LivingLegacy - The Actuary

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JULY 2012
theactuary.com
Q&A: Angus
MacDonald
The magazine of the actuarial profession
‘The image of
academic life
as leisurely is a
complete myth’
Risk
management
Mass torts –
preparing for the
‘next asbestos’
Pensions
The Actuary
Putting RPI/
CPI under the
microscope
Arts
Top 10 theatre
tips at the
Fringe Festival
Featuring
The 2012
International
Supplement
July 2012
Living Legacy
How the untimely death of Lawrence of Arabia
inspired new advances in medical research
p1_cover_july_FINAL•CT.indd 1
February 2012 • THE ACTUARY
1
22/6/12 16:37:41
The next big thing.
For more than 60 years, Milliman has helped clients identify the next trend
and how it might affect them. With consultants in Europe, North America,
and Asia, we can help you spot emerging events before they unfold and
ready your business to face them.
Prepare for the future at uk.milliman.com.
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JULY 2012
The death of
Lawrence of Arabia
was eminently
preventable and led
to a campaign for
helmet use
30
Contents
26
24
UP FRONT
10
14
16
21
Profession news
Industry news
People/society news
SIAS events
COVER: GREG MEESON / CORBIS / ALAMY
FEATURES
36 Puzzles
18 Modelling: pass the message on
37 Student
Paul Shelley considers the effect of
current economic conditions on
managing pension funds
22 Pensions: measuring inflation
OPINION
5
Editorial
Deepak Jobanputra asks if we can
develop a fool-proof risk plan for
every eventuality
6
Letters
Actuaries debate own goals and
brain-drains
7
President’s comment
New president Philip Scott stresses
the importance of a good brand
8
Soapbox
Naz Peralta looks at how the eurozone
crisis is playing havoc with DB pensions
in the UK
Colin Wilson and Chris Bull explain why
actuaries should be aware of the
differences between RPI and CPI
26 Q&A: Angus Macdonald
Sonal Shah discusses actuaries and
academia with the editor of the
Annals of Actuarial Science
MORE CONTENT ONLINE
Additional content can be
found at www.theactuary.com
Matthew Welsh reviews the Actuarial
Profession’s ‘Code’
38 Actuary of the future
Stephen Hadjistyllis of Punter Southall
38 Appointments and moves
THE INTERNATIONAL
SUPPLEMENT
28 Longevity: live long and prosper
T
This
annual
ssupplement
h
highlights the
m
many career
o
opportunities
available to
a
actuaries in key
a
llocations around
tthe world.
Jon Palin looks at lifestyle trends as
drivers for a new mortality model
30 Risk management: next big thing
Matthew Ball, Yi Jing and Landon
Sullivan examine recent advances
in quantifying risks from mass torts in
preparation for the ‘next asbestos’
AT THE BACK
35 Book review
Good Governance for Pensions
Schemes by Paul Thornton and
Donald Fleming
Win a £50 Amazon voucher
34 Arts
Richard Elliott offers his top 10 theatre
tips for the Fringe Festival
I also shines a
It
sspotlight on the
emerging markets of Sout
South Africa, India and
China. Actuaries who have made the move
recount the challenges, experiences and
adventures in their country of choice.
WRITER OF THE MONTH
Dr Wilson Carswell wins a £50 book token for
his article on periodic payment orders, courtesy
of the Staple Inn Actuarial Society
July 2012 • THE ACTUARY
www.theactuary.com
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quick off
the blocks
with your
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A fresh approach
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Editorial
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Can we develop a fool-proof risk plan for
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Delving into
the unknown
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The world’s business news continues to be dominated by economic
woes. The eurozone dilemma clearly has no easy solution and the
effects of any action will not be digested easily or quickly. A close friend
of mine often remarks that we were born in the wrong generation,
but I believe we’ve never had it so good as we have more choice than
generations past. Globalisation and technology allow us to explore the
world and experience new lifestyles with relative ease, as shown by the
overseas actuaries featured in our International Supplement (see p39).
The economic crisis, one could argue, has been driven by greed and
excess. Packaged risks that few people, if any, really understood were
created and traded with a view to growing markets and driving growth.
This is clearly an oversimplification, but these were, nonetheless, key
drivers. A lesson that risk specialists can and should influence is in
developing a framework where the full spectrum of risks are considered.
Regulatory changes aim to address the shortfalls that have driven the
crisis, but will these be sufficient and is there any ‘future-proofing’ that
would still allow markets to grow and innovate? Only
time will tell. I do believe that risk management will
require much more reliance on underlying principles.
If the level of resources being applied is anything to go
by, we should see a marked improvement.
Our lead feature considers risk management and takes
a unique perspective on safety. This is a great example
of how actuaries can play an influential, albeit non-traditional, role.
By considering measures that can improve lives and provide better
outcomes, both financial and non-financial benefits can be achieved.
The feature suggests a novel solution – wearing helmets while driving!
Talking of holding onto your hats, we cannot ignore the opening of
the Olympics this month. If the UK can make the games as successful as
the Queen’s jubilee celebrations, then we’re all in for an uplifting time.
Last but not least, we have an opportunity for a ‘wizard’ puzzles
editor and an arts editor to join our team. If you are interested in either
of these roles, please email [email protected]
‘Globalisation and
technology allow us
to explore the world
with relative ease’
Deepak Jobanputra
[email protected]
Follow @TheActuaryMag on Twitter
Join The Actuary’s LinkedIn group
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[email protected]
›
Opinion
Letters
LETTER OF THE MONTH
— ER
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THE WLETTER
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H
T
TH
F
O
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OF TH EIVES A
REC AZON
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£25 A CHER
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—
Multiple choice test
Here’s one to warm students up for the next round of
actuarial exams. Which would it be better to do first?
a) Change statutory pension increases from being linked to
the retail price index (RPI) to being linked to the consumer
price index (CPI), causing union uproar, significant
additional advisory fees across the pensions industry and
a Trust Deed lottery in occupational pensions, leading to
resignations and disputes; or
b) Change the calculation methodology gradually over
time, so that RPI and CPI converge?
This is a pass or fail question.
Mike Harrison, 12 June 2012
Demise of defined benefits
400 Club membership truly broad
Anuj Sharma describes the membership ‘400 Club’
as representing all aspects of the membership of the
profession (Letters, June 2012). He may not be aware of just
how wide it is. I am a member of the ‘400 Club’ because
I volunteered. I have been a junior clerk working for the
Army since 2005. Prior to that I was a ‘white van man’.
My main use to the profession is that I remember why we
did things in the past, thus improving the basis on which
the future will be planned.
Robert Steel, 2 June 2012
MORE LETTERS ONLINE
More letters are available online at
www.theactuary.com/opinion
6
If our Scottish Board is serious about raising our profession’s profile north
of the border, then I would like to suggest a simple, free and effective means
of engaging Scottish companies, their shareholders and the general public:
contributing to and attending AGMs. I recently attended Standard Life’s AGM,
where, interestingly, the entire board of directors seemed devoid of any
actuaries. Moreover, I was the only actuary who spoke from the floor and I
recognised only one other actuary in the entire audience. For a profession that
once prided itself on being able to ‘make financial sense of the future’, our virtual
absence from such a forum – where we could add value – cannot be right. And,
of course, rather than being merely some parochial issue, this idea could easily
be extended to UK plc. In her parting column last month, Jane Curtis seemed to
think we have been successful in raising our profile. We may have come a long
way, but celebrations are surely premature, so come on, let’s get out there and
be heard.
Gerry Devenney, 1 June 2012
REX
I have just read the summary of the Xafinity report in
the news section of the June issue of The Actuary. I note
that defined benefit (DB) plan assets in the UK are about
two-thirds of liabilities. Bypassing the intricacies of the
definition of liabilities, this suggests to me that if funding
requirements and the associated panic buttons were set
along the lines suggested in my May 2012 letter, many
DB plans would not be considered in deficit. They would,
therefore, be comfortable in continuing to make full benefit
payments, including what I called bonuses, while they
waited for the market turnaround for which we all hope.
As a result, most DB retirees would not have to swallow
immediate drops in their payout comparable to those
that many current DC retirees must be seeing. Even those
whose plans have no excess assets to support bonus
payouts would often be no worse off than those DC folk
who are taking haircuts now; they could, however, expect
to see a recovery if and when the situation turned around
and bonus payouts could be resumed.
In terminating DB plans, participants would face
permanent haircuts, but they would only be comparable
to those that are being taken in defined contribution (DC)
plans – all of them, not just those that terminate.
Should we not rethink the rules before the DB plan
disappears in the private sector?
Brian A Jones, 7 June 2012
AGM absence is an own goal
Stop the brain-drain
Regularly in The Actuary we hear the Profession
celebrating how there are more overseas student
members. The Profession’s policy of applying discounts
for training actuaries overseas will of course mean a
relative growth in overseas student membership; indeed,
such policies have surely contributed to the Profession
having to declare a shortage of actuaries in the UK.
The Profession’s higher charges for UK training are
funding overseas expansion activities.
The growing supply of UK-trained actuaries abroad
and ever-improving communications technology makes
it inevitable that UK companies will relocate their
actuarial departments overseas, leaving British actuaries
on the dole, as companies take advantage of lower labour
costs abroad.
UK actuaries who dismiss this scenario should refer to
the IT, admin and call centre departments, where such
exporting of jobs has already taken place.
David Thomas, 2 June 2012
The editorial team welcomes readers’ letters but reserves
the right to edit them for publication. Please email
[email protected]. The deadline for receiving letters for
the August issue is 16 July.
THE ACTUARY • July 2012
www.theactuary.com
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›
Opinion
President’s comment
Philip Scott is the
president of the
Institute and
Faculty of Actuaries
PHILIP SCOTT
Brand
leadership
I am delighted to write this, my first article, to
you as president of the Institute and Faculty of
Actuaries. First, I must thank those who have
helped me prepare for this role and who have
set out an excellent ‘flight plan’ to follow for
our future strategy. To continue the metaphor,
I am taking over the controls from a skilled
pilot, Jane Curtis, who has ensured that the
initial stages of the strategy for the Profession
have been carried out with extraordinary
efficiency and success.
Thanks also go to the members of the
council: the former immediate-past president,
Ronnie Bowie; the heads of the committees,
and volunteers. It is easy to forget the impact
of these people and the part they play in
making things happen – without them the
Profession could not function and I would
certainly find my job more difficult.
Much has changed since I started on my
actuarial career many years ago. The internet
had yet to be invented, letters were
handwritten and typed up by formidable
secretaries, complicated calculations were
simplified by clever formulae and, if you
worked hard, you aspired to the highest
position in the company.
Actuaries were recognised as hardworking, intellectually superior, trustworthy
and responsible. These traits were valued.
There was no need to be charismatic, good
at communications or personable. Our
semi-mystical actuarial skills were sufficient
for respect. We, in possibly a too complacent
manner, thought this would never change.
As a result of our history, I fear we can be
perceived as having a rather muddled identity.
We need to convince others that, beyond
intelligence, we can also inspire and show
leadership and commercial skills.
Intellect alone will not be the key
determinant in deciding whether our views
are listened to or our services used. More
sophisticated software can make many of
our technical skills redundant. What we need
to demonstrate is our understanding of the
issues, and to communicate to others how best
to use and develop tools for use in real-life
commercial situations. This calls for an allround skill set so that we can argue our point
of view and persuade others to take our advice.
Philip Scott believes that building the
right brand will present great opportunities
I have spent most of my working life in
large, well-respected, successful companies.
The element that keeps such organisations at
the top of their game is a solid brand identity.
A good brand adds value. A good brand means
you are easily recognised, trusted and used
frequently. Good business flows from a good
brand. It allows you to experiment with new
ventures with less risk and more potential for
return. A good brand means that demand for
services is high and a premium price achievable.
One of my aims for this year is to work
on the Profession’s brand identity. I believe
that it can be made
more visible and
recognisable. I also
want to protect the
high quality of our
image and ensure
the Profession is not
weakened or diluted.
We should differentiate
ourselves from the
competition and
develop a strategy
for building a strong
brand within the
industries where we work, with government
and the wider public. I truly believe that this
will help us in all areas – from the recruitment
of the best new students, through an increased
demand for our services and greater respect
for actuaries who are part of the Institute and
Faculty of Actuaries.
We can achieve this, in part, by improving
the way we promote ourselves and
communicate; both within the profession
and to the wider world. We should listen to
what consumers want and expect from our
skills. We should look for opportunities to
find growth in new markets. We do not want
to become a niche profession, known solely
for regulatory roles. We need to link ourselves
with a high-quality, reliable end product for all
who use our services.
I think the task of developing our
Profession’s brand into one that stands for
quality and trust in
financial matters is
a bold goal, but it is
one that is certainly
achievable and is the
best legacy that I could
wish to leave.
In my next few
columns, I want to
explore how best
these themes can be
adopted by each of the
Profession’s main work
groups. I will be looking
at what each group is doing on a day-to-day
basis, their research objectives and their
aims for the future. If you wish to join in the
debate, please feel free to contact me, or to
join one of the discussion forums based on the
Profession’s website. All in all, it looks to be a
fantastic year ahead. a
“Good business flows
from a good brand.
It allows you to
experiment with new
ventures with less risk
and more potential
for return”
www.theactuary.com
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›
Opinion
Soapbox
NAZ PERALTA
Sit tight for a
bumpy ride
As I write, the eurozone’s attention has shifted
away from Greece and back again, with some
sort of major credit or currency event now
seeming inevitable, and then onto Spain,
whose banks are weighed down by property
loans that look precarious in a country where
more than one million properties sit empty
and where unemployment has reached 24%
(50% for under-25-year-olds). While the
news frenzy reaches levels not seen since the
collapse of Lehman Brothers in 2008, let us
take a step back and consider the effect that
the euro crisis and market volatility are having
on defined-benefit (DB) pensions in the UK.
The crisis has driven gilt yields to historic
lows, with 15-year UK gilts now yielding 2.2%
(the average this millennium is 4.5%). This is
great news for gilt investors. If you had been
holding gilts for the past five years, your total
return would have exceeded 50%. But how
safe are these returns? Normally, plunging
yields reflect increased credit-worthiness.
So are you more likely to get your money
back from the UK government in 2012 than
before the financial crisis? No. The plunging
yields merely reflect the lack of safe-haven
investments available. Many, except the
pensions regulator, expect yields to revert.
Equity markets are currently some 10% off
their recent peak, with significant short-term
volatility caused by stimulus-hungry traders.
Because of these market factors, a typical
scheme’s funding level has deteriorated by
18% over the past three years. The pensions
regulator was so concerned that it issued
updated guidance for valuations in the current
climate. While technical provisions cannot be
eased and a bounceback in gilt yields cannot
be assumed, there is some increased flexibility
in recovery plans. So bigger deficits need
not lead to unaffordable cash contributions
– a welcome aspect for employers that are
struggling to generate sufficient returns.
What can DB sponsors do to control the
ballooning pensions issue? Well, most have
already tackled benefits for active members.
I expect more corporates to close to accrual
8
Naz Peralta looks at how the current
uncertainty in the eurozone is playing
havoc with defined-benefit pensions
in the UK
altogether and to see a raft of memberincentive exercises that reduce certain risks,
such as removing inflation risk via pension
increase exchange, or remove risk altogether,
such as enhanced transfer values and flexible
retirement options.
Pensions minister
Steve Webb’s industry
code of practice on
such member options
was published in June.
Arguably, the optimal
time for these exercises
has already passed,
given the current cost of
getting these exercises
away – the eurozone-related low-yield problem
again. However, the code recognises that these
options are still legitimate tools, and largely
reinforces good practice in the industry. It is
certainly challenging to get a decent return
from these exercises, but they still give savings
versus buy-out liability measures.
In the meantime, employers must
also contend with regulatory change.
Auto-enrolment is now only months
away. Placing the emphasis for pension
provision on individuals and the employer,
and away from the state, is the correct
approach, given expected demographic
change and the perilous state of public
finances. However, even with the easing of
the minimum contribution requirements
in the early years, the initiative comes at a
bad time, especially for those facing some
of the largest increases in pension cost and
administrative burden, such as retailers with
low pension-participation rates and high
staff turnover. One cannot help but think
that auto-enrolment
will lead to more pay
freezes as employers
adjust to their new
cost structures, further
turning the screw
on consumers’ real
purchasing power
and so on the UK’s
emergence from
the recession.
While there are clearly challenges ahead
for DB scheme sponsors, the best thing that
could happen for sponsors and members
is a solution to the eurozone crisis, even
if that means a break-up, and a return to
economic growth in the UK. An environment
that encourages investment and improves
flexibility in the labour market is required
to prevent the UK following its European
neighbours. In the mean time, expect a few
more months of volatile markets, fluctuating
funding levels and opportunist headlines. a
“I expect more
corporates to close to
accrual altogether and
to see a raft of memberincentive exercises that
reduce certain risks”
Naz Peralta is a director in KPMG’s corporate
advisory pensions practice in London. The views
in this article are the author’s own, not those of
his employer
www.theactuary.com
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For further information contact Claudette Asgill or Jahangir Khan on 0208 599 3748
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News
Profession
NEWS UPDATES FROM THE ACTUARIAL PROFESSION
Upfront
Opinion
CEO’s comment
Derek Cribb explains how reinvigorating
research offers the key to thought leadership
Getting ahead
of the game
Derek Cribb is the
chief executive of
the Institute and
Faculty of Actuaries
and relevance that it remains at the forefront
of the development of actuarial science,
fostering a culture of continuous learning
and providing forums where members can
put forward, explore and discuss new ideas.
This is why the Profession’s role in helping to deliver thought
leadership is recognised in our strategy, which states our ambition
to “advance all matters relevant to actuarial science”. It is also an
important element of the Profession’s strategic objective of promotion,
as research provides the content that allows the Profession to speak out
on matters relevant to the public interest.
To that end, we have reinvigorated our research capability to support
the diversity of research initiatives undertaken. These range from
papers by working parties and member interest groups (often presented
at sessional meetings and conferences) through to university-led
projects and articles for our publications (British Actuarial Journal,
Annals of Actuarial Science and the newer Longevity Bulletin). Many of
these activities are supported by a community of over 700 volunteers,
who are actively contributing to the future of the subject. As part of
reviewing our thought leadership activities, we will be looking at how
we can best disseminate our research activities.
We will shortly be implementing ‘thought leader’ and ‘experienced
practitioner’ pathways to the chartered enterprise risk actuary (CERA)
award. Under this scheme, up to 12 inspiring thought leaders (who meet
strict criteria) will be selected to receive this prestigious award and help
the CERA community to flourish. The application and selection process
for the ‘experienced practitioner’ pathway will take place later this year.
Our many research activities will ensure that the Profession remains at
the cutting edge of actuarial science. If you would like to get involved,
visit the Actuarial Profession’s stand at residential conferences or
contact volunteer engagement manager Debbie Atkins on
(+44) 131 240 1803 or [email protected].
Policy managers Paul Shelley and Sarah Mathieson also
attend major events and are happy to discuss any research
ideas to help inform policy development. a
DEREK CRIBB
10
It is vital for the Profession’s sustainability
ACCESS THE PROFESSION’S SOCIAL MEDIA FEEDS
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TWITTER
FACEBOOK
LINKEDIN
Five steps to
sustainable
pensions
Ronnie Bowie, past president of the
Institute and Faculty of Actuaries, outlined
his roadmap for a new, sustainable UK
pension system at the Pensions Conference
2012 to an audience including shadow
pensions minister Greg McClymont and
National Association of Pension Funds
(NAPF) chairman Mark Hyde Harrison.
He highlighted five key areas that need to
be addressed if future generations are to enjoy
sustainable pension provision:
● Social policy that encourages flexibility.
“People will need to be confident that they can
combine part-time work with partial pensions
and can combine pensions, savings and
provision for long-term care.”
● Regulatory policy
that encourages simple,
relevant and accessible
building blocks. Current
micro-regulation has the
unintended consequence
of excluding many lowand middle-income
earners from the longterm savings market.
Ronnie Bowie
● Enlightened selfinterest from employers – they can reap an
“engagement dividend” by facilitating a
modern and relevant benefits package.
● Fit-for-purpose building blocks from the
financial sector. “Providers need to play their
part. With NEST as a benchmark, it has been
remarkable what commercial providers have
been able to achieve in auto-enrolment.”
● A culture of self-reliance. “Employees need
to help themselves. Financial literacy is at the
heart of better public understanding and the
need to provide for their own later life income.
We need to create the financial equivalent of
‘five a day’ understanding.”
Bowie concluded: “If we all pull together
then our successors will thank us for creating
the sustainable pensions system from which
they will benefit. If we continue to bleat rather
than build, they will rightly accuse us of a
dereliction of duty.”
www.theactuary.com
p10_13_prof_news_july_FINAL•CT.indd 10
26/6/12 08:14:03
Singing the praises of the inaugural
European Congress of Actuaries
The first European Congress of Actuaries took
place in Brussels on the 7 and 8 June. While
the Groupe Consultatif’s definition of Europe
doesn’t extend quite as far as the Eurovision
song contest does, this was an excellent event,
bringing together actuaries from as far east as
the Czech Republic, as far west as Ireland, as far
north as Finland and as far south as Italy.
Arguably, the UK Profession’s contribution to
the success of this conference was greater than
Engelbert Humperdinck’s efforts in Eurovision
(pictured left), with Steven Haberman, Chinu
Patel, Chris Daykin, Neil Cantle, Seamus
Creedon and Elliot Varnell among the speakers.
The key areas discussed under the theme of
‘the European actuary of the future’ included
Solvency II, the review of the Institutions for
Occupational Retirement Provision (IORP)
directive and how enterprise risk management
is expanding the role of actuarial advice.
Full details of the conference are available
on the Groupe Consultatif’s website
www.gcactuaries.org
Disciplinary Tribunal Panel
At a hearing of the Institute and Faculty of
Actuaries Disciplinary Tribunal on 1 May 2012
at Staple Inn Hall, London, the Respondents,
Mr Jasvinder Singh and Ms Bhavneet Kaur
(both former student members), were excluded
from membership for three years following
allegations of collusion and dishonesty in the
course of sitting the Institute of Actuaries of
India’s Core Technical 6 examination.
The Respondents did not attend the
hearing and did not have legal representation.
The Tribunal was satisfied that it was
reasonable to proceed in their absence.
The Tribunal Panel found the facts as
alleged proven due to the admissions of the
Respondents that they had talked during the
course of the examination and the evidence of
the witnesses at the Tribunal.
In determining the appropriate sanction, the
Tribunal had regard to the defence statements
provided by the Respondents and the sanction
already imposed by the Institute of Actuaries of
India. The Tribunal determined that the matter
was so serious that it required an exclusion
from membership. The Tribunal determined
that no award of costs should be made.
The Respondents have 28 days to appeal
the decision.
View the determination of the Disciplinary
Tribunal at bit.ly/KCGCU7
Francis Kehoe and Jane Curtis
Visit opens new lines
of communication for
Channel Island actuaries
On Friday 18 May, the Channel Islands
Actuarial Association (CIAA) hosted its
annual dinner at La Grande Mare Hotel,
Guernsey. The event was attended by over
60 guests, comprising association members
and representatives from local societies
and associations. The then president of the
Institute and Faculty of Actuaries, Jane Curtis,
was delighted to be invited to speak on the
Profession’s key public affairs campaigns this
year, including financial literacy, pensions and
long-term care.
During the afternoon, along with volunteer
engagement manager Debbie Atkins and
regions leader Beth Montgomery, she hosted
a presentation and Q&A session on the new
strategy and volunteering opportunities for
the Profession.
The president of the CIAA, Francis Kehoe
said: “It was a pleasure to host this visit.
We appreciated both the face-to-face update
on the implementation of the strategy of the
Institute and Faculty, and the opportunity
for actuaries in the Channel Islands to give
feedback on local issues and developments.
It is especially pleasing to see an increased
focus on overseas associations and regional
societies such as the CIAA. This visit has
helped open up new lines of communication.”
For more information on CIAA, or any other
regional society, visit bit.ly/NsxnH2
GETTY
Adjudication Panel hearing
Following an Adjudication Panel on 19 April,
the Panel invited Mr Anthony Patrick Stephens
FIA (the Respondent) to accept that there had
been misconduct and to accept a reprimand.
Mr Stephens accepted the Panel’s invitation.
The Respondent was accused of misconduct
for failing to provide one or more Insufficiency
Reports as required by the trustees of the
Scheme. During the Respondent’s tenure as
Scheme Actuary, the trustees had implemented
a reduction in the transfer values without
him having issued the Insufficiency Report
that he had undertaken to provide. The Panel
concluded that the Case Report disclosed a
prima facie case of misconduct.
In determining the appropriate sanction, the
Panel had regard to the fact the Respondent
had reported the matter and co-operated fully
with the investigation, admitting misconduct.
A full copy of the determination of the
Adjudication Panel can be found on the
Profession’s website bit.ly/KCGCU7
SAVE T H E DATE
E Actuaries and the Law
13 September, Staple Inn Hall,
London WC1V 7QJ
The course will cover a range of topics including:
• Apportionment, flexible arrangements and
S75 debts.
• Professional negligence (with breakout and
case study).
For details, visit: bit.ly/LLoOqV
July 2012 • THE ACTUARY 11
www.theactuary.com
26/6/12 10:40:46
News
Profession
NEWS UPDATES FROM THE ACTUARIAL PROFESSION
The Actuarial Profession and FTSE are pleased
to announce that they have signed a new
collaboration agreement, establishing the
FTSE bursary scheme. This will provide a fund
of £55,000 per annum for the next five years
(2012 – 2016 inc).
Members of the Profession engaged in
researching investment management will
be able to apply for monies from the fund.
This includes requests from working parties
to assist with research. Projects of any size and
duration will be considered.
Applicants wishing to apply for funding from
the bursary should either respond to a call that
the Profession has issued or fill in a funding
application form for a project on some aspect of
investment management. The form should be
completed and submitted to research project
manager Pauline Simpson.
A reviewing panel will consider all
applications received. Once a decision has
been made, the applicants will be informed
and an announcement made on the
Profession’s website.
Download the funding application form at
FORT HCOMIN G E V E N TS
E Actuarial Teachers’ and
Researchers’ Conference
11 and 12 September, University of Leicester
Following on from last year’s success, the conference
will continue the theme of bridging the gap between
academics and practitioners. The Actuarial Teachers’
and Researchers’ Conference is the only actuarial
conference with a research and education focus in the
UK that is truly cross-practice and open to all.
The conference review panel is currently seeking
presentations to include in this year’s programme.
For details, visit bit.ly/My6Wdr
For enquiries, email [email protected]
E GIRO Conference and Exhibition
18–21 September, SQUARE Conference Centre,
Brussels
Delegates attending the GIRO Conference and
Exhibition 2012 will hear from authorities in the
general insurance sector discussing the issues they
face today as well as leading researchers sharing
innovative research ideas with practical applications.
Core themes will include Europe, leadership in volatile
times, climate change, spotting emerging risks, the
pricing cycle, catastrophe modelling, and annuities.
Book now: bit.ly/MnfAit
12
A toast to our volunteers
Since June 2011, over 2,000 of our members
have volunteered for the Profession. We are
extremely grateful to all our active volunteers
for the significant time and energy they have
invested over the past year.
As a gesture of thanks, we are hosting two
volunteer recognition parties this summer.
We will also be seeking feedback from anyone
who is unable to attend.
If there is sufficient demand, we will
arrange a third event, selecting a date
and location that suits the majority of the
members involved.
For details, visit bit.ly/ujaTDx
Long live the bulletin
Exam counselling
The Longevity Bulletin aims to provide a regular
overview of research into longevity trends
and a guide to prospects for long life. It
explains actuarial perspectives on
population longevity and looks
beyond the actuarial world
for statistics, research and the
latest thinking on related
subjects. The Longevity
Bulletin is published every
six months, with the next
bulletin due in November.
View the latest edition at
bit.ly/LQCXm3
Travel in central London during the Olympics
and Paralympics will be difficult and significant
delays are likely. We have therefore taken a
decision that:
● During the Olympics period (27 July to
12 August) there will be no appointments made
at Staple Inn Hall for exam counselling;
● From 13 August to 9 September there will be
very little availability.
We understand that this will be frustrating
for many of you and so we have tried to
compensate by increasing the number of
appointments held in our Oxford office.
Further details at bit.ly/KrkZX1
Expand your reading without the weight
The libraries have added a number of
e-books to their electronic resources.
From the professional skills
reading list:
● Ethics and Professionalism by
John Kultgen.
● The Ground of Professional
Ethics by Daryl Koehn.
● Insurance Ethics For a More Ethical
World by Patrick Flanagan et al.
From the CA2 reading list:
● Mastering financial mathematics in
Microsoft Excel: A practical guide for
business calculations by Alastair Day.
Con
Contact [email protected] for a login
to access these resources.
FSA review puts projections under scrutiny
The Financial Services
Authority (FSA) is consulting
on rules to ensure that
investors taking out a retail
investment product such
as a personal pension or a
life policy receive a realistic
indication of returns.
Possible changes include
the mortality assumptions
used to produce key features
documents for personal
pensions and the introduction
of a Consumer Price Index
assumption for pension
transfer analysis changes to
the rates of growth used in
projections. These will be
reduced from 5%, 7% and 9%
for tax-advantaged products
such as personal pensions to
2%, 5% and 8%.
The Financial Reporting
Council may also change the
basis used for statutory money
purchase illustrations.
The consultation on the
mortality basis has closed, but
members have until 31 August
to comment on other aspects.
ISTOCK
FTSE bursary scheme
boosts investment
management research
www.theactuary.com
26/6/12 08:14:23
Interested in shaping public
policy? Join our team
A year after the Profession’s new strategy was published, The Actuary caught
up with policy managers Paul Shelley and Sarah Mathieson to find out
how their roles have contributed to implementing the public affairs strategy
Q: In the May edition of The Actuary,
chief executive Derek Cribb mentioned
the increased public affairs activities
at the Profession. Where do the policy
managers fit into this?
PS: Sarah and I are part of the wider public
affairs team, which includes our press office;
the research team, Oxford; the international
manager, who manages our relations with
actuarial bodies outside the UK; and the
presidential team leader, who essentially
manages the engagements of the presidents.
Q: With a strengthened team on the
executive staff, what are the policy priorities
for the Profession at the moment?
PS: It won’t be a surprise that pensions is one
of the key policy areas, along with Solvency II.
Our two other priority areas are long-term
care and financial education. All four policy
priorities are areas where actuaries are
making contributions to the public policy
debate. The policy manager role is critical in
both organising the contribution of the
profession and making personal
contributions to the policy positions
adopted by the profession.
SM: We also help to shape the
research programme for the
Profession, as this provides vital
content for our contribution to
policy-making. This can include
research carried out by our members,
for example through working parties,
or external research via think tanks
or universities.
Q: What does a typical day
look like for you?
PS: It will involve working
with some of our
volunteers either on
drafting responses to a
consultation, planning a
research project or
working on a press
briefing. Having a chance
to work with some of the
most thoughtful actuaries in the Profession,
bringing actuarial thinking to some difficult
problems that society faces, is both
challenging and rewarding.
SM: Our roles are very broad – one day may be
spent in a highly technical meeting with the
Financial Services Authority on Solvency II
and the next might be drafting a speech for
the presidential team to deliver at a
conference in India.
