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Inside: Paul Sweeting Q&A • Dilnot review • Predictive underwriting • Fiduciary management • Jobs

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Heart of the matterExamining the real risk factors

of heart disease

August 2011

Adjustment tonew mArkets cAn be tAken

A little too fAr.

www.hannoverlifere.com

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August 2011

Editorial

Circulation20 888( July 2009 to June 2010)

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TheActuary

The Institute and Faculty of Actuaries’ new Council took office with effect from 28 June and in mid-July I attended my first meeting. The agenda was designed in a manner that encouraged members to get to know one another better and agree what we needed to achieve.

We also discussed our priorities for the year, which was extremely useful for me as a new addition to the team. I feel proud to represent my profession in this way and thank those of you who have written in with your kind words of congratulations.

Our themes for August are investment and life insurance. Peter Gatenby, senior actuarial partner at Mazars, stands on his soapbox to comment upon the Dilnot report on long-term care proposals for the UK. The report has created significant media interest and promises to be well received by the public.

Our interview of the month is with Paul Sweeting, fellow member of Council and European head of J.P. Morgan Asset Management’s Strategic Investment Advisory Group. As if having a full-time industry role, volunteering for the profession and having a family is child’s play, Paul also holds a part-time post as professor of actuarial science at the University of Kent.

In upcoming events, SIAS urges you to keep your calendars free on the evening of 1 November for its annual general meeting followed by the Jubilee Lecture delivered by Roger Bootle, an honorary fellow and leading economist. The Actuary had previously published an interview with Roger in November 2009 (www.TheActuary.com/870189) and in this lecture Roger will discuss the changes needed to make the financial system resilient to a repeat of the financial crisis.

The process for appointing The Actuary’s next editor is under way and we plan to make an announcement on these pages soon. Watch this space!

Finally, the team has been working feverishly to launch our new website at www.TheActuary.com. We hope you approve of the results.

Marjorie NgwenyaEditoreditor@the-actuary.org.uk

Striding forwards

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August 2011 3

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ContentsTheActuary

August 2011

Editorial advisory panelPeter Tompkins (chairman), John Batting, Margaret de Valois, Matthew Edwards, Martin Lunnon, Richard Purcell, Andrew Smith, Chris Sutton, Sherdin Omar

EditorMarjorie NgwenyaE editor@the-actuary.org.ukT +44 (0)7794 031 225Features editorTracey PritchardLane Clark & Peacock LLP,E features@the-actuary.org.ukT +44 (0)20 7432 3071Deputy features editorsAdam JornaSonal ShahE features@the-actuary.org.ukProfession news editorAlison JigginsE alison.jiggins@actuaries.org.ukT +44 (0)20 7632 2172Industry news editorTerren FriendE news@the-actuary.org.ukPeople/society news editorKelvin ChamunorwaTowers WatsonE social@the-actuary.org.ukT +44 (0)7502 107 322Student page editorMatthew WelshE studentpage@the-actuary.org.ukArts page editorRichard ElliottScottish LifeE arts@the-actuary.org.ukT +44 (0)7814 509 081Puzzles editorTom BratcherTowers WatsonE puzzles@the-actuary.org.uk

Published by the Staple Inn Actuarial Society.

The editor, The Institute and Faculty of Actuaries and Staple Inn Actuarial Society are not responsible for the opinions put forward in The Actuary. No part of this publication may be reproduced, stored or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the copyright owners. While every effort is made to ensure the accuracy of the content, the publisher and its contributors accept no responsibility for anymaterial contained herein.

Important information forcontributors to The ActuaryBy submitting content forpublication you confirm that:(a) You (and/or other named contributors) are the sole author(s) of the content submitted; (b) The content you submit is original and has not previouslybeen published (unless you specifically advise us to the contrary); (c) You haven’t previously licensed the use of the content you submit; (d) So far as you are aware, the content submitted will not infringe any third-party rights, be defamatory or in any way illegal.

© SIAS August 2011All rights reservedISSN 0960-457X

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Additional features content can be found at www.TheActuary.com

MORE CONTENT ONLINE

p28 Life insurance: Heart of the matterGarth Lane looks at heart disease and the use of statins to treat high levels of cholesterol

Features22 Investment: Driving tests

Umar Ilyas steers a course through the regulatorydrivers in areas of institutional investment

24 Investment: Aiming for a good outcome Christine Berry asks where the responsibilities lie within pensions fiduciaries

26 Pensions: The tipping pointMatthew Furniss finds that high inflation isn’t necessarily a bad thing for pension schemes

30 Q&A: Paul Sweeting Marjorie Ngwenya talks to Paul Sweeting about balancing volunteer work, authorship, academic obligations and time with his family

32 Life insurance: A new dawnRajagopalan Krishnamurthy reflects on the strategic shifts in India’s life insurance industry

34 Life insurance: Life in the fast lane Paul Hately looks at life insurance’s aim to balance customer needs for convenience and low prices

36 Conference preview: Life conferenceJason Hurley introduces this year’s Life conference

12 Profession news 16 Industry news 18 People/society news 20 SIAS events 44 Appointments and moves

3 Editorial Marjorie Ngwenya is striding forward

6 Letters In which actuaries discuss longevity risks and endowment risks

8 President’s comment Jane Curtis seeks the views and support of members to achieve the next steps forward

10 Soapbox The Dilnot recommendations are an opportunitynot to be missed, says Peter Gatenby

43 Book reviewPeter Tompkins gets to grips with The Case forWorking with your Hands by Matthew Crawford

Regulars37 Technology

Is the BlackBerry or iPhone best for business?

39 ArtsRichard Elliott cuts through the hyperbole to find the best of this year’s Edinburgh Festival

40 Puzzles Win a £50 Amazon voucher in our prize puzzle

42 Student page Matthew Welsh says it is time to optimise yourhigh-quality free time

43 Actuary of the future Rachel Gow of Aviva Ireland

Garth Lane is the editorial team’s choice for August for his article on statins, and receives a £50 book token courtesy of:

WRITER OF THE MONTH

News

Comment

August 2011 5

Your viewLetters

In which actuaries discuss longevity risks and endowment risks

Letters to the editor

Restriction risks: Response to Niki Cleal, July 2011Niki Cleal’s article quite rightly argues that the removal of compulsory annuitisation increases flexibility but potentially adds risk for individuals — investment and longevity. The longevity risk has two components — general improvements in health status leading to increased life expectancy and also the specific risk of an individual living significantlylonger than the average. I would also argue that the quality of financial planning and the availability of suitable longevity hedges currently are not adequate for this new era of flexible decumulation.

It appears that, too often, financial planning in the decumulation phase seeks to maximise the value of the remaining assets rather than focus on optimising the income stream that best matches the expected monetary value of the individual’s preferred lifestyle. This latter approach is difficult to manage where you are effectively decumulating over an unknown time horizon. An important step here is to reduce the longevity risk which can be achieved expensively through the purchase of a traditional annuity but is better delivered by the use of a cheaper advanced life deferred annuity (ALDA).

Published works in this area, including Milevsky and Gong & Webb, have demonstrated that much of the longevity risk for individuals can be mitigated byusing ALDAs. Importantly, by appropriate use of these types of products it allows the individual to decumulate their assets over a known time period, with the ALDAproviding stop loss protection in the event of the individual living longer than expected. This approach is gaining in acceptance in the US where the volume of maturing DC (401k) plans is growing.

As an industry we need to improve the quality of advice and products in this important area now to avoid a generation of retirees making poor financial decisions with little or no opportunity to recover subsequently.

Mike Tyler13 July 2011

The writer of the letter of the month receives a £25 Amazon voucher

Letter of the month

Exposure to riskI refer to the Financial Ombudsman Service (FOS) Review for the year to 2011. This report repeats an elementary statistical error in its 2010 report — it says that in 2010 the number of cases that had to be referred to an ombudsman increased over the 2009 year by 24%. It failed to say, however, that exposed-to-risk increased from 113,949 to 166,321, which is far more than 24%. The result is that the proportion that required an ombudsman decision actually reduced. The proportion for the year to 2010 was 6.5%, whereas FOS regarded a proportion of about 8% as normal. This is not evidence of a “...shift towards more entrenched

6 August 2011

disputes — with businesses increasingly taking a hard-fought and legalistic approach, and consumers becoming more demanding and less willing to concede”.

The proportion of cases referred to an ombudsman is indeed higher in the year to 2011, at 10.6%. However, the average for the two years: to 2010 and to 2011 is 8.6%, which is around the 8% considered normal.

How can FOS be trusted to make decisions with regard to endowment mortgage risks, and FSA Treating Customers Fairly, Principles for Businesses, Principle 6 when it does not appear to be allowing for exposed-to-risk?

Anthony Pepper5 July 2011

Forward features in The ActuaryThe Actuary’s team welcomes contributions from members or contacts in and around the profession.

Below is the schedule of themes for the next few months along with the deadline forsubmission. If you would like to contribute, please contact Tracey Brown at features@the-actuary.org.uk with suggestions.

For a full list of 2011 issue themes, visit www.TheActuary.com/875190

October 2011 (Published 29 September, editorial deadline 12 August, advertising deadline 13 September)■ Careers: graduate■ Risk management■ Mortality/longevity

November 2011 (Published 27 October, editorial deadline 16 September, advertising deadline 11 October)■ Solvency II■ Pensions■ Careers: new fields

December 2011 (Published 24 November, editorial deadline 14 October, advertising deadline 8 November)■ General insurance■ ERM■ Investment

More letters are available online at www.TheActuary.com/category/comment/letters

The editorial team welcomes readers’letters but reserves the right to edit them for publication. Please e-mail actuaryletters@incisivemedia.com. The deadline for receiving letters for the September issue is 15 August 2011.

YOUR LETTERS

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Strategic operations

8

Jane Curtis outlines the next steps forward and seeks the views and support of members to achieve these aims

President’s comment Jane Curtis

One of the more immediate consequences of becoming president is the increase in emails flowing into my inbox. Although the tide can at times appear overwhelming, it is more than a pleasure to communicate with members. I like to think the Profession’s membership is still small enough for individual views to count and for each one of you to make a difference to how the Profession operates.

Take, for example, the recent consultation exercise on the strategic review. As I mentioned in last month’s article, I was hugely encouraged that over 1,200 of you responded to our survey. To all who contributed I want to thank you and recommend you continue with this positive participation. I think everyone can gain from increased involvement and voluntary work within our organisation. This sentiment is not new. One of my predecessors, Charles Wood, expressed a similar view over 50 years ago when he said: “Pride in the profession grows in proportion to the service which is rendered.” We have much to be proud of but I am sure there is more that each of us could be doing.

One of the core strands in the new strategy is education — a personal passion of mine — and our objective here is to provide high-quality qualifications for our students and a lifelong education for our members. Pleasingly, nearly 84% of those responding to our consultation survey were satisfied or very satisfied with this objective. There was also positive support for the core qualification model described below.

Level 1: Techniciann Passed technical exams not required to do higher level, practical exams or ‘softer skills’. Professionalism requiredn Meet demand for lower cost, technical skills for more ‘number-crunching’ type rolesn Attractive to those interested in technical

August 2011

actuarial skills, less time and cost to get to recognised level.

Level 2: Qualification level — actuary/fellown Generic qualification — no UK-specific materialn The qualification should be in line with IAA and Groupe Consultatif requirements for being fully qualifiedn Obtain annual update on professionalism matters and anything else of relevancen Work-based experience requirements to continue to apply broadly as present.

Level 3: Practicing/specialist fellown Entry through exams or transitional experience applications or through senior actuary endorsement under an approved ‘regulation through firms process’n In order to act as advisor on one of the five specific areas, the individual has to be qualified in the relevant speciality. Advisor can mean in-house within employer and external consultantn Five specialisms and one ‘general advisor’ specialismn Any reserved role would be treated as an extra specialism for the purposes of CPDn Meet minimum CPD requirements, which should be no more onerous than as present.

You have told us that we need to elaborate the details on these roles before giving us your wholehearted support prior to moving forward on this basis. We are committed to further consultation and listening to what you have to say. In the meantime, we would appreciate feedback on areas such as:n How do these roles fit in to the general career paths of actuaries and students?n How do these roles meet the needs of our members globally?

» Many volunus how muchgot back fromhelping with c

n What is the appropriate mix of examinations, work-based experience and CPD for each level?n Which specialisms should be included?n What is the best name for each level and how should they be described?n What should be the transitional arrangements for existing members?

At the next stage of the consultation, we are asking for volunteers from the Council to join a Strategy Implementation Group, which will develop the three-tier model as a working premise. They will ask for and respond to the views of members, employers and other stakeholders. We hope to have this stage of the process completed by the end of 2011 so that the Council can press ahead with making a full decision on changes by the middle of 2012.

This time of year always sees a batch of newly qualified actuaries, many of whom I hope could donate a voluntary hour or two a week from their freed-up time to the Profession. Many volunteers tell us how much they have got back from their work helping with committees, projects, examinations and offering career support. This has proved to be of tangible benefit to their employers, also. By way of a small thank you to many of those who have already contributed back to the profession,

we are organising a number of garden parties, the first of which I will be looking forward to hosting this month.

In future columns I hope to tell you about more opportunities to get involved and the exciting plans we have for conferences, events and research.

More details of the strategy and how to volunteer can be found at www.actuaries.org.uk. If you want to find out more about getting involved please email volunteering@actuaries.org.uk

teers tell they have their work ommittees «

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http://www.stockbrokers.barclays.co.uk/future

10

Long-term solution

The Dilnot report will shift more of the burden of coping with old age onto the individual and away from the taxpayer, says Peter Gatenby

Peter GatenbySoapbox

On 4 July, Andrew Dilnot and his fellow commissioners published their report on the funding of long-term care in the UK. The report covers a number of areas and makes various recommendations, the two most important of which are an increase in the means test limit to £100,000 and a cap on the amount that people will have to pay for care out of their own pockets.

The main recommendation of the Commission is that a public/private partnership is put into place in which people who need care will fund the first £35,000 of care themselves, after which time the State will pick up the rest of their long-term care costs. If government decides to accept and implement such a cap then it will lead to the development of a whole host of financial services products to help people fund the capped amount.

Products to help people fund for the cap will range from savings and investment vehicles, equity release, disability pension annuities and long-term care insurance either on a standalone basis or added to other relevant products, such as

August 2011

life insurance, income protection and critical illness.

As actuaries, we will be called on to assist in the development and pricing of a number of these products.

Long-term care insurance products were first developed and sold in the UK during the 1990s but they were expensive as they were designed to cover all of the care costs from the point that care was needed, an open-ended liability. Consequently, only the wealthy or reasonably well off could afford them.

As well as the cost of long-term care insurance in the 1990s, there was an added issue in the minds of the public of uncertainty in government thinking on long-term care.

By capping the amount that an individual is liable to pay to £35,000, insurance products can therefore be developed and sold to cover the capped amount. Consequently, the cost of the insurance will be much less than the products sold in the 1990s, somewhere between one third and one quarter of the cost.

This would make long-term care insurance affordable to many more people and would really open up a potentially large market. The knock-on effect would be that the larger life and health insurers would be likely to develop products rather than a few small niche players as in the 1990s.

As well as insurance, the report also mentions the concept of the disability pension annuity. It has long been a view of mine that the pension is a natural home

» If the government does decide to implement the Dilnot recommendations then the uncertainty that has existed in the past will be removed «

for long-term care. It is possible to consider three high-level scenarios for people as they age in retirement:1. They never have a need for long-term care and therefore a level income in real terms in retirement should satisfy their needs.2. A number of years after retirement they start to experience problems with the normal activities of daily life, perhaps as a result of arthritis, breathing problems, heart problems and so on, and may therefore have a need for a gradually increasing income in real terms in order to be able to pay for help around the house.3. A catastrophic event such as a stroke or heart attack or a severe senile dementia such as Alzheimer’s or other major illness occurs, and there is sudden need for a large amount of expensive care either at home or in a nursing home leading to a dramatic increase in monthly outgoings.

Our current pension rules allow for point 1, but do not allow for points 2 or 3, and it has always seemed logical to me that our pension annuities should be constructed so as to allow for an increase in payments on a definable long-term care event. Dilnot suggests that such annuities should be allowed and that pension rules should be changed accordingly.

If the government does decide to implement the Dilnot recommendations then the uncertainty that has existed in the past will be removed, which means that many more people will be likely to consider using insurance, pensions and other financial services products to fund their long-term care costs.

To fail to take this opportunity to provide a fairer system for all will be a failure by the government to tackle what is a worrying and financially destructive issue for a growing number of people.

Peter Gatenby is the senior actuarial partner and leads the actuarial practice at Mazars LLP

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Interested? You can find out more at towerswatson.com/RCScareersUK

12

Profession backs more radical reform of state pensionResponse to DWP consultation favours single-tier flat rate pension, subject to a successful transition, and cautions against single formula approach to state pension age

ProfessionNews ProfessionNews

In its recent response to the Department for Work and Pensions (DWP) consultation, ‘A state pension for the 21st century’, the Institute and Faculty of Actuaries has said that it believes that the public interest could be best served by the more radical reform to a single-tier flat rate pension set out in option 2 of the DWP’s paper. The professional body argues that in future the state pension age should be subject to regular multidisciplinary reviews rather than having automatic changes based on a single formula on life expectancy.

Commenting on the Institute and Faculty’s response, Ronnie Bowie, immediate past president, said: “We have argued for some time that a state pension scheme that is fair, simple and transparent

August 2011

should make it easier for people to make informed decisions about their financial future. We therefore support in principle the government’s proposed option for more radical reform to a single-tier flat-rate state pension, although there are many points of detail on how the transition would be delivered that still need to be worked out.

“The ending of contracting out is likely to speed up the reduction in schemes in the private sector offering future defined benefit accrual. However, it can be argued that it is in the general public interest to have to find solutions to help manage the ending of contracting out for a minority rather than let this be a barrier to single-tier reform that should benefit the majority.

“There are significant problems with trying to adopt a single formula approach to deciding on future increases in state pension age. Firstly, it will not be at all straightforward to decide on what it should be. Secondly, no single formula is likely to be robust enough to give the required stability. And thirdly, life expectancy should not be the only consideration in setting state pension age. We suggest that the key criterion for establishing the best mechanism in this area should be whether it provides stability and sufficient warning, is evidence based and ensures that ultimate accountability is with ministers and Parliament. We outline how a statutory review process would be well placed to fit these requirements.”

Subscription paymentsThe minutes of Council meeting are now available on the Profession’s website at http://tinyurl.com/5wa4z7t.

Council has approved changes to regulation 24 (http://tinyurl.com/6jcsvnz). Previously, members (except students) were given six months to pay their subscriptions before being defaulted. All members will now need to pay by 31 December each year as Council considers three months as sufficient time in which to make annual subscriptions payments.

Sessional research meetings — youropinions soughtThe group of volunteers and staff that organises sessional research meetings is looking at how the Profession can strengthen the offering at its traditional discussion meeting and, where appropriate, consider some new formats for the session beginning in September. Please complete the short online survey (http://tinyurl.com/5w4f5ok) and influence the discussions.

No increase in subsFollowing agreement by Council, there will be no increase in subscription rates or practising certificate fees for 2011. In effect this means an overall reduction in fees when the RPI increase normally added is taken into account.

All subscription fees will therefore remain the same as set out below:

Subscription fees for 1 October 2011Fellows (full regulation): £690Fellows (partial regulation): £342Associate (full regulation): £456Associate (partial regulation): £228Student (UK/EU): £282Student (overseas): £192Affiliate: £69

criptions and practisReduced subscription (all categories): £69

Practising certificate feesFees for all practising certificates will remain at £860.

Subscription policy and membership operationMembers and students should consult the members’ section of the Profession’s website regarding policy and operational procedures. Important information — such as how to apply for partial regulation, reduced subscription, surcharges and much more — can also be found on the Profession’s website at www.actuaries.org.uk

ing certificate feesRemittance advice information will

be sent to members during August and it is the member’s responsibility to ensure that the correct subscription is paid. If you previously paid a partial or reduced rate you must ensure that you are still eligible to renew at that rate. Receipts for all payments can be downloaded from the members’ section of the website.

Any enquiries regarding membership matters should be sent to the Membership and Certificates Team, The Actuarial Profession, Maclaurin House, 18 Dublin Street, Edinburgh EH1 3PP, or you can telephone +44 (0)131 240 1325, or alternatively email membership@actuaries.org.uk

www.TheActuary.com

ww

Dilnot Commission report offers opportunities

As Andrew Dilnot’s report into the funding of care and support is published, the Actuarial Profession has indicated that if the report is implemented, it could present significant opportunities for the long-term care insurance market.

Sue Elliott, a leading health and care actuary and chair of the Actuarial Profession’s health and care committee, said: “In terms of how this might affect the insurance industry, the proposed £35,000 cap for individual costs for care could help re-invigorate the long-term care insurance market. Capping the insurance claims at

w.TheActuary.com

£35,000 would have the effect of reducing the premiums for the insurance policy to some extent, depending on the period of coverage provided by the insurance. However, it reduces, but does not eliminate, the incentive for the insurance company to look for preventative measures to try to reduce the length of period under claim.”

Private insurance could take many forms such as immediate-needs annuities (which are currently available), pre-funded insurance of various types, a link to pensions (such as disabled life

for insurance industryannuity) and a link to housing wealth using equity release as a funding mechanism.

The immediate-needs annuity market currently averages about £95 million of premium per annum. It reached its peak sales in 2004 at just over £110 million based on 1,730 policies, which is significantly less than the 435,000 people in nursing or residential care where a significant amount would have been private pay.

The Actuarial Profession looks forward to working with the government on the details of the proposals.

CPD determination reports now online

Applications open for chief executive of the Institute and Faculty of Actuaries

Due to the consistent nature of CPD cases, these have been published on the Profession’s website and are not to be taken as a reflection of their lesser importance under the disciplinary scheme. The following member has faced disciplinary action for failure to record their CPD in accordance with the Profession’s CPD requirements: ■ Mr. David Thomas Newman; a reprimand; http://tinyurl.com/6h7uxqj

The full determination is available at www.actuaries.org.uk

For further information on the vacancy for chief executive of the Institute and Faculty of Actuaries, visit www.odgersberndtson.co.uk/35788

Applications open for chairman of the Profession’s management boardCouncil is also seeking a new chairman of the Profession’s management board to take up appointment as soon as practicable. The job description can be found at http://tinyurl.com/6gr4nfe. Please send your CV to marion.young@actuaries.org.uk by 10 August. Interviews will take place around 17 August.

Mr Alan Robert Goodman (the Respondent)On 5 May 2011 the Adjudication Panel considered a complaint that the Respondent, when instructed by Brodies LLP to give an expert opinion for the trustees of the WTL International Limited Retirement Benefits Scheme (Trustees) in connection with a potential claim for damages for breach of contract and negligence in relation to advice given by Mr Eric Edwards (the Scheme Actuary) and/or Scottish Widows plc (SW) as a consequence of which the Trustees made the decision to switch the assets of the scheme from the deferred annuity contract with SW to a managed fund contract also with SW, and when appearing as an expert witness for the Trustees at subsequent proceedings in the Court of Session in conncection with the claim, he:

a) relied upon information from a conflicted third party and knew that this actuary was conflicted

b) failed to carry out proper checks on the validity of information received from the conflicted party or other sources

c) gave contradictory testimony and was required to withdraw parts of his report when giving evidence in court

d) took on a role as an actuarial expert without having the necessary expertise

e) failed to acknowledge in his report that others in the profession would hold different views to himself. As such he failed to qualify his report to reflect both this and that most criticisms made of the Scheme Actuary in his report would fall away if it was decided that a ‘recommendation’ was not being made by the Scheme Actuary

f) failed to advise the pursuers that the new claim based on the premium rate

DETERMINATION REPORT

increase assumption, contained in an amendment to Article 5 of the Summons, should contain qualifications

g) provided opinions on matters that lay outside with his area of actuarial expertise and entered into advocacy on behalf of the Trustees.

Such conduct in any, or all of the above, generally falling short of the standard required by the Professional Conduct Standards (version 3.0) and in particular paragraphs 1.2, 2.1, 2.2, 2.3, 3.2, 3.4, 3.5, 8.1, and 8.2, and/or in breach of the requirements of Recommended Practice Guidance Note 24 (version 1.0) and in particular paragraph 4.2.1or IAN The Actuary as an Expert Witness which replaced Recommended Practice Guidance Note 24 (version 1.0) from 9 January 2009, and in any event constituting misconduct in terms of Rule 1.6 of the Disciplinary Scheme of the Faculty of Actuaries, being conduct falling below the standards of behaviour, integrity and competence or professional judgement which other members or the public might reasonably expect of a member..

