be

December 2013 • THE ACTUARY 29 www.theactuary.com

26/11/2013 11:57

Soft skills Communication

SONAL SHAH is an

actuary currently working as an independent consultant specialising in Solvency II documentation

features@theactuary.com

“Making assumptions and the application of judgment are central to actuarial work. Documenting these encourages clearer thinking” committed to paper, enabling a consistent grasp of such concepts.

Making assumptions and the application of judgment are central to actuarial work.

Documenting these encourages care and clearer thinking. Creating comprehensive documentation encourages examination of the ‘big picture’ and facilitates clarity around the thought process: “EIOPA considers […] documentation and validation as crucial for undertakings as expert judgment is generally most important in the frequent case that there is a lack of data and the assumption setting process involves a large degree of subjectivity.

It is in their own interest to ensure that assumptions are set as a result of a validated and documented process.” (Paragraph 3.46 of the EIOPA document, EIOPA Final Report on Public Consultations No. 13/011 on the Proposal for Guidelines on the Pre-application for Internal Models.)

Where quantification of risk and uncertainty requires a significant degree of ‘guesstimation’, this can be made clear by documenting the appropriate caveats and constraints, along with the rationale for the selections made.

When faced with an instance whereby articulating is proving exceptionally challenging, it is beneficial to think about why this may be the case instead of perceiving it as a nuisance. It may be that the problem stems not from a lack of writing skills but from lack of clarity in understanding and interpretation.

Encouraging enhancements A situation where something is tricky to explain and vaguely expressed, provides the opportunity to question what needs to change in the underlying work, encouraging rethinking and enhancing approaches.

Good documentation provides a clear trail of the various steps followed, thus making it easy to identify areas needing improvements.

Documenting concurrently with the progression of a project helps to expose problematic areas, providing timely feedback to remedy the problems.

Consider as an example planning the contents of a capital modelling methodology document. Integral to this process is a discussion of the key assumptions feeding into

30

the model, and how the validity and sensitivity of these assumptions have been ascertained.

What may have been an assumption employed without much attention having been paid to it now gets its due consideration and investigation. Documenting the process gives rise to the opportunity to test it so as to better understand its impact and sensitivity, perhaps leading to enhancing it, or even replacing it with a more suitable alternative.

There is a clear benefit in having a better appreciation of key drivers of the model: “National competent authorities should form a view on how the insurance or reinsurance undertaking establishes a formal and documented feedback process between the providers and the users of material expert judgment and of the resulting assumptions.”

(Paragraph 1.59 of the EIOPA document, Guidelines on Pre-Application of Internal Models.)

Facilitating review Good documentation appreciably facilitates review of work carried out, especially when the subject is complex or cannot be easily followed, such as in spreadsheets or meeting minutes. Often, actuarial work requires multi-faceted processes. These are used to test different hypotheses by making use of a number of assumptions and judgments to simulate possible real-world outcomes so as to quantify numerous areas of uncertainty.

Well structured, methodical documentation allows a reviewer to follow the stages of the work and reasoning applied at each stage, including understanding the limitations of the approach adopted relative to alternative approaches. “National competent authorities should form a view on how the insurance or reinsurance undertaking makes sure that users of material assumptions receive clear and comprehensive written information about those assumptions.” (Paragraph 1.64 of the EIOPA document, Guidelines on Pre-Application of Internal Models.)

A coordinated approach to documentation both expedites and harmonises review tasks, especially for reviewers such as senior actuaries, regulators and project managers looking at a number of such documents.

Consistency of documentation amongst

different entities, lines of business, and so on, facilitates the review of the entire suite of documents. Omissions and contradictions of details in one document compared to another can be more easily recognised when documents are standardised. Comprehensive documentation also contributes to an audit trail, facilitating reviews by both internal and external auditors.

Demonstrating competence One key purpose of some documents is to demonstrate proficiency. Examples of such documentation include project proposal packs, magazine articles, web-based marketing literature and regulatory reports.

Often, the documentation sent to stakeholders such as clients, regulators, investors and rating agencies forms the basis for the impression that is formed about both the author’s and firm’s capabilities.

Well-structured, professional documents with clear and relevant content inspire confidence and contribute towards demonstrating competency. They can serve to be compelling evidence of the attributes of processes and abilities of the people involved in them and even boost the perceived quality of the processes and people.

This is not to say that the lack of sufficient documentation is a consequence of a deficiency in processes and people; however, without adequate documentation, assessing competency becomes a far more onerous task. Once a poor impression has been created owing to sub-standard documentation that compromises confidence, it can be quite a task to convince someone otherwise.

Putting in focused effort to amend and enhance the inadequate documents not only helps to demonstrate competency but also carries the associated benefits already discussed in this article.

In conclusion, the case for clear, concise yet comprehensive communication – including documentation – can perhaps be succinctly summed up by quoting Albert Einstein, who is alleged to have said: “If you can’t explain it simply, you don’t understand it well enough.” a

THE ACTUARY • December 2013 www.theactuary.com

p28_30_dec_documentation_FINAL.indd 30

26/11/2013 11:57

Environment The sun features@theactuary.com

A force to be

reckoned with

As John Allen (Jack) Eddy, an astronomer,

said: “The sun is neither constant nor entirely beneficent. As a variable, magnetic star, it is ever-changing in many ways: most often through violent explosions and eruptions of colossal scale. The glowing, gaseous surface that appears so perfectly white and still from far away is in reality a roaring, roiling arena of continual conflict and eruption.”

The climate is constantly evolving. Some change is undoubtedly caused by mankind, but much is caused by natural forces. In 2008, the Intergovernmental Panel on Climate Change (IPCC) predicted dire consequences for Earth due to increasing atmospheric carbon dioxide.

Its latest (2013) report continues to advocate this, even though the panel cannot satisfactorily explain the pause in warming since 1997 and the likely cooling from 2005. The IPCC suggests this pause is caused by natural variations. To understand these, it is necessary to understand solar activities and its cycles.

Solar activities The sun goes through a number of cycles. The primary sunspot or magnetic storm cycle

normally lasts around 11 years. These cycles have been numbered since 1755. Solar cycles commence with little or no magnetic storm activity. The magnetic storms gradually increase in number and intensity until the peak of the cycle when the sun’s magnetic north and south poles swap hemispheres and then the magnetic storm activity slowly declines back to zero.

The current solar cycle is number 24, which commenced in December 2008. To date it has had exceptionally weak magnetic storm activity. This is much lower than solar cycle 23 (1996-2008), which was the longest cycle since solar cycle 5 (1798-1810) and the weakest since solar cycle 20 (1964-1976). Solar cycle 5

The sun plays a vital role in climate change.

Brent Walker explains how solar activities can affect the risks associated with climate change and the implications for actuaries

December 2013 • THE ACTUARY www.theactuary.com

p31_33_dec_solar_FINAL.indd 31

31

26/11/2013 11:41

Environment The sun features@theactuary.com

Earthquake and volcano risks Low solar activities have implications for climate change. It is known that large-scale seismic events occur more frequently during periods of low solar magnetic storm activity.

During the last millennium, these periods of higher seismicity coincided with ‘little ice-ages’. As these seismic events nearly always occur along tectonic plate boundaries, their incidence rate is indicative of the level of the movement (with lags) of tectonic plates. One would therefore expect a correspondingly higher level of volcanic activity. Unfortunately, world-wide volcanic activity records are too poor to prove that the level of volcanic activity has changed.

Large-scale volcanic activity does have a direct effect on the climate. For example, two very large eruptions during the Dalton Minimum, one in 1809 and Mount Tambora in 1815, were the cause of the coldest decade in several hundred years. Similarly, large-scale volcanic activity occurred in the middle of the 17th century during the Maunder Minimum, which also coincided with a period of very low solar magnetic activity. During the earlier Wolf Grand Minimum, the Samalas volcano erupted on the Indonesian island of Lombok in 1257.

This eruption was at least twice as big as the Mount Tambora eruption and is said to have precipitated the first mini ice-age of the second millennium, which became known as the “dark ages”. The global temperature drop caused by Mount Pinatubo’s eruption in 1991 is well documented in IPCC climate records.

SC5-SC24 Layman’s count comparison: The progression of solar cycle 24 compared to solar cycle 5 after adjustment to similar observation technology where the current solar cycle 24 is visibly weaker. According to NASA, solar cycle 25 should commence at the end of this decade and is predicted to be even weaker than solar cycle 24

95 Sunspot monthly mean unsmoothed

occurred during the last grand minimum of solar activity known as Dalton Grand Minimum. It was the last of the climatic periods of the last millennium known as ‘little ice-ages’. The sun’s magnetic North Pole changed hemisphere in June 2012 and the South Pole changed hemisphere 15 months later but it is not unusual for the poles to reverse a year or more apart.

75 55 35 15 -5 1

11

21

31

41

51 Months

61

71

81

91

Source: Monthly magnetic field data from Wilcox Solar Observatory, Stanford University

weakening trend in the magnetic field strength of sunspots. Matt Penn and William Livingston of the National Solar Observatory predict that by the time Solar Cycle 25 arrives, magnetic fields on the sun will be so weak that few if any sunspots will be formed. Independent lines of research involving helioseismology and surface polar fields tend to support their conclusion”.

But many scientists disagree with Livingston and Penn. The alternate view is that this new grand minimum will be weaker than the Maunder Minimum and therefore much more like the Dalton Minimum. The conclusion actuaries should take from these opposing views is that a grand minimum has commenced and we should try to understand how it will affect many of the risks that we only have ever quantified when the sun’s magnetic

activity has been more robust. The graph above shows the sun’s monthly average magnetic field strength since solar cycle 21 along with the Solar Institute Data Centre’s monthly sunspot numbers.

The monthly magnetic field data is obtained from the Wilcox Solar Observatory at Stanford University.

Atmospheric temperatures It takes at least 100,000 years for the heat generated by the nuclear furnace at the core of the sun to reach its surface. Only 60% of the energy emitted by the sun that reaches Earth actually makes it to ground level. The rest is absorbed by the atmosphere or re-radiated back into space. Greenhouse gases, including carbon dioxide, water vapour and ozone play important roles in this re-radiation of the

Table 1: Oceans are heat sinks Earth’s water

Ratio of land surface at latitude

97.5% in oceans

North

South

2

1

Ice-age forthcoming?

My paper on The New Grand Minimum in May was provocative. There is no consensus among scientists as to whether the sun is returning to a grand minimum state, even though it is generally understood that all stars spend about 15% to 30% of their time in this state. NASA’s sun-climate report predicts: “Indeed, the sun could be on the threshold of a mini-Maunder event right now. Ongoing Solar Cycle 24 is the weakest in more than 50 years. Moreover, there is (controversial) evidence of a long-term

32

2.05% ice (90% in Antarctica)

30˚

61% of surface of Northern Hemisphere

40˚

10

1

81% surface of Southern Hemisphere

50˚

28

1

60˚

61% land

0% land

In terms of heat required to raise water temperature by 1% Increase ice temperature by 1˚ Melt ice at 0˚ Heat from 0˚to 100˚and turn to vapour

0.5 80 640

THE ACTUARY • December 2013 www.theactuary.com

p31_33_dec_solar_FINAL.indd 32

26/11/2013 11:41

BRENT WALKER is based in Australia

and is the past president of the International Association of Consulting Actuaries.

He is a Fellow of the Institute of Actuaries and Australian Actuaries Institute

100 90 80 70 60 50 40 30 20 10 0

Relative strength

250.00

Sunspots

200.00 150.00 100.00 50.00 0.00

1/05/1975 1/11/1976 1/05/1978 1/11/1979 1/05/1981 1/11/1982 1/05/1984 1/11/1985 1/05/1987 1/11/1988 1/05/1990 1/11/1991 1/05/1993 1/11/1994 1/05/1996 1/11/1997 1/05/1999 1/11/2000 1/05/2002 1/11/2003 1/05/2005 1/11/2006 1/05/2008 1/11/2009 1/05/2011 1/11/2012

Micro Telsa

Absolute strength of sun’s magnetic field

sun’s energy back into space just as they do in re-radiating energy from Earth.

The hydrological cycle is important in the transferring energy from the oceans to the atmosphere. For example, when water vapour turns to water droplets in the atmosphere it produces 540 times the heat it takes to heat water just one degree Celsius, and similarly vice versa when water is converted to water vapour. On the other hand, carbon dioxide does not transport heat from the Earth’s surface to the atmosphere, because it doesn’t have a liquid state. It freezes directly into dry ice at -78.5 degrees Celsius but the atmosphere seldom gets that cold except for the lower stratosphere at the poles during late winter and early spring. The amount of heat released by carbon dioxide when it turns into dry ice is about one quarter of the amount of heat released by the same weight of water vapour when it is turned into water. Dry ice never reaches the ground before it returns to carbon dioxide. So unlike snow, hail or rain, dry ice reabsorbs the energy that it provided to the atmosphere when it formed. Both dry ice clouds and water ice clouds have similar properties in that they reflect the sun’s rays back into space and reflect heat radiation from the Earth’s surface back to Earth.

The table (on page 32) is from the New Grand Minimum paper. It helps explain why grand minimums tend to affect the northern hemisphere more than the southern hemisphere. It also explains the role of the oceans in moderating climate change.

Both atmospheric water vapour and carbon

dioxide have the property of absorbing and re-radiating heat, whether the heat is going to or coming from the Earth. However, these properties work in different spectrums. Water vapour does this over a very wide range of the infra-red spectrum and carbon dioxide does it over a couple of tiny ranges of the infra-red spectrum that are not influenced by water vapour. Some scientists suggest that carbon dioxide may absorb and re-radiate heat over wider ranges if its atmospheric concentration is increased but so far this suggestion hasn’t been proven. Others suggest that as atmospheric carbon dioxide increases, it forces an increase in the concentration of water vapour in the air – but the forcing mechanism is unknown. These suggestions also seem unlikely as the much higher levels of atmospheric carbon dioxide that have occurred on various occasions in Earth’s multi-billion year history would have then caused runaway global warming from which the planet’s ecosystems could never have recovered. The Earth’s ecosystems have only evolved because nature mostly provides negative feedbacks.

Extreme weather risks The sun also has a top-down effect on atmospheric temperatures due to its highly variable output of ultra-violet (UV) spectrum photons. The total extreme ultra-violet output between solar cycle 22 and solar cycle 24 has reduced by some 60%. Almost all of the high energy photonic output of the sun is absorbed in the Earth’s upper atmosphere where it

provides the energy to form ozone and warm the top of the stratosphere to around 50 degrees Celsius above the temperature of the bottom of the stratosphere. However, the lower energy UVA and UVB range of photons provide a countering effect by destroying ozone.

In January 2013, NASA released details on how lower extreme UV emissions affect climatic conditions. It suggested that the jet streams are altered due to temperature changes in the polar stratosphere, because of variations in ozone production. It is these altered jet streams that affect the tracks of storms and, by implication, other weather systems.

Studies show that jet streams have generally become more erratic and are circulating further from the poles than was the case 15 years ago. Airline pilots confirm this. It is the reason why there are unusual hot and cold, wet and dry extremes occurring across the globe. We should expect much more of these extremes in the coming decades.

Going from here The incidences of natural risks change when the magnetic strength of solar cycles wax and wane. The sun is currently having the most magnetically weak cycle in 200 years and this is expected to be followed by an even weaker cycle through the 2020s and well into the 2030s. Historical records over the last 500 years give an indication of what risk changes can be expected to occur during these periods known as solar grand minimums. The actuarial profession should therefore be studying the historical links between the climate and decadal changes in solar magnetic storm activity to assist in natural risk assessments. The profession should also be seriously questioning the outcomes of unreliable climate models that have been produced by scientists who, by and large, do not have an actuary’s ability to see the bigger risk picture.

As quoted in NASA’s sun-climate report “Understanding the sun-climate connection requires a breadth of expertise in fields such as plasma physics, solar activity, atmospheric chemistry and fluid dynamics, energetic particle physics, and even terrestrial history.