Q: What are the key challenges for you now?
PS: To be effective we need to build bridges
beyond the actuarial profession. The policy
managers help in building links with external
stakeholders such as the Department for
Work and Pensions, the Board for Actuarial
Standards, the Financial Services Authority,
the Pensions Regulator, HM Treasury and the
politicians who direct policy.
SM: A major challenge is trying to find a
balance across the many views of our
members, who have different perspectives.
At the moment, the Profession does not tend
to lobby in its public affairs activities. This is
sometimes different to the position
members might be familiar
with from their own
employers. Trying to
achieve an overall
single view from the
Profession can
sometimes be
demanding, which brings a genuine feeling of
accomplishment when we are able to publish
our final response to a consultation.
Q: As actuaries with a number of years of
experience in life and pensions, what is it
like to now work for your own Profession?
SM: This is the smallest organisation I’ve
ever worked for and brings with it a lot of
autonomy and, sometimes, flexibility. I felt
at home very quickly. I’ve gained a lot of
valuable personal development through
working with practice areas that I have
not dealt with in the past. Working for a
member organisation is also very different.
Our members are ultimately our clients
but also play a vital role in the mechanics
of the Profession through the huge amount
of volunteer time invested.
Q: So what’s next for the policy managers?
PS: We’ve got an exciting year ahead, with
further developments from the EU, as well
as the planned changes in the UK regulatory
environment. The public debate on funding
long-term care for our ageing population will
also be on our radar. We want to capitalise
on the Profession’s research – both in
our role as a learned society but also to
assist in the public interest element of
the Profession.
SM: We will be so busy that we are
now looking to recruit another
policy manager to the public
affairs team. If you would like a
role that will help you build
an unrivalled network of
contacts in the industries
within which actuaries
work, and the chance to
make a genuine difference
to how actuaries are
perceived by the wider
public, come and join us.
For details, please contact
Miranda Wilkinson, +44
(0)20 7337 8815 or miranda@
highfinancegroup.co.uk
www.theactuary.com
13
26/6/12 08:14:31
News
Industry
[email protected]
Noughties’ steep rise in older workers
likely to accelerate in coming years
The number of people working beyond the state pension
age almost doubled between 1993 and 2011, according to
figures published by the Office for National Statistics.
In 1993, the number of ‘older workers’ was 753,000, but by 2011 this
had increased to 1.4 million, with a particularly steep rise after 2000.
The increase was largely mirrored by a rise in the proportion of the
older population in employment – up from 7.6% in 1993 to 12% in 2011.
Two-thirds (66%) of people working past the state pension age in the
last quarter of 2011 were working part-time, compared with just 25%
of those under state pension age. Older workers were also more likely
to be self-employed – 32% of the older workforce was registered selfemployed, compared with 13% of people under the state pension age.
Tom McPhail, head of pensions research at Hargreaves Lansdown,
said the trend was likely to accelerate in the next few years. “It presents
a significant challenge to individuals and employers, who will need to
accommodate flexible working patterns and later retirement,” he added.
For more on this story, visit bit.ly/KUvXFt
Solvency II will allow insurers to
contribute to growth, says Barnier
European commissioner believes new rules will make
it easier for the industry to invest in the infrastructure
projects needed for Europe to return to economic growth.
Michel Barnier, European commissioner for the internal market and
services, said that, by removing absolute limits on the amounts that
can be invested in certain categories, Solvency II would give insurers
“greater freedom” to decide where they invest.
The capital requirements placed on insurers under the new rules
would be reduced for those who diversify their asset portfolios, he said.
Under Solvency II, insurers offering policies with long-term
guarantees will face a lower capital requirement if they invest in very
long maturity bonds, rather than in short-term bonds.
“A very long-term investment of this kind could be used, for example,
to fund infrastructure projects and thereby create growth,” he said.
Thus, Solvency II allows asset-liability management, which is inherent
to the insurance profession, to benefit the real economy.
For more on this story, visit bit.ly/NhKACy
MORE BREAKING NEWS ONLINE
Visit www.theactuary.com for breaking news
and to register for weekly news alerts
Sourcing the best
actuarial talent
14
PPF 7800 index:
record deficit
The combined deficit of
the UK’s defined benefit
(DB) pension schemes
increased to an estimated
£312.1bn at the end of May
2012, the highest since
records began in 2003.
Figures published by
the Pension Protection
Fund revealed a 44%
increase last month in the
aggregate deficit of the DB
schemes that are eligible
for PPF protection – the
PPF 7800 index.
bit.ly/KBj0tSl
EIOPA seeks
views on IORP
The European Insurance
and Occupational
Pensions Authority
(EIOPA) has launched
a consultation on the
quantitative impact study
that will inform its final
recommendations for
reform of the Institutions
for Occupational
Retirement Provision
(IORP) directive.
bit.ly/Mvslay
Reporting rule
changes costly
Proposals to simplify
financial reporting
rules could involve
“considerable expense” for
UK pension schemes, as it
will treat them like banks
and insurers, the National
Association of Pension
Funds (NAPF) has warned.
bit.ly/Lw72Sc
Contact
Pension gender gap
‘shrinking but significant’
Women retiring this year expect their annual
retirement income to be a third lower than
that of men, according to research published
by Prudential.
The insurance company’s Class of 2012
study found that the average woman retiring
this year expects an annual income of £12,250
in retirement, including private, company and
state pension. This compares with £18,000 for
men – giving a gender gap of £5,750.
Last year, the difference was £6,500. It has
narrowed steadily since Prudential first
measured a gender gap of £6,642 in 2009.
Vince Smith-Hughes, Prudential’s
retirement income expert, said: “Not only
does the gap remain stubbornly wide, but
anticipated retirement incomes have this year
hit a five-year low for both men and women.”
For more on this story, visit bit.ly/LsJCmb
OECD calls for compulsory
pension membership
Governments should consider making private
pension membership compulsory and linking
retirement ages to increasing life expectancy
to make national pension systems sustainable,
according to the Organisation for Economic
Co-operation and Development (OECD).
During the next 50 years, life expectancy
at birth in developed economies is expected
to increase by more than seven years, and
increases in retirement ages are under way or
planned in 28 out of the 34 OECD countries.
But the organisation’s Pensions Outlook 2012
found that these increases were only expected
to keep pace with improved life expectancy
in six countries for men and in 10 countries
for women.
A formal link between retirement ages and
life expectancy would help to ensure pension
systems are both affordable and adequate, the
OECD said.
For more on this story, visit bit.ly/KPsZC2
Parvinder Matharu
Newton Recruitment
t
e
+44(0)1689 862937
[email protected]
w
www.newtonrecruitment.com
www.theactuary.com
p14_ind_news_july_FINAL•CT.indd 14
26/6/12 10:44:16
›
GENERAL INSURANCE
NEWS ROUND-UP
Uncertainty expected to delay
Solvency II implementations
Deloitte has highlighted a significant increase (from 24% in 2011 to 37%
this year) in the proportion of insurers that fear the industry will fail to
meet the deadline for Solvency II compliance. The news emerged in the
company’s report on its annual Solvency II survey, conducted by the
Economist Intelligence Unit.
The rise reflects ongoing uncertainty over the detailed requirements
for Solvency II. These are unlikely to be clarified until closer to the
implementation date, thereby reducing preparation time. In addition,
73% of respondents said implementation setbacks had hit budgets, with
42% claiming that Solvency II delays had increased the costs of their
preparations by more than 5% – this cost increase particularly affected
general, rather than life, insurers.
In relation to the impact on business, a significant proportion (36%)
of general insurers plan to reprice their products in the run-up to
Solvency II, the report claimed. This is almost double the proportion
(19%) that had such plans in the 2011 survey. Deloitte also discovered
that there has been a big fall in the number of insurers that plan to
restructure their business – from 47% in 2011 to 23% this year.
The reason for the increase in repricing plans was that following
an analysis of the risks they underwrite and a review of the amount
of capital they need to write these risks under the new regime,
insurers felt the need to adjust their pricing accordingly, a Deloitte
spokesman indicated.
Other indications from the report included some companies
considering the possibility of acquiring books of business, withdrawing
from some parts of the market and/or increasing their use of
reinsurance in light of the introduction of Solvency II.
On 16 May, in light of concerns as to whether the current timetable
for finalising the Omnibus II Directive will be met, the European
Commission put forward a short directive to change the current
implementation date of 1 November 2012 in the Solvency II Directive.
The date for transposition by Member States is now proposed as 30 June
2013, with implementation of the new regime from 1 January 2014.
The text is subject to approval by the European Parliament and
European Council under the procedure for emergency legislation.
The short directive is expected to be adopted either before the summer
recess or early in the third quarter of 2012.
REUTERS/GETTY
Lloyd’s to diversify as it exploits
emerging market opportunities
Lloyd’s new chairman, John Nelson, has announced that the market
wants to expand its business further in emerging markets to capitalise
on an era when vast business opportunities will emerge.
In a speech in May to launch the market’s new growth strategy
(Vision 2025), Nelson highlighted, in particular, potential for growth in
south-east Asia, China, eastern Europe and Latin America. To support
this growth, he said Lloyd’s wanted its capital base to become more
diversified, with a greater contribution coming from the high-quality
insurers in those growth countries.
Nelson said that Lloyd’s expected its members’ income from
premiums in developed markets to track, or slightly exceed, increases
in gross domestic product (GDP) by region, whereas in emerging
markets, growth could be expected to exceed GDP as the specialist
risk sector developed.
He added that he wanted the UK government to do away with its
so-called ‘light touch approach’ to regulation of the financial services
industry, and instead install “firm, tough and prudential regulation”.
LARGE LOSSES
Earthquakes in northern Italy
– 20 and 29 May
€5bn
Early estimate of economic
damage from earthquakes
in northern Italy
The first of these quakes was of magnitude 6.0
on the Richter scale, with an epicentre 36km
north of Bologna, and resulted in seven deaths
and many injuries. This was followed by a series
of aftershocks. The second main quake, with its
epicentre north of Modena in the same region,
was of magnitude 5.8 and caused at least a
further 19 deaths and numerous injuries, some
of them life-threatening. This was also followed
by aftershocks. Various business premises
were destroyed, historic buildings were severely
damaged and around 20,000 people lost their
homes. Economic damages have been estimated
at around €5bn (£4.03bn), but could be higher as
tremors continue to shake buildings in the area,
preventing any resumption of reconstruction
work. The modelling agency EQUECAT made
an early estimate of insured losses at between
€300m (£240.7m) and €700m (£561.7m), the
majority of it arising from the second main quake.
Air crash, Lagos, Nigeria
– 3 June
US$1.4m
Total that families of crew
members killed in Lagos air
crash are likely to receive
The crash involved a Dana Air McDonnell
Douglas MD-83 aircraft en route from Abuja,
the capital of Nigeria, to Lagos, which crashed
in flames into a printing works and residential
buildings 11 miles short of Lagos airport. As well
as the loss of all the 153 passengers and crew
onboard, there were casualties – believed to
include six deaths – on the ground. This is the
fourth crash in Nigeria in the past decade in which
more than 100 people have been killed. Initial
investigation suggests two engines failed before
the crash. Three weeks earlier, a similar Dana Air
plane – possibly the same one – had developed
a technical problem and was forced to make
an emergency landing in Lagos. Dana Air is an
Indian-owned airline that operates MD-83s out of
the airport in Lagos to cities around Nigeria – its
insurance is in the London market. A spokesman
for the insurers confirmed each of the victims’
families would receive initial compensation of
US$30,000 (£19,292), increasing to US$100,000
(£63,880) once all formalities had been
completed, in line with aviation law. The families
of the eight crew members are likely to receive a
total of US$1.4m (£894,034). All Dana Air flights
have been suspended by the Nigerian aviation
authorities, pending investigations into the crash.
No information on the likely hull loss is to hand.
MORE GI NEWS ONLINE
For further GI news,
visit www.theactuary.com/news/
www.theactuary.com
p15_ind_gen_news_july_FINAL•CT.indd Sec1:15
26/6/12 10:14:28
News
People & Society
If you have any newsworthy items for
these pages please email
[email protected]
Keep on running…
Charity has always been central to the
work of the Worshipful Company of
Actuaries. Despite lacking a historic
endowment, the Company’s Charitable
Trust raises £140,000 per annum for good
causes. Projects include funding a Royal
Society Fellowship to research the way
mathematics is taught in our schools.
Many grants are made to smaller
charities where, to use the Trust’s unofficial
motto, it is hoped they will ‘make a
difference’. Following a strategic review,
the trustees plan to make bigger awards
to fewer charities and to favour those
involving a Liveryman, who can provide
feedback on the impact of the support.
One such charity is Swindon ReStore.
Following his retirement from pensions
work, Liveryman Mike Thomas became
a trustee of ReStore’s parent charity,
Swindon Christian Community Projects,
which also runs the Swindon Foodbank.
ReStore has established a community
centre in a deprived area of Swindon.
It seeks to ‘restore’ people, including longterm unemployed individuals, ex-offenders
and young people not in education,
employment or training (NEETs), by
offering unpaid work experience.
These volunteers repair furniture and
household goods in a workshop that was
equipped by the Livery Company and run
a shop, where the furniture is sold.
The Livery Company is keen to involve
the wider actuarial community. In 2009,
Past Master Adrian Waddingham got
over 100 actuaries to cycle in the Stroke
Association’s Thames Bridges Bike Ride,
raising some £50,000. Senior Warden
Charles Cowling also hopes that more
actuaries who are not Liverymen will
participate in fundraising events.
For more information about the Company,
visit www.actuariescompany.co.uk/
See www.swindonfoodbank.co.uk for
details of ReStore and the Foodbank.
Gardner-2012
You can follow his progress at www.
jamesgardner2012challenge.blogspot.
co.uk/ or email him at james.gardner@
mercer.com
ISTOCK
All
for
a
great
cause
By Mike Thomas
Mercer’s James Gardner is planning to
set a personal record by running 12 halfmarathons in 12 months during 2012 –
one every month. He is raising money for
Cancer Research UK, a charity close to his
heart as his grandmother died from the
disease a few years ago.
James has so far raised over £1,100,
after just five of the 12 races, and would
love to get this up to £2,000. He has run
a total of 517 miles and set a personal
best at the Leeds half-marathon in May,
completing the course in 1:21:19. James is
hoping that with even more training he
can reduce this to under 80 minutes by
the end of the year. He has also raced at
Preston, Brighton, Silverstone and Madrid
and, by the time this page goes to print,
will also have raced at Lanzarote.
Raising as much money for the charity
as possible means a lot to James, so
any donations towards this great cause
would be much appreciated. You can
donate by texting ‘JGHM £?’ to 70070 or
online at www.justgiving.com/James-
SHORTS
Actuaries hungry for golfing victory
22 members of the Worshipful
Company of Actuaries Golfing Society
and their spouses visited Sandwich,
the prestigious golfing mecca on the
east Kent coast, for two days of testing
links golf, and were fortunately blessed
with mostly dry and clement weather.
On Monday 30 April, an 18-hole team
event was played on Prince’s Golf Club,
an Open qualifying course. The event
was won by the team of Graham Clay,
16
Rosemary Derby, Debbie Felton
and Fraser Low, with runners-up
Alan Botterill, Pamela Hudson,
Margaret Ross and Gordon Sharp.
May Day was celebrated by
tackling last year’s Open course of
Royal St George’s and the team prize
went to Jane Bennett, Graham Clay
and Peter Felton, with runners-up
Rosemary Derby, Tom Ross and
Gordon Sharp.
www.theactuary.com
p16_17_society_news_july_FINAL•CT.indd 16
26/6/12 08:21:43
Like The Actuary on Facebook
Follow @TheActuaryMag on Twitter
Join The Actuary’s LinkedIn group
Obituary
Michael Alan Pickford
Died 4 June 2012, aged 74.
Why walk when you can run, row, cycle or hike?
Simon Barker took part in 32 sporting events during 2011, including 3 Ironman
competitions, 2 marathons, 4 half-marathons, and the Henley Royal Regatta Thames
Challenge Cup. Most notably, he completed the Trip to Remember, cycling from Dublin
to Arklow then rowing from Ireland to Wales, before hiking up Snowdon – all within
33 hours. Simon also rowed in a six-man gig from Broadstairs in Kent to Richmond
Lock, covering 89 nautical miles in 19 hours.
Fellowship Club’s last supper
By John Harsant
The final dinner of the Fellowship Club
was held on 28 May at the Innholder’s
Hall, its home for many years.
The president of the club, Steve Wood,
presided and the guest of honour was
Tim Birse. The hall was filled with
members and their guests, who shared
an outstanding evening that will be
long remembered.
In his address, Birse referred to
the changing circumstances of the
profession, which had greatly diminished
the need for dining clubs and resulted
in such low attendances at the normal
dinners as to make them unsustainable.
One consequence was the merger of the
Phiatus club with the Fellowship Club
and now the merger of the Fellowship
Club with the Gallio Club. Despite this,
attendance at the evening’s event showed
that there is still a need, albeit a different
one, which will hopefully be met in
the future.
All members of the Fellowship Club,
which includes those transferred from
the Phiatus Club, automatically become
members of the Gallio Club.
On a personal note, my role as secretary
will now cease. I greatly enjoyed this post
and would like to thank all concerned.
We would be delighted to hear from you if you have any newsworthy items for
these pages. Please contact Yvonne Wan at [email protected]
Births
Jean-Paul Shipley (Munich Re) and
wife Carol are pleased to announce the
birth of their third child, Benedict David
(pictured left), on 18 May. Benedict was
a slightly late 30th birthday present,
born eight days after Carol’s birthday.
Last month’s actuary of the future, Gareth Evison (JLT), and fiancée Issy
are pleased to announce the birth of their daughter, Scarlett Amelia
(pictured right), on 13 May, weighing 6lb 8oz. Scarlett is the couple’s
second child and is a little sister to Sophia.
Michael Pickford had a long and
distinguished career in the Government
Actuary’s Department (GAD). He began his
career training as an actuary in 1958 and in
May 1970 qualified as a Fellow of the Institute
of Actuaries (FIA).
During his tenure at GAD, he progressed
from actuary to chief actuary and was
promoted to directing actuary in early 1989.
Pickford’s work was principally in the field
of insurance industry regulation. He was
appointed deputy government actuary –
insurance supervision in April 1989, having
responsibility for GAD’s advice to insurance
supervisors in the UK and internationallyy up
p
to his retirement
nt
in 1995.
He was active
ve
in the Institute
of Actuaries,
being a member
er
of the Council
from 1990 until
1995. Other
committees
included the
European joint
committee
and the life
assurance jointt
committee,
and he was
chair of the General
Board
neral Insurance B
Boa
rd
d in
in
the 1994-1995 session. He was part of the
team that led the first actuarial convention
in Birmingham in 1985 and contributed to
a number of papers and presentations on
actuarial matters in the field of insurance.
Pickford was made a Companion of the
Order of the Bath in the Queen’s Birthday
Honours in 1994. He became a Freeman of
the City of London in May 1995.
Born in Headington, Oxford, on 22 August
1937, Pickford attended the City of Oxford
School for Boys. He then joined the RAF from
1956 until 1958.
Pickford has always been interested in
travel, and in retirement this became a major
part of his life, with trips to the Caribbean,
Middle East and Far East.
In August 2011, Pickford was diagnosed
with oesophageal cancer. He died at Bishops
Wood, Mount Vernon Hospital, Northwood.
His colleagues remember him as a
dedicated professional with a sense of
humour, helpful and very caring.
He is survived by Eric Herman, his partner
of 47 years.
Other Deaths
Peter Duncan ESSLEMONT died on 4 May
2012, aged 77. He became a Fellow of the
Institute in 1961.
Ian Gordon MCLACHLAN died on
18 February 2012. He became a Fellow of
the Faculty in 1970.
www.theactuary.com
p16_17_society_news_july_FINAL•CT.indd 17
25/6/12 08:31:34
Modelling
Quantitative easing
[email protected]
Paul Shelley considers the effect of current economic conditions on
managing pension funds and how actuaries can play a vital role in
promoting understanding of the issues involved
18
GETTY
Getting the
message across
on l w gilt yields
www.theactuary.com
p18_20_quant_easing_FINAL•CT.indd 18
22/6/12 17:13:45
Paul Shelley is policy
manager at the Institute
and Faculty of Actuaries
›
PAUL SHELLEY
“There will undoubtedly be difficult
discussions between trustees and
sponsoring employers”
Historically low gilt yields are causing
● Demand from pension funds ‘de-risking’
problems for actuaries and their clients.
People within the profession might wonder
if there is more they could do to help not
only their corporate clients but also others
understand the impact of today’s markets
on the difficult decisions that will need to
be made.
When Bill Galvin, chief executive at the
Pensions Regulator, introduced the annual
funding statement in April 2012, he observed:
“There are a number of economic factors
impacting gilt yields, such as quantitative
easing (QE) and demands for UK sovereign
debt from the international banking sector.
Yields have fallen in the past nine months,
and it is unclear when, and to what extent,
there will be a market correction. The net
effect across defined-benefit schemes is not
uniform, and will vary greatly depending
upon the extent to which their riskmanagement, investment and contribution
strategies have insulated them.”
But the low-interest climate has an impact
on actuaries working in all fields, not just
those supporting defined-benefit pension
schemes. This article considers factors
affecting gilt yields, including QE, and looks
at which aspects of actuaries’ work are
affected and how public perception of
actuaries might be influenced by the
changing markets.
The UK is one of several governments
worldwide that is using QE as a tool to boost
the economy. While QE means the Bank of
England has built up a sizable portfolio of
gilts, the size of the government’s deficit
means it has been able to do this without
reducing the volumes of gilts in private hands
(see Figure 1 overleaf).
Coincident with QE, there has been a
considerable drop in the yields on gilts
(see Figure 2 overleaf).
QE is potentially affecting the gilt yield.
But, given the overall expansion in supply
even after allowing for QE, there must be
other factors driving demand and hence the
price of gilts. These include:
● Regulation, such as Solvency II, driving
demand from insurers.
● Banks holding a greater proportion of assets
in gilts to manage liquidity and capital.
● Demand from foreign buyers swapping
peripheral eurozone debt for what they believe
to be more secure UK government debt.
their investment strategies.
One of the biggest unanswered questions is
how, and over what time span, these positions
will unwind. In particular, will foreign buyers
unwind their positions if the eurozone
stabilises? And how and when will the Bank
of England unwind its position?
The problems of low gilt yields
Funding calculations that are performed on a
market-consistent basis – building up from a
‘gilts-plus’ derivation of the discount rates –
will in most cases have seen significant falls
in funding levels. To illustrate this, Aon
Hewitt’s pension risk tracker shows the
discontinuance funding level of the pension
schemes of FTSE 350 companies dropping
from 69% to 56% in the 12 months to February
2012, having hit low points of 52% in October
and November 2011.
This pattern reflects the fact that while asset
prices have risen, most schemes with a
diversified portfolio of assets have not seen
asset values increase at the same rate as the cost
of providing pensions (based on gilt yields).
If companies had run schemes as a going
concern, so taking a matching approach and
looking at the extent to which future asset
returns could meet the payments due,
funding levels might not have fallen by as
much. Even though gilt yields have fallen, the
overall yield available on portfolios would not
have fallen by as much, so greater credit
could be taken for future investment returns
in excess of the gilt yield.
In its annual funding statement, the
Pensions Regulator says: “It is the regulator’s
view that the majority of schemes and
employers will be able to manage their
deficits within current plans. The regulator
views any increase in the asset
outperformance assumed in the discount rate
to reflect perceived market conditions as an
increase in the reliance on the employer’s
covenant. Therefore, we will expect trustees
to have examined the additional risk
implications for members and be convinced
that the employer could realistically support
any higher level of contributions required if
the actual investment return falls short of
that assumed.”
The actuary will need to take a holistic
approach to all the risks, including the interplay
between investment risk and the covenant risk.
There will undoubtedly be difficult discussions
between trustees and sponsoring employers,
and actuaries are key to promoting
understanding of the issues involved.
Pension schemes will need to consider
whether now is an appropriate time to be
buying, holding or selling gilts versus other
investments. While gilts look overvalued by
historic standards, high levels of
indebtedness, together with low growth
prospects, make returns from other asset
classes look equally uncertain. In practice,
there have not been any high-profile
restructurings of asset portfolios away from
gilts towards higher-yielding assets.
A pure investment decision might be
compromised if:
● The scheme embarks upon a long-term
de-risking strategy that will involve
ultimately holding gilts and other lower-risk
investments. Selling gilts is contrary to this
long-term aspiration – and would require a
strong covenant of the sponsor.
● Trustees believe future European legislation
may force you to hold more gilts, and it will
be difficult to buy the gilts in future.
Ramifications for individuals
If buying gilts today is doing so at the top of
the market, this is true whether it is done
explicitly or implicitly as a result of buying
products where the pricing depends on
gilt yields.
As well as being about managing longevity
risk, the decision on when to convert a
pension pot into an annuity is an investment
decision, although it is rarely presented as
such. The three options available to someone
with a pot of assets built up from money
purchase contributions are to: convert a
pension pot into an annuity, use drawdown
facilities to take income from an accumulated
pot, or defer retiring.
More people are opting to defer retirement,
as is shown in the Pensions Policy Institute’s
paper ‘Retirement Income and Assets: The
Implications for Retirement Income of
Government Policies to Extend Working Lives’.
It is unclear to people how much longer they
will need to work to bring their retirement
incomes up to the levels they anticipated in the
recent past when annuity rates were higher.
There are other investment strategies, such
as life-styling and auto switching, that actuaries
have been instrumental in designing. ☛
www.theactuary.com
19
22/6/12 17:13:54
Figure 1: Quantitative
easing and the effect
on gilt supply
1000%
Quantity in issue (£bn)
☛ These implicitly move customers out of
equity and property investments and into gilts
and fixed-interest investments.
Many funds that have been invested in gilts
over the past year will have shown good
returns. There is a risk of mis-selling where
customers believe there is potential for
similar returns over the coming years. Secure/
safer and income funds are likely to have a
particularly high proportion of gilts, so are
susceptible to this form of mis-selling, given
people’s desire for both income and security.
Statutory money purchase illustrations
show potential retirement benefits and are
sent to members of defined-contribution
pension schemes each year. The basis is set
by the Board of Actuarial Standards. One of
the critical assumptions is the annuity rate
used to convert projected benefits into a
regular income. This is derived from the yield
on index-linked gilts on 15 February and a
specified mortality table. The drop in
index-linked gilt yields between 15 February
2011 and 15 February 2012 was 0.92%, which
on its own might take 15% off annuity rates
used. To compound matters, this year’s
projections will also need to reflect changes
to the mortality assumptions to take greater
Figure 2: What has
happened to
nominal yields?
Bought back via
quantative easing
10%
BoE base rate
15 year gilt (spot)
15 year swap (spot)
8%
750%
6%
500%
Conventional
250%
4%
2%
Index linked
0%
1980 1985
1990
1995
2000
2005
2010
Souce: Bank of England
account of future mortality improvements.
Towers Watson has suggested that the
combined effect could be a drop in annuity
rates and projected retirement incomes of
30% between figures issued to the same
individual between this year and last year.
From November 2012, up to eight million
employees will be auto-enrolled into pension
saving. The vast majority of these will be
investing in default funds that have a high gilt
content. There is a potential mis-selling risk
0%
1995
2000
2005
2010
Souce: Bank of England
here for the future, if individuals
subsequently believe they have been invested
into gilts at the top of the market.
In addition, actuaries are actively engaged
in advising their pension fund and life
assurance clients on the implications of the
current gilt yields.
I suspect that most actuaries will feel many
of the points made here are blindingly
obvious. But for most individuals outside the
profession, they are anything but. a
Don’t let the numbers
puzzle you. Fill in the
gaps with ReMetrica.
Aon Benfield helps its clients progress from
pillar to pillar with its Solvency II focused
version 5 of ReMetrica.
ReMetrica continues to evolve to enable
actuaries to enhance their internal models under
Solvency II. Using ReMetrica, our clients are able
to deliver an Own Risk and Solvency Assessment
that solves business puzzles and generates a
return on their Solvency II investment.
For a demo, visit:
www.aonbenfield.com/remetrica_demo
aonbenfield.com/empower
20
THE ACTUARY • JULY 2012
www.theactuary.com
22/6/12 17:14:03
SIAS
Events
TUESDAY 17 JULY
PROGRAMME EVENT
Dimension reduction techniques
and forecasting interest rates
Techniques such as principal component analysis are widely used by actuaries, perhaps most
frequently in the modelling of interest rate term structures. But are they fully understood?
This talk will:
● Give an overview of the various methods available and their possible uses.
● Highlight the relative importance of the many assumptions and choices to be made by
the modeller.
● Discuss how the assets and liabilities of a business should be considered when constructing an
interest rate model.
● Place such issues in the context of a Solvency II internal model, touching on issues relating to
curve fitting and tail behaviour.
Shaun Lazzari (Deloitte)
Staple Inn,
High Holborn,
London WC1V 7QJ
5.30pm for 6pm start
There is no need to register in advance for this event. Following the meeting, there will be
refreshments at a nearby pub.
FRIDAY 27 JULY
SOCIAL EVENT
SIAS boat party
All aboard The Golden Jubilee for the biggest party of the summer! What better occasion for a spot
of patriotism, with the Diamond Jubilee, Euro 2012 and the Olympics all taking place this summer?
Hence the theme, which is red, white and blue.
The Golden Jubilee,
Temple Pier,
Victoria Embankment,
London WC2R 2PN
6.30pm for 7.15pm prompt departure
The party begins at 6.30pm at Temple Pier. Be sure to be on time, as the boat will leave promptly at
7.15pm and will return to Temple Pier at 10.45pm.
Once aboard, you will be greeted by a welcome drink to gear you up for a night packed with
entertainment. An abundance of refreshments will be available to replenish you throughout the
night. A prize will also be awarded to the night’s best dressed reveller, so get your creative caps on.
All are welcome – so invitations are extended to friends and colleagues for a great night out.
Please register interest at [email protected]
SATURDAY 25 AUGUST
SOCIAL EVENT
SIAS five-a-side football
Details to follow.
Location: TBC
Please reserve your team a place at
[email protected]
12pm
AUGUST/SEPTEMBER
PROGRAMME EVENT
Please note there are no talks in August or September, because of the Olympic and
Paralympic Games.
ISTOCK
We wish you all a happy, sporty summer!
MORE EVENTS ONLINE
For details of events, visit
www.sias.org.uk
SIAS IS NOW ON TWITTER!
Follow us on @SIAScommittee for our latest
news on meetings, socials and more!
www.theactuary.com
p21_SIAS_events_july_FINAL•CT.indd 21
21
25/6/12 11:03:52
Pensions
Inflation measure
[email protected]
Recent changes to UK price indices mean
that actuaries need to take a long hard look
at the assumptions they make regarding
future inflation and real returns. The
consumer price index (CPI) has increased in
importance for pension indexation as
opposed to the retail price index (RPI), and
this has already meant that actuaries have
had to become more specific about what they
mean by inflation and inflation-adjusted
investment returns.
The effect of changes to price collection
methodology means that it is also necessary
to consider how the actual level of inflation
measured may have altered, and the impact
this has on expected real returns. Further
changes are expected in the future, so this
topic will not go away.