DeterminationHaving considered the case report and the appendices submitted by the Investigating Actuary, the Panel determined that the case report discloses a prima facie case of misconduct against the Respondent in accordance with rule 4.4 of the Faculty’s disciplinary scheme and that the Respondent should be invited to accept that there has been misconduct and the following sanctions: ■ a reprimand; and ■ a fine of £5,000.

The full determination can be seen athttp://tinyurl.com/3ou87rm

FOR ADJUDICATION PANEL

August 2011 13

Emerging trends in mortalit

ProfessionNews

Forthcoming events Actuaries and the Law8 September, Staple Inn, London09.00 (registration) 09.30-16.302011 is proving to be a year of majorchange for the pensions industry. This seminar will give insights and updates on vital legal developments and also includes a keynote talk from Stephen Soper, interim executive directorfor defined benefit funding at The Pensions Regulator and a perspective on the challenges ahead from Paul Couchman, Premier Pensions. Due to the large-scale changes in the pensions legal landscape this year, this seminar will provide an excellent chance to keep up to date and explore new options.

This seminar will be very relevant for all actuaries in the pensions industry. It will be of particular interest to actuaries wishing to update employers and schemes on The Pension Regulator’s thinking and also for actuaries wishing to have a detailed and topical update on issues including special purpose vehicles, Pension Protection Fund entry and discrimination.

For further information, visit http://tinyurl.com/6koz6vx

Environmental change: opportunities for actuaries13 September, Staple Inn, LondonThe Profession’s Resource and Environment Group is staging a networking evening suitable for all actuaries interested in discussing and finding out more about the opportunities arising as economies respond to resource constraints and climate change. There will be speakers already involved in such issues, including sustainable investment consulting, general insurance pricing, energyconsulting and green finance, followed by a panel discussion and networking over drinks. This is a chance to debate how existing work is being affected, and new opportunities created, as economies address the challenges involved.

This event will provide an excellent update and networking opportunity forstudents and Fellows.

For further information, visit http://tinyurl.com/5uofong

14 August 2011

13-14 September, Warwick Conferences, University of Warwick, CoventryThis symposium will provide an update on the latest thinking across the associated disciplines, a multi-disciplinary forum for the exchange of information on the latest relevant research, and also an opportunity to learn about established knowledge from a range of different disciplines, all with an interest in better understanding and managing this complex yet critical subject. This symposium will be of interest to all actuaries who are concerned with pricing or reserving for mortality and longevity, underwriters, demographers, epidemiologists, policy-makers, gerontologists, other medical researchers

y and longevity symposiumand all those with an interest in better understanding the determinants of mortality and longevity, projecting their future course, and managing the uncertainties. By hosting the conference adjacent to the Society of Social Medicine’s annual scientific meeting in 2011, it is hoped that further participation from the medical, epidemiology and demography academic communities can be attracted as well as the Actuarial Profession’s core membership.

For further information, visit http://tinyurl.com/632l24k

Pensions highlights 2011

GIRO conference and exhibition 2011

21 September, Staple Inn, London4 October, Novotel, Bristol 09.00 (registration) for 09.30-16.30These two one-day seminars showcase the highlights of the Pensions conference 2011 and are an excellent opportunity to get an update on some of the topics that are currently affecting the pensions industry. This seminar is aimed at all actuaries working in pensions.

Further information will be on the Profession’s website shortly.

11-14 October, BT Convention Centre, Liverpool The theme this year is ‘Navigating risk: are actuaries at the helm?’. The journey to Solvency II is well underway in the actuarial profession and whether or not you are directly involved in preparing your organisation for this new regime, your work will no doubt be impacted in some way. As a path is navigated through this additional workload, it is clear that actuaries are key to the delivery of Solvency II. When a post-Solvency II world is visualised, ask yourselves to what extent actuaries, although heavily involved, are really influential in all their areas of work? By examining the part actuaries play in organisations today, you begin to envisage where you will find yourself when the journey is completed and landfall is made.For further information, visit http://tinyurl.com/5ws4uad

Pensions, benefits and social securitycolloquium 2011

Momentum conference 2011: for actuaries of today and tomorrow

25-27 September, Royal College of Physicians of EdinburghThe UK Actuarial Profession and the pensions, benefits and social security (PBSS) section of the International Actuarial Association (IAA) are hosting the first PBSS colloquium to be held in the UK. This event will provide a forum for the exchange of information on the latest international pensions, social security and ageing population issues, with a focus on how to make both public and private sector provision for retirement income safe and sustainable. It will provide excellent CPD and networking opportunities. For further information, visithttp://tinyurl.com/69sf7dr

30 November – 2 December, Hilton Deansgate, Manchester The Momentum conference is the premier conference for recently qualified (up to five years) and about-to-be-qualified actuaries and is attended by delegates from all practice areas. It allows an opportunity for delegates to develop crucial softer skills, learn from industry experts and increase technical knowledge to add further value to a young actuary’s skill-set.For further information, visit http://tinyurl.com/6fuuvy9

www.TheActuary.com

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An eventful twelve months for thee

The Scottish board has just reviewed its first year, following the merger of the Institute and Faculty. Activities to meet the board’s aims have been many and varied.

A series of events took place in Scotland, including sessional research events. We have pioneered pre-sessional meetings for younger members and renewed liaison with the two students’ societies (FASS and GASS) and the group aimed at younger members (‘Our Changing Future’). There has been co-ordination, via Heriot-Watt University, with the brand new Scottish Financial Risk Academy (SFRA). We are very proud to be one of its founder members and look forward to their third Colloquium on Solvency II on 28 September. We also look forward to hosting the prestigious lecture organised by the Institute and Faculty in Edinburgh on 10 October, to be given by Sir Harry Burns, Scotland’s chief medical officer.

The Board is entrusted with overseeing the use of a £500,000 endowment.

New leader David Martin rev

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Following the sBachelors and in Actuarial Scito announce thMSc in Actuaria

THE PROGRAMMEThis advanced programme allows a succetwo of the Core Applications subjects (CA1up to three Specialist Technical (ST) subjectswith a full set of exemptions has only thpass, as well as gaining the necessary woa Fellow of the Institute and Faculty of Ac

You can apply for either the full 12-moDiploma which can be taken on a full-timegreat flexibility to students. The lectureexperienced, qualified actuaries.

Principles for its use have been drawn up and proposals are being considered. These currently include the exciting prospect of a Scottish Actuarial Research Centre. The Board is seeking to establish a legacy of high-quality actuarial research. We welcome proposals from the wider Scottish constituency. More details will appear on our area of the website and via our e-newsletters.

Our Charitable Trust Fund has established prizes and awards ranging from encouraging high-quality papers and presentations from younger members to encouraging school pupils in mathematics.

A sub-group is working with the Profession’s public affairs team to develop a customised programme to identify and take forward specifically Scottish elements within the Profession’s active public affairs strategy. This includes interaction with influential parties in Scotland, including MSPs.

At its meeting on 29 June, the board thanked its first leader, Gordon Bagot,

iews progress as he takes ov

uccess of ourMasters programmeence, we are delighe launch of our newl Management.

ssful student exemption in and CA3) and a choice of

. A student who graduates ree more examinations to rk experience to qualify as tuaries.

nth MSc or 9-month PG or part-time basis, offering s will be given by highly

THE ENTRY REQEntry requires at least a honours level (or equivalecontent to meet the precourses. It is not necessaprofession’s CT subjects.

FIND OUT MORTo find out more, call orManager on 0131 451 8

You can also find out mo

Scottish boardfor all his work. Gordon has stepped down and I am now honoured to take on the role of leader, with Keith Miller as deputy. Martin Potter was welcomed as a new member of the board following his election to Council. Gordon Wood and Alan Watson were both re-elected to Council and will continue on the board.

All members of the Profession are invited to join the new Scottish Constituency Community on the Profession’s website at http://tinyurl.com/6c547sb

Contact details, discussion threads, details of our eight key responsibilities and a fuller report on the year’s activities, can be found there.

r from Gordon Bagot

David Martin, leader of the Scottish Board

August 2011 15

Distinctly Ambitiouswww.hw.ac.uk

sted

UIREMENTSBachelors degree of upper-second class nt), with suffi cient actuarial or fi nancial requisites for an acceptable choice of ry to hold exemptions from all of the

Ee-mail Ms. Amanda Hearn, Programme 337 or email mscactman@ma.hw.ac.uk

re on our website www.macs.hw.ac.uk

16

News Industry Register for weekly news alerts at www.TheActuary.com/emailsignup

Economic risks anAt the Actuarial Teachers’ and Researchers’ Conference 2011 in Oxford on 14 July 2011, Oliver Bettis, pricing actuary at Great Lakes and a member of the Profession’s Resource and Environment member interest group, gave a talk on ‘Risks to the economy arising from constrained global energy supply’.

The talk described the problems with

August 2011

EIOPA calls for IOR

d global energyexponential growth in the economy, the link between the economy and fossil energy, the possible effects of oil scarcity and resource depletion on the global economy and the actuary’s role in these hugely important issues.

A full report can be found at http://bit.ly/qTO1cC

As it prepares to provide advice on Institutions for Occupational Retirement Provision (IORPs) to the European Commission, the European Insurance and Occupational Pension Authority (EIOPA) has issued a call for market participants and occupational pensions stakeholders to give their input.

EIOPA is seeking comments on the scope of the IORP directive, the definition

P pensions inputof cross-border activity, the scope of prudential regulation, and aspects of the governance of IORPs.

The deadline for this consultation period is 15 August 2011, with the European Commission setting EIOPA its final deadline for December 2011.

For more on this story, visit www.TheActuary.com/875933

Chinese insurance companies’ premium income topped 805.66 billion yuan (US$123.95bn) in the first half of the year, up 13% year on year, the China Insurance Regulatory Commission (CIRC) said.

In the first six months, premium income from the property insurance business rose 16.9% from a yearearlier to 235.96 billion yuan, while life insurance premium income rose to 569.7 billion yuan.

Chinese insurers earned 103.11 billion yuan from their investments in the first half, an average return on investment of 2.1%, according to the CIRC.

For more, visit www.TheActuary.com/875946

China’s continued insurance growth

OBR urges long-termThe Office for Budget Responsibility (OBR)’s Fiscal Sustainability Report suggests that the increased longevity of the UK’s population will lead to a significant economic crisis if long-term decisions aren’t made now.

The report foresees that, due to rising costs of healthcare and pensions, the

view on costs of aggovernment’s debt will hit 107% of gross domestic product (GDP) by 2060 — even without new austerity measures being implemented in that time — compared to the current figure of just below 70%.

The OBR stated its belief that the cost of healthcare will increase from 7.4% of GDP to 9.8% in 2060, while the basic state

eing UK populationpension is expected to cost 7.9% of GDP compared to 5.5% currently.

For more on this story, visit www.TheActuary.com/875935.

See also ‘Austerity cuts and retirement age changes falling short’ www.TheActuary.com/875917

Sovereign risk tops concerns forEuropean insurance and pensions sectorsSovereign risk is currently the main threat to the financial stability of the European insurance and occupational pension sectors,according to a report from the European Insurance and Occupational Pensions Authority (EIOPA).

The report covers developments in the insurance, reinsurance and occupational pension fund markets as of April 2011 and is released ahead of discussions on the macro-financial conditions and overall stability of the EU financial system.

For more on this story, visit www.TheActuary.com/875919

Pension de-risking to surge after quiet Q1A relatively modest £350 million of pensions de-risking business was written over the course of Q1 2011, a 78% reduction in activity from the previous quarter, according to JLT Pension Capital Strategies. However, the firm said that insurers remain confident about their prospects for 2011 and reported activity of deals to date completed in Q2 2011 amounts to over £1bn.

For more on this story, visit www.TheActuary.com/875943

Breaking news is now published online at www.TheActuary.com

BREAKING NEWS

SIAS debates Solvency II internal modelsThe SIAS meeting on 17 May discussed the challenges faced by GI actuaries in meeting the Solvency II requirements under the internal model approval process (IMAP). Though many of the regulatory requirements for model approval are now in the public domain, it is not yet clear how these should be implemented by firms in practice in many areas.

The debate was chaired by Vishal Desai of the FSA and included a panel of speakers from the Profession’s GIRO working party.

Highlights can be found at http://bit.ly/qGcckf

www.TheActuary.com

News

From the world of general insurance

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Industry

Solvency IITowards the end of June, the Council of the European Union suddenly proposed a one-year delay in the implementation of Solvency II, to 1 January 2014, after significant media speculation and adverse industry comment on the practicality of the originally planned date. This delay would require the legal framework to bein place by the end of March 2013, with existing capital and solvency requirements continuing until the end of 2013. The situation remains uncertain pending a recommendation from the European parliament and probable negotiations between the council and the parliament. However, a few days later, Carlos Montalvo Rebuelta, executive director of the European Insurance and Occupational Pensions Authority (EIOPA), maintained that no delay would take place, although a one-year transition might be introduced, a suggestion that EIOPA had raised with the European parliament. During such a transition year, regulators would collect Solvency II data, but not automatically intervene if companies fail to meet the full Solvency II criteria, although action would be taken against a company having less than the minimum capital requirement.

At the beginning of July, EIOPA announced the results of the second European insurance stress tests carried out between March and May. The tests covered

.

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221 insurers representing over 50% of the premium income by country, and overall about 60%. The exercise confirmed that the market is robust, with only 10% of the insurers covered failing to meet the Solvency II minimum capital requirements even under the most adverse stress scenario. Overall, it was found that the adverse stress scenario reduced the solvency surplus by 35% compared with that before applying the stress scenario, and the inflation scenario reduced it by 14%. EIOPA disclosed that the main drivers of market risk are equity prices, interest rates and sovereign bonds and that the main insurance risks are claims inflation and natural disasters.

Other regulatory and legal developmentsTowards the end of June, some information was provided as to the way in which UK regulation would work under the Prudential Regulatory Authority (PRA) and the Financial Conduct Authority (FCA) after the abolition of the Financial Services Authority at the end of 2012. Every UK insurer will have its own named supervisor at the PRA, who will be the primary point of contact. Lloyd’s and its managing agents will have a dedicated supervisory team. The supervisors stated their intention to intervene at an early stage when they perceive a company’s financial position to be becoming precarious. Their assessment will commence with

analysis of the company’s business model, especially in areas having a concentration of risk, and will include some forward-looking stress tests, where they would use their own judgment rather than taking the results on a pass or fail basis. They would consider input from third-party professionals, such as auditors and actuaries. With regard to governance, the PRA will focus on the quality and competence of senior management.

Catastrophe bondsArgo Group has unveiled its first catastrophe bond, a US$100m deal through Loma Reinsurance Capital, providing protection to the group against multiple occurrences of such perils as hurricanes, US and Japanese earthquakes and European windstorms. Coverage will be triggered by the second loss from covered perils.

Typhoon and hurricane predictionsIn mid-June, the Guy Carpenter Asia-Pacific Climate Impact Centre predicted that there would be 31 cyclones in the North-West Pacific during 2011, with China likely to be particularly hard hit with an estimated seven landfalls, and Japan and Korea also having above average frequency of landfalls with six. If this is borne out by the facts, it will be one of the worst years for some time, as only two of the previous 13 years have experienced above average activity in the region.

Large lossesEarthquake, Christchurch, New Zealand — 22 February.

By mid-June, the number of claims filed with the New Zealand Earthquake Commission had risen to nearly 160,000, which exceeds the number from the previous quake last September. Aftershocks continue to occur, including a severe one (magnitude 6.0) on 13 June — these are being treated as separate events

Tohoku earthquake and tsunami, northern Japan — 11 March By mid-June, the Japanese non-life insurance industry had already paid out the equivalent of US$12.4bn on nearly555,000 claims in relation to these events. Over 130,000 further claims remained to be settled and new claims are still being reported at the rate of around 20,000 a week. The Japanese government has

assessed the economic property loss from the events at US$210bn — this does not include the costs of disruption caused bythe damage to the Fukushima nuclearpower station. It is believed that the German market may experience claims under directors’ and officers’ liabilitypolicies triggered by the earthquake and tsunami on the basis that the interruption in supplies from the Japanese market had caused losses to the company in Germany, but the company should have had alternative sources of supplies identified for such a crisis.

Tornadoes in US — April The tornadoes during April are estimated to have resulted in insured losses of US$502.5m in Kansas alone, there having been 66,000 claims — this is the highest amount ever recorded in a single month in the state.

More news on the following items can be found on the website:■ Solvency II■ Other regulatory and legal developments■ Deepwater Horizon ■ Marine piracy■ UK motor insurance■ More large losses

Visit http://bit.ly/o0hmRN

FOR MORE GENERALINSURANCE NEWS

August 2011 17

18

News People/Society For people moves, see page 44

mile walk in 24 hours,t

aledonian challenge

PwC actuaries complete 54-raising over £4,250 for chari

Actuaries take on C

A team of four actuaries from PwC’s Edinburgh office completed the gruelling Caledonian Challenge on 11-12 June. Branded ‘The Walk of Your Life’, the arduous route covers a 54-mile stretch of the West Highland Way, which includes uphill sections equal in height to two ascents of Ben Nevis.

Colin Swan, Claire Woolley, Rebecca Coalter and Scott McNeill formed the imaginatively named ‘Will this improve our life expectancy?’ team to compete in the event and raise money for the Scottish Communities Foundation.

After many months of training and countless hours of walking, the team

August 2011

yforewent sleep and battled through the pain barrier to complete the 54 miles in 24 hours and 20 minutes. They raised over £4,250 for charity in the process. The final stages were particularly tough but the team’s camaraderie saw them through.

The four were assisted by the support team of John Mellor, David Pearson and Cathy Walsh, who did a great job of providing hot meals, applying blister plasters and generally raising spirits. They proved to be the vital element that helped the team over the finish line.

Although the team have vowed to hang up their hiking boots in retirement, as time passes and blisters heal, who knows what the future will bring?

PwC actuaries on the uphill path

Queen’s University,Belfast

Birthsn Helen (LCP) and Alex Howell are delighted to announce the birth of their first baby, Thomas Edward, on 2 June. Thomas weighed 9lb 4oz.n Roger (Prudential) and Alison Houlihan are pleased to announce the birth of their baby girl Sophia Mary (below), who was born on 13 June. Sophia weighed 4lbs 4oz.

Deathsn John Richard Bradley died on 23 April, aged 80. He became a Fellow of the Institute in 1957.n Roy Thomas Foster died on 8 June, aged 77. He became a Fellow of the Institute in 1968.n Howard William Johnson died on 16 April, aged 86. He became a Fellow of the Institute in 1953.n Renison Kahakachchi died on 12 June, aged 71. He became an Associate of the Institute in 1974.

Sophia Mary Houlihan with proud parents

The first wave of graduates to emerge from the Actuarial Science and Risk Management degree programme at Queen’s University Management School were celebrated at a special event in Belfast on 27 June.

The event included the chance to network with local employers as well as a keynote speech by Trevor Watkins, head of education at the Institute and Faculty of Actuaries, in which he charted the actuarial career path and reminded the graduates of their responsibility to uphold the high technical, professional and ethical standards of the Actuarial Profession.

Other speakers to offer their congratulations to the graduates included the head of Queen’s University’s Management School, Professor Richard

First graduates emerge

Harrison, and programme director Colin O’Hare who talked about the development of the programme and its connections with the wider academic and corporate world.

Brian Spence, founder of Spence & Partners which sponsored the event, and a

from Queen’s University

former graduate of Queen’s, paid tribute to the vision of the university in establishing the degree and noted that the emergence of the first graduates was a key development in addressing the skills shortages that had hampered the development of the financial services industry in Northern Ireland.

actuarial programme

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One of the highlight events of the Worshipful Company of Actuaries’ year will be a black-tie charity gala banquet, to be held at Drapers’ Hall on the evening of Tuesday20 September. The evening will begin with a drinks reception at 6.30pm followed at 7.00pm by dramatic entertainment priorto the banquet. There will also be musical entertainment between the courses, ranging from musicals to opera, providing something for all tastes. The entertainment will be bystudents from the Guildhall School of Music & Drama.

This provides the opportunity both to have

Make a date for the W

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an enjoyable evening in the magnificent surroundings of Drapers’ Hall, while at the same time contributing to charity. Even if you have not been to Drapers’ Hall, you may still recognise it as it has appeared on television and in films, most recently in The King’s Speech.

The Company of Actuaries’ Charitable Trust will give all the donations and any profit from the evening to:n The Royal Society to help fund its five-yearresearch project on mathematics educationn The Guildhall School of Music and Drama where its support will make a difference,

orshipful Company’s

especially in a time of high feesn The Rainbow Trust, which provides respite care and bereavement counselling to terminally ill children and their families.

Members of the Worshipful Companyand their partners are encouraged to come. The price will be £80 plus a voluntarydonation to charity at a suggested level of £30. Larger donations would, of course, be appreciated. Following the banquet there will be an auction and raffle.

If you would like further details, please contact John Lockyer at johnalockyer@hotmail.co.uk

charity gala banquet

The Actuaryeditor on the runBy Marjorie NgwenyaMy charity fundraising for 2011 was off to a late start but is going ahead nonetheless. This year I yet again signed up for a number of events, supporting different charities for each.

On 30 May I took part in the BUPA 10km challenge, running on behalf of The Stroke Association. On 12 June I ran my annual 5km for Cancer Research in the Race for Life. Finally, to push the boat out a little further, in lieu of the cancelled London Kilomathon, I will be running a self-planned 26km course for Asthma UK on 23 October.

Some of you will know that I am asthmatic and a tentative runner, but inching my way forward to marathon distance in about the next ten years!

If you are feeling charitable and would like to sponsor me, please visit www.justgiving.com/MarjCNgwenya/

The inaugural High Finance Group cricket league started in May with nine teams all from within the actuarial sphere. Matches have taken place at venues across the capital in a round robin league played on a Thursday evening.

Some fierce rivalries have already developed, with teams vying for the top two spots for a place in the grand final, due to be held on 1 September with an end of season dinner and awards the following week. The league is looking to expand next year, so interested parties are invited to apply.

Anyone for cricket?

Edinburgh student scoops Deloitte maths prizeDaniel Tait, a third-year student in economics and statistics at Edinburgh University, has been awarded the Deloitte prize for outstanding achievement in financial mathematics.

Daniel, 21, from Aberdeen, was awarded his prize by Andrew Smith, actuarial and insurance solutions partner at Deloitte. In awarding the prize, Andrew said: “Daniel is a very talented individual and we are pleased to be able to offer him this prize in recognition of his dedication and commitment to his studies.”

Winner Daniel beat off stiff competition from students across Scotland to win this prestigious prize.

The Financial Mathematics prize has been sponsored by Deloitte for the past five years. This year’s revised format saw the top financial mathematics students presenting to a Deloitte panel, increasing the competitive aspect and making this an even more deserving win for Daniel. The prize includes a £400 cheque for Daniel and a trophy for the winning university.

Daniel Tait

If you have any newsworthy items forthese pages, email Kelvin Chamunorwa at social@the-actuary.org.uk

PEOPLE/SOCIETY NEWS

The joint charity campaign run by The Actuary and the Worshipful Company of Actuaries has so far raised £197,250 towards the £1m target since September 2010. Many thanks to all the actuaries who are doing various activities for charity, some of whom have featured here over the last few months.

Are you taking part in a charity bike ride?

The Actuary and WCA jo

Or running 10km for your favourite charity? If so, please let us know. We would like to add the amount of monies raised by members of the Actuarial Profession for any charity to be added to our running total. You can do this by emailing Kelvin Chamunorwa or Charles Cowling at charles_cowling@jltgroup.com

int charity campaign

0 £1m

£197,250

August 2011 19

20

Global banking crisis what ifs?Dr Mark West

Staple Inn, High Holborn, London

5:30pm for 6pm

Tuesday 9 August

August 2011

For details of events, visit ww

The global banking crisis is the largest macroeconomic event that many actuaries have experienced and has had devastating consequences for tens of millions of people across the world.

Could governments have avoided the crisis? If so, at what cost? Could governments have avoided some of the consequences? What impact

Programme event

w.sias.org.uk

could the crisis have on the global insurance industry? Are there any lessons for actuaries?

These are just some of the questions that will be considered. The speaker will consider the various avenues that our governments/financial institutions could have taken and how things could have been.

Please visit www.sias.org.uk for more details.

Tuesday 1 November

The Annual General Meeting of the Society will be held at Staple Inn Hall on Tuesday 1 November, followed immediately by the Jubilee Lecture.