No single researcher has the full range of knowledge required to solve the problem.”

This sounds broadly similar to the diverse skills one has to acquire to become an actuary. a

December 2013 • THE ACTUARY www.theactuary.com

p31_33_dec_solar_FINAL.indd 33

33

26/11/2013 11:41

International Pensions features@theactuary.com

Kieran Holmes and Laura Llewellyn-Jones offer an insight into a growing financial landscape

Burundi is a country in East Africa bordering Rwanda, Tanzania and the Democratic Republic of Congo. It is one of the poorest countries in the world, owing in part to its geography, past conflict, corruption and poor legal system. Most of the country does not have electricity and only around 2% of inhabitants hold bank accounts.

There is a mandatory pension scheme for formal sector employees – Institut National de Securité (INSS), which has been running for 50 years. This ‘formal sector’ consists of registered businesses paying tax and social security contributions. There is a separate scheme for the civil service, Office National des Pensions et Risques Professionels des Fonctionaires (ONPR), as well as a small number of private arrangements. The contribution rate into INSS is 10% of salary up to a ceiling, of which 4% is paid for by employees. There is an additional contribution of 3% required for Occupational Hazard benefits. The benefits provided are defined benefits, with a pension payable equivalent to 30% of final average salary for 15 years’ service on reaching age 60 and additional accrual for more service.

How does it work?

Low coverage rates are a massive problem. The majority of the population in Burundi is in the informal sector working in farming and not eligible. There are also limited locally available investment options for a social security scheme.

It is important to keep funds within the country, but with limited asset classes available, diversification is difficult. Real estate is often a significant part of the investment portfolio, often under political pressures towards various projects. Other options include government bonds and private equity. It is hard to maintain an accurate membership database, as simply writing to members is impractical.

Along with Rwanda, Burundi joined the East African Community (EAC) in 2007 as a precursor to joining the EAC common market in 2010. To integrate into the common market,

34

THE ACTUARY • December 2013 www.theactuary.com

p34_dec_burundi_FINAL.indd 34

Burundi needed to bring its tax system into line with the other partner states. Harmonisation was required in terms of tax base, tax rates and tax administration. Burundi enacted a Value Added Tax in 2009 and it set up the Office Burundais des Recettes (OBR) in the same year.

It became operational in 2010, recruiting its own staff, defining its structure and human resources policies, training staff and implementing IT systems, all along similar lines to the other EAC revenue authorities. During 2011 and 2012 a new income tax law, a tax procedures law and a VAT amendment law were drafted with IMF assistance and declared in 2013. The new laws significantly expanded Burundi’s tax base and corrected perceived deficiencies in the VAT and income tax laws.

How are pensions taxed?

The new income tax law reduced the top rate of tax to 30%, which is the same as the corporate tax rate, creating a structure that is neutral as regards choice of business entity, with corporates and sole traders being taxed at the same rate. It established a simplified employee taxation system, incorporating just two personal tax rates and an exempt amount. The definition of employment income contained in the new law is very comprehensive and includes all payments made to an employee in cash or in kind, specifically mentioning salaries, allowances, commissions, compensation and

Most of Burundi’s inhabitants are farmers

termination payments, employee family payments, pension payments, including those from qualified pension funds, gifts, and all other payments and benefits given in present, past or future employments.

The law appears to follow the classic exempt exempt taxed (EET) structure as both employer and employee deductions are exempted from tax, as is the income of qualified pension funds and social security agency of the state, with payments from pension funds included in the comprehensive definition of employment income. A late amendment, to the effect that pensions or retirement benefits paid by the state social security fund or the qualified pension fund to beneficiaries are exempt, had the effect of making the entire pension structure exempt, creating an easy means of tax avoidance rather than the intended tax deferral for retirement.

What are the challenges?

Clearly the generous exemption of pension and retirement benefits will need to be revisited at an early stage in order to remove this anomaly in the structure. But this is not the only, or even the main, challenge facing reformers. Many tax exemptions remain in other laws and these will need to be removed in order to streamline the tax system. Burundi’s level of tax exemptions remains unacceptably high in relation to its current tax take and the country’s tax incentives regime also needs to be reviewed.

Burundi has shown great political courage in the reforms attempted to date. Nonetheless, additional reforms are required to rationalise the tax system further, and to generate sufficient revenues to finance the correct levels of capital investment for development, especially at a time of uncertain sources of international development assistance. a Kieran Holmes is commissioner general of the Office Burundais des Recettes. Laura Llewellyn-Jones is actuarial consultant to Rwanda Social Security Board

ALAMY

26/11/2013 11:42

At the back Arts arts@theactuary.com

Arts With the weather getting colder, and Christmas approaching, there are plenty of shows and events to attract our hard-earned money. However, with a chill in the air there are certainly advantages of staying in. There are, of course, the standard ideas of a poker night, dinner party or game night. And here’s a bit more inspiration.

Murder mystery party The SIAS event in May had a murder mystery theme, and there are many of these games on the market. The concept is that guests arrive in character at a dinner party, where a murder occurs. The aim is to discover ‘whodunit’, and it’s a great way to experience theatre at home.

The night usually revolves around an event (commonly a dinner). Interaction is needed to come up with your conclusion of who is the murderer, so it is very social. It’s pretty easy to set up and doesn’t require much in the way of decoration. It’s also very satisfying to have guessed the murderer correctly at the end.

Race night This is like a night at the horses or dogs, but at home. You will need to purchase a DVD with pre-recorded races. Each player starts with a certain amount of money and bets on a certain number of races. There could be a form book and odds. It certainly brings out the analytical side. One thing I will guarantee is that on the final race you will be shouting at the screen to see whether that last-minute strategy paid off.

This is also a great idea for a work fundraising event – just turn the betting element into a tote and take a proportion for your chosen charity.

SEASONAL SHENANIGANS Alvin Kissoon brings the entertainment indoors this season and describes some bright ideas for having fun with friends at home

be, more competitive than it first appears and can result in tactical voting. But it’s ultimately great fun, and leads to lots of pudding.

There is a general perception that actuaries are not creative. However, when I’ve spoken to people they come up with amazingly unique and exciting ideas. A new one to me is ‘turn up in whatever fancy dress you want, the theme will be decided once we see what everyone’s wearing’.

I hope you all have a great Christmas and a happy New Year.

Karaoke or dance night This is certainly the night which benefits most (or least, depending on your opinion) from alcohol. I’m sure many of you have played the likes of SingStar or Dance Central on games consoles. On the plus side, it’s less embarrassing than throwing shapes at a club or jumping on stage. It’s certainly a good way to bring out the inner pop star.

Dessert wars The concept here is simple: everyone brings a dessert to a party. Everyone tries each of them and votes on the best. However, I have to give a warning here – this could, and is likely to

IMAGE SOURCE

p35_dec_arts_FINAL.indd 35

December 2013 • THE ACTUARY www.theactuary.com

35

26/11/2013 11:43

BOOK REVIEW

Solving Solvency: 100 Tips for Managing Insurance Capital in a Shifting Regulatory Landscape by Dr Matthew C Modisett PUBLISHER FE Steps ISBN-13: 978-0957681408 RRP £23.50

“The author is like an actuarial equivalent of Taleb, but unlike Taleb he has written something short and unrepetitive” The Latin verb solvere – to loosen or dissolve – has provided us with, via quite different etymological paths, the two distinct words solve and solvency. Dr Modisett is therefore using a form of etymological tautology as the title to his wide-ranging book on the financial management of insurance companies. But the title feels more like an oxymoron at the current time, when the tide of Solvency II seems to bring only complication and obfuscation.

The book is subtitled 100 Tips for Managing Insurance Capital in a Shifting Regulatory Landscape, and Dr Modisett divides his 100 tips into sections relating to, very broadly, capital management (and hopefully generation, providing the ‘virtuous spiral’ of his first tip); modelling; practical team and work management issues; and miscellaneous areas associated with insurance and financial risk analysis – for instance, such topics as uncertainty and market-consistency.

Reading through the book, I was struck both by the variety of subjects, and by the generally penetrating

36

THE ACTUARY • December 2013 www.theactuary.com

p36_dec_book_review_FINAL.indd 36

cogency Modisett brings to bear on them. I found Modisett’s “idiot’s guide” introductions to areas such as efficient markets, Black-Scholes option pricing, risk-free rates, aggregation and overlapping data some of the best I have ever read. Part of the attraction of the book, and of Modisett’s stance, is that he is unafraid to take strong positions on almost every aspect he discusses – he is like an actuarial equivalent of Taleb, but unlike Taleb he has written something short and unrepetitive.

Readers who specialise in some of the areas covered will no doubt enjoy disagreeing with him to some extent. More generalist readers will find it refreshing to read something written almost as if the topic were being properly broached for the first time. I found myself agreeing with the author on many things – for instance, the danger of setting assumptions via benchmarking as a substitute for thinking. Modisett is like a kindred spirit on the subject of uncertainty, something which much of the spurious quasi-science

surrounding Solvency II seems to downplay.

He writes: “Uncertainty is enormous. In particular, parameter uncertainty looms large over all capital models. Rather than deny the uncertainty, I advocate embracing it. By placing uncertainty in the shop window… we can save a lot of time not calculating to spurious accuracy… a large amount of time and money is spent chasing accuracy in some areas (for example reduced sampling error) but… this accuracy is completely overshadowed by other areas, in particular parameter uncertainty.”

Much of the book is about modelling, with particular reference to general principles of model design and practical aspects of best-practice modelling. Modisett is very much an advocate of small, comprehensible models, built with a modular structure. He uses the term ‘Deathstar models’ to refer to some of the monster systems and processes he has encountered in Solvency II programmes. The Deathstar is the ostensibly super-powerful planet-sized weapon of the Empire forces in Star Wars – but “its flaws and excess power made itself blow up, providing a planet-like explosion not quite intended by the designers”.

Other aspects of modelling crop up throughout.

For instance, in the section (‘tip’) on the BlackScholes model, Modisett notes: “I am expressing a general caveat about not relying too much on models… do not rely too heavily on (option-pricing) models simply because they match prices. If a modeller adds enough parameters, he can match any data. This does not mean it models reality. It only means more free parameters provides a tighter fit.

This is cheating. Adding enough parameters always gets a better fit. Adding parameters may not increase our understanding.”

What are the drawbacks of the book? Some will find the whole ethos of the book, organised around ‘tips’, rather patronising. The cartoons that appear at the start of each chapter are awful. Some of the sections seem a bit far from the author’s ‘core competencies’, and, although what he writes about (for instance) music royalties or the location of decision-makers in company structures is interesting, is he just straining to reach the magic number of 100? Such reservations aside, it is an extremely interesting and useful book. ● Matthew Edwards is senior consultant at

Towers Watson. He is a former editor of The Actuary

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

GETTY

26/11/2013 11:45

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

At the back Coffee break puzzles@theactuary.com

Puzzles

For a chance to win a £25 Amazon voucher, please email your crossword solution to: puzzles@theactuary.com by Monday 23 December

— RD SWO CROS IZE PR E PUZZL —

YULETIDE PUZZLES TO MULL OVER The asterisked clues all have a common characteristic. They are related to 4 ac which could be considered the first of the set. All these clues are ‘hidden anagram’ types, composed of a normal definition part and a string of additional words, within which is hidden an anagram of the solution. For instance, Tony Blair might be clued ‘Politician sought Barony lifestyle (4,5)’ The anagram in this case is (t Barony li) and the definition is politician. The solutions are the full names of the individuals involved – with the exception of 4ac only the surnames are to be entered in the grid. Other clues are normal. Happy Christmas.

Across *He had an eye for large deal with ITV (4,5) 4 *Central figure delivers justice sharply (5,6) 10, 17 Checked old soldier – Roosevelt? (6)

29

1

11

12 13

15

16 18

19

20

24

26

Idle King put on a platform – one laid in State either way (13) *Inter libero prying, believe it or not (6,6) Enthralling individuals wickedly immerse holy men (10) How Swansea Sunderland meeting goes to pieces? (7) King found at foot of cliff ? (7) *Drunk sailor at a corporate cricket premiere (8,4) Maurice escorted not so tanned from Italian city (7) *US Political advisor with terror leak victory (4,4) Surround by greenery in French hospital wing (7) *He gave museum curator illicit artwork (7,7)

© Nylfia

p37_dec_crossword_FINAL.indd 37

30 32

33

*She used Arden herbalist in unethical way (6,10) Echo other...other... other? (6) Anti-Imperialist aspiration kindled gentle mischief over countryside (6,7) Refreshment required when head of steam let off with no outcome (3) 2

1

34

35

*West country opener played by black orchestra music teacher (6, 11) *Former African leader present as Rwanda ambassador (5)

2

Starter motor cut off following worker protocol (9) 3 Material obtained from novel on Eileen (8) 4, 31 Incredible child holding pirate flag? (4,4) 5 *Superspy kisses Carrie as actress (5,6) 6 *He made many

Down 1

3

Move against wise master (6) 4

6

5

7

8

7

8

9

9

14 10

11

17 18 13

12

14

21

16

15

17

19

18

21

22

20

22

21

23

23 24

25

26

27

28

29

25

30 31

27

32

33

28 34

35

31

quick passes at firm lithe stranger misses (5,7-5) The Duke, for instance, holding cigars he smoked (3,5) Queen of Thebes identified from scrap US actuaries included (7) Stop head over heels on perimeter of wetland grass (4,5) Series of uniform trees felled in scenery (6,6) See 10 *Race driver to effect solo vehicle runaway win (5,9) Astounding idea – hotel warmed by fossil fuel (3,6) Acid derived from cyanide with Liebig first to concoct (8) Soft drinks had with alcohol and pork pies outside? (8) Regular practice to utilise limits (7) Antelope startled gal in India (6) *Carry hamburger to Philip Marlowe actor (8,6) See 4 dn

December 2013 • THE ACTUARY www.theactuary.com

37

26/11/2013 11:45

puzzles@theactuary.com

SOLUTIONS FOR NOVEMBER 2013 —

A MENSE PRIZ E PUZZL

—

R W D O A U A P I N H C Y H E

N A P S R

S E G I

Chess changes Mensa puzzle 567 A knight is positioned on the shaded square of this chessboard. Move the knight to each square once only, collecting letters to spell out four six-letter islands. What are they?

ANSWER: Cyprus, Penang, Rhodes and Hawaii.

Congratulations to this month’s winner – Judith Jung

Congratulations to this month’s winner – Ian Partlett of Police Mutual

S O U T H T T E B A R N E O I L B U C K O L T R E T R A N U M E N E A S W A D D I T E E E F F E N R O C M E R C E

A

C L L O R T T E S T S F O R T I A O F I T I E R A D I M N G H A M R L D I V I P I R E N G

A N T I S O C I A L L A N E

T N A P A E O N I A D C S I M O N C L A R K

© Nylfia

At the back Coffee break

T O R R P T O F U T N D U C T N E N D E R

It’s who you know that counts Crossword 04 In the actuarial world there are quite a few familiar names that you come across again and again.

Within this grid we have listed just five of them. The aim of this crossword is to identify and list them. Answers above

Quizzical quotes Mensa puzzle 568

Bridge puzzle 38 Oh dear! If only...

A quote by Eleanor Roosevelt has been split up into groups. Rearrange the groups to form the quote. What should it say?

How many times have you thought … if only I had done such and such.

Well, here is another one!

AKE ANM ENT FEE FER HOU IOR LIN NEC NOO ONS TYO URC WIT YOU

You, as South, end up in 7♠.

No problem if spades are 3-2 or the J♠ is singleton.

West leads Q♥. You win with the A♥ and start to draw trumps. Both follow small to the first lead but West discards on the second. It is now impossible to make the contract.

ANSWER: No one can make you feel inferior without your consent.

Secret symbols Mensa puzzle 569 Which symbol should replace the question mark to continue the sequence?

(a) Why? (b) What should you have done?

ANSWER: X. A sequence of X, £, &, $, # runs around the edge, spiralling inwards.