There is more than one way to measure
inflation. Several conceptual methods exist,
with the optimal choice depending on the use
to which the index will be put. Furthermore,
changes that are made through time mean
that a single index may have different
characteristics at different times.
In 2010, a significant change was made to
how the prices for clothing and footwear were
collected in the UK. It is widely accepted that
this has increased the difference between CPI
and RPI, and it has also been suggested that
the actual rate of price inflation measured
using both indices will now be higher than it
would have been using the previous method.
This may mean that achieving returns in
excess of these inflation measures could be
harder in future than it was in the past.
Price indices
In the UK, two headline price indices are
widely used as measures of inflation: CPI and
RPI. Both track the cost of a fixed basket of
goods and services. But they differ in their
coverage and population base, and the way in
which individual price quotes are combined.
At the first stage of price aggregation, CPI
mainly uses geometric means but also some
arithmetic means, whereas RPI uses two
forms of arithmetic means.
A geometric mean is always lower than
either of these arithmetic means, and this
‘formula effect’ results in a lower CPI
increase. Historically, annual CPI inflation
has averaged around 0.7% less than RPI
inflation; the main contributors to this are the
formula effect discussed above and the
inclusion of housing costs and mortgage
interest payments in RPI but not in CPI –
although the effect of this can fluctuate.
At the start of 2010, changes were made to
how the prices of clothing and footwear were
22
Colin Wilson and Chris Bull explain why actuaries
should be aware of the differences between the retail
price index and the consumer price index
Both CPI and RPI track the cost of a fixed basket of goods, but there are differences between them
www.theactuary.com
p22_23_july_inflation_FINAL•CT.indd 22
26/6/12 08:15:47
Colin Wilson (right) is technical
director and head of investment
and risk and Chris Bull (far right)
is an actuary in the investment and
risk team, both at the Government
Actuary’s Department
Figure 1: Clothing inflation rates in the CPI and RPI
Jan 2001- Jan 2012
15%
Difference
10%
CPI Clothing Annual Rate
RPI Clothing Annual Rate
% Change
5%
0%
-5%
-10%
-15%
J M S J M S J M SJ M S J M S J M S J M S J M S J M S J M S J M S
GETTY / SHUTTERSTOCK
2001
2002
2003
2004
2005
collected. This aimed to increase the sample
size each month, better reflect consumer
spending patterns and increase the number
of price quotes in the calculation of the base
period index. These changes appear to have
increased the dispersion in price changes
collected, increasing the difference between
the arithmetic and geometric means and
increasing the formula effect significantly.
Before 2010, the formula effect made a
relatively stable contribution to the difference
between RPI and CPI of about 0.5% a year;
however, since 2010 it has averaged 0.9% a
year to the end of 2011 (see chart). The
increase in the formula effect was widely
noted. Less attention appears to have been
given to whether the changes in price
collection methods altered the actual level of
inflation measured.
The Bank of England has suggested that
the way clothing price data was gathered in
the past probably made inflation appear
lower than it really was. This is because it is
likely that previous practices led to seasonal
falls in prices – such as in sales – being
captured but not the subsequent recovery in
prices when sales ended.
By assuming that UK CPI clothing prices
were broadly in line with imported prices and
euro-area prices, the Bank of England
estimated that annual CPI inflation may have
been underestimated by up to 0.3% a year
2006
2007
2008
2009
2010
2011
between 1997 and 2009. Part of the fall in UK
CPI clothing prices may have been the result
of retailers substituting cheaper imported
goods for more expensive domestically
produced goods. An assumption that annual
CPI inflation was underestimated by 0.2% a
year may therefore be reasonable.
If the increase in the formula effect is
entirely because of the change in price
collection methods, then annual RPI inflation
will have been underestimated by a further
0.4% a year, so in total it could have been
underestimated by around 0.6% a year in the
past, relative to what it would have been if the
new methodology had been in place.
It is clear that the change in price collection
methods in 2010 has substantially changed
the measurement of inflation. Actuaries often
use gilt or swap implied inflation as a starting
point for making inflation assumptions.
In this case, a change in how inflation is
measured may not directly affect how
assumptions are set, as it will be assumed
that changes in expectations will already be
priced in by the market. Also, the Bank of
England’s target of annual CPI inflation of 2%
remains an anchor for inflation expectations.
Even if assumptions about the level of
future inflation remain unchanged, thought
needs to be given to other assumptions,
where these are expressed as an amount in
excess of an index.
With, as yet, no liquid market in CPI
instruments, many institutions continue to
hedge CPI liabilities using RPI-linked gilts or
swaps. For those doing so, it is important to
understand the differences between the
measures. An increase in the expected
difference between the two indices may mean
that liabilities become over-hedged.
As salary inflation is often assumed to be
linked to price inflation, it is common to use a
salary inflation assumption that is expressed
relative to price inflation. But then one must
consider whether price inflation measured in
the past is consistent with how it will be
measured in the future. If historic price
inflation has been underestimated, then this
will lead to an overestimation of the amount
by which average earnings have exceeded
prices by an equivalent amount. One
therefore needs to take care in how historic
data is used when setting assumptions about
the future. If real asset return assumptions
are also derived in this way, then one will
encounter the same problem.
Problems in measuring inflation are not
confined to the UK. When using international
data, for example to produce a global equity
real return, you need to consider whether
indices are comparable. The introduction of
harmonised indices of consumer prices
(HICPs), of which the UK CPI is one, into the
EU has dramatically increased the degree of
comparability. However, differences remain.
For example, there is some scope to use
methods other than geometric means for
price aggregation, and there are differences in
the latitude given in terms of the products for
which prices can be collected.
Looking forward
The development of indices does not stand
still. Starting with clothing prices, the
Office for National Statistics is working to
examine the causes of the formula effect and
determine how unjustifiable causes of this
effect can be removed. It is also looking at
the inclusion of owner-occupiers’ housing
costs into the CPI. Any changes are likely
to be implemented from early 2013.
The expected impact will depend on
the approaches adopted.
There will be other changes to the indices
before this date, such as how new car prices
are measured and the inclusion of vehicle
excise duty, television licences and trade
union subscriptions in the CPI. Not all these
can be expected to have as significant an
effect as the changes discussed here.
Nevertheless, the risks of further changes to
index characteristics should not be ignored. a
www.theactuary.com
p22_23_july_inflation_FINAL•CT.indd 23
26/6/12 08:16:00
Risk management
Reinsurance
[email protected]
LIVING
LEGACY
Dr Wilson Carswell looks at the
causal link between the untimely death
of Lawrence of Arabia and PPOs
DR WILSON CARSWELL
OBE, FRCS is medical
director, Moving
Minds Psychological
Management and
Rehabilitation Ltd
›
p24_25_PPOs_FINAL•CT.indd 24
A motorbike
accident caused
the death of
TE Lawrence
– better known
as Lawrence of
Arabia (right) –
and precipitated
the campaign
for riders to
wear helmets
Even to the well informed actuary, there is no
obvious connection between Lawrence of
Arabia and periodic payment orders (PPOs).
But there is a link, in my opinion, although an
obscure one. It is helmets.
In 1935, TE Lawrence was riding a
motorbike when he apparently swerved to
avoid other road users and was thrown off.
He suffered a serious brain injury and,
although provided with the best available
medical care, died in hospital just six days
later. During his fatal illness, the attending
doctor was a Hugh Cairns, who later became
a prominent neurosurgeon.
Cairns was struck by the fact that
Lawrence’s death was eminently preventable.
He subsequently started a campaign
advocating the use of protective helmets,
initially for military dispatch riders and later
also for civilian motorcyclists. This initiative
led to a noticeable drop in fatal head injuries
in both groups. The campaign resulted,
a mere 38 years later, in legislation requiring
all motorcyclists to wear helmets. Data
collected since then confirms the benefits of
this measure.
The value of helmets as a protection
against head injury has been known for
centuries. The earliest records of their use go
back to the helmeted ‘Sea Peoples’, who
invaded Pharonic Egypt more than three
millennia ago in the time of Rameses III.
Since then, soldiers have worn helmets as a
matter of course and contact sportsmen
26/6/12 08:16:34
“While finance has only limited answers to future
PPO costs, can preventive measures be of any use?”
readily adopted them. More
recently, their use has spread,
often by social diffusion and
without the force of law.
Helmets are now used on a
daily basis by a range of
groups ranging from toddlers
on tricycles to boys on bikes,
skiers on slopes and
Formula One drivers in Delhi.
The presumption is that helmet-wearing is
safer for the user, as it substantially reduces
the risk of serious brain damage in the event
of an accident.
A glaring exception to the groups of
vulnerable individuals potentially exposed to
serious brain injury, who use helmets as a
matter of course, is the everyday motorist. If
the average motorist were asked “Why don’t
you use a helmet when you drive a car?” their
answers might range from “It would look
silly” or “I’m only going to the supermarket”
to “I’m not a dangerous driver”. The chances
of having a serious head injury when driving
to the shops are slight. However, the
cumulative risk to motorists is present and
quantifiable. Should injury occur, it can have
disastrous long-term consequences.
The damage to a brain depends on the
energy transmitted to it at impact. This kinetic
energy is calculated by the formula: half the
mass multiplied by the velocity squared.
In any head injury, whether due to a
bicycle accident or a racing car collision,
the mass of the affected head is unchanged.
The difference in energy available to cause
brain damage thus depends only on the
square of the speed (velocity) at impact. If a
head injury occurs while travelling, a motorist
trundling along at 30 miles per hour will
receive more than twice the destructive
energy of a cyclist racing along at 20mph
(302 = 900 while 202 = 400, giving a ratio of 9:4).
ALAMY / SHUTTERSTOCK / CORBIS
Connections broken
In the event of an accident, the brains of a
car’s occupants are often liable to greater
damage than those of cyclists. The energy
transmitted to the brain tissues at the time of
the impact can have a permanent destructive
impact on future brain function. Delicate
microscopic neural connections are torn or
moved apart, never to return to their
pre-accident condition. Subsequent medical
or surgical intervention, however skilled or
timely, cannot always remedy this damage.
Preventive medicine is intrinsically less
exciting than acute medicine or surgery.
Whole bodies of doctors, supported by
learned societies and journals, describe the
minutiae of medical responses to trauma, but
there is much less interest in
preventing serious head
injuries. This focus on the
management of established
trauma is not limited to
medicine. A whole subindustry of accounting and legal
services is devoted to providing
and computing the permanent care of
a seriously brain-injured young person.
As for PPOs, these have a much more
recent genesis than helmets, coming into
being only with the Courts Act 2003. They
grew out of the climate of low interest rates
and, although still few, could grow massively
in the next decade or so. They are designed to
benefit severely disabled claimants who need
long-term care. In future, a significant
proportion of these benefits will probably be
awarded to the severely brain-injured.
PPOs have nothing to do with helmets
directly, being designed to help an injured
claimant receive guaranteed lifelong
compensation for his or her serious injuries.
By using PPOs, the cost of these total risks –
whether they are of the claimant’s longevity,
the risks of investment returns or the risks of
future inflation – have been effectively
transferred from the claimant to the insurer
and, in many cases, to the reinsurer. A recent
award decreed that it would cost £350,000 a
year to care for a seriously injured young
person, and this level of award may soon
become commonplace.
PPOs thus have unknown and
unquantifiable costs – an uncomfortable
concept for any actuary. Several clever
financial responses to these
financial challenges have
been suggested, including
the use of derivatives. But
these are, at best, only a
partial answer to the
possibly devastating
consequences of a wave of
PPOs eroding reinsurers in
years to come.
While finance has only
limited answers to future
PPO costs, can preventive
measures be of any use?
Timely investigations (scans
and MRIs) and treatment
(invasive brain surgery) can
reduce to some extent the
consequences of a severe brain injury. But
they cannot reverse the neurological damage
created at impact.
One way to anticipate, and thus prevent,
some of these brain-damaging events might be
to require all car occupants to routinely wear
helmets. This idea might seem ridiculous –
just as the idea that motor-cyclists should wear
helmets was thought to be in the 1930s, or that
car users should be legally obliged to wear
seat-belts was in the 1950s.
Organisations such as Headway and Reach
can testify to the devastating consequences of
severe (preventable) brain damage on the
clients on their books. The costs of
destructive personal, familial and social
damage far outweigh, and can’t adequately be
compensated by, the heavy financial costs
subsequently borne by insurers.
Estimating the current costs of severe head
injuries to insurers is not easy. Detailed
pathological data on non-fatal head injuries is
scattered and not readily accessible. The data
for fatal head injuries in road traffic accidents
(RTA) that might allow actuaries to make an
informed estimate of the extent of non-fatal
head injuries is likewise inaccessible.
It is also unclear what proportion of current
PPOs are associated principally with serious
brain damage. However, even if it were found
to be ‘only 10%’, it would still be worthwhile
trying to prevent that proportion – for
financial if for no other reasons.
Seat-belt signal
The high, and possibly unsustainable, costs of
PPOs may encourage reinsurers to push for
any useful intervention to reduce the future
costs of PPOs. In time, insurers and reinsurers
may advocate the routine use of helmets in
cars. A straw in the wind is Section E of the
Claims Notification Form (CNF2) in the RTA
portal for claims between £1,000 and
£10,000. The question is
asked “Was the claimant
wearing a seat-belt?” The
suggestion is that a
negative response implies
some personal liability.
Perhaps, in 38 years’ time,
similar forms will ask “Was
the claimant
wearing a helmet?”
The old advertising
slogan “Get ahead, get a
hat” associated hat-wearing
with social advancement. A
modern slogan might read
“Stay ahead, get a helmet”.
Will we one day see our
macho motoring icons
pictured wearing helmets while driving
ordinary cars in non-racing situations?
Actuaries, with their ability to analyse data,
could encourage reinsurers to bring this
change about. There is nothing like a
financial imperative for reinforcing change. a
www.theactuary.com
p24_25_PPOs_FINAL•CT.indd 25
25
26/6/12 08:16:45
On my agenda
[email protected]
ANGUS
MACDONALD
Sonal Shah discusses actuaries and academia
with the editor of the Annals of Actuarial Science
The profession’s international research
journal, the Annals of Actuarial Science, has
had a makeover. Now published by
Cambridge University Press, it has been
redesigned to improve readability and clarity.
Launched in 2006 and originally
self-published, the AAS is aiming to make its
presence known in a small field of
international academic journals. It has a new
editorial board and is seeking to improve
links between actuaries and academics.
Editor Angus Macdonald tells the Actuary
about his hopes and plans for the future.
What are the developments since publishing the
journal with Cambridge University Press (CUP)?
The most obvious change has been the new
format, designed to be in keeping with best
practice among academic journal publishers.
CUP has also been pro-active in improving
and increasing the marketing reach of the
AAS – for example, its inclusion in some of its
packages subscribed to by libraries.
What are the key future plans for the journal?
The long-term aim is for the AAS to be a
leading actuarial journal, with a broad range
of authors and readers worldwide. This will
require the AAS to be accepted into one of the
citation indices used as a yardstick by
universities and authors. Over time, I expect
the AAS to grow beyond two editions per year.
CHRIS WATT/UPN
Which topics are you hoping to cover?
26
The target will always be the most interesting
questions of the day. Just now, longevity,
solvency and enterprise risk management
are attracting the greatest interest.
How do you ensure quality and accuracy? Every
paper received is subject to peer-review by
relevant experts. The peer-reviewers advise
me on the originality and quality of the paper,
and make a recommendation on whether or
not to publish. Improvements often have to
be made before a paper can be published.
In what ways is the research utilised by actuaries
and how could it be more widely used? Actuarial
and financial research tends to be highly
applicable. A good example is mortality and
longevity research, which has strongly
influenced models used by life insurers and
pension funds. Another is stochastic models
for general insurance reserving. The focus of
the AAS is on applicable work, so the bigger
the readership, the more actuaries will be able
to find new approaches to help their work.
If resources were unlimited, what research
project would you pursue and why? I would be
interested in the lessons to be learned from
the securitisation of credit risk (CDOs and
CDSs) to avoid problems arising from the
securitisation of mortality risk, should that
ever take off in the capital markets.
What impact could the application of the
research have on wider society?
Securitisation played a significant role in the
current crisis, although it was only one part of
the story. Avoiding anything similar happening
if mortality risk is securitised in a big way
“The image of academic
life as leisurely is a
complete myth”
www.theactuary.com
p26_27_Q&A _july_FINAL•CT.indd 26
26/6/12 08:17:09
›
CURRICULUM VITAE
Angus Macdonald graduated
in mathematics from Glasgow
University. He joined Scottish
Amicable Life Assurance Society
and qualified as a Fellow of
the Faculty of Actuaries (FFA)
in 1984.
In 1989, he moved to Heriot-Watt
University, obtaining a PhD
in 1995 and being appointed
professor in 2000. He also
served on the Faculty Council
from 1998 to 2007. In 1999, he set
up the Genetics and Insurance
Research Centre.
He was elected Fellow of the
Royal Society of Edinburgh in
2006, became editor of the
Annals of Actuarial Science
in 2008 and was awarded the
Finlaison Medal by the profession
in 2011.
would certainly be of great impact. However,
it would be hard to measure because success
would mean something not happening!
Describe the focus and involvement of the
international editorial board. The editorial
board has been recently appointed, and
includes distinguished actuaries from all over
the world and all actuarial traditions.
I consult them on both individual questions,
such as selecting peer-reviewers for particular
papers, and on broader questions, such as
increasing the impact of the AAS. I hope they
may influence leading authors to choose the
AAS as a journal of choice for their work.
Does globalisation increase opportunities to work
with other professions? The actuarial profession
is already global in scope, partly because
mathematics crosses national boundaries. But
there are opportunities to collaborate with
other professions and disciplines. Take the
new chartered enterprise risk actuary (CERA)
qualification. Risk management is emerging as
a new profession, and actuaries should
contribute through research in the AAS and in
other ways.
What makes a successful research paper?
It should be about a real problem and make a
worthwhile step towards a solution that will
potentially advance practice. And it must be
readable; even scientific articles have to tell a
story. Some of the best and most useful
papers are reviews by experts surveying the
state of the art in a broad area of interest.
Are actuaries sufficiently engaged with
academia? The amount of engagement varies
across the world, partly because of different
traditions in the education of actuaries. In my
time at Heriot-Watt, I have seen a great
increase in the interaction between academia
and the profession, which is very welcome.
Of course, we can always do more.
What advice would you offer an actuary looking
to move from financial services to academia?
Be absolutely sure that you are doing it for the
right reasons – because you have a passion for
research and education. The image of
academic life as leisurely is a complete myth.
What has been your greatest professional
challenge? Probably the early years of my
research on genetics and insurance. It was a
completely open field and a great opportunity
to be the first to achieve something, but also
rather scary as I had to commit all my
research time without knowing whether any
useful models or answers would be found. a
The Annals of Actuarial Science is available
online at journals.cambridge.org/aas
www.theactuary.com
p26_27_Q&A _july_FINAL•CT.indd 27
26/6/12 08:17:16
Longevity
Modelling
[email protected]
Jon Palin outlines a new structural model of
mortality that takes into account the underlying
drivers such as lifestyle trends
LIVE LONG AND
PROSPER
Figure 1: Mortality
improvements
and averages over 20, 50, 100 and 150
years for males aged 65 (England & Wales)
4%
3.25%
3%
2%
2.00%
1%
1.25%
0.75%
0%
18 50
1900
1950
-1%
28
2000
2050
The CMI Mortality Projections Model
provides a useful framework for considering
and communicating the cost of improving
longevity. Under this approach, projected
mortality improvements move smoothly over
time from current observed rates to a
long-term rate. But it leaves unanswered the
question of what long-term rate of mortality
improvement should be assumed.
The CMI suggests that “the long-term rate
is better informed by ‘expert opinion’ and
analysis of long-term patterns of change and
the causes driving them”. Several different
approaches could be taken.
One option is to assume that mortality
improvements revert to historical average
rates. But it is not obvious why this should be
appropriate, when past periods have seen
large differences in the predominant cause of
death, medical treatments and lifestyle
practices such as smoking.
Another option is to use a statistical model
such as Lee Carter. As a stochastic model, it
provides a valuable indication of uncertainty
in projections. But the central projection is
just extrapolating recent trends seen in the
calibration period. Other similar statistical
models have greater complexity, but still
consist of splitting past trends into
component parts and assuming that the
historical trend for each is repeated.
Another possible approach is to break
down mortality into its constituent causes,
extrapolate these causes independently, and
then recombine them. This raises similar
concerns to other extrapolative methods and
also has concerns of its own. In particular, it
is difficult to model correlated causes of death
such as cancer and cardiovascular disease
(CVD), which are both linked to smoking.
All three approaches can seem appealingly
objective. But all contain the assumption that
the past is a good guide to the future. Since
improvements have varied over time, the
choice over which period to calibrate to is
subjective and material (see figure 1).
A structural model
The alternative approach is a ‘structural
model’. We still base current improvements
on current observed data, but take a different
approach to future improvements. Informed
by work on natural catastrophe and pandemic
mortality models where historical data can be
sparse, we take a bottom-up approach and
look at the underlying drivers of mortality.
We base our model on what we call
‘vitagions’: the underlying drivers of
mortality. The five vitagions are lifestyle
(smoking, diet, exercise, stress); medical
interventions (drugs, screening, surgery); the
health environment (sanitation, pollution,
housing); regenerative medicine (stem cell
therapy, nanomedicine); and age retardation
(telomerase activation). Key factors in our
choice of vitagions are that they are distinct,
few, and can be treated as being independent.
This avoids the complexities of traditional
www.theactuary.com
p28_29_Longevity_FINAL•CT.indd 28
26/6/12 10:41:29
Jon Palin is a director
at RMS, specialising in
longevity modelling and
risk management
›
JON PALIN
the population to 25%. So we do not expect
rates to fall to zero overnight. Even if they
did, recently stopped smokers would not have
the same longevity as those who have never
smoked. Drugs require around a decade for
development, clinical trials, and wide
adoption. Stem cell therapy is in its infancy
and, while experimental treatments show
promise, they have huge costs. We expect it
will take around 50 years until improvements
from regenerative medicine peak.
The research needed to calibrate the model
is large, so we collate data from a variety of
publications, ‘crowd-sourcing’ and crosschecking multiple views where possible.
To do so requires a multi-disciplinary team.
Putting all of this together, our central view
for a pensioner portfolio is equivalent to the
CMI model with a long-term rate of around
2%. This is above typical pension scheme
practice, but below an extrapolative model
such as Lee Carter. We also find that our
uncertainty around the central estimate is
lower than most stochastic models, since we
have constrained the model to behave in
biologically and socially realistic ways.
The main aim is to understand both the
expectation and uncertainty of future
mortality rates. But this approach also has
fringe benefits. It helps to explain potential
future changes in terms that are accessible to
lay people such as trustees.
Existing actuarial models for longevity
improvement either extrapolate the past or
rely on pure judgement. Bottom-up cause-ofdeath models are intractably complex.
We suggest a hybrid approach. a
GETTY / CHARTS: J PALIN
“We base our
model on drivers
of mortality
including lifestyle
(smoking, diet,
exercise, stress)”
cause-of-death models, where it is difficult to
manage large numbers of correlations.
Our model focuses not on the long-term
annual mortality improvement rates, but on
long-term limits to how much cumulative
improvement can come from a single cause.
We want to limit mortality rates to what is
biologically and socially plausible. We use the
term ‘Vmax’ for the maximum progress that
can be made from a single vitagion.
We know that mortality for smokers at
retirement is two-and-a-half times as high as
for non-smokers. So we can calculate the
improvement if everyone stopped smoking:
at age 65 we would see mortality rates fall by
about 20%. Add in improved blood pressure,
BMI, cholesterol, stress levels and others,
allow a margin for unknowns, and we get a
maximum possible fall in mortality of over
40% from the lifestyle vitagion.
Similarly, we can investigate the limits to
mortality improvements from treatments
such as stem cell therapy. The effectiveness
will vary by cause of death: it seems promising
for replacing damaged tissue, but will not stop
you getting run down by a bus. So we consider
each treatment and cause of death in turn,
and combine them to get a maximum possible
fall in mortality of around one-third from the
regenerative medicine vitagion.
We also need to consider constraints on
when mortality improvements might be
realised. It has taken 20-30 years for smoking
prevalence (see figure 2) to fall from 50% of
Figure 2: Smoking
prevalence
among 40-year-old males (UK)
70%
60%
50%
40%
Manual
30%
20%
Non-manual and management
10%
0%
1965 1970 1975 1980 1985 1990 1995 2000 2005
www.theactuary.com
p28_29_Longevity_FINAL•CT.indd 29
29
26/6/12 08:17:42
Risk management
Mass torts
[email protected]
While natural catastrophes are normally the
primary threat to a non-life insurer’s
short-term solvency, casualty catastrophes,
mass torts, or ‘binary events’ in a Solvency II
context, can also pose a risk that is too
serious to ignore.
Improvements in natural catastrophe
modelling over the past 20 years have
enabled property insurers to better measure
and manage their catastrophic exposure.
Now, recently developed models are helping
casualty business writers who are exposed
to mass torts to better evaluate and
understand their risks.
Since there are no typical mass torts, there
is no precise way to define them. A mass tort
can be caused by a specific type of event or
product, and there are usually multiple
plaintiffs and defendants. Unlike natural
catastrophes, the specific cause of a mass tort
will almost never repeat itself. Often, an event
will be considered a casualty catastrophe if
total losses and related expenses exceed some
monetary amount, frequently $50m
(£32.5m) or $100m. Asbestos is by far the
largest mass tort experienced by the casualty
insurance industry, and it resulted in a new
awareness of the risks facing the financial
integrity of insurers.
Other examples of mass torts include
Chinese drywall, the BP oil spill, product
recalls, and the severe side-effects of certain
pharmaceutical products. Some natural
catastrophes, such as the 1994 Northridge
earthquake in California, can also cause mass
torts. Steel-framed buildings, once thought to
be largely earthquake-proof, were among
those worst hit. Potential causes of future
mass torts could be related to mobile phones
or climate change.
Even with an experienced team, it can be
difficult to quantify potential exposure to a
future mass tort. Questions faced include:
What is the likelihood of such an event? How
much would the event cost if it occurred?
Which policies would be exposed? What is the
likely financial impact on our policies if the
event occurred?
Modelling challenges
While the results of catastrophe models spark
controversy from time to time, there is
general acceptance of these models by the
insurance, reinsurance, rating and regulatory
communities. So why do mass tort models
remain behind?
First, opinions differ as to what the next
game-changing mass tort will look like: the
cause and size, the number of entities involved,
30
the
next
big
thing
Matthew Ball, Yi Jing and Landon Sullivan
examine why quantifying risks from mass torts
has lagged behind natural catastrophe modelling
and how recent advances make it possible to
prepare for the ‘next asbestos’
Matthew Ball FIA leads Towers
Watson’s risk consulting and
software business in Bermuda
Yi Jing is a senior consultant in
Towers Watson’s Hartford office
in the US
Landon Sullivan is an actuarial
analyst with Towers Watson in the US
and the insurance available to respond. For
instance, cancer from mobile phone use would
probably affect only a handful of large
companies (although there is no evidence to
suggest a causal link). But lawsuits alleging
damages due to climate change could affect
virtually any company. The next mass tort will
likely be due to a peril that is not well
understood now. By contrast, it is generally
understood that the next big insurance natural
catastrophe event is likely to involve a tornado,
earthquake, flood or hurricane striking a
densely populated city in a developed nation.
Another key difference is that knowledge of
natural catastrophe events is almost
immediate. Although the claims sometimes
take years to completely settle, early
estimates of losses usually prove to be
reasonably close to the actual losses. Not so
with mass torts. The ultimate financial effects
of an unknown mass tort can remain hidden
to an insurer for many years.
Overcoming obstacles
But these obstacles can be overcome. Instead
of modelling the physical characteristics of
an event, such as location, wind speed,
diameter or seismic intensity for a natural
catastrophe, the insurance-related
characteristics of a mass tort event can be
www.theactuary.com
p30_32_Asbestos_FINAL•CT.indd 30
26/6/12 08:18:07
“The next big mass tort will likely
be due to a peril that’s not well
understood right now”
The BP oil spill in the Gulf of Mexico in
2010 is one example of recent events
that have caused mass torts
modelled, such as total losses, number of
affected entities, reporting lag, triggered
policy years and the potential correlations
between these characteristics.
The models cannot answer the question
of what the ‘next asbestos’ will be, but they
can inform us how the next asbestos might
affect insurers.
GETTY
Key steps in modelling include:
z Gathering historical information on
casualty catastrophes.
z Adjusting the ultimate cost of historical
casualty catastrophes to a common future
point in time.
z Setting parameters for the frequency and
severity of historical casualty catastrophes
by line of business.
z Simulating future casualty catastrophes
by line of business using a frequencyseverity approach.
z For each simulated casualty catastrophe,
allocating the industry-level ultimate losses
to policy year and insurer.
z Reviewing the resulting distribution of
casualty catastrophe claims at the industry or
insurer level by line of business, by policy
year and in total.
z Conducting sensitivity testing of the
model’s assumptions and parameters, and
comparing this with other empirical
estimates from expert judgment.
During the past few decades, we have built
a database of historical mass torts containing
quantitative and qualitative information. It is
intended to include any event over a
threshold of $100m and includes estimated
ultimate losses of more than $500bn in total
from almost 300 events from the 1950s to the
present (see list overleaf).
The database has been successfully used
to calibrate various parameters of mass tort
models, for example, frequency and severity
parameters by line of business, allegation
or cause, year of first and last exposure, and
www.theactuary.com
31
26/6/12 08:18:18
An explosion
caused the
Deepwater Horizon
rig, which was
drilling for BP, to
burn and sink
[email protected]
the number of claimants and policyholders
that are affected.
The allocation to policy year can
reflect alternative assumptions, such as
continuous or all sums. Once losses are
allocated by year, they can be allocated
to a specific insurer’s coverage using
a simple market-share or more precise
policy-level approach.
The market-share approach compares
historical company statistics, such as premium
and ultimate claims, with the corresponding
industry statistics to estimate an average
market share of the industry loss by line of
business and policy year. It is most appropriate
when the insurer’s book of business resembles
a share of the overall industry.
The policy-level approach explicitly reflects
concentrations of risk or niches within the
historical business. It tends to be more
appropriate for mass torts with long latency,
such as where the claims can be allocated
across multiple policy years.
To sum up, as well as satisfying
regulatory requirements,
casualty catastrophe models
can be used to:
z Simulate latent claims for greater
understanding of reserve risk and use in
economic capital modelling.
z Estimate and provide evidence of the binary
event adjustment to be included in an insurer’s
technical provisions, as required by Solvency II.
z Validate the reasonableness of the
empirical scenarios developed based on
underwriting, claim and risk experts’
judgment, and test the volatility inherent in
these scenarios.
z Tailor results to individual company
profiles, such as older companies versus
newer companies, or differences in the mix of
business by line or layer.
z Test the sensitivity of the resulting loss
distributions to explicit changes in the
various parameters such as trend factors,
trigger protocols (such as continuous or all
sums), frequency and severity parameters,
unknown policy terms, concentration of book
of business, correlation among key variables
and other guidelines.
z Prospectively measure the impact of
different underwriting or risk management
strategies for casualty business, such as entry
into a different industry or writing different
coverage layers.