Members of the committee are: n Frank Oldham, chairman, Fellow, Mercern Will Bennett, honorary secretary, Fellow, Barnett Waddingham LLP n James Williamson, honorary treasurer, Fellow, Barnett Waddingham LLP n Mark Dainty1, student, High Finance Group n Richard Purcell, Fellow, Pension Corporation n Alvin Kissoon, Fellow, PwC n Taha Ahmad1, student, Navigators Management UK Ltd n Iain Ritchie1, Fellow, KPMG n Divyaa Mohan1, student, Aon Hewitt n Sarah Darwin, Fellow, Swiss Re n Watson Teo1, student, Swiss Re n Anna Lynskey1, student, LCP LLP.

Will Bennett, Iain Ritchie, Taha Ahmad and Divyaa Mohan are retiring. Iain Ritchie and Taha Ahmad are standing for immediate re-election.

Frank Oldham and James Williamson will continue to serve as chairman and honorarytreasurer respectively for the 2011/12 session. Richard Purcell has been nominated to take overthe position of honorary secretary on Will Bennett’s retirement.

The main business of the meeting will be to accept the reports and accounts, to confirm the nomination for honorary secretary, and to confirm the appointment of the successful candidates in the

SIAS AGM followed byJubilee Lecture Staple Inn, High Holborn, London

6:00 pm

SIAS AGM and Jubilee lecture

election to fill the vacancies for ordinary members of the committee. Members are elected for a three-year term and may serve for up to two terms, though they may fill one of the honorary roles beyond this period.

The Rules of the society state that there can be between eight and twelve ordinary committee members, so there are a maximum of seven vacancies to be filled, with two nominations alreadyreceived from current members who are standing for re-election. The vacancies for ordinary members are open to any member of the Society, other than one who has already served six years as an ordinarymember of the committee or who will be older than 35 on 1 October 2011 and has not already served on the committee. One vacancy will be reserved for a ‘younger member’, who has not yet completed the examinations of the Institute and Faculty of Actuaries or any other body of actuaries or who has not done so since 1 April 2010 and who has not already served on the committee for at least three years.

Nominations should be sent in writing to the honorary secretary, giving name, status and employer of the candidate, together with the names of proposer and seconder, who must be SIAS members. Each candidate should supply a personal profile no longer than 50 words, including a brief biographical history. Nominations should be received no later than Wednesday 31 August 2011. Notice is also needed in writing before 31 August 2011 of anyresolutions which members may wish to move at the meeting.

For further information about the role and responsibilities of committee members, please contact Will Bennett at secretary@sias.org.uk. All committee members are expected to attend committee meetings (up to eight per year at Staple Inn on a weekday evening), attend subcommittee

meetings (approximately four per year, venue decided by convenor), SIAS sessional meetings (ten per year, Tuesday evenings), attend the Jubilee Lecture, the annual supper, and some of the social events (approximately one per month, usuallyThursday evenings).

1 — a ‘younger member’ as defined in the Society’s rules

We are delighted to confirm that the Jubilee Lecture will be given by Roger Bootle, an honorary Fellowand leading economist. Roger will discuss the changes needed to make the financial system safe against a repeat of the recent financial crisis, including discussion on breaking up the banks, capital requirements and regulation. He will also discuss the implications for how we should regard the financial sector of our economy.

Roger Bootle,economist

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Now, let’s talk about the importance of financial modelling.

The world has changed. Rely on a proven financial modelling solution. MG-ALFA®

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Regulatory driversInvestment

Driving testsUmar Ilyas steers a course through the regulatory drivers in areas of institutional investment

Umar Ilyas is a seniorinvestment and risk actuary at Investment Solutions. The views represented in this article are the author’s and not necessarily those of his company

22

In the UK a number of regulatory changes have affected the investment behaviour of various institutional investors. Regulation shouldn’t

necessarily be the main driver of investment strategy — other factors including governance requirements, solvency, objectives and risk appetite/tolerance of the various stakeholders will need to be considered. However, the impact of regulation continues to be a key influence on investment decisions, leading to meaningful changes to the asset allocations of institutions. These changes alter the price and amount of funding available to companies, such as the cost of capital.

In this article I examine some of the more notable regulatory drivers on the horizon affecting pension schemes and insurance companies.

Pension schemesIn the world of defined benefit (DB) pension schemes, the demise of the minimum funding requirement (MFR) in the mid-noughties gave way to the statutory funding objective (SFO), which helped facilitate a

August 2011

move away from a concentration in UK equities and UK government debt to a broader strategic asset allocation, including an increased exposure to alternative assets. As pension schemes continue their move away from equities, this is set to grow further. In addition, the growth of liability-driven investment (LDI) is set to continue. Designed to immunise the scheme funding against changes in interest rate and inflation, implementation is usually through derivatives and appropriate bonds.

The impact of the revised International Accounting Standards (IAS) 19 regulations is likely to add another nail to the equities ‘coffin’. Companies will have to use a discount rate based on AA-rated corporate bond yields rather than the expected return on the scheme’s assets. This removes one of the incentives to invest in potentially higher-returning asset classes. Investment strategies with a greater sponsor influence may look to further ‘de-risk’, moving more of their assets into ‘protection’ assets. In addition, the Pension Protection Fund (PPF) will, from 2012/13, start to use scheme investment risk to calculate the levy payment.

Although the implications of this change shouldn’t be a key driver in setting the investment strategy, in some cases it will increase the sponsor’s focus in trying to minimise the levy payment.

The majority of DB schemes are now well into their journey towards the end game. However, in order to better secure members’ pension benefits, the ‘de-risking’ process has to be managed more effectively. Whether this means focusing on a scheme’s technical provision funding basis or a more

» Insurers are some of the largest investors in domestic financial markets and any change in their investment behaviour could have a significant effect on the demand/supply of various asset classes «

prudent ‘self-sufficiency’ basis, and eventual buy-out/in of the liabilities, the need for a good governance framework is essential. This will also increase the desire to invest in assets that are more tightly correlated to the nature of the liabilities, as well as providing some upside potential — for example, infrastructure-type assets. For those schemes with an eye towards eventual buy-in/out, they will need to be mindful of the pricing bases used by insurers. To reduce the basis risk, it is likely regulatory changes taking place in the insurance space may indirectly influence some schemes’ asset allocations.

Insurance companiesIn the insurance world, the impending Solvency II regulations are just around the corner. Insurers are some of the largest investors in domestic financial markets and any change in their investment behaviour could have a significant effect on the demand/supply of various asset classes, impacting the pricing and cost of capital.

Under Solvency II, capital will need to be held to reflect the short-term volatility in the market value of assets and ensure Value at Risk (VaR) over a one-year time horizon is within prescribed confidence intervals. As Solvency II places greater emphasis on asset liability modelling, any ‘mismatching’ will increase the capital requirement for insurers.

The current proposed capital charges aim to reflect the price volatility of each asset class. The explicit charges vary from 49% for private equity right the way through to applying no capital charges for European Economic Area government debt. Whether the capital charges applied to the various asset classes are fair and appropriate is questionable. As of late, the sovereign debt crisis continues to grip parts of Europe, and assigning no capital charge on debt issued by sovereign countries where there are perhaps longer-term structural issues, appears counterintuitive. On the other hand, some asset classes with attractive risk/return profiles are perhaps being treated too harshly under the proposed regime.

Under Solvency II, the liability discount rate used to value the insurers’ technical provisions will be ‘swaps plus a liquidity

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premium’ (changing the perceived risk-free rate). This will be a key influence on investment strategy, leading to an increased use of derivatives — for efficient portfolio purposes — in order to better manage the balance sheet volatility. Another important thing to note is that the liquidity premium is based on a reference index — therefore there is no dependency on the underlying assets of the insurer. Investment in other interest rate hedging tools or funds, such as long gilts, will therefore leave a basis risk. However, with no capital charge on gilts, and long gilt yields being greater than swap rates at present, retaining exposure to gilts should be attractive. Insurers may also look to invest in gilts with a view to setting up reverse repurchase agreements — they could lend the gilts to banks and capture additional yield for providing this liquidity.

Given the capital charge levels, a reduced level of investment in non-EEA debt is likely. In addition, it is expected there will be a greater exposure to short duration credit where the risk-adjusted return, allowing for any capital charge, is higher. However, investment in long-dated credit may be impeded as the capital costs and potential balance sheet volatility (basis risk) make it less attractive.

Low-equity allocations are likely to be maintained given the high capital charges of 30% for global equities (members of the Organisation for Economic Co-operation and

Development or EEA) and 40% for other equities.

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A ‘symmetric adjustment’ will also be applied. This adjustment is designed to avoid procyclicality and will modify the stress test, up or down, by a maximum of 9%, depending on where global equity prices are trading relative to their recent average. Reduced allocation to direct property as a result of higher capital charges (25%) is also expected. However, investment in real estate debt may be more appealing due to capital efficiency. As things stand, most alternative asset classes do not appear to have fared well under Solvency II. Deemed as ‘other equity’, a 49% charge will be applied — not surprisingly a lower allocation to alternative asset classes, including private equity and hedge funds, is likely to result.

An increase in the use of financial engineering is also expected, including total return mandates. The use of swaps for duration matching, as well as changing the risk/return profile of conventional assets, will require investments to beat cash plus the illiquidity premium, so as to minimise the re-investment risk.

A further requirement will be to ‘look through’ to underlying assets. The capital charges may impact decisions about efficient asset allocation. Thought should be given to how insurers using an internal model will properly capture these risks. This is likely to increase the attraction of segregated mandates, as well as more transparent investment holdings.

An investment strategy of buy and hold is likely to be less attractive under Solvency II.

A move is expected towards a dynamic asset allocation and risk management framework, with increased recalibration, in order to maximise capital efficiency. Otherwise, significant capital may need to be held against mark-to-market spread risk.

Well-capitalised insurers are expected to have greater scope for adding risk-adjusted value though their investments. However, insurers with weak capital levels may require more assistance. Across insurers, this is likely to lead to a diverse range of investment strategies. In any case, investment governance will need to be improved for all insurers to meet the challenges under Solvency II. Investment decisions will need to take account of risk-adjusted return after the capital cost of risk. This should form part of the insurer’s own risk and solvency assessment and enterprise risk management framework.

SummaryRegulatory drivers will continue to play a key role in the investment strategy of both pension schemes and insurance companies, leading to changes in asset allocation and capital markets behaviour.

With the impending Solvency II legislation, governance requirements are enshrined within the three main pillars underpinning the regulations. Investment governance and risk management will play a bigger role so that insurers maximise capital efficiency. Driven by a need for market-consistency and better

transparency, it remains to be seen if all parties rise to the challenge. ■

August 2011 23

Pensions fiduciariesInvestment

Aiming for a good outcomeChristine Berry asks where the responsibilities lie for pensions fiduciaries

Christine Berryis policy officerat FairPensions and author of the report, ‘Protecting our Best Interests: Rediscovering Fiduciary Obligation’

24

W hen it comes to ensuring good investment outcomes, the role played by qualified actuaries as investment consultants is vital.

And with the introduction of auto-enrolment in 2012 — predicted to bring an extra five to eight million people into saving through

August 2011

workplace pension schemes — this role will only grow in importance. But what does this weighty responsibility mean for consultants?

Traditional trust-based occupational pension saving is built on the legal foundation of fiduciary obligation. Trustees have a clear duty to act in the best interests of their beneficiaries: this includes a duty to avoid conflicts of interest, to treat beneficiaries impartially and to make prudent decisions based on appropriate advice (which is where the consultant comes in). So far, so simple. But these legal assumptions were developed centuries ago, at a time when trustees were mostly individuals making investments on behalf of family or friends. A very different landscape, then, from the hugely complex web of relationships that characterises today’s capital markets.

Today, it is generally agreed that trustees can delegate their powers, but not their fiduciary responsibilities. But does this mean that those they delegate to have no parallel responsibilities? Consultants and asset managers arguably exercise as much discretion as the modern trustee. Asset managers make many of the day-to-day investment decisions that were the preserve of trustees themselves in days gone by. Consultants are not given the same operational discretion. But trustees are legally obliged to seek their advice and, as the Myners Report noted a decade ago,

rarely have the expertise to challenge that advice. This puts consultants in a position of enormous power — but does that power imply a fiduciary responsibility?

Fiduciary duty is a common law concept, which means there is no dusty old statute book listing all the positions that entail fiduciary duties. Instead, there is centuries of case law establishing various criteria for when a fiduciary relationship arises. The Law Commission has summarised these criteria as “discretion, power to act, and vulnerability”. It also concludes that these criteria are met by the relationship between investment advisors and those they advise. Indeed, in the US, the Supreme Court has explicitly confirmed that investment advisors are fiduciaries — although there’s been no similar confirmation in the UK.

The reaction to the suggestion that consultants may be fiduciaries has been intriguing, with responses ranging from ‘Of course we’re not’ to ‘Of course we are’. One consultant argued that asset managers might be fiduciaries but consultants weren’t, because they didn’t exercise the same discretion over assets. Another argued that asset managers weren’t fiduciaries but consultants were, because the decisions they advise on are much more strategic and fundamental. This in itself is a powerful testament to the confusion and ambiguity surrounding what is, after all, a pretty

fundamental question.But does it really

matter, or is this all just academic? Do we need to

know who is a fiduciary and who is not, as long as all parties in the investment chain are clear on their contractual

responsibilities? To try and answer that,

let us look at the two key fiduciary duties: loyalty and prudence.Fiduciary

investors have a duty to invest prudently, exercising due skill and care and taking all relevant considerations

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into account. A strong case can be made that this confers a similar duty on consultants even if they are not fiduciaries in their own right — since they have contractual and professional duties to help trustees fulfil their own fiduciary responsibilities. This implies a duty not just to react to what trustees ask of them, but to proactively raise issues that could affect outcomes for beneficiaries, even — perhaps particularly — if trustees seem unaware of them. An increasingly relevant example is the exercise of stewardship and ‘responsible ownership’.

The debate around the new UK Stewardship Code — which encourages fund managers to be active owners of their investee companies — has focused largely on corporate governance. In the run up to the financial crisis, investors were accused of being ‘absentee landlords’, failing to take the banks they owned back off the edge of the cliff. Yet investors’ legal responsibility is not to the companies they own, but to the people whose money they manage. Stewardship matters because it contributes to stable long-term returns, and that is very much a fiduciary issue. Asset owners are being encouraged to apply the Code by including it in their mandates and monitoring. But this suggests that consultants in turn may have a responsibility to proactively raise the issue with asset owners.

More specifically, there is increasing evidence that shareholder engagement on environmental, social and governance (ESG) issues can improve long-term returns. In addition to the wealth of theoretical and empirical research, last year brought a stark lesson in the perils to investors of ignoring ESG issues, when an environmental disaster led BP to cancel its dividend for the first time since World War II. There were plenty of warning signs about BP’s lax approach to health and safety — if investors had heeded these warnings and demanded improvements, the Deepwater disaster might have been prevented. The consultant’s role in this context is to help schemes ensure that their policy on ESG issues is robust and that their asset managers are on top of the risks involved.

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Yet in a recent survey on this issue, around half of consultants viewed their role as ‘secondary or reactive’. Another survey concluded that “client demand remains the main driver for consultants to offer responsible investment services”. This approach seems to be mirrored elsewhere in the investment chain, with the unfortunate result that nobody feels truly responsible for ESG integration. A survey of asset managers in 2009 found that one of the biggest barriers cited to greater integration of climate change was lack of client demand. In other words, it was up to trustees to ask their asset managers to do more. Yet when trustees themselves are surveyed, they often argue the opposite — if these issues are material to investment outcomes, then surely managers will factor them in without having to be told?

The traditional assumption that trustees alone have fiduciary duties would place the responsibility squarely at their door.

But from a wider fiduciary perspective, it is arguably everyone’s duty to ensure proper integration of material ESG risk factors. Consultants, far from being extraneous to this chain of accountability, are in a particularly good position to break the impasse — proactively raising the issue of stewardship with trustees, and helping them to assess prospective managers’ approaches.

So what about the second core fiduciary duty — the duty of loyalty? It is this that really distinguishes a fiduciary from someone with a contractual or professional duty to uphold someone else’s fiduciary duties. Fiduciaries must act in the best interests of beneficiaries — and (crucially) in case of a conflict, in the beneficiaries’ sole interest. This means both avoiding personal conflicts of interest

» Do we need to knowwho is a fiduciary and who is not, as long as all parties in the investment chain are clear on their contractual responsibilities? «

and not prioritising the interests of third parties. This duty of undivided loyalty lies at the heart of fiduciary obligation — its whole purpose is to protect vulnerable people from self-interested or reckless behaviour by those who act on their behalf. Yet when commercial investment agents use the term ‘fiduciary’ to describe themselves, this rarely seems to be what they have in mind — instead, they talk about the duty of prudence, which, as we have seen, is perhaps less unique to the fiduciary position.

So if consultants really are fiduciaries, what does this mean for their duty to avoid conflicts of interest? Clearly, potential conflicts can never be eliminated completely — for instance, while schemes have an interest in controlling costs, commercial providers inevitably benefit from recommending more costly and complex services and investment approaches. Indeed, there is some evidence that advisors may unwittingly privilege these commercial interests over the best interests of scheme members. For instance, the average externally managed pension scheme now has nine mandates, compared to just three a decade ago. This trend has cost pension funds up to a third extra in management fees, as well as extra consultants’ fees due to the higher number of manager selection processes. It is questionable whether the performance advantages of this increased complexity really outweigh the costs.

Of course, this is not to suggest that consultants — or indeed, asset managers — are inattentive to the need to manage conflicts of interest. Consultants may be subject to FSA rules or to actuarial professional standards that require conflicts to be managed. But these are less stringent than fiduciary duties, and there is clearly no room for complacency when it comes to making sure that beneficiaries’ best interests are protected. With up to eight million people about to be introduced to the world of private pension saving, it is vital that trust and confidence in the system is built and sustained. Making this a reality is everyone’s responsibility — including consultants. ■

August 2011 25

Inflation-linked liabilitiesPensions

The tipping pointMatthew Furniss finds that high inflation isn’t necessarily a bad thing for pension schemes

Matthew Furniss is assistant vice-president at PensionsFirst

Since the start of compulsory indexation, inflation has been one of the key risks faced by UK pension schemes. With retail prices index

(RPI) inflation recently creeping above the 5% mark for the first time in nearly two decades, trustees and sponsors of some defined benefit (DB) pension schemes are fretting about the impact that increases in inflation could have on their funding positions, with many looking towards reducing their inflation exposure through the purchase of inflation-hedging assets (such as index-linked bonds or swaps).

On the other hand, some pension schemes may find that caps on pension increases mean that high levels of inflation have less of a negative impact on funding levels than might be expected. Indeed, increases in inflation beyond these caps could in fact be beneficial for schemes, as asset values continue to rise while liabilityvalues are capped. Our research shows that, for a sample pension scheme, the point where further inflation could be beneficial — otherwise known as the ‘tipping point’ — could occur when inflation reaches 1.2% above current market levels. Given the Bank of England has signalled that a rise in rates would undermine an already

26 August 2011

weak economy and curtail a much-needed rebalancing towards exports, this is not an unimaginable scenario.

The ‘tipping point’ will, of course, differ depending upon the specific nature of both the scheme’s benefit structure and its asset portfolio. It is therefore imperative that schemes understand exactly how their balance sheets are impacted by various inflation scenarios, particularly given today’s volatile economic environment.

Inflation impact may varyInflation affects pension scheme benefits in a number of ways. Firstly, each member’s benefits will typically increase annually — with the increase rate usually tied to inflation. UK law holds that pensions accrued after 1997 must increase every year after retirement by at least the rate of inflation up to 5%; for pensions accrued after April 2005,

» Schemes are beginning to wonderat what point inflation increases will start to reduce deficits instead of increase them «

the cap on increases is 2.5%. The majority of deferred benefits also have RPI-linked increases, however here the total increase over the whole period is compared to using a fixed assumption of 5% per annum and the smaller of the two is used. There may also be those still accruing benefits or with pensions linked to national average earnings. These benefits are often seen as real in nature and therefore valued with reference to expected future inflation.

While realised inflation clearly affects the current level of benefits payable, future inflation expectations are just as important in determining the overall cost. The impact of a scheme on its sponsor’s balance sheet and cashflow is driven by valuations that allow for the projection of future pension increases, naturally incorporating inflation expectations. The higher these expectations, the higher the liabilities, deficits and subsequent contribution requirements.

On the other side of the balance sheet, schemes’ asset values may increase due to rising inflation expectations, but not always at the same rate as the liabilities. Assets such as index-linked bonds, inflation swaps, infrastructure investments and property with inflation-linked leases are linked to the RPI and therefore react directly to changes in

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inflation rates or expectations. Other assets such as equities and real estate investment trusts are also viewed as real in nature but, without a direct link to inflation, may react over a longer time period. Clearly, the impact of an increase in inflation on a scheme’s funding levels stems from the effect on both its assets and liabilities. This varies among schemes depending on the nature and maturity of their liabilities, the amount of real assets held and to what extent they are directly impacted by inflation.

Thanks to the explicit aim of monetary policy to keep inflation low and stable, inflation and inflation expectations have,

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until recently, remained under 5%, for example, below the cap levels associated with most pensions. Changes in inflation expectations have therefore fed through directly to liability values. For schemes not fully hedged against inflation, increases in asset values as a result of higher inflation have generally failed to match the increase in overall liability values, resulting in an overall deterioration in funding positions.

However, as inflation levels reach the 5% mark and the caps applying to most benefits have begun to bite, schemes are beginning to wonder at what point inflation increases will start to reduce deficits instead of increasing them.

Finding the ‘tipping point’To illustrate the point at which inflation can positively impact a scheme’s portfolio, we can investigate the impact inflation increases may have on a real scheme. Consider a pension scheme with assets totalling £363 million and liabilities totalling £402 million — leaving it 90% funded. We can chart the impact of inflation increases across both sides of the balance sheet. The results from this analysis are highlighted in Table 1.

The analysis shows that the example scheme, subjected to a 1% increase in inflation expectations, would see its liabilities increase by about 10%. However, an increase from 2% above the current inflation curve to 3% would only increase the value of the liabilities by about 2% due to the protection afforded by the liability caps.

Turning to the other side of the balance sheet, we find that, as inflation expectations rise, so does the value of its index-linked assets and, as there are no caps on the inflation-linked cashflows from these assets, the values continue to increase above and beyond the corresponding increase in the liability values.

The result is that the scheme’s funding level initially falls as inflation expectations increase, and then recovers as expectations rise further. The point at which this recovery begins, or its ‘tipping point’, occurs when inflation rises start to improve the funding level. In this case the tipping point is around 1.2% above current market levels, so an inflation curve of approximately 5% per annum. This adds a key metric to the information for the scheme to consider when contemplating the impact of inflation.

The importance of understanding riskAs shown above, high inflation can reduce pension scheme deficits. However, the extent of this reduction depends on the nature of inflation changes and the make-up of the schemes’ assets and liabilities. Clearly, it is important for pension schemes to delve deeper into this issue and to understand their own individual risks from inflation in both the short and longer term.

In the past, pension schemes have been unable to stress-test the impact of changes in key risk factors — such as inflation — across the whole of their balance sheet. However, this is no longer the case. New technology provides DB schemes with the tools necessary to better understand the risks that they face and the potential impact on funding levels. By modelling both their assets and liabilities on a common platform, scheme sponsors and trustees are now able to stress-test both values under different inflation scenarios. This advance allows schemes to analyse the impact inflation might have on funding levels and determine the point at which further increases in inflation actually become beneficial, giving them a crucial advantage in managing and mitigating risk. When schemes are able to pinpoint the moment at which an increase in asset values outpaces their liabilities, they have found their ‘tipping point’. ■

Inflation curve 31/12/2010 Assets Liabilities Funding level

RPI £363m £402m 90%

RPI +1% £379m (+4%) £441m (+10%) 86%

RPI +2% £400m (+10%) £462m (+15%) 87%

RPI +3% £425m (+17%) £470m (+17%) 90%

RPI +4% £457m (+26%) £471m (+17%) 97%

RPI +5% £497m (+37%) £472m (+17%) 105%

Table 1 — Valuation results under increased inflation scenarios

The tipping point

August 2011 27

StatinsLife

Heart of the matterActuaries should avoid jumping to conclusions about the risk factors associated with heart disease, says Garth Lane

Garth Lane is a valuation actuary and Solvency II expert at RGA in the UK

28

A s one swallow ‘does not make a summer’, so correlation does not imply causation. When actuaries concern themselves with risk

factors they try to avoid the confounding of correlation with causation. We need principles to guide us when we suspect a causal relationship exists or when we decide to use a rating factor when underwriting risks. We generally agree that a reasonably strong correlation is a prerequisite for a risk factor in its association with a particular disease, and acknowledge that this does not make the risk factor a cause.