♠7 ♥A875 ♦AKQJ3 ♣A42

N W

E S

♠AKQ10986 ♥3 ♦42 ♣KQ6

ANSWERS Clock A

Clock B

On the clock Mensa puzzle 570 Clock A was correct at midnight. From that moment it began to lose two and a half minutes per hour. The clock stopped two hours ago showing clock B. The clock runs for less than 24 hours.

X

£

&

$

#

X

#

X

£

&

$

£

$

£

&

$

#

&

&

X

?

#

X

$

£

#

$

&

£

#

X

#

$

&

£

X

What is the correct time now?

ANSWER: 22:00 or 10pm.

38

THE ACTUARY • December 2013 www.theactuary.com

p38_dec_puzzles•gc_FINAL.indd 36

In this situation, you need to be in Dummy with 2 cards remaining to play through East’s J5 towards your Q10.

However, you need to reduce your trump length to that of East, otherwise you end up having to trump and finish in the wrong hand. To achieve this, you have to trump 3 hearts and have an entry to return to Dummy (4 entries).

You only have 3 entries. However, if only you had made use of the initial heart lead to trump a heart … just in case!

The order is as follows: Ruff a heart at trick 2. Draw 2 trumps, throwing a diamond. Play ♣KQ and then the A♣ (East must have 3 for this to work). Ruff a 3rd heart. Diamond to A♦, ruff a 4th heart. Diamond to K♦. Dummy’s last 2 cards are •QJ (but it wouldn’t matter if they were 2 low ones). East has ♠J5 and you have ♠Q10. You cover East’s trump and cash your winner – Grand Slam made.

Bridge puzzle provided by David Lampert

SHUTTERSTOCK

26/11/2013 13:21

At the back Student student@theactuary.com

Student Jessica Elkin recounts a tale of Christmas merriment and good cheer for all, minus one

BAH HUMBUG BARRY Barry is fuming. One of his clients’ bills has not been sent out. And what is more, the offending item has been put back on his desk as though to taunt him, his own signature staring him in the face. He had wanted all loose ends tied up before he goes on his Christmas leave, and now how is that going to happen?

Unfortunately, Barry can’t quite remember whom he gave the bill to for posting. He recalls the old adage he learnt at school about everybody thinking somebody would do something, anybody being able to do it, but nobody doing it.

On a better day, Barry might be thinking more productively. “What caused this failure in communication, and how can I personally change my behaviour to help prevent it happening again?” he might ask.

Not today. He sees all the merrymakers frolicking nearby, singing carols and laughing festively, and he frowns. Barry wants retribution.

“Barry!” Tim calls, holding out a cracker expectantly. Barry hesitates for a second.

The Christmas party starts in half an hour, and an image of the Grinch flashes before his eyes for a fleeting second. But what about the error, he thinks. Someone needs to pay.

“What exactly do you know about this?” he demands, holding the bill out. Tim frowns in confusion and looks down at it.

“What do you mean?”

“I mean,” Barry hisses, “This should have gone out yesterday. And now it’s too late for the post even this week. Someone sneaked

PHIL WRIGGLESWORTH

p39_DEC_student–KM_FINAL.indd 39

it onto my desk. Did you see someone lingering here furtively?”

Tim is temporarily lost for words, but then a smile springs up on his face. “Barry, come on! It’s Christmas! We’ll sort it out later! Chill out and have a drink.” This does not sit well with Barry but, seeing that Tim is a dead end, he stomps away.

Susan appears out of nowhere and puts a paper hat on his head. “Much better!” she crows gaily. “When are we heading to the venue?” Barry rips the hat from his head and crumples it in a moody hand.

“The bill,” he says. “What about the bill?”

Susan laughs. “We’ve paid it in advance!

Have you been on the eggnog already? You know, I’ve always thought it strange that the social calendar is busiest at the darkest and grimmest time of year. By rights we should be huddled indoors shivering like Dickensian orphans...”

Susan now seems to conjure another Christmas hat out of thin air to force on poor manhandled Barry’s head. He is getting desperate.

“John!” he cries out at a passing student.

Students are malleable, he thinks. “Nice hat!” John calls back without stopping.

“Jaunty angle. Like it very much. See you at the party!”

What is it with office Christmas parties, Barry thinks gloomily. They seem to occupy a strange social space somewhere between grown-up events where you talk about the weather and the FTSE 350, and university sports initiations where everyone competes at being the most offensive and someone leaves in an ambulance. The next day there is always the lingering feeling that someone should have been fired.

As Barry reflects on the madness of the adult working world, secretary Sonia stops by, munching on a mince pie. “Oh, good, you saw it,” she comments calmly, gesticulating at the slightly rumpled bill in his tightly clenched hand. “You gave that to me bundled up with those report papers for filing, but I figured it wasn’t meant to be in there. Hey, look! You didn’t open your Secret Santa present.”

She passes him a gift bag. Inside is a novelty stress ball moulded into an offensive shape. Barry pauses, then lifts it out for examination. Someone nearby whoops with appreciation, and a party popper is set off which showers his head with streamers.

“Hmmm,” Barry murmurs. “I could use one of these.” He looks at the stress ball in one hand and at the bill in the other, and the bill suddenly gives off a plaintive air.

Perhaps it is not the end of the world – after all, it is Christmas.

“Shall we go and get some drinks in?”

Enthusiastic agreement fills the air and he receives a pat on the back. Finally, Barry thinks, people are listening.

And from me …

All the best to you and yours this Christmas – here’s to leaving work and study stress behind for a well-earned break. Personally, I’m expecting to get the usual indecent Secret Santa gift.

It is tradition. a

December 2013 • THE ACTUARY 39 www.theactuary.com

26/11/2013 11:46

At the back Appointments

SPONSORED BY

peoplemoves@theactuary.com

Moves High Finance Group Specialist Actuarial Recruiters since 2002

Our Values: JLT Employee Benefits is delighted to announce the promotion of Hugh Nolan to chief actuary. Nolan will be responsible for driving professional actuarial standards at the company and will represent the company in its engagement with The Pensions Regulator, and trade bodies such as the Society of Pension Consultants and the Association of Consulting Actuaries.

$PMMBCPSBUJPO $PNQFUJUJWFOFTT &OUSFQSFOFVSJBM TQJSJU *OUFHSJUZ 1SBHNBUJTN

Russell Gill has taken up a new role at Nationwide Building Society as their head of pension risk management.

He was previously a senior risk manager and pension scheme trustee at Santander UK. Prior to that, Gill was a consultant at Punter Southall Ltd, where he qualified as a Fellow of the Faculty of Actuaries in 2009.

www.highfinancegroup.co.uk

JACOB PALMER Hymans Robertson, ERM.

INDIRECT function. Next week the answer will probably change.

longevity risk teams. I also spent three weeks in Oman working for a large bank.

How would your best friend describe you?

How do you relax away from the office?

Quiet and clever, with a dry sense of humour.

Watching TV with my wife, reading lots of good books, going mental at a concert or playing my guitar to loud music.

If you could go back in history, who would you like to meet? Being Jewish, mostly biblical

Employer and area of work

What motivates you? The desire to be the best at what I do and a deep-rooted fear of failure.

What would be your personal motto? You must believe in free will; there is no choice.

Name five dream guests to invite to your dinner party? Ozzy Osbourne, Tony Iommi, Geezer Butler and Bill Ward (heavy metal fans may have spotted a pattern). Also Michael McIntyre to provide a few laughs.

What’s your most ‘actuarial’ habit? Treating everything as if it’s a problem to be solved.

If you could learn one random skill, what would you learn? Knife-throwing.

Favourite Excel function?

Currently it is the

40

ACTUARY OF THE FUTURE

Alternative career choice?

Professional guitarist.

Tell us something unusual about yourself I have a long memory for names and faces.

I can freak my wife out by describing everyone around us on an aeroplane, weeks after we’ve flown.

Greatest risk you have ever taken? Moving from a stable role in the pensions team, to one split between the ERM, banking and

figures come to mind, in particular Moses and King David. I’d love to have met Randy Rhodes (a favourite guitarist) to get some tips to improve my playing.

What are the top three things you would like to achieve in your lifetime? Having a close, loving family; getting to the top of my profession and using my time on this planet to its full potential.

If you ruled the world, what would you change first? The perception of actuaries.

Do you know an actuary destined for greatness?

You can nominate an Actuary of the Future by emailing

aotf@theactuary.com

THE ACTUARY • December 2013 www.theactuary.com

p40_Dec_AOTF_peop•gc.indd 40

26/11/2013 11:46

www.theactuaryjobs.com

Appointments

A P PO I N TME N TS To advertise your vacancies in the magazine and online please contact: John Seaman +44 (0) 20 7880 8541 or john.seaman@redactive.co.uk

How do you make your career evergreen?

HFG’s Actuarial team have the market knowledge to help you take the next step in your career. Our team can offer you advice on current market opportunities, CV writing and interview techniques, preparing you for the future. For information on all of the current opportunities, please contact one of our consultants, or email actuarial@highfinancegroup.co.uk

Life Insurance Roles Risk Actuary

Valuation Systems Actuary,

£60k - £80k Basic, London

£65k - £85k Basic, London This niche insurer is looking for a Life Actuary to head up their valuation systems team. The role will be technically focused, managing several students and qualified Actuaries. Liaising daily with the senior stakeholders and making key decisions within the team is a crucial part of the role and you will benefit from working with experts in this area.

Sophia@highfinancegroup.co.uk

A multi-national Life Insurer is looking for a Qualified Actuary to help manage the Actuarial Risk Division. You will be involved in assisting the development of the risk framework, working closely with the CRO and the existing Risk team. Managing a team of both Actuarial and Risk professionals, this is a great chance to further your career within Risk.

Sophia@highfinancegroup.co.uk

Modelling Manager – Prophet

Supervisory Consultants £40k - £80k Basic, London

£85k - £80k Basic, South East + South West This large UK life insurer requires an experienced modelling manager to performance manage and develop a team of technical modellers. The role is open to qualified Actuaries and experienced Prophet modellers with strong management experience. If successful you will liaise with leaders across the Actuarial function, discussing process and model development and offering technical support. Jack@highfinancegroup.co.uk

A boutique advisory group with a focus on regulation is looking to seriously strengthen their Life Actuarial team. Ranging from students to qualified Actuaries, the hiring manager is seeking a whole range of backgrounds and skillsets from the life market. You will work closely with industry experts gaining a unique insight into the market.

Sophia@highfinancegroup.co.uk

With-Profits Actuary

Product Development Actuarial Analyst £ Competitive, South England

A newly created and ambitious team is looking for a consultative and market facing With–Profits Actuary to add expertise in this area. You will have extensive knowledge of large with-profits funds, stakeholder management experience and excellent communication skills. This is a fantastic chance to advance your career within a team keen to make significant strides in the market. Jack@highfinancegroup.co.uk

£35k - £57k Basic, South East This rapidly growing Life Insurer requires a Product Development Analyst to assist the implementation of pricing changes and manage the pricing process for both new and existing products. This exciting opportunity offers future management responsibilities in a dynamic team which is highly visible amongst senior management and other business areas.

Jack@highfinancegroup.co.uk

Pensions & Investments Roles Pensions Risk Management

Investment Advisory £45k - £70k Basic, London

An exciting chance to focus on pensions risk management within a delivery focused position. Working across a range of innovative client solutions, projects will include de-risking, liability management and benefit redesign. You will be a part to newly qualified Actuary, who is eager to progress their career in a cross-discipline environment at the forefront of the pensions industry. Miranda@highfinancegroup.co.uk

£40k - £55k Basic, Various This leading advisory firm is seeking an experienced Investment Analyst to work across investment strategy, monitoring and research. This is a project based role, with high levels of client exposure and accelerated career progression available. You will have made good progress with the Actuarial or CFA qualifications and have previous investment experience for pension funds. Miranda@highfinancegroup.co.uk

SOPHIA CROSSMAN

MIRANDA WILKINSON Pensions & Investments

JACK SNAPE Life Insurance

Life Insurance

+44 (0) 207 337 8815 miranda@highfinancegroup.co.uk

+44 (0) 207 337 8810 jack@highfinancegroup.co.uk

+44 (0) 207 337 1207 sophia@highfinancegroup.co.uk

+44 (0) 207 337 8800

www.highfinancegroup.co.uk December 2013 • THE ACTUARY 41 www.theactuary.com

ACT.12.13.041.indd 41

26/11/2013 12:42

Appointments

KhZ >/ Ed^ Z '>K > ͵ E ^K Z t ƐƚĂďůŝƐŚĞĚ ŝŶ ϭϵϵϲ͕ ĂƌǁŝŶ ZŚŽĚĞƐ ŝƐ ĂŶ ĂǁĂƌĚ ǁŝŶŶŝŶŐ ƐƉĞĐŝĂůŝƐƚ ƌĞĐƌƵŝƚĞƌ ŽƉĞƌĂƟ ŶŐ ǁŝƚŚŝŶ ŶŝĐŚĞ ĂƌĞĂƐ ŽĨ ƚŚĞ /ŶƐƵƌĂŶĐĞ ĂŶĚ &ŝŶĂŶĐĞ ƐĞĐƚŽƌƐ ĂŶĚ ŝƐ ƉĂƌƚ ŽĨ ƚŚĞ ƌLJĚĞŶ ,ƵŵĂŶ ĂƉŝƚĂů 'ƌŽƵƉ͘ tŽƌŬŝŶŐ ĨƌŽŵ Žĸ ĐĞƐ ŝŶ >ŽŶĚŽŶ͕ ƵƌŝĐŚ͕ ,ŽŶŐ <ŽŶŐ͕ EĞǁ zŽƌŬ͕ ^LJĚŶĞLJ ĂŶĚ DƵŵďĂŝ͖ ŽƵƌ ĐƚƵĂƌŝĂů ŽŶƐƵůƚĂŶƚƐ ƐĞƌǀŝĐĞ ĐƵƐƚŽŵĞƌƐ ĂĐƌŽƐƐ >ŝĨĞ͕ EŽŶͲ>ŝĨĞ͕ WĞŶƐŝŽŶƐ͕ /ŶǀĞƐƚŵĞŶƚƐ ĂŶĚ ,ĞĂůƚŚĐĂƌĞ ǁŝƚŚ Ă ƉŽƌƞ ŽůŝŽ ŽĨ ĐůŝĞŶƚƐ ŝŶĐůƵĚŝŶŐ /ŶƐƵƌĞƌƐ͕ ZĞŝŶƐƵƌĞƌƐ͕ ZĞŐƵůĂƚŽƌƐ͕ ŽŶƐƵůƚĂŶĐŝĞƐ ĂŶĚ ZĂƟ ŶŐƐ ŐĞŶĐŝĞƐ͘

EŽŶͲ>ŝĨĞ͗ ĐƚƵĂƌŝĂů ŶĂůLJƐƚ ĞŶƚƌĂů >ŽŶĚŽŶ ʹ άϲϬŬ н ďĞŶĞĮ ƚƐ

>ŝĨĞ͗ ^ĞŶŝŽƌ ƵƐŝŶĞƐƐ ĞǀĞůŽƉŵĞŶƚ ĐƚƵĂƌLJ ʹ ZĞŝŶƐƵƌĂŶĐĞ ƵďůŝŶ Žƌ ƵƌŝĐŚ ʹ ŽŶƐŝĚĞƌĂďůĞ ƌĞŵƵŶĞƌĂƟ ŽŶ ĂŶĚ ďŽŶƵƐ