While casualty catastrophe models may
never be as sophisticated as some natural
catastrophe models available today, much can
be done to facilitate greater understanding of
casualty catastrophe risks and their potential
impact on insurers’ balance sheets. a
Correlation options
Extremely large mass tort events tend to affect many entities. Therefore, the dependence or
correlation between key event characteristics, such as event severity and the number of affected
entities, is important. The correlation can be introduced using statistical techniques.
Three illustrative dependency/correlation structures are illustrated, comparing event severity and
the number of entities affected graphically as heat maps. The warmer colours indicate more
likelihood of mass tort events; the cooler the colours, the less the likelihood.
Other key characteristics of a mass tort may also be related, including reporting lag and
number of years triggered.
A
B
C
Option A (left): no correlation; option B (centre): rank normal copula with 50% correlation; option C
(right): multivariate Student’s t copula with 50% correlation and one degree of freedom
32
Casualty catastrophe
events by a sample of
allegations/causes
291
Number of events
$542bn
(£352.35bn)
Estimated costs
TYPES OF ALLEGATIONS/CAUSES
Antitrust
Asbestos
Breach of contract
Car accident
Collapsed structure
Director negligence
Discrimination
Drugs for mothers, infants or children
Explosion
Fire
Firm causes financial damages
Negligent care
Oil spill
Plane crash
Poisoning/contamination
Pollution/chemical exposure
Product causes medical damage
Product causes property damage
Securities fraud
Securities negligence
Train collision
Unsafe product
Unsafe vehicle
LINES OF BUSINESS
Aviation
Directors and officers
Employment practices liability
Errors and omissions
General liability – excluding products
Marine
Medical malpractice
Pollution
Products – excluding pharmaceuticals
Products – pharmaceuticals
GETTY
Risk management
Mass torts
www.theactuary.com
26/6/12 08:18:25
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ACT.07.12.033.indd 33
21/6/12 16:58:18
›
At the back
Arts
[email protected]
Richard Elliott offers his top
10 theatre tips for this year’s
Edinburgh Fringe Festival
ED IN BU RG H
E N T E RTA I N S
“I cannot continue
to support a genre
that threatens
Western civilisation”
34
Arts
When I first moved to Edinburgh in 2004, the Fringe Festival pretty
much meant just one thing to me: comedy. This year, however, upon
picking up the programme, I skipped past the comedy pages and went
straight to the theatre section. Why was this? Was it because I recently
turned 30 and subsequently lost my sense of humour? No, of course not.
It was simply down to the fact that, the week before the programme
came out, a multitude of otherwise sane people had looked me in the
eye, and in all seriousness told me that the ‘greatest film ever made’
was not The Godfather, Casablanca or Psycho, not Chinatown, It’s a
Wonderful Life or even Annie Hall, but, wait for it, Anchorman. (If you
are nodding your head, please move to the next section of this magazine;
I have nothing to say to you.)
It was this milestone that forced me to properly reflect on the havoc
that the comedy genre has wreaked on humankind over the past eight
years. Clearly, for many people, the seemingly harmless act of watching
an intermittently amusing comedy completely capsizes their powers of
reason. I cannot, in good conscience, continue to support a genre that
represents a direct threat to Western civilisation and neither, I suggest,
should you. Instead, here are some alternatives.
www.theactuary.com
p34_35_arts_FINAL•CT.indd 34
22/6/12 17:14:30
›
BOOK REVIEW
Good Governance for Pension
Schemes by Paul Thornton and
Donald Fleming
The Letter of Last Resort/Good With People, Traverse Theatre,
4–26 August
This double bill is not to be missed. David Greig’s The Letter of Last Resort
starring Belinda Lang (pictured) tackles nuclear defence and won acclaim
when it premiered at London’s Tricycle Theatre. Meanwhile, David
Harrower (Blackbird, A Slow Air) looks at Scottish small-town society in
Good with People, first seen at Glasgow’s Òran Mór in 2010.
After the Rainfall, Pleasance Dome, 1–27 August
Curious Directive returns to Edinburgh after its success with last year’s
impressive Your Last Breath. That play saw the company conjure up a
snowy Norwegian landscape; this year’s effort finds it in the Egyptian
desert as it looks at the aftermath of Empire.
This Show Has No Title, Traverse Theatre, 7–26 August
Daniel Kitson makes a welcome return after taking a break from last
year’s Fringe. (Incidentally, if you must insist on seeing a comedian,
Kitson is also at The Stand comedy club from 5 to 26 August.)
The Agony and Ecstasy of Steve Jobs, Gilded Balloon Teviot,
1–27 August
This play arrives dogged by controversy over the factual basis of the story
Mike Daisey tells about conditions in Apple’s Chinese factories. Expect
drollery about turning off your iPhone, and to feel a modicum of guilt.
Hand Over Fist, Pleasance Courtyard, 1–27 August
Royal Court Young Writer and Fringe First winner Dave Florez returns to
Edinburgh with a new show about lost love and Alzheimer’s disease.
The Price of Everything, Northern Stage at St Stephen’s, 3–25 August
Daniel Bye promises to educate and entertain in roughly equal measure
as he contemplates questions of value.
And No More Shall We Part, Traverse Theatre, 30 July–26 August
Tom Holloway’s play examines the pressures that illness and ageing exert
on a relationship. Bill Patterson and Dearbhla Molloy take the lead roles.
Oh, the Humanity and Other Good Intentions, Northern Stage at
St Stephen’s, 9–25 August
A good choice for anyone with a short attention span, these five New York
plays by Will Eno are each just over 10 minutes long.
Six and a Tanner, The Assembly Rooms, 2–26 August
GETTY/LAURENCE WINRAM
This one-man play by Rony Bridges stars Glaswegian actor
David Hayman, fresh from his turn as King Lear at the Citizens Theatre.
Casablanca: The Gin Joint Cut, Gilded Balloon Teviot, 3–27 August
This affectionate take on the 1942 classic enjoyed a popular run at
Glasgow’s Tron Theatre last year and was a big hit at last year’s Fringe.
Lastly, as part of the International Festival, TEAM’s Primer for a Failed
Superpower at The Hub should be well worth seeing if the company’s
sublime Mission Drift show from last year is anything to go by.
● For further information on events, see www.edfringe.com
TITLE Good Governance for
Pension Schemes
PUBLISHER Cambridge University Press
ISBN: 978 0 521 76161 1
RRP £95
Good Governance for Pension Schemes
is a book of essays ‘curated’ by Paul
Thornton and Donald Fleming. Various
specialists on aspects of pensions from
funding to investment to demography
have been drawn together to give their
thoughts on good governance.
It would be heavy-going for a new
lay trustee, though individual chapters
may be useful for exploring one part of
the subject. It seems to cover the issues
fairly comprehensively, but feels rather
‘zipped together’. An opening essay by
the compilers is a good scene-setter,
but the essays as a whole seem to try to
cover too much ground.
It probably earns itself a place on most
consultants’ shelves. Future editions
might benefit from harmonisation of
the style, and of the very full content.
Greater emphasis on the non-trustee
governance of a defined-contribution
pensions world would be worthwhile.
● Peter Tompkins is chairman of
The Actuary’s editorial advisory panel
From the authors: “This book ranges
across regulation, capital markets,
relevant law, actuarial investigation,
sponsor covenant, investment
governance, risk management and
the corporate perspective. I make no
apology for choosing this collection of
summaries of current best practice, as
each chapter is by a leading expert in
their field. Actuaries must appreciate the
context in which their advice is given, and
that is what this book provides.”
● Paul Thornton is responsible for
the pensions advisory team at Gazelle
Corporate Finance. In 2007, he led
an independent Review of Pensions
Institutions for the Department for Work
and Pensions. He is a past president of
the Institute of Actuaries (2000-02).
● Donald Fleming joined Gazelle
Corporate Finance in 2005 to launch
its pensions advisory business.
He has also worked as a corporate
financier at Cazenove & Co (latterly
JPMorgan Cazenove) and practised as
a banking lawyer with Clifford Chance,
specialising in securitisation.
PAUL
THORNTON’S
BOOK CORNER
What every actuary should read:
“I have chosen two enjoyable and
illuminating books, not for their
technical or actuarial content but for
the way they put actuarial endeavours
in context. In this sense, the insights
are indispensable.”
Who’s Afraid of Schrödinger’s Cat?
by Ian Marshall and Danah Zohar
While the book is a 1997 guide to ‘new
science’, the introduction and overview
show that scientific theories that appear
to explain everything at the time are
invariably found later to be incomplete.
This is equally true of actuarial science.
The Greed Merchants by Philip Augur
Written in 2004, before the recent global
financial crisis, this book is subtitled
‘How the investment banks played the
free market game’. Understanding how
moneymaking drives the managers and
owners of investment banks is important
to the financial institutions that rely
on their services and to the actuaries
that advise them, and this book should
induce reflections on risk management
and ethics.
MORE ONLINE
Latest reviews at
www.theactuary.com/opinion
www.theactuary.com
p34_35_arts_FINAL•CT.indd Sec2:35
26/6/12 08:22:21
At the back
Coffee break
For a chance to win a £50 Amazon voucher,
please email your Prize Puzzle solutions to
[email protected] by Friday 16 July
[email protected]
Puzzles
Princely puzzle 511
Solve the problems of both the prince and his heir to win the prize
Security at Prime Palace is a very straightforward affair. There are no keys,
just simply bracelets on which are hung five numbers. Access to sensitive
areas is then granted by presenting the bracelet in a way that shows a fivedigit prime number. Given that a bracelet can be read clockwise or anticlockwise, and there are five numbers to start from, the chances of picking
a prime number at random can therefore be as low as one in ten.
Sounds simple? Well as an extra check, you are asked to swap your
bracelet for one of the same colour at every door, so you need to know for
your colour the full set of possible prime numbers.
Although the system had worked well for many years, it had also almost
been abandoned when the queen had remarried. The new king could simply
not remember the numbers! He therefore had a special bracelet made that
always produced a prime number however it was presented, and he was
never asked to swap bracelets.
—
ER
BUMP E
PRIZ E
PUZZL
—
Heir
apparent
512
Prime Palace now
wants to move to a
six-figure system.
What numbers
are now on the
king’s bracelet?
What numbers were on the king’s bracelet?
TERMS AND CONDITIONS Prize puzzle. The prize will be awarded for the first correct entry drawn at random from those received before the closing date. The winner’s name will be announced
in the next edition. Please note, the puzzle editor’s decision is final and no correspondence will be entered into. We reserve the right to feature the winner’s name in The Actuary. Your details will not
be passed to any third party in connection with this draw.
SOLUTIONS FOR JUNE 2012
♠KQJ2
♥1084
♦QJ9
♣A42
♠9876
♥K53
♦82
♣J653
You are East. Dummy is North.
The Bidding: S bids 1NT and N bids 3NT.
West leads 9♠
N
W
E
S
♠1053
♥Q62
♦AK1075
♣KQ
♠A4
♥AJ97
♦643
♣10987
Declarer plays the 2 from Dummy. There
is no point in ducking, so you take your
Ace. Clearly there is no future in spades,
so now what?
1. Which card would you like Partner
to hold?
2. If he has it, how do you continue?
Hearts look to be your only hope here. In order to take the next 4 tricks, you need
Partner to hold the K♥ Playing a low heart is no good. Declarer can duck. Partner
will have to play the King and Declarer’s Queen will stop the run of the suit. Leading
the Ace is unlikely to work either. If you follow with the 7, Declarer may duck again
allowing the Queen to block the suit. You need to lead the J♥. This will enable you
to pick up the Queen. Partner then returns the 5 and you hold the A9 over the 10 8.
This is known as a ‘surround’ play. The requirements are to have cards immediately
round Dummy’s highest card and another higher card.
Bridge puzzle provided by David Lampert
36
M
S
P A L E S
N
D
B I Z A R
L
T
C A T E R
E
D I E T I
I
N
M
S C A L P
U
G
A
S H E A R
E
R
T
S
D
S
L
T
S E C U R E
A
T
I
A
R E
A
T
R
N
I
C
N
R E L I A N T
A
S
N G
S P E A K
E
O
B
D E P O S I T
D
D
D
S
A S L E E P
M
E
S
Anagram aptitude
Puzzle 509
The answers to the clues are as above, with the
first word in each case being the one which is
entered in the diagram.
Square
numbers
Solution
508
The following are the
lengths of the various
sides, according to the
labels in the image:
a = 50 b = 35
Brain
bamboozler
Puzzle 510
The sequence
is formed by the
integers that do not
contain the letter ‘e’.
The next two terms
are 42 and 44
Congratulations to this month’s winner – Wee Shen Teo, of Aspen
ISTOCK
Bridge challenge 23 – Surrounded
Puzzle 507
www.theactuary.com
p36_july_puzzles_FINAL•CT.indd 36
26/6/12 10:14:54
›
At the back
Student
[email protected]
Student
The requirements for the
Profession might not be the
Da Vinci Code but they are mine,
says Matthew Welsh
UP TO SCRATCH
Topical messages
In case you have been living in a cave, up
a mountain, haven’t read a newspaper or
watched the news for weeks on end and
didn’t know, it turns out the Olympics Games
are in London this month. And, according to
Section 5, subsection 2.3.1, paragraph 3 of the
Pseudo-Journalists Code (PJC), I am required
“in an article to always mention any major
sporting event that is planned to occur in
that month”. So ‘good luck’ to all the British
athletes and ‘do your best, but not so well’ to
all the other athletes. And if you’re planning
to visit the capital to watch the Games,
remember the golden rule of London life –
when on an escalator on the Underground,
queue on the right and walk on the left.
Having almost been caught out by the PJC,
I decided it would be interesting to review my
actuarial affiliation and ensure that I meet all
the requirements. Now it may surprise you
to learn that I view myself as professional
and honest, so surely there is no real need to
check out whether I am kosher. But without
actually knowing what the requirements are,
how can I say, hand on heart, that I am acting
in the ways that the Profession requires of
its members?
only six pages long, two of those being the
cover and the back cover.
There is a page ‘welcoming’ me to the Code
and explaining that it applies to ‘all actuaries’.
So, I guess students are not subject to the
Code. But, in the spirit of professionalism and
preparing for life as a qualified actuary, I feel
the need to check that I’ll meet the standards
required. It also explains that breaching the
Code isn’t necessarily misconduct. This will
come as a welcome relief to anyone
working on meeting the prescriptive
criteria set out by
Solvency II requirements.
However, it does refer
to ‘misconduct’ and the fact that the Code
can be used as a reference guide to establish
whether you have done anything naughty.
Page two of text sets out the application,
scope, status and purpose for the Code. These
sections are only a paragraph each, and
basically confirm that any actuary should
adhere to it at all times. Simples!
It all gets a bit more detailed in the final
two pages. There are five sections that cover
integrity, competence and care, impartiality,
compliance and communication. But I am
pleased to find that there are no real surprises
in this. There is certainly a link to CA1, so
anyone who has studied this will be familiar
with the requirements.
Bedtime reading
Having read the Code, I can now sleep easy,
and feel confident that I am following the
principles the Profession requires. I guess, if
I am being honest, reading the Code was not
the most scintillating activity. However, it felt
cathartic; it was a rite of passage that I can
store – at least for a little while – and which
allows me to confirm without too much doubt
that I meet the standards required of me in
my professional life.
And with that now read, I hope I
never have to revisit the section entitled
‘disciplinary procedures’. a
Where to start?
I guess a good first port of call would be the
main Institute and Faculty website. So, I click
on the handy link I have created and begin
searching. Across the top, I skim past the usual
headings and rest on one I have rarely given
much thought to: regulation. The obvious link
is to the Actuaries’ Code. I faithfully download
the PDF, and am surprised to find that it is
Illustration Phil Wrigglesworth
www.theactuary.com
p37_july_students_FINAL•CT.indd Sec1:37
25/6/12 11:04:19
SPONSORED BY
At the back
Appointments
[email protected]
ACTUARY OF
THE FUTURE
Moves
STEPHEN
HADJISTYLLIS
[email protected]
Employer and area of work Trainee pensions
actuary at Punter Southall.
How would your best friend describe you?
He replied to my text saying “Persistent,
stubborn but most importantly loyal”.
What motivates you? Knowing that great effort
eventually pays off and the harvest to come is
indeed worthwhile.
What would be your personal motto?
“Fortunate is he, who is able to know the
causes of things” – math comes in
pretty handy.
Who do you most admire and why? I admire
anyone who has the courage to work their way
through problems, despite hardship and the
worst odds.
What’s your most ‘actuarial’ habit? Creating a
spreadsheet for every occasion. Whether it is
analysing house price inflation towards a
property purchase or generating random
numbers for the lottery (I don’t trust the lucky
dip generator!)
How do you relax away from the office? I enjoy
watching films and taking short weekend
holidays. My favourite and most relaxing
activity is cycling, especially along the
River Thames.
KPMG has appointed
Simon Perry (above)
as a partner in the life
actuarial team. Perry
will lead KPMG’s team in
Bristol and be responsible
for developing consulting
opportunities across
the south-west. He has
20 years’ experience
of consulting in the life
insurance industry, where
his focus is on financial
reporting, economic
capital and finance
transformation. He joins
KPMG from Ernst &
Young and previously
worked at TillinghastTowers Perrin. The firm
has also appointed
David Kirk (below)
as a partner in South
Africa. Kirk will be
leading KPMG’s actuarial
consulting business,
focusing on life insurance
and general insurance.
He was previously a
partner at PwC with
experience in insurance
strategy, risk and capital
management and
financial reporting.
Hymans Robertson
has promoted three
actuaries to partner.
Mark Jaffray joined
the Glasgow office as an
investment consultant
and specialises in
providing advice to
defined contribution
schemes. In particular,
his work included helping
clients who are preparing
for the implementation of
auto-enrolment schemes.
Barry McKay first joined
Hymans Robertson in
1996 and, after a brief
break travelling, rejoined
the team in 2005.
He works as an actuary
in the public-sector team
and most recently has
been heavily involved in
helping clients to deal
with pension reform in
the public sector.
Calum Cooper joined
the firm in 2003 as an
actuarial trainee and is
now a scheme actuary
based in Glasgow. As lead
consultant for a range of
private-sector pension
schemes, he works with
companies and trustees
to help them develop risk
management solutions.
He specialises in
funding strategy, flexible
income drawdown,
benefit flexibility and
risk management
opportunities.
The firm has also
announced the
appointment of
Andy Green (below) as
partner. Green joins from
Deloitte, where he was
a partner in the pension
advisory business. In his
new role, he will lead a
range of client teams,
focusing on the highest
quality advice to clients.
He will also play a key role
in new business activities.
Deloitte has announced
the appointment of
Alex Poracchia (above)
as a new partner in
its general insurance
actuarial team. He will
provide underwriting,
pricing and broader
actuarial services to
clients, with a focus on the
commercial lines insurers
and reinsurers. Poracchia
joins from Zurich
Insurance Group, where
he was chief financial
officer of the company’s
global corporate division.
Dan Mikulskis has been
appointed as a director
in the asset liability
management (ALM)
and investment strategy
team at Redington.
Together with Steven
Yang Yu, Mikulskis will
be responsible for the
day-to-day running of
the team, reporting into
the MD and head of ALM
and investment strategy.
He has worked at Mercer,
Deutsche Bank and
Macquarie Funds Group.
Alternative career choice? My dream was to
become an airline pilot but it proved
prohibitively expensive.
Tell us something unusual about yourself
With reference to the above, I have logged 29
hours of flying time in single engine aircraft,
six of which were solo.
Greatest risk you have ever taken?
Getting a mortgage!
What’s coming up in The Actuary?
August 2012
Published 02 Aug
Advertising deadline 13 July
Investment
Life
Careers: work-life balance
What’s your most treasured possession? My bike
– it takes me everywhere I need to go and also
provides the necessary daily exercise.
If you ruled the world, what would you change first?
Weekends would end on a Tuesday.
September 2012
Published 30 Aug
Contributor deadline 12 July
Advertising deadline 10 Aug
Reinsurance
Environment
Modelling and software
October 2012
Published 04 Oct
Contributor deadline 16 Aug
Advertising deadline 14 Sept
Careers: graduate
Risk management
Mortality / longevity
November 2012
Published 01 Nov
Contributor deadline 13 Sept
Advertising deadline 12 Oct
Solvency II
Pensions
Careers: new fields
December 2012
Published 29 Nov
Contributor deadline 11 Oct
Advertising deadline 09 Nov
General insurance
ERM
Investment
Do you know an actuary
destined for greatness?
You can nominate an Actuary of the Future
by emailing
[email protected]
38
www.theactuary.com
p38_july_AOTF_FINAL•CT.indd Sec1:38
26/6/12 08:22:49
Indian summer
African odyssey
Inside Chinese walls
Growth in the insurance
sector has actuaries in
great demand
Bountiful opportunities
for actuaries in
emerging markets
Expanding educational
links in an evolving
Asian market
JULY 2012
theactuary.com
EUROPE
AFRICA
ASIA
USA
The magazine of the actuarial profession
UNITED KINGDOM
Worldly ambitions
February 2012 • THE ACTUARY
Actuaries recount their personal experiences of life working
overseas
p1_supplement_coverB_july_FINAL•CT.indd 39
39
20/6/12 15:06:09
The International Supplement
› Introduction
Contents
3
Welcome
World in motion
It is quite a coincidence that I write this
introduction to our international feature in
South Africa, having randomly bumped in
to my best (actuary) friend, who was on his
way to Singapore. What are the chances?
I’m sure some of you will try to answer this!
Travel to far-flung places has become
commonplace and we are pleased to
feature a diverse range of experiences
from some of our members.
Derek Cribb outlines the Profession’s
international strategy
4
Focus: South Africa
Jay Tikam explores the South African
actuarial landscape
6
8
Wilhelm de Wet talks to Demetre la Grange on his
return to South Africa after spending more than
10 years working in the UK
Feature: China
Trevor Watkins and Memoria Lewis report back
on their recent trip to China and Hong Kong, and
the importance of establishing links in Asia
9
Q&A: Hong Kong
Greg Soloman recounts his experiences of
working overseas
11 Feature: Aussie rules
Tim McMahon casts an expert eye over the new
immigration system and how it affects actuaries
looking to move down under
12 Q&A: Australia
There is clearly tremendous opportunity for actuaries to gain
experience in new and developing markets, while experiencing
different cultures and lifestyles. This trend, I expect, will continue and
offers our profession a chance to share best practice, and learn from
new markets, among many other benefits. With this comes great
responsibility – to help shape the future of our global society through
our unique blend of skills. I hope you enjoy this section and I’d love to
hear from you – where do you think the best place to work is, and why?
And the most remote and difficult?
Deepak Jobanputra
[email protected]
After spending much of his working life travelling,
IIan Leas tells why he has settled in Australia
13 Q&A: Singapore
Alex King reports on the cultural differences
he’s found working in the Asian market
14 Q&A: Canada
Dean Stamp provides an insight into his
experiences of life and work in Canada
15 Q&A: India
Nisha Khiroya recounts her year’s
secondment in Mumbai and what she
gained from the experience
16 Focus: India
Jagbir Sodhi highlights the rapid economic
growth in India, and explains why actuaries are
revered to almost celebrity status
18 Q&A: Germany
Having spent 10 years working in Germany,
Peter Devlin depicts actuarial life in Munich
ONLINE
Q&A: Portugal
Editor
Deepak Jobanputra
[email protected]
International features editor
Sarah Bennett
[email protected]
Managing editor
Sharon Maguire
[email protected]
+44 (0)20 7880 6246
Display / recruitment sales
Katy Eggleton
[email protected]
+44 (0)20 7324 2762
Design / Pictures
Adrian Taylor / Akin Falope
Sub-editors
Caroline Taylor
Clare Cronin
Production manager
Jane Easterman
+44 (0)20 7880 6248
Editor, Redactive finance
division
Mike Thatcher
Publishing director
Joanna Marsh
Published by the Staple Inn
Actuarial Society.
The editor, The Institute and Faculty
of Actuaries and Staple Inn Actuarial
Society are not responsible for the
opinions put forward in The Actuary.
No part of this publication
may be reproduced, stored or
transmitted in any form or by any
means, electronic, mechanical,
photocopying, recording or
otherwise, without prior written
permission of the copyright owners.
While every effort is made to ensure
the accuracy of the content, the
publisher and its contributors accept
no responsibility for any material
contained herein.
© SIAS July 2012
All rights reserved
Redactive Media Group
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London EC1M 5TP
+44 (0)20 7880 6200
Internet
The Actuary website:
www.theactuary.com
SIAS website:
www.sias.org.uk
Actuarial Profession website:
Arti Sodha offers an insight into her daily life
working in the Portuguese capital
Q&A: Malta
Circulation 21,764
(July 2010 to June 2011)
Jean-Paul Shipley portrays life as an actuary in
the traditional fishing village of Marsaxlokk
2
A SUPPLEMENT TO THE ACTUARY • July 2012
www.theactuary.com
p40_contents_intro FINAL•CT.indd 40
22/6/12 14:54:16
Derek Cribb outlines the
Profession’s international strategy
and its engagement with actuaries
around the globe
Sustainable communities
We are also building communities overseas that are strong and
sustainable. We recognise that while these communities will be part
of our well supported global profession, our ability to engage
internationally will be enhanced by having a local critical mass
of members.
One approach to delivering this is informing students of the
benefits of a career within actuarial science, and encouraging them
to pursue membership with us by accrediting outstanding
universities internationally. By attracting the highest-calibre members,
EUROPE
AFRICA
UNITED KINGDOM
THOMAS PHILLIPS
Welcome to this year’s International Supplement, which gives an
overview of international career opportunities and an insight into
working in different parts of the world. This issue looks at several
geographical areas, with a particular focus on India and South Africa.
I hope you find it insightful.
In my column in last month’s magazine, I wrote that a large number of
you, our members, are based outside the UK. I also explained how the
Profession is looking to improve support to our diverse membership
by providing more accessible and equivalent services to members,
wherever you are based. I therefore thought it timely to provide
more information in this supplement about the Profession’s strategy
internationally, and to update you on our progress to date. So let me
explain in a bit more detail about the strategy, and how we hope it will
help you in your career.
One of the core elements of our international strategy is our
collaboration with national and supranational bodies. This involves
regular meetings with other actuarial associations to discuss matters
of mutual interest and to share best practice, so that we can ensure
that you are getting the best value from your membership.
For example, we have a memorandum of understanding with
the China Association of Actuaries and are helping it to develop its
syllabus, and we have mutual recognition agreements with several key
organisations, including the Groupe Consultatif Actuariel Européen
(the body that brings together actuarial associations across Europe),
the Institute of Actuaries India, the Society of Actuaries, the Casualty
Actuarial Society and the Canadian Institute of Actuaries. We also
have volunteer representatives on key committees of the International
Actuarial Association and the Groupe Consultatif, so the Institute and
Faculty has a voice on the global stage and can contribute to important
matters that affect actuaries worldwide.
We will also be offering tailored student support and continuing
professional development (CPD) opportunities to members in different
locations, so that you continue your professional development in areas
– both geographical and technical – that are relevant to your day-today work. By using new technologies, and taking into account local
markets and opportunities, we will be able to provide you with a service
that better meets your needs.
USA
World in
motion
ASIA
› Overview
the Profession strengthens its capability in all areas and safeguards
its reputation.
We are engaging with employers and universities all over the world
to explain the benefits of holding an Institute and Faculty of Actuaries
qualification, as this will widen the scope of opportunities available
to you. For more information about our work with employers and
universities, please read the article by Trevor Watkins, director of
education, and Memoria Lewis, director of member support, on p46 of
this supplement.
Much has already been achieved internationally. We continue
to partake actively in the International Actuarial Association and
Groupe Consultatif meetings, as well as holding meetings with
key national actuarial bodies. Our approach to managing events
overseas has become more systematic, with more tailored and
co-ordinated CPD activities and member meetings taking place
in membership hubs such as Trinidad and the wider Caribbean,
Mumbai, Beijing, Shanghai and Singapore. We have also been working
with regional member interest groups to facilitate local meetings
and networking opportunities. This process has included making
use of the ‘communities’ pages on the Actuarial Profession website.
Recently launched communities include Luxembourg, Amsterdam,
Kuala Lumpur, Shanghai, Hong Kong, Singapore and Beijing.
There are many ways in which you can be involved, such as joining
your local community or member interest group. If there is not a local
group, we can help you to set one up if there is sufficient demand. We
are also always looking for volunteers to fill several roles and would be
delighted to hear from you, regardless of where you are based. You
may wish to look at the ‘volunteer vacancies’ page on our website:
www.actuaries.org.uk/members/pages/volunteer-vacancies
We live in a fast-paced world, where actuaries need to be flexible,
mobile and adaptable to change. It is, therefore, vital that your
membership body reflects your evolving needs. Our international work
will ensure that you are supported throughout your career and that
a wealth of opportunities are open to you. We will continue to be
progressive and innovative so that members, no matter where they are
located, feel the benefits of being part of the Institute and Faculty of
Actuaries community.
Derek Cribb is the chief executive of the Institute and Faculty of Actuaries
July 2012 • A SUPPLEMENT TO THE ACTUARY
www.theactuary.com
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26/6/12 08:19:25
Jay Tikam is the managing
director of Vedanvi
›
› South Africa
JAY TIKAM
African
odyssey
Jay Tikam explores the South African actuarial
landscape and the bountiful opportunities available
for qualified actuaries in this emerging market
4
Compared with other professions, actuaries
are a rare breed. In 2005, globally, there were
42,824 fully qualified actuaries in full member
associations. Figures for other professions
that year showed 9.5 million doctors,
5.5 million accountants, 6.5 million engineers
and 67,000 chartered financial analysts.1
The demand for qualified actuaries
however, continues to grow. Key drivers of this
demand include:
• Market volatility – actuaries are vital to
managing the impact of such volatility on
the balance sheet.
• Risk management – actuaries play a
key role in helping senior management to
measure, assess and manage risk.
• Growth of insurance in emerging
markets – actuaries have a major role in
manufacturing products and helping to
manage risk-based capital and reserves.
• Solvency ll and other regulatory change
initiatives – regulatory reform such as
Solvency II creates a significant demand
for actuaries, albeit in the short term.
world encourages many actuaries to opt for
options in their own developing economies,
and migrants are enticed to relocate back
home for the same reason. For those who are
willing to migrate, stricter immigration rules,
especially in the UK and Europe, mean that
this door is progressively closing.
If importing qualified actuaries is not viable,
then exporting actuarial work packages may
be more feasible. Offshoring and outsourcing
actuarial processes is common in markets
such as India, Poland and the Philippines.
However, these markets have a limited
number of qualified actuaries, and therefore
outsourcing is still a laborious process.
South Africa, meanwhile, is proving to be
an oasis for qualified actuaries and offers
hope for meeting global demand. The window
is narrow, as several insurers are already
exploring this opportunity – one multinational
insurer is setting up a Centre of Excellence
in Cape Town. South Africa will also adopt
Solvency II in 2014, creating its own internal
demand. First movers will be the winners.
How can this demand be met?
Several viable alternatives exist. Getting
suitably qualified mathematicians and
statisticians to carry out actuarial work is one
option. The other is to redeploy actuaries
doing non-actuarial work back to their core
profession. Both paths are fraught with
challenges, and should be viewed as
longer-term strategies. Another approach
is competing aggressively in the market for
actuaries. However, the pool of permanently
employed actuaries is diminishing, as many
move into lucrative interim management,
while others join consultancies to enhance
career prospects and remuneration.