In 1965 Sir Austin Bradford Hill laid out

August 2011

the accepted nine fundamental principles that should guide the practitioner in distinguishing correlation from causation. The most important of these are the strength of association, the existence of a biological gradient (the dose-response relationship) and temporality — the last of which he downplayed at the time. It is, however, vital that the presumed cause precedes the event. The principle of coherence is also important as any presumed causal relationship should not seriously conflict with generally known facts.

We start by looking at correlation within the context of the original

lipid hypothesis in relation to the health of our hearts.

Heart health: The lipid hypothesis (the consumption of saturated fat causes heart disease)This infamous hypothesis was proposed by Ancel Keys in 1953 based on statistics of consumption of saturated fat in six countries (Figure 1).

Keys neglected to disclose that he had selected six countries out of a total of 22 whose data were available to him. His misuse of the data was exposed by Yerushalmy and Hilleboe in 1957 when they

A young man, a great spendthrift, had run through all his patrimony and had but one good cloak left. One day he happened to see a Swallow, which had appeared before its season, skimming along a pool and twittering gaily. He supposed that summer had come, and went and sold his cloak.

Not many days later, winter set in again with renewed frost and cold. When he found the unfortunate Swallow lifeless on the ground, he said: “Unhappy bird! What have you done? By thus appearing before the springtime you have not only killed yourself, but you have wrought my destruction also.” — Aesop

Fat calories as % of total calories

Six countries’ data

USA

England and Wales

CanadaAustralia

Italy

Japan

Curve fitted to data

CHD

deat

hs p

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00,0

00

Adapted from Ancel Keys (1953)

00

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800

10 20 30 40 50

Fat calories as % of total calories

22 countries’ dataAdapted from Yerushalmy and Hillebowe (1957)

CHD

deat

hs p

er 1

00,0

00

0

0

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USA

Sweden

DenmarkNorway

Netherlands

Italy

PortugalJapan Chile

Mexico

FranceCeylon

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Great Britain

West Germany

New Zealand

Australia

Ireland

Switzerland

Finland

Israel

Austria

Figure 1 — Ancel Keys: Saturated fat as a cause of coronary heart disease (CHD)

Figure 2 — The full 22-country data set

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published the graph of the full data set (Figure 2). When the full data is used, the biological gradient disappears — as does the strength of the association. The lipid hypothesis was consequently modified so that dietary cholesterol became the villain instead of saturated fat.

Many years of research followed but Ancel Keys finally admitted in 1997 that “There’s no connection whatsoever between cholesterol in food and cholesterol in blood. And we’ve known that all along. Cholesterol in the diet doesn’t matter unless you happen to be a chicken or a rabbit”.

So, if saturated fat and cholesterol in the diet do not matter, what does? Clearly, the implication is that it is cholesterol in the blood and the hypothesis has been modified again.

Heart health: The lipid hypothesis continued (high total serum cholesterol with a high LDL/HDL ratio causes heart disease)It should be noted at this point that this is still a hypothesis. Unfortunately, it is medical orthodoxy and even perhaps dogma that serum cholesterol levels should be managed down. If it were not for the class of drugs called statins this would not be possible, as the human body manufactures virtually all of the cholesterol needed (mainly in the liver) and has mechanisms to regulate the levels of cholesterol. To our knowledge, it appears that no one has yet demonstrated the satisfaction of Sir Austin Bradley Hill’s criteria in relation to this modified lipid hypothesis.

In fact, many people with heart disease have low levels of cholesterol. In the January

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2009 edition of American Heart Journal it was reported that, of the 136,905 people admitted to 541 hospitals in the United States with heart attack whose lipid levels were recorded, nearly 75% had “normal” LDL cholesterol levels, which is below 130mg/dl (or 3.4 mmol/l).

There are many statin drug studies that purport to prove that lives will be saved by reducing cholesterol. However, there appears to be no primary prevention study that shows conclusively, in terms of a strong absolute response, that the total mortality end point will be affected by the use of statins. This means that, in most of the study groups, as many people died as in the control groups. What is the use of being saved from heart disease only to die from some other cause? Even worse, higher cholesterol levels appear to be protective against cancer in the longer term and statins have significant and probably under-reported side effects.

Table 1, extracted from a recent study by Hippisley-Cox and Coupland, illustrates the effect of medicating a large proportion of the whole population. The number of conditions is probably under-reported because some symptoms would have been mild and therefore not reported and cases of memory loss may have been ascribed to age-related conditions.

It is important to note that statins have shown significant benefits in the case of secondary prevention, albeit not necessarily

» Statins are not the swallows heralding a summer free of heart disease for everyone «

from their effect on cholesterol. Statins have pleiotropic effects; that is to say they have other effects such as anti-inflammatory, plaque-stabilising or anti-coagulant effects. These effects are available at much lower doses than those that are required to aggressively manage down the level of cholesterol and may be the ones preventing further heart attacks in the secondary prevention trials.

Final thoughtsAs actuaries we should consider updating our risk calculators to take account of current research and especially look at the age ranges for which cholesterol may still be an appropriate risk factor, especially for women where there appears to be little or no dose response.

We have an obesity epidemic in spite of the accepted wisdom on diet that emerged from flawed science originated by Ancel Keys. We suspect that overconsumption of carbohydrates may have something to do with this, but we also suspect that giving obese people a statin potentially acts to perpetuate the continued epidemic of obesity as it allows them to avoid lifestyle and behavioural changes in the belief that the statin will prevent future heart attacks.

I will continue to enjoy a full English breakfast, shorn of the guilt that this may affect the health of my heart. At my age (50+), and free of heart disease with a cholesterol level higher than the recommended level, I am quite happy not to increase the five-year probability of avoiding a heart attack from 98.2% to 98.8% by taking a statin for five years. The probability that I will avoid nasty side effects is 100%.

Statins are not the swallows heralding a summer free of heart disease for everyone. Arguably, if we do not insist on a proper answer to the question of what really causes heart disease then we may unduly medicate millions of people for little benefit at the danger of making a significant number of them seriously ill. ■

An extended version of this article can be found at http://bit.ly/pEKdfv

MORE CONTENT ONLINE

Women Men

Condition Number 95%, CI Number 95%, CI

Acute renal failure (kidney failure) 17 (9, 26) 22 (14, 32)

Cataract 252 (213, 292) 151 (125, 178)

Liver disfunction 65 (50, 80) 64 (51, 79)

Myopathy (muscle weakness — worst case, muscle death)

32 (22, 44) 95 (77, 116)

Table 1 — Number of extra cases per 10,000 treated

August 2011 29

30

Marjorie Ngwenya talks to Paul Sweeting about balancing volunteer work, authorship, academic obligations and time with his family

Spinning plates

Paul SweetingQ&A

Why did you choose to become an actuary?Initially, it was the challenge that attracted me, but I then found that I actually enjoyed the job. I wanted to work in an area that required maths, but I soon found that being able to do the numbers was only a small part of being an actuary — interpreting and communicating the results was just as important. This is what got me hooked; the potential scope of the role and the range of opportunities are what have kept me interested over the years.

You are a member of the Institute and Faculty Council and sit on the management board. What motivates you to volunteer your time to these causes?I believe that the actuarial qualifications offer a great foundation for a career in financial services, and I’m keen to make sure it stays that way. In areas such as enterprise risk management (ERM), the opportunities for the actuarial profession are enormous, but so are the threats from other organisations. I feel it’s important that we position our profession such that we can best address these challenges, and that we equip our members with the skills they’ll need. Being a member of Council offers a great opportunity to

August 2011

influence the strategy of the profession, while sitting on the management board means that I can help to support the implementation of the strategy.

What has been your greatest professional challenge to date?Probably working on the successful merger of the Institute and Faculty. While the vast majority of fellows from both the bodies believed that it was right to merge, many also had a range of concerns about the implementation of the merger. Finding a way to take these into account was hard work, but it produced a better result — this was borne out by the proportion of

both bodies that voted for the merger.Of course, the next challenge is to

ensure that the merger delivers improved services to all members of the profession, and equips them for the changing financial environment — something that Council is working on from a strategic point of view, and the management board is helping to implement.

Your career developed extensively in the investment arena and then you took an alternative route into academia. Talk us through that chain of events.I’ve been involved in research with the profession for many years, with presentations to the Staple Inn Actuarial Society and at the Profession’s conferences, sessional papers and, more recently, publications in the Annals of Actuarial Science. I’d also taken up a role as a visiting lecturer. After a while I thought that, rather than keep trying to fit all of this around my day job, I’d make it my day job instead. Fortunately, the University of Kent was looking to expand, and my skills fitted their needs. This was a lot of fun,

» The things that keep me busy are hugelydiverse, so as long as there are interesting things to do, I’ll keep doing them «

and I had thought that I could just while away the days carrying out research and teaching students. However, I started to feel that removing myself from industry was making it harder to keep a practical edge to my research, something I have always thought of as important. This — together with the fact that I really enjoy working in the City — meant that when the right role came up with J.P. Morgan Asset Management, I was happy to take it. The fact that I can combine this with some work at the University of Kent is an unexpected bonus.

You are now a managing director at J.P. Morgan Asset Management. What is your remit and what does this new challenge mean in practice?We’re focusing on helping institutional investors understand the risks they face, and developing investment solutions to address these risks. I’m responsible for leading this effort in Europe. As well as developing bespoke solutions for clients, we’re also producing a range of research papers aimed at highlighting the issues facing investors — and proposing solutions to these issues.

You have participated in numerous conferences to present your ERM research and thought leadership. What are your top tips for public speaking?Find a technique that works for you. Some people can make wonderful off-the-cuff speeches, while others need to have something written down — and the written techniques range from holding a handful of cue cards to having the full text of the speech in front of you. None of these solutions is more ‘right’ than others — although different approaches might work better for different situations — but the important thing is to see what’s best for you.

Experience also helps — there’s no substitute for getting up there and talking, while no amount of preparation is a substitute for time on your feet in front of people. Finally, remember that most of the time people are interested to hear what you

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have got to say, so you are unlikely to be facing a hostile audience.

Your book on ERM is soon to become part of the Profession’s ST9 exam syllabus. How long did it take you to write the book? What are its highlights and will there be another?The book probably took about a year to write. It started as a high-level overview I wrote as a sessional meeting paper, so I thought it would be straightforward to expand it into a book — but it took a little longer to come up with the finished product than I imagined.

I hope that the highlight will be the overall accessibility of the text — that and the beautifully rendered graphics. However, it’s not really for me to say what the best bits are. Apart from the fact that I am too close to it to be even remotely objective, other people will have to say what they like, and what can be improved in future editions.

Apart from a second edition of Financial Enterprise Risk Management — which I can’t bring myself to think about at the moment — I have also agreed to write a book on mortality and longevity. This will look at not just the mathematical aspect of this subject, but also insights from other disciplines and real-life considerations. Watch this space…

What are your views on the CERA qualification for actuaries?I think it’s a great qualification. First, it’s accessible. In terms of examinations, associates need take only a single additional subject to obtain the CERA qualification, meaning that it can be gained more quickly than fellowship. It also covers a great range of skills, from the maths that you need to understand complex risk interactions to the crucial qualitative considerations that are needed when looking at a broad spectrum of risks. Finally, the global nature of the qualification means that it’s ideal for actuaries wanting to use their qualification abroad. Fourteen actuarial associations signed up to CERA last year, giving it truly worldwide recognition.

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What top three issues should insurance company boards have in mind for 2011 and beyond?It might sound a bit obvious given my current role, but investment strategies in the face of Solvency II must be near the top of their lists. This doesn’t just mean considering how investment strategies

Paul Sweeting is a managing director at J.P. Morgan Asset Management, where he is European head of the firm’s Strategic Investment Advisory Group. Before this, he was a professor of actuarial science at the University of Kent, a post he still holds on a part-time basis. Paul has also worked in pensions and investment consultancy, and as a longevity strategist. Paul is a member of the Council of the Institute and Facultyof Actuaries, and also a member of the Profession’s management board. He has written a number of papers on pensions, investment, risk and longevityissues, and is a regular contributor to the print, broadcast and online media. His book Financial Enterprise Risk Management is due to be published in September 2011. As well as being a Fellow of the Institute of Actuaries, Paul is a Fellow of the Royal Statistical Society and of the Chartered Institute forSecurities and Investments. He is also a CFA Charterholder.

should change once Solvency II is in force, but also how any changes in strategy at an industry level will affect the returns on various asset classes in the intervening period. The way in which insurance companies reach their customers given the Retail Distribution Review is also something that should be high on the agenda for many firms. Larger companies will also need to think about how, and if, they access the rapidly growing developing markets.

How do you measure your success?If I’m stretching myself but still doing a good job, then I would count that as one measure of success. If I give all of my commitments the time they deserve — including spending time with my family — then I feel like I’m getting it right.

What’s the greatest piece of advice you’ve ever been given?I’m not really very good at taking advice and I think — so far — that’s paid off. ‘Just do it’ is probably as good a piece of advice as any.

What do you do to relax?I’m a bit of a petrolhead, so cars and bikes feature quite highly — driving and riding rather than watching. In complete contrast, I also enjoy listening to all sorts of music, from Bach to Bombay Bicycle Club, and I play the piano, though too infrequently to be any good.

In terms of sport, I always try and pack a pair of trainers when I’m travelling so I can go for a run, although I don’t have the time to run as far as I used to, having completed the London Marathon in 2002 and 2004.

And while it’s not always relaxing, spending time with my two-year-old daughter is always good for taking my mind off work.

When do you find time to relax with all your various competing commitments?I do firmly believe in the adage that “a change is as good as a rest”. Although I’m busy, the things that keep me busy are hugely diverse, so as long as there are interesting things to do, I’ll keep doing them. ■

August 2011 31

IndiaLife

A new dawnRajagopalan Krishnamurthy reflects on the strategic shifts in India’s life insurance industry, which have seen it grow to the world’s eleventh largest in just ten years

Rajagopalan Krishnamurthy is managing director of products, distribution and markets at Towers Watson, India

3

India, as a global sweet spot, attracts the attention of every major insurer. The country started in 20th place in the global insurance league table when

the market opened to private players in 2000, moving up to 11th place by 2010. Since 2000, a total of 22 life insurance companies have set up operations in India. Most major multinational insurers are represented through joint ventures (the only option for foreigners), and all but two

LIC 72.1%ICICI Prudential Life 5.3%SBI Life 5.1%

HDFC Standard Life 2.8%

Bajaz Allianz Life 2.6%Reliance Life 2.3%Others 9.8%

Figure 1 — Market share of leading life insurers in India

2 August 2011

new players are licensed as joint ventures. Total foreign direct investment in insurancecompanies stands at close to IRs51 billion (about US$1.1 billion). While the state-owned Life Insurance Corporation (LIC) stilholds a significant majority of market share,other companies have established footholds(Figure 1).

Favourable economic profileIndia is recognised globally for its trillion-dollar economy, consistent high growth of more than 8% per annum, its vibrant democracy and institutions, and cheap labour with good English skills. A recent study predicts that India’s economy will grow fivefold in the next 20 years. The country’s favourable demographic profile is of special interest to insurers — 56% of Indians were under the age of 15 or over the age of 64 in 2010. Research shows that India’s working-age population will increase by 136 million by 2020. In comparison, China’s working age population will grow by 23 million. Indian households save more than those in other emerging markets such as China and Brazil. Household savings were 25% of India’s gross domestic savings in 2008, compared with 5% in Brazil and 15% in China. The figures for Britain and the US are 2% and 1% respectively.

The large young population, combined

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with the current low rate of life insurance penetration and high rate of personal savings, points to the upside potential for the Indian insurance market.

The propensity to save has led to a surge in investment-linked life insurance policies. The strong performance of Indian stock indices has aided this growth. The Indian stock market gave returns of 22% in 2010, a significant drop from the dizzying 90% gain in 2009, but still impressive nonetheless.

India has attracted a large number of multinational insurers in a short span of time. What have major players learned in the first decade of operations? There are five important lessons:

1. The importance of a strong local partner and brandPrivate insurers have learned that the strength of their domestic partners and their market franchises are vital to sustainable growth. Insurance buyers rely more on the market standing and distribution network of local sponsors than the global image of their foreign counterparts.

At the same time, a few joint ventures have experienced growth constraints because local partners have not been ready to pump in capital as needed to support business volumes and solvency needs.As a result, well-capitalised banks are emerging as preferred partners in insurance

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ventures. Only sound and profitable banks get the necessary approval from the central bank to take a stake in Indian insurance businesses. In fact, entrants such as HSBC and Dai-ichi Life have offered high premiums to banks in order to forge partnerships.

2. Flexible product strategiesLife companies in India have learned that product strategies need to be under constant review to respond to changing risk appetites and customer preferences. As a result, product teams are under pressure to assess the market and come up with new plans, often on short notice, to satisfy distribution partners and as a response to the market environment.

Unit-linked insurance plans (ULIPs) are a prime example of the need to absolutely understand the marketplace. A few companies underestimated customer interest in ULIPs when they were introduced in 2003 and kept to their more traditional plans, thereby missing a slice of the pie. On the other hand, companies that relied solely on ULIPs suffered in the global financial crisis when customers took flight to safety, and again more recently in the wake of regulatory measures that sought to curb the excessive growth of ULIPs at the cost of traditional insurance plans.

3. Distribution efficiencyA key lesson for insurers in India is in distribution, which is witnessing the emergence of new channels such as

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bancassurance. While agencies remain the backbone of distribution, mass recruitment led to quality and sales skill issues, and widespread complaints of misrepresentation of insurance plans ensued.

Most agents consider insurance sales a secondary pursuit for additional income, and they often rely on their immediate contacts to make sales. This has led to high agent turnover and a high percentage of policy lapses, which has affected insurers’ long-term profitability. According to the regulator, the lapse rate on ULIP policies was 26% in 2006 and, according to Towers Watson’s estimates, that has climbed higher in recent years. The regulator has also voiced concerns about the status of orphan policies at many companies.

The low quality of sales and high incidence of policy discontinuance are also evident in bank distribution. A 2008 study that benchmarked bancassurance distribution in India (which was followed by a second study in 2010), showed that distribution practices at bank branches are inefficient and are centred on sales push. Customer service is often mediocre. Indian banks have more than 400 million retail customers, and only about

» The Indian insurance industry is poised for a big leap in performance and opportunities «

1% of them have been cross-sold insurance. The potential is huge, and insurers are now waking up to the need for well-orchestrated implementation plans.

4. Large volumes and small ticketsWhen the market opened, most private insurers underestimated the Indian market’s potential volume and policy sizes. The volume of new business boomed (Figure 2). In 2010, private insurers issued a total of 14.5 million policies, and the state-owned LIC issued close to 40 million. This translates to an average first-year premium of about IRs20,000 (about US$440) per policy. But because policyholders can pay their premium semi-annually or quarterly, transaction sizes are much lower than the annual premium. Managing the resulting huge transaction numbers and service levels has presented a challenge to insurers.

Insurers active in the rural and micro-insurance businesses have also learned to cater to customers who want small policies with annual premiums of IRs500 (about US$11) or even lower, and they have developed mechanisms to collect and account for small amounts.

5. Focus on cost managementDespite robust growth, good cost management is a key issue for private players. Indian regulations prescribe caps on costs, including management expenses. Most private players have breached this limit, citing the additional costs of start-up. While the operating costs ratio for private insurers came down to about 21% last year — a decline of 5% from the previous year — a recent set of new regulatory measures drastically lowering policy surrender charges and capping fund management fees has required insurers to relentlessly pursue cost-reduction initiatives.

SummaryThese developments clearly show that the Indian insurance industry is poised for a big leap in performance and opportunities, notwithstanding the challenges and the strategic issues that the private players — and their foreign partners — face as part of this momentous growth. ■

FY2005FY20040

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Figure 2 — New business premium of insurers

August 2011 33

Predictive underwritingLife insurance

Life in the fast lanePaul Hately looks at life insurance’s aim to balance customer needs for convenience and low prices through predictive underwriting

Paul Hately is head of accelerated underwriting and data insights at Swiss Re Life and Health

The life insurance industry is often accused, and rightly so in many instances, of a lack of consumer focus. The finger is pointed at

products that are not innovative and fail to meet the needs of the modern consumer. At the same time, compared to other industries ranging from retail to general insurance, we are woefully underdeveloped in our use of consumer data to improve the proposition and target customers effectively.

In recent years, predictive underwriting has emerged as a technique that, while still only being whispered about, is increasingly seen in the UK and the US as a potential solution that helps counter both these charges. In countries like these, where there are sizeable and distinct protection markets, predictive underwriting can connect with parts of the population that have not, so far, engaged with protection insurance and thereby make in-roads into closing the protection gap.

While still in its infancy as far as life risks are concerned, the technique is being developed to support a brand’s desire to improve its insurance offering. This is against a backdrop of increasing acquisition and medical evidence costs, along with longelapsed times between order and fulfilment.

A definition of predictive underwriting — sometimes referred to as lifestyle underwriting — would include: n Making life insurance quick and easy to buy. The process allows for most of the traditional underwriting to be bypassed for those people most likely to end up with

34 August 2011

standard terms, had they gone through the long and expensive underwriting process.n A means of targeting customers with an offer. By leveraging information already known about customers, organisations with strong data can make an asset of this and offer consumers additional convenience.n The use of statistical models. These can predict likely underwriting or claims outcomes.n A controlled buying experience. Similar to simplified issue, consumers can access cover at a price considered to be good value for those in good health.

Developments in the UK have so far focused on reducing the amount of traditional underwriting needed for those consumers offered a product through predictive modelling. In the US, life industry talk is more of using predictive techniques to triage the underwriting process and avoid expensive medical tests for healthy people. In general insurance, similar techniques are being used to predict which applicants will have the lowest claims frequency, the lowest rates of fraud and display the most loyalty.

Interesting insightsThe best models are derived from the widest-ranging depersonalised data sets. From the broad range of possible factors, statistical techniques are used to find combinations of predictors that are most correlated with mortality or an underwriter’s view of relative mortality. In other words, while the purpose of a

model is to predict an individual’s likelihood to claim, underwriting decisions can be used to build the model rather than claim data because this is harder to come by. Several projects have been undertaken in the field of bancassurance, using banking data as the predictor. One or two projects have also been explored using supermarket, general insurance or publicly available commercial data as the predictor.

Over the past eight years or so, our work in this field has focused on building models based on depersonalised data held by high-street banks. This is then linked to traditionally determined underwriting decisions for sales made face to face, in branch or in a customer’s home. There is therefore a selective effect at work in the data used to build the model, in that the very ill tend not to apply for life insurance through these methods. As a consequence, to mirror this effect, even the very best predictive models tend to require a degree of filtering through the inclusion of a much-reduced number of traditional underwriting questions.

Whether looking at bank-specific or publicly available data, the strongest predictors of underwriting outcome are age, socio-economic — for example, community or neighbourhood, affluence, occupation and credit — as well as account activity or transactional fields.

If data points exist that are very close to health status then they too are highlighted as predictive of underwriting decision.

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.

As an example of account activity, we have found, on more than one occasion, that frequency of ATM visits proves to be one of the predictors of UK underwriters’ decisionsThis surprising discovery highlights the need not to prejudge which variables will bepredictive. Before it was discovered nobody thought of it, yet it is likely to have links to basic social and occupational activity that other studies show are linked to well-being and mortality.

Model effectivenessAssume we take a large sample of recent underwriting decisions for life insurance policies. Say 80% of these were offered standard rates, or a small loading, and the remaining 20% were significantly loaded or declined. If we then took a random sample of 50% of these decisions, one would still expect an 80:20 split.

If a model is derived that aims to predict underwriting outcome and we then take thebest 50% of lives according to our model, then the model is predictive if significantly more than 80% — the non-predictive average — of the lives selected are deemed to be good risks. The higher this figure, the better. If it is 95%, this still leaves a 5% type II model error1, of all customers in the best 50% of the model — if they all buy the product — that is, the model predicts that they are a good risk but we know they are not (Figure 1).

Traditional underwriting has to be used to remove the worst cases of type II

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error and any additional anti-selection encouraged by the easy-to-buy proposition. Underwriting or pricing can be used to allow for moderately impaired lives that form part of this model error. The statistic used to measure the effectiveness of the model is the coefficient of concordance and anything over 50% is better than random, with the best models seen in this field achieving up to 70%.

Product characteristicsClearly these techniques have the potential to be used across a range of products and distribution channels. Wherever possible, the product, brand and channel combination for any proposition should be derived from a model built on data from the same mix. For example, it would not be appropriate to target independent financial advisers with a proposition derived from a model built on tied sales.