ůĂƌŐĞ >ŽŶĚŽŶ ŵĂƌŬĞƚ ŝŶƐƵƌĞƌ ŝƐ ĐƵƌƌĞŶƚůLJ ŝŶ ƚŚĞ ƉƌŽĐĞƐƐ ŽĨ ďƵŝůĚŝŶŐ ŽƵƚ ƚŚĞŝƌ ƉƌŝĐŝŶŐ ƚĞĂŵ͘ dŚĞLJ ĂƌĞ ůŽŽŬŝŶŐ ĨŽƌ Ă ƉĂƌƚͲŶĞĂƌůLJ ƋƵĂůŝĮ ĞĚ ĂĐƚƵĂƌLJ ǁŝƚŚ Ă ƐŽůŝĚ >ŽŶĚŽŶ ŵĂƌŬĞƚ ƉƌŝĐŝŶŐ ďĂĐŬŐƌŽƵŶĚ͘ dŚĞ ƉĞƌƐŽŶ ǁŝůů ŐĞƚ ŝŶǀŽůǀĞĚ ŝŶ ďƵŝůĚŝŶŐ ƌĂƟ ŶŐ ĨĂĐƚŽƌƐ͕ ůŝĂŝƐŝŶŐ ĚĂŝůLJ ǁŝƚŚ hŶĚĞƌǁƌŝƚĞƌƐ ĂŶĚ ǁŽƌŬŝŶŐ ŽŶ Ă ďƌŽĂĚ ƌĂŶŐĞ ŽĨ ĐůĂƐƐĞƐ͘ dŚĞƌĞ ǁŝůů ĂůƐŽ ďĞ ŵĞŶƚŽƌŝŶŐ ĂŶĚ ƚƵƚŽƌŝŶŐ ƌĞƐƉŽŶƐŝďŝůŝƟ ĞƐ ŽĨ ŵŽƌĞ ũƵŶŝŽƌ ƚĞĂŵ ŵĞŵďĞƌƐ͘ dŚŝƐ ĐĂŶĚŝĚĂƚĞ ŵƵƐƚ ŚĂǀĞ ƐƚƌŽŶŐ ĐŽŵŵƵŶŝĐĂƟ ŽŶ ƐŬŝůůƐ ĂŶĚ ĞdžƉĞƌŝĞŶĐĞ ŝŶ ƚĂůŬŝŶŐ ǁŝƚŚ ƐĞŶŝŽƌ ŵĂŶĂŐĞŵĞŶƚ͘ ZĞĨ͗ s ϯϱϬϬϬ ŽŶƚĂĐƚ sŝĐƚŽƌŝĂ ƌƵŝĐŬƐŚĂŶŬ ŽŶ͗ ǀ͘ĐƌƵŝĐŬƐŚĂŶŬΛĚĂƌǁŝŶƌŚŽĚĞƐ͘ĐŽŵ

ZĞƐƉŽŶƐŝďŝůŝƚLJ ĨŽƌ ƚŚĞ ĞdžĞĐƵƟ ŽŶ ĂŶĚ ŝŵƉůĞŵĞŶƚĂƟ ŽŶ ŽĨ ŶĞǁ ƚƌĂŶƐĂĐƟ ŽŶƐ͕ ĂŶĚ ĐŽŶƚƌŝďƵƟ ŶŐ ƚŽ ƚŚĞ ŵĂŝŶƚĞŶĂŶĐĞ ŽĨ ŝŶͲĨŽƌĐĞ ƚƌĂŶƐĂĐƟ ŽŶƐ͕ ĞŶƐƵƌŝŶŐ ĐŽŵƉůŝĂŶĐĞ ǁŝƚŚ ŽďůŝŐĂƟ ŽŶƐ ďLJ ĐŽͲŽƌĚŝŶĂƟ ŶŐ ĂĐƚƵĂƌŝĂů͕ ĂĐĐŽƵŶƟ ŶŐ ĂŶĚ ĂĚŵŝŶŝƐƚƌĂƟ ŽŶ ƚĞĂŵƐ͘ ŽŶƚƌŝďƵƟ ŶŐ ƚŽ ƚŚĞ ĚĞǀĞůŽƉŵĞŶƚ ŽĨ ĞdžƉĞƌƟ ƐĞ ĂŶĚ ŬŶŽǁͲŚŽǁ ŽĨ ƚŚĞ ƚĞĂŵ ŵĞŵďĞƌƐ ĂŶĚ ĞŶŚĂŶĐŝŶŐ ŽƵƌ ĐůŝĞŶƚ͛Ɛ ƉƌŽĮ ůĞ͘ ^ŝŐŶŝĮ ĐĂŶƚ ĞdžƉĞƌŝĞŶĐĞ ŝŶ ůŝĨĞ ŝŶƐƵƌĂŶĐĞ ŝĚĞĂůůLJ ŝŶ Ă ďƵƐŝŶĞƐƐ ĚĞǀĞůŽƉŵĞŶƚ ƌŽůĞ ǁŚĞƌĞ ƚŚĞ ĐĂŶĚŝĚĂƚĞ ǁŝůů ŚĂǀĞ ĞƐƚĂďůŝƐŚĞĚ Ă ŶĞƚǁŽƌŬ ŽĨ ĐŽŶƚĂĐƚƐ͘ ĚĚŝƟ ŽŶĂůůLJ ĞdžƉĞƌŝĞŶĐĞ ŶĞŐŽƟ ĂƟ ŶŐ͕ ƉƌŝĐŝŶŐ Žƌ ƐƚƌƵĐƚƵƌŝŶŐ ůĂƌŐĞ ƌĞŝŶƐƵƌĂŶĐĞ ƚƌĂŶƐĂĐƟ ŽŶƐ ǁŝůů ďĞ ĚĞƐŝƌĂďůĞ͘ ZĞĨ͗ 'ϰϴϬϰϬ ŽŶƚĂĐƚ ĚĂŵ 'ŽŽĚǁŝŶ ŽŶ͗ Ă͘ŐŽŽĚǁŝŶΛĚĂƌǁŝŶƌŚŽĚĞƐ͘ĐŽŵ

EŽŶͲ>ŝĨĞ͗ ^ĞŶŝŽƌ ĂƉŝƚĂů ŶĂůLJƐƚ ĞŶƚƌĂů >ŽŶĚŽŶ ʹ άϲϬ<ͲάϴϬ< н ďĞŶĞĮ ƚƐ

>ŝĨĞ͗ ZĞƐĞĂƌĐŚ Θ ĞǀĞůŽƉŵĞŶƚ WƌŝĐŝŶŐ ĐƚƵĂƌLJ ʹ ZĞŝŶƐƵƌĂŶĐĞ >ŽŶĚŽŶ ʹ άϲϱ<Ͳάϴϱ< ĚĞƉĞŶĚŝŶŐ ŽŶ ĞdžƉĞƌŝĞŶĐĞ

/ŶƚĞƌŶĂƟ ŽŶĂů ŝŶƐƵƌĂŶĐĞ ďƵƐŝŶĞƐƐ ŝƐ ƐĞĞŬŝŶŐ ĂŶ ĞdžƉĞƌŝĞŶĐĞĚ ĐĂƉŝƚĂů ŵŽĚĞůůŝŶŐ ĂŶĂůLJƐƚ ƚŽ ƵŶĚĞƌŐŽ Ă ǀĂƌŝĞĚ ĐĂƉŝƚĂů ƌŽůĞ͘ dŚŝƐ ǁŝůů ŝŶĐůƵĚĞ ŵŽĚĞů ĚĞǀĞůŽƉŵĞŶƚ͕ ƉĂƌĂŵĞƚĞƌŝƐĂƟ ŽŶ͕ ǀĂůŝĚĂƟ ŽŶ͕ ĚŽĐƵŵĞŶƚĂƟ ŽŶ ĂŶĚ ƵƐŝŶŐ ƚŚĞ ƌĞƐƵůƚƐ ĂůŽŶŐƐŝĚĞ ŽƚŚĞƌ ŵĞŵďĞƌƐ ŽĨ ƚŚĞ ŽƌŐĂŶŝƐĂƟ ŽŶ͘ dŚĞƌĞ ǁŝůů ĂůƐŽ ďĞ ƐŽŵĞ ĞdžƉŽƐƵƌĞ ƚŽ ŽƚŚĞƌ ĂĐƚƵĂƌŝĂů ĂŶĚ ƚĞĐŚŶŝĐĂů ĚŝƐĐŝƉůŝŶĞƐ͘ ĂŶĚŝĚĂƚĞƐ ŵƵƐƚ ŚĂǀĞ ƐŽŵĞ ƉƌŝŽƌ ĐĂƉŝƚĂů ŵŽĚĞůůŝŶŐ ĞdžƉĞƌŝĞŶĐĞ ĂŶĚ ƚŚŝƐ ǁŽƵůĚ ƐƵŝƚ ĂŶ ŝŶĚŝǀŝĚƵĂů ǁŚŽ ǁŽƵůĚ ůŝŬĞ ƚŽ ŐĂŝŶ ĞdžƉĞƌŝĞŶĐĞ ŽĨ Ă ǁŚŽůĞ ŵŽĚĞů͘ ZĞĨ͗ ,ϮϱϬϮϵ ŽŶƚĂĐƚ ŶƚŚŽŶLJ ,ŝůů ŽŶ͗ Ă͘ŚŝůůΛĚĂƌǁŝŶƌŚŽĚĞƐ͘ĐŽŵ

EŽŶͲ>ŝĨĞ͗ ĐƚƵĂƌŝĂů ŶĂůLJƐƚ ĞŶƚƌĂů >ŽŶĚŽŶ ʹ άϯϱ<Ͳάϰϱ< н ďĞŶĞĮ ƚƐ >ŽŶĚŽŶ ŵĂƌŬĞƚ ŝŶƐƵƌĂŶĐĞ ĐŽŵƉĂŶLJ͕ ǁŚŝĐŚ ŝƐ Ă ŵĂŶĂŐŝŶŐ ĂŐĞŶĐLJ ĨŽƌ Ă ŶƵŵďĞƌ ŽĨ >ůŽLJĚ͛Ɛ ƐLJŶĚŝĐĂƚĞƐ͕ ŝƐ ƐĞĞŬŝŶŐ Ă ƉĂƌƚͲƋƵĂůŝĮ ĞĚ ĂĐƚƵĂƌLJ ƚŽ ƐƵƉƉŽƌƚ ƚŚĞŝƌ ĂĐƚƵĂƌŝĂů ĨƵŶĐƟ ŽŶ ĂĐƌŽƐƐ ƉƌŝĐŝŶŐ͕ ƌĞƐĞƌǀŝŶŐ ĂŶĚ ƐŽŵĞ ĐĂƉŝƚĂů ŵŽĚĞůůŝŶŐ ĂůƐŽ͘ tŽƌŬŝŶŐ ŝŶ Ă ƐŵĂůů ƚĞĂŵ ƚŚĞƌĞ ŝƐ ĞdžĐĞůůĞŶƚ ĞdžƉŽƐƵƌĞ ŽŶ Žī Ğƌ ƚŽ Ăůů ĂƌĞĂƐ ŽĨ ĂĐƚƵĂƌŝĂů ǁŽƌŬ ĂƐ ǁĞůů ĂƐ Ă ƐƵƉƉŽƌƟ ǀĞ ĞŶǀŝƌŽŶŵĞŶƚ ĨŽƌ Ă ƐƚƵĚĞŶƚ ĂĐƚƵĂƌLJ ƚŽ ŐƌŽǁ ƚŚĞŝƌ ĐĂƌĞĞƌ͘ ƉƉůŝĐĂŶƚƐ ŵƵƐƚ ŚĂǀĞ ƉƌŝŽƌ ŐĞŶĞƌĂů ŝŶƐƵƌĂŶĐĞ ĞdžƉĞƌŝĞŶĐĞ ĂŶĚ ŬŶŽǁůĞĚŐĞ ŽĨ >ŽŶĚŽŶ ŵĂƌŬĞƚ ďƵƐŝŶĞƐƐ ŝƐ ƉƌĞĨĞƌƌĞĚ ďƵƚ ŶŽƚ ĞƐƐĞŶƟ Ăů͘ ZĞĨ͗ ,ϰϴϬϲϬ ŽŶƚĂĐƚ ŶƚŚŽŶLJ ,ŝůů ŽŶ͗ Ă͘ŚŝůůΛĚĂƌǁŝŶƌŚŽĚĞƐ͘ĐŽŵ

EŽŶͲ>ŝĨĞ͗ ĂƉŝƚĂů DŽĚĞůůĞƌ ^ƵƌƌĞLJͬ ĞŶƚƌĂů >ŽŶĚŽŶ ʹ άϳϬ<ͲάϭϯϬ< н ďĞŶĞĮ ƚƐ tĞ ĂƌĞ ŝŶƚĞƌĞƐƚĞĚ ŝŶ ƐƉĞĂŬŝŶŐ ƚŽ ƐƚƌŽŶŐ ĐĂƉŝƚĂů ŵŽĚĞůůĞƌƐ ĨŽƌ Ă ŐůŽďĂů ĐŽŶƐƵůƟ ŶŐ ŽƌŐĂŶŝƐĂƟ ŽŶ͘ WƌŽǀŝĚŝŶŐ ďĞƐƉŽŬĞ ƐŽůƵƟ ŽŶƐ ƚŽ ĂŶ ĂƌƌĂLJ ŽĨ ŝŶƐƵƌĂŶĐĞ ĐŽŵƉĂŶŝĞƐ͕ ƚŚŝƐ ƌŽůĞ ǁŝůů ďĞ ƚĂƐŬĞĚ ǁŝƚŚ ĨƵůůLJ ƵŶĚĞƌƐƚĂŶĚŝŶŐ ĐůŝĞŶƚƐ͛ ŶĞĞĚƐ ĂŶĚ ĚĞůŝǀĞƌŝŶŐ ŽŶ ƉƌŽũĞĐƚƐ ǁŝƚŚŝŶ ƚŚĞ ƌĞƋƵŝƌĞĚ Ɵ ŵĞƐĐĂůĞ͘ dŚĞƌĞ ĂƌĞ ŽƉƉŽƌƚƵŶŝƟ ĞƐ ĨŽƌ ŝŶĚŝǀŝĚƵĂůƐ ũŽŝŶŝŶŐ ƚŚŝƐ ŽƌŐĂŶŝƐĂƟ ŽŶ ƚŽ ƉƌŽŐƌĞƐƐ ƚŽ Ă ƐĞŶŝŽƌ ůĞǀĞů ǁŝƚŚ Ă ĐĂƌĞĞƌ ƉĂƚŚ ƚŽ ŝƌĞĐƚŽƌͬWĂƌƚŶĞƌ ůĞǀĞů͘ ƉƉůŝĐĂŶƚƐ ŵƵƐƚ ŚĂǀĞ ƐƚƌŽŶŐ ĐĂƉŝƚĂů ŵŽĚĞůůŝŶŐ ĞdžƉĞƌŝĞŶĐĞ ĂŶĚ ďĞ ƋƵĂůŝĮ ĞĚ Žƌ ƋƵĂůŝĮ ĞĚ ďLJ ĞdžƉĞƌŝĞŶĐĞ͘ EŽŶͲ>ŝĨĞ ŝŶƐƵƌĂŶĐĞ ĞdžƉĞƌŝĞŶĐĞ ŝƐ Ă ŵƵƐƚ͘ Ɛ ƚŚŝƐ ƉŽƐŝƟ ŽŶ ǁŝůů ǁŽƌŬ ŽŶ ŐůŽďĂů ƉƌŽũĞĐƚƐ͕ ĂŶLJ ĂĚĚŝƟ ŽŶĂů ůĂŶŐƵĂŐĞ ƐŬŝůůƐ ǁŽƵůĚ ďĞ ƵƐĞĨƵů ďĞ ŶŽƚ ĞƐƐĞŶƟ Ăů͘ ZĞĨ͗ ,ϰϲϰϭϬ ŽŶƚĂĐƚ ŶƚŚŽŶLJ ,ŝůů ŽŶ͗ Ă͘ŚŝůůΛĚĂƌǁŝŶƌŚŽĚĞƐ͘ĐŽŵ

