The Actuary June 2016

JUNE 2016 theactuary.com

In conversation: Ben Kemp and Ann Muldoon The magazine of the Institute and Faculty of Actuaries

Working together to regulate the profession

Life Why the matching adjustment is vital to life insurance

Solvency II Regulation and the herd instinct

Risk Reducing uncertainty through expert judgment

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Contents

JUNE 2016

14

“Recent deaths owing to antibioticresistant infections are estimated at 50,000 per year in Europe and the US. What, then, does the future hold?”

22

28 UP FRONT 9

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

OPINION 4

Editorial Richard Purcell underlines the importance of regulation

5

Letters Actuaries discuss low interest rates and reserving for complaints

7

President’s comment In her final commentary, Fiona Morrison remains passionate in continuing to promote actuarial skills

8

CEO’s comment With the IFoA’s strategy review imminent, Derek Cribb describes the current actuarial landscape

13 Soapbox Paul Harwood suggests management risk should be considered as a category on its own, to the benefit of results

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

FEATURES

AT THE BACK

14 In conversation

34 Student

Ben Kemp and Ann Muldoon on how the IFoA and the Financial Reporting Council work together to regulate and support actuaries

18 Solvency II: Herd instinct and regulation as a risk Sam Mageed and David Prowse explore how Solvency II requirements to protect policyholders could create new risks

Planning a break proves an instructive experience for Jessica Elkin

35 Puzzles The latest cryptic crossword and Mensa puzzles

36 People/society news 38 Appointments and moves 38 Actuary of the future Sam Spink of PwC

22 Investment: Illiquid assets Can insurers profit from illiquidity premiums under Solvency II? Keith Goodby and Mary Boyle report

25 Risk: Ask the experts Structured expert judgment can be used to significantly reduce risk uncertainty, say Raveem Ismail and Scott Reid

31 Life: Adjust to fit

ONLINE Pension funding: an off-market approach Andrew Smith reviews an evening lecture with Jon Spain on how defined benefit calculations can benefit from an ‘off-market’ approach

Newsround

The matching adjustment is a vital measure for life insurance companies, says Sathish Umapathy

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Editorial editor@theactuary.com

Regulation and beyond Richard Purcell underlines the importance of professional standards, and how they create challenges and opportunities for actuaries

Other challenges, like the matching adjustment for less liquid liabilities, have proved more technical in nature and call for new approaches, according to Sathish Umapathy (p31). Of course, regulation can also have unintended consequences. David Prowse and Sam Mageed (p18) consider how Solvency II could create a herd instinct in allocating assets and actually diminish the ability of the insurance sector to withstand shocks.

They explain what this and other issues could mean for credit ratings.

While regulation provides an essential underpin for our work, the reality is that changes to regulation can also consume significant amounts of resources, and we risk getting distracted from the real business of identifying and managing emerging risks.

This month, Paul Harwood explains why he thinks he’s discovered a new risk (p13). Meanwhile, Matthew Edwards and Nicola Oliver (p28) look at one of the most serious problems according to the UK chief medical officer; the emergence of antibiotic-resistant bacteria, and the implications for mortality.

You may not find it the most enthralling topic, but regulation plays a fundamental role in our work.

From a professional perspective it can help drive higher standards and ensure we continue to serve the public interest. This month, Ben Kemp and Ann Muldoon (p14) discuss how the IFoA and the Financial Reporting Council work together to regulate actuaries, the planned changes to standards and key issues such as organisational culture.

On a more macro level, regulation can help address market inefficiencies and provide greater financial protection for customers. This creates both challenges and opportunities for us. European insurers know this only too well as they look to embed Solvency II. Here we have faced issues such as formalising expert judgment, as Raveem Ismail and Scott Reid (p25) reflect.

“Regulation can address market efficiencies and provide greater financial protection for customers”

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Richard Purcell Editor, @richardpurcell

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THE ACTUARY • June 2016 www.theactuary.com

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Opinion Letters to the editor

Reserving for complaints

Have your say online

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

An outdated model The pensions model that has served the actuarial profession for so many prosperous years is broken. The main reason is pure cost, driven in the main by interest rates that are the lowest in over 400 years of financial history.

Longevity is an issue too, but interest rates have broken the camel’s back. For years, actuaries have derived discount rates from the assets held in pension schemes. With interest rates in excess of, say, 5% this made a lot of sense. But nothing is ever stable in deregulated capitalism.

Macro economists argue that low interest rates are here to stay, given the imbalance between the quantum of assets and available investment opportunities in bonds. There is little the Bank of England can do about it.

There is just too much capital in the financial system looking for yield.

If actuaries knew that interest rates would stay at zero interest rate policy (ZIRP) levels for the next 10 years, would they advocate continued investment in bonds? The UK has a massive current account deficit and is also living beyond its means. Do gilt yields below 2% make sense?

Beyond the elevated and unpriced risk element of sovereign bond investment, at a time of global deflation, it does not make sense to invest in anything that delivers such a pathetic yield when the real world is crying out for investment.

Decent cash-generating businesses are starved of capital. Much of the infrastructure of the West is tatty, if not falling apart. Banks are not lending coherently. There are many ignored investment opportunities outside the financial system that have the capacity to generate returns in excess of 7%.

They may require higher management charges but the benefits in terms of discount rates, and ultimately pension sustainability, are enormous.

It is time for pension actuaries to drop the comforting memes of the past and get real. Otherwise the golden goose gets it.

Cathal Rabbitte 22 April 2016

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

I comment on Peter Morris’s letter in the The Actuary May issue (bit.ly/1Wu7pXQ).

He mentions consumer detriment where policyholders have been exposed to undue investment risk. As he says, policyholders then have a legitimate cause for complaint.

He seems to be implying that the compensation schemes will not threaten life office solvency: “not mitigated by compensation schemes”. On the contrary, I suggest that actuaries have been complacent about the threat of compensation schemes to lifeoffice solvency.

Perhaps they have assumed that if the investments ill-perform, that will be the problem of the policyholder rather than the life office. Actually it is the life office’s problem if the aggrieved policyholder can successfully seek redress in respect of his unsuitable policy. Such a complaint may well succeed if the policy was misrepresented to him. In fact, all he needs to do is to invoke the case of Savilles v CCL. This groundbreaking case means that if the policyholder proves that his policy was toxic, then his case is won irrespective of what he was told or not told.

The case of Plevin v Paragon has had the attention in the media, although Savilles is a far more important case in my view.

Generally speaking, it is assumed that a life office cannot be troubled by a ‘run on the bank’ situation. The reason being that the surrenders will be on a penal basis, so that the life office will have the funds available to meet the surrenders bill.

Complaints redress is another kettle of fish. The redress will be on a special compensation formula in every case. This means that the ‘pay-off bill’ for each case will be much more than an ordinary surrender value. We can think of these as ‘super surrender values’.

Life office valuations should have a built-in contingency rate for enforced redress compensation.

If there is good reason to suspect the redress stampede might emerge at some future date, then reserving for complaints could be a major component of the valuation reserves.

Anthony Pepper 9 May 2016

The editor welcomes letters of 300 words or less for print. Longer letters may be published online. The editor reserves the right to edit all letters for publication. Please email editor@theactuary.com. The deadline for the July issue is 21 June 2016.

June 2016 • THE ACTUARY 5 www.theactuary.com

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18/05/2016 09:40

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

President Comment

Shining the spotlight on promotion I can’t quite believe that I am sitting here penning my very last presidential article for The Actuary magazine. It is fair to say that my year has sailed by, and I have thoroughly enjoyed sharing with you some of the things that are important to me as a person, as an actuary and as your president.

I recall that, as I was preparing for my presidential year, I likened the role to that of the skipper of a boat, whose job it is to keep the vessel on the right heading by making small course corrections to optimise the voyage. As a qualified coastal skipper, I wondered what my nudges on the boat’s wheel might be, and how they might support the IFoA on its voyage.

For those of you who are regular readers of this column, you will be all too familiar with my passion for promoting the actuarial skillset. Like presidents before me, I have tried to shine the spotlight on this particular issue that I think is important to the profession, and which builds on the foundations laid by my predecessors.

Equally, I hope that I have given focus to an issue that others who follow me into leadership roles within the IFoA will recognise as crucial to our long-term sustainability.

One thing that has struck me, as I have met many of you at various meetings, conferences and award ceremonies, is your passion and enthusiasm for our profession. It is this passion and belief that I not only share but also find infectious and motivating.

For me, this goes to the heart of my presidential theme of ‘promote’. Yes, I firmly believe that we need to promote the value that actuaries can make to business, government and society.

But this isn’t about a president using a word as a focus for public speaking engagements. No, it is much more than that.

It is about you, our members, acting as ambassadors for this great profession of ours.

It is about promoting the value of actuaries, and about seeking out new opportunities in which to apply your actuarial skills.

In her final commentary, Fiona Morrison remains passionate in continuing to promote the value of the actuarial skillset I know it sounds a little trite, but you are the future. I firmly believe that everyone, no matter what stage they are at in their career – whether just starting out as a student, or nearing the end of their professional life – has a valuable role to play in promoting the profession and the value of the actuarial skillset.

To help us achieve this, we need a narrative.

We need to be able to articulate to the outside world what actuarial science is, what this means for us as practitioners and, crucially, what it means for the users and potential users of our skills and services.

Creating this narrative is something that we have begun to develop by engaging with the wider membership, and I look forward to seeing the output of that work over the coming months, and for it to become a familiar part of our everyday parlance.

For me, central to this narrative is the fact that, as actuaries, we are experts in understanding financial risk. More precisely, we take the long view to support long-term, sustainable decisions; we understand both sides of the balance sheet; we understand the importance of numbers – but, more than this,

“We need to be able to articulate to the outside world what actuarial science is, and what it means for us as practitioners”

we know how to communicate the implications of numbers in a business context.

When I’ve talked with members, many say that they aren’t a ‘typical’ actuary, because they can communicate. One suggested a fine for any actuary who refers to us as not being able to communicate! Don’t worry, I do not propose taking this proposal to Council or the Regulation Board, but it does highlight for me a bigger point.

Not so long ago, we would spend a great deal of our time doing the complex calculations, but now computing power frees us up to focus on the ‘so what’ and communicating it. That is what we are good at, and that is what we all need to promote.

So what does all this mean in reality?

It enables us to shine the spotlight on uncertainty, and to highlight the opportunities, as well as the risks, in business decisions.

It has been both an honour and a privilege to serve as your president. I have relished the opportunity of shining the spotlight on how we, as a community, can and must promote the actuarial skillset. But this is a spotlight that we cannot afford to switch off.

We all have a duty and a responsibility to keep the spotlight on promotion to help ensure the long-term sustainability and relevance of the profession to business, government and society.

Thank you! a

June 2016 • THE ACTUARY 7 www.theactuary.com

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23/05/2016 10:38

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

CEO Comment

What has changed in our environment?

Following great efforts from volunteers and the Executive, in June the IFoA’s Council will review final drafts of the refreshed IFoA strategy. We will start promoting details of it within the next few months, so I’ll take the opportunity now to talk a little about some of the background, the ‘state of the actuarial nation’, and how it has changed.

Student numbers in mature markets, such as the UK or US, have been broadly flat for the past three years. When compared with the demand in emerging markets, we see IFoA student growth of around 10%. This has led to a position where an ever-growing 59% of our students are now based outside the UK. At a more granular level, it will be no surprise that student numbers in pensions are in decline.

Life insurance is still a growth area in markets such as Africa and South-East Asia, having levelled out in South Asia and China.

Of the ‘big three’ practice areas, general insurance is the only one growing in all regions, though far more aggressively in non-UK markets. In smaller practice areas, we are seeing worrying declines in investment management, yet double-digit growth in risk management globally and in health in non-UK markets.

Emerging markets continue to open up, though in many cases there are few, or no, actuaries within the country. Commonly, for reserving and company accounts, the regulators will rightly insist on a qualified actuary, usually from a reputable actuarial qualifying body. However, in many developing countries, insurance products are priced off a tariff. The inflexibility of pricing means that many are excluded from purchasing fairly priced insurance products.

Increasingly, there is flexibility in what regulators accept as suitable levels of qualification. The Certified Actuarial Analyst will often be a higher level of qualification than currently required, and sets a ‘standard’ supported by the World Bank that may help capacity issues. We are seeing technical level analytical work being done by those for whom qualification as an actuary is not a real goal.

For example, within UK pensions, we have seen the creation of more non-UK back offices, with some organisations no longer recruiting UK

With the IFoA’s strategy review imminent, Derek Cribb provides some background on the current actuarial landscape

students on the Fellowship. Within insurance, the actuarial function is part of a wider team that can include IT and data analysts. In this context, we can see more opportunities for members qualified at the appropriate level, though often not as an actuary. The overlap into data analytics and IT is a clear opportunity, with scope to develop accreditation based around our core qualifications. Growth in non-core areas may benefit from a more collaborative approach with other organisations, whether in risk management, big data or broader financial fields.

Technology is accelerating business change. Threats and opportunities will not only crystalise more rapidly but can also disappear at a similar pace. Other professionals will seek to expand into common areas. The quality of our members, their education and business relevance is therefore key to the longevity of the profession.

Internationally, we have stronger and more productive relationships with other actuarial bodies. We have increased the number of exemption agreements with world-leading universities, engaged more with regulators and finance ministries in many of our priority

“The reputation of actuaries as ethical, regulated professionals is possibly at its highest for many years”

8

regions, and have a far greater understanding of where the varying levels of actuarial skills are most needed. Testament to the stronger international profile is the unprecedented number of non-UK members on Council, and indeed the presidential team.

Our reputation has moved onwards and upwards over recent years. The IFoA’s regulatory capability has matured, highlighted by a strong relationship in the UK with the Financial Reporting Council (see feature, p14).

The reputation of actuaries as ethical, regulated professionals is possibly at its highest for many years, though, with widening roles for our members, there is potentially a greater risk to maintaining this. The IFoA is sought out not just to respond to consultations but also to help frame them. We are increasingly invited to join the working groups of our key stakeholders, and are more responsive and consistent in our external engagement.

Our surveys suggest that the IFoA should leverage its reputation as an independent and expert organisation to take stronger positions than it currently does, in the public interest.

It would be wrong to suggest that we have moved on while others have stayed still. The global landscape of the profession changes continuously, and our strategy must adapt to ensure our sustainability. I look forward to discussing the new strategy with many of you at events over the coming months. a

THE ACTUARY • June 2016 www.theactuary.com

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23/05/2016 09:14

News ARIAL PROFESSION

Upfront David Spiegelhalter explores ways of communicating risks and uncertainty On 4 May, the IFoA held its Spring Lecture in London, delivered by Professor Sir David Spiegelhalter OBE FRS (pictured right), an expert on probability and statistics.

Spiegelhalter is a distinguished British statistician and Winton Professor of the Public Understanding of Risk in the Statistical Laboratory at the University of Cambridge. He was also recently elected as an IFoA Honorary Fellow and was presented with his award at the start of the lecture from IFoA president Fiona Morrison.

An audience of over 200 attended the lecture at the British Library, which was also viewed at almost 300 locations around the world – from Bermuda to Australia – via the livestream.

In his lecture, Spiegelhalter stressed the importance of understanding the beliefs and concerns of target audiences when communicating risks, and tailoring messaging accordingly.

The way probabilities are presented can make a difference to the way an audience perceives them and, ultimately, how they will make decisions.

Spiegelhalter feels very strongly that there is an ethical duty to provide balanced and clear information. To enable audiences

to fully understand the risks being communicated, and lessen the chance of misinterpretation, he suggested finding a ‘common language’ to allow the public to decide reasonable risks for themselves. He concluded the lecture by stating that the public, media, professionals and

policymakers have the right to receive quantitative evidence in a way that is not manipulated and that is appropriate for the decision being faced.

The Spring Lecture also provided the opportunity for Finlaison medallist Adrian Waddingham CBE to formally thank the profession for this honour. Waddingham received his medal at the IFoA Awards Dinner in March in recognition of the service he has given to the actuarial profession, including the prominence he gave to the profession in his recent service as Sheriff of the City of London.

Morrison also presented an Honorary Fellowship to Dr Madhavi Bajekal, senior research fellow at University College London.

Bajekal is a longstanding member of the IFoA’s Mortality Research Steering Committee, which has involved her leading on a number of events and seminars that have supported the IFoA’s research and policy interests.

Watch the Spring Lecture online at bit.ly/1YcLyBa

Secondary annuity market draws closer, but expectations unrealistic Government and regulator plans for the secondary annuity market are progressing. The policy, which will give customers the opportunity to sell an existing annuity in order to access the new pension freedoms, is due to launch in April 2017. The consultation procedure is now well under way, with a number of parties calling for input on the legislation, tax framework and practical rules and guidance. The IFoA is in the process of responding to these consultations, providing the actuarial perspective on this important policy initiative.

The IFoA has also commissioned a research survey from YouGov, which found that 68% of respondents (UK pensioners) would be unlikely to cash in their annuity for a lump sum. Some additional findings from the research were as follows: ● Respondents said being able to sell their annuity was a good idea in general, but not necessarily a good idea for themselves

● Younger age groups and the less financially secure reported being more likely to sell their annuity ● 55% reported that they didn’t know what they would do with the lump sum received were they to sell.

Interestingly, respondents said they would seek to receive, on average, 94% of the value of their annuity as a cash lump sum if they were to sell their policy. This amount could be significantly in excess of the offers made by potential buyers. Equally, for the 54% of respondents who said they would seek financial advice before making this decision, the average price respondents said they would be willing to pay was £162, which could be well below the cost of such advice.

Over the consultation period and until the launch in April 2017, the IFoA will be involved in informing the debate around the secondary annuity market – not only by taking part in the formal consultation but also by meeting key government, industry and regulatory stakeholders.

View the full research results at bit.ly/1O2iCeJ

June 2016 • THE ACTUARY 9 www.theactuary.com

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23/05/2016 09:15

News

Accredited programmes: what do they mean for employers?

As summer approaches, the current cohort of graduates will complete their accredited degrees and launch their newly acquired skillsets into the world of employment.

Following the 2004 Morris Review, and recognising the need for a greater level of diversity in the way actuaries operate, the IFoA encourages universities to introduce innovative practices.

Examples include: linking diverse areas of knowledge to broaden understanding; varying assessment methods to fully develop subject awareness; introducing workplace IT programmes and simulations; using current practitioners as teaching staff; and encouraging students to take paid long-term work placements.

Universities now deliver programmes that provide greater opportunity to students and consequently give actuarial employers access to a much broader range of employees.

The following are just some of the ways in which universities have embraced the challenge.

10

Nanyang Technological University, Singapore (pictured) recognises the importance of computing skills in actuarial work and has introduced an actuarial computing module to teach basic programming skills to their actuarial students.

Understanding that the actuarial examinations contain a step up from technical-oriented modules, to more strategic, more application-oriented modules, they introduced an actuarial management module as a bridge for students towards the higher level actuarial examinations.

Queen’s University Belfast actuarial students are exposed to the university’s trading room, which uses Bloomberg market professional software terminals, allowing students to learn investment, portfolio management and technical analysis principles using realtime stock price information.

Some of the actuarial students have even taken up positions on the oversight committee of the Queen’s Student Managed Fund – a student-managed real money fund, designed around three key areas: student employability, international reputation and

corporate social responsibility.

It focuses on creating a realworld investment management experience in an academic setting.

University College Cork ensures that its graduates have appropriate work-based skills to enable as seamless a transition as possible to the working environment. UCC students meet and interact with key players in industry and actuarial science at an annual industry event.

To complement the required core technical skills, actuarial students leave UCC with a broad range of practical work-based skills, such as Microsoft Excel, programming language R and presentation skills, to ensure that graduates meet all the requirements of the everevolving actuarial workplace.

University of Kent students have the opportunity to gain experience of using Prophet, an actuarial modelling system that helps insurance and financial services companies worldwide to meet reporting responsibilities, improve risk management and develop products. Final-year students undertake an actuarial practice module, where, as well as being given a grounding in all

the main areas of actuarial practice, they are also introduced to the professional and ethical requirements for an actuary.

University of Leicester runs a 12-month placement programme and highlights the benefits this offers to the placement provider. ● Opportunity to tackle shortterm projects that are otherwise difficult to resource ● Chance to develop links with a world-leading university with a strong research base, as well as practitioner experience in actuarial science and mathematics ● Chance to pick from the brightest, most motivated students for a fixed placement, without long-term commitment ● Opportunity to employ a known quantity post-placement, reducing the risks inherent in the recruitment process.

Interested in diversity?

Have your say on the Council

This month, the IFoA launches its diversity web pages. These provide information about our diversity goals, initiatives and events, as well as useful resources. Nick Salter, immediate past-president, brought the topic to the forefront with his presidential theme of diversity, and the IFoA hopes that its work in this area will push the profession forward and help it thrive in the future.

The latest of a series of IFoA events focusing on diversity was held on 14 April. The IFoA joined forces with Morton Fraser LLP to co-host a joint panel event entitled ‘Leading by Example: Diversity in Business’. The panel comprised IFoA president Fiona Morrison; Linda Urquhart OBE, chair of Morton Fraser; Lady Susan Rice CBE; and Tanya Castell, chair of Changing the Chemistry and lay chair of the IFoA Quality Assurance Scheme sub-committee. The discussions covered a breadth of issues relating to diversity of all kinds in business. Members can view a video of the event on the IFoA’s website.

If you are keen to get involved, why not join the IFoA’s member-led Diversity Advisory Group or connect with your peers via the new online diversity community.

All details are on the IFoA’s website at bit.ly/1ZlRGr3

Voting is now open for the IFoA’s 2016 Council elections, and all eligible voters are encouraged to have their say in light of the approval by Council of a new five-year strategy earlier this month. This is a prime opportunity to take an active role in helping build a Council that supports the future of your profession. Candidates’ profiles can be accessed on our dedicated elections website at www.ersvotes.com/ifoa As part of a special feature, an overview of each candidate’s professional history and priorities will be available on The Actuary website. We will inform you once this becomes available to view.

Voting closes at noon BST on 21 June, and the results will be announced at the annual general meeting on 23 June. You should have received your voting form via email or in the post.

For more information, email kimberley.russell@actuaries.org.uk

THE ACTUARY • June 2016 www.theactuary.com

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23/05/2016 09:15

Climate change: potential liabilities for business, directors, trustees and insurers This was the event that drew in an audience of over 90 delegates on 13 April at Staple Inn Hall, London.

Chaired by Michael Tripp and organised by the Resource and Environment Board, the event saw pension consultants, trustees, investment managers, insurers, regulators and environmental nongovernmental organisations (NGOs) in attendance.

Mark Carney had set the scene in his speech last September, where he broadly divided climate change impacts between: ● Physical risks: from floods and storms etc ● Liability risks: if losses arising from climate change can be attributed to polluters ● Transition risks: such as the impact of carbon taxes and quotas on fossil fuel reserves.

The focus of this event was liability risks and Professor Myles Allen (pictured below) from the University of Oxford opened proceedings by describing the relatively new science of climate attribution. This aims to quantify the probability that any particular weather event was caused or worsened by greenhouse gas emissions. For example, “it is likely (90% confidence) that past human influence on climate was responsible for at least half the risk of the 2003 European summer heat-wave”.

The models and the mathematics to justify such statements are complex.

Using such evidence, the legal basis for claims was taken up by Richard Lord QC. He outlined the formidable difficulties faced by claimants in proving, on the “balance of probabilities”, that a particular polluter should be held responsible for any particular damage, when greenhouse gas emissions are a global phenomenon.

However, these difficulties are not insurmountable, and some courts are willing to entertain such arguments.

A commercial view was then given by Chris Warrior, an underwriter with Hiscox in the Lloyd’s insurance market. His expertise is in insurance for directors of businesses, and he said that liability risks have yet to make a significant impact. However, he noted the potential exposure of directors, given their responsibility to ensure that material risks are properly recognised and disclosed.

He mentioned the recent investigation launched by the New York attorney general as to whether ExxonMobil had misled investors, and the potential for huge fines in such cases if sustained.

The final speaker was Alice Garton, a lawyer from ClientEarth, an NGO using the law to protect the environment. She also drew attention to the obligations of directors to approach climate change as a risk management issue and to make proper disclosure. She noted that the first successful cases against the tobacco industry were won because they had deliberately suppressed their own evidence and misled the public. Climate-related disclosure requirements are likely to increase, and she mentioned the current Financial Stability Board taskforce developing voluntary global standards. With regard to trustees, where both investments and sponsors may be exposed to climate risks, a risk management approach was again advocated.

She noted that there are various potential litigants, ranging from scheme members to litigation funders (a novel form of alternative investment), not forgetting regulators.

To sign up to the Resource and Environment newsletter for all the latest developments, log into your member area at www.actuaries.org.uk and select the ‘contact preferences’.

Rex Features

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Appeal tribunal panel On 26 November 2015, the appeal tribunal panel (ATP) considered an appeal against a finding of misconduct made by the disciplinary tribunal panel (DTP) of the Institute and Faculty of Actuaries on 11 November 2014 against Mr Pablo Luis Morales regarding his work in the capacity of an actuary and director at an insurance company.

The findings of the DTP were that Mr Morales should not have authorised the signing of accounts while they contained a reserving figure he thought was inappropriate, against the background of having done no further work to try to reconcile the differences, and while they contained a statement that the directors, of whom he was one, were confident of the level of reserves when he was emphatically not. The ATP found that these were findings open to the DTP on the evidence – indeed, on Mr Morales’ own evidence in large part – and that it would have made the same findings on the same evidence.