In all cases the product presented to the customer should be very similar to standard products sold using traditional underwriting. It must be kept as simple as possible, in terms of added features and benefits, with limits on maximum sum assured, age at inception and term.

A key assumption, when pricing

» The best models are derived from the widest-ranging depersonalised data sets «

insurance contracts marketed at consumers selected using predictive techniques, is take-up rate by health status. Understanding consumer behaviour is therefore an essential part of the product development process.

Indeed, it is to be expected that some of the type II error lives will not have been able to buy insurance through any other method. Therefore, these would be expected to have a higher take-up rate than the healthiest lives. Furthermore, this effect is exaggerated for those not even represented in the model due to their very poor health.

A way to counteract this anti-selective effect would be to have the insurance linked to the sale of another product or packaged in such a way that all potential customers buy the product, for example, linked to employment or included in a premium banking package.

Users of predictive techniquesThese methods are most appropriate for those who hold a lot of data on their customers. Ideally, they will have access to both predictor data and actual mortality or underwriting experience on some of those same customers. Bancassurers clearly meet these criteria but so too do consumer-centric data-rich companies with links to a life insurer. Examples of these are supermarkets — especially those who already sell financial products — non-life insurers and asset managers.

Predictive techniques are common in other industries and are used in life offices and banks in terms of propensity to buy. Of course, since premiums for life insurance are derived from a very low underlying claim rate, it does not take many more claims than expected to turn a mildly profitable line into one making big losses. We should therefore avoid increasing the attractiveness of the product to the few with a high propensity to claim, and hence increasing the price unfairly for the wider pool. Indeed, when carefully developed, these techniques have huge potential, as they can remove sales barriers that dissuade many healthy people from buying insurance.

1 A type II error: failing to reject the null hypothesis when it is false

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100%

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The blue line shows the cumulative percentage of "bad" customers captured as you widen the targeted population. The base line in red shows the percent you would expect

Figure 1 — Cumulative gains

August 2011 35

Conference preview Life

Tracey Pritchard talks to chair Jason Hurley about preparations for this year’s Life conference, taking place on 20-22 November at the BT Convention Centre in Liverpool

We can work it out…

36

For further information on the Life conference and to book your place, visit http://tinyurl.com/5rql5j2. Book before 20 September to receive the early booking fee.

MORE INFORMATION ONLINE

The theme of this year’s Life conference, ‘We can work it out’, sums up conference chair Jason Hurley’s mood nicely. The managers of

insurance companies have a whole raft of challenges — changes to regulatory frameworks (not just Solvency II), changes to financial reporting, the need to better manage their business, the fragile state of the economy and the ever-changing legal environment.

Mr Hurley wants actuaries to be honest and realistic about the challenges for the industry and the profession. He believes that to fix these problems, actuaries need to understand their role, and need to work together in the bigger, wider community. He is very keen to foster a community spirit, he encourages people to participate, to speak their mind, to think and to have fun.

Mr Hurley suggests that often people focus on “today’s problem” and maybe lose sight of the fact that the industry’s fundamental job is to serve our customers, provide good quality value for money products, that meet customer needs. He questions whether we have embraced technological changes to anywhere near the extent that we should.

Putting this together into a coherent programme means that the conference will cover a number of areas in the main plenary sessions, the key messages being: “Where are we, where are we going and what are we doing about it?”

Plenary sessions■ David Nish, CEO of Standard Life, will share his views of the industry, its challenges and prospects. David is relatively new to the industry, having spent many years working in the electricity industry. It will be interesting to hear the views of a relative newcomer■ Colin Simpson of Goldman Sachs will give an honest and realistic view of how analysts and investors see the life insurance industry

■ Ross Walker and Andrew Roberts of RBS will offer an economists’ insight into UK and global markets.

Customer focusMr Hurley firmly believes that actuaries

Jason Hurley, chair of the Life conference and exhibition committee

August 2011

must not forget the primary, if not sole, purpose — to deliver products and services that meet customers’ needs.■ Sue Harrison will present customer research. By listening to the public and giving them what they want, there are many opportunities. But how often does the industry ask: What do the public think of us? What do they value? What are they prepared to pay for? ■ Simon Clayden, AXA Insurance, will share his experience from general insurance, building and delivering iPhone apps to speed up the application process, improve application and claim services, manage operational risk and reduce costs.

WorkshopsAs well as these plenary sessions, there will be over 80 workshops sessions, including a number of ‘hot topics’, many with an international flavour. Mr Hurley believes that much can be learnt from abroad, provided solutions are tailored to the local market. In this respect he is very pleased to welcome the involvement of the International Actuarial Association at this year’s conference.

Keynote speakerSo that gives us a lot of background information, the environmental challenges and where the industry is aiming for. So how does that come together as a plan? In that respect, the keynote speaker on Sunday night will give personal valuable insight.

Among many things, Rt Hon Sir Richard Needham is a non-executive director of Dyson, and a former Trade and Northern Ireland minister. Drawing upon his experience in both Government and the Commerce, he will share his views under the banner of ‘Winning Through’. Sir Richard will deliver a number of clear messages, including innovation, dealing with suppliers, managing your margin, managing people, testing your strategy and working out what customers actually want. An entertaining and thought-provoking speaker, he has plenty of messages that we can all learn from.

Mr Hurley’s final request is for actuaries to make the trip to Liverpool, to make your contribution to helping the profession but, more importantly, to helping your customers.

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Technology

Anthony Dhanendran is the reviews editorof Computeractive

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Sponsored byBusiness phones

Anthony Dhanendran compares the latest developments within the business phone market and asks which one is best for you?

BlackBerry crumble?

The BlackBerry is a remarkable line of products. Its maker RIM managed to completely corner the market in business phones, but now

it faces a huge challenge from other, smarter smartphones.

Before the days of the iPhone and Android, the reason why people bought BlackBerries was that they worked with corporate emails and did it seamlessly. Before that, connecting your users’ phones to the corporate network was a nightmare, but RIM made it easy. As with most cases of market dominance, though, it led to complacency and an unwillingness to innovate.

When the iPhone came out in 2007 it wasn’t a business phone. It looked great, and was even easier to use than BlackBerries, but didn’t have the chops to be used seriously for work. Apple steadily worked to make it better, and now the iPhone makes real sense as a business handset.

The impressive and still improving iOS operating system is much easier to use than that on recent BlackBerry models. Email support on iOS is much better, there’s support for networked printers and the growing number of business-friendly, useful apps is a marker of how seriously the phone is being taken.

BlackBerry, on the other hand, is lagging behind. Making apps for the BlackBerry is a

ReMetrica for Swww.aonbenfield.com/rem

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real hassle compared to the iPhone, and the interface is starting to look dated.

There are still a couple of things that the BlackBerry does better: for one, BlackBerry Messenger — BBM — provides a truly secure instant messaging service between employees, something no other phone system does. Apple is nipping at RIM’s heels here too, though: the next version of the iPhone, due in September 2011, is expected to include just this feature.

The iPhone does very well when it comes to integrating with Microsoft’s Exchange, the email server used by most companies. But if your firm is already set up to use BlackBerry Push email, moving to using Exchange on its own will be quite a change.

More and more companies are allowing employees to connect their own devices to corporate networks, and the iPhone can easily be networked up to your firm’s Exchange server. Its email support is pretty good these days, although there is one thing to bear in mind: connecting a personal iPhone to the corporate network will usually give your company’s IT department a degree of control over your phone.

That includes the ability to remotely

» Android dearen’t securealthough secuof BlackBerrythe iPhone hait up in that a

olvency IIetrica_demo

■

wipe the handset of absolutely everything. It makes sense — if your phone is lost or stolen it’s important for the company to safeguard its data — but be aware of that before you connect.

Android handsets are good for business users, though their Exchange support is much more limited than Apple’s. Also, Apple does considerably more vetting on iPhone

apps than Google does on Android apps, so companies will be much more reticent about allowing them to connect to the network.

So what’s the best choice? Well, assuming you have a choice — assuming your company allows connection of your own device to the network — the iPhone has to be the leader at the moment.

Android devices just aren’t secure enough, and although security is one of BlackBerry’s strengths, the iPhone has caught up in that area. The addition of secure instant messaging later this year will remove the last real thing that BlackBerry does better.

Then it comes down to user experience— the iPhone wins hands-down. Unless you’re wedded to the look and feel of your BlackBerry, it might be time now to make the switch.

vices just enough, and rity is one

’s strengths, s caught rea «

August 2011 37

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Richard Elliott

Richard Elliott cuts through the hyperbole to find the best of this year’s Edinburgh Festival

Festival fever

Picking shows to see at the Edinburgh Festival can be a struggle. As if the unpredictable Scottish weather was not enough for visitors

to contend with, relentless hyperbole buffets them from every direction the moment they step off the bus. “A compelling comic monster!” “Perfectly mastered yet volcanic energy.” “Sickeningly accomplished.” A cursory look at the contents of this year’s programme and the multiple-ponied Stuart Baggs from The Apprentice suddenly appears a master of restraint. If even half the shows therein turn out to be the coruscating works of genius the performers so boldly proclaim, one might expect the unprecedented levels of foot-stomping laughter and riotous applause to cause Scotland’s capital to break off the coast and drift down the North Sea (thus rendering a long-concealed Glaswegian plot redundant).

Of course, the show selection task is usually further complicated by having to cater for tastes beyond your own. Anyone who has had the dubious honour of picking a show for a group of friends or — even worse — a group of work colleagues, soon makes the unhappy discovery that not everyone is fortunate enough to possess their own fine powers of discrimination. As the saying goes, one person’s idea of comedy is another person’s Russell Howard. Thus, it is with a degree of reticence that I offer the following recommendations.

TheatreIt’s difficult to ignore the big names this year: John Malkovich directing Julian Sands in A Celebration of Harold Pinter, and Steven Berkoff’s take on Sophocles’ Oedipus. There is also, however, emerging young talent on offer. The Analogue theatre company — a Fringe First Winner in 2007 with Mile End — returns with its latest play 2401 Objects, inspired by an important neuroscientific case study, and promising to tell a ‘remarkable story of a man who could no longer remember, but who has proven impossible to forget’.

The Edinburgh International Festival also celebrates Asian cultures this year, with the line-up including One Thousand and One Nights, The Wind-Up Bird Chronicle (based on Haruki Murakami’s novel),

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and Shakespeare’s The Tempest transplanted to fifth century Korea.

ComedyOver the past six festivals, two comedians have enticed more laughs from me than the rest combined. One of them is Daniel Kitson, conspicuously absent from this year’s line-up. The other is Stewart Lee. The second series of Stewart Lee’s Comedy Vehicle drew heavily fromhis 2010 Edinburgh show, and this year’s show is likely to preview material for the thirdseries. Lee’s shows normally sell out fast, so book early.

Fans of Peep Show and Flight of the Conchordsmay wish to check out Isy Suttie (Dobby) and Kristen Schall (Mel), while admirers of Andy Kaufman’s brand of ‘anti-humour’ should lookup Neil Hamburger and Edward Aczel.

MusicWhile the International Festival covers the classical side of things, The National (23 August) are the clear standout from what looks like a rather insipid rock line-up (unless you happen to take a keen interest in the trajectory of Charlie Simpson’s post-Busted career…).

If melodic punk cabaret is high on your list of favourite musical genres, then Amanda Palmer (25 August) returns after popular shows at previous festivals. If you would prefer to wallow in mid-90s Britpop nostalgia, then Cast will be rolling back the years on 26 August.

BooksUnlike most of the other August festivals in Edinburgh, the Book Festival enjoys a single location — the attractive and intimate setting of Charlotte Square Gardens — thus avoiding a mad taxi dash across town between events. This year’s line-up features a parade of Booker winners, AS Byatt, Alan Hollinghurst, Ben Okri and Michael Ondaatje, along with an impressive array of non-fiction authors, including Niall Ferguson, Simon Blackburn and the ubiquitous AC Grayling.

I am particularly looking forward to hearing Will Self’s views on WG Sebald (28 August). This year marks the tenth anniversary of the death of the German writer whose melding of memoir and fiction continues to exert a powerful influence on many authors, including Self. Other talks to watch out for are those by Jennifer Egan (15 August), author of Pulitzer prize-winning novel A Visit from the Goon Squad, and poet Paul Muldoon (20 August), who last year proved an affable and engaging speaker.

Finally, if you would like to support a fellow actuary, then George Lewkowicz, a capital modelling contractor for Tea Fuelled Ltd, will be performing as Superbard, a storyteller from the future, mixing self-composed music and video projections to tell darkly comic, whimsical tales. George first appeared in The Actuary back in 2008 when he made his Edinburgh Festival debut, and we wish him well with this year’s show.www.edfringe.com

August 2011 39

Coffee breakPuzzles

40

Terms and conditionsThe prize will be awarded for the most complete entry received before the closing date. In the event of a tie, the tie-breaker question will apply. The winner’s name will be announced in the next edition. Please note that the puzzles editor’s decision is final and no correspondence will be entered into. We reserve the right to feature the winner’s name and a photo (if supplied) in The Actuary, and to use any tie-breaker entries in future puzzles. Your details will not be passed to any third party in connection with this draw.

August prize puzzle E pluribus unum For a chance to win a £50 Amazon voucher, please email your solutions to the fourth column clues topuzzles@the-actuary.org.uk by 14 August 2011.

There are four columns of clues (to a word) below. You will need to take a clue from each of the first three columns which, when combined, give the solution to one of the clues in the fourth column.

This can be repeated for each clue in the fourth column using each clue from the first three columns exactly once.

Note that the four columns are not necessarily in anyuseful order.

Example clue: [Turn in circular motions] [act dishonestly] [expression of hesitation] [a warm jacket]Answer: Wind/cheat/er.

A pet An item of clothing After deductions A beggar

A preposition Body part Building material A shape

Animal enclosure Charged particle Get up Arrange into classes

Chew vigorously Expected standard Hypocritical expressions Censure

Heal Graffiti signature In use Destroy enthusiasm

Human Grow old Large vessel Following childbirth

Mail Involutary spasm Metallic rock Legendary monster

Promotional material Part of the psyche Part of the psyche Promotion in rank

Shallow container Pronoun Stomach Royal house

Snooker shot Vehicle X Series of contests

To access the puzzles archive, visit www.TheActuary.com/puzzles. The puzzles editor is pleased to receive ideas fornew puzzles from readers at puzzles@the-actuary.org.uk

MORE PUZZLES ONLINE

The Caultaria Cryptographyand Actuarial Services Society (motto: ‘neverknowingly understood’) are off at their annual dinner. The following are listed on the dinner menu as accompaniments to the main course:

123345647274823347

What, in plain English, is on the menu?

Puzzle 479 Food for thought (reprise)

August 2011

Twenty four logicians are sat in a circle, twelve are wearing white hats and ten black hats (as they are wont to do). Looking down from above, that’s all you can see of them. Allowing for rotational symmetry, howmany such possible distinct arrangements are there? (For example, there is only one arrangement where all ten white hats are located in one block.)

Estimation is a vital actuarial skill. For each of the pairs given below, which is larger — or are they roughly the same?

1. Number of grains of rice in a 1 kilo bag vs Number of runners in the 2011 London Marathon?2. Number of words in the Bible vs Number of cars built in the UK in 2010?3. Diameter in inches of a golf hole vs Maximum breadth in inches of a cricket bat?4. Number of pints in an Olympic standard swimming pool vs Number of people in Tanzania?5. Number of hairs on the editor’s head vs Number of employees of the Indian state railway?

Puzzle 480 Hat trick

Puzzle 481 Guesstimation

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www

Bridge challenge 17 Cover story A useful beginners’ guide to playing bridge can be found at www.ebu.co.uk/education/learning/default.htm. Please send anycomments you have to Tom Bratcher at puzzles@the-actuary.org.uk

You are sitting East. South opens the bidding with 1NT(12-14 points) and North raises direct to 3NT. West leads ♠K

Declarer ducks the first spade and wins ♠A with the second. He ducks a heart to your ♥10. With no more spades, you switch to ♣J. Declarer wins with his ♣Q and plays two more hearts. You discard on the third round. He now leads ♦Q. Do you cover with your King? Why (or why not)?

♠864♥AK75♦QJ9♣A42

♠53♥103♦K543♣J10983

NW E

S

July prize puzzle The Oscars

Puzzle 477 solution Mental arithmetic

The ‘missing’ characters are shown in brackets.1. Se(7)en2. T(r)on3. The Sti(n)g4. Chariots of Fir(e)5. For Your (E)yes Only6. Scr(e)am7. Dumb and (D)umber8. A Clockwork Orang(e)9. Where Eagles (D)are10. The (O)men11. The (C)able Guy12. Brie(f) Encounter13. A Series of Unfortunate Even(t)s14. Talk to H(e)r15. Once Upon a Time in the We(s)t16. Toy (S)tory17. No Country for Old Me(n)18. Bor(n) on the Fourth of July19. Pu(l)p Fiction20. 2(8) Days Later

Credit was given for some alternative answers.

Removing three letters from Seventy, or two letters from Eleven, leaves Even!

Solutions for July 2011

July prize winnerCongratulations to July’s winner, Mike Hooton of Admin Re

.TheActuary.com

Puzzle 478 solution Board?

Puzzle 476 solution Strike a light!

You can place 32 Knights on a chessboard so that they do not attack one another (eg. one on each dark square).

You can place 14 Bishops on a chessboard so that they do not attack one another (eg. on the first through seventh ranks on opposite edges of the board).

The matches moved then form a three-dimensional pyramid with one of the remaining triangles as its base.

1. Move three matchsticks to leave six squares.

2. Move three matchsticks to leave six triangles.

August 2011 41

Student page Join The Actuary’s LinkedIn group

Follow @TheActuaryMag on TwitterLike The Actuary on Facebook

Matthew Welsh

Balancing aMatthew Welsh says it is time to optimise your high-quality free time

42

M ost people face choices that are either/or: eat in or out, to buy or not to buy, X Factor or Strictly Come Dancing, daddy or

chips? Of course, actuarial students — while they love their binary — prefer life to be a little more complicated. In the quest for a work-life balance they like to throw in a third, unspeakable variable.

We say that we suffer in the name of qualifying. Perhaps we do it because it offers us a supply of rants about how we never have time to enjoy ourselves — we are either working or studying. We follow the student ABC: Always Be Cramming.

But is it true? Are we selflessly missing out on our 20s and 30s in the pursuit of excellence or are we, in fact, just a bunch of moaners? I hate ambiguity so let’s find out. Compare two people: a student and a person with a job but no study.

The investigationAny actuary knows to state their key assumptions, so:n This takes place over six months — the time between actuarial examsn The student is studying for two CT exams with 14 study daysn Each exam takes 80 hours’ preparationn There are four types of day: work day,

August 2011

ctweekend, holiday and study day (exam days will be considered as work days)n Both take 14 days’ holiday/bank holidayn There are no external factors, like sick days.

So, over six months, what do our two subjects spend their time doing? The major difference is the presence of study days for the student — more on that later.

It is worth pausing to consider the nature of ‘free time’. Let’s say there are two kinds: Grade A free time comes when there is a substantial block in which to do a meaningful activity. Grade B free time occurs when the subject may be tired or have chores to do. It is clear grade A free time is more valuable than grade B.

Holidays, weekends and work days are broken up as shown in Table 1. Holidays and weekends will always have grade A free time and work days will have grade B.

Study daysWe can assume that study days offer 12 hours of free time similar to weekends.

The student can do one of a few things:n They can do a full day of study (about eight hours)n They can take the ‘day off’ (at their own peril)n They can do something in-between.

I will assume the student will study more

as the exams approach. Also, if they study a lot in a day then free time downgrades from grade A to grade B.

This means that the student might typically enjoy 31 hours of grade A free time and 44 days of grade B free time from study days. However, this assumption means they need to find another 67 hours of study time to prepare for the exam. This will come from weekends.

ResultsWhichever way you slice it, the student will end up with about 36 hours less free time than the worker. That’s the deal. Also, with no exam commitments, the worker can choose when to take holidays more freely. But the student can gain flexibility from study days. They can end up with more days with grade A free time than a worker. Some would argue that having more days of free time is better than having more free time condensed into fewer days.

Also, the overwhelming amount of free time that a student has is flexible. They can choose to have high- or low-quality time depending on how they approach studying — little and often or blitzed all at once. So, when you think about your work/life/study balance, consider the ways you can get the mix that is right for you. This could go a long way to making students feel more content in dealing with the perceived sacrifice of having to study.Matthew Welsh works as a GI reserving actuary for Zurich Financial Services

Student Worker Student Worker Student Worker Student Worker Student Worker Student Worker1 2 3 4 5 6

20

30

35

15

10

5

0

25

Sum

of d

ays

Month/Person

Type of dayWorkStudy

WeeHolid

Figure 1 — A time comparison between a student and a worker

Activity Hours Activity Hours

Sleep 8 Sleep 8

Commute 0 Commute 1.5

Eating 2 Eating 2

Work 0 Work 7

Wasted time 2 Wasted time 2

Grade A

free time

12 Grade B

free time

3.5

Table 1Holiday and weekends

(per day)Work day

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People/CommentAOTF/Book review

www

Book reviewPeter Tompkins gets to grips with The Case for Working with your Hands: or Why Office Work is Bad for Us and Fixing Things Feels Good by Matthew Crawford

Employer and

area of workAviva Ireland — GI Pricing.

How would your best friend describe you?That I have a good memory for pointless information.

What motivates you?I love working things out and solving problems.

What would be your personal motto?I quite like ‘ad astra’ (‘to the stars’). It was my university’s motto.

Who do you admire most and why?My father. He is a mathematician and the cleverest person I know.

What is your most ‘actuarial’ habit?Probably correcting people’s grammar and spelling.

How do you relax away from the office?I love travelling, especially to anywhere with ancient ruins.

Alternative career choice?Previously, I worked on Basel II and credit risk in banking, but if I had to pick something totally different it would be teaching.

Tell us something unusual about yourselfI studied Ancient Greek in school up to Leaving Cert (Irish version of A levels). I managed to win an international prize and got to meet the Greek president.

If you ruled the world, what would you change first? Outlaw anti-red-hair prejudice!

If you would like to nominate someone for Actuary of the Future, please email AOTF@the-actuary.org.uk

WHO WOULD YOU LIKE TOSEE FEATURED HERE?

Actuary of the futureRachel Gow

.TheActuary.com

The title of this book held out the promise of an interesting argument, which sadly was not fulfilled by its content. The author went to college with the usual expectation of being prepared for a life behind a desk, did a PhD and somewhat by accident found himself working for a ‘think tank’. But having grown up with a love of repairing motorbikes, he soon gave the office up and opted for a career in oily workshops.

Drawing heavily on his background as a philosopher and quoting Aristotle and Pirsig (Zen and the Art of Motorcycle Maintenance) among others he admires, Crawford’s best writing is his analysis of the demeaning nature of many office jobs. Glamorous-sounding careers often resolve into differentiated tasks, with anytask that can be clericalised reduced to just that. Crawford has a hostility to a world of rules and regulations that take the individuality out of the professional.

“White-collar professions… are subject to routinization and degradation,proceeding by the same logic that hit manual fabrication a hundred years ago: the cognitive elements… are appropriate from professionals, instantiated in a system or process, and then handed back to… clerks — who replace the professionals.”

On public policy, likewise: “Standardized tests remove a teacher’s discretion in the curriculum; strict sentencing guidelines prevent a judge from judging. Our liberal political instincts push us in this direction of centralizing authority; we distrust authority in the hands of individuals.”

Crawford lampoons the corporate focus on teamwork and the creation of corporate rather than individual culture. If anything, his view is that university education is designed not to develop specific skills but to mould the future players in these corporate teams.

Although he makes a convincing case for where office work is bad, he is less good in making the case for working with your hands. He describes the Herculean efforts he makes in order

to get a motorbike working again and the ensuing pleasure this gave him. But there is little assessment of the intrinsic satisfaction of a manual job well scoped and delivered with the sense of completion this brings.

If there is one area for future focus or development, he could address the challenge of choosing a manually skilled vocation. College probably provides a few years’ interlude when young people can develop their maturity and drift towards an office job. The school-leaver choosing a manual career by contrast needs to make an earlier decision and choice on how to develop their skill. The world, after all, does not solely consist of pen-pushers and repairmen. Crawford needs to pay more attention to the people whose hands actually make things in the first place.