Importing qualified actuaries is another
proven opportunity. Unfortunately,
closing salary differentials and continued
economic uncertainty in the developed
Why South Africa?
South Africa is uniquely positioned.
According to the Actuarial Society of South
Africa, in 2011, the country had 751 Fellow
actuaries –around 2% of the global qualified
Figure 1: Growth rates for actuaries
Country Fellows
South
7%
Africa
UK
4%
Australia 5.7%
Students Period
11.5%
19952007
7%
19952004
6.6%
19922005
Source: Demand for Actuarial Resources in South
Africa by W Terblanche, South African Actuarial Journal,
SAAJ9, 2009.
actuarial population – and 1,241 students.
By comparison, in 2010, India had 225 Fellows,
the Philippines approximately 65 and the
Czech Republic around 80.
Approximately 200 aspiring student
actuaries enter the profession in South Africa
annually. Up until 2009, South African actuaries
had no choice but to qualify through the
Institute and Faculty of Actuaries in the UK; so
in 2011, 698 (93% of the total) South African
Fellows were UK-qualified. The growth rate
for actuaries is much higher in South Africa
compared with the UK and Australia (see Fig. 1).
While supply is relatively high compared
with other countries, demand is comparatively
lower – not taking into account Solvency II
demand, emigration and the transition of
actuaries into areas such as investment
banking, which diminishes the pool.
The South African life insurance market
was saturated in 2008, Wilma Terblanche
concluded.2 Insurance penetration, defined
as premium income as a percentage of gross
domestic product, is a good indicator of the
development of the insurance industry. While
South Africa’s GDP per capita is similar to
that of other emerging economies, it has high
insurance penetration: premiums make up
14% of GDP compared with 4% for emerging
markets and 9% for industrialised countries.
On a more general note, the financial
services industry in South Africa is worldclass. Overall, for the financial market
development category, the country ranked
fourth out of 142, according to the Global
Competitiveness Index 2011/12. In several
sub-categories, it ranked number one.
Its insurance sector is world-class, and
skills are readily transferable (see Fig. 2).
English is one of the official languages and
is widely spoken. South Africa is also culturally
much closer to Europe, compared with
countries such as India and the Philippines.
There is only a one- to two-hour time
www.theactuary.com
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Fertile ground: South Africa offers plenty of scope
for actuarial offshoring and outsourcing
GETTY
difference between South Africa and Europe.
And the country, especially Cape Town, offers
a superb lifestyle, which will not only convince
migrant actuaries to return but also entice
European actuaries to try out secondments,
if the outsourcing propositions take off.
How to implement offshoring
or outsourcing
South Africa offers insurers the opportunity to
build actuarial capability to gain competitive
advantage, and should not be seen as a
cost arbitrage opportunity. The main reason
for considering South Africa is to allow
outsourcing of a knowledge based process.
Limited experience exists to date. However,
lessons can be learnt from those few
pioneering firms that have set up actuarial
operations in South Africa. Examples are:
• Whether to outsource or set up one’s own
captive is the first question that arises.
Outsourcing offers the ‘try before you buy’
option, while a captive, especially for early
adopters, can ensure that they capture
a lion’s share of the pool of experienced
actuaries willing to pursue this career option.
• For captive operations, the choice of legal
structure is key from a tax and operations
perspective. For going concerns, an internal
consultancy has proved to be one of the
better operating models. However, this is
likely to vary for each firm.
• This is a relatively new concept, and
acquiring approval from the board
or executive committee may well be
challenging. The propositions need to
be well crafted, and business benefits
demonstrated clearly, to win them over.
Figure 2: How South Africa ranks on competitiveness
Financial market development
Availability of financial services
Financing through local equity markets
Soundness of banks
Regulation of securities exchange
Legal rights index, 0-10 (best)
Rank (out of 142)
3
4
2
1
8
Quality of management schools
Reliance on professional management
Institutions
Strength of auditing and reporting standards
Efficacy of corporate boards
Protection of minority shareholders’ interests
Strength of investor protection, 0-10 (best)*
Higher education and training
Quality of management schools
13
18
Source: Selected statistics from the Global Competitiveness Index 2011/12
1
2
3
10
13
• There will be reluctance to relinquish
some control over complex actuarial work
packages and processes. Businesses will
need to be convinced of the quality of work,
timely delivery and potential data security
issues involved. Pilot programmes are a
must, while secondments will help to build
relationships, trust and knowledge of the
client business.
• Quality control will be a hotly debated issue,
and the client – whether internal or external
– will require an element of control in this
area. For the offshore operation, a client
relationship management and quality control
hub may need to be created in the same
geographical location as the client.
• Experienced actuaries will need to be lured
away from existing employers through
attractive compensation and benefits, a
clear career path and the prospect of being
involved in interesting and challenging work.
• Data security will require priority, as South
Africa has not as yet passed its equivalent of
the UK’s Data Protection Act, although plans
are afoot for such legislation. Additional data
protection measures will need to be put in
place, including electronic and physical data
security, for any data transfer outside the
European Union.
For actuaries themselves, this could be
the best of both worlds – a high powered
international and Solvency II-related career
alongside one of the best lifestyles on offer.
Jay Tikam recently led the implementation of
a South African actuarial centre for one of the
world’s largest insurers. He can be contacted at
[email protected]
1. Actuarial Supply & Demand by Julian D Gribble,
Presentation for International Actuarial Association,
International Congress, Paris, 27 May-2 June, 2006
2.Demand for Actuarial Resources in South Africa
by W Terblanche, South African Actuarial Journal,
SAAJ9, 2009
www.theactuary.com
p42_43_supplement_tikam_FINAL•CT.indd 43
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management and financial skills of actuaries. The challenge lies
in how actuaries can market their skills in a better way.
Home is where your
heart is... eventually
Demetre la Grange shares his experience on
returning to South Africa after spending more than
10 years in the UK.
WHAT IS YOUR BACKGROUND DEMETRE?
I’m currently a Life Business Development actuary at Munich
Re of Africa and based in Cape Town. I started my career in
Cape Town after obtaining a degree in actuarial science at
the University of Stellenbosch and moved to the UK after
qualifying in 2000. I was with Towers Watson for 6 years
before my return to SA. I have a lovely wife, Natasja, and two
wonderful children, Sean and Monique.
WHY DID YOU LEAVE SOUTH AFRICA?
Natasja and I were keen to experience life overseas and gain
international experience in our careers. The UK became a
more accessible location for people to work and live in during
the late 90s and we decided to go to London for “a few
years”, but before we knew it we had been living there for 11
years.
WHAT WERE YOUR REASONS FOR RETURNING?
It mainly relates to lifestyle choices and being close to likeminded family and friends. And I won’t deny that the weather
probably played its part in the decision!
WHAT WERE THE CHALLENGES OF GETTING A
JOB IN SOUTH AFRICA? ANY RESTRICTIONS?
The market in SA is definitely not that active – especially
if you have your sights set on Cape Town with an EB
background like myself. I was used to the job market in
London where opportunities on the EB side were plentiful, so
waiting for the right position to open in Cape Town required
some patience and perseverance. On this note, I’d like to
thank Wilhelm and SA3 for their commitment and effort. It
was worth the wait.
WHERE ARE YOU SEEING THE GREATEST
DEMAND FOR ACTUARIES?
Perhaps not necessarily a demand, but more of a challenge,
is how actuaries can apply their skills in other non-traditional
areas. Many companies should be able to benefit from the risk
ACT.07.12.044-45.indd 44
HOW DOES THE SOUTH AFRICAN CULTURE
DIFFER FROM EUROPEAN CULTURE IN THE
WORKPLACE (AND IN EVERYDAY LIFE)?
Within the actuarial environment and financial sector there
is a similar ethos. I have seen passionate, dedicated and hard
working people in both cultures. In everyday life there seems
to be a stronger focus in South Africa on spending time with
the family.
HOW DO THE SALARIES AND COST OF LIVING
IN SA COMPARE TO THAT OF EUROPE?
Salaries in SA are typically lower than in Europe. However,
there are many cost of living items that make up for the
difference. A nice meal and a good bottle of wine in SA are
typically close to half the price you would pay in London.
Petrol is about 2/3rds of the price. Not everything in SA
is cheaper though – the cost of insurance and technology
related items tend to be significantly more.
WHAT DO YOU DO IN YOUR SPARE TIME?
Having moved back to SA only recently, a lot of spare time
has been used to sort out administration issues around
relocating and tying up loose ends. In the remaining spare time
I have managed to spend more time relaxing with the children
and making the best of the outdoors in the sunny weather.
TRICKY QUESTION: BEING A “EUROPEAN
MALE”, HOW DO YOU SEE BLACK ECONOMIC
EMPOWERMENT IMPACTING THE JOB MARKET?
BEE definitely plays a role in employment opportunities.
However, I believe that there will always be a market for well
experienced and dedicated individuals, no matter what your
background or culture.
TRICKY QUESTION NUMBER 2 : IS THE CRIME
REALLY THAT BAD?
In typical actuarial fashion I think the answer is “it depends”.
It depends on where you live and your frame of reference.
There is definitely more petty crime than what we were
used to in London – and it is reflected in the cost of car and
household insurance! The perception of crime and other
negative aspects of any country tends to be linked to how
much it is talked about in the press. When living in Europe
the debt crisis was almost reported as “the end of the world”.
Back in SA it receives a lot less attention and people tend to
look at the silver lining, rather than the dark cloud.
WHAT IS THE BEST THING ABOUT WORKING IN
SOUTH AFRICA?
Within the business world there is a great attitude towards
making the rainbow nation a success and people from all
cultures and backgrounds seem to be making an effort to
contribute towards this goal. On the lighter side, it is great
not having to wear a suit and tie to every client meeting.
20/6/12 15:33:46
SA3 is a dedicated actuarial recruitment company, run by actuaries. We
pride ourselves in exceptional service and have numerous satisfied clients
and candidates in South Africa and abroad. Our aim is to make the job
searching process as easy and discreet as possible for the candidate and
the filling of vacancies quickly and effective for the employer. Whether
you are looking for a new challenge in South Africa, the UK, Australia
or the rest of the world, we offer a dedicated and service focused
recruitment solution unmatched by anyone else in South Africa.
[email protected]
Cell: +27 (0)82 823 9978
[email protected]
Cell: +27 (0)83 603 2961
\ȐȝȨɨȐɴɄɤɑȃǸɑȐȐɑȇȨɑȐȃɜȨɄȽ
Henda (FIA, FASSA)
qualified in 2001 and
has 12 years of industry
experience. She has
worked in life and health
insurance in South Africa
and Australia before she
joined the team in 2009.
Her hobbies include
running, tennis, camping,
herb gardening and 4x4 trips with her husband
and children.
PRICING ACTUARY
GI
0ɄɄȰȨȽȝȘɄɑǸȽȐɬȃȣǸȵȵȐȽȝȐѵ
Wilhelm (FIA, FASSA)
qualified as an actuary in 2004 and
co-founded SA3 (South African
Actuaries Abroad) in 2005 with
his wife Helena. He worked in the
Life Insurance Industry in both the
South African and UK markets
and gained his experience at some
of the major insurers in both
countries. His 3 kids take up most
of his spare time, but besides that, he is a keen traveller.
His hobbies include any sport that’s played with a ball.
Johannesburg
A position for a Qualified Actuary or Senior Student has become available within our client’s GI business unit. We are
looking for a candidate with relevant experience and good technical skills to take a senior role in the pricing team.
PRODUCT DEVELOPMENT SPECIALIST
LIFE
Cape Town
Our client is searching for a Senior Actuarial Student to join their Retail Life product team to assist the team in research,
development, pricing, implementation and managing their book of business. The successful candidate will have good
progress with the actuarial exams and good technical skills. Previous product development and knowledge of Prophet/
MoSes would be beneficial.
EMPLOYEE BENEFITS BUSINESS DEVELOPMENT
EMPLOYEE BENEFITS
Johannesburg
A position has become available for a Qualified Actuary with 3 to 7 years experience in either EB Life Insurance,
Distribution (Marketing Actuary) or Institutional Investments to take responsibility for the development of our client’s
EB business.
CONSULTING ACTUARY
LIFE
Cape Town or Johannesburg
Our client is searching for a Nearly/Newly Qualified Actuary to take a senior role in their Cape Town or Johannesburg
office. Responsibilities will include the full spectrum of actuarial services across a range of companies, including exposure
to leading industry and technical developments including Solvency II. Previous valuations or technical life insurance
background is required.
SENIOR SPECIALIST: SAM IMPLEMENTATION
INSURANCE
Johannesburg
Our client is searching for a Senior Specialist to advise on activities pertaining to SAM regulatory proposals and
implementation. Suitable candidates should have a relevant market, credit, insurance or operational risk qualification
with at least 3-5 years experience in insurance solvency or insurance risk related issues, preferably with experience of
Solvency II.
VALUATIONS ACTUARY
LIFE
Johannesburg
Our client is searching for a Qualified Actuary, with relevant experience to lead the actuarial reserving and the reporting
process of the company. The individual will be responsible for ensuring delivery of all corporate actuarial deliverables of
the company.
www.sa3.co.za
ACT.07.12.044-45.indd 45
20/6/12 15:34:15
› China
Inside Chinese walls
Trevor Watkins and Memoria Lewis report
back on their recent trip and on establishing
connections with universities in Asia
Representatives of the Profession recently
visited China and Hong Kong – as Jane Curtis,
past president of the Institute and Faculty
of Actuaries, mentioned in her column in
the May edition of The Actuary. Here, we
take a look at both ongoing educational and
member support work, and at initiatives
arising from our visit.
8
ALAMY
Reaching out to universities
We have now accredited two major
universities in Hong Kong, having recently
added the Chinese University of Hong Kong
to the existing accreditation at the University
of Hong Kong. Both universities have highly
regarded programmes in actuarial science.
They recruit students with top grades,
who go on from graduation to obtain much
sought-after employment in the financial
services sector.
The Society of Actuaries (SOA) has
responded to our accreditation initiative by
adding both universities to its shortlist of
university ‘Centers of Excellence’, so we now
have a firmly established base in Hong Kong
from which to compete more effectively
with the SOA.
We have also visited various universities in
mainland China, and have longstanding links,
developed predominantly by Chris Daykin,
with the Shanghai University of Finance and
Economics (SUFE) and the Central University
of Finance and Economics (CUFE) in Beijing.
Both universities have well-established
actuarial programmes at undergraduate
and postgraduate levels, attracting highquality candidates. This quality is evidenced
by the high success rate in those who pass
the Profession’s examinations while still
completing the course at university. At CUFE,
the success rate with the Profession’s exams
is much higher than the overall average,
especially with the early examinations.
During our recent visit to CUFE, we
agreed to pilot the use of revision courses
for specialist technical subjects over the
next year.
We have also established links with Peking
and Tsinghui universities in Beijing, often
referred to as China’s Oxbridge equivalents,
and have met contacts at Nankai University,
which probably has the strongest actuarial
The University of Hong Kong: one of two in the
region accredited by the Profession, which is
also building links with mainland universities
programme. We will continue our efforts
to build stronger links to add to the flow
of students in China who opt to take the
Profession’s exam.
The next step in our engagement will be
to work with UK-accredited universities that
attract many Chinese students. This process
will enable us to maintain links with those who
return to China after gaining their degree
and qualified for exemptions from some of
our early examinations. One way of putting
this into practice would be through the use
of affiliate membership. We are looking at the
best way of developing this approach.
Holistic problem-solving
On our visit, we were eager to learn from
our members and their employers what
the business drivers for actuaries were in
the region and what, in their view, set our
qualification apart from similar options – in
other words, why a FIA/FFA?
Unsurprisingly, in a growing economy such
as China, the sectors that need actuaries
are also expanding – and quickly. Insurance
companies such as New China Life, Taiping
Life, Ping An and the only Chinese reinsurer,
China Re, have our members in leading
positions. They can be seen as innovators in
the management of risk and in their approach
to actuarial science. Our members are also
represented in leadership roles across the
international consultancies and joint ventures.
The Chinese government is considering
a Solvency II hybrid model, in which our
actuaries are well placed to add value.
By the end of a week of asking questions, we
understood why this would especially be the
case. The FIA/FFA is highly regarded – not
only because of the rigour that the exams
require but also its unique approach to
problem-solving. Technical strength is a given,
but what sets our members apart is the ability
to approach and solve a problem holistically.
This is probably true anywhere in the world,
but we may not have previously articulated it.
To support our members in the region, we
will work closely with our colleagues at the
Chinese Actuarial Network (CANUK) and with
our enthusiastic volunteers on the ground, to
provide continuing professional development
(CPD) opportunities, student mentoring and
assistance with events.
In addition, we will be launching a newsletter
later this summer to announce presidential
visits, social and CPD events in the region and
general news.
Dr Trevor Watkins is director of education and
Memoria Lewis is director of member support
at the Actuarial Profession
www.theactuary.com
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› Q&A Hong Kong
Greg Solomon
Greg Solomon works for Swiss Re based in Hong Kong, specialising
in client and market responsibilities. Originally from South Africa,
he has spent 14 years working overseas, including the UK and Israel
What attracted you to Hong Kong
in particular?
I had made about half a dozen business trips
to Hong Kong – a fantastic city. Our Asia hub
city is Hong Kong, so it was the perfect place
for my move.
What were the main challenges you faced
when moving overseas?
There were the usual challenges of moving
to a new work environment, connecting with
new colleagues, creating a new social circle –
this affects anyone changing cities, let alone
changing countries.
Moving to Asia had the additional
challenges of language and cultural
differences. While there is a very good level
of spoken English, there are still plenty of
occasions when you find yourself at a loss for
words in a common language.
What are the main differences you have
found in working overseas compared with
working in the UK
It generally feels that people work longer hours
here than in the UK, but it’s hard to generalise.
The biggest change is the amount of travel,
which happens quite a lot in Asia when you
deal with multiple countries. I’m preparing for
two trips this week; Indonesia for three days,
then Taiwan for two days – a total flying time
of about 13 hours in a few days. The following
›
How did you find the role you are doing?
I knew the president of our Asia division – we
had worked together in both South Africa and
London, and I mentioned to him I was ready
for a move to Asia. We spent the next few
months looking for the right position for me.
SHUTTERSTOCK
Explain what motivated you to seek
employment overseas.
It started out as just a one-year assignment
from our Johannesburg office to our London
office, but lasted over a decade.
As for moving to Hong Kong, I had been on
several business trips from London to Asia,
and each time I got back home, found myself
looking forward to the next trip! That and my
desire for learning Chinese Mandarin was
when I decided to move to Asia.
GREG SOLOMON
week I will be in Malaysia for two days, then
Singapore for three days, then its back to
Indonesia a week later. Travelling like this has
pros and cons – some of it is really interesting,
other aspects are really tiring.
What is the most topical industry issue
facing actuaries in Hong Kong?
As my boss often says, “There is no such a
thing as Asia”. Each country is very different:
language, religion, culture, geography, food,
legal environment, growth, and so on – it really
is impossible to generalise.
However, there is in general across Asia a
shortage of actuarial skills, especially in the
so-called ‘emerging markets’.
What is the best thing about where
you work?
The office is multicultural, with people from
so many different countries, both Western
and Asian. This makes for a very interesting
environment to work in.
And the worst?
The local staff of course speak Cantonese
when casually chit-chatting among
themselves, which makes it impossible for me
to eavesdrop on office banter and gossip.
Tell us an unusual fact about Hong Kong.
It is the most ‘vertical’ city in the world. There
are nearly 8,000 skyscrapers – more than
any other city. About 36 of the world’s 100
tallest residential buildings are in Hong Kong.
Our Swiss Re offices are on the 61st floor –
and if I’m feeling particularly thirsty there is
a bar, complete with swimming pool, not far
from here up on the 118th floor.
Do you have any advice for others looking
for overseas work?
Do it, take a risk. If you don’t enjoy it then you
can always return home.
Try to learn the language. The extent to
which you have to learn the language depends
on the country. You’ll be ok as long as you
can tell the difference between the men’s and
ladies’ toilets, and to know whether you’re
ordering fruit or frog’s uterus at the local
restaurant - and no, I’m not kidding…
Would you describe yourself as a global
actuary and why?
Having worked in four different countries, and
with my current role involving responsibilities
covering seven countries, yes, I would say
I’m ‘global’.
Where do you call ‘home’?
My ‘original’ home is South Africa, where I
was born; my ‘cultural’ home is the UK, having
spent 12 of my more recent years there, and
my ‘home home’ is Hong Kong, where I feel so
comfortable right now!
What is your favourite local custom and
do you join in?
It could be karaoke, which sometimes feels
like more of a religion than a mere custom.
I sing badly, but the beer helps. I discovered
that most people sing badly – but that’s not
the point of karaoke.
Have you learned a new language?
I now speak Mandarin, including being able
to read and type in Chinese – although I’ve a
long way to go before I will claim fluency.
Have you taken up a new sport/pastime?
This is the second year that I have joined the
company’s Dragon Boat team – that’s a lot
of fun!
How often do you read The Actuary
magazine? Do you read it online or in
print? Do your colleagues read it?
I read through every edition, although not
every article. Usually before a plane ride, I
might load a few interesting articles, and then
read them in-flight.
www.theactuary.com
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21/6/12 11:25:28
Working Abroad
Q&A
Advice from High Finance Group’s
Asia & Europe team
High Finance Group’s team spend
a considerable amount of time
advising people about what to
expect from an International
move. We have highlighted some
frequently asked questions and
the team have given their
responses below. This will give
an insight to readers thinking
about a move in the future.
A few of my friends have recently moved
abroad – what are the career advantages
of working overseas?
Clare: Working overseas is an excellent
way to capitalise on your UK experience.
You can use your advanced actuarial
skills and techniques in new markets
where you can really add value. At the
same time you will broaden your
horizons, meet new people and
experience all the rewards of living in a
new place with different culture & values.
Where are the growth markets
internationally for actuaries?
Clare: It’s very well known that Asia is a
rapidly growing market. Within Asia you
have the developed insurance markets
like Hong Kong, Singapore, Korea and the
new markets such as China and
Indonesia. All offer fresh opportunities, it
just depends on how radical you want the
change to be!
Damien: Mature markets like Switzerland,
France and Germany are lively with the
same regulatory developments we see in
the UK but there are increasing numbers
of opportunities across mainland Europe
as the role of the actuary develops.
Shall I wait until I have qualified before
making a move abroad?
Richard: It really depends on what you
are looking for and the amount of exam
support you are anticipating. UK Fellows
will stand out anywhere but mainland
Europe has a different route to
qualification. If you are still studying it is
essential to understand the local levels of
study support.
Does Life Insurance offer more
opportunities for an Actuary than
General Insurance?
Clare: In Asia the Life Insurance market is
considerably larger and Life Actuaries
currently command higher salaries than
their peers in General Insurance. The
Non-Life market is catching up and more
insurers are writing Speciality lines as
this is where the anticipated growth is
going forward.
Damien: The type of Insurance written
will evolve with the economy in Asia.
There is more stability in mainland
Europe with similar profile and demand to
the UK.
Can you give me some advice on what I
need to consider in making an
international move?
Richard: People often overlook how
important it is to understand the
differences between countries. It is
crucial you consider the tax, health and
social welfare benefits, work/life balance
and other day to day costs of living.
Yang: Luckily there are excellent websites
and consultants on hand to help you.
Is the work/life balance different in Asia
compared to Europe?
Damien: In Germany and Switzerland
there is a high focus on work/life balance.
Individuals can expect to work between
37h-40h a week plus paid overtime. It is
also possible to accumulate extra hours
and take these off as holidays. In addition
you can expect 30 days of holidays plus
12-15 bank holidays per year.
Clare: In Asia, there is a tendency to work
long hours but the expat lifestyle, vibrant
culture and proximity to the central
business district (CBD) can provide
handsome rewards outside of your 9-5.
I only speak English, will this make it
hard to get a job abroad?
Richard: At Group Level all that is
required is fluency in English;
nevertheless, companies will appreciate a
second language and speaking the local
language will always help. It really varies
role by role.
Yang: English is sufficient for senior roles
but often at analyst level you will need to
speak the local language. In places like
China and Taiwan it is essential that you
can speak Mandarin to a business level
so it is a case of reading the job
description for each role.
Are there financial advantages to
working abroad?
Richard: Usually companies considering
sourcing individuals from abroad are
struggling to find the right people in their
home market. Therefore very good
packages are being put together to
attract strong professionals from other
countries with good relocation support.
Clare: The tax advantage can be
significant however this might be offset
by a higher cost of living. Your actuarial
skills and international background will
command a premium and this may see
you promoted quickly.
I am really keen to move abroad, how do
I go about applying?
Clare: Essentially it is the same. Roles are
advertised on job boards/company
websites directly and through recruiters.
The difference is the time frame, which
can take longer and the logistics of
arranging meetings to factor in time
zones, locations and sometimes flights to
your interviews.
Damien: High Finance Group have an
extensive network across Asia & Europe you are welcome to contact us directly!
www.highfinancegroup.co.uk
To find out more on working abroad, contact one of our specialist consultants at High Finance Group on +44 (0) 207 337 8800
10
Damien Bernard
Richard Senger
Clare Bethell
Xueyang Wang
Senior Consultant - Europe
Consultant - Europe
Senior Consultant - Asia
Researcher - Asia
[email protected]
[email protected]
[email protected]
[email protected]
French, Italian, Spanish and
English
German, Czech and English
English
Mandarin and English
www.theactuary.com
ACT.07.12.048.indd 48
26/6/12 12:53:49
Tim McMahon is an
immigration adviser
with Commonwealth
Immigration Consultants
›
› Australia
TIM MCMAHON
Aussie rules
Tim McMahon casts an expert eye over the new UK immigration system
and how it affects the steady demand for actuarial skills down under
SHUTTERSTOCK
Actuarial professionals looking to work
in Australia should be aware that July 2012
will see the introduction of a completely new
selection model for skilled migration.
The new system will be called ‘SkillSelect’
and will be the standard process to apply
for residence through all the ‘general skilled
migration’ categories from July 2012.
According to the Australian Department of
Immigration, this new system is designed to
significantly reduce visa processing times
and address regional shortages.
The occupation of actuary is, of course,
present on the skilled occupations list for
residence visas and also for work visas.
The main entry requirement is a relevant
degree and work experience (professional
actuarial exams are not mandatory). SkillSelect
will also be available for migrants who wish to
be sponsored by an Australian employer on a
work visa, such as subclass 457, which allows
skilled applicants to work for up to four years.
Before one can apply for permanent
residence through SkillSelect, a migrant must
have received a positive skills assessment
and meet the basic entry requirements on
age, English language, recent experience and
so on. The skills assessment still remains a
vitally important and time-consuming part
of the process for actuaries. This involves an
assessment of the applicant’s qualifications
and work experience.
Prospective migrants must then submit
an expression of interest (EOI) and can then
subsequently be invited by the Department
of Immigration to make a skilled migration
visa application. These invitations will be
issued monthly. Migrants can also be offered
state sponsorship or employer sponsorship
after lodging an EOI. For instance, the state of
New South Wales lists actuary as a shortage
occupation in that state.
Only pre-approved employers will have
the option to access SkillSelect —allowing
them to locate and contact prospective
migrants that have shown an interest in
employer sponsorship through their EOI.
State governments will also be allowed to
access SkillSelect – so it is in one’s interest
to highlight the different states you are
interested in when applying for the EOI.
However, the main advantage to SkillSelect
is that it serves as a ‘one-stop shop’, allowing
A steady stream of actuaries
leave for Australia
migrants to make their details available
for selection by state governments and
employers. Under the current system, a
migrant would have to submit separate
applications to every state government and
every employer. This new approach is a real
benefit and will assist many more migrants
to have employment secured beforehand.
It also brings much more flexibility into the
system and allows migrants to put themselves
forward for different visa routes in the one
application. Actuaries should see real benefits
from this new system.
Most importantly, SkillSelect will still allow
actuaries to apply for and secure permanent
residence as independent migrants, without
state or employer sponsorship.
“For a long time Australia has proved a
highly desirable destination for actuaries
from the UK because of its combination of
climate, good economic outlook and
common language,” says Dr Geraldine Kaye,
managing director of GAAPS.
“We see a steady stream of applicants
wishing to travel and work there, but these
new changes are certainly worth bearing in
mind should you think about working there.”
UK immigration changes
So far in 2012, we have seen many changes
in UK immigration, reflecting the current
government’s policy of reducing migration.
The following is a brief summary of some
of these key changes:
• Tier 2 (General), the main category
for UK employers to recruit overseas
employees, usually requires the employer
to demonstrate that they have carried out
a recruitment search or ‘resident labour
market test’ before offering the position to
an overseas employee. However, certain
actuarial occupations (especially in life
assurance, general insurance, and health
and care sectors) are now exempt from
this ‘resident labour market test’ as they are
already seen as acute shortage occupations.
• The Tier 1 (Post Study Work) visa category
was closed to new applicants in April 2012.
Those who possess existing post-study
work visas can still remain and work in the
UK throughout the validity of their visa, which
can be up to two years in most cases.
• UK university graduates are now able to
switch into Tier 2 (General) employment,
if they have a skilled job offer from a
licensed sponsor and be paid at least
£20,000 per annum or the minimum
appropriate rate for the occupation.
The employer will not be required to
complete a resident labour market test
(advertising the post) and the job will not
be subject to the annual Tier 2 limit.
www.commonwealthimmigration.com
Please contact us through our website for any
assistance with Australian or UK immigration.
July 2012 • A SUPPLEMENT TO THE ACTUARY 11
www.theactuary.com
p49_supplement_mcmahon_FINAL•CT.indd Sec1:49
20/6/12 15:13:17
› Q&A Australia
Ilan Leas
ILAN LEAS
›
Ilan Leas has spent the past eight months working in the field of
reinsurance at Swiss Re, based in Sydney, Australia. Prior to that he
spent six years working in the UK, having moved from South Africa
What attracted you to Australia?
The lifestyle and the glorious sunshine stand
out as the key reasons – we spend most
weekends at the beach!
found working overseas compared with
working in the UK?
I find Australians work as hard, if not harder,
than their counterparts in the UK – it seems to
be a common misconception that if you live
close to the beach you get to finish work earlier.
Having said this, a lot of my colleagues get
out and exercise during lunch, which I’ve been
drawn into – running alongside the harbour has
a certain appeal. Australia also hasn’t really
struggled through a UK-type recession, so the
business mood is more upbeat.
facing actuaries in Australia?
Generally, the issues seem quite similar to the
UK – implementation of risk-based capital
standards, sustainability of pricing in some
market segments, new regulations, a strong
regulator and general persistency concerns.
you work?
There is a frequently stocked fruit basket and
we are offered a massage in the office once a
month – simple needs! Also, I can take a ferry
home on a good day and get to have dinner
with my kids on the beach.
12
SHUTTERSTOCK
moving overseas?
This was our second time moving countries,
so I won’t bore anyone with the typical
administration hassles. From a personal
perspective, making new friends and
becoming part of the community is always
the most difficult part, but we were lucky that
my wife could take six months off work to get
the family settled and make some great new
friends. In terms of work, coming to grips with
the Australian market, the work environment
and the subtle difference in cultures has been
interesting. There are a lot of expats here so
we’ve felt in good company, which has made
the move easier.
And the worst?