The ATP also found that the DTP clearly had regard to the fact that Mr Morales had secured an outside review, that he had taken and followed legal advice, that the accounts contained notes and that Mr Morales had communicated his concerns to fellow board members. The ATP considered that it appeared, from the DTP’s reasons, that it regarded this as significant mitigation but not as a defence to the charge. Having considered the same evidence, the ATP was of that view that it would have made the same finding.

The ATP rejected Mr Morales’ argument that, since his actions were exclusively those of a director, the IFoA did not have the power to discipline him, holding instead that his conduct fell within the definition of misconduct contained within paragraph 1.6 of the scheme. The appeal against the finding of misconduct was therefore dismissed and the finding and sanction remained as: ● Reprimand.

The ATP separately heard an application for costs on 12 April 2016 and made the following award in favour of the IFoA: ● Costs in the sum of £8,500, exclusive of VAT. A copy of the panel’s full determination, including reasons for its decision and costs, can be found at bit.ly/1SDZC6c

Disciplinary tribunal panel On 25-27 January 2016, the disciplinary tribunal panel (DTP) considered a charge of misconduct against the respondent, Mr Martin Binns, in that having held responsibility for the VAT affairs of a trust, he failed to submit VAT returns with HMRC by the due date for each quarter from October 2010 – September 2011 and failed to communicate with the trustees in a timely manner in respect of surcharges levied as a result.

The panel found that, having been the face of the company responsible for the VAT affairs of the trust, and having engaged in and taken responsibility for its VAT administration, Mr Binns then failed to lodge four consecutive VAT returns for in excess of one year; did not communicate this fact to his client; and it was his client that had to remind him. He then filed returns within a relatively short period without needing to ask the client any further information (so that, plainly, it was not the trust’s fault that the VAT returns had not been submitted). He did not correspond with the trust about the VAT returns, or the absence of submitting them.

The panel found the respondent’s shortcomings meant he fell far below the standard expected of an actuary. It found the respondent guilty of misconduct, and imposed the following sanction: ● A fine of £7,500.

The panel also ordered that the respondent ought to make a contribution to the IFoA’s costs of £12, 500 inclusive of VAT. A copy of the full determination can be found at bit.ly/1OgDqKy

June 2016 • THE ACTUARY 11 www.theactuary.com

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News

EVENTS AND CONFERENCES GENERAL INSURANCE RESERVING SEMINAR 21 June, London ONLINE: WEBINAR ON PROFESSIONAL SKILLS IN PRACTICE AROUND THE GLOBE 8 June bit.ly/1WszM6V Delegates can join a live panel to discuss video case studies covering a variety of ethical issues.

This is an excellent opportunity to exchange views and engage with your international actuary peers. Two webinars will take place on 8 June at 08.30-09.30 GMT and 16.30-17.30 GMT.

bit.ly/1rkqvlT Attendees for this one-day event will discuss the issues facing reserving actuaries, from those performing the reserving to those making use of the output and insights from their work. A broad range of topics will be covered, making this an important seminar for all actuaries working within general insurance reserving.

HOT TOPICS IN HEALTH AND CARE 22 June, London 17.30-19.00

Newly elected Honorary Fellows Fellows and Associates were recently asked by Council to vote on the election of new Honorary Fellows of the IFoA. The outcome of the vote was in favour of the proposal that the following individuals be installed as Honorary Fellows: ● Dr Madhavi Bajekal (bit.ly/1WcGajK) ● Professor David Bell (bit.ly/1STSf7B) ● Norma Cohen (bit.ly/1NlHA8X) ● Robin de Wilde QC (bit.ly/1TrV9Qp) ● Gábor Hanák (bit.ly/1STTcwO) ● Sir David Spiegelhalter (bit.ly/21DZBC0) ● Dr Yulong Zhao (bit.ly/1NlHY7u).

Arrangements are being made for formal presentations. Further details will be published on our website shortly.

As a professional body, we have over 100 Honorary Fellows who have been leaders in their fields of business, academia, government and other public bodies, either here in the UK or internationally. Many of our Honorary Fellows are very active in and complement the work of our members around the world.

For further information, visit our website: bit.ly/1QTTi5k 12

bit.ly/1qXqvHK Are you interested in the latest research on the implications for insurers of issues such as: the impact of wearable technology on insurance; and more advanced cancer diagnostics? Join this networking event, which will provide a series of short research papers on hot topics in health and care, while providing ample time for discussion and debate.

INTERNATIONAL MORTALITY AND LONGEVITY SYMPOSIUM 2016 7-9 September, Surrey bit.ly/26wQVkq Attending this conference

will offer a better understanding of current industry advances and the latest research on mortality and longevity from thought leaders across all the relevant disciplines. Delegates will discuss trend developments in healthy life expectancy; how the economy affects longevity; and the causal model for mortality, morbidity and longevity. Delegates will also hear about key developments in the biology of ageing, plus scientific evidence that we all age at a different pace.

A range of ticket options are available, which can be found on the website.

GIRO 2016 20-23 September bit.ly/1QRYXss GIRO offers a unique opportunity to join industry experts and market leaders within their fields to discuss and analyse the current and future state of the industry. You will examine potential new opportunities and emerging trends, network with senior professionals and engage in debates on several topical matters currently facing both the insurance industry and wider society. One-day tickets and group discounts are available.

Reminder: CPD reporting year closes 30 June As we approach the end of the 2015/16 continuing professional development (CPD) reporting year, we would like to remind members in categories 2-6 to ensure that their online CPD records are updated by 31 July with all CPD activities completed between 1 July 2015 and 30 June 2016. Please note that you may be asked to provide evidence of the events recorded if you are selected for audit.

This short summary of CPD requirements by category may be useful.

Category 2: fully regulated Fellows and Associates ● At least 15 hours of CPD ● Five hours must be obtained at external events ● Stage 2 or 3 of professional skills training (PST) as relevant.

Category 3: partially regulated Fellows and Associates ● Must comply with the CPD requirements of your primary regulator ● Must also complete either Stage 2 or 3 of PST. Category 4: Certified Actuarial Analyst ● At least 15 hours of CPD

● Five hours must be obtained at external events ● Two hours must contribute to your understanding of ethical behaviours in relation to your role.

Category 5: student member ● No technical skills requirement ● Must complete Stage 1, 2 or 3 of PST as relevant.

Category 6: student actuarial analyst ● No technical skills requirement ● Must complete Stage 1 PST by the end of your first CPD year.

Recording CPD – how to get it right 1. Record a learning outcome for all private study.

2. Ensure that the dates of activities and hours gained are correctly recorded.

Remember you may be asked to evidence these at a later date.

3. Don’t group activities run by the same provider together as one entry – log each activity or event separately.

If you are still looking to make up your hours, visit the IFoA’s archive of recorded material at bit.ly/1rxUVRG Visit bit.ly/1TvsH0m for further details, or email cpd_feedback@actuaries.org.uk

THE ACTUARY • June 2016 www.theactuary.com

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23/05/2016 09:15

Soapbox Opinion

Paul Dr Konstantinos Harwood is Drakos a consulting is actuary associate specialising professor at in Athens strategy and University risk management of Economic

Managing management risk I may have discovered a new risk: ‘management risk’ – defined as ‘the risk that management doesn’t deliver the planned results’. This type of risk is strangely absent from much of the enterprise risk management (ERM) literature.

Isn’t it just operational risk? It could be, particularly given that operational risk is a balancing category, a convenient label for a diverse set of ‘no upside’ risks. But I’ve never seen management risk as an operational risk sub-category. Plus, it has an upside.

What’s the nature of management risk?

Boards hire management teams to deliver a defined plan on agreed assumptions within a reasonable corridor. The great thing about a plan is that you can subject it to a whole host of tests, stresses and scenarios. You can assess how results benefit from better – or suffer from poorer – management, and whether assumptions are reasonable. This feels like productive, meaningful analysis.

Luck or judgment?

Yet business results happen by luck as well as skill. Colleagues tell me that when results are good, management takes the credit; when they are poor, it’s down to bad luck. That can’t be the whole truth of it, regardless of the cynics. Certainly, performance is a mixture of luck and skill. A good result might have been better with more luck, a bad result might have been worse with less management skill.

Do boards hire management teams for their luck or skill? It should be skill – assuming that luck is not a part of a team’s composition.

Shouldn’t we be pressing to understand how much of management’s performance comes from skill and how much from luck? This, I suggest, is about understanding the nature of management risk.

Ideally, remuneration and skill would be correlated. Maybe that’s not consistently the case in practice. I’m not offended by that; it is the way of the world. What does concern me is

Paul Harwood suggests management risk should be considered as a category on its own, to the benefit of business results

a default approach to risk management that does everything but put management under the spotlight. The closest we get is to talk of culture. These discussions can be interesting, but they tend to explain, rather than help manage, problems.

We must take care in financial services.

Decision-makers, often not close enough to the models, rely on the analysis and synthesis of actuaries and risk officers. Sometimes the synthesis is wanting, and voluminous analysis serves as a proxy. Management can mistake the volume of their choices and the breadth of their discussions as symptomatic of good culture and an open environment.

The reality is that risk management crystallises when decisions are made, and culture radiates most strongly from decisions made (what is rewarded, what is punished), not the tolerant, friendly, anything-can-beraised atmosphere in the boardroom.

What better risk management strategy than to expect management to deliver what it promises? That sends a very strong anchoring message for the culture: “We mean what we say.”

Assessing management risk brings executive performance management and risk management together. This can only be a good thing. Operational risk is no longer a little-understood silo report but central to the evaluation of executive ability.

Does this introduce incentives to game the system? Yes, theoretically. But boards already

have to ensure that their management information systems needs are met and that board challenge is robust, regardless of any gaming that is going on. There is no reason why management risk can’t be part of that.

A common plan ‘Management’ follows from the accumulated decisions of, maybe, hundreds of people. So it could be argued that focusing on management risk overly concentrates challenge on the few people around the table. But all ERM work starts with those very same people. They need a common language, drivers and intent to support their decision-making. The plan conveys that.

Furthermore, the overarching plan is made up of many smaller plans that should, diversification aside, add up. Management risk should be additive. Focusing on the same things throughout can’t be deleterious.

In summary, management risk may be the missing link, the driver of culture, and a risk component that boards can use to manage their firms to good effect. Let’s have more managers doing what they said they would, or explaining why, in the context of risks faced and skills executed. The result should be a proper appreciation of high-quality management teams that can drive and protect business results. a Paul Harwood is a consulting actuary specialising in strategy and risk management

June 2016 • THE ACTUARY 13 www.theactuary.com

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23/05/2016 09:16

In conversation features@theactuary.com

Rules of

engagement Ben Kemp and Ann Muldoon discuss how the IFoA and the Financial Reporting Council work together to regulate and support actuaries.

Chaired by Richard Purcell; written by Cintia Cheong

The Actuary invited Ann Muldoon, director of actuarial policy at the Financial Reporting Council (FRC), and Ben Kemp, general counsel and director at the IFoA, to discuss how the two bodies have worked together since 2006 to regulate the profession, and to explain the latest developments and big issues on their agenda.

The FRC has a much wider remit besides actuarial standards, and was deemed an appropriate home for setting technical actuarial standards because of its responsibilities in regulating other financial bodies, such as accountants and auditors.

Why do we set standards, and what’s changing?

Describe the regulatory roles of the IFoA and the FRC BK Ben Kemp (BK)

We aim to discharge our public interest responsibility by regulating appropriately but proportionately all of our members, both in the UK and overseas. This begins with the qualification framework, the entry point to the profession, and includes the setting of standards and guidance as well as professional support and training and, if necessary, enforcement. In relation to the UK, we share the standardsetting responsibility with the FRC, which issues technical standards, while we are responsible for ethical standards.

We aim to be outcome-focused and risk-based in our regulatory approach. This, in some ways, is more challenging for both the regulator and the regulated but it does, we believe, lead to more effective, targeted and more proportionate regulation, while allowing for and encouraging the exercise of professional judgment.

We have a dual role in serving and supporting our members. These objectives are complementary because serving the public interest is also to the collective benefit of the profession.

AM Ann Muldoon (AM) The FRC is responsible for setting technical actuarial standards (TASs), which sit alongside the ethical standards and code of conduct that the IFoA sets. We provide oversight of the profession and ensure that it can regulate itself in an appropriate manner.

Our work is governed by the reliability objective.

It effectively sets a requirement; we seek to ensure that users of actuarial information can place a high degree of reliance on that information. That is the overarching principle that guides the standards that we develop and should guide individuals on how they interpret and apply them.

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THE ACTUARY • June 2016 www.theactuary.com

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The overarching standard is the Actuaries’ Code.

It sets out our core professional principles – for example, integrity and the importance of effective communications and competence – really core values.

We are about to launch a review of the Actuaries’ Code, to ensure it remains up to date and fit for purpose.

We set ethical standards to support and amplify the principles in the Code – for example, APS X2 (Actuarial Profession Standard Cross Practice 2), on peer review.

Below that, we have non-mandatory guidance, educational and training material.

We engage actively with supranational associations in relation to the development of international model standards, supporting the global recognition and development of actuarial science, including its increasingly crucial role in developing markets around the world.

BK

AM The FRC is more focused on the TAS framework for actuaries working in the UK. Under our current framework, we have three generic technical standards: data; modelling; and reporting. Then we have specific standards on insurance, pensions, funeral plans and transformations.

The year before last, we consulted and created a new overarching framework. The outcome of this consultation is to replace the three generic technical standards with TAS100, which will apply to all areas of technical actuarial work, and will include some information that is currently in the specific standards.

In deciding on the scope of the specific standards, we applied a risk-based approach. While we may have done that on an informal basis in the past, we’ve formalised it, and it’s also part of the consultation paper we will be issuing. We’ve tried to identify areas of technical actuarial work that pose a high risk of public interest. For example, one of the areas of work within PHOTOGRAPHY: SAM KESTEVEN

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the insurance TAS relates to the work of an actuary supporting an auditor, and we put in there the provision to apply a sense of scepticism, which is not always necessary or applicable to day-to-day actuarial work. As part of the review, we plan to remove the specific TAS on transformations and will be including relevant parts in the TAS100.

We’d like to encourage everybody to participate in the consultation. It will be open for three months until around the middle of August.

earned; the era of deferential subservience is gone. Where we need to take enforcement action, we have a process that involves lay people as well as actuaries sitting on our independent tribunals. We attach great importance to the fairness and transparency of the scheme – a process that we believe helps install public confidence in the IFoA as a regulator, and in the profession as a whole.

We have engaged actively with the FRC in the development of its consultation proposals. We propose to produce guidance in relation to TAS100, and welcome input from practitioners as to what they would find useful.

We aim to support our members, wherever they practise, in fulfilling their professional responsibilities.

We draft our standards from a global and not parochial perspective. We leverage technology to deliver professional skills and continuing professional development around the globe.

We are a forward-thinking, progressive regulator, with an eye to innovation. A good example, which is relevant to the domestic as well as international market, is the Certified Actuarial Analyst (CAA), our new technical-level professional qualification. The CAA will help professionalise a whole new segment of the workforce. Such innovation, we believe, is good for business, good for employees and, importantly, good for the public interest.

BK

What role does discipline play in upholding standards?

The reputation of – and trust placed in – IFoA members is heavily influenced by the rigour of our professional examinations, our ethical code and, by extension, how we deal openly, promptly and fairly with any complaints or breaches of those standards.

Our disciplinary process must command the confidence of both the profession and the public. In the modern age, confidence and respect in a profession must, rightly, be

BK

How do we support actuaries working outside the UK, beyond the FRC’s remit?

BK

June 2016 • THE ACTUARY 15 www.theactuary.com

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Innovation, we believe, is good for business, good for employees and, importantly, good for the public interest” The International Actuarial Association (IAA) produces the International Standards of Actuarial Practice (ISAPs), and the Actuarial Association of Europe (AEE) produces the European Standards of Actuarial Practice (ESAPs). They issue model standards and appeal to all types of actuarial association. Because of that, they contain quite a lot of detail that isn’t quite in line with the way we look at actuarial regulation in the UK. However, ISAP 1 is the overarching main standard issued by the IAA, and we believe that the accommodation of TAS100, the Actuaries’ Code and the APS X2 together will provide substantial consistency with their standards.

AM

We expect to publish a standard called APS X1 later this year. This will set out, in a single source, the standards that the IFoA expects its members to apply, wherever in the world they are practising. We’re trying to achieve a relatively simple standards framework, which is clear and proportionate internationally, upholds the public interest, but does so by allowing flexibility and innovation.

BK

What role do you think organisational culture has in maintaining standards?

This is important, and at the FRC we are actively engaging in a review of culture. Although we do have the UK Corporate Governance Code, one of the questions is: to what extent can you tick all the boxes of the code and still have some challenges? So we are currently working on a culture project and reporting on it later this year.

AM

It might be argued that one of the root causes in the failure of financial institutions is related to organisational culture. We ignore this issue at our peril.

We have launched the Quality Assurance Scheme (QAS), for which we recently had our first set of awards for newly accredited firms. What we are trying to do is to promote a culture within organisations that encourages and facilitates quality and professionalism. We have had a very positive response.

The QAS is currently open to actuarial employers in the UK, although we are considering how a similar model might also be relevant elsewhere. The independent assessment team comes to your office and engages with you and your staff – it is not ‘tick box’. The process is periodically renewed.

BK

Does regulation increase the risk of ‘group think’?

The Joint Forum on Actuarial Regulation (JFAR), a group chaired by Stephen Haddrill from the FRC, was formed with representatives from the Prudential Regulation Authority (PRA), the Financial Conduct Authority (FCA), the Pensions Regulator (TPR), the IFoA and the FRC. One of the key roles of the group is to look at where actuaries’ work poses a risk to the public interest. It published a discussion paper entitled Joint Forum on Actuarial Regulation: A Risk Perspective two years ago, and, as a result, identified three areas where extra work was needed, including: transfers from DB-DC schemes; an investigation into group think; and a review of general insurance provisioning.

AM

The IFoA had the privilege of leading the JFAR’s work on group think. We took the question of public interest risk to our practice boards, and the phrase ‘herd-like

BK

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behaviour’ kept coming up. It can be both a force for good, in terms of common standards across a profession, but also potentially an inhibitor, in terms of the exercise of individual judgment.

For us, group think is the unconsidered following of established protocol – it’s the unconsidered part that can be a concern. A couple of interesting factors here are the role that regulators can play, and, again, the effects of organisational culture. There is some reason to think that a more prescriptive rules-based approach to regulation can encourage group think.

When actuaries seek work in wider fields, some perceive us to be highly regulated, which could make us uncompetitive. How do we address this?

This is a legitimate challenge. We need to be aware of it, but without compromising our core values of quality and professionalism. Our members trade upon the basis of a badge of quality that we seek to uphold, without creating a disproportionate compliance burden.

BK

People are put into positions on the merit of their experience and the qualities they bring. Actuaries are no different. They are being appointed, so organisations must be attaching a value to the experiences of actuaries.

If you weren’t doing technical actuarial work, TAS wouldn’t apply. The Actuaries’ Code, particularly in risk roles, with its ethical standards, would be even more important – and so having a strong professional code should actually enhance your suitability and support you in doing that role. It comes back to your mindset. Do you see it as regulation, or do you see it as part of what makes you an actuary and part of the actuarial profession?

AM

Where we see actuaries getting into new areas, we see their skillset being appreciated and recognised, whether that is in banking or healthcare. It’s not the regulation that is usually the barrier – it can be the lack of understanding of the value an actuary brings.

BK

What does success look like for you over the next year?

We’d like to get the final TAS package published, ready to go by the end of the year. We will shortly be working on a consultation on the oversight and the future regulation of the profession at the end of 2016.

Again, 10 years on from the Morris Review, we need to reflect and see if the framework we have in place is the right one for providing oversight. More generally, success for me is that the standards we produce are seen as the minimum standards to work to, rather than being a burden on actuaries.

AM

The QAS is obviously a big one. I’m excited because it’s really gaining traction. We believe in regulation through engagement. We are not a regulator that sits in an ivory tower. Regulation starts with the individual, with self-responsibility. I am excited by the dialogue we are having with people all around the world, in relation to professional ethics. People are talking to us about professionalism – that is exciting and there is more of it coming. I think success is when all of our standards are joined up and easy to use and understand. a

BK

THE ACTUARY • June 2016 www.theactuary.com

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23/05/2016 09:17

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18/05/2016 09:42

Risk Solvency II

Since the 2007-8 financial crisis, numerous new regulations have been introduced with the aim of reducing risks in the financial sector.

For insurance companies, the main regulatory focus has been on protecting policyholders and, while regulations may be making the insurance sector safer for customers, they could be having the unintended consequence of increasing other risks associated with the sector.

For many actuaries, the most significant new regulation recently introduced is Solvency II. This determines how much capital European insurers must hold to cover risks arising from their contracts and investments, to limit the chance that they are unable to pay their policyholders.

Perhaps the most significant change brought in by Solvency II is the introduction of explicit risk-based capital charges on the investments that insurers hold. This has important implications, particularly for life insurers, given the large investments they hold on behalf of their policyholders.

Solvency II is likely to drive a higher proportion of life insurers’ investments into asset classes with lower charges, typically high-rated corporate and government bonds.

From the point of view of an individual insurance company, this appears to make

sense. Higher-rated assets are less likely to default than lower-rated assets, so encouraging more investment in higherrated assets should reduce the risk of insurers’ assets becoming insufficient to meet their liabilities.

Eggs in one basket From the viewpoint of the industry as a whole, the picture is less clear. There are concerns that Solvency II may lead to a ‘herd instinct’ effect on insurers’ asset allocations, with the investments of different insurers becoming more homogenous and concentrated in a smaller range of assets. The result could be an insurance industry that is overall less able to withstand shocks to specific asset classes.

The International Monetary Fund (IMF) recently conducted an investigation into systemic risk in the insurance industry (Global Financial Stability Report, April 2016). This considered two distinct types of systemic risks – Domino risk and Tsunami risk. Domino risk refers to where a high level of interconnectedness between insurers means that one insurer becoming distressed leads to others failing owing to complex counterparty interactions. Tsunami risk refers to scenarios where an asset price shock, paired with high common asset exposures, leads to a large number of correlated failures.

Tsunami risk increases as asset allocations across the industry become more aligned, and could mean that the insurance sector as a whole becomes a significant contributor to systemic risk in the economy, even if no single insurance company is truly systemically important in itself.

Given the importance of insurers as investors in bond markets, the IMF also noted that a shock to the insurance sector could hit banking and other industries that rely on financing through bonds, with knock-on impacts in the wider economy.

Overall, the IMF concluded that although systemic risk from the insurance sector is clearly below that of the banking sector, it has increased in recent years, and regulators need to take a more macro-prudential approach to the insurance industry if systemic risks are to be appropriately tackled.

Closely related to systemic risk is procyclical behaviour – action that exacerbates financial market volatility. When insurers face falling equity or debt markets, they naturally seek to bolster their declining solvency positions. Under Solvency II, this points to divesting from riskier assets with higher Solvency II charges, such as equities and low-rated debt, potentially realising significant losses, and moving into safer assets at a time when they may be more

Herd instinct and regulation as a risk

Sam Mageed and David Prowse explore how Solvency II requirements to protect policyholders could create new risks 18

THE ACTUARY • June 2016 www.theactuary.com

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GARY WATERS / IKON

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23/05/2016 09:17

Regulation that increases capital requirements or adds to investors’ perception that insurers are complicated can put up the cost of capital for the sector, ultimately to the detriment of customers” costly. So Solvency II asset charges could Solvency II. Many insurers hold large lead to widespread ‘sell low, buy high’ amounts of sovereign debt. While internal procyclical behaviour by insurers, which models must reflect any material sovereigncould significantly increase financial market related risks, standard formula users may volatility, as insurers are among the escape sovereign charges unless regulators largest investors. impose an add-on, as eurozone sovereign Solvency II contains some features debt is still considered risk-free in the designed to reduce procyclicality – an equity standard formula. dampener to reduce capital requirements in Insurers are likely to aim for SCR coverage the event of a sudden drop in equity prices, ratios well in excess of regulatory minimums and the ‘matching adjustment’ and ‘volatility to reassure investors that their Solvency II adjustment’ to reduce requirements position will not jeopardise dividends. p when debt prices fall. However, these Live links IIn effect, this looks like a gold-plating of apply only in certain circumstances, Solvency II standards by insurers reliant S on our depending on regulatory approval capital markets. on cap app! p! and strict criteria, and many insurers Apart from regulations may still be motivated into around capital and financial a procyclical investment decisions by stability, regulators are also st Solvency II, even if they are allowed to use increasingly focusing on the in such measures. conduct of insurers in terms of co Reflecting this, the European Systemic how they deal with customers.