We welcome readers’ suggestions of relevant books for our contributors to review or if you would like to submit your own reviews, please email sharon.maguire@incisivemedia.com

CRITICALLY CHALLENGED

The Case for Working with your Hands or Why Office Work is Bad for Us and Fixing Things Feels Good is published by Viking. RRP £16.99

August 2011 43

44

People movesAppointmentsSponsored by

KPMG in the UK has appointed David O’Hara as a principal investment consultant to lead its newly established Scottish Investment Advisory team. He will be based in Glasgow and will report to Patrick McCoy, head of investment advisory for KPMG in the UK. The team will advise clients on their investment arrangements and will work alongside the Scottish Pensions team led by KPMG partner, Donald Fleming.

Mr O’Hara joins KPMG from Hymans Robertson where he provided investment advice to a range of major private and public UK pension schemes.

KPMG has also welcomed Gary Martin as a principal advisor in its Manchester Life insurance actuarial team. Mr Martin joinsthe team from Co-operative Insurance, where his focus was on product and business development. He qualified in 2002 and has 15 years’ experience in the life industry.

August 2011

For more people mowww.TheActuary.co

MORE MOVES

Kendra Felisky has been appointed by Travelers to the newly created position of chief risk officer for Europe. Ms Felisky will be responsible for the development, implementation and monitoring of risk management strategies and policies for the European operations. Additionally, she will assume the reporting line of the risk function and the capital modelling group, and will play a role in the organisation’s Solvency II efforts.

Ms Felisky joins from Deloitte where she was a director in the Actuarial and Insurance Solutions consulting practice. Prior to Deloitte, Ms Felisky held leadership roles at CNA Re and CX Re and was previously a consultant in the UK and the US.

David O’Hara

ves, please visit m

ONLINE

Barnett Waddinghamhas promoted seven of its senior client advisers to the position of partner and added 14 associates. The promotions take the total number of partners across its seven UK practices to 50, the firm said.

The seven new partners are actuaries Paul Hubbold, Ben Pullen, Ben Roach, Vanessa Smart and Ruth Thomas, who are joined by Mark Futcher and Julian Mainwood.

Angela Gay FIA joins the firm’s Bromsgrove office as an associate with the other 13 new associates coming from within the firm. They are actuaries Jon Daykin, Martin Hooper, Oli McCulloch, Tracey McManus, Dan Robinson and Sam Underhill.

Aon Hewitt has announced that Peter Redhead has joined the company

Peter Redhead

as business leader for the North West, based in the Manchester office. Mr Redhead joins the company after spending 16 years with Jardine Lloyd Thompson where latterly he was deputy chairman of its employee benefits division.

Munich Re has announced that Andrew Buchananwill join the firm as chief risk officer for the UK, Australian and South African Life markets. He will start the role from the beginning of September. Mr Buchanan joins from Prudential plc where he is the headof risk oversight. Prior to Prudential, he spent seven years at Oliver Wyman Financial Services.

Andy Batley has also recently started at Munich Re as commercial director for the life business in the UK & Ireland. He was previously at XL Re for eight years as global head of business development where he was responsible for a team based in the UK, US and Continental Europe covering protection and longevity business.

Peter Latimer has joined Chesnara plcas the corporate

actuary responsible for financial reporting. Mr Latimer joins the Presto-based listed life insurer after 15 years working for AEGON in Lytham St Annes, primarily involved in financial reporting but latterly assisting with the group’s Solvency II programme.

Hannover Life Re (UK) has recently announced the appointment of Peter Turvey as an independent non-executive director. Mr Turvey has worked for Swiss Re in the UK and held positions within a range of actuarial professional bodies.

Chris Lewis joins Milliman as a senior consultant in the London life practice. He joins from Aviva where he was most recently general manager of Aviva Re Europe in Dublin. Mr Lewis will initially focus on

capital management and the provision of solutions for reinsurers.

Towers Watsonhas appointed Paul Morris as regional leader for Europe, Middle East and Africa. Mr Morris joined the company in 1988 as an international consultant in the New York office before relocating to London soon afterwards. Since then he has been an account director and consulted with a number of Towers Watson’s largest multinational clients, both in Europe and the US, advising them on a range of international benefits and reward issues. In addition, for the past six years Mr Morris has been the office leader for the Reigate office, one of Towers Watson’s largest offices globally.

Please send news of moves, promotions, retirements and appointments to peoplemoves@the-actuary.org.uk

Change of addressPlease remember to update yourdetails on the Profession’s website at www.actuaries.org.uk/members/transactions

Have you moved?

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Appointmentswww.theactuaryjobs.com

To advertise your vacancies in the magazine and online please contact: Melanie Jacob, Tel: +44 (0)20 7316 9618, E-mail: melanie.jacob@incisivemedia.com

August 2011 45www.jobs.the-actuary.org.uk

High Finance GroupSpecialist Recruiters

Life

020 7337 8800 actuarial@highfinancegroup.co.uk www.highfinancegroup.co.uk

Management Consultancy - Student

£55k - £65k + Benefits + BonusSurrey

Leading global management consultancy is seeking a nearly qualified

student to join their specialist Actuarial consulting division. Offering

actuarial solutions across the life industry, this team cover M&A,

product pricing, S2 support, AFH work and property securitisation as

part of their practice. Training is supported by strategic, commercial

projects. Consulting or reinsurance experience is preferred. JE8768

www.highfinancegroup.co.uk

Investment Bank - ALM

Up to £130k + Bonus + BenefitsLondon

1st class opportunity to transition into the Insurance Solutions team of

this European Investment Bank. As one of only 2 Actuaries you will be

delivering ALM solutions to your UK & European client base. This role

requires a dynamic, intelligent Commercial Actuary with strong Life

insurance knowledge and an excellent grasp of the industry. Client

consulting experience and an understanding of Fixed Income and

Equity Derivatives would be highly advantageous. CB8521

Economic Capital – New Team

Up to £95k + Bonus + BenefitsLondon

You will be integral to developing the Economic Capital expertise at

this well known insurer as they embed S2 into the business. The role is

geared to a dynamic, progressive Actuary, looking for global exposure

in a technically challenging role delivering new economic capital

initiatives. You will have relevant experience, strong communication

skills and a desire to be ahead of the game with S2. CB1565

Life

Life

Commercial Reporting Analyst

£30k – £55k + Bonus + Benefits UK WideMarket leading Life Insurance firm is seeking a part qualified

student to join their financial reporting team. Working as part of the

wider Actuarial support, you will be responsible for S2

implementation, MCEV work, Actuarial modelling, ad hoc projects,

and liaising with other teams within the Group. The role is

complimented by 1st class training. JE2287

Move in to Life Insurance

£3ok - £60k + Bonus + BenefitsUK Wide

Fantastic opportunities exist for student and qualified Pensions

Actuaries to move in to a variety of opportunities across the life

insurance market. Currently working with smaller niche firms,

international insurers and well-known consultancies, there are a

variety of opportunties across the sector from financial reporting to

ALM. MW8208

LifeLife

Actuarial | Finance | Governance | IT | Insurance | Solvency II

LifeClare Bethell: 020 7337 8829 clare@highfinancegroup.co.ukGraeme Braidwood: 020 7337 8820 graeme@highfinancegroup.co.ukJack Eccles: 020 7337 1208 jack@highfinancegroup.co.uk

Executive SearchMark Dainty: 020 7337 8816mark@highfinancegroup.co.uk

EuropeDamien Bernard: 020 7337 1206damien@highfinancegroup.co.uk

Life Risk Analysis Actuary (part-qualified)

Starting at £50k + Bonus + Benefits Zurich

Our client offers unique opportunities for PQ actuaries to join their

international team in Zurich. You will be expected to assist the S2

and Swiss Solvency Test project, supporting the enhancement and

review of Life liability and Risk Based Capital Calculations. You

should be open minded, dynamic, and ambitious, with the capacity

to integrate youself within a multinational team. DB9772

Solvency 2 Life Actuary

Around €85K + Bonus + BenefitsMadrid, Spain

We are looking for a senior English speaking S2 Actuary to join an

international team. Following CEIOPS and Group guidelines, you will

lead the QIS process going forward involving key stakeholders (local

CFO’s, senior management) reporting directly to Group Risk

Management and supporting local entities. A unique opportunity to

join a major insurer in Europe. DB1213

LifeLife

Head of Product – Risk Systems Life

Up to £130k + Bonus + BenefitsLondon

Unique opportunity to lead the Product Development of a new Risk

based software designed for the UK Life Insurance market. This niche

firm has an excellent reputation and they are looking for a Life Actuary

to lead product development as they enter the Life Insurance market.

This is geared to an entrepreneurial, commercially minded Actuary

with excellent product knowledge and good comprehension of Risk

and IT. Considered on Contract & Permanent basis. CB6781

Darwin Rhodes’ wellestablished UK Actuarialrecruitment team is basedin the heart of the City onCornhill, and has beenhelping actuaries find newroles throughout the UK andEurope since 1996. We workacross Non-life, Life, Pensionsand Investments at all levelsfrom student actuaries toPartner and Chief Actuary.

We offer our clients a rangeof services including retainedsearch, advertised searchand selection, and contingentsolutions - on a permanentand contract basis.

Our candidates benefitfrom our experienced andlong serving consultantswho offer a consultative,discreet, and 100%transparent service.

Formore information regardingcontract or permanentrecruitment in the UK andEurope please contact;

General enquiriesactuarial@darwinrhodes.com

UKBen Whalley:b.whalley@darwinrhodes.com

EuropeMichael Lixenberg:m.lixenberg@darwinrhodes.com

Life UKc.chowne@darwinrhodes.comj.walker@darwinrhodes.coma.byrnes@darwinrhodes.com

Non Life UKa.hill@darwinrhodes.comp.wernham@darwinrhodes.comc.carroll@darwinrhodes.com

Pensions & Investments UKb.whalley@darwinrhodes.comd.symonds@darwinrhodes.com

Germanyz.ali@darwinrhodes.com

France & Spainm.vinard@darwinrhodes.com

Switzerlandm.lixenberg@darwinrhodes.com

LifePricingActuaryVacancies -English speakingZurichCHF very competitive salary + bonus +comprehensive benefits packageOur client is a leading, global reinsurer. They aregrowing their Pricing team and, as such, are lookingfor English-speaking pricing actuaries, from 2-3years’ experience up to Team Leader level. These aregenuinely excellent opportunities, with full relocationassistance, and a great benefits package includinggym, subsidised restaurant, and share purchase plan.

Ref: EML15079

Qualified Non-Life ActuaryLondonCirca six figuresA specialist in the management of mutual, captiveand other specialist insurance companies is seekinga qualified actuary to act as number two within theactuarial team.Therolewill includereserving,businessplanning, SII, capital and pricing as well as the day today management of part qualified actuaries. You willhave strong presentation skills and will be expectedto present to the board. The opportunity to play a keystrategic rolewithin thebusiness truly exists. Excellentcommunication skills are essential. Ref: ACS1146

Nearly/Newly Qualified (non-life)CityUp to £100k plus bonus & bensNearly/Newly qualified actuary sought for a small, butdynamic,Actuarial team.This syndicatewrite a varietyof business both direct and RI, and have ambitiousplans todoublestampcapacityanddiversifybusinesslines. Reporting into the Global Chief Actuary, thesuccessful candidate will be involved in pricing, dataanalysis, model design and parameterisation as wellas reserving and will work closely with overseasactuarial teams,underwritersandclaims.Outstandingcommunication skills and strong technical ability arecrucial. An excellent opportunity to assist in shapingthe future of a growing syndicate. Ref: APW 5353

Risk Software ActuaryLondon£ExcellentAglobalproviderof actuarial services to the insurancemarket is seeking a Nearly/Newly Qualified Actuaryupwards to join their Risk Software Team. The rolewillinvolvemanagingclient relationshipsaswellasputtingforward viable risk software solutions whilst workingclosely with software programmers and actuarialconsultants. There will be some programminginvolved in the position as well as developing modelsfor an array of clients. Candidates should have aninterest in software and ideally have worked with DFApackages in the past. This is an opportunity to workin a multi-faceted role for one of the market leaders.

Ref: AAH4964

Longevity ActuaryUK£competitive + benefitsInquisitive and innovative individual needed to leadthe development and refinement of pricing factorsand assumptions for pricing longevity at leadingBPA and DB de-risking solutions provider. You willbe tasked with analysing the drivers of annuitantmortality experience, building models and identifyingfactors which can be used in pricing to differentiatethe client from their competitors, and exacting soundpricing practices. You will identify niche profitableopportunitiesfor theclient,andbecommerciallyawareof research, longevity model development, medicaladvances and lifestyle research affecting longevity, toguarantee the highest level of expertise for the clientin the longevity market place. Competitive salary andbenefits package on offer. Ref: ACC5460

Daily Rate ContractorsUKLife & Non Life, £600 - £1500 per dayWe have a number of contracting opportunitiesthroughout the UK, both in the Life and Non lifesectors. Experience required includes:• SII• Internal Model• Capital Modelling• Reserving• Reporting• Prophet/MoSes•Igloo/ReMetrica

Ref: ABW1975

Interesting Career Move for PQ Pensions/Investments ActuaryLondonPensions, £CompetitiveThis new role sits within the Solutions team of thismajor insurance company, specialising in the largeend of the pensions de-risking transaction market.The team has had significant success in recentyears, and is growing further. A variety of dutieswill be on offer covering a range of solutions frombuy-outs to buy-ins and investment advice. The jobis suitable for a part qualified actuary with pensionsor investment experience and making good progresswith the exams, wanting to gain wider experience inan exciting area. Ref: ABW5444

www.ipsgroup.co.uk/actuarialA C T U A R I A L

London Office: IPS Group, Lloyd’s Avenue House, 6 Lloyd’s Avenue, London, EC3N 3ESTel: 020 7481 8686 Fax: 020 7481 8660 Email: actuarial@ipsgroup.co.uk

Leeds Office: IPS Group, 8 St Paul’s Street, Leeds, LS1 2LETel: 0113 202 1577 Fax: 0113 202 1598 Email: actuarial@ipsgroup.co.uk

Life Reporting Actuary£100,000 + Bonus & Benefits – Munich

This leading global life insurer currently requires an experienced, qualifiedactuary to join the life actuarial team based in Munich. With responsibilityfor group level financial reporting from the business units across the globe,the successful candidate will have substantial knowledge of IFRS/USGAAP,good communication, personal planning and organisation skills and beable to show initiative in applying good problem solving and analyticalskills. Overall the successful candidate will be enthusiastic, inquisitive andadaptable with between four and eight years’ experience.Contact: Ivan.Clarke@ipsgroup.co.uk – London Office Ref:IJC473553

Solvency II – ContractTo £1000 per day – London

Six month contract for a leading London based insurance provider; supporting thecurrent actuarial team and the Group Actuary on key deliverables for theSolvency II project. This will include; technical provisioning, documentation andsensitivity testing of the internal models.You will be required to engage with othermembers of the Solvency II Policy & Methodology team (including consultants orcontractors) to refine areas of each other’s designs, to improve the overall qualityof the design and documentation of the Solvency II solution and to agreeimplementation plans.Contact: Ivan.Clarke@ipsgroup.co.uk – London Office Ref: IJC473577

Global Specialty£90,000 + Benefits – London

Global Specialty strategic business unit of this leading global Insurer.Support underwriters and financial controllers maintaining strongrelationships with claims, reinsurance and IT departments. Lines of businessinclude large specialty accounts. The candidate will build actuarialvaluations, support the budget process and assist in global insuranceprojects. You will deal with US GAAP, SEC financial requirements, UKGAAP regulatory framework and the Lloyd’s platform. The candidate will beresponsible for Solvency II technical provisions.Contact: Ivan.Clarke@ipsgroup.co.uk – London Office Ref: IJC474186

Part Qualified Pensions Student£ Competitive Salary – North of London

I'm now recruiting for an employee benefit consultancy that has anexcellent reputation in the market. This role will be based withincommutable distance from London, and represents a wise career movefrom a career development perspective as the training is second to none.You will work on a range of trustee and corporate clients and will bechecking the work of more junior colleagues. Given the location this is atempting move to make if you are looking for more of a work/life balance.Contact: Simon.Arthur@ipsgroup.co.uk – London Office Ref: SA472744

Chief Actuary – Middle East & Africa£130,000 + Bonus & Benefits – South Africa

Leading general insurer currently seeks a Chief Actuary with responsibilityfor the MEA region. Reporting to the CFO, the Chief Actuary will beresponsible for the management and development of the actuarial team andprovide expert actuarial insight and advice to both local and regionalmanagement. The successful candidate will be a fully qualified actuary withat least eight years’ experience in a non-life actuarial environment. You willhave experience of working as part of a global network and be comfortableworking in a multi-cultural environment.Contact: Ivan.Clarke@ipsgroup.co.uk – London Office Ref: IJC473760

FTSE 250 Corporate Advisory Leader - PensionsTop quartile Salary + Bonus & Benefits Package – London

Outstanding opportunity for an ambitious individual who will currently beadvising the senior management of firms in the FTSE 250/350 on corporatepensions strategy and the options open to deal with defined benefit legacy issuesand alternative retirement solutions. Candidates will be qualified pensionsactuaries from a corporate consulting advisory firm and will have led anddeveloped client relationships of both listed and unlisted firms for at least 5years. Strong professional consulting skills and an enlightened commercialapproach are both essential for this role.Contact: Anthony.Chitnis@ipsgroup.co.uk – London Office Ref: Z473465

PensionsActuary (Ideally Three to FiveYearsPQE)Top Quartile – Leeds or Manchester

A new opportunity in the Northern market for an Actuary to join thisestablished and growing team. An existing corporate and trustee clientportfolio is in place, however any new business experience will bewelcome. A Scheme Actuary certificate would be desirable but by no meansessential. This would suit someone working in a large team who is perhapsslightly frustrated at a lack of visible career path. This Practice is performingextremely well at present, hence the need to expand.Contact: Simon.Arthur@ipsgroup.co.uk – London Office Ref: SA474600

Nearly/Newly Qualified Actuary£45,000 - £65,000 + Benefits – London

If you are approaching qualification or have already completed yourstudies, this opportunity could provide you with fresh impetus. The work willinvolve providing advice to trustee and corporate clients covering a widerange of projects within a commercial and dynamic environment. If you arecurrently working for a UK pensions consultancy or within a big fourcorporate pensions team but feel your opportunities for career progressionare limited, then please call me to discuss this role.Contact: Simon.Arthur@ipsgroup.co.uk – London Office Ref: SA474173

48 August 2011 www.jobs.the-actuary.org.uk

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Hymans Robertson LLP is one of the leading independent providers of actuarial and consultancy services to the occupational pensions market, across both the private and public sectors.

People lie at the heart of our business; our unique culture has helped us create a pool of highly talented, experienced and enthusiastic individuals.

The result has been strong continued growth with significant investment in both people and technology. As a result, exciting opportunities are available for talented individuals to join our Actuarial Systems team.

Actuarial Modeller – Glasgow or LondonWith responsibility for the development of pension liability models and the integration of these with our risk models, the successful candidate will focus on analysis, design and programming models in collaboration with key stakeholders. Previous actuarial modelling experience required.

If you would like to find out more please go to www.hymans.co.uk/careers

Ronnie BowieSenior Partner

Welcome aboard the Spirit of IndependenceActuarial Systems – model development opportunity £Highly Competitive

Contact Parvinder Matharu

Newton Recruitment

t +44(0)1689 862937e parvinder@newtonrecruitment.com

w www.newtonrecruitment.com

LDI Solutions SpecialistAsset Management Company, London

circa £55k + bonus + benefitsThis is a truly unique opportunity for a candidate with someinvestment consultancy experience to move into a structuredsolutions role within a leading asset management company.This role is 50% client facing and 50% technically focused,and you will be:• Providing support for senior solutions specialists/advisers

offering risk management solutions to DB pension schemes.• Liaising internally with various specialist teams to provide high

quality investment solutions services: ie with client directors,service associates, fund managers, quant analysts and dealers.

• Communicating directly with clients and their advisers,primarily their investment consultants; communicating oftenfairly technical and sophisticated solutions and techniquesinto plain English.

• Focusing on management of liability interest rate and inflationrisks within the LDI framework for more effective funding.Solutions regularly also extend to managing equity, credit,currency, longevity and other risks, typically implementedusing a combination of physical and synthetic instruments.

• Initially tasks are likely to include drafting strategyproposals, providing ad-hoc and regular tailored reporting,assisting in new business pitch preparation.

Actuarial Contract - Life Insurance

Actuarial Contract - General Insurance

London - 6 Months £900/day

Gary RushtonMoses Development

Experienced Moses modeller required to develop the existing model across a number of high profile projects.

Midlands - 6 Months £1300/day

Rob BenthamSolvency II Actuary

Actuary required to lead the Solvency II Programme from a technical regula-tory perspective and act as in-house expert on emerging SII regulation.

Midlands - 6 Months £900/day

Ik OnyiahInterim Actuary

Our client has just been accepted into the IMAP pre-application process. You will ensure satisfaction of the criteria for Internal Model approval.

London - 12 Months £1200/day

Gary RushtonCapital Actuary

Part/fully qualified actuaries required to focus on project work to optimise the group’s capital efficiency. Will have exposure to various business areas.

London - 6 Months £1000/day

Ik OnyiahCapital Actuary

You will support the Chief Actuary in developing and managing actuarial aspects of the risk reporting framework & ongoing SII system developments.

South West - 6 Months £800/day

Ik OnyiahActuarial Contractor (ALS)

The main purpose of the role is to support the work of the methodology workstream of the Solvency II project within the Life & Pensions business.

South East - 6 Months £1000/day

Rob BenthamReporting Actuary

To assist in the delivery of a financial reporting process for the Solvency II programme of this market leading client.

South West - 6 Months £1100/day

Ik OnyiahActuarial (ICA) Contractor

Our client, a leading insurance provider, is seeking an actuarial generalist to provide wider Solvency II support and backfill BAU support.

South East - 6 Months £800/day

Gary RushtonProphet Developers

My client is currently looking for a number of experienced Prophet develop-ers with either stochastic or deterministic modelling experience.

South East - 6 Months £1100/day

Rob BenthamPeak 2 Actuary

You will help to design, develop and document the actuarial valuation process for life business executed by the group.

Midlands - 6 Months £800/day

Rob BenthamActuarial Modeller

To provide market leading modelling expertise with a strong stakeholder focus to the design and implementation of the new actuarial systems.

London - 12 Months £650/day

Gary RushtonSenior Student Reporting Actuary

Outstanding contract opportunity for a student with good exam progres-sion. Must have a can-do attitude & previous financial reporting experience.

London - 9 Months £800/day

Stewart CherryRemetrica Actuary

Experienced Remetrica capital modelling actuary required for a 9 month contract focusing on the internal model development for SII.

London - 9 Months £1000/day

Stewart CherryCapital Modeling Actuary

A Lloyd’s syndicate is looking for a Capital Modeling Actuary, ideally with Igloo, to undertake a 9 month contract.

London - 6 Months £900/day

Stewart CherryCatastrophe Risk Actuary

A Lloyd’s syndicate insurer is currently looking for an experienced qualified Catastrophe Risk Actuary for a 6 month contract.

London - 6 Months £750/day

Stewart CherryReserving Actuary

My client, a leading London Market insurer, is currently looking for an experi-enced reserving actuary (part or fully qualified) for a 6 month contract.

London - 6 - 12 Months £800/day

Stewart CherrySenior Pricing Actuary

A senior pricing actuary with Personal & Commercial lines experience is required for a 6-12 month contract working within the London Market.

London - 9 Months £900/day

Stewart CherrySolvency II Actuary

A global London Market insurer seeks a Solvency II actuary (nearly or recently qualified). The candidate must have up to date SII experience.

Ik Onyiahik.onyiah@ojassociates.com

0207 310 8785

Gary Rushtongary.rushton@ojassociates.com

0207 310 8793Contact

Stewart Cherrystewart.cherry@ojassociates.comRob Bentham 0207 649 9351rob.bentham@ojassociates.com

0207 310 8651Contact

www.ojassociates.com

50 August 2011 www.jobs.the-actuary.org.uk

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Pensions ConsultingSenior Actuarial ConsultantLondon/Leeds, £NegotiableRef: 4709373

A leading global consultancy is looking to expand its pensions practices in London and Leeds. The practice is three years old and specialises in corporate-based work. The company’s strategy will see the right people move into international and investment work.Over the next few years this opportunity will facilitate professional growth in an environment where actuaries are recognised for their successes.

020 7220 4774mark.keizner@reedglobal.com

Life CompanyPension to Life SwitchersBristol, to £70,000Ref: 4682505

Are you a part/nearly/qualified Pensions Actuary seeking a move into Life? If you are progressing well with the exams and have experience of consultancy, we have the perfect opportunity for you within a major UK Life company. Roles are available in reporting and capital management.