I’m still in that honeymoon period where I
can’t find too much wrong with the place. The
spiders and bugs take a little getting used to.
language. ‘Arvo’ (afternoon), ‘ripper’
(sensational), ‘ankle biter’ or ‘nipper’ (kids),
‘barbie’ (barbeque) and ‘thongs’ (sandals) are
all terms that take some getting used to.
Tell us an unusual fact about Australia.
Australia has the fourth largest pensions
market in the world, which is particularly
interesting given the size of the population.
On a lighter note, one of Australia’s exprime ministers still holds the Guinness
World record for beer drinking – 2.5 pints in
11 seconds – but he achieved this as a student,
not as part of his prime ministerial duties.
If you classify exercise in general as a new
sport for me, then yes. The one thing that
will keep me exercising through winter is
my plan to complete a 15km race called
‘ToughMudder’, which is an obstacle course
designed by the SAS that involves fire, electric
cables and mud. It’s worth checking out online
as they are held in a number of cities around
the world, but readers may want to wait and
see whether I survive first!
for overseas work?
It might be pretty obvious stuff, but I would say
the first step is to visit the country and find out
if it is a place where you could see yourself
settling down. Chat to people in the industry
to understand some of the market and job
challenges. If you are still serious about
moving, don’t be discouraged if a door shuts!
actuary and why?
I’ve had the good fortune to live and work in
three continents throughout my career, so I’m
sure this allows me to use the ‘global’ title.
Have you learned a new language?
Australians have their own abbreviations,
which I could almost classify as a different
What have you noticed that is
different to the UK from an insurance
market perspective?
A few of the interesting differences include:
• Nearly all risk insurance premiums are
reviewable and step up each year with age.
Clawback periods for advisors are typically
only one year.
• There is a compulsory requirement to
contribute to your pension fund (hence
the massive pension fund market) but no
compulsory requirement to buy an annuity.
• Aggregators haven’t taken off here in
the same way as the UK yet, nor has
bancassurance been as successful as in
the UK, although IFAs do write a substantial
amount of business through banks.
www.theactuary.com
p50_supplement_australia_leas_QA_FINAL•CT.indd 50
21/6/12 11:25:47
› Q&A Singapore
Alex King
ALEX KING
›
Alex King has spent the past six months working as head of
marketing at Pacific Life Re, Asia. Based in Singapore, he provides a
unique insight into the working and cultural practices
What motivated you to seek
employment overseas?
Having spent almost 15 years in the UK life
insurance market in a combination of both
reinsurance and with a bancassurer
(HSBC Life), I decided that it would be
beneficial for me to broaden my horizons
and experience first-hand how insurance
is conducted in another part of the world. I
hoped that my past experience and creative
mind would help me to build on already
established practices within certain Asian
markets, and to bring new ideas to our clients.
What was it that attracted you
to Singapore?
I had never been to Singapore before.
However, I had spent a reasonable amount of
time travelling throughout Asia and, on paper,
the place certainly appealed. Asian cuisine
is my favourite, so that was a big draw. I love
travelling, and Singapore is a great base from
which to explore the region. Bali, Thailand,
Cambodia, Vietnam and Malaysia are all
within a two- to three-hour flight, so in scope
for a weekend getaway!
What were the main challenges that
you faced?
Leaving the UK in the middle of winter
and landing in a climate that is almost
constantly at 32°C with 80% humidity
takes some acclimatising.
The other challenge was to transport three
cats from the UK to Singapore, and to get
them used to living on the 22nd floor rather
than having the run of the neighbourhood.
They have settled in well, and luckily haven’t
tried to explore the balcony area.
SHUTTERSTOCK
I had been considering an overseas role for
about 18 months. I was very open with both
my line manager and chief executive, and
they were very supportive and promised to
consider me for any overseas opportunities
that became available. The role was first
discussed with me around nine months
before I started. During that period, I twice
visited Singapore to get a taste of the local
environment, and also to meet my new team.
found in working and living overseas
rather than in the UK?
The office culture is very different. Offices
are typically a lot quieter than in the UK, and
staff here are often used to having their own
booths to work in.
Also, language can be a barrier. In Korea
and Japan, in particular, it is not uncommon
to have a translator present at the meeting.
This makes it challenging to fully understand
the true meaning of what is being said, which
you take for granted when dealing with most
clients in the UK.
In addition, being in a role that covers Asia
means that I do a lot of travelling. I usually
spend some time out of Singapore each
week, and every other week I will spend the
whole week away. This may sound attractive,
as I get to visit some great places. However,
business travel involves a lot of time away
from family and often travelling at unsociable
times. I regularly have to give up a Sunday
so that I am ready to start meetings on
Monday morning.
Tell us an unusual fact about Singapore.
Singapore has one of the highest rates
of lightning activity in the world. I have
seen some amazing storms so far, and
unfortunately have been caught unprepared
in one or two downpours.
What advice would you give to others
considering working overseas?
Do your research before deciding to move.
A visit beforehand is recommended if you
haven’t spent much time in the city where you
will be based.
I would also suggest writing down the main
reasons why you are making the move, and
the things that you value the most about
working and living where you are. This way,
you can make sure you are not giving up
anything that you would struggle to live
without. It will also act as a regular checklist
once you’ve moved, to make sure you are
fulfilling what you moved overseas to do.
What has been your most interesting
experience to date?
I have enjoyed tasting the local cuisine, and
the team here have been great at showing me
new places to go. However, for lunch one day,
I decided to venture out alone, and opted for
the local food court close to the office, which
serves a wide variety of meals.
I ordered a few small dishes without asking
what each one was. The dish I thought was
beef in black-bean sauce was disgusting.
Certain it was off, I took it back. I was shocked
to find out I had ordered fermented liver.
To say it is an acquired taste would be polite.
I will certainly make sure I never have the
opportunity to try this ‘delicacy’ again!
www.theactuary.com
p51_supplement_Singapore_QA_FINAL•CT.indd Sec1:51
13
20/6/12 15:14:59
› Q&A Canada
Dean Stamp
DEAN STAMP
›
Dean Stamp currently works in corporate actuarial at Manulife
Financial, based in Toronto. He has spent the past 13 years
working overseas, and provides an insight into his
experiences of life and work in Canada
employment overseas
A combination of the opportunity to expand
my career horizons with the opportunity
to experience a different culture and
living environment.
What attracted you to the particular
country that you are working in?
Canada in some respects is the best of
both worlds. On the one hand, it offers new
career opportunities and a different living
environment. However, from an integration
perspective, it makes for an easier transition
since much of Canada has British origins and
is generally English-speaking.
found in working overseas compared with
the actuarial profession in the UK?
The core actuarial skills that you learn in the
UK are applicable anywhere in the world.
The differences lie in the more specialised
actuarial skills/knowledge that are usually
acquired after the Fellow of the Institute of
Actuaries (FIA) qualification. For instance, the
Generally Accepted Accounting Principles
(GAAP) accounting basis in Canada directly
links liabilities to the assets backing the
liabilities. Liability modelling often requires
detailed asset modelling, which is a uniquely
Canadian valuation concept.
facing actuaries in Canada?
It is probably the same issue facing the UK
life industry – that is, the move to
International Financial Reporting Standards
14
SHUTTERSTOCK
I originally came to Canada on an internal
three-year secondment, transferring from
a UK company to its Canadian subsidiary.
However, at the end of the three-year
period, that Canadian subsidiary was sold.
I decided to stay and join the new company.
Subsequently, that company was acquired
by Manulife Financial – a leading
Canada-based financial services group
with principal operations in Asia, Canada
and the US.
(IFRS) Phase II for life insurers. However,
although the end goal for the life insurance
business worldwide is the same, given the
starting points are different by jurisdiction,
the path needed to get there is very different
– and challenging!
What is the best thing about working
in Canada?
The opportunity to work for one of the
largest life insurance companies in the
world. Manulife has major interests in
Canada, the US and Asia, giving employees
opportunities for exposure across
businesses and geographies – especially
if they work in a corporate area.
The learning experiences from working in a
global company are invaluable.
And the worst?
The commute! The main highway into
Toronto is the busiest in North America,
with up to 20 lanes in places. Add in the
Canadian winter, and the M25 is a breeze
by comparison.
What was the biggest surprise regarding
the country where you work?
With hindsight, I think I had a stereotypical
view of Canada before I moved here.
For example, I saw it as ‘up North’, with lots of
snow and ice. While parts do border the
Arctic Circle, other parts, such as Toronto,
are on the same latitude as the south of
France. Although there is plenty of snow in
winter, temperatures of 30°C and higher in
the summer are not uncommon. Usually,
at that point, we are looking forward to
the winter again!
What are the key attributes an actuary
or actuarial student would need for
working overseas?
I think anyone contemplating working
abroad, regardless of country, needs to be
flexible and willing to move outside their
comfort zone, both on a personal level and
in their career. From a work perspective, you
have to accept that there will be elements
of your new career where you will be back
at the start in terms of knowledge and
experience, with potentially a steep learning
curve ahead of you.
actuary and, if so, why?
Definitely – not purely because of moving
countries but rather as a result of working for
a global company. I do not consider simply
working abroad to define being a global
actuary, more that working abroad provides
opportunities to work for global insurers and
to gain that global perspective.
Canada. Other than for short-term
secondments, it becomes quite challenging
to live in one country but still think in terms
of home being somewhere else. That said,
I have not entirely forgotten my roots. I still
watch English football (and yes, I call it
football, not soccer) and will be cheering for
England in Euro 2012 – not that I think the
team has much hope!
www.theactuary.com
p52_supplement_Canada_QA_FINAL•CT.indd 52
26/6/12 11:26:47
› Q&A India
Nisha Khiroya
NISHA KHIROYA
›
Nisha Khiroya works as director, specialising in liability-driven
investment, at F&C Investments. Here she recounts her past
experience of moving to Mumbai and what she enjoyed so much
about her overseas secondment
How did you find the role you were doing?
I believe it was meant to be! An internal
secondment opportunity came along and it
was something that interested me; yet I was
slightly nervous given that it was a ‘head of…’
position, taking on a lot more responsibility.
I also needed to familiarise myself with life
insurance model office mathematics, which
I hadn’t used in practice for many years. An
informal chat with the department that was
recruiting went very well, and incidentally, as I
was flying on holiday to that part of the world,
I decided to meet the team already in place
in the company. While the office conditions
were much more basic than what we are
used to in the UK, other attractions about
the country swung my decision in favour of
this secondment.
What attracted you to India in particular?
Knowing the language and the culture
practised in the country was a big advantage.
I didn’t feel there would be any communication
barrier or any sort of additional training that
I would need to do my job well in India. Also,
in my experience, the city of Mumbai is one
of the safest. As a single woman, that was an
important factor in my decision to move there.
The warm weather, of course, was also one of
the attractions, given that I generally struggle
with the cold and dark winters in the UK.
At the time, there seemed to be lots of
challenges, but now when I look back, I feel
some were relatively minor. For example,
sharing the company car with colleagues,
all of us often going in different directions.
Personally, I remember initial days of not
having fresh pasteurised milk as a big issue!
SHUTTERSTOCK
employment overseas:
Working overseas had always been my
dream. The excitement of a new country and
culture, with the strong possibility of travelling
and seeing new places were the main
attractions. That said, it was also an important
factor in finding the right job overseas from a
career perspective.
In some parts of Mumbai, it is usual to get
UHT milk or fresh milk that needs boiling
before drinking.
There were many work-related challenges
and I hadn’t realised I would feel burnt out
after just one year! I often had to work very
long hours, with regular conference calls to
the UK from 6pm till late and dinner meetings
with consultants, and such like. I also had
added non-actuarial responsibilities, such as
managing accounts and expenses for the UK
team sent out there. My biggest challenge was
the constant revisiting of budgets to ensure
that a project proved viable for our business
and the partners we were teaming up with.
Managing the interests of three parties in
this project proved tricky and quite stressful
at times.
What were the main differences you
found working overseas compared
with the UK
Given that I was seconded to a project
that had to be completed within certain
timescales, the work-life balance was
relatively poor. However, there were times
when the project came to a temporary
halt, for example, when regulatory approval
was sought for the new business we were
proposing to carry out in the country. During
such times, I managed to come back home
to the UK or pursue my passion for travelling
around India.
What was the best thing about where
you worked?
It was only a 10-minute drive from where
I stayed. This is the shortest trip to work in my
entire working life so far.
And the worst?
Given that the office was in a relatively new
suburb of Mumbai, there weren’t many places
we could go for a quick sandwich, stroll or
shopping trip during lunch breaks.
What are the key attributes an actuary or
actuarial student would need to work in
your role?
• A lot of patience, as things can take longer
on average to come to fruition.
• Excellent communication skills in English
and preferably in the local language too.
• Strong business sense in order to drive the
project forward without getting bogged down
in small matters arising on a regular basis.
for overseas work?
In my view, working overseas, especially
when you are still single and your relatives are
self-sufficient, is one the best things to do in
your working life. It gives you a fresh outlook in
both your working and personal life. However,
the job should be something you really want
to do, so, before taking on anything, insist
on a visit to the country and spending a few
days there to see the work environment
and lifestyle.
Accommodation is also very important –
I would suggest going for serviced apartments
so that the worry and tension of repairs,
maintenance and even cooking is taken away
during long working days.
www.theactuary.com
p53_supplement_india_khiroya_QA_FINAL•CT.indd Sec1:53
20/6/12 15:16:37
› India
An Indian summer
for actuaries
JAGBIR SODHI
is a director of Swiss Re,
currently based in India,
where he focuses on the
health insurance sector
›
‘Incredible India’ is the strapline of the
Indian Ministry of Tourism, used to promote
the country to the world. India indeed
offers an incredible blend of economic and
demographic characteristics that differentiate
it from most other countries, including its
most frequently cited benchmark – China.
India’s population already exceeds 1.2bn1 and
if it continues to grow at the 1.35%2 per annum
witnessed over the past few years, we will
see a population of more than 1.5 billion by
2030, with India surpassing China as the most
populous country in the world.
The demographic profile3 is very young.
Approximately 50% of the population is under
the age of 25, while only 5% of the population
is over 65.
From an economic perspective, the rapidly
expanding middle class continues to enjoy
increasing income per capita – a major driver
for economic growth. Ongoing urbanisation
will continue to catalyse future growth, by
improving access to goods and services.
According to the International Monetary
Fund (IMF), India is ranked as the eleventh
largest economy in the world by gross
domestic product in terms of purchasing
power parity (PPP). PricewaterhouseCoopers
predicts that by 2050, the country will be the
fourth largest economy ahead of Germany,
Russia and the UK. India has enjoyed an
average annual real growth rate of 8%4 per
annum in recent years, a macro-economic
indicator that is being closely monitored by
both policymakers and investors.
However, inflation is a potential gamechanger for India, if the country cannot control
the risk of over-heating arising from high
growth coupled with spiralling commodity
prices, as witnessed in 2011.
16
Jagbir Sodhi highlights the rapid
growth of the Indian economy, in
particular the insurance sector, and
explains why the country reveres
the actuarial profession to almost
celebrity status
Insurance industry
Insurance has a deep-rooted history in India,
but in its conventional form, insurance dates
back to the establishment of the Oriental Life
Insurance Company in 1818. The first nonlife company in India was Triton Insurance
Company Limited, established in 1850.
In 1956, the Indian government nationalised
the life insurance sector by amalgamating
245 Indian and foreign life insurers to create
the Life Insurance Corporation of India (LIC).
Nationalisation of the general insurance
sector followed in 1972; 107 general insurance
companies were transformed into four distinct,
government-owned insurers. The Insurance
Regulatory and Development Authority
(IRDA) Act in 1999 liberalised the insurance
industry once again. More than a decade later,
public-sector insurers still dominate in both
life and non-life sectors, with market shares for
the year 2010-11 of around 70% and 59% for
life and non-life respectively.5
To show the scale of LIC’s operations, it
insures more than 250 million lives in India
alone and issued around 37 million new
policies in the financial year 2010-11.6 By
contrast, an insurer such as Aviva, the sixth
largest insurance group in the world, insures
around 45 million customers in 28 countries.7
However, insurance penetration in India is still
low when compared with most other markets.
The private sector comprises 24 life and
24 non-life insurers – of which three are
specialist, stand-alone health insurers – and
one state-owned reinsurance company.
Growth rates by premium in the life and
Membership statistics for Institute of Actuaries of India
250
15,000
Fellows
Total Members
12,000
200
9,000
150
6,000
100
3,000
50
0
0
2002
2003
2004
2005
2006
2007
2008
As at 31.3 of each year
2009
2010
2011
2012
Source: IAI9
www.theactuary.com
p54_55_supplement_sodhi_FINAL•CT.indd 54
20/6/12 15:17:35
JAGBIR SODHI
Incredible India: as well as historic sites such as
Udaipur Palace in Rajasthan, the country has
attractive economic and demographic features
non-life sector have been around 10% and
23% respectively for the financial year
2010-11.8 Health insurance, included within the
non-life category, has generally experienced
the highest growth rates over the past few
years, reflecting the growing demand from
Indian consumers and low penetration of
health insurance benefits.
Since the market reopened to private
insurers, foreign promoters have been
permitted to hold up to 26% equity in Indian
insurance companies. There has been talk,
of increasing the foreign direct investment
limits from 26% to 49%, but this appears
to have been deferred. The vast majority
of newcomers to the market are joint
ventures between Indian corporates and
foreign insurance groups. Several of these
foreign insurers were established in India
before nationalisation.
Beyond the attraction of tapping a largely
under-penetrated insurance market, India
offers some foreign insurers an opportunity
to hedge their domestic risk portfolios. For
example, many Japanese life insurers –
Sompo Japan, Dai-ichi Mutual Life and Tokio
Marine, and more recently Nippon Life and
Mitsui Sumitomo – have established joint
ventures in India. Japan has a low birth rate
and an ageing population, so investment in
India is attractive for these companies.
Actuarial profession
The Institute of Actuaries of India (IAI) is
the professional body for the actuarial
profession in India. It is also a full member of
the International Association of Actuaries
(IAA), which reflects the valuable contribution
made by the IAI and its credibility on the
global actuarial stage. Each year, the IAI hosts
the Global Conference of Actuaries (GCA) in
India, which is a popular forum attended by
actuaries from across the globe.
The IAI’s membership base over the past
decade has comprised a small, steady
number of Fellows (FIAI). As illustrated in the
graph opposite, FIAIs have numbered about
200-220 for most of this period. However,
the membership base of students rose
exponentially in the same period to around
12,200 in 2011, falling back to around 8,200
in 2012. The ratio of FIAI to total members
has been in the range of 2-3%, which is
significantly lower than in mature actuarial
markets such as the UK and the US.
The dramatic fall in membership over
2011-12 may be explained by an entrance
exam (ASET), launched by the IAI in 2011,
to ensure that the quality of new entrants
improved and that joining the profession was
a well considered decision. This will go a long
way towards protecting the reputation of the
actuarial profession in India.
The IAI has signed mutual recognition
agreements with the Institute and Faculty
of Actuaries in the UK and the Institute of
Actuaries of Australia, whereby Fellows of
each Institute can practise in respective
territories following a period of relevant
experience in the host country. Currently,
there is no reciprocal arrangement between
the IAI and any of the US actuarial bodies.
In recent years, the role of actuaries in
India has grown in both importance and
diversity. As a statutory requirement, all
licensed insurance companies must have an
appointed actuary, who is legally responsible
and accountable to the regulator IRDA.
The career opportunities for actuaries
in India are vast. Given the small number
of qualified actuaries and the growth of the
industry, practice areas beyond the traditional
areas of life and non-life insurance are yet to
be fully established. These include enterprise
risk management, capital management and a
wealth of general management and business
leadership opportunities.
The actuarial profession in India is
revered almost to celebrity status and has a
reputation for paying handsomely. Academic
hurdles are traditionally not a deterrent to the
many bright Indians who have been trained
from a young age to pass exams. Given the
enormous rise in student membership, the
challenge for many will be to strike a balance
between academic achievements and
developing commercial skills as they compete
for space in this evolving profession. However,
India’s attractive market dynamics mean there
is scope for the ambitious young actuary
to shape the development of the insurance
industry, as well as wider actuarial fields.
Jagbir Sodhi is a Fellow of the Institute and Faculty
of Actuaries, Institute of Actuaries of India, and a
member of the American Academy of Actuaries.
The views expressed in this article are his own and
not those of Swiss Re.
REFERENCES
1. Census of India, Government of India:
http://censusindia.gov.in/2011census/
censusinfodashboard/stock/downloads/Profiles_1/
PDF/IND_1.pdf
Planning Commission, Government of India:
http://planningcommission.nic.in/data/
datatable/0904/tab_207.pdf
2. World Bank: http://planningcommission.nic.in/data/
3. Census of India, Government of India (2001 split)
http://censusindia.gov.in/Census_And_You/age_
structure_and_marital_status.aspx
Swiss Re ERC Indian Insurance report
Population of India statistics: http://en.wikipedia.org/
wiki/Demographics_of_India
4. Planning Commission, Government of India:
http://planningcommission.nic.in/data/
5. IRDA Annual Report 2010-11:
www.irda.gov.in/ADMINCMS/cms/frmGeneral_
NoYearList.aspx?DF=AR&mid=11.1
[pages 286/497 and 297/497]
6. LIC website: http://www.licindia.in/about_us.htm
IRDA Annual Report 2010-11:
NoYearList.aspx?DF=AR&mid=11.1 [pages 287/497]
7. Aviva website: www.aviva.com
8. IRDA Annual Report 2010-11:
NoYearList.aspx?DF=AR&mid=11.1
[pages 285/497 and 296/497]
9. Institute of Actuaries of India website:
www.actuariesindia.org/member/
membership-statistics.html
www.theactuary.com
p54_55_supplement_sodhi_FINAL•CT.indd 55
20/6/12 15:17:55
› Q&A Germany
Peter Devlin
PETER DEVLIN
›
Peter Devlin moved to Germany 10 years ago to continue his
actuarial career. He now works as head of total rewards and
human capital, M&A, at Deloitte. Here he recounts his
experiences of life and work in the city of Munich
employment overseas
My wife and I had our first child while we were
living in London and wanted to avoid the
commute. Also, my wife is German and we
both like climbing the Alps.
Strangely enough, I was contacted out of the
blue and asked if I was interested at working
at Mercer in Munich.
Learning the language as many people in
Germany speak very good English. Schools
in the UK should put much more effort into
correcting the foreign language deficit
we have.
What are the main differences you
have found working overseas compared
with working in the UK?
The amount of travelling I do is greater as
Germany is much more decentralised
than the UK.
facing actuaries in Germany?
Within total rewards, many are questioning the
principles of the past two decades: pension
financing based on financial economics that
don’t really work as the theory would like and
compensation based on endeavouring to
‘align’ top pay with shareholder interests.
you work?
The variation in work and having built a
very successful team from nothing in just
five years.
18
ISTOCKPHOTO
What attracted you to working
in Germany?
The quality of life in Munich is extremely
good. It is close to the mountains and lakes,
and just a two-and-a-half-hour journey
(with the obligatory speeding fine in Austria)
to Italy. Plus, relative to London, it has
very good housing and schools that are
not expensive.
And the worst?
Doing an M&A-related project on a Saturday
afternoon when it’s sunny.
Tell us an unusual fact about Germany.
The population is falling by the equivalent of
Aachen (a town on the Western border with a
population of around 250,000) every year.
Do you have any advice for others
seeking overseas work?
Go for it. Even if it does not make financial
sense immediately, it is worth gaining the
experience, learning a new language and a
new way of looking at things.
Can you identify your international
experience with any particular well
known film or book?
I normally identify myself with Woland of the
Master and the Margarita, by Mikhail Bulgakov
– the mysterious gentleman visiting Moscow
with a gun-toting cat and his valet. The English
Patient, by Michael Ondaatje, gets mentioned
a lot in Germany, but usually refers to our car
industry of old.
actuary and why?
Actually, I used to do a lot of ‘global actuary’
international work and consolidation, but
at Deloitte I would see myself more as the
English actuary who can also do German.
My house near Munich. Also, where my
mother lives in north-east England – one can
have more than one home.
What is your favourite local custom/
tradition and do you join in?
I am relatively immune from traditions in both
Germany and England. They are all made up
anyway to suit the current politics of the day.
Have you learnt a new language?
German, although I tend to speak ‘consulting’
German that is some way from the ‘ur’ –
language of Goethe. I like the current English
fashion for putting ‘über’ in front of a noun to
emphasise it – for example, ‘über-boss’.
We do a lot of canoeing and climbing.
How often do you read The Actuary
magazine? Do you read it online or
in print?
In print every month, usually on a train ride.
Do your colleagues read it?
No, as they read Der Aktuar!
www.theactuary.com
p56_supplement_devlin_Q&A_FINAL•CT.indd 56
20/6/12 15:18:39
DO YOU HAVE
WHAT IT TAKES?
Insightful – Driven – Collaborative
Willis Re Analytics
One of the world’s leading reinsurance brokers, Willis Re is known
for its world-class Analytics capabilities, which it combines with its
reinsurance expertise to help clients manage their risk.
We have a diverse, global client base that includes all of the
world’s top insurance and reinsurance carriers as well as national
catastrophe schemes in many countries around the world.
We are always looking for talented Analytical professionals who want
to be part of our ever growing, industry leading, global team. Current
RSSRUWXQLWLHVH[LVWZLWKLQDFWXDULDOFDWDVWURSKHPRGHOOLQJ¿QDQFLDO
analysis and enterprise risk management.
If you are an excellent communicator with a keen interest in the
world of reinsurance, and a strong desire to contribute to a varied
and dynamic team in Europe, North America, Asia, South Africa or
Australia, we’d like to hear from you.
Register interest at
[email protected]
2JQVQ%QTDKU
For more information on opportunities in our global Analytics team,
visit www.willis.com/careers or apply directly to [email protected].
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www.theactuary.com
ACT.07.12.057.indd 57
19
26/6/12 15:11:36
www.theactuaryjobs.com
Appointments
A PPO I N TME N TS
To advertise your vacancies in the magazine and online please contact:
Katy Eggleton +44 (0) 20 7324 2762 or [email protected]
Specialist Recruiters
GENERAL INSURANCE
-
UK
LIFE INSURANCE
-
INTERNATIONAL
Broking Actuary
Deputy Chief Actuary
£95k - £125k + Bonus + Package, London
Up to HKD2.4m Package, Hong Kong
Exciting opportunity for a recently qualified Actuary to be embedded
within a Retrocession Broking team. You will join one other Actuary in
providing strategic support to the teams broking operations. For this
reason, superb communication skills are required. This role will grow to
give the successful candidate managerial team responsibilities.
Excellent opportunity to be Deputy Chief Actuary of this Global Insurer
which dominates in Asia. The role is highly strategic, determining where
the value is in the Asian business as you employ your actuarial expertise
to regulatory, statutory and financial issues. You will be comfortable
working with the Executive across functions and countries. The sizeable
team requires a progressive Actuary with strong leadership skills,
business expsure, technical knowledge and commercial acumen.
Head of Reserving
Head of Economic Capital - Asia
Up to HKD 1.2m Package, Hong Kong
Expanding Lloyd’s syndicate is searching for a nearly / newly qualified
Actuary with a reserving background to head up their reserving team.
The hiring manager is looking for an ambitious candidate who is ready
to step up into the role and wants a real challenge. The role will suit
someone who is technically strong and is looking for a management
opportunity. Communication skills are vital as the role will be required
to liaise with Underwriters and present to Board members.
Career making role to Head the Economic Capital proposition for this
market leading Insurer. They require a Life Actuary with international
experience of developing Economic Capital models to join them as they
develop a model which will be rolled out across Asia. You will work
closely with the CRO and lead a team of 4 with direct interaction with
local actuarial and risk teams. This will be ground breaking in content,
taking principles from Solvency II and applying it to varying markets.
Pricing & Capital Actuary
Pricing Actuary - China
Up to RMB 60k per month, Shanghai
Mid sized Lloyd’s syndicate is looking for a nearly / newly qualified
Actuary to work across pricing and capital modelling. The current
Actuarial team of six is a mixture of students and qualified Actuaries and
this person should be happy working in a small team and reporting to
the Chief Actuary. Candidates from any background will be considered
but capital and pricing experience will put you at an advantage.
Are you looking to make the move back to China? Our client is searching
for a Pricing Actuary to join their Chinese joint venture in Shanghai to
lead the pricing and product development innovation. An excellent
opportunity for a recently qualified Life Actuary to expand their horizons
and work on multinational / multidimensional projects, advancing their
career in Asia. You will have first class presentation and communication
skills in English and Mandarin at business level. Local salary package.
EUROPE
Economic Capital Manager
Senior Life Actuary
£60k - £90k Basic, Switzerland
€80k - €120k Basic, Munich
This highly profitable global insurer seeks a Part / Qualified Actuary to
be responsible for the analysis and enhancement of the Group’s
economic capital position. You will control regulatory reporting as well
as analysis and communication of RBC (Risk Based Capital), RBRM (Risk
based return measure), SST (Swiss Solvency Test) and Solvency II
results. English speaking role offering strong career path.
A leading German Insurance firm is looking for a highly qualified
Life Actuary to join their international team at group level. You will
be working on the forefront of such exciting topics as MCEV, IFRS and
Solvency II. This is the ideal opportunity for someone interested in
developing a strong international network and a fast paced career. UK
Actuarial qualifications is a bonus, English speaking role.
Head of Actuarial - Non-Life
CLARE BETHELL
Senior Consultant - Life
DAMIEN BERNARD
European Market Specialist
+44 (0) 207 337 8826
[email protected]
+44 (0) 207 337 8829
[email protected]
+44 (0) 207 337 1206 | +33 (0) 8 05 11 13 62
[email protected]
Fluent languages: French, English, Spanish, German
WILLIAM GALLIMORE
+44 (0) 207 337 8800
58
[email protected]
www.theactuary.com
ACT.07.12.058.indd 58
25/6/12 12:43:44
Darwin Rhodes’ well established UK Actuarial Recruitment Team is based in the heart of the City on Cornhill, and has been
helping actuaries find new roles across the globe since 1996. We work across Non-life, Life, Pensions and Investments at all levels
providing a range of services including retained search, advertised campaigns, and contingent solutions on a permanent and
contract basis.
Longevity research student
London
Ref: AJW 6414
Up to £45,000 + Bonus + Benefits
New business opps (Longevity reinsurance)
London
Ref: AAB 6402
£competitive + benefits / bonus
My client is a niche provider to the insurance industry operating in
An opportunity now exists for a strategically and commercially
astute individual to join a market leading firm and be instrumental
in identifying and delivering new business opportunities. You will
assist in the oversight of the strategy development for longevity
business and be responsible for nurturing and sustaining existing
key relationships. An appetite for client facing work coupled with
strong project management and negotiation skills are key for the
successful individual. Knowledge of longevity pricing is desirable
but not essential.
the retirement, long term care, protection and equity release space.
They are looking to expand their longevity research capability
and add resource in the form of a mid to senior actuarial student.
Reporting to the head of longevity you will have an insatiable
desire to work in the longevity space, be curious and want to
understand the intricacies of their work. A strong statistical
background and prior exposure will be advantageous.