dŚŝƐ ŝƐ Ă ǀĂƌŝĞĚ ƌŽůĞ ǁŚŝĐŚ ŝŶĐůƵĚĞƐ ƉƌŽĚƵĐŝŶŐ ƋƵŽƚĂƟ ŽŶƐ ĨŽƌ ůŝĨĞͬŚĞĂůƚŚ ƌĞŝŶƐƵƌĂŶĐĞ ďƵƐŝŶĞƐƐ ĂŶĚ ƉƌŝĐŝŶŐ ƌĞƐĞĂƌĐŚ ǁŽƌŬ͘ dŚĞ ƐƵĐĐĞƐƐĨƵů ĐĂŶĚŝĚĂƚĞ ĐĂŶ ĞdžƉĞĐƚ ƚŽ ŐĂŝŶ ǁŝĚĞ ƌĂŶŐŝŶŐ ĞdžƉĞƌŝĞŶĐĞ ŽĨ ƌĞŝŶƐƵƌĂŶĐĞ ƉƌŝĐŝŶŐ ŝŶ Ă ƐŚŽƌƚ Ɵ ŵĞĨƌĂŵĞ͘ /ĚĞĂů ĨŽƌ Ă ŶĞĂƌůLJ ƋƵĂůŝĮ ĞĚ ƚŽ Ă ĨĞǁ LJĞĂƌƐ ƉŽƐƚ ƋƵĂůŝĮ ĐĂƟ ŽŶ ĐĂŶĚŝĚĂƚĞ ǁŝƚŚ ĞdžƉĞƌŝĞŶĐĞ ŝŶ ƚŚĞ ůŝĨĞ /ŶƐƵƌĂŶĐĞ ŵĂƌŬĞƚ͕ ŚŽǁĞǀĞƌ ĐĂŶĚŝĚĂƚĞƐ ǁŚŽ ŚĂǀĞ ƐƚŽƉƉĞĚ ƚŚĞ ĞdžĂŵƐ ďƵƚ ĐĂŶ ĚĞŵŽŶƐƚƌĂƚĞ ƚŚĞLJ ŚĂǀĞ ƚŚĞ ĞdžƉĞƌŝĞŶĐĞ ĂƌĞ ǁĞůĐŽŵĞ ƚŽ ĂƉƉůLJ͘ ĂŶĚŝĚĂƚĞƐ ǁŚŽ ŚĂǀĞ ĞdžƉĞƌŝĞŶĐĞ ŝŶ Ă ĐůŝĞŶƚ ĨĂĐŝŶŐ ƉƌŝĐŝŶŐ ƌŽůĞ ĂŶĚ ŚĂǀĞ ĐĂƌƌŝĞĚ ŽƵƚ ƐƚĂƟ ƐƟ ĐĂů ƌĞƐĞĂƌĐŚ ďĂƐĞĚ ƉƌŽũĞĐƚƐ ĂƌĞ ŚŝŐŚůLJ ĚĞƐŝƌĂďůĞ͘ ZĞĨ͗ 'ϰϴϬϯϬ ŽŶƚĂĐƚ ĚĂŵ 'ŽŽĚǁŝŶ ŽŶ͗ Ă͘ŐŽŽĚǁŝŶΛĚĂƌǁŝŶƌŚŽĚĞƐ͘ĐŽŵ

ƵƐƚƌĂůŝĂ͗ KƉƉŽƌƚƵŶŝƟ ĞƐ ŽǁŶ hŶĚĞƌ ^LJĚŶĞLJ͕ DĞůďŽƵƌŶĞ͕ ƌŝƐďĂŶĞ ĂƌǁŝŶ ZŚŽĚĞƐ ŚĂƐ ĞdžƚĞŶƐŝǀĞ ĞdžƉĞƌŝĞŶĐĞ ŽĨ ƉůĂĐŝŶŐ ĂĐƚƵĂƌŝĞƐ ĨƌŽŵ ƚŚĞ h< ŝŶƚŽ ŽǀĞƌƐĞĂƐ ƉŽƐŝƟ ŽŶƐ ĂŶĚ ŶŽŶĞ ŵŽƌĞ ƐŽ ƚŚĂŶ ǁŝƚŚ ŽƵƌ ĐůŝĞŶƚƐ ŝŶ ƵƐƚƌĂůŝĂ͘ tŽƌŬŝŶŐ ǁŝƚŚ ŽƌŐĂŶŝƐĂƟ ŽŶƐ ĂĐƌŽƐƐ ŶŽŶͲůŝĨĞ͕ ůŝĨĞ͕ ďĞŶĞĮ ƚƐ ĂŶĚ ŝŶǀĞƐƚŵĞŶƚƐ ŵĂƌŬĞƚƐ͖ ǁĞ ŚĂǀĞ ƐƵĐĐĞƐƐĨƵůůLJ ĂƐƐŝƐƚĞĚ ĐĂŶĚŝĚĂƚĞƐ Ăƚ ďŽƚŚ ƚŚĞ ƋƵĂůŝĮ ĞĚ ĂŶĚ ƉĂƌƚͲƋƵĂůŝĮ ĞĚ ůĞǀĞůƐ͘ Ž ĐŽŶƚĂĐƚ ƵƐ ĨŽƌ ŝŶĨŽƌŵĂƟ ŽŶ ŽŶ ƚŚĞ ƵƐƚƌĂůŝĂŶ ŵĂƌŬĞƚ ŝŶĐůƵĚŝŶŐ ĐƵƌƌĞŶƚ ŽƉƉŽƌƚƵŶŝƟ ĞƐ͕ ĐŽŵƉĞŶƐĂƟ ŽŶ ƉĂĐŬĂŐĞƐ ĂŶĚ ůŽĐĂƟ ŽŶ ĚĞƚĂŝůƐ͘ ZĞĨ͗ , hh< ŽŶƚĂĐƚ ĚĂŵ 'ŽŽĚǁŝŶ ŽŶ͗ Ă͘ŚŝůůΛĚĂƌǁŝŶƌŚŽĚĞƐ͘ĐŽŵ

tKZ< &KZ h^͊ ĞŶƚƌĂů >ŽŶĚŽŶ ĂƌǁŝŶ ZŚŽĚĞƐ ŝƐ ĞdžƉĂŶĚŝŶŐ ŝƚƐ ŽƉĞƌĂƟ ŽŶƐ ŝŶ ǀĂƌŝŽƵƐ ůŽĐĂƟ ŽŶƐ ĂŶĚ ŽƵƌ >ŽŶĚŽŶ Kĸ ĐĞ ŝƐ ƚŚĞ ĨŽĐĂů ƉŽŝŶƚ ŽĨ ƚŚŝƐ ŐƌŽǁƚŚ͘ tĞ ĂƌĞ ŝŶƚĞƌĞƐƚĞĚ ŝŶ ƐƉĞĂŬŝŶŐ ǁŝƚŚ ĞdžƉĞƌŝĞŶĐĞĚ ĂĐƚƵĂƌŝĂů ƌĞĐƌƵŝƚĞƌƐ Žƌ ƚŚŽƐĞ ĨƌŽŵ ƚŚĞ ŵĂƌŬĞƚ ƚŚĂƚ ǁŽƵůĚ ůŝŬĞ ƚŽ ƵƐĞ ƚŚĞŝƌ ŬŶŽǁůĞĚŐĞ ĂŶĚ ĞdžƉĞƌŝĞŶĐĞ ŝŶ Ă ŶĞǁ ŝŶĚƵƐƚƌLJ͘ tĞ ĐĂŶ Žī Ğƌ ƚŚĞ ŽƉƉŽƌƚƵŶŝƚLJ ƚŽ ǁŽƌŬ ŽŶ ƉƌŽũĞĐƚƐ ĂĐƌŽƐƐ ŶŽŶͲůŝĨĞ͕ ůŝĨĞ͕ ƉĞŶƐŝŽŶƐ ĂŶĚ ŝŶǀĞƐƚŵĞŶƚƐ͘ Ɛ Ă ďƌĂŶĚ ƚŚĂƚ ƚŚĞ ĂĐƚƵĂƌŝĂů ŵĂƌŬĞƚ ƚƌƵƐƚƐ͕ ĂƌǁŝŶ ZŚŽĚĞƐ ǁŽƌŬƐ ǁŝƚŚ ĞƐƚĂďůŝƐŚĞĚ ĐůŝĞŶƚƐ ǁŚĞƌĞ ƌĞůĂƟ ŽŶƐŚŝƉƐ ŚĂǀĞ ďĞĞŶ ĚĞǀĞůŽƉĞĚ ŽǀĞƌ ƚŚĞ ůĂƐƚ ƐĞǀĞŶƚĞĞŶ LJĞĂƌƐ͘ ^Ž ĨŽƌ Ă ƉŽƐŝƟ ŽŶ ƚŚĂƚ ƉƌŽǀŝĚĞƐ Ă ĐŽŵƉĞƟ Ɵ ǀĞ ƉĂĐŬĂŐĞ͕ ƚƌĂŝŶŝŶŐ͕ ĐĂƌĞĞƌ ĚĞǀĞůŽƉŵĞŶƚ ĂŶĚ ĞdžĐŝƟ ŶŐ ĐŚĂůůĞŶŐĞƐ ŽŶ ĂŶ ŝŶƚĞƌŶĂƟ ŽŶĂů ƐĐĂůĞ͕ ĚŽ ŐĞƚ ŝŶ ƚŽƵĐŚ͘ ŽŶƚĂĐƚ ŶƚŚŽŶLJ ,ŝůů ŽŶ͗ Ă͘ŚŝůůΛĚĂƌǁŝŶƌŚŽĚĞƐ͘ĐŽŵ Žƌ ĚĂŵ 'ŽŽĚǁŝŶ Ă͘ŐŽŽĚǁŝŶΛĚĂƌǁŝŶƌŚŽĚĞƐ͘ĐŽŵ

t ǁǁǁ͘ĚĂƌǁŝŶƌŚŽĚĞƐ͘ĐŽŵ E >ŽŶĚŽŶΛĚĂƌǁŝŶƌŚŽĚĞƐ͘ĐŽŵ zŽƵ ĐĂŶ ĨŽůůŽǁ ƵƐ ŽŶ dǁŝƩ Ğƌ Λ ĂƌǁŝŶZŚŽĚĞƐϭ 42

h< Θ hZKW | ,KE' <KE' | ,/E | /E / | h^dZ >/ | h^

THE ACTUARY • September 2013 www.theactuary.com

ACT.12.13.040.indd 42

26/11/2013 12:31

London : Chicago : Hong Kong : Singapore : Shanghai

Appointments

Life Actuary - Germany &OLHQW 'LUHFWRU &RUSRUDWH 7UXVWHH 6ROXWLRQV 6FRWODQG $WWUDFWLYH 6DODU\ %HQH¿WV 3DFNDJH 8SSHU 4XDUWLOH %RQXV DQG %HQH¿WV 3DFNDJH This global primary insurance company is looking to enhance their *HUPDQ RSHUDWLRQ ZLWK WKH DGGLWLRQ RI D TXDOL¿HG /LIH $FWXDU\ Principal tasks will revolve around Solvency II, MCEV calculation DQG LQWHUQDO PRGHOV <RX ZLOO DOVR GHYHORS JXLGHOLQHV IRU OLIH DFWXDULDO EDODQFHV DQG SULFLQJ SURGXFW DSSURYDO 7KH LGHDO FDQGLGDWH ZLOO EH D QHDU RU QHZO\ TXDOL¿HG DFWXDU\ ZLWK UHOHYDQW H[SHULHQFH LQ WKH OLIH LQVXUDQFH PDUNHW 3URSKHW PRGHOOLQJ VNLOOV DQG H[SHULHQFH ZLWK product development, pricing and/or reserving within life insurance DUH H[SHFWHG *RRG NQRZOHGJH RI PDUNHW FRQVLVWHQW SULQFLSOHV DQG YDOXDWLRQ ZRXOG EH DQ DGYDQWDJH &RQWDFW SKX QJRF#LSVJURXS FR XN +44 207 481 8686

7KLV HVWDEOLVKHG KLJK TXDOLW\ FRQVXOWLQJ ¿UP LV LQWHUHVWHG LQ KLULQJ D VHQLRU DQG H[SHULHQFHG FRQVXOWLQJ DFWXDU\ WR MRLQ LWV VXFFHVVIXO WHDP This person will advise both the management of corporates as well as boards of trustees on a whole range of strategic issues including, risk PDQDJHPHQW ¿QDQFLDO PDQDJHPHQW DQG VWUDWHJ\ DQG VFKHPH GHVLJQ &DQGLGDWHV ZLOO EH TXDOL¿HG DFWXDULHV ZLWK DW OHDVW \HDUV H[SHULHQFH RI OHDGLQJ DQG GHYHORSLQJ D SRUWIROLR RI HPSOR\HU VSRQVRUHG VFKHPHV They will also be able to demonstrate self motivation, professional H[FHOOHQFH VWURQJ SURMHFW PDQDJHPHQW DQG OHDGHUVKLS VNLOOV

&RQWDFW DQWKRQ\ FKLWQLV#LSVJURXS FR XN +44 207 481 8686

6HQLRU 0DQDJHU &RUSRUDWH 3HQVLRQV 0LGODQGV 5HVHUYLQJ $FWXDULDO $QDO\VW /RQGRQ Â&#x2026; Â&#x2026; %RQXV %HQH¿WV &RPSHWLWLYH 3DFNDJH I am keen to speak to actuaries with between 2 and 10 years post TXDOL¿HG H[SHULHQFH ZKR DUH VHHNLQJ D QHZ DQG FKDOOHQJLQJ UROH The work will be corporate based however this team are increasingly LQYROYHG LQ SURMHFWV VSDQQLQJ ZLGHU HPSOR\HH EHQH¿WV VR WKLV LV DQ LQWHUHVWLQJ URXWH WR H[SORUH LI \RX DUH NHHQ WR VSUHDG WKH EUHDGWK RI \RXU H[SHULHQFH 2SSRUWXQLWLHV WR SURJUHVV ZLWKLQ WKH ¿UP DUH UHDO DV there isnâ&#x20AC;&#x2122;t a massive pool of people at Director Level and they reward LQGLYLGXDOV RQ PHULW ,I \RX DUH ORRNLQJ WR UHORFDWH RXW RI /RQGRQ WKHQ WKLV FRXOG EH WKH UROH IRU \RX :KDW¶V PRUH WKH\ DUH RSHQ WR SHRSOH ZRUNLQJ D IHZ GD\V D ZHHN LQ WKHLU 0LGODQGV RI¿FH DQG WKH UHVW LQ %LUPLQJKDP &RQWDFW VLPRQ DUWKXU#LSVJURXS FR XN +44 207 481 8686

This multinational insurance company is looking to hire an DFWXDULDO DQDO\VW IRU WKHLU UHVHUYLQJ WHDP 7KH PDLQ UHPLW LV WR DVVLVW LQ WKH UHSRUWLQJ DQG UHVHUYLQJ SURFHVV <RX ZLOO DOVR SURYLGH VXSSRUW LQ SODQQLQJ SRUWIROLR DQDO\VLV DQG PRQLWRULQJ )XUWKHUPRUH WKH UROH LV LQYROYHG LQ 6ROYHFQ\ ,, VXSSRUW 7KH LGHDO FDQGLGDWH ZLOO EH D QHDU TXDOL¿HG DFWXDU\ ZLWK H[SHULHQFH LQ JHQHUDO LQVXUDQFH DQG UHVHUYLQJ .QRZOHGJH RI /RQGRQ 0DUNHW EXVLQHVV ZRXOG EH DGYDQWDJHRXV 7KLV role would suit a team player with good communcation and WHFKQLFDO VNLOOV

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

/RQGRQ 2I¿FH ,36 *URXS /OR\G¶V $YHQXH +RXVH /OR\G¶V $YHQXH /RQGRQ (& 1 (6 7HOHSKRQH (PDLO DFWXDULDO#LSVJURXS FR XN 42

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

ACT.12.13.041.indd 42

/HHGV 2I¿FH IPS Group, 8 St Paulâ&#x20AC;&#x2122;s Street, Leeds LS1 2LE 7HOHSKRQH (PDLO DFWXDULDO#LSVJURXS FR XN 26/11/2013 12:32

Appointments

UK Director of Risk South Coast

£190K + bonus and bene¿ts

Eames Consulting Group is currently working on an exclusive mandate for a leading composite insurer. This company is seeking an experienced risk management professional to lead and develop the risk division for its UK businesses.