020 7220 4774clare.roberts@reedglobal.com

FSA Relationship BuilderQualified Life or GI ActuaryLondon, to £110,000+ benefitsRef: 4122248

Our client needs a strong communicator to manage its relationship with the FSA. This is a senior appointment and comes with a six-figure package. You’ll work alongside the Solvency II Actuary and wider financial reporting team to manage the run up to Solvency II and beyond.

020 7220 4774mark.keizner@reedglobal.com

Life ProviderActuarial ConsultantSurrey, £NegotiableRef: 4772671

Are you a nearly or fully qualified Actuary or exam stopper with some Prophet experience? Our client will consider actuarial professionals from a variety of backgrounds and levels if they have a passion for systems and some Prophet experience. You must be willing to become a Prophet coding expert.

020 7220 4774nichola.connal@reedglobal.com

Reed Specialist Recruitment Ltd is an employment agency and employment business.

A name youcan trust

10 years in actuarial recruitment. Offices in 13 countries.Over 300 actuarial jobs advertised. reed.co.uk/actuarial

Equity Analyst – Life Insurance, London £75,000 - £85,000 plus Benefits Ref: MJB48906A world renowned sell-side research firm is looking for an analyst to join its life insurance team. You will be involved in conducting in-depth analysis of the industry and publicly-traded companies in the sector, building and maintaining detailed financial models, drafting and writing research reports, helping formulate investment opinions and interacting with company management, sales and trading, and institutional clients. Ideal candidates will be newly / recently qualified life actuaries with broad commercial understanding. E: Matt.Bullock@goodmanmasson.com T: +44 (0)20 7324 0505

Strategy Risk Management Consultant, London£45,000 - £85,000 plus Benefits Ref: ME22317My client is looking to hire part and qualified actuaries into a specialist area of its growing London team, set up to act as a strategic overall risk management offering to its large clients. You will be involved in a wide variety of projects focused around ALM modelling, Liability-Driven Investment, Buy-in / Out, Enhanced Transfer Values and other investment strategy techniques. Ideal candidates will come from a pensions or investment background. E: Mark.Eadsforth@goodmanmasson.com T: +44 (0)20 7019 8828

Life Actuarial Opportunities, South West£40,000 - £80,000 plus Benefits Ref: MP12733As a result of recent expansion in the South-West market, I am currently resourcing for a variety of projects across a broad range of disciplines including Financial Reporting, Solvency II and Modelling. Opportunities exist for nearly / newly and qualified actuaries within each of these areas, whilst bespoke roles can also be tailored to suit the skill set of strong candidates with other specialisms. Ideal candidates will have a technical knowledge of life metrics, although applications will be considered from any background. E: Mike.Painter@goodmanmasson.com T: +44 (0)20 7019 8842

EEV Reporting Actuaries x2, Edinburgh£30,000 - £50,000 plus Benefits Ref: GMcG43957Do you want more responsibility and career growth but don’t know how to get it from your role? Join the growing EEV reporting team at one of the leading life insurers and contribute to the production of EEV and RBS results. You will gain an understanding of how EEV is used to manage a business and communicate results to other departments (pricing, valuation) and management. We are looking for one student and one qualified actuary. E: Georgie.McGuinness@goodmanmasson.com T: +44 (0)20 7019 8863

Please contact us on 020 7336 7711 or visit www.goodmanmasson.comGoodman Masson is an equal opportunities employer. Goodman Masson offers the services of an agency for permanent work and an employment business for temporary work.

www.jobs.the-actuary.org.uk

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August 2011 51

Chief ActuaryMSV Life plc is the leading provider of life insurance protection, long term savings, investments and retirement planning in Malta.

• Reporting to the CEO and the Board of Directors, you will set the Company’s actuarial policy and direction while also being an active participant in, and driver of, the organisation’s overall strategy.

• You will plan, organise, direct and control all operations of the Actuarial Unit and to assist the ChiefExecutive Officer to achieve the Company’s objectives efficiently.

• As a member of the senior leadership team of the Company, you will work closely with the CEO and the Board of Directors as well as with the relative governance committees of the board.

• You will oversee the Actuarial Unit to ensure proper maintenance of all systems and functions and supervise the staff in the Actuarial Unit.

Required: At least 5 years PQE FIA or equivalent

Salary €130,000 to €145,000 + competitive ex-pat package.

Contact Details: Zoe Campbell, Senior Consultant, Eames ConsultingT: +44 20 7902 3280 E: zoe.campbell@eamesconsulting.com

Kent School of Mathematics, Statistics and Actuarial Science (SMSAS)

the UK’s European University

Applications are invited for the position of Senior Lecturer in Actuarial Science. This post will be based at our Canterbury Campus on a full-time basis andis available from 1st December 2011 or as soon as possible thereafter.

The successful candidate will join the Centre for Actuarial Science, Risk and Investment (CASRI), which is part of the School of Mathematics, Statisticsand Actuarial Science (SMSAS). The Centre is well established and enjoys an excellent working relationship with the professional bodies. Currently,undergraduate and postgraduate programmes in Actuarial Science and Finance are offered by the Centre. All our Actuarial Science programmes areaccredited by the UK Actuarial Profession.

The person appointed will be expected to contribute to innovative research programmes in Actuarial Science & other related areas of finance andcontribute to the School’s teaching activities in Actuarial Science and Finance (particularly in the area of Risk Management). Applications from outstandingcandidates with different backgrounds will also be considered. There may be opportunities for some consultancy work. An excellent package includingrelocation costs is offered.

Informal enquiries may be made to Professor Malcolm Brown, Head of SMSAS, on + 44 (0)1227 823508 (direct line) or e-mail: M.S.Brown@kent.ac.uk

Informal visits to the School are welcomed.

Further information is available from our website http://www.kent.ac.uk/jobs. Minicom users please telephone 01227 824145.

Closing date for completed applications: 9th September 2011.

Interviews are expected to be held in October 2011.

For posts of this nature you will be required to fill in the main details section as well as upload your CV which should include a personal statement and any supporting documents.

Senior Lecturer in Actuarial Science Ref: STM0234

We actively promote equal opportunity in education and employment and welcome applicants from allsections of the community.

The University of Kent is one of the UK’s most dynamic universities with a strong European and international presence. Our excellent RAE results reflect ourworld-leading research and, while we are currently increasing our postgraduate activities, our undergraduates continue to rate us one of the topuniversities in the country according to the National Student Survey.

52 August 2011 www.jobs.the-actuary.org.uk

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Shape the futureHelp us grow our Actuarial team

Actuarial roles — Edinburgh and Dublin

We’re growing our team — and we want you to be a part of it.

This is an outstanding opportunity for you to join a leading-edge team. Here at AEGON, we offer something unique: we’re a global, people-focused organisation that values your work-life balance.

We’re interested in speaking with candidates who have drive and ambition at all levels: part-qualified, nearly/newly qualified and experienced actuaries that have a background in life insurance.

In return, we’re offering the chance to develop your career and reach your potential with us, working in one of our teams which cover:

n Modelling

n Pricing

n Capital Management

n Financial Reporting

To apply now or to find out more about our company and our future strategy, go to aegon.co.uk/careers

AEGON UK plc, registered office: 6 Devonshire Square, London EC2M 4YE. Registered in England (No. 3679296). An AEGON company. www.aegon.co.uk June 2011

“I'm personally very

grateful for your efforts

and even more grateful

for your success in

bringing to us such

a talented group

of people.” Prudential has over seven million customers and a leadingrange of products and services.

With over 160 years experience, it’s our people that ensurewe continue to perform. That’s why we’ve put in place apeople development programme designed to reward highperformance and why we constantly seek out new andexciting talent.

We are currently recruiting the following vacancies;

More than 160 years experience.More than 7m UK customers.More than just a career.Join usA career at Prudential means you will be workingat the forefront of one of the UK’s leading life &pensions companies.

> Senior Actuarial Trainees

> Senior Qualified Actuary(Retirement Income)

> Nearly Qualified/QualifiedActuary (Pricing)

> Business DevelopmentAnalyst

To find out more about the roles above and a career withPrudential visit www.pru.co.uk/careers and add yourname to our growing list of achievers.

High Finance Group Specialist Recruiters

Chief Actuary

£130k - £170k + Bonus + BenefitsLondon

This rapidly expanding Lloyd’s syndicate is looking to secure aqualified Actuary to lead their Actuarial function. The role will have oversight across capital, reserving and pricing whilst managing a medium sized team. The successful candidate should have a strong man management background and relish a challenge. WG9578

High Finance Group is a specialist consultancy, providing Finance, Actuarial, Audit, Risk Management, Compliance and IT Recruitment solutions to major Insurers and Asset Managers, professional services firms and SMEs. We aim to provide a market leading recruitment service, bridging the gap between large agencies and executive search.

(Re)Insurance Reserving Analyst

Up to £55k Basic + Bonus + BenefitsLondon

This established reinsurer is looking to grow their Reserving function with the appointment of an Actuarial student. The candidate will enjoy great development support and be given immediateresponsibility to take on integral aspects of the reserving process. JK8541

Contract Roles

£400 - £2,000 per dayUK Wide

In a rapidly changing market, our clients are looking for contractors with a strong Pricing or Capital Modelling background to assist with their Solvency 2 requirements. Modelling experience especially with Igloo or ReMetrica is in demand as well as commercial and/or personal lines experience. Opportunities for part qualified to qualified Actuaries are available. RP234

Casualty Pricing Analyst

Up to £55k Basic + Bonus + BenefitsLondon

This role requires a bright Actuarial student to take ownership of the pricing for the Casualty business of this highly regarded London market insurer. The ideal candidate will have previous pricing experience, be very articulate and conscientious. The role would suit a candidate looking to break in to the London market for the first time or someone looking to specialise their pricing experience. JK1946

Newly Qualified Actuary

£70k - £100k + Bonus + BenefitsLondon

This role is supporting the Deputy Chief Actuary and will suit someone who is newly qualified and looking for a step up in their career. The work will include capital modelling, pricing and reserving with significant exposure to the senior board. As this supports the Deputy Chief Actuary, there is the opportunity for managerial exposure too. WG6781

Consultancy up to Partnership

Over €150k + Bonus + BenefitsAll Europe

One of the most recognised and dynamic consultancies is looking toexpand strongly in European markets, specifically Switzerland, Germany, The Netherlands and Spain. We offer partnership opportunities for the right candidates, who are able to demonstrate a successful track record and strong local market knowledge. If you arelooking for a challenge and have strong technical and negotitaionskills, please contact our Europe desk. DB8546

Treaty Pricing Actuary

£80k - £110k + Bonus + BenefitsLondon

This specialist Lloyd’s insurer is looking for an experienced pricingActuary with a strong treaty background. The role will sit with the Underwriters and support them on a day to day basis. You will be confident and outgoing with the ability to liaise with senior stakeholders. WG8439

020 7337 8800 actuarial@highfinancegroup.co.uk www.highfinancegroup.co.uk

General General

General General

General

Actuarial | Finance | Governance | IT | Insurance | Solvency II

GeneralWilliam Gallimore: 020 7337 8826 william@highfinancegroup.co.ukJames Kitt: 020 7337 1202 james@highfinancegroup.co.uk

PensionsMiranda Wilkinson: 020 7337 8815miranda@highfinancegroup.co.uk

ContractRupa Pithiya: 020 7337 1200rupa@highfinancegroup.co.uk

De-risking Solutions

£35k - £80k + Bonus + BenefitsLondon

Excellent opportunity to broaden your experience across thefinancial services market. This leading global organisation is currently seeking proactive and innovative part-qualified and experienced Pension Actuaries to work on bespoke projects addressing funding policies and liability management. With exposure to asset allocation investment strategy you will be highly commercial and able to demonstrate insight to cutting edge solutions. MW8530

Pensions Consultant

£35k - £65k + Bonus + BenefitsUK Wide

Are you looking for a varied role with increased responsibility andclient exposure? Our client is seeking part-qualified and qualified pensions actuaries to work on an exceptional range of Trustee andCorporate clients. Providing support to senior consultants, you will assist on a variety of projects including bespoke de-risking and investment related assignments whilst and benefitting from accelerated career progression. MW7746

PensionsPensions

General

Europe

Contract Roles

£500 - £1,500 per dayUK Wide

Part qualified / qualified applicants required with S2, Capital or Financial Reporting experience. You will be involved directly in the interpretation and implementation of S2 for European companies. You will work the internal model, develop the economic capital methodology, manage the ORSA and work with the global offices. Project management skills required. RP8001

Life

54 August 2011 www.jobs.the-actuary.org.uk

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Actuarial Analyst – Pensions (Ref: HLEB-9)£30k - £40k p.a. + study packageReading

Creatively different

“A fresh approach to pension scheme financing and risk management”Previously Heath Lambert, we joined the Arthur J Gallagher family in May 2011 to become one of the world’s largest andfastest growing insurance broking, underwriting and employee benefits organisations, operating in more than 100 countries.

An exciting opportunity has arisen to become part of the Gallagher Employee Benefits actuarial team to assist in the provisionof actuarial and risk management services to pension scheme clients. At Gallagher Employee Benefits we believe in looking at tasks from first principles to gain a proper understanding. This requires research, thinking and implementation - all teammembers are expected to be competent, to communicate with clients and make a contribution.

Key Skills and Experience

You will be a highly skilled actuarial student with • a minimum of four years experience within a similar role; • a minimum of six Institute and Faculty of Actuaries CT series exam passes or equivalent; • excellent communication skills; and • experience of using SuperVal.

This position will put your skills into practice and you will be given the opportunities and responsibilities you deserve.

To apply online please visit our website www.gallagherheath.com/careers or via post to: Joanna Marlowe, Gallagher Heath, Focal Point, 27-35 Fleet Street, Swindon SN1 1RG. For further information email us at careers@heathlambert.com

Gallagher Employee Benefits are an equal opportunities employer.

Closing date: 25th August 2011

Gallagher Employee Benefits is a trading name of Heath Lambert Consulting Limited, which is authorised and regulated by the Financial Services Authority. A member of the Society of Pension Consultants. Registered office: 9 Alie Street, London E1 8DE. Registered No. 0772217 England & Wales. www.gallagherheath.com

Rob Bulpitt,Manager

Tel +44 (0)20 7092 3237rob.bulpitt@eamesconsulting.com

Rupert Rickard,Managing Consultant

Tel +44 (0)20 7092 3219rupert.rickard@eamesconsulting.com

Zoe Campbell,Senior Consultant

Tel +44 (0)20 7092 3208zoe.campbell@eamesconsulting.com

Dennis Ball,Senior Consultant

Tel +44 (0)20 7092 3286dennis.ball@eamesconsulting.com

Mansi Koshy,Senior Consultant

Tel +44 (0)20 7092 3283mansi.koshy@eamesconsulting.com

Alistair Allan,Senior Consultant

Tel +44 (0)20 7092 3262alistair.allan@eamesconsulting.com

UK I Europe I Asia Pacific

“...one of the best recruitment andsearch firms I have worked with...”HR Manager, Amlin

Contact Parvinder Matharu

Newton Recruitment

t +44(0)1689 862937e parvinder@newtonrecruitment.com

w www.newtonrecruitment.com

Global Speciality UnitFinancial Reporting Actuary, London

circa £150k packageThis role supports the Global Specialty strategic business unit.You will work with underwriters and financial controllers whilemaintaining strong relationships with claims, reinsurance andIT departments. The lines of business will include largespecialty accounts on a worldwide basis.The candidate will build actuarial valuations, support thebudget process and assist in global insurance wide projects. Youwill deal with US GAAP, SEC financial requirements, UK GAAPregulatory framework and the Lloyd’s platform. The candidatewill be responsible for Solvency II technical provisions andancillary reporting including reserve volatility measurement.In addition you will work directly with external consultants andwith internal and external auditors. You’ll become responsible for:• Completing the quarterly reserving process including

performance of reserve reviews and claims liabilities’recommendations;

• Present and discuss the results of your work to pricing actuaries,underwriting business unit managers, auditors and consultants;

• Preparing Reports of the Actuary and ActuarialMemorandums on Business Units results;

• Support accounting and finance teams on a worldwide basis.

Start a more targeted search.Executive Search is our core business. That’s why an increasing number of companies are looking to us to find the exceptional people they need.

At Pure Search we don’t subscribe to a high-volume recruitment strategy and we don’t believe in gimmicks to attract the best talent.

Instead we offer a tailored search methodology which, in a short space of time, has allowed us to establish

a reputation as a company which never fails to deliver.

■ Our Actuarial & Risk mandates are exclusive to Pure Search with an outstanding completion record of our

retained searches at the £100-500k level.

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team builds.

■ We are constantly researching, analysing and benchmarking professionals across the market – we know

the answer to “What am I worth?”

Make a more informed decision and call the best connected Actuarial & Risk search professionals in the market. Pensions & Investments Ian Addison-Smith 02074294446 ianaddisonsmith@puresearch.com

Insurance James Everett 02074294434 jameseverett@puresearch.com

London Hong Kong160 Queen Victoria Street London EC4V 4BF Level 5, Two Exchange Square, 8 Connaught Place Central, HK

www.puresearch.com

56 August 2011 www.jobs.the-actuary.org.uk

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...visit Jobs in Risk and we’ll unlockcareer expansion or business growth ifyou’re looking for that ideal candidate.

For career openings, visit the UK’slargest risk industry job portal at:

OPENDOORS

www.jobsinrisk.com0870 0427641

the job-site for the UK risk and compliance sectorsNow part of Incisive Media

Consultant, ActuarialMelbourne, AustraliaThis position will support the growth of the Russell Investments Australian Actuarial practice and execute plans that will resultin strengthening our position as a thought leader and premier specialist actuarial advice provider in the superannuation (pensions)industry in Australia.

This role will be responsible for day to day delivery of actuarial and consulting services for a range of clients.

We are currently considering applications from experienced consultants with a background in Pensions/ Superannuation whowould be keen to relocate to Melbourne, Australia.

This is an opportunity for you to expand your expertise and gain international experience in an innovative market. We willconsider part-supporting relocation and visa requirements to successful UK based applicants and offer a competitive market ratecompensation package.

Russell Investments has been present within the Australian market for 25 years and globally for 75. Our Sydney and Melbournebased Actuarial team is a major provider of actuarial services to complex defined benefit superannuation schemes, includingmajor public sector schemes and is actuary to 8 of the 10 largest corporate schemes in Australia.

To apply for this position or for further details please contact Nathan John, Talent AcquisitionManager for EMEA & Asia Pac at njohn@russell.com

High Finance GroupSpecialist Recruiters

High Finance Group is an established leader in the recruitment of Actuarial Professionals with a worldwide reach. Our consultants, led by ex-industry professionals, work closely with trusted clients across the industry.

Each consultant focuses specifically on a single respective area of Life and General Insurance, Pensions and Investment Management.

Our consultants stay close to the profession through maintaining personal and professional relationships, providing a network of clients and candidates to offer quick solutions to assignments.

The consultants attend and organise industry events to ensure they are leading the way in the appreciation of the challenges impacting the industry.

What We Offer

Contact Us

Life Roles

Non-Life RolesThe work of non-life actuaries has never been more important to the processes of the industry and with this has come an increased need for Actuaries and their expertise. Whilst there has been an upsurge in the demand for Actuaries with Capital Modelling experience in particular, those with Pricing and Reserving backgrounds have seen the demand for their services increase exponentially too. Opinions differ as to when or if this demand will slow but for the moment Actuaries can expect to be presented with a variety of roles that fit theirexperience allowing them to be selective over their choice of job application and extremely well remunerated when negotiating packages.

High Finance Group can offer professional and discreet advice across a number of areas including salary benchmarking, CV formatting and future career options.

Current assignments in the Non-Life sector are:

Actuarial Lead Director - Experienced QualifiedActuary to subject specific areas of aemerging Actuarial Consultancy.

Chief Risk Officer – Qualified Actuary to head upthe Risk and Actuarial function at an established Lloyd’s syndicate.

Syndicate Chief Actuary - Qualified Actuary to build a team underneath them at the inception point of this new Lloyd’s syndicate.

For more information about our current roles, or to speak to one of our specialist consultants about your career contact us at:

E. actuarial@highfinancegroup.co.uk

T. +44 (0) 20 7337 8800

W. www.highfinancegroup.co.uk

The demand on Actuaries to become forward thinking and adaptive to new challenges has resulted in a surge in non- traditional and very interesting opportunities for Life Actuaries. Amongst growth in Economic CapitalManagement, Modeling Specialism and the continuingsuccess of boutique specialist consultancies the spectrumof work is growing beyond the traditional remit.

In particular we are actively working with Investment Banks, Management Consultancies and CRO functions utilizing Actuaries to provide the second line of defense in Risk Management.

Current assignments in the Life sector are:

ALM Actuary – Life Actuary to deliver bespokeinsurance solutions to UK Insurers as part of European Investment Banking team.

Financial Risk Manager – Actuary to managestrategic Investment focused risk initiatives across the business units and develop new trade concepts.

Equity Research – Qualified Actuary to cover aportfolio of UK stocks for Global Investment Bank.

STAR ACTUARIAL FUTURES

+44 (0)7545 424 206irene.paterson@staractuarial.com

ME

+44 (0)7595 023 983louis.manson@staractuarial.com

ME

+44 (0)7766 414 560antony.buxton@staractuarial.com

ME

Louis Manson Antony Buxton FIA Irene Paterson FFA+44 (0)7900 696 825martine.scott-gordon@staractuarial.com

ME

Martine Scott-Gordon AFA+44 (0)7889 007 861lance.randles@staractuarial.com

ME

Lance Randles MBA

Insurance group seeks qualified actuary or equivalent to leadthe development of a refined, evolving set of pricing factorsand assumptions for pricing longevity. You will have excellentstatistical and analytical skills, experience in analysinglongevity and a strong understanding of the challenges facingan annuity provider. This is a great opportunity to build yourprofile with a market leader.

LONGEVITY ACTUARY

LONDON, YORK OR NORWICH up to £90k + bonus + benefits

Ref: Star536

Contact us for insight and advice to help you set and achieve your next career goal. We have a wide range of potential opportunities for qualified actuaries across all areas of actuarial specialism. We are also very happy to perform salary benchmarking.

JUST QUALIFIED? WHAT IS YOUR NEXT CAREER GOAL?

NATIONWIDE £ salary benchmarking

Ref: Star538

+44 (0)7740 285 139paul.cook@staractuarial.com

ME

Paul Cook+44 (0)7841 872 575carolina.emmanuel@staractuarial.com

ME

Carolina Emmanuel

STAR CANDIDATE BONUS

REGISTER WITH US

IF WE PLACE YOU IN A NEW ROLE IN 2011

WE WILL GIVE YOU A TABLET PC OF YOUR CHOICE

VISIT OUR WEBSITE FOR FULL TERMS AND CONDITIONS

AND ALL OUR LATEST VACANCIES

Please contact us at any time (including evenings and

weekends) to discuss vacancies of interest or for an

informal discussion regarding your career goals.

Our client seeks candidates with strong operational riskknowledge within an insurance background to supportSolvency II internal model development. You will be anexcellent communicator who can translate technical conceptsinto practical solutions and you will also possess welldeveloped stakeholder management skills. This role offers anunparalleled opportunity to be at the cutting-edge of SolvencyII development.

MOVE TO ERM

LONDON £ excellent + bonus + benefits

Ref: Star535

SOLVENCY II

Our client is seeking a part-qualified non-life actuary to playa key role in the Solvency II project. You will develop your technical skills and your softer skills through interaction with the wider business. This is a great opportunity for a work-life balance that will enable you to make speedy exam progress and enjoy the sun, sand and surf. Ride the wave.

SOLVENCY II BY THE SEA

SOUTH COAST £ excellent + bonus + benefits

Ref: Star537

NON-LIFE

LIFE

“...energy, integrity and a long term perspective.”

http://twitter.com/StarActuarial

Follow us on Twitter

Ref: Star483

Reporting to the Head of Capital Assessment, you will play akey role in the management of the Insurance Division's capital base including the production of periodic reports covering regulatory capital, risk capital and solvency measures. You will be a qualified actuary with strong capital management knowledge. You will have good planning, organisation and prioritisation skills together with the ability to facilitate, negotiate and influence.

CAPITAL REPORTING ANALYST

£ to attract the best

£ to attract and retain exceptional talent

£ excellent package

Reporting to the Head of Capital Assessment, you will play a key role in the management of the Insurance Division's capital base using tools such as RiskAgilityTM. You will provide support in the production and reporting of the Insurance Division’s capital requirement, the production of capital projections and the oversight of the underlying capitalbases and assumptions.