Risk Board recently called for the In the UK, the Financial Conduct Authority introduction of a countercyclical capital (FCA) recently concluded a study into how buffer for insurers, forcing them to build up fees were being levied on longstanding capital in stable markets, which could then customers, and is now investigating whether be run down in times of economic volatility. customers who would have been eligible for Debates on the pros and cons of Solvency II enhanced annuities were mis-sold standard look set to continue through 2016 and annuity policies. beyond, and it will be no surprise if changes This sort of regulatory scrutiny is are made. undoubtedly positive for customers but may uncover issues leading to bad press or fines for the insurance industry and sometimes Investor uncertainty costly financial compensation payments to Insurers have not yet had to publish detailed their policyholders. Regulatory scrutiny also Solvency II information, but most major brings uncertainty for insurers, including insurers disclosed some high-level headline subjectivity around what constitutes ‘fair’ Solvency II figures with their 2015 annual treatment of customers, and the risk that new results. Some firms reporting lower than standards are applied retrospectively, expected solvency capital requirement (SCR) particularly when regulators are assessing coverage ratios suffered significant drops in potential mis-selling of policies that were sold their share prices, reflecting equity investors’ many years ago. concerns about how future dividends might Regulation that increases capital be restricted if ratios were to fall further. requirements, or adds to investors’ perception The share price of Delta Lloyd, the that insurers are complicated to analyse, can Dutch-based insurer, fell 43% when the put up the cost of capital for the sector, company announced in August 2015 that its ultimately to the detriment of customers.

SCR coverage was below its target level, Higher capital costs may lead to less although still comfortably above regulatory competition, higher prices for customers and requirements. Delta Lloyd eventually the removal of products with particularly completed a rights issue in April 2016 to high capital requirements, even if they meet bolster its capital, against the wishes of one of its main shareholders, which took legal action in an attempt to block the process.

SAM MAGEED is a Differences in the application of Solvency II director at Fitch across Europe have added to investor Ratings, where he uncertainty. Many insurers are applying covers the UK life various transitional measures, which strongly insurance sector and is affect their metrics; some are using internal responsible for Fitch’s models rather than the standard formula; and Prism capital model some regulators are taking a tougher stance than others in how they interpret and apply 20

important customer needs. This has been demonstrated in the German market, where life insurers have reduced, redesigned or in some cases completely removed investment guarantees on new business in light of the high capital charges associated with these under Solvency II.

Reluctant global leaders Increased regulation for globally systemically important insurers (GSIIs) may drive large companies to scale back to avoid GSII categorisation and the extra regulatory burden it entails. Earlier this year, the US group MetLife announced plans to sell a large part of its life insurance business, following its classification as a systemically important financial institution. MetLife cited better operational flexibility and reduced capital and compliance burdens as drivers for its decision. There is an interesting tension between systemic risk and individual company risk. While the break-up of large firms may reduce systemic risk, it may result in a number of smaller individual entities that individually have less scale and diversification and correspondingly more risks for their policyholders.

The impact of increased regulation on the credit ratings of insurance companies is mixed.

Regulation that leads to improved risk management or higher capital requirements can be positive for ratings, as it increases the likelihood that insurers will be able to repay their creditors. However, regulatory actions that may result in large fines or that increase uncertainty in the sector can have a negative effect. There has not been a significant change in credit ratings as a direct result of recent regulatory developments. Over time, however, some insurers may reshape their businesses in response to regulations, which may affect their risk profiles and consequently their ratings.

In conclusion, while insurance regulation appears to be effectively addressing a number of risks around individual insurers’ ability to pay their policyholders, it could be increasing systemic risks linked to the industry as a whole, with implications for the wider economy. a

DAVID PROWSE is a

senior director at Fitch Ratings and co-ordinates Fitch’s European insurance market research and publications

THE ACTUARY • June 2016 www.theactuary.com

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23/05/2016 11:05

ADVERTORIAL

An introduction to Emerging Market Debt In the search for yield, emerging markets have come of age The economic importance of emerging markets (usually deďŹ ned as including Latin America, Africa, Eastern Europe and Russia, the Middle East, and Asia ex-Japan) has grown rapidly since the end of the 1990’s with emerging market and developing economies currently contributing to approximately 58% of world GDP (IMF, December 2015). For ďŹ xed income investors, the risk/return characteristics of the Emerging Market Debt (EMD) asset class over the past decade have been attractive with strong risk-adjusted returns and low correlations to other asset classes.

Interestingly, correlations with other ďŹ xed income asset classes tend to be low/negative, whilst correlations with equities generally vary between 0.4 and 0.7.

Additionally EMD oers attractive yield potential relative to similarly rated ďŹ xed income asset classes from developed markets; whilst active management can help avoid defaults (which occur infrequently in the broad market). Chart 2, shows the spreads oered by investment grade rated EMD vs. US and European Corporate bonds.

EMD is a ďŹ xed income asset class that includes bonds issued by governments, government agencies and corporates. EMD is further split up between bonds issued in hard currency (usually US dollar), and bonds issued in local currency (e.g. Brazilian real).

Hard currency is the most accessible and widely used way to gain exposure for investors in developed markets, although the amount of outstanding corporate debt has been increasing signiďŹ cantly and has overtaken the amount of government debt, shown in Chart 1.

Source: BMO Global Asset Management, Bloomberg, J.P. Morgan, BofA Merrill Lynch, as at 30 March 2016.

Past performance is not a guide to future performance. Values may fall as well as rise and investors may not get back the full amount invested. â—?

Source: BofA Merrill Lynch Global Research, data to 31 December 2015.

Contact:

Over the last 10 years or so, EMD has evolved from a frontier investment to a mainstream asset class although emerging markets are very diverse and there is no one-size ďŹ ts all deďŹ nition. In the most widely used index, J.P. Morgan’s EMBI, EMD currently consists of 65 countries and 503 bonds; a signiďŹ cant increase from the 14 countries and 51 bonds available in 1993. Diminishing concentration risk has coincided with an increase in quality, as more EMD issues are rated investment grade (54% as of March 2016) – opening the asset class to a broader range of investors.

The table below shows the returns and volatility characteristics of EMD in comparison with indices from other investment categories.

Dick Rae | Director, Insurance Solutions +44 (0)20 7011 5229 Dick.Rae@bmogam.com Andrew Douglas | Senior Sales Assistant +44 (0)20 7011 5232 Andrew1.Douglas@bmogam.com BMO Global Asset Management (EMEA) Exchange House | Primrose Street | London | EC2A 2NY Bmogam.com

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Source: BMO Global Asset Management, Bloomberg. Based on the period 31/03/2006 – 31/03/2016. EMD hard currency – JPM EMBI Global DiversiďŹ ed Index, US Govt – BofA ML US Treasury Index, Euro Govt – BofA ML Euro Government Index, US Corp – BofA ML US Corporate Index, Euro Corp – BofA ML Euro Corporate Index.

ACT.06.16.021.indd 21

18/05/2016 09:43

Investment Illiquid assets

Keith Goodby and Mary Boyle ask whether insurers can profit from illiquidity premiums after the implementation of Solvency II

Out with

the old the new...? in with

22

THE ACTUARY • June 2016 www.theactuary.com

p22_24_june_liquid_assets_FINAL•CT.indd 22

23/05/2016 09:18

Live links on our app! p!

On 1 January 2016, we entered a new era in the long history of UK and European insurance companies with Solvency II (SII). What next?

Can we leverage off the detailed understanding of our assets and liabilities and the good work of SII, and look forward to new ways to add value to our policyholders and shareholders?

Can we turn SII into a benefit to recoup some of the expenses of SII implementation?

Illiquid investments are commonly perceived as a good fit for insurance companies. The term illiquid assets can mean different things to different investors or even departments within a company. Generally, it is a security that cannot be easily converted into cash and/or converted at a perceived fair market value by the security holders.

Increased capital costs and post-crisis funding costs have been the catalyst for change in the long-established funding model, whereby the end-investor funded bank balance sheets, which held the illiquid assets.

The universe of illiquid assets is expanding for non-banking institutional investors as a result of disintermediation.

Life insurers and some property and casualty (P&C) insurers with long-tail liabilities have natural long-term funding for illiquid assets. They can match assets against liabilities and hold assets to maturity. This is a distinct advantage over banks. But, it’s easier said than done for insurers to replace bank lending to longer-term borrowers. What will work for any particular insurance company will depend on its objectives, risk appetite and ability to transact and manage.

What is the illiquidity premium?

The benefit for life insurers who can get illiquid assets to work is the ability to profit from the illiquidity premium. This premium is the additional return investors receive as compensation for lack of liquidity or ability to trade; and other risks, such as the absence of market pricing, increased asset complexity and underwriting requirements.

We would typically break down the expected returns from an illiquid asset into four components: 1. Risk free rate – the market-discounted cash rate and any term/inflation risk premia (to compensate for inflation and interest rate uncertainty).

TANG YAU / IKON

p22_24_june_liquid_assets_FINAL•CT.indd 23

2. Credit risk – expected losses from defaults/ migration plus additional credit risk premium and any equity-like risk.

3. Alpha – for an actively managed strategy (often required for illiquid assets), additional returns may be expected through manager skill or ‘alpha’ generated through skilful origination, credit underwriting, careful pricing, covenant negations and post-trade monitoring.

4. Illiquidity risk premium – the residual premium to compensate for lack of liquidity.

However, in using market prices to determine other risk premia, we may capture any mispricing of these risk premia as mispricing of the illiquidity risk premium. In practice, alpha may be hard to isolate as it may manifest in a lower expected default rate/higher expected credit or illiquidity risk premium.

In order to achieve enhanced returns, expertise is important, along with the ability to source the quantity and quality of the asset in the desired timeframe. Identifying what is really additional credit risk versus true illiquidity premium is of paramount importance. As with other asset classes, the timing and price of entry are also key.

Illiquidity risk premium cycles and trends As with liquid assets, illiquid assets experience a valuation cycle. Figure 1 (p24) shows how our Illiquidity Risk Premium Index (IRPI) has varied over time. It takes a simple average of a particular universe of assets at a particular point in time and plots this against the approximate fair value. The universe of assets is based on a non-exhaustive sample of assets from the less liquid (for example, corporate bonds) to illiquid (direct lending). It has evolved over time from US and UK investment grade corporates and real estate to include assets we regard as potentially attractive, such as US and Euro loans, hard currency emerging market debt, UK long lease and senior real estate debt, and US and Euro direct lending.

Key observations we take from Figure 1 are: ● There are cycles in illiquidity premium and illiquidity is at times poorly rewarded ● The fact that there are longer periods when our measure is below fair value (illiquidity is poorly rewarded) than above may imply: ● Investors’ average required illiquidity risk premium is too high relative to what is available June 2016 • THE ACTUARY 23 www.theactuary.com

23/05/2016 09:18

Live links on our app! p!

Figure 1 Willis Towers Watson Illiquidity Risk Premium Index

300 Fair value range Illiquidity premium index 250

200

Bps

150

100

50

0

-50 97 98 99 00 01

02 03 04

05 06 07 08 09 10

11

12

13

14

15

Source: Willis Towers Watson

We have mis-estimated that average Investors did not appreciate that the illiquidity premium was too low ● The level of attractiveness appears to have reduced in recent years but still offers value. ● ●

universe, such as small and medium-sized enterprise (SME) loans and infrastructure.

3. Capital charges and modelling Asset allocation to illiquid investments can provide diversification advantages as well as some immunity from market fluctuations.

The ability to negotiate bespoke terms to match assets and liabilities can also be asset liability management- and capital-efficient.

By simply adding a private placement with an appropriate illiquidity premium, it is possible to produce a better return than the equivalent public bond on a risk-adjusted return on capital basis.

To efficiently calculate capital and understand the investment risk, it is important to have the ability to look through to the underlying data and assets. If fund level data is used, it is necessary to understand the investment mandate to validate the capital calculation.

Common to all investments under SII are transparency, data, reporting, and pricing.

Which illiquid opportunity is best for you will not only depend on the above mentioned factors, but also how the risk is modelled.

A further consideration is whether the illiquid asset matches the capital approach taken. For example, does a standard formula approach suitably capture the underlying risks of the illiquid asset or might it be necessary to consider a (partial) internal model?

The business case What to consider for investment?

If you can identify, measure, manage, monitor, control and report risks and have enough capital and liquidity, there is a new universe of assets that could add superior riskadjusted returns to yield-stretched portfolios” 24

There are a number of considerations for insurers interested in capitalising on the illiquidity premium, including: 1. Investment horizon Illiquid assets may call for a long-term strategic plan. There may be little flexibility to change asset selection based on best prevailing risk reward opportunities. It is therefore important to match the illiquid asset to your investment strategy, liabilities and time horizon and recognise that it may not be possible to exit the asset before its full term.

2. Regulatory considerations SII formally introduced a risk-based approach with flexible asset selection and allocation.

Insurers can invest as they wish, provided they meet the claims of their policy holders, maintain solvency and liquidity, and adhere to the Prudent Person Principle.

Insurers may also need to consult with the regulator to demonstrate a clear ability and skillset to underwrite and manage illiquid assets over their lifecycle. There may also be additional considerations with the volatility adjustment or matching adjustment eligibility.

Regulation is still evolving, but the direction of travel appears to be favourable in relation to capital charges for some of the new illiquid

If you can identify, measure, manage, monitor, control and report risks and have enough capital and liquidity, then there is a new universe of assets that could potentially add superior risk-adjusted returns to yield stretched portfolios. With SII, however, the risk and the data drives the capital charge, so the insurance investor needs to maintain a detailed and disciplined approach for new assets.

It is important to weigh up all of the investment benefits, not just lower capital charges, and remember that some illiquid investments are a hold to maturity – not just because you want to, but because you could be stuck with them owing to market climate or a lack of ready buyers.

There is clearly an obtainable source of illiquidity premium, and insurers are ideally placed to take advantage of the potential uplifts from these assets, given the strategic fit with their liabilities and time horizon. For insurers that have not yet sought to profit from illiquidity premium, is it prudent to consider it?

It may just be imprudent not to. a

Keith Goodby is head of, and Mary Boyle a member of, the insurance investment solutions group at Willis Towers Watson

THE ACTUARY • June 2016 www.theactuary.com

p22_24_june_liquid_assets_FINAL•CT.indd 24

23/05/2016 09:18

Risk Expert judgment

Askthe experts In considering how, as organisations and

Raveem Ismail and Scott Reid propose that structured expert judgment can be used to significantly reduce uncertainty in risk appraisal when considering areas such as political violence SHUTTERSTOCK

p25_27_june_expert_FINAL•CT.indd 25

individuals, we make decisions, we first refer to an insightful quote: “There are no hard facts, just endless opinions. Every day, the news media deliver forecasts without reporting, or even asking, how good the forecasters who made the forecasts really are. Every day, corporations and governments pay for forecasts that may be prescient, worthless, or something in between. And every day, all of us – leaders of nations, corporate executives, investors, and voters – make critical decisions on the basis of forecasts whose quality is unknown.”

Superforecasting: The Art and Science of Prediction, Tetlock & Gardner, 2015 It would be preferable for all decision-aiding models to be based on objective criteria such as exhaustive data and sound physical principles.

This ideal situation rarely occurs, and (re)insurance decisionmakers frequently act in data-poor environments, relying heavily on expert judgment.

This occurs particularly in low-frequency highseverity/loss areas, such as life and health and care, as well as in unusual, rare and catastrophic risk appraisal. Given that Solvency II requires assessment of 1-in-200-year events, the regulatory capital regime across the EU is also based on the application of expert judgment.

Decisionmakers can and should demand the most unbiased expert judgment procedures, with June 2016 • THE ACTUARY 25 www.theactuary.com

23/05/2016 09:19

Structured expert judgment is an auditable and objective combination of multiple judgments, each weighted by its skill in gauging uncertainty”

objective criteria to appraise expert performance. But how? Referencing one actual study, we discuss one approach, used in other fields but not yet in (re)insurance. This is structured expert judgment (SEJ), which is an auditable and objective combination of multiple judgments, each weighted by its skill in gauging uncertainty. This produces a better overall judgment within a plausible range of outcomes.

Expert opinion Figure 1: Seed question 11

Figure 3: Target question 7

Expert 1

Expert 1

Expert 2

Expert 2

Expert 3

Expert 3

Expert 4

Expert 4

Expert 5

Expert 5

Expert 6

Expert 6

Expert 7

Expert 7

Expert 8

Expert 8

Expert 9

Expert 9

Equal weighted combination

Equal weighted combination

Performance weighted combination

Performance weighted combination 0

200 400 600 800 1000 1200

Experts’ assessment of past SR&CC event frequency in South East Asia, 1990-2000 26

0

500

1000

1500 2000

Experts’ assessment of future SR&CC event frequency in South East Asia, 2016

Consulting 10 experts will yield 10 different answers. Each answer is an (unknowable) function of an expert’s previous experience, grasp of data, judgmental capability, biases or mood on the day. Without a method of selecting between so many different judgments, the customer (insurance company) often simply sticks with what they know best: a longstanding provider or market reputation.

None of these is any indicator of capability: the client cannot know the quality, since no performance-based appraisal of forecasting ability has occurred.

While a single expert’s judgment might be an outlier, any simple averaging leads to limited gains. As each expert is weighted equally, without regard for capability, the final answer may actually be less accurate than some individual answers, owing to outliers.

SEJ differs from, and extends, previous opinion pooling methods. Each expert is first rated with regard to prior performance by being asked a set of seed questions to which the answer is already known to the elicitation facilitator but not necessarily to the expert. Each expert’s performance on these seed questions ascertains their weighting. They are then asked the target questions; the actual judgments being sought, to which answers are not known.

Weightings drawn from the seed questions are then used to combine the experts’ judgments on the target questions, producing one outcome that truly combines different expert judgments in a way that is performance-based, and is thus potentially better than each individual answer.

The design of seed questions is critical: seed questions must be chosen for their tight alignment with the target questions, testing

THE ACTUARY • June 2016 www.theactuary.com

p25_27_june_expert_FINAL•CT.indd 26

23/05/2016 09:19

Live links on our app! p!

SCOTT REID is head of pricing and reinsurance at AIG Life, UK

DR RAVEEM ISMAIL

is a specialty treaty underwriter at Ariel Re, Bermuda

be diluted away (‘equalweighted’ row, table foot).

However, if the experts’ Expert Calibration Information Performance Equal judgments are combined score score weights weights using the weights from the 1 0.2295 1.864 0.4280 0.1111 calibration exercise 2 <0.0001 1.783 <0.0001 0.1111 (penultimate column), 3 0.0020 2.040 0.0041 0.1111 then a combination emerges that capitalises on 4 0.2274 1.665 0.3785 0.1111 these high-performance 5 0.0002 2.153 0.0006 0.1111 experts to produce better 6 <0.0001 3.010 0.0002 0.1111 results than all of them 7 <0.0001 1.505 <0.0001 0.1111 (‘performance-weighted’ 8 <0.0001 2.495 <0.0001 0.1111 row at table foot).

When this performance9 0.0001 0.734 <0.0001 0.1111 weighted combination is Equal0.6286 0.869 (weighted average score) used for a target question, weighted 0.4242 the result can be seen in combination Figure 3. For this forwardPerformance 0.5173 1.701 0.7561 looking question, there is -weighted no known answer, yet we combination see that the performanceweighted process has the same ability required for target questions allowed the influence of experts one and four and thus maximising the utility of the to provide a much tighter and more performance weighting. informative judgment than would most individual experts, or the equal-weighted Frequency of political violence combination (which is inflated by outliers).

Cooke’s classical model for SEJ involves asking each expert for two metrics: a confidence interval between which they think the true value lies (5% to 95%); and a central median value. These are then used to calculate how well the expert gauges uncertainty spreads (information), and how reliably they capture true values within their ranges (statistical accuracy or calibration).

Under the European Cooperation in Science and Technology framework, a network was formed and first elicitation performed in January 2016, with 18 seed and eight target questions. This was for an inherently unknowable future metric: the 2016 frequency of strikes, riots and civil commotion (SR&CC) in blocs of countries (Central Asia, Maghreb), with participants drawn from across the (re)insurance profession. An example of their judgments on a single seed question (related to prior SR&CC events in South-East Asia) is shown in Figure 1. Experts produced a variety of median values and ranges, some having tightly bound ranges that captured the true value (dotted line).

Figure 2 (above) shows information and calibration scores across the full seed question set. Two experts (experts one and four) emerge with notably strong performance-based weights. If all experts were weighted equally (last column), this discovered capability would Figure 2 Individual and weighted scores for nine experts across 18 seed questions

For the performance-weighted combination, outliers are ameliorated and identified experts given more weight. Such a final frequency, with associated range, could now feed a pricing or catastrophe model with greater assurance than customary approaches. Structured expert judgment is still judgment. But it is not guesswork. It is a transparent method of pooling multiple opinions, weighted according to performance criteria aligned to the actual judgments being sought. Where data or models are lacking, it forms an objective and auditable method of producing decisionmaking judgments and inputs to models.

We have described a first SEJ elicitation in our area of interest, where this method has been shown to identify and outperform uncalibrated methods.

It should be noted that SEJ is not a silver bullet. Where there are science-based models or suitable data, these should trump expert judgment (or be used in tandem). But in their absence, in classes of business such as political violence, and for situations where tail risk is being gauged, SEJ would look to naturally provide significant enhancement to decisionmaking and risk appraisal. a

Seed questions are chosen for their tight alignment with target questions, thus maximising the utility of the performance weighting”

p25_27_june_expert_FINAL•CT.indd 27

23/05/2016 09:19

Matthew Edwards and Nicola Oliver review the emergence of antibioticresistant bacteria, their plausible effects on mortality and recent progress in the development of new drugs

The

28

new arms race

THE ACTUARY â&#x20AC;˘ June 2016 www.theactuary.com

p28_30_june_antibiotics_FINALâ&#x20AC;˘CT.indd 28

23/05/2016 09:19

Health Antibiotics

How resistance developed

“One sometimes finds what one is not looking for,” said Sir Alexander Fleming.

Although Fleming is credited with discovering antibiotics, their use has persisted throughout history, with evidence that the ancient Egyptians, for example, applied mouldy bread to infected wounds. Prior to Fleming’s discovery, there had been a long period of scientific endeavour in relation to antibiotic development.

In 1640, John Parkington, a 17th-century apothecary, advocated the use of mould as a treatment. In 1871, Joseph Lister, investigating Sir John Burdon-Sanderson’s discovery that mould prevented culture fluid from producing bacteria, successfully treated a nurse with an unresponsive infection using a mould-based substance described as penicillium.

In 1877, Louis Pasteur observed inhibition of bacterial activity in cultures of anthrax when contaminated with mould. In 1897, Ernest Duchesne applied the protective properties of mould to successfully cure typhoid in animals. Additionally, little attention was paid at the time to a paper presented in 1920 by Belgian scientists Andre Gratia and Sara Dath, who observed that fungal contamination, which they identified as a species of penicillium, inhibited the growth of Staphylococcus aureus.

Finally, in 1928, Scottish biologist Alexander Fleming noticed a halo of inhibition of bacterial growth in a staphylococcus culture plate contaminated with a mould identified as penicillium notatum. He subsequently isolated and grew the mould in pure culture, which ultimately led to the successful mass production of penicillin.

Figure 1 shows a timeline of modern antibiotic discovery and subsequent resistance according to antibiotic class.

Bacteria constantly evolve to maintain their viability in the face of the antibiotics used against them, as a consequence of Darwinian evolutionary mechanisms.

Resistance is encoded in the DNA of bacteria whose genetic material can be passed directly between adjacent bacteria cells, through the release of DNA material at bacterial cell death, or through reproduction.

Multiple modes of antibiotic resistance have been described, including inactivation or modification of the antibiotic, alteration of the antibiotic target site to reduce binding capacity, modification of metabolic pathways of the bacteria, and modification of transport pathways, primarily efflux, which describes the movement of the antibiotic out of the bacteria cell.

Antibiotic resistance is by no means a 21st-century phenomenon; resistance to penicillin was first identified in 1940, and Alexander Fleming himself predicted the likely hazardous consequence of mass use of antibiotics. A number of different factors are implicated in the modern, rapid development of antibiotic resistance: ● Poor or absent controls on antibiotic prescribing ● Inappropriate antibiotic prescribing ● Overuse of antibiotics in vulnerable populations, such as hospitals and care homes, where cross-infection rates are high ● Increasing use of antibiotics in animal husbandry ● The availability of easy global travel, providing routes for the wider spread of resistant strains of bacteria.

The UK government issued a five-year strategy document in 2013 for tackling some of these factors in a bid to reduce antibiotic

Figure 1 Timeline of modern antibiotic discovery and subsequent resistance

Antibiotic discovery and resistance timeline

resistance, through improved infection control measures, improved diagnostics, appropriate prescribing and improved surveillance.

Mortality and longevity effects Recent deaths owing to antibiotic-resistant infections are estimated at around 50,000 per year in Europe and the US. What, then, does the future hold, given that antibiotic resistance is “no longer a prediction for the future; it is happening right now… and is putting at risk the ability to treat common infections”? (WHO Fact sheet, 2015).

A return to the infectious disease mortality of the pre-antibiotic era (the early 1940s) is unlikely. Quite apart from the increasing focus on new antibiotic development and other areas, such as hospital hygiene, some of the decline in infectious disease mortality is attributable to improved vaccination programmes, enhanced living standards and personal nutrition (for example, tuberculosis or TB mortality is more severe in the malnourished).

For the purpose of generating some reasonable numbers for comparison, assume that mortality relating to infectious diseases increases to around half of its 1940s levels over the next 10 years. This would imply a return to infectious disease mortality of 0.5 per 1,000 by 2025, corresponding to an annual increase in mortality of around 0.2%-0.3% in relative terms (depending on age range and gender). This gives us some indication of a feasible change in mortality over the medium-term future.

Alternatively, we can consider outputs of the model developed by the not-for-profit research institute RAND Europe as part of the O’Neill review report (Taylor et al, 2014).

