Tag Archives: actuarial

LSE Actuarial Society’s annual CV & Interview Workshop, conducted by the GAAPS

Last month Dr Geraldine Kaye and Kerry Lofts ran GAAPS annual CV and Interview skills workshops at LSE Actuarial Society. It is always a pleasure in my line of work to help those just starting out along the long road of Actuarial exams.

This year’s students were thoroughly engaged, asking fantastic questions whilst we dissected their CVs and naturally we were also delighted to receive such positive feedback from the LSE Actuarial Society, with all students giving us 100% on their feedback sheets.

So, thanks again to everyone who attended the workshop. It was a pleasure meeting you all and we look forward to seeing you again next year.

GAAPS Actuarial is one of the most respected specialist Actuarial Recruitment Consultancies worldwide, and has earned a reputation for providing an efficient executive service to both candidates and employers.

Call for speakers from the Institute and Faculty of Actuaries

If you would like to propose a session for one The Institutes residential conferences, we want to hear from you. Session proposals will be reviewed by the conference programme committee.  The more detail you can give about your proposed session, the more it will help the programme committee with the selection process.  Please see below for how to submit a proposal.

 The programme committee is looking for session proposals that offer:

 •new and relevant subject matter contributions from more than one company

 •practical experience presentations from working parties

 •contributions from practitioners in the products, distribution and customer area case studies

 •contributions from non-actuarial speakers

 •contributions from wider fields

 •dynamic and entertaining speakers

For more details, e-mail:  eventmanagement@actuaries.org.uk

Important message from the Institute and Faculty of Actuaries about your CPD record

When did you last update your CPD record?  Will you be compliant by 31 July deadline? Please read the notes below for important advice regarding the current CPD reporting year :

Members in Category 2 are reminded that:

•the current CPD year ends on 30 June 2012; and

•the deadline for completing your on-line CPD record for the current period is Tuesday 31 July 2012.

No changes to CPD records will be possible after this date so, in order to be compliant for the current period, it is important that you log in and complete your record by close of play on 31 July.

No central monitoring of CPD records

During the previous reporting period (2010-2011), CPD requirements changed significantly; as a result of these changes, the Profession found that many CPD records were inadequately completed.  In recognition of the extent of the changes, the CPD team carried out a monitoring exercise and, where necessary, corrected inaccurate or inadequate reporting to bring records up to date.

In May 2012, the Profession transferred all member records to a new member database; as a result, for this and for all future CPD reporting periods, no central correction of inaccurate CPD reporting will be possible.  It is therefore stressed that this is now the responsibility of each member to ensure that their record is correctly completed by the 31 July deadline.

To help you, personal reminders will be issued in July, and further information about recording CPD can be found in the CPD area of the website.

Changes to the CPD recording pages/Verifiable CPD

Following the introduction of the Profession’s new membership database, next time you access your online CPD record you will see some small changes to the CPD recording pages.  These are designed to make CPD recording easier and more accurate: for example, you will be able to distinguish more easily between internal and external CPD events.

You will also find that the tick box which indicated whether a CPD activity was verifiable or non verifiable is no longer available.  Members are reminded that all CPD is verifiable; verification for ‘Private Study’ is indicated by completion of the ‘Learning outcome’ in your CPD record.  Please make sure that you complete this box when entering new records.

Partially regulated members

For partially regulated members, the introduction of the new database means that CPD can no longer be recorded on the Profession’s system.  Partially regulated members should now use their own regulator’s system to record their CPD.

 

Further information

Further information about your CPD requirements, please visit the following web pages:

•CPD Scheme 2011-2012

•Frequently asked questions

For further assistance please contact:  cpd_feedback@actuaries.org.uk

Climate body calls for flood defence upgrade

A further £20m a year needs to be spent on flood defences to keep pace with climate change, according to a new report from a climate change body. If this does not happen, the number of homes and businesses at the highest risk of flooding could almost double to 610,000 from its current level of 330,000 in the next 20 years.

The report by the Adaptation Sub-Committee (ASC) of the Committee for Climate Change, which advises the government, found that the number of properties built on flood plains has increased by 12% over the past 10 years, compared with a 7% rise outside flood-affected areas.

Citing figures from the Environment Agency, The ASC noted that at the same time, funding for flood defences from both public and private sources is decreasing. It was 12% lower for the current spending period compared with the previous period, after inflation.

Take-up of measures to protect individual properties from flooding is 20 to 35 times lower than the rate required to safeguard all properties that could benefit, the report said.

The ASC estimates that if the additional £20m was spent on flood defences, only 160,000 properties would be at significant risk of flooding by 2035.

ASC chairman Lord John Krebs said in a statement: “We must take adaptation more seriously if we are to manage the growing risks of floods and droughts. This can be done by investing more in flood defences, faster roll-out of water meters and giving serious consideration to where and how we build our housing and infrastructure.

“Without action by households and businesses to prepare for these inevitable weather extremes the country faces rising costs, unnecessary damage and future disruption.”

 

 

Research shows material worsening of bodily injury claims experience

The Institute and Faculty of Actuaries has released its 3rd annual report looking at ‘third party motor and periodic payment orders (PPOs) UK claims data’; a report which collates and analyses data from across the motor and PPO insurance industry for 2011.