CAPITAL ASSESSMENT ACTUARY

Ref: Star484

Ref: Star485

Reporting to the Capital Assessment Actuary, you willassess and analyse the capital requirement for the Insurance Division and develop capital projection capability. You will have a strong statistical background and a good grounding in Solvency II. Quant analysts, PhDs or nearly qualified actuaries will be considered.

RISK AGILITY ANALYST

Reporting to the Director of Capital Management, you will provide thought leadership on capital management and oversee the integrity of the capital aggregation across the Insurance Division. You will be a senior qualified actuary with strong capital reporting and Solvency II knowledge, the ability to lead and implement change and to influence at senior levels internally and externally.

HEAD OF CAPITAL ASSESSMENT

£ to attract and retain exceptional talent

Ref: Star480

Our client is looking to recruit several strong candidates to join a newly formed in-house Strategic Capital Management team. The work is varied and challenging and focuses on capital transactions, capital efficiency and capital risk mitigation. This is a great opportunity to develop and deploy first class technical and stakeholder management skills within a high calibre and high profile team. Candidates with either Life or GI experience will be considered. Excellent packages are available to the right candidates.

EDINBURGHSTRATEGIC CAPITAL MANAGEMENT

STAR CLIENTS STAR VACANCIES

Please contact Irene Paterson on 07545 424 206 or irene.paterson@staractuarial.com to discuss these opportunities.

The above vacancies represent a snapshot at the time of writing. What matters most is your career development.

Irene Paterson is a Partner at Star Actuarial Futures. She is a qualified actuary basedin Edinburgh and would be delighted to meet with you to discuss the next steps in your career.

Irene is well connected within the Profession and is an expert in working withcandidates at all levels to find the right roles for their ‘Star Actuarial Futures’.

mailto:lance.randles@staractuarial.com

62 August 2011 www.jobs.the-actuary.org.uk

More jobs online at www.theactuaryjobs.com

hays.co.uk

For further information or to apply for any of these vacancies, visit hays.co.uk and enter the relevant job reference number.

MAKE A POSITIVE IMPACT

Head Pricing Actuary – Financial Lines London, £150-170,000 + benefitsThis global insurer is seeking a financial lines senior actuary to join its team. This is a unique opportunity to shape the development of the international product offering. With operations in more than 50 countries you will be working with the overseas general product heads. You will work with the international portfolios and will have significant exposure to the group’s senior management team. Reporting directly to the European group chief actuary, a sound background of technical and product knowledge coupled with the desire to enhance your career is essential. Ref: 1422195steven.sangha@hays.com or 020 7481 9984

Solvency II Manager, London £90-120,000 + car + bonus + benefitsWorking within the group function of this global insurer, you will be required to support the development of the group’s Solvency II modelling capabilities. This includes developing the methodology for the business unit’s Solvency II and economic capital modelling and supporting future development in accordance with Group standards, providing the necessary technical/actuarial advice. To be successful, you’ll be a qualified life actuary, ideally with solid PQE, with risk modelling research, Solvency II and/or risk and capital modelling experience. Team management experience is advantageous. Ref: 1432787kevin.smith@hays.com or 020 7481 9984

Pensions Actuarial Consultant Bristol, to £120,000 + bonus + benefitsWorking for this major financial services provider, you will advise trustees and employers on the funding and risks associated with defined benefit pension schemes, including scheme funding/restructuring, M&A, ALM and risk management. Should you hold a Scheme Actuary certificate, you’ll be appointed to a pension scheme, where you’ll provide actuarial advice as required by the pension scheme’s documentation and any statutory requirements. You will be a qualified actuary and have knowledge of benefits legislation, market awareness and the ability to assist with business development. Ref: 1464892kevin.smith@hays.com or 020 7481 9984

Group Actuary London, £80-110,000 + benefitsWorking for this global insurer you will play a key role and report directly to the chief actuary. You will develop suitable acquisitions, divestitures and strategies, with a view to support the European reinsurance department. Successfully executing M&A activity, you will define, challenge and articulate the business model. You will be at the centre of this team and have the ability to manage the full process. As a qualified actuary or finalist you will ensure best practice and liaise with non-actuaries. Ref: 1442445steven.sangha@hays.com or 020 7481 9984

T:E:W:

020 8420 1818jobs@actualsearch.co.ukwww.actualsearch.co.uk

Actual SearchS E E K I N G T H E E X C E P T I O N A L

To apply for any of these vacancies please phone 020 8420 1818, and speak to Peter or Normaor apply online at www.actualsearch.co.uk or email jobs@actualsearch.co.uk.

w w w. 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

to £80K

Leading life insurer with new & innovative protection products seek individualwith exp. in a life office, reinsurer or consultancy & exposure to productdevelopment or financial modelling. Work closely with Actuarial Director &assist the team in new product development, pricing/profit testing, financialprojections, capital management, reinsurance & marketing. Ref:1806

London

Senior Product Actuary

Fast track your career by joining this global life & protection provider. Key roleoverseeing investment practices & integrating with solvency II. Use your ALM expto advise on derivatives, hedging & liquidity ratios. Suit nearly/newly qual actuary.Contractors & flexi-working also considered. Ref:1812

£50-75K

Life ALM

£40-90K + exc bonus

Expansion at this small, highly respected, consultancy has created roles for ap/q & qual life actuary. Extensive client contact & varied projects inc solvency &valuation work in a profit scheme environment. Prestigious clients, profit share& excellent career prospects. Exams progress not essential. Ref:1809

Surrey

Solvency, Valuation & more£40-95K + bonus

Superb opportunity for part & qual actuaries with pensions or investmentexperience to join successful investment consultancy. New challenge, terrificvariety & chance to excel in small, dynamic, proactive team. Help manage aportfolio of clients, deliver investment solutions & ALM/Quant work. Ref:1803

City

Move to Investment Consultancy

£40-60K

Are you good enough to go to the top? Independent, growing & dynamicconsulting practice seeks pensions analysts with ambition to progress to boardlevel. If your skills include pensions valuations, strong Excel and goodcommunications skills this is a fantastic chance to prove yourself. Ref:1811

M4 Corridor

Fantastic Career Prospects£60-100K

My client, a leading personal lines Lloyd's syndicate is looking for an actuaryto join its expanding team. Scope to develop the role, build clientrelationships, undertake reserving & create capital models as well as R&D.Attractive package on offer for nearly/newly qual. non-life actuary. Ref:1805

London

Capital Modelling/Reserving – GI

£50-95K + exc bens

Need a new challenge? This is it - totally client facing, exciting, leading edge& everything that’s different from routine within life & financial services. PQ orqual actuaries with Prophet, Moses or similar skills for key business projectsin ALM, stochastic modelling, financial economics & derivatives. Ref:1804

Surrey/Berks + Travel

Prophet - ALM – Stochastic Modelling£35-85K + RELOC

Change your lifestyle & enjoy more free time by joining this award winning GIpersonal & commercial lines insurer. Expansion has led to key roles for pricinganalysts & actuaries to spearhead new projects. Outstanding workingenvironment inc flexitime. Strong Excel & analysis skills essential. Ref:1810

South Coast

No more commuting

to £60K

International role for a life actuary ideally with with-profits or financial reportingexp. to join a small team providing corporate governance & group actuarialsupport. Suit a senior student or nearly/newly qual. able to communicate wellplus keep a hands on approach to detailed work. Ref:1802

N East / N West

Nearly / newly qualified life actuary£40-95K

Leading global P&C insurer needs pricing analysts & actuaries for theirEuropean division. You’ll assess profitability, analyse products & liaise withreserving & capital teams. Terrific chance to play key role in the developmentof this new team. Excellent rewards & worldwide career options. Ref:1808

London

Pricing & Making Your Mark

£40-60K

Broaden your pensions exp. by joining the investment team at this globalconsultancy. Duties include ALM, investment advice & business development.You’ll attend client meetings & mentor juniors. Pensions & strong Excel neededfor this small friendly team. Suit p/q or newly qual. Ref: 1807

London

Pensions & Investmentc£45-65K + bens

Boutique consultancy with clients in the UK & overseas seek senior part ornearly qual life actuary. Provide a range of services from AFH work through toSolvency 2, M&A’s & product pricing. Gain wide ranging exp. & earlyresponsibility with friendly, open team. A great work life balance. Ref:1801

South East/ Home Counties

Life Consultancy + work/life balance

Surrey / Hants

Globalopportunities

Unrivalledcontacts

Industryinsight

CVpreparation

Interviewcoaching

Salarynegotiation

Runbyactuariesforactuaries

These roles

are only small

sample of the vacancies

we have at any one time.

For a role specific toyou, please

contact us at one of our offices.

Worldwidecontacts

Industryinsight

Globalopportunities

Chief ActuaryMediterranean Our client is seeking to recruit a Chief Actuary. Reporting to the CEO the successful candidate will set the company’s Actuarial policy and direction while also being active in, and the driver of the organisation’s overall strategy. As a member of the senior leadership team you will work closely with the CEO and Board of Directors as well as with the relative governance committees of the board. You will be a qualifi ed Actuary with a minimum of 5 years’ post-qualifi cation experience. Job ref: J4009

Capital ActuarySouth EastMy client, an Essex-based insurer is looking for a Capital Actuary to work on the capital model build, parameterisation, documentation, model refi nement and output development. The role involves working closely with the Chief Actuary and the rest of the actuarial function. Experience of Igloo software modelling would defi nitely be a bonus. The ideal candidate will be either a nearly/newly qualifi ed actuary or a part-qualifi ed actuary with knowledge of insurance regulation. Job ref: J3961

Non-Life Pricing ManagerLondonYou will support the enhancement of the pricing processes performed by the actuarial products teams and the delivery of the annual plan for pricing reviews. The scope of the role includes all lines of business for all countries across the European region. You will have proven people management and leadership skills and a proven ability to educate non-technical managers on technical areas that enhance their decision-making ability. Job ref: J3971

Senior Investment ConsultantScotlandYou will have responsibility to help drive the consulting agenda with clients and successfully promoting the proposition to new and existing clients in Scotland and, more generally, in the market. You will also have a responsibility to help develop the business and team in Scotland. You will act as a mentor and role model to junior staff, by motivating and inspiring a high standard of excellence, and creating a culture of proactively, collaboration and personal development. You will also contribute to the ongoing development of the intellectual capital. Job ref: J3982

CV Booster - Life or GI LondonUnmissable opportunity to join a high-profi le organisation that will infl uence and shape the development, implementation and monitoring of insurance regulation. A spell in this organisation will bring you into regular contact with some of the most experienced actuaries in the country. Applications are invited from qualifi ed actuaries of all levels. Job refs: J4008, J4010

Life Pricing Actuaries and AnalystsEuropeExciting opportunity for students and qualifi ed actuaries to join an expanding reinsurance operation where your contribution to their business will be visible and rewarded. Responsibilities will include: development and maintenance of pricing methodologies and tools; research and product development; and experience analyses. Also part of the job will be to enhance the company’s industry profi le through publications, conference participation and working with professional bodies. Job ref: J4003

Business Development Actuaries UK/EuropeWe are working with several clients who are keen to recruit life insurance actuaries with an interest in sales and marketing. At the heart of the role is the requirement to generate profi table new business opportunities and build sustainable client relationships. You will have a track record of business development plus the ability to convert diffi cult concepts into neat solutions and to implement practical initiatives. A high degree of organisation and enthusiasm with a focus on profi t is essential. Job refs: J4004, J4006

European Product DevelopmentLondonA new and exciting role with an international market leader. Based in London, the role will have a European focus and you will be working with local branches to develop innovative product variations. You will have oversight of pricing processes and models and you will liaise with many other departments in bringing products to market. Post-qualifi cation experience, ideally in a pricing or product development environment, is required. European language skills will be an advantage but are not essential. Job ref: J3988

Chief ActuaryDublinExperienced Non-Life Actuary required to lead the Actuarial Department and be responsible for all activities, including planning, strategy and operational workfl ow. Responsibilities of the role will include developing and overseeing actuarial strategy in line with company objectives, assisting with Solvency II to ensure compliance and development of the risk management function. Job ref: J3951

Dublinireland@acumen-resources.com

Tel +353 1 6099 400

Londonuk@acumen-resources.com

Tel +44 20 3189 2900

Sydneyaustralia@acumen-resources.com

Tel +61 2 9262 1612

Hong Kongasiapacifi c@acumen-resources.com

Tel +852 3051 9920

General Insurance - UK

Ireland, Continental Europe & Asia

www.ojassociates.com

London £110,000 + Bonus + BensRick DavisCapital Manager

Exciting London Market insurer requires an experienced actuary to lead a capital team. An excellent role for anyone looking to build team leadership and business-facing experience. Requires previous capital experience (igloo preferred) and a high level of commercial acumen.

International €Competitive + Bonus + BensJulien FabiusHead of Non-Life Risk

General Insurance Group seeks a Head of Risk to set up and lead the risk and audit function, prepare the organisation for the implementation of Solvency II and coordinate the firm's enterprise risk management processes. Managerial experience and Solvency II knowledge are required.

London £150,000 + Bonus + Bens

Paul FrancisGroup Chief Actuary

My client is an entrepreneurial London Market business seeking a managing actuary. You will work closely with the board, manage the actuarial team and also engage in extensive portfolio analysis to advise the board on acquisition opportunities. Very visible, influential role.

Germany or Switzerland €Competitive + Bonus + BensPhu Le-NgocSenior Actuaries

Exciting career opportunities for high potentials. My client is looking for qualified or part-qualified actuaries with a strong academic and professional track record. You will deal with MCEV, SST or Solvency II, ALM. Travelling into local entities requires international experience.

London £55,000 + Bonus + BensBen PittLondon Market Pricing

A vacancy has arisen within the Pricing team of a London Market organisation. You will work closely with the underwriters on a variety of lines of business. Previous pricing experience is not necessarily required as excellent ‘on the job’ training will be provided.

London £75,000 + Bonus + Bens

Ben PittTechnical Provisioning

The London market division of a global insurer seeks an ambitious part qualified actuary for their newly appointed Technical Provisioning team. You will work directly with the Chief Actuary on a variety of Reserving and Solvency II based projects. Excellent support and training is guaranteed.

London £250,000 + Bonus + BensJamie HowardChief Actuary

EXCLUSIVE OPPORTUNITY. Senior Chief Actuary role for London based insurance company. Call for details.

London £150,000 + Bonus + Bens Jamie HowardGI Risk Actuary

A unique opportunity to join a non-life group risk team. A multinational insurer is looking for an experienced commercial actuary with around 2-5 years PQE. Previous experience in GI reserving or pricing an advantage, you must have good business acumen and communication skills.

Zürich, Switzerland CHF180,000 + Bonus + BensEmma GilbertSenior Run-Off Actuary

I am working with a world-renowned Reinsurer exclusively on two Senior positions within their Run-Off buy-out team. A rare opportunity to get involved in unique Reserving transactions, leading global project teams and negotiating with external clients internationally. German not needed.

London £110,000 + Bonus + Bens

Rick DavisReinsurance Pricing Actuary

A strong Lloyd’s Syndicate requires a Reinsurance Pricing Actuary to operate as part of a successful underwriting team. The successful candidate will be a qualified actuary with pricing experience gained within a non-life insurer/reinsurer. Requires excellent communication skills.

London £200,000 + Bonus + Bens

Paul FrancisPartner - Consulting

An established global business with strong non-European footing is seeking to formally develop an actuarial service offering. They will target front-office insurance services through effective software development. Unique opportunity to contribute to the growth of an astonishing entity!

Germany €90,000 + Bonus + BensPhu Le-NgocSenior Actuary GI

My client is looking for senior actuaries with 7-10 yrs experience. You will be responsible for either Reserving, Pricing or Capital Modelling. You will also provide technical and thought leadership for junior actuaries. Relocation package includes language courses.

Paul Francispaul.francis@ojassociates.com

0207 649 9469

Rick Davisrick.davis@ojassociates.com

0207 649 9353

Jamie Howardjamie.howard@ojassociates.com

0207 310 8725

Ben Pittben.pitt@ojassociates.com

0207 310 8719

General Insurance - UK

Harriet Hallharriet.hall@ojassociates.com

0207 310 8783

Patrick Flanaganpatrick.flanagan@ojassociates.com

0207 649 9355

Clare Nashclare.nash@ojassociates.com

0207 649 9350

Patrick McMahon patrick.mcmahon@ojassociates.com

0131 278 0133

Life Insurance - UK

General Insurance - UK

Ireland, Continental Europe & Asia

www.ojassociates.com

London £110,000 + Bonus + BensRick DavisCapital Manager

Exciting London Market insurer requires an experienced actuary to lead a capital team. An excellent role for anyone looking to build team leadership and business-facing experience. Requires previous capital experience (igloo preferred) and a high level of commercial acumen.

International €Competitive + Bonus + BensJulien FabiusHead of Non-Life Risk

General Insurance Group seeks a Head of Risk to set up and lead the risk and audit function, prepare the organisation for the implementation of Solvency II and coordinate the ­rm's enterprise risk management processes. Managerial experience and Solvency II knowledge are required.

London £150,000 + Bonus + Bens

Paul FrancisGroup Chief Actuary

My client is an entrepreneurial London Market business seeking a managing actuary. You will work closely with the board, manage the actuarial team and also engage in extensive portfolio analysis to advise the board on acquisition opportunities. Very visible, in�uential role.

Germany or Switzerland €Competitive + Bonus + BensPhu Le-NgocSenior Actuaries

Exciting career opportunities for high potentials. My client is looking for quali­ed or part-quali­ed actuaries with a strong academic and professional track record. You will deal with MCEV, SST or Solvency II, ALM. Travelling into local entities requires international experience.

London £55,000 + Bonus + BensBen PittLondon Market Pricing

A vacancy has arisen within the Pricing team of a London Market organisation. You will work closely with the underwriters on a variety of lines of business. Previous pricing experience is not necessarily required as excellent ‘on the job’ training will be provided.

London £75,000 + Bonus + Bens

Ben PittTechnical Provisioning

The London market division of a global insurer seeks an ambitious part quali­ed actuary for their newly appointed Technical Provisioning team. You will work directly with the Chief Actuary on a variety of Reserving and Solvency II based projects. Excellent support and training is guaranteed.

London £250,000 + Bonus + BensJamie HowardChief Actuary

EXCLUSIVE OPPORTUNITY. Senior Chief Actuary role for London based insurance company. Call for details.

London £150,000 + Bonus + Bens Jamie HowardGI Risk Actuary

A unique opportunity to join a non-life group risk team. A multinational insurer is looking for an experienced commercial actuary with around 2-5 years PQE. Previous experience in GI reserving or pricing an advantage, you must have good business acumen and communication skills.

Zürich, Switzerland CHF180,000 + Bonus + BensEmma GilbertSenior Run-O� Actuary

I am working with a world-renowned Reinsurer exclusively on two Senior positions within their Run-O� buy-out team. A rare opportunity to get involved in unique Reserving transactions, leading global project teams and negotiating with external clients internationally. German not needed.

London £110,000 + Bonus + Bens

Rick DavisReinsurance Pricing Actuary

A strong Lloyd’s Syndicate requires a Reinsurance Pricing Actuary to operate as part of a successful underwriting team. The successful candidate will be a quali­ed actuary with pricing experience gained within a non-life insurer/reinsurer. Requires excellent communication skills.

London £200,000 + Bonus + Bens

Paul FrancisPartner - Consulting

An established global business with strong non-European footing is seeking to formally develop an actuarial service o�ering. They will target front-o�ce insurance services through e�ective software development. Unique opportunity to contribute to the growth of an astonishing entity!

Germany €90,000 + Bonus + BensPhu Le-NgocSenior Actuary GI

My client is looking for senior actuaries with 7-10 yrs experience. You will be responsible for either Reserving, Pricing or Capital Modelling. You will also provide technical and thought leadership for junior actuaries. Relocation package includes language courses.

Paul Francispaul.francis@ojassociates.com

0207 649 9469

Rick Davisrick.davis@ojassociates.com

0207 649 9353

Jamie Howardjamie.howard@ojassociates.com

0207 310 8725

Ben Pittben.pitt@ojassociates.com

0207 310 8719

General Insurance - UK

Harriet Hallharriet.hall@ojassociates.com

0207 310 8783

Patrick Flanaganpatrick.�anagan@ojassociates.com

0207 649 9355

Clare Nashclare.nash@ojassociates.com

0207 649 9350

Patrick McMahon patrick.mcmahon@ojassociates.com

0131 278 0133

Life Insurance - UK

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actadvert4.pdf 1 20/07/2011 17:17:18

Ireland, Continental Europe & Asia

Life Insurance - UK

Dublin €115,000 + Bonus + BensPatrick McMahonCorporate Actuary

A global market leader is looking for a quali�ed actuary to take on a new role within the organisaton. You will be exposed to cutting edge projects such as Solvency II and Capital Management. A wealth of career progression is on o�er working with such a prestigious name.

Dublin €80,000 + Bonus + BensPatrick McMahonUnique Annuities Position

Are you looking to bolster your actuarial skills in a challenging and varied role? My client seeks a nearly/newly quali�ed actuary to provide actuarial support on all aspects of Variable Annuities with exposure to Pricing, Reporting and Product Development. Excellent career progression.

Zürich, Switzerland CHF170,000 + Bonus + BensEmma GilbertTeam Leader – Pricing

An extremely prestigious global Reinsurer is looking for an exceptional actuary to lead and build a brand-new pricing team of 4. The role will be technically focused on pricing methodology and Experience Analysis for global market units. Please call for a more detailed overview.

Brussels €Competitive + Bonus + BensJulien FabiusValuation Actuary

Top 20 European Insurance Group seeks a Valuation Actuary to join the Valuation team at Group level responsible for Europe and Asia. You will work within a strong valuation team where you will be responsible for the group’s calculations and analysis on the group’s results (MCEV, SCR, MCBS, LAT...)

UK Wide £110,000 + Bonus + Bens

Patrick FlanaganUnique Actuarial Consultant

A unique consultant role working in a small actuarial team for a Fortune 500 company. You will be the key link between the clients and internal employees explaining actuarial concepts. You will have the �exibility to manage your own workload and can work from home on Fridays.

South East £80,000 + Bonus + Bens

Harriet HallActuarial Systems Consultant

Do you have a strong technical background but now looking to be more strategic and less hands-on? This tier one �nancial services �rm is looking for actuaries with extensive systems and modelling skills to join its market leading consulting team. All levels of quali�cation considered.

London £100,000 + Bonus + Bens

Clare NashReinsurance Actuary

Have you ever considered moving into Reinsurance? My client seeks two quali�ed actuaries to play major roles within their Capital and Marketing teams. A multitude of backgrounds will be considered as long as you have the aptitude to acquire new skills. High pro�le positions.

South East £90,000 + Bonus + BensClare NashCommercial Pricing Actuary

Are you looking for a highly commercial role within a market leading insurer? You will play a lead role in the management and development of the Pricing team and help in�uence key strategic decisions. Working alongside senior management, this is a career enhancing opportunity.

London £130,000 + Bonus + Bens

Clare NashSenior ALM Actuary

An outstanding opportunity has arisen within a prestigious investment bank; my client seeks an experienced actuary (quali�ed or QBE) to take ownership of market leading projects. You will enjoy playing a pivotal role in technical and more commercial projects. Outstanding career potential.

London £80,000 + Bonus + Bens

Patrick FlanaganNewly Quali�ed Actuary

A niche and specialist insurer is looking for a nearly/newly quali�ed actuary to join their small entrepreneurial team. A broad all-encompassing position that will allow you close interaction with the Chief Actuary, CRO and Investments/ALM team. A truly outstanding career enhancing opportunity.

London £45,000 + Bonus + Bens

Harriet HallActuarial Analyst - Buyout

Are you a pensions or investments actuary wanting to get involved in more sales focused activities in addition to cutting edge buy-out projects? Highly commercial role within a leading insurer responsible for developing de-risking solutions for their clients. Excellent career development role.

Scotland £70,000 + Bonus + BensPatrick McMahonFinancial Reporting Actuary

A highly motivated and quali�ed actuary is required to take the lead on various new reporting projects and team developments. You will have outstanding communication, organisational and in�uencing skills as you present results to senior management and non-technical stakeholders.

Julien Fabiusjulien.fabius@ojassociates.com

+32 2-88 860 51 0207 649 9466

Patrick McMahonpatrick.mcmahon@ojassociates.com

+353 (0)1 685 2413

Emma Gilbertemma.gilbert@ojassociates.com

+41 (0)43 508 0509 0207 310 8782

Phu Le-Ngocphu.le-ngoc@ojassociates.com

+49 (0)89 2206 1068 0207 310 8643

International

Jonny Plews +44 (0)207 649 9467 jp@ojassociates.com

Asian Opportunities - Life / GI / Investments

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

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