Figure 2 Working age population loss in EU/EEA/OECD countries – million people per year, by year 20

Antibiotic class

18

Penicillins

Macrolides

Tetracyclines

Fluoroquinolones

Carbapenems 16 14 12

Date of resistance identified

1940

1953

10

1985 1993

8

Date of discovery

1928

1948

1985

Year 1920

1930

1940

1950

1960

1970

1980

1990

30 years since a new class of antibiotics was last introduced 2000

2010

2020

6 4 2 0 Base Sc1 Sc2 Sc3 Sc4 Sc5 Sc6 Sc7

Source: Public Health England, 2015a

June 2016 • THE ACTUARY 29 www.theactuary.com

p28_30_june_antibiotics_FINAL•CT.indd 29

23/05/2016 09:20

Live links on our app! p!

MATTHEW EDWARDS is

head of mortality and longevity in Willis Towers Watson’s life insurance practice

The publication focuses on economic impacts rather than directly on mortality, and there is relatively little detail provided regarding the intermediate mortality calculations used in the model. However, figures available for the impact of antibiotic resistance on the projected loss in working age population, by broad geographical region, indicate an increase in annual mortality of around 0.1 per 1,000 over the next 10-20 years.

This is based on considering their ‘scenario four’, where around 40% resistance rates are reached in 15 years. Scenario four ranks as the second-most optimistic of the seven scenarios explored (not including baseline).

Figure 2 (p29) shows the scenarios graphically, with reference to the projected effect by year 20. The baseline of the graph relates to an assumption of no antibacterial resistance. Scenario four represents a mortality increase of about 2%-3% a year which, together with the previous result of 0.2-0.3% a year, shows the plausible range of mortality worsening from antibiotic resistance.

Antibiotic resistance is likely to have, at best, a material impact on expected mediumterm mortality/longevity improvements, and, at worst (a ‘plausible’ worst rather than a 1-in-200 extreme event), could largely cancel out or even negate those improvements.

As of September 2015, Table 1 Current status drug development for antibiotics including an estimated 39 new recently approved compounds. As of September 2015 antibiotics with the potential to treat serious Drug Year Status Target bacterial infections are Tedizolid 2015 Available ABSSSI in clinical development. phosphate Data from the 2015 Dalbavancin 2014 Available (US MRSA (Methicillin-resistant English Surveillance only) Staphylococcus aureus) Programme for Antimicrobial Utilisation Oritavancin 2015 Approved but MRSA, Skin and soft tissue not yet launched infections (SSTI) and Resistance (ESPAUR) report shows that just 19 Ceftolozane/ 2015 Available E. coli, cUTI (complicated Tazobactam urinary tract infection) antibiotics (belonging to fewer antibiotic classes) Teixobactin 2015 Early stages MRSA, Mycobacterium currently account for tuberculosis more than 88% of all Ceftazidime2014 Pre-registration Complicated IAIs (intraprescribing in hospitals Avibactam EU/UK abdominal infections) and UTIs (urinary tract infection) and the community, and none of these is a Delafloxacin 2015 Phase 3 trials ABSSSI recent discovery.

Eravacycline 2015 Phase 3 trials Complicated IAIs (intraTwo new classes of abdominal) and UTIs antibiotic are Teixobactin UTIs and Brilacidin.

Plazomicin 2015 Phase 3 trials cUTI, bacterial pneumonia, Teixobactin is a small complicated intra-abdominal molecule antibiotic and kidney infections that is active against Solithromycin 2015 Phase 3 trials Community-acquired gram-positive bacteria, bacterial pneumonia, representing a new class uncomplicated urogenital of antibiotic, which gonorrhoea, urethritis harms bacteria by Surotomycin 2015 Phase 3 trials C. difficile-associated binding to components diarrhoea essential to cell-wall Brilacidin 2015 Phase 2 trials ABSSSI construction. It was

NICOLA OLIVER is the director and head of longevity and mortality at Medical Intelligence (UK) Limited

reported to be potent in experimental conditions against a number of bacteria, including those with known antibiotic resistance and TB. While human clinical trials are yet to be conducted, animal trials have also reported success.

Brilacidin is the first of a completely new class of antibiotic called defensin-mimetics, which are modelled on natural human immune proteins and therefore may reduce the risk of future bacterial resistance. This drug is in the phase-two stage of clinical trials, and safety and clinical efficacy were demonstrated in a trial that involved patients with acute bacterial skin and skin structure infections (ABSSSI).

Table 1 provides a summary of the current status of antibiotic drug discovery, including recently approved compounds, as well as those in the trial process.

It is suggested that a regular supply of two to four licensed ‘first in class’ compounds per decade would give the opportunity to stay ahead of resistance to preceding classes of antibiotics, as long as each new drug is used only as resistance dictates, rather than as a potential ‘block-buster’ (HM Government [O’Neill], 2015). Further analysis by O’Neill also suggests that investment is required in order to develop about 15 licensed antibiotics per decade, which should aim to encompass two new broad-spectrum classes and two new targeted therapeutic classes every 10 years, to address currently unknown medical needs.

Since the 1950s, we have taken the availability and efficacy of antibiotics for granted, but it is clear we are now entering an era in which antibiotic resistance will have a material impact on mortality.

In her introduction to the profession’s most recent Longevity Bulletin, the UK’s chief medical officer, Professor Dame Sally Davies, described antibiotic resistance as “one of the most serious problems we have faced in [her] working lifetime”. We agree with her comment that: “It is quite possible, and perhaps even likely, that the recent era of material mortality improvements will give way to many years of material mortality worsening.” a

Source: O Grada, 2015/Pew Charitable Trusts, 2015

Find out more...

To highlight the significant problem of resistance to antimicrobials, the Institute and Faculty of Actuaries recently published the eighth edition of the Longevity Bulletin. This issue presents a set of articles and case studies that examine the economic, societal and human impact of antimicrobial resistance. The Longevity Bulletin was accompanied by an inter-disciplinary event that focused on deepening understanding of how to address these issues.

Download the Longevity Bulletin or view the event online at: bit.ly/1UiOs8m

30

THE ACTUARY • June 2016 www.theactuary.com

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23/05/2016 09:20

Life Matching adjustment

Adjust

to fit

Live links on our app! p!

Sathish Umapathy explains why the matching adjustment is a vital measure for life insurance companies under Solvency II

A number of insurers have already transitioned their asset portfolios to comply with matching adjustment (MA) rules, while others have opted out owing to the practical difficulties associated with managing matching adjustment portfolios. In this article, we share our insights on what it takes to build and manage matching adjustment portfolios.

IAN WHADCOCK / IKON

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June 2016 • THE ACTUARY 31 www.theactuary.com

23/05/2016 10:36

MA increases the numerator of the Solvency II ratio by reducing the value of their liabilities and at the same time decreases the denominator” Under the Solvency II framework, insurers value their liabilities using the risk-free interest rate. This is derived from the market swap rates for the liquid part of the curve, extrapolated thereafter to a long-term equilibrium rate.

The matching adjustment (MA) is an adjustment made to the risk-free interest rate when the insurer sets aside a portfolio of assets to back a predictable portion of their liabilities.

It is based on the yield spread over the risk-free rate credit spread of the assigned portfolio of matching assets, minus a fundamental spread that accounts for expected default and downgrade risk. It is designed to reflect the fact that long-term, buy-and-hold investors only bear downgrade and default risks as they seek to hold assets to maturity, and allows them to capture other aspects of the spread

Figure 1a: Cashflow profile of a hypothetical portfolio, which passes the PRA cashflow tests but not well matched

£20m Net cashflow Liability cashflows

£15m

Assets cashflows

Cashflow

£10m

£5m

0

-£5m

-£10m 2015

2020

2025

2030

2035

2040

2045

2050

2055

2060 Source: GSAM

Figure 1b: Accumulated shortfall/surplus of the cashflow profile in 1a under an interest-rate shock

£30m Accumulated surplus (shortfall)

Accumulated surplus (shortfall)

£25m

Using shocked risk-free yield curve Using current risk-free yield curve

£20m £15m

£10m £5m 0

-£5m -£10m 2015

2020

2025

2030

2035

2040

2045

2050

2055

2060 Source: GSAM

32

such as the liquidity premium (see feature, p22).

The benefits of MA are twofold. It increases the numerator of the Solvency II ratio (own funds) by reducing the value of their liabilities and at the same time decreases the denominator (the capital requirement). Thus one might ask why many insurers have not opted for the matching adjustment. But, as quoted by many actuaries: “with the great capital benefits come the great approval requirements”.

Within the UK, the Prudential Regulation Authority (PRA) has set quantitative and qualitative requirements for a matching adjustment-compliant portfolio. These requirements range from the quality and the nature of the assets to liquidity planning for future cash outflows. A key challenge for an insurer is to identify eligible assets. They must have a fixed set of cashflows, thereby ruling out bonds with embedded options or floating interest rates that make their cashflows unpredictable. Standard databases employed by investment and asset liability management teams cannot usually be considered sufficiently reliable or granular for this exercise; going back to the prospectus is necessary for each and every bond issue in the fixed income universe to identify acceptable levels of make-whole provisions, call optionality, or hidden clauses that would make it unsuitable.

The quality of cashflow matching is another area where the PRA has defined tests that seek to evidence that the asset portfolio produces sufficient cashflows (net of default and downgrade haircuts) to back the liabilities: ● Test 1 – discounted accumulated cashflow must not exceed 3% of liabilities in any year ● Test 2 – residual interest rate, inflation and currency risks are measured with a 99.5th percentile value-at-risk metric ● Test 3 – notional swap test requires that sufficient assets are allocated to back the liabilities.

Portfolio construction Constructing a matching adjustment portfolio is an onerous task with various constraints in play. Insurers can seek a portfolio with the maximum MA level achievable or can compromise some level of MA for a reduced turnover or a higher average rating. One could see the portfolio construction as a constrained optimisation problem aimed at maximising the MA level from an investment universe of fixed income assets with appropriate credit fundamentals, subject to compliance with the cashflow tests, the investment guidelines and the spread capital charge limit.

As part of portfolio construction, one must ensure appropriate resilience of cashflow tests against interest rate stress scenarios.

To illustrate this, consider the cashflow profile

THE ACTUARY • June 2016 www.theactuary.com

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23/05/2016 10:37

SATHISH UMAPATHY is

is a member of the Insurance Strategies team at GSAM Insurance Asset Management

Risk management A key residual risk in MA portfolios is the potential for credit deterioration. While one could argue that MA portfolios are not directly exposed to credit-spread movements, credit-spread widening tends to increase the likelihood of downgrades and defaults and higher corresponding haircuts.

Credit rating downgrades impact MA portfolios in two ways: ● Higher haircuts and cash injection: rating downgrades give rise to higher haircuts applied to the asset cashflows and, in turn, require additional cash to bring the shortfall to the level before rating downgrade ● Cost of downgrade adjustment (CoD): rating downgrades increase the CoD, thereby increasing the fundamental spread and reducing the MA. Monitoring and mitigating rating transition risk is vital for MA portfolios. The credit profile of each bond may be monitored according to a number of metrics based on fundamental credit analysis. Combining fundamental views with a quantitative downgrade analysis of the MA provides a powerful tool to manage downgrade risk.

The overall exposure of the MA portfolio to rating downgrade is quantified by applying ‘parallel’ rating shocks (for example, all Abonds are downgraded to BBB+) and calculating the impact on the Solvency II ratio under these scenarios. Applying these shocks to different maturity segments informs the insurer about priority risk management areas (see Figure 2a and 2b). This analysis may inform investment guideline limits and ongoing portfolio risk management action.

hedging and opportunity cost associated with liquidity buffers; and 2. Stress testing of the matching and liquidity position under adverse FX and interest rate scenarios.

The application of the matching adjustment has the potential to support the level and the stability of an insurer’s solvency position by increasing their own funds,

200%

175%

150%

<10y bonds 125%

10y - 15y bonds >15y bonds

100% Base

AA bonds

A bonds

BBB bonds

All bonds Source: GSAM

Figure 2b: Accumulated shortfall under downgrade shocks for a hypothetical portfolio

£10m Base scenario

Foreign currency investments

£5m

Accumulated surplus (shortfall)

The limited liquidity and diversity of the sterling corporate bond market has led a number of annuity writers to consider investments in US dollar credit hedged to sterling. Currency hedging raises a number of challenges for a MA portfolio, including the design of an appropriate hedging strategy (for example, cross-currency swaps) and liquidity planning to manage collateral calls in a way that respects cashflow matching constraints.

The framework presented above incorporates these aspects at two levels: 1. Liquidity levels required to support potential collateral calls are incorporated as constraints in the portfolio construction phase, striking an appropriate trade-off between the increased yield and diversity introduced by foreign currency credit with the cost of

reducing required capital, and aligning the market sensitivity of the liability and asset portfolios. However, implementing such portfolios is not straightforward. If one overcomes the obstacles in defining the eligible asset universe, constructing an efficient portfolio and managing it on an ongoing basis, the benefit is there to be reaped. I think it is worth the effort. a

Figure 2a: Downgrade shocks applied to a hypothetical portfolio

Solvency ratio

in Figure 1a, which passes test 1. However, under a humped risk-free curve, the shortfalls are magnified, resulting in a 135% increase in the maximum shortfall (see Figure 1b).

Systematic downgrades

AA bonds

A bonds

BB bonds

0

-£5m

-£10m

-£15m 2016

2021

2026

2031

2036

2041

2046

2051

2056

2061 Source: GSAM

June 2016 • THE ACTUARY 33 www.theactuary.com

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At the back Student student@theactuary.com

Student Planning a break proves an instructive experience for Jessica Elkin, even before she heads off on her trip

THE HOLIDAY THAT NEARLY WASN’T Genius that I am, I once lost my passport six days before I was due to go on holiday.

At roughly the same time, I also realised I needed a visa for my connection in the US, and that my vaccinations had mostly expired, making me susceptible to typhoid, various types of hepatitis and rabies.

Usually, I over-prepare for trips, so all of this left me feeling rather less than relaxed.

I can’t be sure why my normally sterling brain decided to check out on this occasion.

I suspect that, having ensured I didn’t need visas for the countries where I’d be holidaying, I’d developed an “oh, I don’t need to do anything, everything’s fine” mindset.

This delusion of organisation was apparently contagious and had spread into other areas of my brain, leaving a general impression of preparedness, which was – alas – false. The realisation was not pleasant.

False positive The following morning (with five days to go until my trip) I went straight to the passport office when it opened, where it turned out no one would talk to me without an appointment.

I rang up and was told it would take seven to eight days to replace a lost or stolen passport from the time of the appointment. But I couldn’t book an appointment because the system was down.

I then went to the office and called my insurer, who said they don’t cover lost or stolen passports. By this point, I was hyperventilating into a paper bag.

It wasn’t pretty.

In the end, I requested to go home at 34

THE ACTUARY • June 2016 www.theactuary.com

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lunchtime and ransack my flat, followed by some attempt at working from home.

Thankfully, this paid off – I had a sudden flash of inspiration and found the passport in an envelope with a bunch of papers. Hurrah!

After crying with relief, I organised a US visa waiver online and booked inoculations at a travel clinic for a few days later. Things came together and I was in the air as planned at the weekend.

Fail to prepare...

I realise this story could be condensed into the four words, “person temporarily loses passport”, but my point is that sometimes things aren’t as bad as you think. Even when they seem really bad. We all forget things, make mistakes, panic. Sometimes all three at once. Most of the time, there’s a solution.

The inevitable tie-in to our actuarial universe could appear in a variety of guises.

For example, if you make a mistake at work, the likelihood is that it won’t be as bad as you think. Almost 99% of the time, this is true, even if it all unravels just as you imagined.

You’ll move on; others will move on. What you do is important, and your career certainly is, but most of the time there will be a remedy.

And then, for us lot, there’s exams. You really shouldn’t beat yourself up about poor exam performance, especially not in that intervening period before results when you’re still unsure how it’ll play out. This month is always one of jangling nerves, with CT results at the end and ST/SA results just a few weeks later. But exams are not the final word in your career, nor the absolute yardstick of your intellect. If you fail, there’s always next time, and further down the line it will be forgotten.

Nothing really matters Author Helen Fielding has a good grasp on such things. In her rules for living, she provides some sage advice: “Hardly anything matters; if you get upset, ask yourself, does it really matter?” She follows this with: “The key to success lies in how you pick yourself up from failure.”

When I’m kicking myself about something, I try to rationalise that if it won’t seem such a big deal in a year’s time, it’s probably not proportionately important. I tried to focus on this during the passport debacle, when I was convinced it was an irredeemable situation, and that I’d have to stay with my parents for two weeks and learn how to Photoshop myself into photos of beach scenes to fake my holiday. I didn’t get as far as downloading the software, so I’m calling it a success. a PHIL WRIGGLESWORTH

23/05/2016 09:20

At the back

1

2

3

4

5

6

7

8

Coffee break

iQ

9

13 14

BY NYLFIA

© Nylfia

11 12 14 16 17 19 23 24

Good man brings gold to composer (8) The boy’s written up essay (6) Pen used in work in hospital? (4) Novel of blatant ambition initially withdrawn from release (5,5) Power unit shorted when connected to earth at Royal Society mains? (6) Agent hesitated repeatedly (7) Dash to ferry on river (9) Texas attitude, say (5) Before tender’s arrival, hull broke (5) British want Elder shrub (5,4) Pound appreciated (7) Chatter with novice (6)

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27 Medicine to oppose shake - nurses primarily build into purge (10) 28 Introductions from Clarence House automatically stop short for Charles (4) 29 Plant producing Silicon slack with Oxygen exchange? (6) 30 Ship’s runner taking taxi home with youngster (5,3)

7 8 13 15 18

Down

20

2 Barge past stroller here (7) 3 Bones broken regularly in Dublin games (5) 4 Playing with 1 seaman’s head after knock on consequences? (7) 5 Fish found in jar when lid removed (4) 6 “Bottom of the inning” with odder pitching

21

Level pegging Mensa puzzle 659

21

22

27

Ten of the solutions are connected by a common characteristic.

Clues to these may be partial 1 6 9 10

12

11

AFFIRMATIVE ACTION Across

10

22 25 26

from old Brooklyn teamsman (6) Persons honoured by salute are at sea (9) Most valuable State treasure store (7) Nylfia’s embracing old measure (5) Musicmaker making lover into drunk (5,4) Hankie required when passionate about losing introduction to former wife (7) Hard skin covering lump in central part of ear? (4,3) Painter reflected while crossing upon a diagonal (7) Spots essentially best savoury dishes (6) Strip at breakfast?

Witless Dictator departed when associated with hearing organ (4)

Jumping jacks Mensa puzzle 660

www.mensa.org.uk Two vehicles set off from the same point to travel the same journey.

The first vehicle sets off six minutes before the second vehicle.

If the first vehicle travels at 40 km/h and the second vehicle travels at 90 km/h.

How many kilometres from the starting point will the two vehicles draw level?

is to A

B

as C

is to D

FOR PUZZLES SOLUTIONS – June 2016 Answers and more can be found online.

Please go to www.theactuary.com/puzzles

June 2016 • THE ACTUARY 35 www.theactuary.com

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23/05/2016 09:21

News NEWS UPDATES FROM THE ACTUARIAL

People & Society

A diverse banquet

By Emma McWilliam The Worshipful Company of Actuaries (WCA) enjoyed a splendid evening at its Annual Banquet on 18 April. Hosted by its Master, Peter Thompson (also the birthday boy on this occasion), the event was a huge success, with over 200 liverymen and guests in attendance.

The company has been fortunate enough to enjoy its annual banquet in the Egyptian Hall of Mansion House since the WCA was founded in 1979. On this occasion, court assistant Julie Griffiths welcomed everyone, including many

distinguished guests. To name just a few, these included principal guest Sir Richard Trainor, rector of Exeter College Oxford, who previously oversaw fundraising initiatives generating £500 million while principal and later president of King’s College London. Also present was former Lord Mayor, and now alderman Sir Alan Yarrow, who received a knighthood in the New Years’ Honours list for his services to international business and the City of London, and our very own Fiona Morrison, in her capacity as president of the IFoA.

Perhaps the most memorable part of the evening was the feeling of pride at just how far our profession and Company have come on the journey of achieving diversity.

As our court assistant poignantly noted, long gone are the early days when the event was once known as the ‘ladies dinner’. And ‘long gone’ they are, as our Company now has a refreshing and ever-increasing number of women who are liverymen. Indeed, our diverse court is looking forward to welcoming its first female Master, Sally Bridgeland, next year.

Poker faces

By Kateryna Katyukha

Laughter at the lounge

By Louise Gallen On 11 February, the student committee of The Society of Actuaries in Ireland held a comedy night in Dublin’s renowned Laughter Lounge.

The sell-out event kicked off at 7.30pm, with 100 students and recent qualifiers receiving a complimentary cocktail on arrival at the city centre venue. Pre-show, the group had exclusive access to the VIP lounge, where finger food and drinks were enjoyed alongside a few games of pool.

Our host for the evening, Steve Cummins, kept the crowd entertained between acts with his borderline-controversial sense of humour. First comedian to take the stage was Patrick Murray, who many recognised from his role in crime drama series Love/Hate. Next up was Michael Mee, who had the crowd in stitches with his one-liners. Finally the headline act, Owen O’Neill, did not disappoint. Despite occupying front-row seats, we somehow managed to avoid any actuarial gibes!

After the final act, many of the students stayed for a few more drinks, availing themselves of the venue’s complimentary photo booth (evidence of which can, unfortunately, be found on Laughter Lounge’s Facebook page).

The student committee would like to thank all attendees as well as the staff at Laughter Lounge for providing such an enjoyable event and outstanding service on the night.

Check out our Facebook page for photos and details of our next event: www.facebook.com/StudentSocietyofActuariesIreland 36

On 10 March, SIAS held its annual poker tournament at the Grosvenor Casino.

The event proved as popular as ever, with reserved tables overflowing the VIP room.

In total, 60 actuaries competed for the title of the best poker player in 2016. The prize pot was £1,675.

After a short learn-to-play session for those who didn’t know their ‘big blind’ from their ‘bluff ’, players were randomly allocated to a table and starting hands were dealt. The rooms were soon buzzing with excitement, happiness and despair as players began battling

to get to the final table. Sadly some were knocked out early on, but that was not going to stop them. A cash table was set up and some of the players had more ‘luck’ there.

To ensure maximum playing time, canapés and drinks were served at the tables and, after nearly four and a half hours, our poker champion emerged. It was a tense final table with all 10 players winning a cash prize, but it was Ben Paterson (Canada Life) who took the crown, followed by Neil Povey (Prudential) a close second and Andrew Neilson (Prudential) in third.

Congratulations to you all.

THE ACTUARY • June 2016 www.theactuary.com

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23/05/2016 09:21

ARIAL PROFESSION

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

Spotlight on LASS

By Nick Foster Leicester Actuarial Science Society (LASS) has recently launched a professional members’ section, building on the success of the student society formed in 2014. If you are a IFoA member based in or around Leicester, Nottingham, Peterborough or Coventry, then this is your local regional society and we offer you a warm welcome to any of our events.

Innovation in Zimbabwe

By Sam L Mawoyo The Actuarial Society of Zimbabwe (ASZ) has had a number of interesting events since our last update in The Actuary (August 2015).

We congratulate and wish Shepherd Fungura all the best after assuming presidency from David Mureriwa in March 2016. We would like to thank David for his tireless efforts and immense contributions in leading the ASZ and his services to the profession during his term.

Membership and awareness of our profession in Zimbabwe have grown significantly under his leadership.

The ASZ council conferred honorary lifetime membership to Mark Hyde for his vast contributions to actuarial science in Zimbabwe. Mark has been a mainstay for actuarial science in the country. He has, over many years, provided much needed support with help from his wife, Linda. They are both

role models for future actuaries in Zimbabwe.

The ASZ also hosted Douglas Hoto and Kelvin Chamunorwa, who gave presentations to members towards the end of 2015.

Douglas, an experienced business leader who is the CEO of a Zimbabwean insurance group, presented on ‘entrepreneurship and being an actuary’. Kelvin, a former editor of The Actuary, gave a presentation entitled ‘adapt or die’. Both talks were well attended and very insightful, and can be found on the ASZ YouTube Channel.

We are currently preparing for the 2016 Actuarial Convention, which will be held on Friday 10 June at the Meikles Hotel in Harare.

The theme for the convention is ‘innovation and relevance’. For further information on participating in, or assisting the ASZ, please contact our secretary Tawanda Chituku on

tchituku@atchison.co.zw

Nominate your charity champion Each year, the Worshipful Company of Actuaries presents the Phiatus Award to an actuary who has made an impressive contribution to charity.

There is still time to submit your nominations for the

2015 award. The award is not simply about fundraising – although we do want to hear about impressive fundraising efforts – but will recognise all forms of charitable work and activity.

Please send through your nominations – we want to hear about and encourage actuaries in their work for charity.

These should be sent to the editor of The Actuary at

Mr David Munro died recently, aged 86. He was a Fellow.

Mr Athol Ward Tills died recently, aged 91. He was an Associate.

Mr Joseph Gilfrid Day died recently, aged 92. He was a Fellow.

p36_37_June_soc_news_FINAL•CT.indd 37

Actuarial steering board We will also be running an actuarial steering board meeting earlier that day at the university, for local actuarial employers who might be interested in taking on placement students.

Many employers find that this can be a cost-effective way of meeting a short-term resource need, as well as removing much of the risk from their actuarial student recruitment process. The steering board is being set up for employers to have a more direct influence on how the programme is run.

Resources for projects Are you looking for extra resources for a specific project or task? The MSc Actuarial Science and BSc Mathematics and Actuarial Science attracts students with highly developed computer and modelling skills, who are working through CT1-8 as part of their studies.