The role will be across both general and life insurance businesses and its purpose will be to deliver a secure framework across all UK commercial and personal insurance brands offering challenge to regional chief executives on matters of capital, risk and ¿nancial strategy. Reporting to board level, this individual will also work with the Solvency II programme leads to ensure the organisation meets its requirements under this regulation. You will de¿ne the risk policy and communicate key risks to the business and management level.

This person will be a Quali¿ed Actuary or have completed actuarial training as a minimum and ideally have experience within strategic risk management. Previous managerial experience and an understanding of capital, pricing and reserving are also pivotal to the success of this hire.

Contact Rob Bulpitt

Rupert Rickard Andy Cannon

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

Senior Consultant Manager of Actuarial Non-Life and 020 7092 3262 Insurance Risk Management andy.cannon@eamesconsulting.com 020 7092 3219

rob.bulpitt@eamesconsulting.com

rupert.rickard@eamesconsulting.com

Office Number

For current opportunities please visit

+44 (0)20 7092 3200

www.eamesconsulting.com

3HQVLRQV ,QYHVWPHQWV _ 1RQ /LIH _ /LIH +HDOWK 8. _ (XURSH _ $VLD 3DFL¿F

PLAN YOUR NEXT MOVE

www.eamesconsulting.com

pfJobs

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

Go to www.theactuaryjobs.com 44

THE ACTUARY • December 2013 www.theactuary.com

ACT.12.13.044 HP.indd 44

26/11/2013 15:59

Appointments

General Insurance Roles Risk Actuary – Capital & Pricing

First inhouse Actuary £100k - £135k Basic, London

Up to £90k Basic, London

Boutique general insurer requires a first inhouse Actuary to work as an inhouse advisor to the business, across pricing, reserving and capital modelling. This will suit someone who is looking to shape their own role from a blank sheet of paper, with a great chance to make a big difference to the firm. To be considered you should be dynamic and looking for a challenge. William@highfinancegroup.co.uk

A well known London Insurer is looking for an experienced Actuary with a Capital or Pricing background to support the Underwriters of it’s Syndicate. The successful candidate will use the outputs of the internal model to make Pricing and Reinsurance purchasing recommendations to teams in the US and UK. This offers a fantastic opportunity to move into the Risk space. James@highfinancegroup.co.uk

Senior GI Actuary

Pricing Actuary £65k - £100k Basic, London

£90k - £110k Basic, Londonv This Lloyd's syndicate is looking for a qualified Actuary to work across reserving, pricing and capital modelling in a small and ambitious team.

Reporting to the Chief Actuary you will have equal exposure across the different areas in addition to broader business issues. Any GI background considered. William@highfinancegroup.co.uk

This niche but growing Lloyd’s syndicate is looking for a nearly / newly qualified actuary. Working closely with the Chief Actuary, this successful candidate will see themselves working with underwriters on a daily basis across all classes of business, as well as various other teams. You must ideally have some LMKT pricing experience to be considered. Rupa@highfinancegroup.co.uk

Head of Group Reserving

Capital Analyst/Actuary

£130k - £180k Basic, London

£60k - £100k Basic, London

Leading General Insurer requires a senior reserving Actuary to support the Actuarial Director as their number two whilst helping to strengthen and grow the division. You will have significant reserving experience and the ability to strategically lead a team. This is a great opportunity to work with senior management and make a real impact. Consultancy experience would be advantageous. William@highfinancegroup.co.uk

An exciting opportunity has arisen with this small, US backed insurer for a strong Capital Modeller. This role will see you take responsibility for the capital model and its impact on the wider business offering. To be successful you must have a genuine passion for capital and a firm technical grounding; this would suit someone that wants high level business exposure. Rupa@highfinancegroup.co.uk

Senior Actuarial Analyst

Senior Reserving Analyst £60k - £90k Basic, London

£45k - £65k Basic, London

A leading insurer, with offices based across the globe, is seeking a nearly or newly qualified Actuary to be part of its established team.

Reporting directly to the European Reserving Actuary, the role will primarily be focused on reserving for all EMEA regions, covering all lines of business. The chance to get involved with additional pricing, planning and capital is also available. Rupa@highfinancegroup.co.uk

A successful Lloyd’s syndicate is looking for an actuarial student to join their reserving function, whilst liaising with the wider Actuarial team.

The position will provide a broad insight into the business’ insurance portfolio, across various product lines and geographical locations. This is an ideal role for a senior student with previous reserving experience.

Chanelle@highfinancegroup.co.uk

London Market Pricing Actuary

Mixed Actuarial Student £30k - £50k Basic, London

£40k - £60k Basic, London This leading international General Insurer is currently looking to add a senior actuarial analyst to their London Market division. You will gain varied exposure, working across all commercial product lines, liaising regularly with the Underwriting and Actuarial functions. You will be a part-qualified actuary with significant experience of pricing within the London Market. Chanelle@highfinancegroup.co.uk

Opportunity to join the actuarial team of a well-known London Market insurer, working a varied role focused largely on reserving and pricing.

You will work closely with the underwriters and gain exposure to the Capital team. The successful candidate will be in the early stages of their exams and have previous non-life actuarial experience, ideally within commercial lines. Chanelle@highfinancegroup.co.uk

Contract Roles Capital Actuary

Reserving Contractor

£700 - £950 per day, 6 months, London

£700 - £1000 per day, 6 months, London Lloyd’s syndicate is looking for a qualified reserving contractor for 6 months. The role will work closely with the pricing function and the ability to communicate with non actuaries is very advantageous.

William@highfinancegroup.co.uk

JAMES KITT General Insurance

RUPA PITHIYA

Head of Actuarial

General Insurance

General Insurance

+44 (0) 207 337 8826

+44 (0) 207 337 1202

+44 (0) 207 337 1200

+44 (0) 207 337 8827

will@highfinancegroup.co.uk

james@highfinancegroup.co.uk

rupa@highfinancegroup.co.uk

chanelle@highfinancegroup.co.uk

WILL GALLIMORE

0207 337 8800 42

A large Life Insurer requires a recently qualified Actuary with a strong capital background to join their Risk & Capital team. This opportunity requires a good understanding of the drivers of capital requirements and capital management techniques, and the ability to undertake or co-ordinate stress and scenario testing as required by regulators or Group. Jack@highfinancegroup.co.uk

www.highfinancegroup.co.uk

CHANELLE ROSENBAUM

actuarial@highfinancegroup.co.uk

THE ACTUARY • September 2013 www.theactuary.com

ACT.12.13.045.indd 42

26/11/2013 12:37

Guidance throughout your career.

www.theactuaryjobs.com

Pure Search Actuarial & Risk 3XUH 6HDUFK LV DQ LQWHUQDWLRQDO PXOWL GLVFLSOLQDU\ UHFUXLWPHQW Ă&#x20AC;UP :H SURYLGH FDSDELOLW\ WKURXJKRXW WKH 8. (XURSH WKH 0LGGOH (DVW DQG $VLD 3DFLĂ&#x20AC;F DFURVV RXU VSHFLDOLVW SUDFWLFH DUHDV IURP RXU RIĂ&#x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

Services

Coverage

Our full service offering includes: Â&#x2021; ([FOXVLYH FRQWLQJHQW UHFUXLWPHQW Â&#x2021; Retained Search Â&#x2021; Local and international search Â&#x2021; 0DSSLQJ DQG WDUJHWLQJ H[HUFLVHV Â&#x2021; 5HVHDUFK GDWD LQFOXGLQJ VDODU\ EHQFKPDUNLQJ DQG KLULQJ WUHQGV Â&#x2021; 7HDP EXLOGV DQG HVWDEOLVKLQJ LQ KRXVH IXQFWLRQV

Life and Non-Life Insurance Â&#x2021; 6ROYHQF\ ,, &DSLWDO 0DQDJHPHQW Â&#x2021; )LQDQFLDO UHSRUWLQJ Â&#x2021; 3URGXFW GHYHORSPHQW SULFLQJ Â&#x2021; &KDQJH PDQDJHPHQW Â&#x2021; 0RGHOOLQJ Â&#x2021; (QWHUSULVH ULVN PDQDJHPHQW Â&#x2021; 0HUJHUV DFTXLVLWLRQV

RI FDQGLGDWHV SODFHG E\ 3XUH DUH VWLOO ZRUNLQJ IRU WKH VDPH FRPSDQ\ \HDUV ODWHU E\ FRPSDULVRQ WR D &,3' DYHUDJH RI

Pensions & Investments Â&#x2021; ,QYHVWPHQW VWUDWHJ\ PDQDJHU UHVHDUFK Â&#x2021; 3HQVLRQV FRQVXOWLQJ FRUSRUDWH WUXVWHH

Â&#x2021; &RUSRUDWH EHQHĂ&#x20AC;WV UHZDUG Â&#x2021; /RQJHYLW\ GHULVNLQJ VROXWLRQV Â&#x2021; /LDELOLW\ PDQDJHPHQW

)RU WKH ODWHVW RSSRUWXQLWLHV QHZV DQG PDUNHW LQWHOOLJHQFH SOHDVH FRQWDFW

Manager â&#x20AC;&#x201C; Consultancy Martine Scott-Gordon, AFA 0DUWLQH KDV H[SHULHQFH DFURVV DOO OHYHOV RI WKH PDUNHW DQG DFURVV DOO GLVFLSOLQHV %HIRUH PRYLQJ LQWR DFWXDULDO UHFUXLWPHQW 0DUWLQH ZRUNHG DV DQ DFWXDU\ DW ( < *( ,QVXUDQFH 6ROXWLRQV DQG +%R6

â&#x20AC;&#x153;Pure Search went beyond all my most optimistic expectations in all respects. They honestly and intelligently explained the role to me, ensured I was much better prepared for the interviews then if I did it myself, and at all times put my interests first.â&#x20AC;?

Â&#x160; Â&#x160;PDUWLQHVFRWW JRUGRQ#SXUHVHDUFK FRP

+RQJ .RQJ _ /RQGRQ _ 6LQJDSRUH _ ZZZ SXUHVHDUFK FRP

ACT.09.13.049.indd 49

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

49

23/08/2013 10:40

www.theactuaryjobs.com

PART/NEWLY QUALIFIED ACTUARIAL ANALYSTS The missing piece to your career puzzle

WINDSOR COMPETITIVE SALARY

Analytical expertise, deep industry knowledge, outstanding interpersonal skills and the confidence to shape key strategic decisions – as an ambitious Actuarial Analyst you’ve got them all. So why not capitalise on your talent by joining Mercer. It’s a chance to develop your career as part of a team recognised for the quality of its thinking and the consistency of its performance.

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

The successful candidate will support consultants and actuaries in all aspects of pensions consulting and actuarial work gaining significant exposure to clients and to develop your professional skills.

Ready to find out more? Then visit careers.uk.mercer.com

TALENT. HEALTH. RETIREMENT. INVESTMENTS.

Overseas Opportunities Regional Head of Capital, Singapore (Life)

Bermuda Practice Lead, Bermuda (GI)

Up to SGD$220k + Bonus

Dependent on Experience

Excellent opportunity for a Life Actuary (FIA/FSA/FIAA) with Capital Management expertise to join the Regional Risk Function of this Global Insurer. This role requires someone who is technical (MCEV/Economic Capital/Solvency II) and strategic as you work with the Executive to adopt the changing regulations in Asia, optimise capital and generate capital efficiencies for the company.

A career making international opportunity to lead the Actuarial Consulting team of this globally recognised firm. Based in Bermuda, this role offers excellent exposure for a Non Life Actuary with post qualification experience to rapidly further their development. Experience in reinsurance reserving and consulting highly valued. Competitive salary and comprehensive package.

Reinsurance Consultant, Singapore (Life)

Risk Actuary, Singapore (GI)

Up to SGD$ 200,000 + Bonus

Up to SGD 160k + Bonus

This consultancy is seeking a commercially focused actuary to join their global projects team to work on market leading insurance strategy and research programmes. You will have demonstrable project management experience, detailed reinsurance market knowledge and be an excellent communicator as you will be working directly with the Executive and presenting to Boards.

This is an ideal role for a GI Actuary who has been involved in the development of the ORSA, Solvency 2 or ERM work to take these techniques to Asia. 2014 sees the adoption of the ORSA and RBC2 in Singapore and your skills will be vital in making this happen.

Excellent communication skills are required as you will be working with multiple stakeholders to provide advice on what to do next.

Actuarial Manager, Hong Kong (Life)

Opportunities in Asia, Asia (Life & GI)

Up to HKD 850,000 pkg

Dependent on Experience

Can you speak Chinese? Our client requires a qualified Actuary (FIA/FSA/FIAA) to lead a team in Hong Kong. You will need strong communication skills in Chinese and English as you will be working on a range of projects with people across the industry. If you have Financial Reporting experience and ideally MCEV, Solvency ll or IFRS knowledge we would be keen to hear from you.

If you are a nearly/newly qualified Actuary looking to move to Asia and wondering what opportunities the market can offer you, we can help talk through the requirements our clients have i.e. skills, languages and the salary range you can expect in different countries. Please get in touch to hear about opportunities in Hong Kong, China, Singapore, Malaysia, Indonesia, Thailand and India.

Clare Bethell, Senior Consultant Graeme Braidwood, Consultant Hallie Chin, Consultant

clare@highfinancegroup.co.uk graeme@highfinancegroup.co.uk hallie@highfinancegroup.co.uk

+44 (0) 207 337 8829 +44 (0) 207 337 8820 +44 (0) 207 220 0178 December 2013 • THE ACTUARY 47 www.theactuary.com

ACT.12.13.047.indd 47

26/11/2013 15:58

Appointments

We can help you

FIND YOUR PERFECT JOB

JOBS BY EMAIL CV UPLOAD TAILORED SEARCHES MORE JOBS THAN ANY OF OUR COMPETITORS OR YOUR PERFECT CANDIDATE ACCESS TO JOB SEEKERS PRINT ONLINE EMAIL ONLINE JOB SEEKERS & INSTITUTE MEMBERS

42

www.theactuaryjobs.com Contact the recruitment team on 020 7880 8541

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

ACT.12.13.050.indd Actuary_A4_ad 2.indd421

15:25 26/11/2013 15:23

www.theactuaryjobs.com PENSI ONS I NVESTM ENT DC PENSIONS LEADER

PENSIONS LEADERSHIP

MARKET-FACING SCHEME ACTUARY

£ excellent package

up to £120k + bonus + benefits

£ excellent package

PENSIONS LONDON

STAR1722

PENSIONS EDINBURGH

STAR1704

PENSIONS LONDON

STAR1517

Seeking a pensions leader to manage a DC team, creating and implementing a strategic vision and taking responsibility for the P & L. Please contact us for further details of this exciting opportunity.

Seeking a qualified actuary with strong pension consulting skills (corporate, trustee or a mix) to assume responsibility for a small portfolio of clients, bringing energy and drive to the team to increase its presence in the Scottish market.

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

DIRECT ENTRY PARTNER

DIRECTOR LEVEL PENSIONS

STRATEGIC RISK CONSULTING

£ excellent package PENSIONS LOCATION UPON APPLICATION

£ excellent package STAR1684

£ excellent package

PENSIONS LOCATION UPON APPLICATION

STAR1653

PENSIONS LONDON

STAR1516

We are currently working on a direct entry partner role with a leading pensions consultancy.

Excellent pension consulting skills essential, with specialist skills an added advantage. Please contact us for further details.

We are currently working on an exciting opportunity for a talented and driven indivdual to take the next step in their pensions consulting career. Please contact us for more details.

Leading pensions consultancy seeks qualified actuaries to join a high-quality team providing project based risk solutions to flagship corporate clients.