A key finding of the Institute and Faculty of Actuaries report is the increase in the proportion of third party accidents involving bodily injury where data shows a staggering 18% increase from 2010 to 2011. A rise in the proportion of reported accidents involving bodily injury has been a key trend for several years; however this year has seen the greatest increase ever. The Institute and Faculty of Actuaries believes that this rise is down to unprecedented activity by claims management companies. The increase in claims increased costs to insurers to the tune of approximately £400 million in 2011.

David Brown, chairman of the Institute and Faculty of Actuaries UK third party motor and PPO claims working parties which produce the annual reports comments;

“The increase in costs to insurers because of the rise in bodily injury claims is likely to result in a rise in motor insurance premiums for drivers. The clear correlation between claims management companies office locations and the ‘hotspots’ for bodily injury claims suggests that the two are interlinked. We expect to see legislation coming soon which will affect the way in which claims management companies do business, which may account for the significant increase seen in 2011 – it is possible this is a last hurrah.

“In 2010 the worst areas of the UK overtook the worst areas of the US in terms of the proportion of accidents involving bodily injury. It is disappointing to see this trend not only continue, but worsen in all regions with the exception of Scotland.”

Accidents giving rise to third party claims are on the decline according to our 2011 data. Our research suggests that the rise in petrol prices has contributed to a reduction in the number of hours people spend driving and therefore has reduced accidents. Specifically third party damage claim frequencies have continued to decrease. This is the sharpest drop for the last 5 years, representing a decrease of 11%.

Third party bodily injury (TPI) claim frequencies increased by 5% in 2011. Claim numbers have been rising year on year since our records began, (with the exception of 2010 which appears to have been the result of Ministry of Justice personal injury claims reform rather than a change in trend).

A staggering 18% increase in third party accidents involving bodily injury (third party bodily injury/third party damage ratio) from 2010 to 2011. Since our records began year on year a greater proportion of accidents has involved a bodily injury claim, but this year has seen the greatest increase ever. We believe this rise goes with unprecedented activity by claims management companies. This change alone increased costs to insurers in excess of £400m and as a result it is likely that motor insurance premiums will rise.

Hotspots of third party accidents with bodily injury claims were found – mostly in the North West and West Midlands, in particular Liverpool, Manchester and Birmingham.  Previously these hotspots were contained to city centres but our 2011 data shows they are now spreading out to more rural areas within these regions.

One trend that did continue from 2010 is that the worst areas of the UK overtook the worst areas of the US in terms of the proportion of accidents involving bodily injury.

There was a 9% increase in the average cost of small  third party bodily injury claims reported to insurers.

Third party damage claim amounts increased by 12.5%, a dramatic rise from 2010. The data also points to a slowing down in third party property damage settlement rates.

For the 3rd year in a row PPO awards that were settled in the UK motor insurance market totalled around the 70 mark, suggesting that a ‘mercury level’ has been reached.

There is evidence of stabilisation in the average PPO awards. The average age of PPO claimants increased only slightly from 34.4 years in 2010 to 35.2 years in 2011. Consistent with this increase, there was a slight decrease in future life expectancy in the 2011 data from the previous year reducing from 41.5 years to 40.4 years.

The average size of an annual PPO payment in 2011 was £78,700– almost identical to the 2010

 

 

Institute and Faculty of Actuaries publishes conflicts of interest package

The Conflicts of Interest Working Party of the Institute and Faculty of Actuaries has now put the final touches to its package of conflicts of interest material.

The full package of material, which includes Actuarial Profession Standards (APSs) for pensions (APS P1) and life actuaries (APS L1 – which came into force on 1 October 2011), a guide for actuaries on conflicts of interest and a note for pension scheme trustees, can be found here.

The Working Party is also planning information evenings to explain how the conflicts of interest package will operate and to discuss the potential implications and practical effects it may have on members. The sessions are designed to help prepare members and firms in advance of the full regulations implementation date of 1 July 2013.  The dates and venues are:

•12 July – London, Staple Inn: 5.30–7.00pm

•19 July – Edinburgh, Maclaurin House: 5.30-7.00 pm

•2 August – York: Aviva Office, Board Room 6th floor, Wellington Row, York, YO90 1WR: 5.30-7.00pm

These initial evenings are open to all members of the institute but are primarily targeted at CPD co-ordinators and professionalism committee members.   More events targeted at members in general will be held during October to December 2012. Further information will be made available closer to those dates.

Members are entitled to claim up to one and a half hours of CPD for their participation in one of these evenings. Please remember to sign the attendance sheet to verify your attendance and to record it in your on-line CPD record.

If you plan on attending one of the above events, it would be appreciated if you could RSVP to adam.eggleton@actuaries.org.uk. Drinks and nibbles will also be provided.

 

Thought Leadership Lecture: The Challenge of Climate Change

A lecture on the implications on climate change faced by financial institutions will take place at Staple Inn Hall this month. Starting at 3.30pm on Tuesday 3rd July the event will finish at 6.30pm with a chance for guests to ask questions to speaker Professor Sir Brian Hoskins.

Climate change due to human activities is a challenge to scientists, engineers, industry, the financial sector, policy makers and society in general. A discussion will be given of the approach by the UK Climate Change Committee and the implications of the acceptance of that advice.

Sir Brian Hoskins is Director of the Grantham Institute for Climate Change at Imperial College and Professor of Meteorology at the University of Reading. He is currently on the Board of the Met Office and chairs its Scientific Advisory Committee, and he is a member of the UK Committee on Climate Change.

For more information please contact Staple Inn Hall on 020 7632 1498 or email eventmanagement@actuaries.org.uk