If there are opportunities available, please contact Nick Foster FIA at nick.foster@le.ac.uk

New student committee Our annual student committee election has just taken place. I can now announce that our new student committee is (from left to right): Priscilla Denteh (president), Pippa Hyde (vice-president), Bilkis Begum (secretary) and Yaowei Bo (treasurer).

editor@theactuary.com

Deaths

SHUTTERSTOCK / ISTOCK

Professional skills CPD If you need a CPD event in order to meet the requirements of the IFoA’s Stage 3 Professional Skills Training prior to 30 June, this is it, and is suitable for actuaries working in any area.

Date: Tuesday 28 June 2016 Time: 17:15-19:30 Venue: University of Leicester Topic: Professional skills for experienced members Trainers: Leena Sodha FIA and Nick Foster FIA CPD: Two hours

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

June 2016 • THE ACTUARY 37 www.theactuary.com

23/05/2016 09:21

SPONSORED BY

Appointments peoplemoves@theactuary.com

Moves The Association of Consulting Actuaries (ACA) has elected Bob Scott FIA, FIAA (above) as its new chairman. He is senior partner at Lane, Clark & Peacock and takes office on 1 June 2016, succeeding David Fairs, who completed his two-year term.

Commenting on his election, Scott said: “In the past two years we have seen radical changes to pensions taxation... Despite all this uncertainty, we do have a sound platform on which to build a viable pension system. Under my chairmanship, the ACA will continue to offer guidance to politicians and government

departments on pensions strategy and delivery, as we have done for many years.”

Hymans Robertson has announced a number of new senior appointments at partner level. The new partners are as follows: Emma McWilliam (above) joined the firm in 2014 and helps lead the Life Insurance consulting team.

A senior consulting actuary with 20 years’ experience, she previously worked at both Milliman and Ernst & Young in London, New York and Zurich.

McWilliam chairs the

Financial Reporting Practitioner Committee of the industry trade body Investment and Life Assurance Group, and is also the editor of Longevity Risk, published by RiskBooks.

Susan McIIvogue (above) advises trustees and firms on the risks in their defined benefit pension schemes, working with schemes with assets ranging from £50 million to over £1.5 billion. She joined

Hymans Robertson in 2014 from Mercer and has over 19 years’ experience.

John Taylor (above) is head of Hymans Robertson’s Guided Outcomes™ solution.

Taylor began his working life as an actuary in the life insurance industry and has spent most of his 20-year career developing savings products and marketing them to customers.

Rachel Myatt (above) joined Hymans Robertson in 2003.

She advises corporate and trustee clients with defined benefit schemes, and has experience in both the public and private sector. Myatt also leads the firm’s student support network.

Ross Evans (above) is head of asset liability modelling and is also a member of the Life Insurance consulting leadership team.

A qualified actuary with a wealth of life consulting experience, his previous role was in investment banking, where he spent five years as a director of RBS’s asset and liability management advisory team.

www.hfg.co.uk

SAM SPINK

ACTUARY OF THE FUTURE

Employer and area of work

Favourite Excel function?

Greatest risk you have ever taken?

PwC, Insurance and Banking.

Index Match.

How would your best friend describe you?

How do you relax away from the office?

Driving to Mongolia in an old 1.2L Skoda with some mates and trusting they knew the way.

I have an unusual fondness for ketchup.

I have impossibly small handwriting.

I am very competitive, and I have disproportionately long legs.

Cricket and exercise in general. I also love a movie night.

What motivates you?

Learning about what I don’t know already.

What would be your personal motto?

Work hard. Work out harder.

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

I wore a santa costume at Christmas in the canteen (no one else was wearing one…) and handed out the secret santa presents.

Alternative career choice?

Fighter pilot or Royal Marine.

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

Micky Flanagan, Scarlett Johansson, Freddie Flintoff, Bear Grylls and my colleague, Pete Barkat.

What’s your most ‘actuarial’ habit?

I have to understand everything.

38

He has held senior roles at a variety of product providers, most recently as managing director at NEST.

What song best describes your work ethic?

Daft Punk – Harder, Better, Faster, Stronger.

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

Australian cricketing legend Don Bradman, to tell me how to improve my batting.

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

Matt Damon – being a combination of Jason Bourne and Will Hunting – would be great but seems unlikely…

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

Anybody who is qualified.

Do you know an actuary destined for greatness?

You can nominate an Actuary of the Future by emailing

aotf@theactuary.com

THE ACTUARY • June 2016 www.theactuary.com

p38_juneAOTF_FINAL•CT.indd 38

23/05/2016 09:22

www.theactuaryjobs.com

Appointments

A P PO I N TME N TS To advertise your vacancies in the magazine and online please contact: Emmanuel Nettey +44 (0) 20 7880 6234 or emmanuel.nettey@redactive.co.uk

Highlighting Opportunities HFGâ&#x20AC;&#x2122;s consultants specialise in matching you to the right role at the right company. Call us Â&#x2013;Â&#x2018;Â&#x2020;Â&#x192;Â&#x203A; Â&#x2013;Â&#x2018; Â&#x160;Â&#x192;Â&#x2DC;Â&#x2021; Â&#x192; Â&#x2026;Â&#x160;Â&#x192;Â&#x2013; Â&#x192;Â&#x201E;Â&#x2018;Â&#x2014;Â&#x2013; Â&#x203A;Â&#x2018;Â&#x2014;Â&#x201D; Â&#x201D;Â&#x2021;Â&#x201C;Â&#x2014;Â&#x2039;Â&#x201D;Â&#x2021;Â?Â&#x2021;Â?Â&#x2013;Â&#x2022;ÇĄ Â&#x192;Â?Â&#x2020; Â&#x2013;Â&#x2018; ƤÂ?Â&#x2020; Â&#x2018;Â&#x2014;Â&#x2013; Â&#x2122;Â&#x160;Â&#x192;Â&#x2013; Â&#x2018;Â&#x2019;Â&#x2019;Â&#x2018;Â&#x201D;Â&#x2013;Â&#x2014;Â?Â&#x2039;Â&#x2013;Â&#x2039;Â&#x2021;Â&#x2022; Â&#x192;Â&#x201D;Â&#x2021; Â&#x192;Â&#x2DC;Â&#x192;Â&#x2039;Â&#x17D;Â&#x192;Â&#x201E;Â&#x17D;Â&#x2021;Ǥ Paul Fox GI Perm +44 (0) 207 220 1103 paul.fox@hfg.co.uk

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

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

David Curran GI Perm +44 (0) 207 337 1201 david@hfg.co.uk

General Insurance - Permanent roles Â&#x2021;Â&#x2019;Â&#x2014;Â&#x2013;Â&#x203A; Â&#x160;Â&#x2039;Â&#x2021;Â&#x2C6; Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x203A;

Í&#x2039;Í&#x2122;Í&#x161;Í&#x2DC;Â? ÇŚ Í&#x2039;Í&#x2122;Í&#x17E;Í&#x2DC;Â? Â&#x201E;Â&#x192;Â&#x2022;Â&#x2039;Â&#x2026;ÇĄ Â&#x2018;Â?Â&#x2020;Â&#x2018;Â?

Â&#x2021;Â&#x192;Â&#x2020; Â&#x2018;Â&#x2C6; Â&#x2021;Â&#x2022;Â&#x2021;Â&#x201D;Â&#x2DC;Â&#x2039;Â?Â&#x2030;

Í&#x2039;Í&#x2122;Í&#x153;Í&#x2DC;Â? ÇŚ Í&#x2039;Í&#x2122;Í&#x17E;Í&#x2DC;Â? Â&#x201E;Â&#x192;Â&#x2022;Â&#x2039;Â&#x2026;ÇĄ Â&#x2018;Â?Â&#x2020;Â&#x2018;Â?

A boutique consultancy is looking for a number two to work closely with the chief actuary. The work will be across reserving and capital, whilst being responsible for mentoring and leading a number of students. Therefore this would be an ideal opportunity for applicants with some people management skills to step up and lead a team.

A leading Lloydâ&#x20AC;&#x2122;s syndicate is looking for an experienced reserving Actuary to lead their reserving function. Managing a large team, this person must have strong leadership skills and relish working with Non Actuaries. The reserving team is full of experienced Actuaries and this role will work in conjunction with them to develop and lead the more junior team members.

Â&#x2018; ƤÂ?Â&#x2020; Â&#x2018;Â&#x2014;Â&#x2013; Â?Â&#x2018;Â&#x201D;Â&#x2021; Â&#x2019;Â&#x17D;Â&#x2021;Â&#x192;Â&#x2022;Â&#x2021; Â&#x2030;Â&#x2021;Â&#x2013; Â&#x2039;Â? Â&#x2013;Â&#x2018;Â&#x2014;Â&#x2026;Â&#x160; Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160; Â&#x2122;Â&#x2039;Â&#x17D;Â&#x17D;Â&#x2039;Â&#x192;Â?ĚťÂ&#x160;Â&#x2C6;Â&#x2030;ǤÂ&#x2026;Â&#x2018;ǤÂ&#x2014;Â? ÇŁ Í&#x2DC;Í&#x17E;Í&#x2DC;Í&#x2122;

Â&#x2018; ƤÂ?Â&#x2020; Â&#x2018;Â&#x2014;Â&#x2013; Â?Â&#x2018;Â&#x201D;Â&#x2021; Â&#x2019;Â&#x17D;Â&#x2021;Â&#x192;Â&#x2022;Â&#x2021; Â&#x2030;Â&#x2021;Â&#x2013; Â&#x2039;Â? Â&#x2013;Â&#x2018;Â&#x2014;Â&#x2026;Â&#x160; Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160; Â&#x2122;Â&#x2039;Â&#x17D;Â&#x17D;Â&#x2039;Â&#x192;Â?ĚťÂ&#x160;Â&#x2C6;Â&#x2030;ǤÂ&#x2026;Â&#x2018;ǤÂ&#x2014;Â? ÇŁ Í&#x2DC;Í&#x17E;Í&#x2DC;Í&#x161;

Â&#x192;Â&#x2019;Â&#x2039;Â&#x2013;Â&#x192;Â&#x17D; Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x2039;Â&#x192;Â&#x17D; Â?Â&#x192;Â&#x17D;Â&#x203A;Â&#x2022;Â&#x2013;

Í&#x2039;Í&#x153;Í&#x2DC;Â? ÇŚ Í&#x2039;Í&#x17E;Í&#x2DC;Â? Â&#x201E;Â&#x192;Â&#x2022;Â&#x2039;Â&#x2026;ÇĄ Â&#x2018;Â?Â&#x2020;Â&#x2018;Â?

Â&#x2030;Â&#x201D;Â&#x2018;Â&#x2122;Â&#x2039;Â?Â&#x2030; Â&#x17D;Â&#x2018;Â&#x203A;Â&#x2020;ÇŻÂ&#x2022; Â&#x203A;Â?Â&#x2020;Â&#x2039;Â&#x2026;Â&#x192;Â&#x2013;Â&#x2021; Â&#x160;Â&#x192;Â&#x2DC;Â&#x2021; Â&#x192;Â? Â&#x2018;Â&#x2019;Â&#x2019;Â&#x2018;Â&#x201D;Â&#x2013;Â&#x2014;Â?Â&#x2039;Â&#x2013;Â&#x203A; Â&#x2C6;Â&#x2018;Â&#x201D; Â&#x192; Â&#x192;Â&#x201D;Â&#x2013;ÇŚ Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;ƤÂ&#x2021;Â&#x2020; Actuary to join their young and dynamic team. The role will be primarily supporting the Head of Capital but have scope to work across Pricing & Reserving. Must have GI Actuarial experience.

For more information please contact: david@hfg.co.uk REF: DC0601 Í&#x2039;Í?Í&#x2DC;Â? ÇŚ Í&#x2039;Í&#x17E;Í?Â?ÇĄ Â&#x2018;Â?Â&#x2020;Â&#x2018;Â?

There is a rare opportunity to work across Pricing, Reserving and Capital within a Lloydâ&#x20AC;&#x2122;s Syndicate. You will be working across the Marine class with the expectation to help with other lines of business. Someone ambitious, experienced in a Non-Life Insurer and willing to get their hands dirty is their ideal candidate.

For more information please contact: david@hfg.co.uk REF: DC0603

Â&#x2039;Â&#x2DC;Â&#x2039;Â&#x2022;Â&#x2039;Â&#x2018;Â?Â&#x192;Â&#x17D; Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x2039;Â&#x192;Â&#x17D; Â?Â&#x192;Â&#x17D;Â&#x203A;Â&#x2022;Â&#x2013;

Â&#x2018;Â&#x201D;Â&#x17D;Â&#x2020;Â&#x2122;Â&#x2039;Â&#x2020;Â&#x2021;

Â&#x2018;Â?Â&#x2022;Â&#x2014;Â&#x17D;Â&#x2013;Â&#x192;Â?Â&#x2013;

Í&#x2039;Í&#x17E;Í?Â? ÇŚ Í&#x2039;Í&#x2122;Í&#x2DC;Í&#x2DC;Â? Â&#x201E;Â&#x192;Â&#x2022;Â&#x2039;Â&#x2026;ÇĄ Â&#x201D;Â&#x2021;Â&#x192;Â&#x2013;Â&#x2021;Â&#x201D; Â&#x2018;Â?Â&#x2020;Â&#x2018;Â?

A challenger consultancy are looking for an all-round actuary to join a truly global team. You will have experience of capital modelling, pricing Č&#x2039;Â&#x2019;Â&#x192;Â&#x201D;Â&#x2013;Â&#x2039;Â&#x2026;Â&#x2014;Â&#x17D;Â&#x192;Â&#x201D;Â&#x17D;Â&#x203A; Č&#x152; Â&#x192;Â?Â&#x2020; Â&#x201D;Â&#x2021;Â&#x2022;Â&#x2021;Â&#x201D;Â&#x2DC;Â&#x2039;Â?Â&#x2030;Ǥ Â&#x160;Â&#x2021; Â&#x201D;Â&#x2018;Â&#x17D;Â&#x2021; Â&#x2122;Â&#x2039;Â&#x17D;Â&#x17D; Â&#x160;Â&#x192;Â&#x2DC;Â&#x2021; Â&#x2022;Â&#x2039;Â&#x2030;Â?Â&#x2039;ƤÂ&#x2026;Â&#x192;Â?Â&#x2013; Â&#x2013;Â&#x201D;Â&#x192;Â&#x2DC;Â&#x2021;Â&#x17D; commitments globally including; South America, Africa, Asia and Europe therfore additional language skills would be a distinct bonus.

For more information please contact: paul.fox@hfg.co.uk REF: PF0601

Â&#x17D;Â&#x2018;Â&#x203A;Â&#x2020;ĚšÂ&#x2022; Â&#x2018;Â?ÇŚ Â&#x201D;Â&#x192;Â&#x2020;Â&#x2039;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x192;Â&#x17D; Â&#x2021;Â&#x2022;Â&#x2021;Â&#x201D;Â&#x2DC;Â&#x2039;Â?Â&#x2030; Â?Â&#x192;Â&#x17D;Â&#x203A;Â&#x2022;Â&#x2013; Í&#x2039;Í&#x153;Í&#x2DC;Â? ÇŚ Í&#x2039;Í&#x17E;Í&#x2DC;Â? Â&#x201E;Â&#x192;Â&#x2022;Â&#x2039;Â&#x2026;ÇĄ Â&#x2018;Â?Â&#x2020;Â&#x2018;Â?

A leading Lloydâ&#x20AC;&#x2122;s Insurer are on the search for a dynamic and outgoing individual for their reserving team. The role has a lot of interaction across the business and will require the ability to build and maintain a number of stakeholder relationships. Part or Nearly Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;ƤÂ&#x2021;Â&#x2020; Â&#x17D;Â&#x2021;Â&#x2DC;Â&#x2021;Â&#x17D; Â&#x2122;Â&#x2018;Â&#x2014;Â&#x17D;Â&#x2020; Â&#x201E;Â&#x2021; Â&#x2039;Â&#x2020;Â&#x2021;Â&#x192;Â&#x17D; Â&#x192;Â?Â&#x2020; Â&#x2018;Â?ÇŚ Â&#x2039;Â&#x2C6;Â&#x2021; Â&#x2021;Â&#x161;Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2039;Â&#x2021;Â?Â&#x2026;Â&#x2021; Â&#x2021;Â&#x2022;Â&#x2022;Â&#x2021;Â?Â&#x2013;Â&#x2039;Â&#x192;Â&#x17D;Ǥ For more information please contact: david@hfg.co.uk REF: DC0602 Í&#x2039;Í&#x203A;Í?Â? ÇŚ Í&#x2039;Í?Í?Â?ÇĄ Â&#x2018;Â?Â&#x2020;Â&#x2018;Â?

A London Market specialist MGA are continuing to build out their Actuarial team and have 3 opportunities for experienced Student Actuaries to join. Reporting to the Head of Actuarial, you will be working across Reserving and Pricing for a number of P&C lines of business. With growth plans over the next few years this is a great team to be a part of.

For more information please contact: david@hfg.co.uk REF: DC0604

Â&#x2039;Â&#x161;Â&#x2021;Â&#x2020; Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x2039;Â&#x192;Â&#x17D; Â?Â&#x192;Â&#x17D;Â&#x203A;Â&#x2022;Â&#x2013; Â&#x161;Í&#x203A;

Competitive, Â&#x2018;Â?Â&#x2020;Â&#x2018;Â? ÇŚ Â&#x2039;Â&#x2013;Â&#x203A; A Leading consultancy are looking to boost the reserving capabilities of the team. This highly successful team have a global presence leading a number of reserving projects and associated teams. There is no pressure to sell at this level, as ensuring the more junior members of the team are empowered to deliver on their projects is essential. For more information please contact: paul.fox@hfg.co.uk REF: PF0602

Â&#x2021;Â?Â&#x2039;Â&#x2018;Â&#x201D; Â&#x192;Â?Â&#x192;Â&#x2030;Â&#x2021;Â&#x201D; ÇŚ Â&#x2021;Â&#x2022;Â&#x2021;Â&#x201D;Â&#x2DC;Â&#x2039;Â?Â&#x2030; Â&#x2020;Â&#x2021;Â&#x17D;Â&#x2039;Â&#x2DC;Â&#x2021;Â&#x201D;Â&#x203A;

General Insurance - Contract roles Pricing Contractor

Í&#x2039;Í Í&#x2DC;Í&#x2DC; ÇŚ Í&#x2039;Í&#x2122;Í&#x2DC;Í&#x2DC;Í&#x2DC; Â&#x2019;Â&#x2021;Â&#x201D; Â&#x2020;Â&#x192;Â&#x203A;ÇĄ Â&#x2018;Â?Â&#x2020;Â&#x2018;Â?

This established insurer with a global presence is looking for a pricing contractor to help with developing the pricing models, perform pricing analysis as well as assist in embedding the processes. Candidates with A&H experience would be desirable.

For more information please contact: rupa@hfg.co.uk REF: RP858

+44 (0) 207 337 8800

Â&#x2021;Â&#x2022;Â&#x2021;Â&#x201D;Â&#x2DC;Â&#x2021; Â&#x2039;Â&#x2022;Â? Â&#x2018;Â?Â&#x2013;Â&#x201D;Â&#x192;Â&#x2026;Â&#x2013;Â&#x2018;Â&#x201D;Â&#x2022;

Í&#x2039;Í Í&#x2DC;Í&#x2DC; ÇŚ Í&#x2039;Í&#x2122;Í&#x2DC;Í&#x2DC;Í&#x2DC; Â&#x2019;Â&#x2021;Â&#x201D; Â&#x2020;Â&#x192;Â&#x203A;ÇĄ Â&#x2018;Â?Â&#x2020;Â&#x2018;Â?

This leading insurer is looking for a contractor to support the business in the validation of the reserve risks, which feeds in to the reserving as well as the capital function. You must have a wealth of LMKT knowledge and experience in analysing the reserve risks in a Solvency II environment.

For more information please contact: rupa@hfg.co.uk REF: RP3838

Â&#x2122;Â&#x2122;Â&#x2122;ǤÂ&#x160;Â&#x2C6;Â&#x2030;ǤÂ&#x2026;Â&#x2018;ǤÂ&#x2014;Â?

June 2016 â&#x20AC;˘ THE ACTUARY 39 www.theactuary.com

ACT Rec Jun16.indd 39

20/05/2016 16:32

Appointments

Developing

Can you complete the sequence?

Hint: We like to support our Actuaries with ever-evolving opportunities.

The actuarial function here is at the heart of the business so weâ&#x20AC;&#x2122;re wholeheartedly passionate about looking after our Actuaries and making sure they have the support, opportunities and encouragement to thrive in their FDUHHUV 6SRQVRUHG E\ WKH *URXS &KLHI $FWXDU\ RXU LQ KRXVH $FWXDULDO $FDGHP\ RIIHUV VLJQLĂ&#x20AC; FDQW LQYHVWPHQW LQ both technical training and professional development, and provides a clear progression pathway for Actuaries at all levels. Where other companies offer one mentor, weâ&#x20AC;&#x2122;ll give you two. One to support you through your studies and another to help you achieve your career ambitions. Youâ&#x20AC;&#x2122;ll also enjoy exposure without limits and ever-evolving opportunities as all of our Actuaries (GI, Life, Risk and Investment) work under the same roof.

When you add our coastal Bournemouth location, brilliant work-life balance and bright, vibrant team culture into the equation, you have all the components to shape an incredibly rewarding actuarial career.

For the answer and more information about our current actuarial opportunities, head over to www.lvactuarial.com or for an informal, conďŹ dential discussion, please email Chelsea.Bain@lv.com

www.lv.com/careers

@lvcareers

40

facebook.com/lvcareers

www.linkedin.com/company/lv

THE ACTUARY â&#x20AC;˘ June 2016 www.theactuary.com

ACT Rec Jun16.indd 40

lvcareers

Careers 20/05/2016 16:33

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

www.theactuaryjobs.com

Capital Modelling Actuary ƩƌĂĐƟǀĞ ^ĂůĂƌLJ н ŽŶƵƐ Θ ĞŶĞĮƚƐ͕ >ŽŶĚŽŶ

This leading corporate and specialty insurer is looking to enhance their actuarial capital modelling team with a senior actuary. Principal task is to undertake capital analysis and to assist in the development of the internal capital ŵŽĚĞů͘ KƚŚĞƌ ƚĂƐŬƐ ŝŶĐůƵĚĞ ƚŚĞ ƉĂƌƟĐŝƉĂƟŽŶ ŝŶ ƐƚƌĂƚĞŐŝĐ ƉƌŽũĞĐƚƐ͕ ƵŶĚĞƌǁƌŝƟŶŐ ƌĞǀŝĞǁƐ ĂŶĚ ƚŚĞ ĚĞǀĞůŽƉŵĞŶƚ ŽĨ ŵĂŶĂŐĞŵĞŶƚ ŝŶĨŽƌŵĂƟŽŶ͘ dŚĞ ŝĚĞĂů ĐĂŶĚŝĚĂƚĞ ŝƐ ĂŶ ĂĐƚƵĂƌLJ ǁŝƚŚ ƌĞůĞǀĂŶƚ ĞdžƉĞƌŝĞŶĐĞ ŝŶ ƚŚĞ ŝŶƐƵƌĂŶĐĞ ŝŶĚƵƐƚƌLJ͘ 'ŽŽĚ ŬŶŽǁůĞĚŐĞ ŽĨ ĞŝƚŚĞƌ ZĞŵĞƚƌŝĐĂ Žƌ /ŐůŽŽ͕ ĂŶĚ ĞdžƉĞƌŝĞŶĐĞ ŝŶ ƉƌŝĐŝŶŐ ĂŶĚͬŽƌ ƌĞƐĞƌǀŝŶŐ ǁŽƵůĚ ďĞ ĂŶ ĂƐƐĞƚ͘ WůĞĂƐĞ ĐŽŶƚĂĐƚ ƵƐ ĨŽƌ Ă ĐŽŶĮĚĞŶƟĂů ĚŝƐĐƵƐƐŝŽŶ ͬ ŵŽƌĞ ŝŶĨŽƌŵĂƟŽŶ͘ ŽŶƚĂĐƚ͗ ƉŚƵ͘ŶŐŽĐΛŝƉƐŐƌŽƵƉ͘ĐŽ͘ƵŬ dĞů͗ нϰϰ ϮϬϳ ϰϴϭ ϴϲϴϲ