PENSIONS CONSULTANT - NEW YORK

MARKETING ACTUARY

BUSINESS DEVELOPMENT ACTUARY

$ excellent + bonus + benefits

up to £90k + bonus + benefits

up to £80k + bonus + benefits

PENSIONS NEW YORK

STAR1700

PENSIONS LONDON

STAR1686

PENSIONS LONDON

STAR1685

Exciting role with a growing organisation seeking a qualified actuary to act as lead for the US pensions market. Please contact us for more details.

Seeking a qualified actuary with a gift for communications and deep knowledge of pensions de-risking. Experience of writing for broadsheets or the trade press an advantage.

Requires an innovative thinker and networker.

Seeking business development specialist with strong understanding of DB risks and the UK pensions market. Relationship skills are key.

A commercial background in banking or the capital markets is ideal.

IN-HOUSE PENSIONS

LONGEVITY ACTUARY

MANAGEMENT CONSULTANCY

£ excellent + bonus + benefits

£ excellent + bonus + benefits

£ excellent + bonus + benefits

PENSIONS LOCATION UPON APPLICATION

STAR1610

LIFE & PENSIONS LONDON

STAR1703

PENSIONS BIRMINGHAM

STAR1377

We are currently working on an in-house role for a high-quality pensions actuary. This is an exciting opportunity to join a passionate and award-winning team of professionals so contact us now for more details.

Our client is seeking a longevity actuary to create bespoke actuarial models and take a lead in developing new business. Please contact us for more details.

Global firm seeks qualified actuary to provide management consultancy services to corporate sponsors of pension schemes. You will provide specialist advice on risk solutions and scheme financing to a wide range of clients.

IN-HOUSE PENSIONS RISK MANAGER

INVESTMENT AND PENSIONS CONSULTANT

ACTUARIAL ANALYST

up to £60k+ bonus + benefits

£ excellent + bonus + benefits

up to £47k + bonus + benefits

PENSIONS LONDON

STAR1691

As Pensions & Insurance Manager, you will contribute to the risk management of a number of in-house pension funds with different liability profiles.

PENSIONS & INVESTMENT LONDON

STAR1640

INVESTMENT LONDON

STAR1580

Our client seeks a strong client-facing consultant with both investment and pension consulting experience to assist with various projects and business development.

Leading independent investment consultancy is seeking a part-qualified actuary to provide practical support to client facing consultants.

You will conduct performance analysis reviews for a range of investment portfolios.

LDI LEADER

NON-LIFE ALM

LIFE ALM

£ partner level package

£ excellent + bonus + benefits

£ excellent + bonus + benefits

STARVACANCIES INVESTMENT LONDON

STAR1732

Investment house seeks innovative LDI specialist with strong client-facing skills to lead the sale and delivery of cutting-edge solutions.

STAR1702

Leading consultancy seeks a high-calibre individual to provide investment advice to clients within the insurance sector, identifying and articulating investment needs and objectives and developing successful client relationships.

INVESTMENT & LIFE LONDON

STAR1710

Leading consultancy seeks qualified life actuary with specialist ALM skills to lead on a wide range of client projects. Alongside strong technical skills, you will have a flair for business development and client relationship management.

Antony Buxton FIA Anton

Louis Manson Lou

Irene Paterson FFA Ire

Lance Randles MBA La

MANAGING DIRECTOR MANAG

MANAGING DIRECTOR MAN

PARTNER PAR

ASSOCIATE DIRECTOR AS

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

ACT.12.13.049.indd 51

INVESTMENT & NON-LIFE LONDON

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

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

September 2013 • THE ACTUARY www.theactuary.com M +44 7889 007 861 E lance.randles@staractuarial.com

51

26/11/2013 16:34

Appointments NON-LIFE SENIOR RISK MANAGER

PRICING DIRECTOR

up to £120k + bonus + benefits

up to £150k + bonus + benefits NON-LIFE SOUTH EAST

HEAD OF GI PRACTICE

STAR1692

NON-LIFE LONDON

£ to attract the best STAR1701

NON-LIFE SOUTH EAST

STAR1730

We are working on an exciting new position with a leading client. If you are a qualified non-life actuary looking to take on greater responsibility in a leadership role, please contact us for more details.

Our client seeks a qualified non-life actuary to take up a varied role. You will contribute to thought leadership, develop and launch new initiatives and lead, manage and motivate fellow team members.

Leading actuarial consultancy seeks a highquality non-life actuary with strong technical skills to lead a growing practice. Please contact us for more details of this exciting new opportunity to build and develop a winning team.

GLOBAL LIABILITY PRICING LEADER

NON-LIFE MODELLING EXPERT

ACTUARIAL LEAD - GI CAPITAL MODELS

CHF excellent + bonus + benefits

up to £140k + bonus + benefits

CHF excellent + bonus + benefits

NON-LIFE ZURICH, SWITZERLAND

STAR1727

NON-LIFE SOUTH EAST

STAR1542

NON-LIFE ZURICH, SWITZERLAND

STAR1705

Seeking a qualified non-life actuary with strong leadership skills to drive strategic business insight, profitable growth and the development and implementation of actuarial standards and tools for the liability class of business.

Our client is seeking a qualified actuary to develop its general insurance capital and reserving capability. A natural and gifted communicator, you will have experience of coding and building capital models.

International financial services firm seeks a qualified non-life actuary to take overall responsibility for capital model development, calibration and production for GI insurance risk globally.

CAPITAL MODELLING LEAD

EXCLUSIVE - CATASTROPHE CONTRACT

PRICING MANAGER

up to £110k + bonus + benefits

£ contract rates

£ excellent + bonus + benefits

NON-LIFE LONDON

STAR1707

NON-LIFE LONDON/SOUTH EAST

STAR1669

NON-LIFE LONDON

STAR1725

International insurance and reinsurance group seeks a capital modelling lead with significant ReMetrica experience. Contact us now for more information regarding this exciting role.

We are currently working on an exciting new contract role for a catastrophe modeller with experience of the RMS and/or AIR modelling platforms. Please contact us for more information.

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

EXCLUSIVE - NON-LIFE ACTUARY

RISK CONSULTANT

NON-LIFE CONSULTANCY

£ excellent + bonus + benefits

£ excellent + bonus + benefits

£ excellent + bonus + benefits

NON-LIFE LONDON

STAR1672

NON-LIFE LONDON

STAR1706

NON-LIFE LONDON

STAR1659

Are you an actuary with ideas? Star Actuarial Futures has an exclusive role for a part-qualified or qualified actuary with a small but influential player in the UK non-life market.

We are currently working on a fantastic opportunity for a part-qualified or qualified non-life actuary to take a lead role in the delivery of a variety of client projects within a major risk consultancy.

If you are a part-qualified or qualified actuary with experience of capital, reserving or pricing models, then join this leading consultancy where you will apply your skills in projects reaching beyond traditional actuarial boundaries.

NON-LIFE PRICING OPPORTUNITIES

REINSURANCE ACTUARY

PRICING ACTUARY

£ excellent + bonus + benefits

up to £70k + bonus + benefits

up to £70k + bonus + benefits

NON-LIFE LEEDS

STAR1675

We are currently working on exciting opportunities for part-qualified and qualified non-life actuaries with experience in GI pricing.

Contact us now for more information regarding these roles.

NON-LIFE LONDON

STAR1670

NON-LIFE SOUTH EAST

STAR1626

Seeking a part-qualified reinsurance actuary to provide actuarial support to the brokers as an integral part of the process of designing and placing reinsurance structures for various classes of business.

Our client is seeking a talented individual with non-life insurance experience to contribute to the development and execution of the pricing strategy for its Home and Motor product lines.

NON-LIFE IN SYDNEY

NON-LIFE IN CANADA

NON-LIFE CONSULTING

£ excellent package

$ excellent + bonus + benefits

ZAR Excellent + bonus + benefits

S TA R VA C A N C I E S NON-LIFE SYDNEY

STAR1723

Leading global consultancy seeks partqualified or qualified non-life actuary to lead on a wide range of client projects within its Sydney office. Risk and capital experience is of particular interest.

48

STAR1709

Our client has two fantastic opportunities for qualified non-life actuaries to join its Canadian practice at Manager and Senior Manager level to provide a complete range of consulting services to P&C clients.

NON-LIFE JOHANNESBURG

STAR1712

Are you an ambitious actuary with strong technical ability and experience in consulting?

Our client is looking for qualified non-life actuaries to join this growing team. An excellent career opportunity for the upward bound actuary!

Antony Buxton FIA Anton

Lance Randles MBA La

Paul C Cook

Peter Baker

MANAGING DIRECTOR MANAG

ASSOCIATE DIRECTOR AS

SENIOR CONSULTANT

SENIOR S SEN IOR CONSULTANT

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

ACT.12.13.048-49.indd 48

NON-LIFE CANADA

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

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

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

26/11/2013 13:05

www.theactuaryjobs.com LIFE FINANCIAL REPORTING ACTUARY

ACTUARIAL MODELLING MANAGER

BMD excellent + bonus + benefits

up to £110k + bonus + benefits

LIFE BERMUDA

LIFE SOUTH EAST

£ excellent + bonus + benefits STAR1662

LIFE LONDON WITH TRAVEL

STAR1724

Seeking a part-qualified or qualified life actuary to be responsible for the development and maintenance of actuarial valuation systems, including the internal capital model (MoSes) and valuation database (TSQL).

Our client has an exciting opportunity for a part-qualified or qualified actuary to design, structure and develop actuarial code within Prophet and to review existing models.

International management consulting firm that combines deep industry knowledge with specialised expertise in strategy and operations risk management seeks extraordinary actuaries.

ALM ACTUARY

PRICING LEADER

CHANGE LEADERSHIP

£ excellent + bonus + benefits LIFE LONDON

£ excellent + bonus + benefits

£ excellent + bonus + benefits STAR1681

LIFE LONDON

STAR1697

LIFE BRISTOL

STAR1729

Leading bank seeks a qualified life actuary with strong technical ALM skills and exceptional communication skills to join a high-quality team providing cutting-edge solutions to life insurers.

Please contact us for more details.

Our client is seeking a qualified actuary to coordinate the production and sign-off of internal and external pricing metrics for its retirement income pricing team.

Global financial services company has a fantastic opportuniy for a qualified actuary to join a fast-paced environment where you will lead on projects that involve significant change to actuarial systems and processes.

LIFE WITH PROFITS

CHANGE PROGRAMME ACTUARY

RESEARCH AND PRICING ACTUARY

£ excellent + bonus + benefits

up to £85k + bonus + benefits

up to £80k + bonus + benefits

LIFE LONDON

STAR1696

LIFE MIDLANDS

STAR1718

LIFE LONDON

STAR1719

Seeking a qualified actuary with experience of financial reporting and/or actuarial modelling within a life insurance company to develop a deep understanding of the management of the with-profits business.

Take this opportunity to manage the change process for a large life insurer. Strong communication and project management skills are essential, along with up-to-date knowledge of actuarial techniques.

With experience of the UK protection market, and superb communication and relationship building skills, this is an ideal career move for the ambitious part-qualified or qualified life actuary.

PRICING ACTUARY

CAPITAL MANAGEMENT ACTUARY

PRINCIPAL AUDITOR

£ excellent + bonus + benefits

up to £72k + bonus + benefits

£ excellent + bonus + benefits

LIFE LONDON

STAR1698

LIFE MIDLANDS

STAR1717

LIFE LONDON OR SCOTLAND

STAR1646

Seeking a part-qualified or qualified actuary with pricing, financial reporting or actuarial modelling experience to take up a key role within the pricing function of a global insurer.

A leading life company is seeking a qualified life actuary with strong influencing skills to join its capital management team and drive changes in processes and strategy.

Leading financial services company is seeking a qualified life actuary to provide a valueadding service in the delivery of audit reviews of processes, controls and systems across the Group.

MODELLING ACTUARY

LIFE MODELLING ACTUARY

ALM CONSULTANT

up to £60k + bonus + benefits

ZAR excellent + bonus + benefits

HKD excellent + bonus + benefits

LIFE BRISTOL

STAR1634

Major life company is seeking a qualified actuary to manage the control and gate-keeping processes involved in development of actuarial models.

LIFE JOHANNESBURG

STAR1713

Our client is looking for a qualified life actuary with strong Prophet modelling skills and a flair for business development to join this growing team. Contact us for more information.

LIFE HONG KONG

STAR1688

Seeking a qualified life actuary with a detailed understanding of Asset Liability Modelling to provide hands-on modelling and development skills for existing and potential customers.

Star Actuarial Futures Ltd is an employment agency and employment business

STAR1674

MANAGEMENT CONSULTANCY - INSURANCE

w w w. s t a r a c t u a r i a l . c o m SENIOR HEALTH ACTUARY - DUBAI

LIFE IN CANADA

LIFE CONSULTANCY - PARIS

£ excellent package

$ excellent + bonus + benefits

€ very attractive

LIFE DUBAI

STAR1720

A superb international opportunity and career move for an experienced and technically proficient healthcare actuary who keeps abreast of market developments. Experience in product development and pricing is essential.

STAR1726

Leading consultancy seeks qualified life actuary to take up a position as a Senior Manager. The successful candidate will have the insight and experience to deliver high-quality strategic advice within the Canadian market.

LIFE PARIS

STAR1721

Leading global consultancy has a number of opportunities for part-qualified and qualified life actuaries to join a growing team in Paris and take the lead on a wide range of client projects.

Louis Manson Lou

Irene Paterson FFA Ire

Peter Baker

Clare Roberts

MANAGING DIRECTOR MAN

PARTNER PAR

SENIOR CONSULTANT

SENIOR CONSULTANT

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

ACT.12.13.048-49.indd 49

LIFE CANADA

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

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

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

49

26/11/2013 13:05

Appointments United Kingdom

United Kingdom General Insurance Head of Risk/Senior Risk Actuary x 2 London Paul Francis Up to £140,000 + Bonus + Benefits I currently have two mandates for London market clients searching for a broad-skilled, GI orientated Actuary to take on senior risk positions. Must have excellent communication ability and knowledge of over-arching factors affecting risk management.

Underwriting Risk & Analysis Actuary London Rick Davis £95,000 + Bonus + Benefits A global insurer requires a GI Actuary to undertake a portfolio analysis and advisory role. Working alongside underwriters you will perform profitability studies across numerous Lloyd’s classes and use the results to advise on future underwriting strategy.

Reserving, Pricing & Capital Roles London Rachel Kelly From £40,000 to £85,000 Part qualified & nearly/newly qualified actuaries - we have a wide variety of attractive positions for all skill sets: reserving, pricing, capital and risk across Lloyd’s syndicates, managing agents, reinsurers and broker firms. Call us now for more details.

Pricing Analyst East Anglia Sarah Robins £30,000 - £50,000 I am looking to recruit a number of Senior Pricing Analysts into the regional office of this large retail insurer. You must have strong analytical skills. Personal lines pricing experience is desired but not essential.

Contracts - GI Pricing Actuary North West England Elise Salter £600 - £1000/day A large retail insurer is seeking a Pricing Actuary to join their growing team for a 6-12 month contract. The role will be to work as part of a project team to deliver a new pricing model. Candidates must have experience of personal lines pricing.

Capital Modeller London Elise Salter £700 - £900/day Our London market client is seeking a Capital Modeller to join their team on a 6 month contract. Suitable applicants must be expert level ReMetrica users. The role will support the on-going development of the Group’s capital model.

Life Insurance Head of Protection South East Clare Nash £130,000 + Superb Package EXCLUSIVE APPOINTMENT: - My client seeks a qualified Actuary to grow their market leading team. You will have substantial pricing experience and enjoy operating at the highest level. This appointment has a real entrepreneurial element.

Pricing Actuary City/South David Parker £95,000 + Market Leading Package Do you have a combination of both technical pricing and managerial skills? A global insurer seeks both nearly/newly and qualified actuaries for their expanding products division. Annuities or group protection exposure is advantageous but not essential.