Senior Investment Cons – Derivatives & Risk
London
Ref: AKW 6422
£competitive
Capital Actuary
Due to rapid expansion, a great opportunity has arisen for a
Senior Investment Consultant to join the Investment Team for a
large global financial organisation. Key responsibilities include
participating in corporate advisory, corporate strategy projects
such as LDI shock-test modeling, asset liability, designing and
implementing derivatives solutions. You will be the point of
contact with clients on scheme risk and investment strategy.
Candidate must be newly/near qualified Actuary or a CFA
candidate and have at least 5 years relevant experience.
A market leading reinsurance company is looking for a Capital
Qualified Actuary
Qualified Actuaries required
Ref: AAH 6374
Central London
C. £90K - £100K + benefits
Central London
£70k
Ref: AVC 6408
Actuary to join their relatively small team of Actuaries. Reporting
to the Chief Actuary, the role will involve calculating the annual
Individual Capital Assessment (ICA) and Solvency II Internal
Model as well as performing quarterly and ad-hoc capital
calculations. The ideal person will be able to hit the ground
running and will have a solid capital modeling background as well
as experience in ensuring Solvency II compliancy.
Ref: CC Qualified
UK wide
Up to £95,000 + benefits
A Lloyd’s managing agency with a strong reputation in the market
We have a number of clients seeking experienced and qualified
is seeking a qualified actuary to be the main actuarial resource for
actuaries for senior roles based in regional locations across the
Casualty business undergoing a mixed role of pricing, reserving,
UK. Urgent opportunities include, Corporate Actuary, Longevity
business planning and various other duties. Applicants should
Actuary, Investment Pricing Actuary, Financial Risk Manager.
be nearly qualified upwards and have strong general insurance
If you are keen to discuss your options in further detail, please
experience. This is an excellent opportunity to gain broad
apply today to be introduced to award winning and leading FTSE
exposure within a London market role.
employers that can take your career to the next level.
Head of Life Actuarial Reporting
South Coast
Ref: AAB 6111
C. £70,000 + Benefits & bonus
Senior Consultant – De-Risking
This role carries responsibility for providing guidance and advice
on the reserving assumptions, Capital requirements and ALM for
the Life trading business. You will be leading a high performing
team and be responsible for maintaining the development of
their skills and knowledge as well as defining and delivering best
practice in line with industry standards. You will be a qualified
actuary with significant Life experience, a holder of a Life
practising certificate and possess excellent working knowledge of
capital modelling and ALM.
Due to company re-structure and rapid expansion, our client is
seeking a Senior Consultant to join their De-risking Team. The key
responsibilities include participating in corporate advisory on derisking solutions to insurance and instutional clients, oversee the
pension liability modeling, designing and implementing de-risking
solutions, and participate in client pitches. The ideal candidate
must be a qualified Actuary and/or CFA qualified, with at least 6
years experience in pensions. Have a good understanding of the
insurance industry and is able to meet deadlines.
Ref: AKW6423
London
£competitive
To be considered for any of these vacancies please telephone the actuarial team or
e-mail your curriculum vitae to:
020 7929 7667 [email protected]
Darwin
Rhodes July.indd
ACT.07.12.059.indd
59 1
59
26/6/12 11:11:40
11:23:18
London : Chicago : Hong Kong : Singapore : Shanghai
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leader, with a large P&C reinsurance solution portfolio in the
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+44 207 481 8686
Global consulting group with an impressive portfolio of
medium and large institutional pension fund clients are looking
to strengthen their London investment consulting team with a
Senior hire to focus on leading existing client relationships and
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to offer more general investment advice in a wider consulting
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60
THE ACTUARY • June 2012
ACT.07.12.060.indd 60
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25/6/12 12:28:58
www.pwc.com/uk/jobs/actuarial
There’s more to us
in Manchester than
you might think
London
Edinburgh
Manchester
Bristol
Andrew James, Director – Actuarial
Actuarial Opportunities with PwC
Join our Actuarial practice here in the heart of Manchester – a team of experienced industry
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www.pwc.com/uk/jobs/actuarial
© 2012 PricewaterhouseCoopers LLP. All rights reserved.
ACT.07.12.061.indd 61
26/6/12 08:32:56
Appointments
High Finance Group
Are you a top seeded Actuary?
High Finance Group are dedicated to offering bespoke career advice to Actuarial professionals across Life, Non-Life
and Pensions. We are focused on providing a career management service including CV advice and salary
benchmarking with a view to the long term to ensure you get the best out of your career.
Senior Manager – Capital Modelling
Up to £90k + Benefits, London
This FTSE listed insurer is looking to appoint a nearly / newly qualified Actuary
to join the Capital team at a Manager grade. The ideal candidate will have in
depth knowledge of Igloo and be looking to step in to a managerial role.
Knowledge of risk implementation would be beneficial. You will be responsible
for reviewing and validating economic capital submissions, presenting reports
to senior stakeholders and embedding capital results.
[email protected]
Associate Director – Ratings Actuary
The successful candidate will join a team of over 20 across Europe and play a
pivotal role in the analysis and ultimately the ratings of client insurers in the
EMEA region. As well as insurers you will also be responsible for insurance
derived securities. Main responsibilities include establishing working
relationships with senior management as well as providing timely indepth
analysis. [email protected]
Capital Modelling Analyst
£40k - £50k + Benefits, London
Opportunity to join a London Market Insurer looking to add a part-qualified
Actuary to their Capital team, to assist in the development of the syndicate
capital model and support the capital team. This is a fantastic opportunity to
join a commercial environment in which you can develop your skills. To be
successful you will be part-qualified and be familiar with modelling software
such as Remetrica or Igloo. [email protected]
Senior Pricing Analyst
Opportunity for a part-qualified actuary to join an leading syndicate, providing
support to the Pricing team, with exposure to senior management and working
closely with the underwriters. This opportunity will offer the chance to work
within a supportive environment in which you can qualify as an actuary. The
ideal candidate will have previous General Insurance experience and be
part-qualified. [email protected]
Pensions & Investments Analyst
Join this highly regarded consultancy to advise a portfolio of Trustees and
Corporate clients. You will gain additional exposure to Pensions Risk
Management and Investments, ensuring clients are provided with an
individual, tailored service to suit their needs. This is a fantastic chance for a
part-qualified actuary to accelerate their career progression, gain increased
client exposure and play a key part in a variety of projects.
[email protected]
62
+44 (0) 207 337 8800
ACT.07.12.062.indd 62
Research and Development Actuary
A truly unique proposition to really test your ability as a commercial Actuary at
this leading UK insurer. With genuine ownership and the freedom to explore a
variety of new products, the applications of longevity and the broader market
risk modeling this role will be a crucial part of the future development of the
business. This role will offer direct communication into the top level of
management. [email protected]
£55k - £90k + Benefits, London / South East
ALM Actuary
A fantastic opportunity to join an industry leading ALM team. The successful
candidate will become instrumental to the strategic and tactical asset
allocation, implementation of hedging strategies and assessing new
investment classes. The role and caliber of the team will suit an ambitious and
confident candidate. Previous ALM experience from a Life Insurer is preferable
but not essential. [email protected]
£50k - £60K + Benefits, South Coast
System Developer
This niche life insurer is seeking an experienced Actuarial Systems Developer
to play an integral role in the business. This will include MoSes systems
development, coding in addition to a variety of projects, some with an
international focus. The role offers excellent potential for longer term
development as you will be required to work independently and initiate ideas
within the team and other business areas. [email protected]
Financial Risk Analyst
Up to £40K + Benefits, London
A leading Life Insurer is looking for a part qualified Actuarial student to join
their Financial Risk Department. This role includes analysing the change and
data of financial models and liaising between both the Risk and the Actuarial
Department. This is a perfect opportunity for a student actuary to develop
their career alongside high calibre risk professionals and qualified Actuaries.
[email protected]
Actuarial SQL Specialist
A market leading Life Insurer is looking for a technical student Actuary to join
their Research and Development team. This exciting role would be ideal for
someone who has excellent SQL experience to build and manage the mortality
investigation systems. If you are looking to broaden and develop your
technical SQL skills in an influential and commercial environment, then this is
the role for you! [email protected]
[email protected]
25/6/12 15:24:58
Strategic, ambitious, influential.
That makes two of us.
GI Pricing Actuary
Up to £83,571 + excellent benefits
Stratford-upon-Avon
Here at NFU Mutual, we’ve recently celebrated 100 years of providing great service. From our humble
beginnings in 1910, we’ve passed milestone after milestone to grow into a leading UK insurer and financial
services company with an award-winning portfolio of products.
As GI Pricing Actuary you’ll provide the basis for sound financial decisions across our General Insurance
portfolio. With a real opportunity to drive and develop the sophistication of our pricing strategies, you’ll
bring new ways of thinking and doing to the business. Ambitious and commercially-minded, you’re a
qualified Actuary (or have plenty of experience working at a similar level) with a strategic, forward-thinking
approach to your work and a strong background in statistical pricing techniques. An influential and
inspiring leader, you’ll have the gravitas and credibility to win the trust and confidence of a wide range
of people. In return, we offer a competitive benefits package and ongoing professional development,
as well as a unique working environment.
For more information and to apply, please visit www.nfumutualcareers.co.uk and enter ref: 3610/12/01.
Closing date: 12 August 2012.
We are an Equal Opportunities Employer.
ACT.07.12.063.indd 63
63
26/6/12 08:33:58
Appointments
Policy Manager
London, Oxford or Edinburgh
Please see page 13
The Actuarial Profession is committed to playing a proactive role
in all sectors our members work in. This includes the impact their
work has on financial services and the broader public,
considering economic, financial, demographic and social factors.
As an employer, the Profession is able to offer a refreshing and
rewarding environment as well as the chance to influence
regulation, wider financial services and key issues, whilst giving
back to the industry.
The Policy Manager role will require technical knowledge and
some public affairs experience or aptitude. The Policy Manager
will ideally hold an actuarial qualification or another professional
qualification in finance. He or she will be required to use this
expertise in liaising with senior members of the Profession to
gain technical input on policy and research questions and to
work with this material to create effective policy communication
programmes aimed at wider public audiences.
In the public affairs arena, we aim to speak out and facilitate
debate on relevant matters of public interest where our expertise
can add value. We hope to inform public policy development,
with contributions based on evidence and our expertise, working
in a collaborative approach with UK Government and other
stakeholders.
The successful applicant will be able to demonstrate strong
communications skills and an active interest in the public affairs
environment affecting the actuarial market place.
The Role
To support an increased focus on public affairs, the Profession is
looking to recruit a Policy Manager who will be a key member of
an expanded public affairs executive team. In conjunction with
the two existing Policy Managers (see page 13), the job holder
will provide dedicated support to the Profession’s members in
this area by monitoring key policy areas and contributing to the
development of the Profession’s public statements and
consultation responses, ensuring that they are based on
research, clear analysis and cogent arguments.
The Profession is an Investor in People. We are committed to
supporting the learning and development needs of our
employees and we offer a competitive range of benefits and
flexible working arrangements. Our offices are based in London,
Oxford and Edinburgh.
To apply, or to discuss this opportunity further, please contact
Miranda Wilkinson on +44 (0) 207 337 8815 or email
[email protected].
The closing date for applications is Monday 16th July.
High Finance Group
High Finance Group is working in partnership with The
Actuarial Profession for this role. Any CV’s sent directly to
The Actuarial Profession will be forwarded to High
Finance Group for initial assessment.
“Client focussed, result driven executive search
professionals, with broad experience.
Their drive to go the extra mile to best
serve client needs is seldom seen.
Thorough industry knowledge.”
MD of EMEA Reinsurer
Eames Consulting Group provides
a full range of executive search
and interim solutions to the U.K,
continental Europe, the US, Middle
East and Asia Pacific regions from
their London and Singapore offices.
Our reputation has been built
through providing clients with the
speed and flexibility needed to meet
the demands of today’s business
environment. This is combined
with discretion; market insight and
a service offering which is truly
market leading. Our ethos is that
of Partnering. We work closely to
build a solid, long term relationship,
developing knowledge about your
business and its culture, to help us
find the right talent for you.
Pensions & Investments | Non-Life | Life & Health
64
The Actuarial team has dedicated
experienced consultants who are
industry specialists covering non-life,
life & health, pensions & investments
and insurance risk management
markets. We are experienced at
delivering from board level to nearly/
newly qualified actuaries. As a
business we are straight talking and
honest with our clients offering a
tailored process, for both search and
contingent solutions.
Please contact us directly for an
informal discussion about your
career aspirations and our current
assignments or how we can assist
your business in the future.
CONTACT
Rob Bulpitt
Head of Actuarial, Insurance & Pensions Risk
Management
020 7092 3237
Rupert Rickard
Manager of Actuarial Non-Life and Insurance
Risk Management
020 7092 3219
Office Number
+44 (0)20 7092 3200
For current opportunities please visit
www.eamesconsulting.com
UK | Europe | Asia Pacific
www.eamesconsulting.com
ACT.07.12.064.indd 64
26/6/12 09:41:38
Pricing Analyst - Life Reinsurance
London
SCOR is a top 5 global reinsurer operating in both Life and Non-Life Reinsurance. It has an enviable record of growth, financial
security and healthy results. Around the globe, SCOR’s teams are dedicated to ensuring that their 3,500 clients are always one step
ahead.
SCOR’s success is based on a customer focused approach which has led to the UK Branch winning a number of prominent industry
awards. Building on this success, the UK Branch is looking to recruit a qualified actuary to join their established protection pricing
team. This is an excellent opportunity to get involved in all aspects of pricing work, from research and transaction pricing to client
interaction and presentations.
The successful candidate will have strong technical and communication skills, preferably with previous protection / pricing experience. A competitive salary, benefits package and superb working environment are on offer.
For a confidential discussion to find out more, please call Clare Nash at Oliver James Associates
Clare Nash
Head of Life & Investments Actuarial
Tel: +44 (0)207 649 9350
Email: [email protected]
www.ojassociates.com
@OJAssociates
A name you can trust
Syndicate experience
needed
Solvency II
Lead
London, to £80,000
Surrey, to £70,000
My client currently oversees six
syndicates and is seeking two
capital modelling experts to
manage their UK operation.
They are happy to consider senior
PQ’s or post qualified actuaries –
it’s more about your expertise in
capital modelling than exam
progress. For one of the roles you
will be fluent in Remetrica with
previous experience of building
and designing models. Both roles
report directly to the chief actuary
and are based in the London office
but some business travel abroad
may be required.
Post qualified candidate with
experience in the UK Solvency II
process is required to help lead
this Life companies move
towards the implementation date.
The initial phase of this role will
be to design and develop the
process but is seen as a growth
opportunity and you will have the
potential to move into senior
management as SII becomes
BAU. Ideally you will have
working knowledge of MoSes
and be up-to-date with SII’s ever
changing regulations.
Contract Opportunities
If you are a professional contractor looking for your next role,
please call us for a confidential discussion about current vacancies.
We have numerous opportunities within Life, GI and Pensions across
the UK, including:
Capital Modelling Actuary
Pricing Actuary – UK – Life
UK – General Insurance
12 month contract
9 month contract – £900 per day
to £1,000 per day
Sol II Reporting – UK – Life
9 month contract
£1,000 per day
Prophet Developer – UK – Life
Initial 6 month contract
– likely to be extended
£900 per day
Reserving Actuary
Initial 6 month contract
– likely to be extended
£900 per day
Motor Pricing Actuary –
6 month contract – £800 per day
Please contact [email protected] for permanent enquires or [email protected]
for contract. Alternatively call: 020 7220 4774.
300 actuarial jobs online.
10 years in actuarial recruitment.
Offices in 13 countries.
reed.co.uk/actuarial
Reed Specialist Recruitment Ltd is an employment agency and employment business.
ACT.07.12.065.indd 65
65
26/6/12 13:05:22
Appointments
HEADS OF INVESTMENT STRATEGY
AND PORTFOLIO CONSTRUCTION
Employer: Coal Pension Trustees Investment Ltd
Location: London, UK
Salary: Competitive
Coal Pension Trustees Investment Ltd (CPTI) advises the Trustees and manages the
assets of two closed pension schemes; the combined assets of the two schemes are
around £20bn. Both schemes have stretching real return targets and can operate
in a dynamic, unconstrained manner across a very broad range of asset classes and
financial products. There is a strong sense of alignment throughout the organisation
leading to a culture of innovation and success. Due to an internal promotion the
organisation is looking for a replacement Head of Investment Strategy and has also
created a new role of Head of Portfolio Construction.
The Head of Investment Strategy will lead the strategic investment debate within
the CPTI team and with the Trustees, developing, articulating and converting Trustee
benefit objectives and tolerances into investment strategy. They will generate ideas
through the analysis of asset classes and investment themes globally, seeking to
identify significant investment opportunities in the medium to long term, reflecting the
Trustees’ vision for the schemes in a very challenging and intellectually engaging role.
The Head of Portfolio Construction is responsible for the decisions on the execution
and realisation of the Trustees’ investment strategy. A full knowledge of the breadth
of asset classes and the implementation vehicles available will be key, as will be a
willingness to use all of the available modes of investment implementation that best
achieves the Trustees’ objectives in both ‘beta’ and ‘alpha’ space.
Both candidates will be a part of the key decision making leadership group within the
investment team and must possess strong communication and relationship building
skills.
To apply please send your CV to our retained search firm Hutton Consulting at
[email protected]
The Insurance Strategy team formulates and provides multi-asset investment and risk
management advice and strategies for insurance companies. It also develops new products
and services.
Insurance Strategist – Director - London
Ref: 121288
Key Responsibilities:
•
Provide strategic investment advice to insurance clients and prospects as part of BlackRock’s
service offering.
•
Develop a thorough understanding of the implications of Solvency II and compile
appropriate investment and risk management strategies.
•
Help develop appropriate products and services for insurers’ guaranteed savings business.
•
Identify and discuss relevant market, regulatory and industry issues with clients.
•
Support development of multi-asset hedging solutions for insurers.
•
Develop knowledge of BlackRock’s existing capabilities, products and services and drive the
development of new services.
•
Support for the development of new business.
Insurance ALM Specialist – Vice President - London
Ref: 121287
Key Responsibilities:
•
Assist the Insurance Strategists.
•
Contribute to the creation of financial models for insurance business.
•
Specify and inform the modelling of insurance asset and liability cash flows.
•
Internal and external communication of modelling results.
•
Support development of multi-asset hedging solutions for insurers.
•
Conduct investment portfolio optimisations, risk analyses and sensitivity.
•
Support for the development of new business.
All 3rd party CV’s will be forwarded to Hutton Consulting.
Please send CV and covering letter to [email protected]
quoting the relevant reference number
theactuaryjobs.com is the
official job board for SIAS and
The Actuarial Profession.
To register for our Jobs
by email service simply
go to theactuaryjobs.com
theactuaryjobs.com
66
ACT.07.12.066.indd 66
26/6/12 09:43:21
DO YOU HAVE
WHAT IT TAKES?
Insightful – Driven – Collaborative
Willis Re Analytics
One of the world’s leading reinsurance brokers, Willis Re is known
for its world-class Analytics capabilities, which it combines with its
reinsurance expertise to help clients manage their risk.
We have a diverse, global client base that includes all of the
world’s top insurance and reinsurance carriers as well as national
catastrophe schemes in many countries around the world.
We are always looking for talented Analytical professionals who want
to be part of our ever growing, industry leading, global team. Current
RSSRUWXQLWLHVH[LVWZLWKLQDFWXDULDOFDWDVWURSKHPRGHOOLQJ¿QDQFLDO
analysis and enterprise risk management.
If you are an excellent communicator with a keen interest in the
world of reinsurance, and a strong desire to contribute to a varied
and dynamic team in Europe, North America, Asia, South Africa or
Australia, we’d like to hear from you.
Register interest at
[email protected]
For more information on opportunities in our global Analytics team,
visit www.willis.com/careers or apply directly to [email protected].
First Actuarial LLP is a partnership of consulting actuaries and administrators that offers the full range of pension services to both trustees and
employers. With nine founders, five partners and more than 130 staff spread across 5 UK offices (Basingstoke, Leeds, Manchester, Peterborough and
Tonbridge), we offer a locally owned service, nationally.
Due to continued new business success we currently have a vacancy for a nearly/newly qualified actuarial consultant within our fast-growing
team in Basingstoke.
For this role you will have developed strong technical and analytical skills within a consultancy environment, and be comfortable working within
a team on a variety of UK defined benefit pension schemes.
You will be responsible for managing a portfolio of clients and providing support to the local partners. Your role will include reviewing actuarial
calculations and reports produced by the actuarial support team as well as providing general consultancy support on a range of clients. Over
time you would be expected to become the main point of contact for your clients and develop strong client relationships.
Strong technical and communications skills are essential for this role as is a desire to take ownership of a client portfolio to help us deliver our
services efficiently and effectively to our clients.
Experience of using Superval would be helpful but not essential and remuneration will depend on experience and qualifications.
To apply, please send your CV and covering letter to declan.keohane@firstactuarial.co.uk
ACT.07.12.067.indd 67
67
26/6/12 10:11:35
Appointments
Contract Roles
General Insurance
Reserving
London - Up to £100k
Pricing Actuary
Midlands - £700-£1000pd
A leading insurance specialist requires a 12 month contractor on a
fixed term basis to support the Global Specialty Strategic Business.
You will work alongside underwriters and financial controllers, so the
ability to build strong relationships is important. Lines of business
include large global specialty accounts where you will be responsible
but not limited to the quarterly reserving process, presenting results
across the business, preparing and managing the Solvency II
technical provisions and documentation on a quarterly basis.
A Pricing Actuary is sought by a Large UK Life insurer to help
implement the Gender Neutral Directive.The role will be establishing
and suggesting the Gender Neutral rates for their life products, ahead
of the legislative change. Pricing experience at a UK Life insurer is
essential, and applicants should have experience in both using and
building pricing models in either Excel, MoSes or Prophet. The team
will be responsible for finding value-enhancing opportunities within
the portfolios, so a pragmatic approach to work is required.
Capital Modelling Actuary
Spreadsheet Modeller
London - Up to £850pd
South East - £400-£650pd
An International insurer writing business from all key European
offices requires a contractor for an intial 6months to assist the capital
modelling team. You will support the UK actuarial function and
business unit in relation to Solvency II whi will involve developing and
embedding the Solvency II internal model for European entities.
A large UK annuities provider requires a very strong VBA and Excel
modeller to amend existing pricing models and create new pricing
models. The role would suit an Actuarial student with previous Life
insurance and modelling experience and will require participation in
wider-ranging ad-hoc projects.
Pricing Contractors
Solvency II Actuary
London - £700-£1000pd
A property and casualty focused Lloyd’s Insurer is seeking a pricing
contractor. You will be involved with developing and maintaining the
rating models whilst working very closely with the underwriters. To be
considered you must have a high degree of pricing experience in the
Lloyd’s market.
68
Life Insurance
London - £700-£1000pd
A global Life insurer requires a qualified Actuary with strong Solvency
II and reporting experience to join their Solvency II team. You will
assist the development of the Solvency II Balance Sheet and
document and report the results to the Group. Current Solvency II
knowledge required, experience with Prophet or MoSes is desired.
Rupa Pithiya
Jack Snape
Contract Specialist - General
+44 (0) 207 337 1200
[email protected]
Contract Specialist - Life
+44 (0) 207 337 8810
[email protected]
ACT.07.12.068.indd 68
26/6/12 09:36:03
First established in 1987 Sue Hayes Actuarial Recruitment Consultants was the
first ever recruitment consultancy to specialise solely in the actuarial sector
NEARLY/NEWLY QUALIFIED ACTUARY - DUBLIN This role would suit a candidate
with a demonstrable understanding of governance, risk, compliance and controls which
need to be put in place when building new processes. You will be expected to act as a
bridge between the actuarial and the audit function as will be required to test the risk
frameworks which relate to actuarial processes. £Highly competitive
PENSION CONSULTANCIES I have numerous opportunities for a number of consultancies
throughout the UK for pension students and ex students with 6 months or more pension
consultancy experience. Please call for more information in the strictest confidence
PRICING ANALYST I am looking for someone with two years’ experience of pricing within
a life office. Reporting to the Pricing Actuary you will be required to provide input into the
development or protection products, assist with the execution of pricing strategy and the
development of a re-insurance programme and analysis of profitability and forecasting
SENIOR PENSIONS STUDENT My client is a well-established pensions and
investments consulting firm who are looking for a senior student or possibly a newly
qualified Actuary to provide support to the senior consultant. There is a variety of work
on offer and you will be working closely with the Scheme Actuary also providing drafts
of documentation and presentation of technical matters at meetings
18 MONTH FIXED TERM CONTRACT I am looking for an Actuary with a solid life
background for various projects with my client in the north of England. c £70k
GIBRALTAR NON LIFE I am looking for a senior non –life Actuary ideally with motor
experience or at least an understanding of the motor insurance industry from a consulting
perspective. Ideally you will a minimum of 5 years PQE and have a strong non-life background
as you will be expected to hit the ground running from day one. c£150k package
MANCHESTER CONSULTANCY is looking for a pensions student with 2–3 years’ experience
of working within a pensions consulting role. You must be making good progress in the
actuarial exams and have a good communication and management skills
NEARLY/NEWLY QUALIFIED ACTUARY LONDON Due to an increased workload my
client is looking to increase headcount in their Moses modelling team. Candidates must
have 2-3 years’ experience of developing the models from scratch and writing code on
a blank workspace within Moses. ALM modelling with Moses would also be highly
advantageous although not essential. Contractor also required.
INVESTMENT CONSULTANCY My client is a true market leader in the consultancy arena
who are now looking to increase headcount in their Investment division. They are looking
for Actuaries, students and ex-students with either an investment or pensions consulting
background to join their growing investment team. Salaries are dependent on experience.
Ideal candidates will have good academics, a strong technical background and excellent
communication skills. Whether you are actively seeking new opportunities or not please
contact us directly for a confidential discussion.
PENSIONS ACTUARY - LEEDS I am looking for a Scheme Actuary with a solid pensions
background. £75k package. Please call for more information
ACTUARIAL MODELERS I have a number of clients who are looking for actuarial
modelers. Candidates must have experience of MoSes, Prophet or VIP and have
advanced coding skills.
EX STUDENT Due to expansion, my client has an urgent need for an ex-student with
a pensions background from either a consultancy or a life office working on updating
funding calculations, member calculations, high level actuarial calculation, attending
meetings with the senior management team and mentoring junior analysts and checking
their work as required. Excellent opportunity. c35k
NON LIFE ACTUARY My client is a highly specialised mutual insurer based in London. Due
to increased workload they are seeking a non-life Actuary from either the Lloyds market or
a general insurer to join their existing team reporting to the company Actuary. Candidates
with a life background may also be considered although candidates from a non-life
background with strong technical experience particularly those with experience of capital
modelling and pricing will be considered in a more favourable light. This is a very fast paced
role offering a lot of variety of work across asset liability modelling, reserving, reinsurance,
risk assessment, retention modeling and longevity analysis. c£120k
SUPERVAL EXPERIENCE? I am looking for a junior and senior pensions student for several
opportunities with a leading pension consultancy. Ideally you will have 2–3 years’ experience
gained within a pension consultancy using SuperVal. Duties will include de-risking calculations,
valuation calculations, calculations relating to M & A and pension scheme design calculations
SCOTLAND NEARLY/NEWLY QUALIFIED ACTUARY required to work as part of a
model validation team. You must have a statistical background gained within a life office
and an understanding of the investment markets. You will be tasked with looking at
investment market performance from a risk perspective. Your skills may also be utilised to
look at non-market risk from a life company perspective.
6-12 MONTH PENSIONS CONTRACT Pension Consultancy in the north are looking for a
pensions Actuary, or possibly a very senior student, to support the Scheme Actuary c £70k
VALUATION ACTUARY – SOUTH My client is a prestigious life insurer requires a nearly/
newly qualified Valuation Actuary. You will be expected to hit the ground running and must
have previous experience of high level valuation work including: Balance sheet valuation
and reporting; FSA returns – including consolidations and ensuring prompt resolution to
FSA queries. You will have experience of financial reporting metrics either of the following:
ICA, Peak 1, Peak 2, EV, EEV or MCEV and be a proven team player. £market leading salary
with an exceptional benefits package.
INVESTMENT CONSULTANT I am looking for an Investment Consultant to report to the
Head of UK Investment. This is very much a client facing role supervising all phases of Asset
Transfers, Investment Strategy Reviews (including Asset Liability Reviews) and special
projects as well as assisting in the development and presentation of proposals for other
consulting services. Strong communication and interpersonal skills are a must. c£120k
LIFE ACTUARY SURREY I am looking for a nearly/newly qualified Actuary to initially
develop and manage Solvency 2 reporting processes to provide timely and accurate Solvency
2 Reserves and SCR results for internal purposes, FSA and EIOPA reporting. The initial phase
of this role will involve designing and building the processes. This will move to rolling out and
managing in a production environment as Solvency 2 reporting becomes established. This is a
growth role to offer a high potential candidate visibility to senior management, with significant
opportunity to develop into a broader more senior business role. c£60k
PENSIONS ACTUARY – LONDON My client offers niche investment and pension
consulting services to clients globally. They are true innovators who pride themselves
on being ahead of the curve. Due to increased demand they are now wishing to increase
headcount within their organisation and are looking for a senior Pensions Actuary.
Successful candidates will be expected to hit the ground running and gel with a close
knit team therefore it is imperative that you are an exceptional communicator with the
ability to pick up existing assignments and forge lasting relationships with long standing
clients as well as generate new business.c£100k
JOIN US I am looking for someone with at least 4 years’ actuarial recruitment
experience, combined with an excellent reputation in the actuarial sector. This is an
exciting opportunity for someone, ideally currently in a management role, to head
up and develop a team. I am also looking for a recruitment consultant with 1 year’s+
experience. Please call Sue on 07980 109218 in complete confidence.
To find out more about a particular role or if you are considering possible
future opportunities, please contact me for a confidential discussion
Tel: 020 7629 5555 Email: [email protected]
Evening and weekends please feel free to call Sue on 07980 109218
www.suehayesactuarial.com
Sue Hayes FP.indd 69
25/6/12 12:57:29
Appointments
RIS K & W I DER F IEL D S F UTUR E S
HEAD OF AUDIT
ACTUARIAL & INSURANCE
EDINBURGH (SOME FLEXIBILITY)
Up to £180k package
ERM ACTUARY
NON-LIFE
up to £170k package
LONDON, LEEDS OR NEWPORT
As Head of Audit for Actuarial & Insurance you will have a key
leadership role and the opportunity to work across life and
non-life product lines. You will influence finance strategy and
policy, working practices and standards.
Ref: Star1005
Our client is seeking qualified actuaries to identify the key
financial risks facing the GI business and ensure these are
being captured and monitored effectively within the Financial
Risk Framework.
Ref: Star683
CATASTROPHE RISK PRICING
MANAGEMENT CO
CONSULTANCY
LONDON
NON-LIFE
up to £110k + bonus + benefit
Our client seeks a part qualified or qualified actuary with
experience of catastrophe risk pricing to take an active role in
the strategic delivery of its catastrophe modelling solution.
Ref: Star929
LONDON
PENSIONS
up to £105k + bonus + benefits
Various opportuni
opportunities for actuaries with strong technical and
interpersonal skills
skill to get involved in projects that excite,
inspire and push things
hings forward. Applications from all
backgrounds
actuarial backgro
nds considered.