ZŝƐŬ ͬ ^ŽůǀĞŶĐLJ // ĚǀŝƐĞƌ ŽŵƉĞƟƟǀĞ ^ĂůĂƌLJ н ŽŶƵƐ Θ ĞŶĞĮƚƐ͕ >ŽŶĚŽŶ

KƵƌ ĐůŝĞŶƚ ŝƐ ůŽŽŬŝŶŐ ƚŽ ŚŝƌĞ ĂŶ ĞdžƉĞƌŝĞŶĐĞĚ ŝŶƐƵƌĂŶĐĞ ƐƉĞĐŝĂůŝƐƚ ǁŝƚŚ ^ŽůǀĞŶĐLJ // ŬŶŽǁůĞĚŐĞ ĂŶĚ >ŽŶĚŽŶ ŵĂƌŬĞƚ ĞdžƉĞƌŝĞŶĐĞ͘ dŚĞ ŝĚĞĂů ƉĞƌƐŽŶ ŝƐ Ă ƉĂƌƚ ƋƵĂůŝĮĞĚ Žƌ ƋƵĂůŝĮĞĚ ĐƚƵĂƌLJ ǁŚŽ ŝƐ ůŽŽŬŝŶŐ ƚŽ ŵŽǀĞ ŝŶƚŽ Ă ŶŽŶͲƚƌĂĚŝƟŽŶĂů ƌŽůĞ͘ dŚĞLJ ƌĞƋƵŝƌĞ ƐŽŵĞŽŶĞ ǁŚŽ ĐĂŶ ďƵŝůĚ Ă ƉŝĐƚƵƌĞ ǁŝƚŚ ƚŚĞ ĚĂƚĂ ĂŶĚ ŝŶĨŽƌŵĂƟŽŶ ƉƌŽǀŝĚĞĚ ďLJ ŝŶƐƵƌĂŶĐĞ ĐŽŵƉĂŶŝĞƐ ĂŶĚ ĞīĞĐƚ ĐŚĂŶŐĞ ŝŶ ƚŚĞ ƌĞŐƵůĂƚŽƌLJ ƐƉĂĐĞ͘ džƉĞƌŝĞŶĐĞ ŝŶ ;ĞŶƚĞƌƉƌŝƐĞͿ ƌŝƐŬ ŵĂŶĂŐĞŵĞŶƚ͕ ĐŽŵƉůŝĂŶĐĞ͕ ƌĞŐƵůĂƚŽƌLJ ĂīĂŝƌƐ ĂŶĚͬŽƌ ĂĐƚƵĂƌŝĂů ǁŝůů ďĞ Ă ŐƌĞĂƚ ĂĚǀĂŶƚĂŐĞ͘ ŽŵŵƵŶŝĐĂƟŽŶ ĂŶĚ ƐƚĂŬĞŚŽůĚĞƌ ŵĂŶĂŐĞŵĞŶƚ ƐŬŝůůƐ ĂƌĞ ǀĞƌLJ important for this role. ŽŶƚĂĐƚ͗ ƉŚƵ͘ŶŐŽĐΛŝƉƐŐƌŽƵƉ͘ĐŽ͘ƵŬ dĞů͗ нϰϰ ϮϬϳ ϰϴϭ ϴϲϴϲ

WĞŶƐŝŽŶƐ ůŝĞŶƚ ŝƌĞĐƚŽƌ hƉƉĞƌ YƵĂƌƟůĞ ^ĂůĂƌLJ н ŽŶƵƐ Θ ĞŶĞĮƚƐ WĂĐŬĂŐĞ͕ DŝĚůĂŶĚƐ

dŚŝƐ ƉƌĞƐƟŐŝŽƵƐ ĐŽŶƐƵůƟŶŐ Įƌŵ ŝƐ ŝŶƚĞƌĞƐƚĞĚ ŝŶ ŚŝƌŝŶŐ Ă ƐĞŶŝŽƌ ĂŶĚ ĞdžƉĞƌŝĞŶĐĞĚ ĐŽŶƐƵůƟŶŐ ĂĐƚƵĂƌLJ ƚŽ ũŽŝŶ ŝƚƐ ƐƵĐĐĞƐƐĨƵů DŝĚůĂŶĚƐ ƚĞĂŵ͘ dŚĞ ƉĞƌƐŽŶ ǁŝůů ĂĚǀŝƐĞ ďŽƚŚ ƚŚĞ ŵĂŶĂŐĞŵĞŶƚ ŽĨ ĐŽƌƉŽƌĂƚĞ ĐůŝĞŶƚƐ ĂƐ ǁĞůů ĂƐ ŽĂƌĚƐ ŽĨ dƌƵƐƚĞĞƐ ŽŶ Ă ǁŚŽůĞ ƌĂŶŐĞ ŽĨ ƐƚƌĂƚĞŐŝĐ ŝƐƐƵĞƐ ŝŶĐůƵĚŝŶŐ ƌŝƐŬ ĂŶĚ ĮŶĂŶĐŝĂů ŵĂŶĂŐĞŵĞŶƚ͕ ƉĞŶƐŝŽŶ ƐƚƌĂƚĞŐLJ ĂŶĚ ĚĞƐŝŐŶ͘ ĂŶĚŝĚĂƚĞƐ ǁŝůů ďĞ ƋƵĂůŝĮĞĚ ĂĐƚƵĂƌŝĞƐ ǁŝƚŚ Ăƚ ůĞĂƐƚ ϯ LJĞĂƌƐ͛ ĞdžƉĞƌŝĞŶĐĞ ŽĨ ůĞĂĚŝŶŐ ĂŶĚ ĚĞǀĞůŽƉŝŶŐ Ă ƉŽƌƞŽůŝŽ ŽĨ ĞŵƉůŽLJĞƌ ƐƉŽŶƐŽƌĞĚ ĂŶĚ ƐĐŚĞŵĞƐ͘ dŚĞLJ ǁŝůů ĂůƐŽ ďĞ ĂďůĞ ƚŽ ĚĞŵŽŶƐƚƌĂƚĞ ƐĞůĨͲŵŽƟǀĂƟŽŶ͕ ƉƌŽĨĞƐƐŝŽŶĂů ĞdžĐĞůůĞŶĐĞ ĂŶĚ ƐƚƌŽŶŐ ƉƌŽũĞĐƚ ŵĂŶĂŐĞŵĞŶƚ ĂŶĚ ůĞĂĚĞƌƐŚŝƉ ƐŬŝůůƐ͘ ŽŶƚĂĐƚ͗ ĂŶƚŚŽŶLJ͘ĐŚŝƚŶŝƐΛŝƉƐŐƌŽƵƉ͘ĐŽ͘ƵŬ dĞů͗ нϰϰ ϮϬϳ ϰϴϭ ϴϲϴϲ

>ŽŶĚŽŶ KĸĐĞ͗ /W^ 'ƌŽƵƉ͕ ĞǀŝƐ DĂƌŬƐ ,ŽƵƐĞ͕ Ϯϰ ĞǀŝƐ DĂƌŬƐ͕ >ŽŶĚŽŶ ϯ ϳ: dĞůĞƉŚŽŶĞ͗ нϰϰ ϮϬϳ ϰϴϭ ϴϲϴϲ ŵĂŝů͗ ĂĐƚƵĂƌŝĂůΛŝƉƐŐƌŽƵƉ͘ĐŽ͘ƵŬ tĞďƐŝƚĞ͗ ŚƩƉ͗ͬ​ͬǁǁǁ͘ŝƉƐŐƌŽƵƉ͘ĐŽ͘ƵŬ dǁŝƩĞƌ ͗ Λ/W^'ƌŽƵƉh< Linkedin: IPS Group ACT Rec Jun16.indd 41

June 2016 • THE ACTUARY 41 www.theactuary.com

20/05/2016 16:33

Appointments

RESERVING ACTUARY An international London Market insurer are looking for a N/N FIA reserving actuary to join them in the Summer 2016. Having successfully gone through a merger, this opportunity has arisen for someone to join their reserving team with 2 reports. 3-5 yearsâ&#x20AC;&#x2122; experience either in a P&C insurance practice or in-house role would be required. Moving into this role will provide the RSSRUWXQLW\ WR JHW PDQDJHPHQW H[SHULHQFH EH LQĂżXHQWLDO RQ EXVLQHVV planning alongside the head of reserving and be an asset to the overall risk management team which has a global reach. This is a premium brand which pride themselves on hiring the top class talent within the London market.

b London

|

¸ £65,000 - £75,000

|

­ PERMANENT

OUR SERVICES, YOUR ASSET Backed by practicing Actuaries, weâ&#x20AC;&#x2122;re the true general insurance recruitment specialists.

+44 (0)20 7256 9777 |

VISIT OUR WEBSITE FOR ALL POSITIONS IN: â&#x20AC;ş â&#x20AC;ş â&#x20AC;ş â&#x20AC;ş

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Specialising in High Performance Selection

RESERVING ACTUARY

ACTUARIAL CONSULTANT

CAPITAL ACTUARY

Seeking an all-round generalist with knowledge and experience across Financial Reporting, Valuations, Capital Modelling, Solvency II, Pricing.

Currently seeking a Reserving Actuary to work within a London market client. This opportunity will be ideal for an almost qualiďŹ ed actuary who is interested in exploring a more varied reserving role with exposure to Reinsurance, London Market and Personal Lines. There are interesting projects involved and fantastic progression as well as people management possibilities.

Currently seeking a QualiďŹ ed Actuary with either Life/Non-Life experience to join a consultancy ďŹ rm working overseas on different projects. This is a great career step for someone who wants to become a well-rounded Actuary across both disciplines.

Actively seeking a Part QualiďŹ ed Capital Actuary to work on Capital modelling. There is ďŹ&#x201A;exibility on location. If you have had exposure to capital modelling or reserving and would like to become a capital modelling expert this could be a fantastic opportunity for you.

Rare Opportunity!!!!

Being in a consultative environment would allow fantastic progression moving forward.

For more information please contact Clinton on 0207 621 3774 or email c.poore@darwinrhodes.com

For more information please contact Bradley on 0207 621 3771 or email b.doyle@darwinrhodes.com

For more information please contact Bradley on 0207 621 3771 or email b.doyle@darwinrhodes.com

For more information please contact Terry on 0207 621 3770 or email t.tumba@darwinrhodes.com

CHIEF ACTUARY

ÂŁ Competitive + bonus & beneďŹ ts Greater London M25 New opportunity for an experienced Life Actuary to be the Chief Actuary of this wellknown global life insurer.

42

ÂŁ80,000 City of London

Up to ÂŁ100,000 Channel Islands

Tax haven location with this opportunity.

ÂŁ60,000 London

THE ACTUARY â&#x20AC;˘ June 2016 www.theactuary.com

ACT Rec Jun16.indd 42

20/05/2016 16:35

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

www.theactuaryjobs.com

Paul Fox Risk +44 (0) 207 220 1103 paul.fox@hfg.co.uk

David Crawford Life & GI +44 (0) 207 337 8827 david.crawford@hfg.co.uk

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

Life insurance roles Reporting Actuary

ÂŁ50k - ÂŁ60k basic, Bournemouth

Product Development Actuary

ÂŁ75k - ÂŁ95k basic, London

I am working with an innovative and exciting insurer to help them source a newly Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;ƤÂ&#x2021;Â&#x2020; Â&#x192;Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x203A; Â&#x2013;Â&#x2018; Â&#x152;Â&#x2018;Â&#x2039;Â? Â&#x2013;Â&#x160;Â&#x2021;Â&#x2039;Â&#x201D; Â&#x201D;Â&#x2021;Â&#x2019;Â&#x2018;Â&#x201D;Â&#x2013;Â&#x2039;Â?Â&#x2030; Â&#x2C6;Â&#x2014;Â?Â&#x2026;Â&#x2013;Â&#x2039;Â&#x2018;Â? Â&#x2039;Â? Â&#x2018;Â&#x2014;Â&#x201D;Â?Â&#x2021;Â?Â&#x2018;Â&#x2014;Â&#x2013;Â&#x160;Ǥ Â&#x160;Â&#x2039;Â&#x2022; Â&#x2019;Â&#x2018;Â&#x2022;Â&#x2039;Â&#x2013;Â&#x2039;Â&#x2018;Â? Â&#x201D;Â&#x2021;Â&#x2019;Â&#x2018;Â&#x201D;Â&#x2013;Â&#x2022; Â&#x2020;Â&#x2039;Â&#x201D;Â&#x2021;Â&#x2026;Â&#x2013;Â&#x17D;Â&#x203A; Â&#x2039;Â?Â&#x2013;Â&#x2018; Â&#x2013;Â&#x160;Â&#x2021; Â&#x2026;Â&#x160;Â&#x2039;Â&#x2021;Â&#x2C6; Â&#x192;Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x203A; Â&#x192;Â?Â&#x2020; Â&#x2039;Â?Â&#x2DC;Â&#x2018;Â&#x17D;Â&#x2DC;Â&#x2021;Â&#x2022; Â?Â&#x192;Â?Â&#x192;Â&#x2030;Â&#x2039;Â?Â&#x2030; Í&#x161; Â&#x2022;Â&#x2013;Â&#x2014;Â&#x2020;Â&#x2021;Â?Â&#x2013;Â&#x2022;ÇĄ Â&#x2018;ĆĄÂ&#x2021;Â&#x201D;Â&#x2039;Â?Â&#x2030; Â&#x2013;Â&#x160;Â&#x2021; Â&#x201D;Â&#x2039;Â&#x2030;Â&#x160;Â&#x2013; Â&#x2039;Â?Â&#x2020;Â&#x2039;Â&#x2DC;Â&#x2039;Â&#x2020;Â&#x2014;Â&#x192;Â&#x17D; Â&#x2022;Â&#x2039;Â&#x2030;Â?Â&#x2039;ƤÂ&#x2026;Â&#x192;Â?Â&#x2013; Â&#x2021;Â&#x161;Â&#x2019;Â&#x2018;Â&#x2022;Â&#x2014;Â&#x201D;Â&#x2021; Â&#x2013;Â&#x2018; Â&#x2013;Â&#x160;Â&#x2021; Â&#x2021;Â?Â&#x2039;Â&#x2018;Â&#x201D; Â&#x192;Â?Â&#x192;Â&#x2030;Â&#x2021;Â?Â&#x2021;Â?Â&#x2013; Â&#x2013;Â&#x2021;Â&#x192;Â? Â&#x192;Â?Â&#x2020; Â&#x192; chance to hone their managerial skills.

For more information please contact: abby@hfg.co.uk REF: AT0601

Â&#x192;Â? Â&#x2122;Â&#x2018;Â&#x201D;Â?Â&#x2039;Â?Â&#x2030; Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160; Â&#x192; Â&#x2019;Â&#x201D;Â&#x2018;Â&#x2013;Â&#x2021;Â&#x2026;Â&#x2013;Â&#x2039;Â&#x2018;Â? Â&#x2019;Â&#x201D;Â&#x2018;Â&#x2DC;Â&#x2039;Â&#x2020;Â&#x2021;Â&#x201D; Â&#x2013;Â&#x2018; Â&#x160;Â&#x2021;Â&#x17D;Â&#x2019; Â&#x2013;Â&#x160;Â&#x2021;Â? Â&#x2022;Â&#x2018;Â&#x2014;Â&#x201D;Â&#x2026;Â&#x2021; Â&#x192; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;ƤÂ&#x2021;Â&#x2020; Â&#x192;Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x203A; to help manage their Product Development team. This is a management level role and requires the individual to supervise a team of student actuaries. You will Â&#x2039;Â&#x2020;Â&#x2021;Â&#x192;Â&#x17D;Â&#x17D;Â&#x203A; Â&#x201E;Â&#x2021; Â&#x192; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;ƤÂ&#x2021;Â&#x2020; Â&#x192;Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x203A; Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160; Í&#x203A;ÇŚÍ? Â&#x203A;Â&#x2021;Â&#x192;Â&#x201D;Â&#x2022; Â&#x2019;Â&#x2018;Â&#x2022;Â&#x2013; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;ƤÂ&#x2021;Â&#x2020; Â&#x2021;Â&#x161;Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2039;Â&#x2021;Â?Â&#x2026;Â&#x2021; Â&#x192;Â?Â&#x2020; Â&#x2122;Â&#x2039;Â&#x17D;Â&#x17D; have knowledge of the UK protection market.

For more information please contact: abby@hfg.co.uk REF: AT0602

Solvency II Actuary

$100k - $125k basic, Maryland, USA I am currently working with a Global Insurer who are looking to recruit a Solvency II Actuary into their US business. They are open in terms of what they Â&#x192;Â&#x201D;Â&#x2021; Â&#x17D;Â&#x2018;Â&#x2018;Â?Â&#x2039;Â?Â&#x2030; Â&#x2C6;Â&#x2018;Â&#x201D; Â&#x160;Â&#x2018;Â&#x2122;Â&#x2021;Â&#x2DC;Â&#x2021;Â&#x201D; Â&#x2013;Â&#x160;Â&#x2021;Â&#x203A; Â?Â&#x2021;Â&#x2021;Â&#x2020; Â&#x192; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;ƤÂ&#x2021;Â&#x2020; Â&#x192;Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x203A; Â&#x2122;Â&#x160;Â&#x2018; Â&#x160;Â&#x192;Â&#x2022; Â&#x192; Â&#x2026;Â&#x2018;Â?Â&#x2019;Â&#x201D;Â&#x2021;Â&#x160;Â&#x2021;Â?Â&#x2022;Â&#x2039;Â&#x2DC;Â&#x2021; understanding of the UK regulatory system from a life insurance perspective.

Capital/Risk Actuarial Analyst

For more information please contact: abby@hfg.co.uk REF: AT0603

Â&#x201E;Â&#x2018;Â&#x2014;Â&#x2013;Â&#x2039;Â&#x201C;Â&#x2014;Â&#x2021; Â&#x2039;Â?Â&#x2022;Â&#x2014;Â&#x201D;Â&#x2021;Â&#x201D; Â&#x192;Â&#x201D;Â&#x2021; Â&#x17D;Â&#x2018;Â&#x2018;Â?Â&#x2039;Â?Â&#x2030; Â&#x2013;Â&#x2018; Â&#x160;Â&#x2039;Â&#x201D;Â&#x2021; Â&#x192; Â&#x2019;Â&#x192;Â&#x201D;Â&#x2013; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;ƤÂ&#x2021;Â&#x2020; Â&#x17D;Â&#x2039;Â&#x2C6;Â&#x2021; Â&#x192;Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x203A; Â&#x2013;Â&#x2018; Â&#x152;Â&#x2018;Â&#x2039;Â? Â&#x2013;Â&#x160;Â&#x2021;Â&#x2039;Â&#x201D; Â&#x2039;Â&#x2C6;Â&#x2021; Insurance team. The role will involve analysing the risks faced by life insurance industry. You need to be a smart, switched on individual who is making steady progress through the actuarial exams. This role is available on a part time basis too.

For more information please contact: abby@hfg.co.uk REF: AT0604

Pensions Actuary

ÂŁ50k - ÂŁ80k basic, UK Wide

Â&#x192;Â? Â&#x17D;Â&#x2018;Â&#x2018;Â?Â&#x2039;Â?Â&#x2030; Â&#x2C6;Â&#x2018;Â&#x201D; Â&#x2022;Â&#x2013;Â&#x201D;Â&#x2018;Â?Â&#x2030; Â&#x2021;Â?Â&#x2022;Â&#x2039;Â&#x2018;Â?Â&#x2022; Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x2039;Â&#x2021;Â&#x2022; Â&#x2122;Â&#x160;Â&#x2018; Â&#x192;Â&#x201D;Â&#x2021; Â&#x2022;Â&#x2014;ĆĽÂ&#x2026;Â&#x2039;Â&#x2021;Â?Â&#x2013;Â&#x17D;Â&#x203A; Â&#x2021;Â&#x161;Â&#x2026;Â&#x2039;Â&#x2013;Â&#x2021;Â&#x2020; Â&#x201E;Â&#x203A; Â&#x2013;Â&#x160;Â&#x2039;Â&#x2022; Â&#x2C6;Â&#x192;Â&#x2022;Â&#x2013; Â&#x2026;Â&#x160;Â&#x192;Â?Â&#x2030;Â&#x2039;Â?Â&#x2030; ƤÂ&#x2021;Â&#x17D;Â&#x2020; Â&#x2013;Â&#x2018; Â&#x2122;Â&#x192;Â?Â&#x2013; Â&#x2013;Â&#x2018; Â?Â&#x192;Â?Â&#x2021; Â&#x192; Â&#x2DC;Â&#x192;Â&#x17D;Â&#x2014;Â&#x2021; Â&#x192;Â&#x2020;Â&#x2020;Â&#x2021;Â&#x2020; Â&#x2026;Â&#x2018;Â?Â&#x2013;Â&#x201D;Â&#x2039;Â&#x201E;Â&#x2014;Â&#x2013;Â&#x2039;Â&#x2018;Â? Â&#x192;Â?Â&#x2020; Â&#x201E;Â&#x201D;Â&#x2039;Â?Â&#x2030; Â&#x2013;Â&#x160;Â&#x2021;Â&#x2039;Â&#x201D; Â&#x2DC;Â&#x2039;Â&#x2021;Â&#x2122;Â&#x2022; Â&#x192;Â?Â&#x2020; Â?Â?Â&#x2018;Â&#x2122;Â&#x17D;Â&#x2021;Â&#x2020;Â&#x2030;Â&#x2021; Â&#x2013;Â&#x2018; Â?Â&#x192;Â?Â&#x2021; Â&#x192; Â&#x2020;Â&#x2039;ĆĄÂ&#x2021;Â&#x201D;Â&#x2021;Â?Â&#x2026;Â&#x2021; Â&#x2039;Â? Â&#x2013;Â&#x160;Â&#x2039;Â&#x2022; Â&#x160;Â&#x2039;Â&#x2030;Â&#x160;Â&#x17D;Â&#x203A; Â&#x2026;Â&#x2018;Â?Â&#x2019;Â&#x2021;Â&#x2013;Â&#x2039;Â&#x2013;Â&#x2039;Â&#x2DC;Â&#x2021; Â?Â&#x192;Â&#x201D;Â?Â&#x2021;Â&#x2013; place. Pensions is an exciting place to be for the right individual, test your market position now.

For more information please contact: david.crawford@hfg.co.uk REF: CR0601

ÂŁ35k - ÂŁ45k basic, London

ÂŁ250k - ÂŁ400k basic, London

Reward Specialist

My client is looking for a highly networked individual to generate business growth through leveraging their business network and providing thought Â&#x17D;Â&#x2021;Â&#x192;Â&#x2020;Â&#x2039;Â?Â&#x2030; Â&#x2021;Â&#x161;Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2013;Â&#x2039;Â&#x2022;Â&#x2021; Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160;Â&#x2039;Â? Â&#x2013;Â&#x160;Â&#x2039;Â&#x2022; ƤÂ&#x2021;Â&#x17D;Â&#x2020;Ǥ Â&#x160;Â&#x2021;Â&#x203A; Â&#x192;Â&#x201D;Â&#x2021; Â&#x17D;Â&#x2018;Â&#x2018;Â?Â&#x2039;Â?Â&#x2030; Â&#x2013;Â&#x2018; Â&#x2030;Â&#x201D;Â&#x2018;Â&#x2122; Â&#x201D;Â&#x192;Â&#x2019;Â&#x2039;Â&#x2020;Â&#x17D;Â&#x203A; Â&#x192;Â?Â&#x2020; Â&#x201E;Â&#x2021;Â&#x17D;Â&#x2039;Â&#x2021;Â&#x2DC;Â&#x2021; their proposition and your know how will be a market leading combination.

For more information please contact: david.crawford@hfg.co.uk REF: CR0502

Risk roles Capital Modelling Actuary

ÂŁ65k - ÂŁ90k basic, London

ÂŁ65k - ÂŁ85k, London

ERM Actuary

A Leading London market client are looking for a Capital modelling actuary to join the Risk team. You will utilise capital model build experience to develop robust validation of the internal model. The scope of the role reaches out further, to look at strategic objectives such as pricing, reinsurance purchasing and reserving. Previous model build in ReMetrica or Igloo is a must along with strong interpersonal and communication skills.

For more information please contact: paul.fox@hfg.co.uk REF: PF0603

Our client, a Lloyds syndicate, are looking for a Risk based capital actuary to help with all elements of enterprise risk management across the business.

The role entails looking at Stress and Scenario testing, Model governance, supporting Validation and ORSA. In order to thrive in this role, the successful candidate will currently be working in a consulting environment or have worked in one previously.

For more information please contact: paul.fox@hfg.co.uk REF: PF0604

Credit Risk Analyst

ÂŁ50k - ÂŁ90k basic, UK wide Â&#x2122;Â&#x2021;Â&#x17D;Â&#x17D;ÇŚÂ?Â?Â&#x2018;Â&#x2122;Â? Â&#x192;Â&#x2020;Â&#x2DC;Â&#x2039;Â&#x2022;Â&#x2018;Â&#x201D;Â&#x203A; ƤÂ&#x201D;Â? Â&#x192;Â&#x201D;Â&#x2021; Â&#x17D;Â&#x2018;Â&#x2018;Â?Â&#x2039;Â?Â&#x2030; Â&#x2C6;Â&#x2018;Â&#x201D; Â&#x192; Â?Â&#x2014;Â?Â&#x201E;Â&#x2021;Â&#x201D; Â&#x2018;Â&#x2C6; Â&#x2026;Â&#x201D;Â&#x2021;Â&#x2020;Â&#x2039;Â&#x2013; Â&#x201D;Â&#x2039;Â&#x2022;Â? Â&#x192;Â?Â&#x192;Â&#x17D;Â&#x203A;Â&#x2022;Â&#x2013;Â&#x2022; Â&#x2013;Â&#x2018; join their team. Working with a variety of Financial services clients you will take the lead on projects across liquidity and credit risk. Candidates will ideally have Â&#x2021;Â&#x2039;Â&#x2013;Â&#x160;Â&#x2021;Â&#x201D; Â&#x2013;Â&#x160;Â&#x2021; Â&#x2018;Â&#x201D; Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x2039;Â&#x192;Â&#x17D; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;ƤÂ&#x2026;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â? Â&#x192;Â?Â&#x2020; Â?Â&#x2014;Â&#x2022;Â&#x2013; Â&#x160;Â&#x192;Â&#x2DC;Â&#x2021; Â&#x2019;Â&#x201D;Â&#x2021;Â&#x2DC;Â&#x2039;Â&#x2018;Â&#x2014;Â&#x2022; Â?Â&#x2018;Â&#x2020;Â&#x2021;Â&#x17D;Â&#x17D;Â&#x2039;Â?Â&#x2030; Â&#x192;Â?Â&#x2020; stress testing experience.