Head of Reporting London Richard Howard £85,000 - £100,000 + Bonus + Benefits Excellent opportunity for a Senior Reporting Actuary to join this leading organisation in London/South East. Managing three senior actuaries and a number of actuarial students you will be responsible for the delivery of MCEV and IFRS.

South East Capital Actuary £85,000 + Excellent Package Clare Nash An usual chance to work with some of the best talent in the industry. My City based client seeks a qualified Actuary with ideally five years of post-qualified experience to play a pivotal role in cutting edge work. Excellent exposure to senior players.

Contracts - Life Senior Analyst South East Rob Bentham Up to £800/day Our client is looking for additional actuarial support within a role that will focus on the risk scenarios production for the ICA & Solvency II. Capital optimisation techniques and systems will also be part of the remit. Quantitative finance experience is essential.

52

Actuarial Analyst South East Rob Bentham Up to £300/day Our client is looking for a part qualified Actuary to join their busy team. The department undertakes all actuarial work for the group, main areas of work include products, valuation, bonuses and modelling. Excellent communication skills are essential.

General Insurance - UK

Contracts - GI - UK

Life Insurance - UK

Paul Francis 0207 649 9469 Rick Davis 0207 649 9353 Sarah Robins 0207 310 8552 THE • September 2013 BenACTUARY Pitt 0207 310 8719 www.theactuary.com Rachel Kelly 0207 310 8579

Elise Salter

Clare Nash David Parker Richard Howard

0207 649 9355

Contracts - Life - UK Rob Bentham

0207 649 9351

0207 649 9350 0207 310 8649 0207 649 9356

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

Ben ACT.12.13.052-53.indd 52

26/11/2013 12:49

www.theactuaryjobs.com United Kingdom

Europe International Life Product Development Actuary Germany Manuel Lovell €€€Competitive + Bonus My client is looking for an Actuary with strong experience in product development across a range of products in life and health (unit-linked, annuities etc...). You will be responsible for the design of new products on a global basis as well as be involved in senior management discussions.

P&C Actuary Holland Julien Fabius €85,000 + Benefits A global insurance player is looking to hire an experienced P&C Pricing Actuary to work in their Dutch headquarters. An important role to help the organisation achieve their targeted commercial growth. The role offers exposure to senior management, you will also be involved in global pricing strategy meetings.

Actuarial Opportunities Dublin, Ireland Patrick McMahon €60,000 - €120,000 In order to meet new regulatory deadlines, I’m working on a number of roles across capital, risk, pricing and reserving in Dublin. My clients range from personal and commercial lines insurers to large life insurance businesses.

Head of Capital Modelling/ERM Zurich, Switzerland Audrey Dresen CHF180,000 - 230,000 Reinsurance firm are looking to create their ERM team and would like someone with extensive capital modelling expertise to lead this team. The right candidate must have international regulatory knowledge and be able to coordinate a team across the globe.

Head of Reserving, Health & Protection Emérique Opou

Solvency II Projects Benjamin Moses

Paris, France €90,000 + Bonus

You will be joining a leading insurance company. You will manage a team of six, specialised in reserving, activities will also involve the 3 pillars of Solvency II. Experience in reserving (H&P) is essential as well as management experience.

Ireland & Mainland Europe Up to €1200/day

With fresh announcements on Solvency II likely to prove a catalyst for initiation & completion of projects in 2014, insurance and reinsurance companies are looking for qualified and highly skilled actuaries and risk professionals around Europe. Please call me to find out more.

Oliver James Associates in Ireland By Patrick McMahon & Benjamin Moses Solvency II continues to loom large on the horizon on both Life and GI businesses and as such we’re working on variety of roles in risk and capital, particularly on a contract basis.

Dublin seems to be establishing itself as an excellent place for an Actuary to work; competitive salaries, predominantly large insurance businesses, diverse markets and all of this centred in a vibrant and friendly city.

Ireland was hit by some of the worst economic times in recent history, however, the green shoots of regrowth are starting to show through in the market and this is epitomised by the country’s recent exit from the bailout programme.

Oliver James Associates have been successfully operating in Ireland for six years now; providing specialist actuarial recruitment within life insurance, general insurance, investments and consulting, ranging from student to Chief Actuary level, on both a permanent and contract basis. We are pleased to report that the recruitment forecast for the coming year is looking good.

Within the life market we have seen a number of companies increasing investment in their Irish operations, which has resulted in exciting opportunities within reporting and pricing. In addition, Dublin continues to be a centre for variable annuities, which brings with it positions that are hard to find elsewhere.

As the GI market is still a growth area for Ireland, a number of companies have been bolstering their actuarial functions across all disciplines. However, there is still a shortage of GI actuaries in Ireland, which has created a high demand for people with relevant experience and could provide excellent opportunities for anyone starting their actuarial career.

+33 1 76 77 46 30

Ireland Benjamin Moses Patrick McMahon

E patrick.mcmahon@ojassociates.com T +351 1 685 2413 E benjaminmoses@ojassociates.com T +44 207 310 8793

/,)( &21)(5(1&( (;+,%,7,21 35,=( '5$: :,11(56 It’s been a few weeks since we returned from the Life conference where our sweet treat bonanza was a real hit. It was great to meet so many of you. Well done to those lucky spot prize champagne winners and a bigger congratulations to the following prize draw winners: • iPhone 5s - Arif Sethi • Galaxy Gear Smartwatch - Carolyn Clark • Fortnum & Mason Hamper - Suzanne Bromiley Hope to see you again next year!

For any questions about the Life & Investments market or if you would like some confidential advice on your career, please do call Clare Nash, Associate Director of Life & Investment Actuarial 020 7649 9350 | cn@ojassociates.com

Germany

Benelux

France Emérique Opou

We look forward to working with you in the 2014 and wish you all a happy Christmas and New Year.

+44 207 310 8793 +353 1 685 2413

Niels van Nieuwkerk Julien Fabius Laurence Baken

+31 20 716 8327 +31 20 716 8450 +32 24 012 249

Manuel Lovell Emina Biscevic Alessio Montaruli

SwitzerlandSeptember 2013 • THE ACTUARY Audrey Dresen

ACT.12.13.052-53.indd 53

+49 8922 061 003 +49 89 3803 8965 +49 89 2109 3339 53

www.theactuary.com +41 43 508 0444

26/11/2013 12:49

Appointments

Asia CRO - Life Hong Kong Gary Rushton Flexible My client, a leading international brand within the life insurance sector, is currently looking for a relatively experienced Actuary to join an intimate team to establish their risk framework covering FRM and ERM. Ambitious, recently qualified actuaries apply!

CRO - Life Malaysia Gary Rushton Flexible - Dependent on Experience High profile CRO position reporting directly to the CEO to take responsibility of the risk management, legal and compliance of my client’s Malaysia operation. The successful candidate will be qualified with extensive FRM and board level exposure.

Chief Pricing Actuary - Life Hong Kong Gary Rushton £££Competitive One of the most dynamic life businesses in Asia are currently looking for an experienced Actuary to provide technical and strategic leadership for pricing and product development initiatives across Hong Kong and South East Asia.

Corporate Development Director - Life Hong Kong Gary Rushton £££Competitive I am looking for a technically strong, commercially minded Actuary to work within a CEO office to focus on key corporate development/strategy with work ranging across market fluctuations and M&A activity. IB or insurance background.

Director of Inforce Management - Life Hong Kong Gary Rushton £££Competitive My client is looking for a senior qualified Actuary to act as an internal consultant for their regional office in Hong Kong to drive the value and efficiency of their current inforce business across the APAC region. Strong reporting experience a must.

ERM Actuary - GI Singapore Toby Weston £££Competitive Global insurance business seeks Senior ERM & Capital Actuary to develop and execute risk and capital management strategies across the Asia region. Extensive non-life actuarial experience and commercial acumen required, Asian languages preferred.

Moving to Asia from the UK - Case Studies (Part 2) By Jonny Plews As a follow up to September’s issue, please find below the remaining interview answers. The panel is made up of Voon Chong (FIA 2012, PwC), Graham Watson (FIA 2012, Deloitte) and Matthew Price (ACA 2000, Prudential), all of whom are now based in Asia.

How have you (and your family) settled in to life in Hong Kong/Singapore?

Graham: Hong Kong now feels very much like home. The British influences in Hong Kong are still evident, e.g. street names and businesses, so there are always references to the UK providing a degree of familiarity.

Matt: It has been far easier than my wife and I had expected. Our key requirements were finding a home and securing nursery provision for our daughter, and we sorted both of these out in the first few weeks. The biggest cultural change has been sharing our home with a live-in domestic helper (which is completely normal in HK), but we wouldn’t be able to hold down full-time careers without this service. The use of internet telephone and video calling services has also made it easy to keep in regular contact with family and friends; in fact people probably get more calls from us now than when we were in the UK. We really enjoy the lifestyle here and have all the benefits of both living in a capital city and at the same time living two minutes from the beach at Discovery Bay. There are a lot of people from Europe and the US, and the majority of HK work colleagues speak excellent English, so we have found it very easy to build up a new group of friends. At the risk of sounding like a “Tiger Parent” (HK version of a pushy parent), I am also very excited that my daughter will have the opportunity to learn both English and Mandarin at school, and the potential benefits this will provide to her later on in life.

Voon: We’ve settled in really well. Hong Kong has been very welcoming to expats, and it’s easy to settle in when the quality of life is so high. Almost everything is convenient and runs very efficiently. There’s also so much variety in Hong Kong and the rest of

Asia is practically at your doorstep. English is widely spoken and it’s easy to meet people.

Has the job lived up to expectations?

Graham: Yes, in all ways and more. I’ve got involved in areas I’d previously not thought would be possible for years to come, providing a challenging working environment with great career development prospects.

Matt: My new role in HK (a regional head office role for a multinational insurance company) is both challenging and enjoyable. I work with colleagues based in the regional office and across the 12 countries that the company operates in. The working ways in Asia are slightly different, but I think I have learnt the key differences in work culture and applied them to the way I work. People at the office here are very career-motivated, and are thus committed to continuously improve the reporting and forecasting deliverables to our stakeholders. I find that working hours are generally longer than in the UK, but I benefit far more from an easier commute - a 30 minute ferry ride to work compared to over an hour on the Tube in London.

Voon: In some ways, yes. I expected a steep learning curve and I got one. The work has certainly been interesting. There are lots of opportunities to work on many different things as you’d expect in a growing market with companies from all over the world. English is the main business language, but I find that most locals prefer Cantonese given the choice. People did warn me about long working hours, but it actually hasn’t been that unreasonable.

To see the full interviews for Graham, Matthew and Voon (as well as other interviews with Robert Gow of HSBC and Gareth Jones of Towers Watson) please visit our website (http://www.ojassociates.com/blog/making-the-move-to-asia-blog-33242014462).

To learn more about working in Asia please call Jonny Plews on +852 58049200 or email on jp@ojassociates.com

Asia

54

Jonny Plews +852 5804 9200 Gary Rushton +852 5804 9223 Toby Weston +852 5804 9042 THE ACTUARY • September 2013

Joanne Lim Philip Chau Leanne Leung

+852 5804 9225 +852 5804 9287 +852 5804 9070

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

www.theactuary.com

ACT.12.13.054-55.indd 54

26/11/2013 12:54

www.theactuaryjobs.com

United Kingdom

Meet some of the team...

Oliver James Associates has the largest and most integrated Actuarial team in the marketplace. Our team of over 30 consultants covers the major insurance hubs in Europe and Asia.

---------------------------------------------------------------------------------

CLARE NASH Life & Investments, Actuarial & Risk clare.nash@ojassociates.com +44 207 649 9350

Our consultants have developed an indepth technical understanding of the intricacies of the actuarial profession and can offer sound and confidential career advice.

On this page you can take a closer look at some of our team, however for a full list of consultants and more detail on their individual specialisms please visit our website. www.ojassociates.com/actuarial-team

ELISE SALTER GI, contract elise.salter@ojassociates.com +44 207 649 9355

Europe

PAUL FRANCIS GI Actuarial, Risk, Compliance & CAT Modelling paul.francis@ojassociates. com +44 207 649 9469

RICK DAVIS GI Actuarial & CAT Risk

RICHARD HOWARD Life & Investments, Actuarial

rick.davis@ojassociates.com

richard.howard@ojassociates. com +44 207 649 9356

ROB BENTHAM Life, contract & interim rob.bentham@ojassociates. com +44 207 649 9351

BEN PITT GI Actuarial & CAT Modelling ben.pitt@ojassociates.com

+44 207 649 9353

+44 207 310 8719

SARAH ROBINS GI Actuarial sarah.robins@ojassociates. com +44 207 310 8552

--------------------------------------------------------------------------------------------------------------------------

AUDREY DRESEN Switzerland, Actuarial, Risk & Compliance audrey.dresen@ojassociates.com +41 43 508 0444

JULIEN FABIUS Benelux, Actuarial

BENJAMIN MOSES European, Actuarial

EMINA BISCEVIC Germany, Actuarial

julien.fabius@ojassociates. com +31 20 716 8450

benjamin.moses@ojassociates.com +44 207 310 8793

emina.biscevic@ojassociates.com +49 893 803 8965

LAURENCE BAKEN Belgium & Luxembourg Actuarial laurence.baken@ojassociates.com +32 2401 22 49

EMÉRIQUE OPOU France, Actuarial & Insurance Risk emerique.opou@ojassociates.com +33 1 76 77 46 30

Asia

--------------------------------------------------------------------------------------------------------------------------

JONNY PLEWS Director, Asia jonny.plews@ojassociates. com +852 5804 9200

ACT.12.13.054-55.indd 55

GARY RUSHTON Head of Actuarial gary.rushton@ojassociates. com +852 5804 9223

TOBY WESTON GI Actuarial toby.weston@ojassociates. com +852 5804 9042

PHILIP CHAU Actuarial philip.chau@ojassociates.com +852 5804 9287

LEANNE LEUNG Actuarial leanne.leung@ojassociates. com +852 5804 9070

JOANNE LIM Actuarial joanne.lim@ojassociates.com +852 5804 9225

General Contact Details

Follow us

Email Web

LinkedIn: oliver-james-associates 2013 • THE ACTUARY 55 Twitter: September @OJAssociates

actuary@ojassociates.com www.ojassociates.com

www.theactuary.com

26/11/2013 12:54

Appointments www.the-arc.co.uk

The Actuarial Recruitment Company

A fresh approach

Pricing Manager London

General Insurance £Six figures plus good benefits

A qualified actuary with a London Market pricing background is needed

Actuarial Analyst London

General Insurance To £50K

pricing experience a must have. Ref: ARC26238

This small London Market operation is looking for a junior part qualified actuary to be involved with reserving, support for the capital model as well as business planning. The client is looking for a candidate with an excellent academic record who is progressing well with the actuarial exams. Very good communication skills will be needed as well as the ability to take on work and develop technical solutions for the business without extensive guidance from above.

Ref: ARC26212

Capital Actuary London

Capital Analyst London

for this established Lloyd’s business to lead a small pricing team across multiple lines of business. The role will involve team management, pricing support across multiple P&C lines, monitoring of underwriting controls, training of underwriters and input to M&A projects. Strong team and project management skills needed. Excellent technical ability and previous

General Insurance Circa £90K plus benefits

General Insurance To £40K

A new capital position has arisen for a qualified actuary to join a small

A junior part qualified actuary or a graduate who has some work

London Market team reporting into the Head of Capital. The role will

experience from an internship is required for a capital position in this

lead the model development work, assist in embedding the model

large blue chip London Market business. Academics will need to be

uses across the business and support regulatory submissions. Extensive

very strong with a 2.1 or above at degree level from a top University.

previous capital and Solvency II experience is needed across any

First rate communication and technical skills and good IT ability will be

modelling platform. Good project management and people skills are

important. Very good opportunities for future career progression within

required. Ref: ARC26237

the business. Ref: ARC26239

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

56

THE ACTUARY • September 2013 www.theactuary.com

ARC FP.indd 1 ACT.12.13.056.indd 56

21/11/2013 12:27 12:20 26/11/2013