Ref: Star966
#starsummerofsport
Spot Prize #4 - is a competition to predict the official winning time (to the nearest 100th
of a second) of the Olympic men’s 100m final on 5th August 2012.
Simply email your name and prediction to [email protected] by 19:00 UK time on
27th July 2012. If yours is the first correct entry drawn at random on 13th August 2012,
then you will win a tablet PC up to the value of £700.
For full details of each spot prize competition as it is announced, register with our website,
email [email protected] or follow us on Twitter @staractuarial.
For full terms and conditions visit www.staractuarial.com/summer-of-sport-terms
INVESTMENT BANKING SOLUTIONS
LONDON
WIDER FIELDS
up to £80k + bonus + benefits
LONDON
WIDER FIELDS
Our client has exciting opportunities for talented individuals to
work with investment banking clients. Projects will include
stochastic modelling, asset valuation, financial instruments
and derivatives and risk management.
Ref: Star646
Our client is seeking talented individuals to provide
commercial modelling solutions to a wide range of problems
including credit risk modelling (both corporate and retail),
capital modelling and impairment provisioning. Ref: Star645
RISK MANAGER
STRATEGY LEADER
LONDON/EDINBURGH
MODEL GOVERNANCE
£ excellent + bonus + benefits
As Risk Manager you will identify high risk models and
provide a centre of excellence for model development. The
successful candidate will have a good understanding of
Solvency II internal model requirements.
Ref: Star681
Antony Buxton FIA
70
RETAIL BANKING SOLUTIONS
MANAGING DIRECTOR
M +44 7766 414 560
E [email protected]
THE ACTUARY • July
2012
ACT.07.12.070-71.indd 70
LONDON
MANAGEMENT CONSULTANCY
One of the world's leading management consulting firms is
seeking exceptional actuaries to join in its success. This
practice is recognised worldwide for its innovation, insight,
and expertise. Contact us for more details.
Ref: Star1061
Louis Manson
Joanne Young
MANAGING DIRECTOR
M +44 7595 023 983
E [email protected]
Operations Director
M +44 7739 345 946
E [email protected]
26/6/12 13:06:35
L IF E FU TURES
LIFE INSURANCE
TECHNICAL SOFTWARE SPECIALIST
SOUTH EAST
HEAD OF MODELLING
LIFE
HONG KONG
HK$ 1-1.3 million
As a specialist actuarial manager in this technical role you will
develop the capability of our client’s software. You will have
knowledge of American regulations and work closely with
partners in the US to provide enhanced solutions. Ref: Star1027
A fantastic Hong Kong based opportunity for a qualified Life
Actuary with a passion for software. This technical role offers
the successful candidate both high visibility and the opportunity
to make their mark in the Asia market.
Ref: Star1056
LIFE IS WHAT YOU MAKE IT
HIGH FLYING ACTUARY
LIFE
EDINBURGH
Seeking a leader with a strong knowledge of the life insurance
industry to work across a range of services. You will contribute
to the growth of the practice playing a significant part in new
business.
Ref: Star1034
ACTUARIAL LIFE ADVISOR
FINANCIAL RISK MANAGEMENT
EDINBURGH
An excellent opportunity for a qualified life actuary to assist in
the delivery of client engagements, managing or working as
part of a project team on client sites providing technical input
to a number of projects.
Ref: Star1018
SOLVENCY II STRESSED ASSETS MANAGER
LIFE
Up to £86k + benefits + bonus
BRISTOL
CARDIFF
LIFE
Seeking a qualified actuary to take up a key management
position within a growing life business. You will work closely with
the Board from day one and, as the first actuary in the building,
you can expect excellent career progression.
Ref: Star1024
OUR CONSULTANTS HAVE
70 YEARS’ EXPERIENCE
IN TECHNICAL
ACTUARIAL ROLES
LIFE
REAL WORLD RISK MODELLING ANALYSTS
EDINBURGH
An exciting opportunity for a qualified actuary to lead the
stressed asset production work stream. You will take the lead
on the analysis of market risks and will be a subject
matter expert.
Ref: Star1054
Leading provider of risk management solutions has opportunities
for actuaries to make an impact within their Real World
Modelling team. Knowledge and understanding of financial risk
Ref: Star977
management and asset allocation essential.
MAKE AN IMPACT
PRICING ANALYST
BRISTOL
ACTUARIAL ASSISTANT
As an actuarial assistant with this leading life company, you
will support the technical project team in the proposition of
actuarial bases for a variety of projects.
Ref: Star1046
INTERIM LIFE ACTUARIES (RDR)
MIDLANDS
6 MONTHS
up to £500 per day
LONDON
REINSURANCE
Seeking a part qualified actuary to support the delivery of new
business quotations for life, health and annuity products in
the UK and Ireland. A fantastic opportunity to specialise in
Ref: Star686
reinsurance.
INTERIM INTERNAL MODEL MANAGER
MIDLANDS
3 MONTHS
£ competitive daily rate
Our client is seeking interim life actuaries with RDR illustration
experience to join its team in the Midlands. Please contact us
for more information regarding these exciting opportunities.
Seeking a qualified actuary on an interim basis to lead the
design, development, testing, validation and documentation of
the Internal Model.
Ref: Star1052
Ref: Star1004
www.staractuarial.com
Irene Paterson FFA
Martine Scott-Gordon AFA
Lance Randles MBA
PARTNER
M +44 7545 424 206
E [email protected]
SENIOR CONSULTANT
M +44 7900 696 825
E [email protected]
SENIOR CONSULTANT
M +44 7889 007 861
E [email protected]
71
Star Actuarial Futures Ltd is an employment agency and employment business
ACT.07.12.070-71.indd 71
26/6/12 13:06:49
Appointments
P E N S I ONS & I NVESTMENT F UTUR E S
PARTNER/DIRECTOR
INVESTMENT CONSULTING
LONDON/NORTH
MANAGEMENT CONSULTANCY
PENSIONS
BIRMINGHAM/LONDON
Leading consultancy seeks qualified investment specialists to
drive London and Northern businesses forward. You will
develop and deliver solutions to a wide range of client problems
and will lead business development activity.
Ref: Star910
Seeking qualified actuaries to provide management
consultancy to corporate sponsors of pension schemes. You
will give specialist advice on risk solutions and scheme
financing. Join the partner track!
Ref: Star852
TRUSTEE ADVISOR
STRATEGIC RISK CONSULTING
DIRECTOR LEVEL PENSIONS
LONDON
A unique opportunity for a pensions actuary with significant
business development experience to build a trustee practice
for a leading consultancy. Contact us for more information.
LONDON
PENSIONS
Leading pensions consultancy seeks qualified actuary to join a
high-quality team providing project based risk solutions to
flagship corporate clients.
Ref: Star1013
Ref: Star1060
Star Actuarial is far and away the best recruitment consultancy
I have ever used. You have been proactive and imaginative,
bringing me lots of opportunities including those in areas that I
hadn't previously thought of exploring.
You take care over the details… I appreciated the high standards
of customer care… and would recommend your services
unreservedly. FIA 2001
THOUGHT LEADER
INVESTMENT CONSULTANT
HEAD OF LONDON OPERATION
LONDON
LONDON
As a qualified investment actuary you will work with the client
team, formulating and taking responsibility for advice whilst
contributing to the thought leadership of the business through
research and development.
Ref: Star1038
Our client is looking for a marketing actuary to head up its
London operation. As a qualified pensions actuary you will not
only manage the London office, but actively contribute to the
development of the business.
Ref: Star722
SHAPE THE FUTURE
SPECIALIST PENSIONS CONSULTANT
LEEDS
PENSIONS MANAGER
Our client has an excellent opportunity for an exceptional
candidate to join its pensions team where you will become a
genuine business winner, having the chance to help build the
practice and take a route to the top.
Ref: Star1050
Louis Manson
72
PENSIONS
MANAGING DIRECTOR
M +44 7595 023 983
E [email protected]
THE ACTUARY • July
2012
ACT.07.12.072-73.indd 72
MANCHESTER
MANCHESTER
Seeking a part qualified actuary to work with an extensive
client base, both corporate and trustee, providing innovative
solutions to clients. A client facing role with the opportunity to
specialise in a workstream of choice.
Ref: Star1035
Irene Paterson FFA
Carolina Emmanuel
PARTNER
M +44 7545 424 206
E [email protected]
SENIOR CONSULTANT
M +44 7841 872 575
E [email protected]
26/6/12 13:07:59
N O N -LI FE FUTUR ES
CHIEF ACTUARY
PROPERTY & CASUALTY
LONDON
HEAD OF CAPITAL AND RESERVING
NORTH OF ENGLAND
NON-LIFE
to £100k + bonus + benefits
As Chief Actuary of the P&C division you will report to the
CEO and have strong reserving and management experience.
You will manage reserve risk and assist in global insurance
and reinsurance projects.
Ref: Star988
Leading insurance group is seeking a qualified non-life
actuary to take up the role of Head of Capital and Reserving.
Please contact us for more details regarding this exciting
opportunity.
Ref: Star1010
PRICING ACTUARIES
CAPITAL MODELLING ACTUARY
COMMERCIAL & PERSONAL LINES
MIDLANDS
LONDON
NON-LIFE REINSURANCE
We have multiple vacancies for non-life pricing actuaries in
the Midlands. We are looking for all levels across both
commercial and personal lines. Consideration will be given to
strong candidates from other disciplines.
Ref: Star956
Our client has an exciting opportunity for a qualified actuary
to develop and update the internal economic capital model
for regulatory purposes (SST, Solvency II) and to support
capital reductions in the run-off process.
Ref: Star1041
COMMERCIAL LINES ACTUARY
MORE THAN MODELLING
EUROPEAN NON-LIFE
LONDON
LONDON
ECONOMIC CAPITAL ACTUARY
A unique opportunity to join a world leader in insurance. You
will act as a technical reference point and a guarantor of
actuarial professional standards whilst providing and
influencing the Commercial Lines profit centres. Ref: Star1007
As Economic Capital Actuary, you will review, validate and
challenge Regional/BU EC submissions from a non-life
perspective, whilst leading the production of reports for key
stakeholders.
Ref: Star982
ACTUARIAL MANAGER
RISK PRICING ANALYST
PERSONAL LINES
SOUTH EAST
SOUTH EAST
HOUSEHOLD
As an actuarial manager, you will have the opportunity to work
with some of the biggest names in insurance, developing
leading-edge reserving analysis for the portfolio of brands and
working across many business areas.
Ref: Star1051
As pricing analyst you will be responsible for the delivery of
pricing excellence with particular focus on risk pricing and
tactical responses to the market in respect of retail prices.
REINSURANCE BROKER
INTERIM NON-LIFE CAPITAL & RESERVING ACTUARY
Ref: Star1047
NON-LIFE
LONDON
3-6 MONTH CONTRACT
£1,000-£1,500 per day
An industry leader in capital markets is seeking a part qualified
actuary to provide technical analysis and modelling in support
of broker transactions across all broker units, contributing to
client development and research.
Ref: Star935
Our client is looking for a qualified interim non-life capital &
reserving actuary for 3-6 months to start ASAP. Location upon
application. Please get in touch for more details.
NON-LIFE ACTUARIAL CONSULTING
BEYOND TRADITIONAL ACTUARIAL BOUNDARIES
BERMUDA
Ref: Star1055
BERMUDA
BD$ excellent + bonus + benefits
LONDON
An exciting opportunity to join a world leader in insurance within
its Bermuda office. You will provide support to Bermuda-based
insurers, reinsurers and captive insurance companies, as well
as providing consulting services.
Ref: Star1022
If you have a passion for applying your skills in projects
reaching beyond traditional actuarial boundaries, then this
role with a global consultancy will offer you just that. Projects
include M&A, Solvency II & Business Analytics. Ref: Star1003
www.staractuarial.com
Antony Buxton FIA
Paul Cook
Lance Randles MBA
MANAGING DIRECTOR
M +44 7766 414 560
E [email protected]
SENIOR CONSULTANT
M +44 7740 285 139
E [email protected]
SENIOR CONSULTANT
M +44 7889 007 861
E [email protected]
73
Star Actuarial Futures Ltd is an employment agency and employment business
ACT.07.12.072-73.indd 73
26/6/12 13:08:14
Appointments
74
ACT.07.12.074.indd 74
26/6/12 10:23:50
020 8420 1818
T:
Actual Search
E:
W: www.actualsearch.co.uk
SEEKING THE EXCEPTIONAL
Senior Research Actuary
[email protected]
Group Life Valuations Actuary
London
To £100K
London
£70-110K
Provide best estimate pricing assumptions across a wide range of products for
leading reinsurer. Key role for qualified actuary who understands the concepts behind
mortality, morbidity & persistency studies. Opportunity to utilise your investigative,
analytical & problem solving skills. Exc. promotion prospects. Ref:2601
Prestigious & technical group role at one of the world’s largest insurers & reinsurers.
This team examines, measures & challenges valuations from overseas offices &
assesses risk whilst also seeking to implement control standards. Ambitious life
actuaries with modelling experience should apply. Ref:2607
Product Lead – EMEA
Capital & Solvency
London + Travel
To £90K + bens
London
£Excellent
Manage key aspects of product development & management of retirement &
savings products to include annuities, endowments, structured products, CPPI
& unit linked products. Suit a pricing or product devlpmt actuary with stochastic
modelling who enjoys the technical aspect & works well with others. Ref:2602
Technically challenging capital & solvency role for this leading global insurer.
Working autonomously & reporting to the head of capital you’ll manage the capital
situation & maintain & improve the ICA / solvency models. GI p/q or qual actuaries
with 3 yrs exp. in reserving or capital should apply. Ref:2608
Actuarial Assistant – Actuarial Services
Capital, Pricing & Reserving
Surrey/Berks
London
£40-55K + bens + study
£65-95K
Varied role for a newly created team that supports the finance & pricing functions.
Enjoy this key position working on the experience analysis system. Ideally suited
to a part qual. life actuary with a minimum of 2 yrs UK financial reporting or pricing
skills and good IT knowledge. Exc. prospects. Ref:2603
Global P & C insurer focusing on speciality lines needs a 2nd in command. You’ll
support underwriters & improve the pricing process, update the capital & solvency
models & assist with reserving duties. This varied & exciting role would suit a p/q
or qual. actuary who wants to broaden their skills. Ref:2609
Life Consulting – Work/Life Balance
Non Life Actuaries & Analysts
Surrey
London & international
£50-75K + benefits
£35-100K + bonus & bens
Is your job repetitive & mundane? Same day after day? Seek new challenges
at niche life consultancy. Nearly/newly qual. actuaries with career aspirations &
can do attitudes sought for varied role with Solvency 2 & AFH work to property
securitisation, M&A & pricing. Great work / life balance too. Ref:2604
Specialist global reinsurance broker urgently seeks analysts & consultants to
advise UK & international clients on pricing & capital issues. Varied duties incl.
modelling, analysis & client meetings with brokers & underwriters. Min 1 yrs GI exp
for junior role. Varied & vibrant environment. Training offered. Ref:2610
Simply The Best - Investment
GI Pricing & Solvency & No Commute
London
Surrey, Hants
£35-70K + bonus + benefits
£35-75K + study + bens
The best at what they do! The best talent in the industry! The best investment
opportunities around! Roles for analysts, consultants & technical people with ALM/
LDI expertise. Suit part qual. through to qualified actuaries or CFAs with 1 – 5 yrs
UK investment analysis or consulting experience. Ref:2605
Multi award winning GI insurer needs a p/q or nearly qual. GI pricing actuary &
a senior solvency analyst. Roles will involve product development, modelling,
ICA calcs, liaising with other teams & underwriters. Exc work / life balance. Flexi
working options. Must have min 1yrs GI exp. Training offered. Ref:2611
Pensions – move to Buyouts
Move from Pensions to Risk or Investment
London
London & Home Counties
£50-90K + benefits
Progress your career with this life insurer & join a focussed team where you’ll project
manage, lead negotiations & work closely with trustees to structure solutions.
Regularly meet EBCs, attend presentations & conduct analysis. Qual or nearly qual
actuary with strong UK DB pension scheme knowledge is essential. Ref:2606
£Excellent
Pensions students & actuaries. Industry leading consulting firm needs p/q
& qualified pensions actuaries for key client facing & support roles. Liaise with
investment managers, & assess liability issues. Client promotes from within so
perfect chance to move to other teams as opportunities arise. Ref:2612
To apply for any of these vacancies please phone 020 8420 1818, and speak to Peter or Norma
or apply online at www.actualsearch.co.uk or email [email protected].
www. a c t u a l s e a r c h . c o . u k
j o b s@a c t u a l s e a r c h . c o . u k
ACT.07.12.075.indd
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75
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25/6/12 08:37:20
15:54:46
Appointments
United Kingdom
General Insurance - UK
Head of Financial Reporting
Rick Davis
London
£155,000 + Bonus + Bens
A senior management vacancy within a global insurer. Reporting
to the board, you will be managing a team of qualified actuaries
and taking full ownership of the reserving and risk management
processes within a $1bn+ business.
Syndicate Actuary
Rick Davis
Capital actuary / analyst required for two London market organisations. The opportunities involve commercial capital management and capital allocation. Strong modelling skills are the only
prerequisite.
South East
£100,000 + Bonus + Bens
London
£100,000 + Bonus + Bens
Pricing Manager
Paul Francis
A strong Lloyd’s Syndicate requires a recently or nearly qualified
GI actuary. Reporting to the Chief Actuary, but working as part
of an underwriting team, you will complete Pricing, Reserving &
Capital duties, whilst mentoring junior staff.
Capital Modelling Vacancies
Ben Pitt
London
£100,000 + Bonus + Bens
Capital Actuary
Paul Francis
Two clients are looking for pricing orientated actuaries / statisticians at a senior level. One is a start-up London Market firm
whilst the other is an established player. Personal lines backgrounds will be considered for the roles.
London
£75,000 + Bonus + Bens
London
Syndicate Analyst
Ben Pitt
Several London Market insurers are looking for part-qualified actuaries for their Capital / ERM / Risk Management teams. Capital
Modelling experience is not required as excellent training with
industry leading software will be provided.
Innovative Lloyd’s Managing Agency is looking for bright, entrepreneurial actuaries for their core actuarial team. Duties will be
varied (pricing, capital & reserving) and excellent training will be
provided. Superb career potential and great work/life balance.
Regional Roles
Ben Pitt
Actuarial Analyst
Ben Pitt
London
£Competitive + Bonus + Bens
London
Market leading London Market insurer is looking for enthusiastic,
energetic and motivated actuarial analysts to join their impressive organisation. Duties will include Pricing, Reserving & Capital
with excellent career development.
We are currently handling opportunities with leading UK & multinational insurers in various UK locations. Roles vary from team to
team including Pricing, Reserving and Capital. Highly competitive packages on offer.
Contracts - GI - UK
Igloo Modeller
Rob Bentham
London
£1000/day - 6 Months
Senior Reserving Actuary
Stewart Cherry
A multinational insurer is looking for an experienced Igloo Modeller to join their team. Prior Igloo experience essential.
Pricing Actuary
Rob Bentham
An International Insurer is looking for an experienced qualified
Reserving actuary for a 12 month contract.
Remetrica Capital Actuary
Stewart Cherry
London
A global insurer is looking for four Pricing Actuaries across Motor, Commercial Motor, Non Motor and Specialty lines.
Reserving Actuary
Rob Bentham
London
A Lloyd’s Syndicate is looking to recruit a Capital Actuary with
Remetrica experience for 9 month contract.
London
London
Solvency II Actuary
Stewart Cherry
A London Market insurer is looking for a Reserving Actuary to
join their team. Prior London Market experience ideal.
76
London
An experienced Solvency II actuary is required to join a London
Market insurer on an initial 6 month contract.
General Insurance - UK
Contracts - GI - UK
General Contact Details
Ben Pitt
0207 310 8719
Paul Francis
0207 649 9469
RickACTUARY
Davis • June 2012
0207 649 9353
THE
Rob Bentham
Stewart Cherry
Email
[email protected]
Web
ACT.07.12.076.indd 76
0207 649 9351
0207 310 8651
25/6/12 12:33:35
United Kingdom
Life Insurance - UK
South East
£140,000 + Bonus + Bens
Finance Director
Patrick Flanagan
Are you interested in a second Line of Defence Group Risk role?
Experience of Liability models, ALM, Economic Capital, Risk
Management, Hedging and Solvency II are ideal. Excellent roles
if you’re looking to return back from contracting.
Highly commercial: an excellent role where you can broaden your
actuarial skills in a Group Finance role. The key requirement is to
increase the EV & profitability of the business while providing inspirational leadership to a sizeable team. Board level exposure.
London
£100,000 + Bonus + Bens
ALM Actuary
Clare Nash
Are you looking to raise your career profile? I have a number of
influential longevity positions- providing advice and guidance to
executive management on this key area of risk. Vacancies range
from research based to client facing.
London
London
Underwriting Actuary
Clare Nash
New and exciting- this unique hybrid role offers a mix of insurance and pensions risk work, and is a great way into a career in
investments. Suitable for a qualified actuary- insurance derivatives experience required.
Nearly/Newly Qualified
David Parker
South East
£100,000 + Bonus + Bens
Longevity Actuary
Rachel Kelly
Are you interested in working for a prestigious name in the industry? Due to expansion, my client seeks an experienced professional to help grow their team. You will have an investments flair
to your CV and enjoy a broad position.
Risk Manager
Rachel Kelly
London
£110,000 + Bonus + Bens
Risk & Model Actuary
Patrick Flanagan
An unusual position has arisen within a global player to get involved with cutting edge, technical / commercial work. The ideal
candidate will come from a pricing / modelling background and
enjoy client interaction at the highest level.
South
Group Actuarial Analyst
David Parker
CAREER OPPORTUNITY: My client, a market leading insurer, is
expanding their actuarial team and looking for talented individuals to play a pivotal part in their growth. Risk, capital, pricing and
investments experience desired.
London
Have you gained financial reporting experience as an actuarial
student? A global insurance group is looking for exceptional students for their flagship city office. Exposure to Solvency II, Risk
Management. Full study support provided.
Contracts - Life - UK
Senior Actuary – Assets Experience
Kaylash Kukadia
Pricing Actuary (Manager)
Stephen Hardy
South
My client is looking to recruit a qualified pricing actuary with UK
protection & annuity experience.
Looking for previous managerial experience. Also specific work
with assets (or liabilities) to tie them up under stress.
Solvency II Documentation Lead
Ik Onyiah
South East
£1000/day - 3-6 Months
Prophet Developer x 2
Stephen Hardy
Midlands
South East
You will be responsible for implementing a documentation quality
control cycle in our clients’ Solvency II programme.
My client is looking to recruit multiple prophet developers to assist with various modelling projects.
UK Wide
Actuarial Analyst – RDR or EU Gender Directive
Kaylash Kukadia
Actuarial Tester x 3
Ik Onyiah
Individuals with existing experience in these areas will take priority. New business illustrations experience also good.
Our client is seeking 3 part qualified actuaries to work on actuarial end user testing based work.
London
Life Insurance - UK
Contracts - Life - UK
Clare Nash
David Parker
Patrick Flanagan
Rachel Kelly
Ik Onyiah
Kaylash Kukadia
Stephen Hardy
Email
[email protected]
Web
ACT.07.12.077.indd 77
0207 649 9350
0207 310 8649
0207 649 9355
0207 310 8579
0207 310 8785
0207 310 8581
0207 310 8646
June 2012 • THE ACTUARY
77
25/6/12 12:34:04
dgsdfsfsdfsgsgsgsdgsdgsdgsdgsdgsd
Appointments
Asia
Regional Head of ALM - Life
Gary Rushton
Hong Kong
Excellent Package
Hong Kong
£££Competitive
Marketing Director - Life
Gary Rushton
One of the leading names in Asia is currently looking for a senior
actuary to lead and oversee the Asia division’s asset liabilities
activities. The successful candidate will be a qualified actuary
with extensive ALM experience.
Due to continued growth throughout Asia my client, a global reinsurer, is currently looking for commercially minded actuaries to
work within the regional marketing team. Qualified actuary with
strong communication skills a must.
Senior Business Development Actuary - Non Life
Asia
Toby Weston
£££Competitive
Corporate Actuary - Life
Alex Ince
Insurer who dominates their domestic market in a top Asian
economy is looking to expand internationally. Looking for commercially minded senior actuaries with skills in Pricing and Capital to help achieve their goal of being a world leading Insurer.
Market leading life insurance group is seeking an experienced
actuary to enhance performance in the regional businesses.
Requires candidate with a proactive attitude and broad skillset.
Only the top percentile of the market will be considered.
Hong Kong
Excellent Package
Europe
Head of Reserving/Pricing - Non Life
Patrick McMahon
Dublin
€120,000 - 150,000
Actuary Group Provisioning - Non Life
Julien Fabius
Amsterdam
€100,000
I am working with one of Ireland’s largest general insurers to
build their actuarial team. With a new Chief Actuary in place they
are now looking for a Head of Reserving and a separate Head of
Pricing. These are unique and exciting opportunities.
Reserving Actuary to lead the development of the ‘written report
to management body’ required by SII guidance. Head office role
within a global non-life insurance group. Strong provisioning
knowledge with strong communication skills required.
Germany/Switzerland
Consultancy Opportunities - Non Life
€70,000 - 90,000/CHF 100-130,000
Manuel Lovell
Risk Model Validation Consultant
Laurence Baken
Are you a qualified actuary ready to expand your skillset within
the international environment? Get involved in Solvency II development, Pillar 1 review, Reserving projects and potentially learn a
new language in the process.
We require someone with a solid numerical background, possibly
PHD with modelling / validation experience in an ALM or risk
management department required. You will contribute to innovative validation methodologies within a fast paced environment.
Brussels
€80,000
For Actuarial contract opportunities in Mainland Europe please contact Ben Moses on +49(0) 89 2206 1068 or [email protected]
78
Asia
Europe
Alex Ince
+852 5804 9224
Gary Rushton
+852 5804 9223
TobyACTUARY
Weston • June 2012
+852 5804 9042
THE
Benjamin Moses
Laurence Baken
Manuel Lovell
Niels van Nieuwkerk
Patrick McMahon
ACT.07.12.078.indd 78
+40 (0)89 2206 1068
+32 (0)2 401 22 49
+49 (0)89 2206 1003
+31 (0)20 716 8327
+353 (0)1 685 2413
Email [email protected]
Web
25/6/12 12:34:33
Oliver James Associates
About Us
Oliver James Associates’ Actuarial desk was set up in 2005, since then we have built the most integrated, experienced and successful actuarial recruitment team in the marketplace. This team of over 30 international consultants provides both permanent and interim
recruitment services, offering retained search, sole agency and contingency recruitment solutions.
Our success in Actuarial recruitment is based on strong relationships and long term partnerships with Actuarial professionals based
around the world, people who trust us as their preferred recruitment consultancy.
We cover Europe and Asia’s major insurance hubs by employing recruiters who have defined knowledge of each region, speak the
relevant languages, have developed an in-depth technical understanding of the actuarial profession and appreciate the key nuances that
affect global recruitment plans.
Our knowledge and expertise extend further than Actuarial recruitment. We have vertical market specialists who cover much of the
financial services market including Risk, Finance and Underwriting to name a few. Visit our website www.ojassociates.com to find out
more .
Below you will find information on some of our Actuarial key contacts.
Awards
Oliver James Associates was a winner at this year’s Recruiter Awards for Excellence. We were thrilled to not
only pick up the accolade of Best Banking/Financial Recruitment Agency 2012 but we were also shortlisted
for Best Client Service and Best Professional Services Agency.
Key Contacts
Life - Clare Nash
Clare joined OJAssociates in 2007 and
is now Head of the Life & Investments
Actuarial team. Her team focuses on
permanent actuarial placements within
direct insurers, consultancies, reinsurers,
regulators, rating agencies and banks.
Non Life - Paul Francis
Paul joined OJAssociates in 2007 and
has over a decade of recruitment experience. Paul is Head of GI Actuarial, Risk
& Compliance and focuses on assignments from recently qualified actuaries
through to senior appointments within
the UK General Insurance market.
Email:
Tel:
Email:
Tel:
[email protected]
+44 (0)207 649 9350
[email protected]
+44 (0)207 649 9469
Asia -Jonny Plews
Jonny has been with OJAssociates since
2004 and has been one of our most successful consultants. Jonny started and
developed the European actuarial team
to the largest in Europe (with over 24
senior consultants) and since 2011 has
been responsible for our offering in Asia.
Europe - Julien Fabius
Julien manages the team specialising
in representing Actuaries in the Benelux
insurance market across Life, General
Insurance, Pensions and Investments, in
both industry and consulting clients.
Email:
Tel:
Email:
Tel:
[email protected]
+852 5804 9200
[email protected]
+32 (0) 2 888 6051
UK - Ireland - Continental Europe - Asia
ACT.07.12.079.indd 79
Email
[email protected]
Web
Twitter
@OJAssociates
June 2012 • THE ACTUARY
79
25/6/12 15:45:18
Appointments
www.the-arc.co.uk
The Actuarial Recruitment Company
A fresh approach
Head of Capital roles
London
General Insurance
£Competitive
We have roles in smaller London Market businesses for a newly
qualified actuary or someone with a couple of years post qualification
experience interested in taking on a lead role for capital work. Igloo
or Remetrica knowledge would be beneficial for certain roles but
not essential for others. Individuals need to be pro-active and able
to manage the capital process and business integration as well as
managing small teams of one or two junior analysts. Ref: ARC25840
Broking opportunity
London
General Insurance
To £100K
This non-traditional actuarial role with a global reinsurance broking
business would provide an opportunity for a motivated and client
facing individual to gain experience of, catastrophe bond and
ILS pricing, reinsurance optimisation and design, catastrophe risk
modelling and other specialised project work. Potential candidates
may have a consulting, company or other broking background
and need strong technical and communication skills and a well
developed commercial outlook. Ref: ARC25841
Business Consulting Actuary
London Base / UK
Life
To £100K base + Car + Bonus
We are selectively recruiting for a qualified actuary to work as a business consultant with a blue chip consultancy on a small portfolio of large UK
life insurers. This role will suit an individual who may already be working in a wider context within a UK insurer and who is interested in working
with clients in a more business focused rather than technical actuarial capacity. Ideally you may have had wider project experience during your
actuarial career, and will relish the prospect of delivering services based consultancy advice interacting with senior management of UK insurers, and
contributing to the overall optimisation of insurance businesses as they continue to implement business models supporting major Programmes such
as Solvency II. An excellent package is on offer to suitable candidates. Ref: ARC25842
Contractors
UK
Life / Non Life
£500 - £1500 per day
If you are already contracting or considering doing so, please contact Roger Massey at The ARC. We are particularly looking for contractors with
capital modelling experience, ideally with Igloo or Remetrica skills for a number of non life roles. We are also looking for contractors with any of
Solvency II internal model development / testing experience or MoSes / Prophet developer skills on the life side. Ref: ARC25843
Call us anytime including evenings and weekends on 020 7717 9705 or email [email protected]
General Insurance
Andy Clark BSc FIA
GI (New Entrant), Life & Pensions Chris Cannon BA CFI DAT
Contracts
Roger Massey BSc MBA FIA
80
0781 333 7891
0771 122 8449
0781 398 9016
[email protected]
[email protected]
[email protected]
ARC
FP.indd 1
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21/6/12
25/6/12 17:10:54
12:22:30

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