Risk Analyst

For more information please contact: erin@hfg.co.uk REF: EO0601

An opportunity to join a leading International insurer in their risk team. Working Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160; Â&#x2013;Â&#x160;Â&#x2021; Â&#x2021;Â&#x192;Â&#x2020;Â&#x2022; Â&#x2018;Â&#x2C6; Â&#x2020;Â&#x2039;ĆĄÂ&#x2021;Â&#x201D;Â&#x2021;Â?Â&#x2013; Â&#x201E;Â&#x2014;Â&#x2022;Â&#x2039;Â?Â&#x2021;Â&#x2022;Â&#x2022; Â&#x2014;Â?Â&#x2039;Â&#x2013;Â&#x2022; Â&#x203A;Â&#x2018;Â&#x2014; Â&#x2122;Â&#x2039;Â&#x17D;Â&#x17D; Â&#x2020;Â&#x2021;Â&#x17D;Â&#x2039;Â&#x2DC;Â&#x2021;Â&#x201D; Â&#x192;Â? Â&#x2021;ĆĄÂ&#x2021;Â&#x2026;Â&#x2013;Â&#x2039;Â&#x2DC;Â&#x2021; Â&#x201D;Â&#x2039;Â&#x2022;Â? management framework and analyse their Capital requirement. Candidates will be supporting internal model validation and be responsible for report writing for Board level committees. Previous Capital modelling experience would be an advantage.

For more information please contact: erin@hfg.co.uk REF: EO0602

Risk Management Actuary

ÂŁ45k - ÂŁ55k basic, London

ÂŁ40k - ÂŁ60k basic, London

CAT/Actuarial student

ÂŁ30k - ÂŁ40k basic, London

A role has been created for an actuarial student to join a leading re-insurer in their risk team. Coming from a capital modelling background you will be involved in re-insurance purchasing and updating the capital model. Candidates should be strong technically and those with good SQL and VBA skills will be favoured.

A leading syndicate are looking to take on an actuarial student into a hybrid Catastrophe modelling/actuarial role. Working with the CAT modellers and actuaries you will gain non-traditional capital modelling experience by concentrating on the CAT element of the Internal model. The role provides full actuarial study support and the opportunity to learn RMS and SQL.

For more information please contact: erin@hfg.co.uk REF: EO0603

For more information please contact: erin@hfg.co.uk REF: EO0604

June 2016 â&#x20AC;˘ THE ACTUARY 43 www.theactuary.com

+44 (0) 207 337 8800 ACT Rec Jun16.indd 43

www.hfg.co.uk 20/05/2016 16:33

Appointments

PENSIONS & INVESTMENTS NON-LIFE LIFE & HEALTH R&D PRICING ACTUARY, London

INVESTMENT CONSULTING LEADER, London

A leading personal lines insurer are currently seeking a qualiďŹ ed actuary to lead on an R&D project as part of their existing growth plans. The role will be responsible for analysing their pricing capabilities, whilst designing an optimised view of pricing across the business. The role will also be heavily involved in development of their pricing strategy and will liaise with senior management/underwriters on a daily basis. Candidates will be fully qualiďŹ ed and have extensive personal lines pricing experience, ideally across either motor or home lines of business. You must be an expert user of Emblem.

A major advisory ďŹ rm are seeking a high level senior investment consultant to form part of the UK leadership team. The role will focus on delivering advice to large pension fund clients, contributing and leading on new business tenders and working upon strategic and leadership initiatives for the practice as a whole. We are ideally seeking candidates with consulting experience with clients with up to ÂŁbn asset under management.

Commercially minded, with excellent technical skills and a good market network, you will relish the opportunity to be an instrumental part of a growing practice, contributing and taking a lead in the development of the business. Contact: simon.dodds@eamesconsulting.com | 0207 092 3232

Contact: james.rydon@eamesconsulting.com | 0207 092 3239

SENIOR ACTUARIAL ANALYST, Madrid

VP-INVESTMENT BANKING, London

A global (re)insurance ďŹ rm are looking to add to their team with a senior actuarial analyst based in Madrid. Your role will involve the pricing of predominantly commercial lines, however some reserving will be involved as well. You will serve a European underwriting base and as this is a new team you will be modelling many lines from scratch. You will have a background in general insurance and be studying actuarial exams.

Commercial lines experience will be preferred but personal lines candidates will also be considered. You must have excellent interpersonal skills, and be able to engage with stakeholders at various levels, in various geographies.

We are currently working for an investment bank who are looking to expand their Pensions & Insurance team. You will be part of a team who will provide new and innovative solutions to the banks clients. We are interested in speaking to people from an actuarial background who ideally have exposure to the life or pensions/investment markets. You may be currently working for another bank or asset manager or come from an insurance or consulting background. This is an excellent opportunity to move direction and into the banking sector.

Eames listed as the #1 insurance recruitment & search ďŹ rm in the UK in Recruitment Internationalâ&#x20AC;&#x2122;s Top 500 Report

Contact: rob.bulpitt@eamesconsulting.com | 0207 092 3237

Contact: andy.cannon@eamesconsulting.com | 0207 092 3262

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

Contact: actuarial@eamesconsulting.com | 0207 092 3200

London | Zurich | Singapore | Hong Kong

eamesconsulting.com

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

Tong Yu Life Actuarial & Risk

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

+44 (0) 207 337 8853 tong@hfg.co.uk

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

APAC Actuarial Assignments Head of Pricing, Malaysia & Indonesia

Open Market Rate Malaysia

An internationally acclaimed Re-insurer is looking for a primary contact of Business Development - working on pricing quotations, treaties and pricing bases as well as to provide technical advice for Life Insurance clientele in Â&#x2013;Â&#x160;Â&#x2021; Â&#x201D;Â&#x2021;Â&#x2030;Â&#x2039;Â&#x2018;Â?Ǥ Â&#x192;Â?Â&#x2020;Â&#x2039;Â&#x2020;Â&#x192;Â&#x2013;Â&#x2021;Â&#x2022; Â&#x2022;Â&#x160;Â&#x2018;Â&#x2014;Â&#x17D;Â&#x2020; Â&#x201E;Â&#x2021; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;ƤÂ&#x2021;Â&#x2020; Â&#x192;Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x2039;Â&#x2021;Â&#x2022; Â&#x2122;Â&#x2039;Â&#x2013;Â&#x160; Â&#x2022;Â&#x2013;Â&#x201D;Â&#x2018;Â?Â&#x2030; Â&#x2013;Â&#x2021;Â&#x2026;Â&#x160;Â?Â&#x2039;Â&#x2026;Â&#x192;Â&#x17D; pricing knowledge and good business acumen. Should you be interested to know more, please contact Christina at christinac@hfg.com.sg REF: CC0601 Competitive Hong Kong

Junior Actuary

My client is a global insurer and seeking an aspiring and driven actuary to join their growing local team. The incumbent will be part of the dynamic term and have Â&#x2C6;Â&#x2014;Â&#x17D;Â&#x17D; Â&#x2021;Â?Â&#x2020;ÇŚÂ&#x2013;Â&#x2018;ÇŚÂ&#x2021;Â?Â&#x2020; Â&#x2039;Â?Â&#x2DC;Â&#x2018;Â&#x17D;Â&#x2DC;Â&#x2021;Â?Â&#x2021;Â?Â&#x2013; Â&#x2039;Â? Â&#x2019;Â&#x201D;Â&#x2039;Â&#x2026;Â&#x2039;Â?Â&#x2030; Â&#x192;Â?Â&#x2020; Â&#x201D;Â&#x2021;Â&#x2022;Â&#x2021;Â&#x201D;Â&#x2DC;Â&#x2039;Â?Â&#x2030; Â&#x201D;Â&#x2021;Â&#x2022;Â&#x2019;Â&#x2018;Â?Â&#x2022;Â&#x2039;Â&#x201E;Â&#x2039;Â&#x17D;Â&#x2039;Â&#x2013;Â&#x2039;Â&#x2021;Â&#x2022;Ǥ Â&#x2021; Č&#x20AC; Â&#x160;Â&#x2021; Â&#x2122;Â&#x2039;Â&#x17D;Â&#x17D; Â?Â&#x2021;Â&#x2021;Â&#x2020; Â&#x2013;Â&#x2018; Â&#x160;Â&#x192;Â&#x2DC;Â&#x2021; Â&#x192;Â&#x2013; Â&#x17D;Â&#x2021;Â&#x192;Â&#x2022;Â&#x2013; Í&#x153;ÇŚÍ? Â&#x203A;Â&#x2021;Â&#x192;Â&#x201D;Â&#x2022; Â&#x2018;Â&#x2C6; Â&#x192;Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x2039;Â&#x192;Â&#x17D; Â&#x2021;Â&#x161;Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2039;Â&#x2021;Â?Â&#x2026;Â&#x2021;ÇĄ Â&#x2122;Â&#x160;Â&#x2018; Â&#x2039;Â&#x2022; Â?Â&#x2021;Â&#x2021;Â? Â&#x2013;Â&#x2018; Â&#x17D;Â&#x2021;Â&#x2DC;Â&#x2021;Â&#x201D;Â&#x192;Â&#x2030;Â&#x2021; Â&#x160;Â&#x2039;Â&#x2022;Č&#x20AC;Â&#x160;Â&#x2021;Â&#x201D; Â&#x2021;Â&#x161;Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2039;Â&#x2021;Â?Â&#x2026;Â&#x2021; Â&#x2013;Â&#x2018; Â&#x2020;Â&#x2021;Â&#x2DC;Â&#x2021;Â&#x17D;Â&#x2018;Â&#x2019; Â&#x2013;Â&#x160;Â&#x2021;Â&#x2039;Â&#x201D; Â&#x192;Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x2039;Â&#x192;Â&#x17D; Â&#x2019;Â&#x2014;Â&#x201D;Â&#x2022;Â&#x2014;Â&#x2039;Â&#x2013; Â&#x2039;Â? Â&#x192;Â? Â&#x2021;Â&#x2022;Â&#x2013;Â&#x192;Â&#x201E;Â&#x17D;Â&#x2039;Â&#x2022;Â&#x160;Â&#x2021;Â&#x2020; ƤÂ&#x201D;Â?Ǥ Should you be interested, please contact shuyu@hfg.com.sg REF: SL0601.

Risk Oversight Senior Manager

44

Highly Competitive Hong Kong

Marketing Actuary

SGD $180k - SGD $220k Singapore

A multinational Re-insurer is looking for a Marketing Actuary to join their Asia Â&#x192;Â&#x2026;Â&#x2039;ƤÂ&#x2026; Â&#x201E;Â&#x2014;Â&#x2022;Â&#x2039;Â?Â&#x2021;Â&#x2022;Â&#x2022;Ǥ Â? Â&#x2039;Â?Â&#x2020;Â&#x2021;Â&#x2019;Â&#x2021;Â?Â&#x2020;Â&#x2021;Â?Â&#x2013; Â&#x192;Â?Â&#x2020; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;ƤÂ&#x2021;Â&#x2020; Â&#x192;Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x203A;ÇĄ Â&#x203A;Â&#x2018;Â&#x2014; Â&#x2122;Â&#x2039;Â&#x17D;Â&#x17D; Â&#x201E;Â&#x2021; Â&#x201D;Â&#x2021;Â&#x2022;Â&#x2019;Â&#x2018;Â?Â&#x2022;Â&#x2039;Â&#x201E;Â&#x17D;Â&#x2021; for client management, treaties quotations and technical actuarial functions.

Candidates who have good business sentiments and South East Asian market knowledge are welcomed to apply. Should you be interested, please contact Christina at christina@hfg.com.sg REF: CC0602 Highly Competitive Hong Kong / China

Senior Analyst

Â&#x203A; Â&#x2026;Â&#x17D;Â&#x2039;Â&#x2021;Â?Â&#x2013; Â&#x2039;Â&#x2022; Â&#x2022;Â&#x2021;Â&#x2021;Â?Â&#x2039;Â?Â&#x2030; Â&#x192; Â&#x160;Â&#x2039;Â&#x2030;Â&#x160;Â&#x17D;Â&#x203A; Â&#x192;Â?Â&#x192;Â&#x17D;Â&#x203A;Â&#x2013;Â&#x2039;Â&#x2026;Â&#x192;Â&#x17D; Â&#x192;Â?Â&#x2020; Â&#x192;Â&#x201D;Â&#x2013;Â&#x2039;Â&#x2026;Â&#x2014;Â&#x17D;Â&#x192;Â&#x2013;Â&#x2021; Â&#x192;Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x203A; Č&#x20AC; ƤÂ?Â&#x192;Â?Â&#x2026;Â&#x2039;Â&#x192;Â&#x17D; Â&#x192;Â?Â&#x192;Â&#x17D;Â&#x203A;Â&#x2022;Â&#x2013; Â&#x2122;Â&#x160;Â&#x2018; Â&#x2039;Â&#x2022; Â&#x2022;Â&#x2021;Â&#x2021;Â?Â&#x2039;Â?Â&#x2030; Â&#x2013;Â&#x2018; Â&#x2019;Â&#x2014;Â&#x201D;Â&#x2022;Â&#x2014;Â&#x2021; Â&#x192; Â&#x17D;Â&#x2021;Â&#x2022;Â&#x2022;ÇŚÂ&#x2013;Â&#x201D;Â&#x192;Â&#x2020;Â&#x2039;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x192;Â&#x17D; Â&#x201D;Â&#x2018;Â&#x17D;Â&#x2021; Â&#x2039;Â? Â&#x2013;Â&#x160;Â&#x2021; Â?Â&#x2022;Â&#x2014;Â&#x201D;Â&#x192;Â?Â&#x2026;Â&#x2021; Â&#x2039;Â?Â&#x2020;Â&#x2014;Â&#x2022;Â&#x2013;Â&#x201D;Â&#x203A;Ǥ Â&#x201D;Â&#x2018;ƤÂ&#x2026;Â&#x2039;Â&#x2021;Â?Â&#x2026;Â&#x203A; Â&#x2039;Â?

Mandarin is highly advantageous. The incumbent should have at least 5 years of Â&#x201D;Â&#x2021;Â&#x17D;Â&#x2021;Â&#x2DC;Â&#x192;Â?Â&#x2013; Â&#x2122;Â&#x2018;Â&#x201D;Â?Â&#x2039;Â?Â&#x2030; Â&#x2021;Â&#x161;Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2039;Â&#x2021;Â?Â&#x2026;Â&#x2021; Â&#x2C6;Â&#x201D;Â&#x2018;Â? ƤÂ?Â&#x192;Â?Â&#x2026;Â&#x2039;Â&#x192;Â&#x17D; Â&#x2039;Â?Â&#x2022;Â&#x2013;Â&#x2039;Â&#x2013;Â&#x2014;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x2022; Â&#x2018;Â&#x201D; Â&#x2013;Â&#x160;Â&#x2021; Â?Â&#x2022;Â&#x2014;Â&#x201D;Â&#x192;Â?Â&#x2026;Â&#x2021; Â&#x2022;Â&#x2021;Â&#x2026;Â&#x2013;Â&#x2018;Â&#x201D;Ǥ Should you be interested, please contact shuyu@hfg.com.sg REF: SL0602

Solvency II Expert

HKD $800k+ basic Hong Kong

Â&#x2021;Â&#x2021;Â?Â&#x2039;Â?Â&#x2030; Â&#x192; Â&#x201C;Â&#x2014;Â&#x192;Â&#x17D;Â&#x2039;ƤÂ&#x2021;Â&#x2020; Â&#x2039;Â&#x2C6;Â&#x2021; Â&#x2026;Â&#x2013;Â&#x2014;Â&#x192;Â&#x201D;Â&#x203A; Â&#x2013;Â&#x2018; Â&#x17D;Â&#x2021;Â&#x192;Â&#x2020; Â&#x192;Â?Â&#x2020; Â&#x201D;Â&#x2021;Â&#x2022;Â&#x2019;Â&#x2018;Â?Â&#x2022;Â&#x2039;Â&#x201E;Â&#x17D;Â&#x2021; Â&#x2C6;Â&#x2018;Â&#x201D; Â&#x2013;Â&#x160;Â&#x2021; ƤÂ?Â&#x192;Â?Â&#x2026;Â&#x2039;Â&#x192;Â&#x17D; Â&#x201D;Â&#x2021;Â&#x2019;Â&#x2018;Â&#x201D;Â&#x2013;Â&#x2039;Â?Â&#x2030; submission and engage actively with the senior management team of my client. Â&#x160;Â&#x2021; Â&#x2039;Â&#x2020;Â&#x2021;Â&#x192;Â&#x17D; Â&#x2026;Â&#x192;Â?Â&#x2020;Â&#x2039;Â&#x2020;Â&#x192;Â&#x2013;Â&#x2021; Â?Â&#x2021;Â&#x2021;Â&#x2020;Â&#x2022; Â&#x2013;Â&#x2018; Â&#x160;Â&#x192;Â&#x2DC;Â&#x2021; Â&#x2022;Â&#x2013;Â&#x201D;Â&#x2018;Â?Â&#x2030; ƤÂ?Â&#x192;Â?Â&#x2026;Â&#x2039;Â&#x192;Â&#x17D; Â&#x201D;Â&#x2021;Â&#x2019;Â&#x2018;Â&#x201D;Â&#x2013;Â&#x2039;Â?Â&#x2030; Â&#x2021;Â&#x161;Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2039;Â&#x2021;Â?Â&#x2026;Â&#x2021; Â&#x2022;Â&#x2014;Â&#x2026;Â&#x160; Â&#x192;Â&#x2022;

ÇĄ ÇĄ Â&#x192;Â?Â&#x2020; Â&#x2018;Â&#x17D;Â&#x2DC;Â&#x2021;Â?Â&#x2026;Â&#x203A;

ÇĄ Â&#x2021;Â&#x161;Â&#x2026;Â&#x2021;Â&#x17D;Â&#x17D;Â&#x2021;Â?Â&#x2013; Â&#x2026;Â&#x2018;Â?Â?Â&#x2014;Â?Â&#x2039;Â&#x2026;Â&#x192;Â&#x2013;Â&#x2039;Â&#x2018;Â? Â&#x2022;Â?Â&#x2039;Â&#x17D;Â&#x17D;Â&#x2022; Â&#x2039;Â? Â?Â&#x2030;Â&#x17D;Â&#x2039;Â&#x2022;Â&#x160; Â&#x2039;Â&#x2022; Â&#x2021;Â&#x2022;Â&#x2022;Â&#x2021;Â?Â&#x2013;Â&#x2039;Â&#x192;Â&#x17D;Ǥ For more information please contact tong@hfg.co.uk REF: TY0601

I am urgently seeking a high calibre Solvency II Actuary with strong hands on Pillar I Â&#x192;Â?Â&#x2020; Â&#x2021;Â&#x2026;Â&#x2018;Â?Â&#x2018;Â?Â&#x2039;Â&#x2026; Â&#x2026;Â&#x192;Â&#x2019;Â&#x2039;Â&#x2013;Â&#x192;Â&#x17D; Â&#x2021;Â&#x161;Â&#x2019;Â&#x2021;Â&#x201D;Â&#x2039;Â&#x2021;Â?Â&#x2026;Â&#x2021; Â&#x2013;Â&#x2018; Â&#x201E;Â&#x2021; Â&#x201E;Â&#x192;Â&#x2022;Â&#x2021;Â&#x2020; Â&#x2039;Â? Â&#x2018;Â?Â&#x2030; Â&#x2018;Â?Â&#x2030;Ǥ Â&#x2018;Â&#x2014; Â&#x2122;Â&#x2039;Â&#x17D;Â&#x17D; Â&#x201E;Â&#x2021; Â&#x201D;Â&#x2021;Â&#x2022;Â&#x2019;Â&#x2018;Â?Â&#x2022;Â&#x2039;Â&#x201E;Â&#x17D;Â&#x2021; for various Solvency II and economic capital projects in the APAC region and be the key person to advise senior management team on how Solvency II is going to Â&#x2039;Â?Â&#x2019;Â&#x192;Â&#x2026;Â&#x2013; Â&#x2013;Â&#x160;Â&#x2021;Â&#x2039;Â&#x201D; Â&#x201E;Â&#x2014;Â&#x2022;Â&#x2039;Â?Â&#x2021;Â&#x2022;Â&#x2022; Â&#x192;Â&#x2022; Â&#x2122;Â&#x2021;Â&#x17D;Â&#x17D; Â&#x192;Â&#x2022; Â&#x2013;Â&#x160;Â&#x2021; Â&#x201E;Â&#x2021;Â&#x2022;Â&#x2013; Â&#x2022;Â&#x2018;Â&#x17D;Â&#x2014;Â&#x2013;Â&#x2039;Â&#x2018;Â? Â&#x2013;Â&#x2018; Â&#x2039;Â?Â&#x2019;Â&#x201D;Â&#x2018;Â&#x2DC;Â&#x2021; Â&#x2013;Â&#x160;Â&#x2021;Â&#x2039;Â&#x201D; Â&#x2021;Â&#x161;Â&#x2039;Â&#x2022;Â&#x2013;Â&#x2039;Â?Â&#x2030; Â&#x2022;Â&#x2013;Â&#x192;Â?Â&#x2020;Â&#x192;Â&#x201D;Â&#x2020; formulaFor more information please contact: tong@hfg.co.uk REF: TY0602

EA Licence Number: 14C7034

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

THE ACTUARY â&#x20AC;˘ June 2016 www.theactuary.com

ACT Rec Jun16.indd 44

20/05/2016 16:33

www.theactuaryjobs.com

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

NON-LIF E LLOYD’S/LMKT RESERVING ACTUARY

PRICING ACTUARY

Lloyd’s syndicate require an experienced nearly/ newly qualiƂed Actuary to take the lead for Reserving across all business lines. Responsibilities will include quarterly reserving, modelling, proƂtability reviews, MI development, alongside partnering with pricing and underwriting to integrate pricing and rate monitoring into the reserving process. Strong software skills (ResQ, Excel, @Risk) alongside an aptitude for communicating complex concepts to non-technical audiences are pre-requisites.

Nearly/newly qualiƂed pricing actuary with experience across a variety of classes required for LMKT insurer. Working closely with underwriters, work will include model building and optimisation, portfolio analysis, performance monitoring, outwards RI support, rate monitoring and Solvency II work.

Candidates must possess an excellent academic track record, and be conƂdent communicating technical concepts to a non-technical audience at all levels. The ability to extend this communicative ability to senior stakeholders is critical.

£ highly competitive Salary + bonus + beneƓts CITY OF LONDON

NON-LIFE

Samantha Yee yees@mansionhouse.co.uk

NEARLY/ NEWLY QUALIFIED CAPITAL ACTUARY

RISK MANAGER

A growing London Market Insurer is looking for an actuary with solid capital modelling experience (3 to 7 years).

Someone with a strong understanding and an interest in building models, rather than running a process would be a good Ƃt for the team. Dynamic business, where actuaries are very much involved in a commercial sense. Top performing team, Actuaries with strong academics and PhD holders encouraged to apply.

Working closely with Head of Financial Risk to support on the oversight of Capital Management and Risk Appetite.

Work will involve independent validation of actuarial function, as well as design and oversight of Stress and Scenario Testing. An effective communicator is a must for liaison with various stakeholders. A risk professional with a proven record in general insurance Ƃnancial and underwriting risk management would be an excellent Ƃt.

£75,000 - £90,000 LONDON

LIFE

Lloyd Seaborn seabornl@mansionhouse.co.uk

£ Extremely competitive + bonus + beneƓts LONDON

£70,000 - £85,000 SOUTH COAST

LIF E & P EN S I O N S /I N VES T MEN T S QUALIFIED LIFE ACTUARY

MANAGING DIRECTOR

Experienced Life Actuary required for this unique organisation. To be considered you will have a working knowledge of risk-based capital, ERM and SII coupled with in depth of experience of life insurance business (preferably including unit-linked / investment / international business), with any GI experience extremely beneƂcial. Working in a small, multidisciplinary team excellent report writing and communication skills, with a strong attention to detail and the ability to deal with sensitive issues, are pre-requisites.

A position has become available that sits within the senior leadership team of a well-established Life Insurer, with current UK market knowledge of all protection products. As a qualiƂed actuary you must possess necessary technical experience but have the natural leadership capabilities to command high numbers of staff. International experience could potentially align with the business current vision of global expansion.

Up to £80K + beneƓts + Ɠnal salary pension NORTH WEST

FRANCE/BELGIUM/LUXEMBOURG Dior Musombo musombod@mansionhouse.co.uk

DIRECTOR COVENANT ADVISORY

£100-150K + market leading bonus & beneƓts LONDON

FRANCE

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

LIFE PROTECTION £160,000 + up to 60% bonus

SENIOR PORTFOLIO MANAGER ASSET MANAGEMENT £130,000 + 300% variable

A client I represent, a pre-eminent asset house, requires a commercially minded and technically outstanding qualiƂed actuary with extensive experience of Asset liability management, Liability driven investment, Ƃ xed income and derivatives. This role demands an individual with a cutting edge skill-set, with experience of handling funds at the top end of the spectrum.

Elodie Hong Tuan Ha Elodie@mansionhouse.co.uk

E UR OP E NON-LIFE ACTUARY €55K – 70K LUXEMBOURG

GERMANY

Julia Dunkelberg dunkelbergj@mansionhouse.co.uk

ACT Rec Jun16.indd 45

QualiƂed NL Actuaries (IABE or similar) with signiƂcant consulting experience required for this Luxembourg based Insurance company. You will have a solid track record within P&C and be well connected in your market, leveraging off your network to help grow and maintain the business. With a minimum of 3 years of experience you will be expected to take a leadership role generating, executing and overseeing work.

HEAD OF PILLAR 2 OF SOLVENCY 2 – RISK MANAGEMENT Competitive salary + beneƓts FRANCE

Actuary with strong expertise in life and risk management needed for a leading insurance company. You will be in charge of ORSA, risk appetite and internal model validation. This is an international role so proƂciency in English is required. You must have good interpersonal skills as you will deal with senior professionals.

June 2016 • THE ACTUARY 45 www.theactuary.com

20/05/2016 16:33

Appointments

ARE YOU AN EXPERIENCED GI ACTUARY? We are an award winning organisation as General Insurer of the Year, we hold CII Chartered Insurer and we are also listed as one of The Sunday Times Top 25 best big companies to work for in 2015.

We are looking for Specialists in the below General Insurance areas: • Senior Pricing Actuary – Birmingham or Farnborough • Senior Business Insights Analyst – Birmingham or Farnborough • Predictive Modeller/Statistician – Fareham • Pricing Actuary – Farnborough, London, Fareham or Isle of Man As part of the UKGI Actuarial team you will contribute towards providing a high quality, cost effective actuarial pricing service, combining expert technical skills with business acumen, taking insight into actions within the business.

To apply for this role please email your CV to recruitment@uk.zurich.com or apply online www.zurich.co.uk/careers please search using the above job titles.

ZURICH INSURANCE. FOR THOSE WHO TRULY LOVE.

The Actuarial Education Company on behalf of the Institute and Faculty of Actuaries Actuarial Tutor

£Competitive

As an ActEd tutor, you'll enjoy a variety of challenging and rewarding work.

You'll teach small groups of motivated students and write distance-learning study material and develop online resources. Tutors enjoy a uniquely flexible and informal working environment. With a relevant actuarial qualification, you will be articulate, passionate about your subject area and highly motivated to deliver the highest quality teaching across London and/or other UK financial centres. We’d ideally like to hear from a life insurance practitioner who would be willing to teach the specialist Life Insurance and Actuarial Risk Management subjects (amongst others). We will consider both full-time and part-time applicants. For more information, please email IanSenator@bpp.com.

Part-time Skills Coach and Assessor

£Competitive

You will provide coaching and support to actuarial technician apprentices across the UK and liaise with their line manager to ensure they complete the requirements of their apprenticeship on time. The role will include assessing the apprentices’ work-based evidence without necessarily being an expert in the specific field of work of the apprentice, e.g. general insurance, life insurance or pensions. However, a good understanding of the work of an actuarial technician (or similar) is required. This position will suit someone with excellent written and verbal communication skills who is able to motivate and demonstrate initiative. There may also be opportunities to get involved in the support for students taking the mainstream actuarial exams. Please note that this role will require travel across the UK, and the successful candidate will be required to undergo an Enhanced DBS check and check on driving licence. For more information, please email AnnaBishop@bpp.com.

To view full job descriptions and apply, please visit www.bpp.com/careers The Actuarial Education Company (ActEd) and BPP Actuarial Education are members of the BPP Professional Education Group.

46

Scheme Actuary 12 month fixed term contract £Competitive Edinburgh

Experienced Scheme Actuary holding a current certificate required to look after 25-30 small to medium sized pension schemes. The appropriate candidate will be able to manage complex client relationships, deliver the full range of scheme actuary work and any other actuarial work required by trustees from time to time, and be able to advise corporates on UK, European and US pension accounting standards.

The candidate will also be expected to take a lead in technical actuarial research projects associated with the advice given to clients. As well as being strong technically, good personal and communication skills are essential.

For more information or to apply for this position contact David Watson on 07557 901850 or david.watson@scottishwidows.co.uk

THE ACTUARY • June 2016 www.theactuary.com

ACT Rec Jun16.indd 46

20/05/2016 16:33

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

We are delighted to welcome Margaret and David to Star. Margaret has a great understanding of the market, together with an extensive network, and is a fantastic addition to our investment and asset management team. David’s technical understanding and focus on quality make him a good fit for our award-winning team.

We are sure that he will deliver excellent results for our London Market clients.

Louis Manson, Managing Director

Margaret de Valois F I A ASSOCIATE DIRECTOR Margaret is a Fellow of the Institute of Actuaries with almost 20 years’ experience working in the pensions and investment markets.

She has a demonstrable track record of successfully managing, and building, actuarial and investment teams, so is well placed to advise employers on their recruitment needs, as well as advising candidates.

Margaret is a regular contributor to the press having been featured on BBC Daily Politics as well as being a former Editor of The Actuary magazine.

M: +44 (0)7786 992 802 E: margaret.devalois@staractuarial.com L: uk.linkedin.com/in/mdevalois

David Ellis SENIOR CONSULTANT David joined the non-life actuarial market after graduating from Canterbury Christ Church University with a first class degree. Since then he has built a strong network and excellent reputation across the market, making placements with a number of high-profile companies.

He possesses a keen interest in actuarial practice in General Insurance and works hard to understand the technical requirements of his clients, as well as providing the right cultural match. David is enthusiastic about providing a high-quality, transparent and personable service to clients and candidates alike - aiming to exceed expectations at every stage of the process.

M: +44 (0)7432 791 061 E: david.ellis@staractuarial.com L: uk.linkedin.com/in/davidjellis1

VISIT WWW.STARACTUARIAL.COM NOW TO SEARCH MORE THAN

ACT Rec Jun16.indd 47

200

CURRENT OPEN VACANCIES June 2016 • THE ACTUARY 47 www.theactuary.com

20/05/2016 16:54

Appointments N O N - L I F E LIFE R IS K P E N S IO NS I NVESTM ENT HEALTH PROJECT DIRECTOR

HEAD OF SPECIALTY PRICING ANALYTICS

SENIOR MANAGER - PRICING ANALYTICS

£ excellent + benefits

£ excellent package

£ excellent + benefits

NON-LIFE LONDON

STAR3236

NON-LIFE LONDON

STAR3183

NON-LIFE LONDON

STAR3204

Self-starting, delivery-focused actuary required to take the lead as a Project Director. The successful candidate will be an innovative thinker with strong interpersonal skills.

Global insurer seeks qualified actuary with significant speciality or commercial experience, to lead a team developing exposure pricing models.

Seeking a talented non-life actuary with expertise in pricing and analytics to join a leading GI team and experience more intensive client interaction, much wider than actuarial, up to senior executive and board level.

CAPITAL MODELLING SENIOR MANAGER

RISK AND CAPITAL SPECIALIST

RISK AND REWARD

£ excellent package

£ excellent + benefits

NON-LIFE LEEDS

STAR3233

NON-LIFE LONDON

£ depends upon experience STAR3173

NON-LIFE LONDON

STAR3195

Leading insurance group seeks a qualified non-life expert to take the lead on the production of capital requirements for the General Insurance business.

Global consultancy is looking for an accomplished actuary with experience in capital modelling techniques to specialise in capital and risk within its non-life team.

A superb opportunity for a qualified actuary with expertise in non-life risk. This role will reward a commercially aware actuary with both a deep technical skill set and developed interpersonal skills.

RESERVING AND SOLVENCY II

RESERVE A PLACE IN THE LONDON MARKET

LONDON MARKET CAPITAL

£ depends upon experience

£ very attractive

£ excellent + bonus + benefits NON-LIFE SOUTH EAST

STAR3127

NON-LIFE LONDON

STAR3120

NON-LIFE LONDON

STAR3138

Leading insurer seeks qualified GI actuary with strong experience of Motor and Home lines to undertake internal reserve reviews and produce Solvency II technical provision assessments.

We are currently working on a number of exciting opportunities for part-qualified and qualified actuaries with relevant London Market or Lloyd’s reserving experience to join a key player.

Excellent opportunity for a qualified non-life actuary with experience of Remetrica and Lloyd’s SCR to make a difference within our client’s capital modelling team.

CAPITAL MODELLING CONSULTANT

NON-LIFE ACTUARIAL ADVISOR - LONDON

GI PRICING MANAGER

£ excellent + bonus + benefits

£ excellent + bonus + benefits

£ excellent NON-LIFE SOUTH EAST

STAR3210

NON-LIFE LONDON

STAR3202

NON-LIFE GREATER LONDON / SOUTH EAST

STAR3096

Seeking a part-qualified or qualified non-life actuary to deliver capital modelling, reserving and pricing solutions for the global market.

Foreign languages would be an advantage.

Seeking a part-qualified non-life actuary with strong technical and communication skills to provide support for reserving, capital and pricing projects within a global consultancy.

Major insurer has an exciting opportunity for a qualified non-life actuary to deliver pricing analysis, process and controls to support the delivery of the Motor strategy.

GI PRICING ACTUARY - PARIS

BUSINESS INTELLIGENCE ACTUARY

GO WEST

€ excellent

€ excellent package

£ depends upon experience

NON-LIFE PARIS

STAR3115

Leading global insurer seeks a non-life pricing expert with a speciality in governance. The successful candidate will review pricing of large accounts, developing trend and change monitoring processes.

NON-LIFE DUBLIN

STAR3101

NON-LIFE SOUTH WEST

STAR3197

International insurer seeks a qualified non-life actuary to deliver clear business insight into the underwriting performance of a range of Business Units.

Are you a general insurance actuary looking to move to the South West? We are working on many exciting opportunities in the region, across risk, pricing and capital, with a wide range of clients.

NON-LIFE CAPITAL LEADER

CUTTING-EDGE RESERVING

STARVACANCIES HEAD OF PRICING ANALYTICS up to £120k + bonus + benefits NON-LIFE MIDLANDS

£ excellent package STAR3044

Our client is seeking a qualified GI actuary to use their significant non-life pricing experience to lead and oversee the development and delivery of a market-leading pricing infrastructure.

48

£ excellent + bonus + benefits STAR3235

We are working with a leading specialist insurer on an opportunity for a qualified non-life actuary to be responsible for the development of a new capital model to meet SII standards and ORSA requirements.

NON-LIFE LONDON

STAR3161

Global consultancy seeks qualified non-life actuaries with consulting experience to lead the delivery of a wide range of cutting-edge assignments. Preference for London Market reserving and/or IFRS experience.

Antony Buxton FIA

Louis Manson

Irene Paterson FFA

Joanne O’Connor

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

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

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

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

Ivan Clarke

Lance Randles MBA

Paul Cook

Peter Baker

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

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

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

DIRECTOR - INSURANCE SEARCH THE ACTUARY+44 • June 78702016 181 444 www.theactuary.com ivan.clarke@staractuarial.com

ACT Rec Jun16.indd 48

NON-LIFE SOUTH EAST

20/05/2016 16:55

www.theactuaryjobs.com

ACTUARIAL POST RECRUITER OF THE YEAR 2012 . 2013 . 2014 . 2015 FINANCIAL REPORTING ACTUARY

PRODUCT DEVELOPMENT ACTUARY

CHANGE YOUR LIFE

BMD very attractive

£ excellent + bonus + benefits

£ excellent package

STAR3214

LIFE LONDON

STAR3211

LIFE SOUTH COAST

STAR3213

Life reinsurance firm seeks qualified actuary, with strong technical skills and reinsurance experience. The successful candidate will possess an excellent understanding of SII/IFRS.

We are currently working with a major global insurance firm seeking a qualified life actuary with excellent communication skills to lead a team of analysts providing actuarial input into product development.

Seeking a qualified life actuary with detailed knowledge of reporting metrics and experience of leading change implementation and project management to develop, maintain and review change delivery methods.

ACTUARIAL SENIOR MANAGER

INTERNATIONAL CONSULTANCY

LEAD A VARIED LIFE

£ excellent package LIFE LONDON

£ excellent package STAR3222

£ dependent on experience

LIFE NON-LIFE LOCATION UPON APPLICATION

STAR3116

LIFE LONDON

STAR3158

We are currently working on behalf of a global consultancy seeking a qualified life actuary with Solvency II experience to take the lead on a number of complex client-facing assignments and workstreams.

Seeking a qualified actuary with demonstrable people-management skills to be responsible for the delivery of a range of high-quality insurance consultancy services.

Our client seeks a life actuary with a broad skill set to join its team. Solvency II, risk management and governance knowledge are required, alongside involvement with underwriting, pricing, and product development.

REPORTING ACTUARY

CAPITAL ACTUARIES

STOCHASTIC MODELLING LEAD

£ excellent package LIFE SOUTH WEST

€ excellent + bonus + benefits

£ excellent + bonus + benefits STAR3203

LIFE YORK

STAR3164

LIFE PARIS

STAR3103

An excellent opportunity for a qualified life actuary to take the lead on complex actuarial reporting workstreams and to contribute to the development of our client's overall strategy.

Major insurer seeks qualified life actuaries with strong knowledge of Solvency II methodology and demonstrable influencing skills to play a key role in optimising the firm’s capital position.

Global composite insurer seeks a qualified life actuary to lead its Stochastic Modelling team.

With strong leadership skills and MoSes experience, you will have a good command of the French language.

MOVE TO MANAGEMENT CONSULTANCY

ERM ACTUARY

SHAPE THE FUTURE

£ depends upon experience

£ excellent + benefits

£ excellent + bonus + benefits

LIFE NON-LIFE SOUTH WEST / SOUTH COAST STAR3169

LIFE NON-LIFE LONDON

We are currently working on a number of exciting opportunities for talented individuals with a proven track record of success to maximise their careers within a leading global management consultancy.

Leading insurer has an exciting opportunity for a risk specialist to play a key role in the development of its Enterprise Risk Management framework, responsible for the reporting of financial market and insurance risks.

Our client is seeking an insurance actuary with excellent Solvency II knowledge, and exceptional communication and influencing skills to join its team and make their mark in the industry.

PRICING ACTUARY

PENSIONS CONSULTING IN THE CAPITAL

ASSISTANT ACTUARIAL MANAGER

£ excellent + bonus + benefits

£ excellent + bonus + benefits

£ excellent + bonus + benefits

LIFE LONDON

STAR3196

LIFE PENSIONS LONDON

STAR3225

Our client is seeking a part-qualified or qualified actuary with life or pensions experience to join its new business team as a pricing actuary.

The successful candidate will be a self-starter with strong people management skills.

PENSIONS LONDON

STAR3185

Leading specialist consultancy has an unrivalled opportunity for a qualified pensions actuary to take the lead on actuarial valuations for funding purposes, solvency testing and buy-in analysis for a range of clients.

FOR MORE VACANCIES VISIT

STAR3130

PENSIONS BIRMINGHAM

STAR3147

Seeking a part-qualified pensions actuary with a commercial focus and experience of corporate and trustee pension issues to provide support to a wide range of projects, including benefit change and scheme design.

www.staractuarial.com

ASSET ALLOCATION SPECIALIST

ASSOCIATE DIRECTOR

DC INVESTMENT CONSULTANT

£ excellent package

£ excellent package

£ excellent + bonus + benefits

PENSIONS LONDON

STAR2936

Leading consultancy is seeking a knowledgeable and credible thought-leader with practical market-facing experience from a multi-asset environment to engage with clients and the press.

ACT Rec Jun16.indd 49

INVESTMENT LONDON

Star Actuarial Futures Ltd is an employment agency and employment business

LIFE BERMUDA

STAR3228

Our client, a leading investment specialist, is searching for a qualified actuary or CFA with strong client relationship management skills and proven sales experience within the asset management environment.

INVESTMENT LONDON/SOUTH EAST/BRISTOL STAR3199 Our client is seeking a qualified actuary (or CFA) to provide support to Client Managers in all aspects of DC investment consulting whilst taking the lead on smaller clients.

Jo Frankham

JJan Sparks FIA

Adam Goodwin

Margaret de Valois FIA

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

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

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

ASSOCIATE DIRECTOR +44 7786 992 802 margaret.devalois@staractuarial.com

Clare Roberts

Carolina Emmanuel

Diane Lockley

David D Ellis

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

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

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

SENIOR S CONSULTANT 2016 THE ACTUARY +44 + June 7432 791•061 www.theactuary.com david.ellis@staractuarial.com d

49

20/05/2016 16:55

Appointments

Brexit Referendum: what impact will it have on the UK insurance industry?

24,000 .36)(3 CANDIDATES

41 61 (*;<(90(3 *65:<3;(5;:

420 30=, (*;<(90(3 VACANCIES

77,000 .36)(3 NETWORK

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It is the intensifying debate that has been commanding news headlines; should Britain exit the EU? .YLH[ )YP[HPU OHZ ILLU H TLTILY VM [OL ,< for 43 years. This membership enables our businesses the right to trade openly across the entire EU market and UK insurers can write business in EU member states without M\Y[OLY SVJHS JHWP[HS YLX\PYLTLU[Z 0M )YL_P[ does indeed happen, the UK would have to negotiate a withdrawal agreement which could in fact result in full denial of access to trade freely in the future.

What would be the impact on the UK PUZ\YHUJL THYRL[ PM )YP[HPU KPK L_P[ [OL ,<& *\YYLU[S` <2 PUZ\YHUJL Ä YTZ OH]L direct access to a single insurance market ZWHUUPUN JV\U[YPLZ" HWWYV_PTH[LS` OHSM H billion people. Insurers can conduct crossborder business without requiring further authorisation or incurring additional local costs. Should the UK cut ties with the EU, UK PUZ\YHUJL Ä YTZ TH` IL YLX\PYLK [V VWLU ,< branches in order to gain writes to underwrite business in their respective territories. This ^PSS \UKV\I[LKS` YLZ\S[ PU ZPNUPÄ JHU[ YLZV\YJL and cost issues alongside the likelihood that insurers may relocate to EU member states to JVUK\J[ I\ZPULZZ TVYL Lɉ JPLU[S`

It is also important to note the impact Brexit could potentially have on the UK recruitment industry. Would divorcing ourselves from the EU equal limited career progression if candidates were keen to work for European businesses?

Would UK businesses lose EU workers?

Would this in turn reduce the talent pool in the UK and limit the quality of the candidates available to hire? Geographic mobility plays HU PTWVY[HU[ WHY[ ^P[OPU [OL Ä UHUJPHS ZLY]PJLZ recruitment industry, with EU actuaries having the freedom to use their skill sets across EU countries regardless of their location. This opens up the candidate pool for recruitment Ä YTZ Z\JO HZ V\YZLS]LZ /V^L]LY PM )YL_P[ occurs, recruiters will need a greater understanding of the laws and regulations regarding migrant workers and there will likely be an increase in red tape management.

A decrease in global mobility could mean we see fewer incoming candidates from the EU as a result of the changes to laws and regulations, and this could make the best candidates harder to source and the talent pool for UK businesses even smaller.

Additionally, it is likely that there would be an impact on UK salaries and potentially on the UK business culture as a whole.

The UK market is also viewed as a direct platform for the United States and China to conduct trading. This view could alter KYHZ[PJHSS` PM )YP[HPU KVLZ L_P[ [OL ,< :PTPSHYS` investment in the UK insurance industry is likely to waver if access for UK insurers to the EU is restricted or even denied, creating reduced business opportunities overall and negatively impacting the UK insurance market.

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THE ACTUARY • June 2016

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

ACT Rec Jun16.indd 50

20/05/2016 16:33

www.theactuaryjobs.com The biggest impact on the insurance industry would be on regulation. The EU drives the regulatory environment, Solvency II being a classic example. Being absent from the EU would hand more discretion to domestic authorities over rule design. /V^L]LY P[ PZ SPRLS` [OL <2 ^V\SK JOVVZL [V pursue a Solvency II equivalent approach. The major risk would be a UK outside of the EU, ^OLYL ^L HYL \UHISL [V PUÃ&#x2026; \LUJL MYVT ^P[OPU yet still obliged to follow EU regulation for competitive advantage.

On the contrary, some argue that the UK could be a more attractive destination to do business if it were independent of the crisis and uncertainty of the Eurozone market.

:^P[aLYSHUK PZ H WYPTL L_HTWSL VM H [OYP]PUN HUK Ã&#x201E; UHUJPHSS` Z[HISL UH[PVU ^OPJO PZ UV[ H member of the EU. It has access to the EU market but does not have to comply with EU laws. Zurich and Swiss Re, two of the ^VYSK»Z TVZ[ Z\JJLZZM\S PUZ\YLYZ HYL IV[O headquartered in Switzerland, escaping the tough capital requirements of EU regulations.

One such regulation that UK insurers could IL SPILYH[LK MYVT PM [OL <2 ^LYL [V L_P[ [OL EU is Solvency II. This would not impact the credibility of the UK insurance market it would TLYLS` LSPTPUH[L [OL L_JLZZP]L JVZ[Z Alongside this, UK insurers could be freed MYVT [OL ,< .LUKLY +PYLJ[P]L LUHISPUN Ã&#x201E; YTZ to factor gender into the pricing of insurance.

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Contact Us: )LUQHTPU 4VZLZ *VU[YHJ[ +44 207 310 8793 benjamin.moses@ojassociates.com

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A number of mid & large sized syndicates ZLLR ULHYS` VY UL^S` X\HSPÃ&#x201E; LK HJ[\HYPLZ MVY H ]HYPL[` VM OPNO WYVÃ&#x201E; SL HUK IYVHK 9LZLY]PUN roles. Would be ideal for people with JVUZ\S[HUJ` L_WLYPLUJL ,_JLSSLU[ Z[HRLOVSKLY management skills essential due business facing nature of the roles.

Well-known life insurance business are currently seeking a number of actuaries from WHY[ ULHYS` X\HSPÃ&#x201E; LK SL]LS [V QVPU [OL YLWVY[PUN team. SII, IFRS and any other metrics covered ^PSS IL \ZLM\S HKKP[PVUHS Z`Z[LTZ L_WLYPLUJL ^P[O WYVWOL[ HUK =)( ^V\SK IL ILULÃ&#x201E; JPHS

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The ideal candidate will have a background in identifying/analysing credit risk and ^PSS IL L_WLJ[LK [V JHYY` V\[ ZVS]LUJ` 00 YPZR HZZLZZTLU[Z 7YL]PV\Z L_WLYPLUJL PU implementing controls to mitigate insurance/ Ã&#x201E; UHUJPHS YPZR ^PSS HSZV IL HK]HU[HNLV\Z ( strong technical understanding of standard formula and internal model principles would be helpful.

We are currently recruiting a variety of senior Capital vacancies across the UK. Our clients include a number of leading personal and commercial lines insurance companies alongside established London market VYNHUPZH[PVUZ (SS [OLZL YVSLZ HYL OPNO WYVÃ&#x201E; SL positions that involve board level interaction and team management. Previous capital TVKLSSPUN L_WLYPLUJL PZ LZZLU[PHS

Oliver James Associates are currently working VU H ]HYPL[` VM L_JP[PUN JVU[YHJ[ YVSLZ MYVT systems development and reporting to capital management. The contract market is an L_JP[PUN WSHJL ^OPJO JHU VÉ&#x2C6; LY Ã&#x2026; L_PISL ^VYRPUN HZ ^LSS HZ ZPNUPÃ&#x201E; JHU[ Ã&#x201E; UHUJPHS YL[\YU 0M `V\ HYL currently considering a change, and curious HIV\[ [OL ILULÃ&#x201E; [Z [OL JVU[YHJ[PUN THYRL[ JHU VÉ&#x2C6; LY [OLU WSLHZL NL[ PU JVU[HJ[ MVY H JVUÃ&#x201E; KLU[PHS KPZJ\ZZPVU

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www.ojassociates.com @OJAssociates oliver-james-associates June 2016 â&#x20AC;¢ THE ACTUARY 51 www.theactuary.com Oliver James Associates

Financial & Professional Service Specialists

ACT Rec Jun16.indd 51

20/05/2016 09:21

Appointments www.the-arc.co.uk

The Actuarial Recruitment Company

A fresh approach

Actuarial Development Analyst General Insurance London Competitive Package

Head of Capital South East

Our client is looking for an actuarial trainee with good IT skills and a strong understanding of reserving concepts to work within the development team which supports the Actuarial reserving team. The development team exists to create, test and roll out new tools to improve the efficiency and support a common approach to reserving across the business. The role may appeal to someone who has given up the exams but has the requisite skills and knowledge.

Ref: ARC26314

This specialist retail insurer who is based outside of London is seeking a Head of Capital. The role will report directly into the Chief Actuary and will have responsibility for the management of a small team. There would be interaction with the senior management of the business and strong communication skills are a must. The skills, knowledge and a tract record of delivery are more important than actuarial qualification.

ReMetrica or Igloo experience would be a big advantage.

Ref: ARC26313

ERM Actuary London

GLM experienced actuary/analyst General Insurance Northern England £Excellent

General Insurance Circa £80K

An established Lloyd’s business is looking for a nearly qualified or newly qualified actuary to specialise in technical/actuarial risk management within the business. The role will be involved in production of the group wide ORSA, model validation, stress testing, risk control monitoring and reporting as well as risk assessment of strategic initiatives. The client is looking for a candidate with very strong communication skills as there will be extensive interaction with the business. Ref: ARC26316

General Insurance £Excellent

This specialist retail insurer based in the north of England is looking for a GLM experienced candidate ideally with a household insurance background who is independent enough to be in a standalone actuarial role. The position would report into the MD of the company with a dotted line into a senior group actuary. This is a developing business that would provide the scope to take on more responsibilities and broaden the role over time. Ref: ARC26313

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

0781 333 7891 0781 398 9016

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

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