Tag Archives: The Actuarial Profession

Joint Networking Evening: Trading Longevity Risk – hosted by PRMIA and The Actuarial Profession

When: 17th December 2012, 17:30 to 20:30

Where: Staple Inn Hall, London WC1V 7QJ

A helpful event where delegates gain a range of perspectives on the emerging markets for trading longevity risk.

Panellists will present their views on a number of issues such as: overview of the market and its economic function, key risks involved and challenges, emerging themes, the role of regulation and Solvency II and perspectives from risk sellers and buyers.

Speakers include:

  • Douglas Anderson, Hymans Robertson LLP
  • Pretty Sagoo, Deutsche Bank AG
  • David Epstein, Aviva
  • Emma McWilliam, Milliman

To book your place email eventmanagement@actuaries.org.uk

Global insurance prices continue to rise

Global insurance prices increased by 0.9% in the third quarter of 2012, continuing the gradual increases that began in the second half of 2011

The latest quarterly insurance market briefing by Marsh, also found a 1.4% increase in renewal rates in the third quarter. This was the same level as seen in the second quarter, which Marsh said was evidence that price increases might be stabilising.

Andrew Chester, chief executive of the firm’s placement brokering division Bowring Marsh, said: ‘While the global insurance market continues to be in a state of clear transition, the results for individual insureds vary significantly. With capacity and appetite for well-managed risk still strong, insureds are still able to achieve favourable results on renewal in many lines of business.’

Insurance rates for financial and professional business rose by an average of 1.9% for renewals in the third quarter. In particular, concerns over the eurozone crisis among underwriters saw financial institutions in every major eurozone country experience increases in their liability insurance rates.

Casualty insurance rates rose by an average of 1.2% globally – higher than the 0.8% increase seen in the second quarter of 2012. However, a lack of natural catastrophes so far this year has helped to stabilise property insurance rates.

Jane Curtis, Immediate Past President of the Institute and Faculty of Actuaries comments on the introduction of auto-enrolment in the UK

After the recent introduction of auto enrolment a system which could see up to 11 million workers automatically enrolled into a workplace pension, Jane Curtis President of the Institute and Faculty of Actuaries  comments on the  ‘positive step’ to encourage people to save for their retirement

“Auto-enrolment is a positive step forward in the battle to encourage individuals to save for their retirement. However by effectively helping individuals to save without realising it there is the danger that they may sleepwalk into retirement without enough money in their pension pot to fund the lifestyles that they want to maintain when they leave work.

“To illustrate this; the minimum contribution for NEST will be 8% per year by 2018.  For an individual earning £20,000 a year and assuming a 5% employee and 3% employer contribution for 20 years the NEST calculator assumes that the pension pot will be worth £47,000 in today’s money, which equates to a tax free lump sum on retirement of £11,700 and an annual income for the rest of life of £1,600. Adding this to the present basic state pension of just under £6,000 a year and someone earning £20,000 a year would experience a significant 65% drop in annual income.

“Of course there are many factors that will affect the value of an individual’s pension pot over time, but what these figures illustrate is that it is as important for each individual to be engaged in saving for their future as it is to automatically enrol them into doing so. This is a communication and education challenge for both the Government and employers and one where the expertise of the architects of pension products, such as actuaries, will have a key role to play.”

Launch of the first Actuarial Research Centre

50 business leaders, academics and MSPs met at the Scottish Parliament to celebrate the opening of the new Actuarial Research Centre (ARC) earlier this month.

Mark McDonald, MSP welcomed the audience and outlined some of the areas where the profession has already been interacting with politicians. He also said that they would welcome any input from the profession, which aligned to their public affairs objective.

The centre is set up in the same month that marks 250 years since the birth of actuarial work in life offices.  The first Director of the ARC, Professor Andrew Cairns spoke of his vision for the centre, collaborating with business, developing academic disciplines and researchers that will be an asset to industry.

REC flags need for clarity and consistency on taxation rules with HM Treasury

The Recruitment & Employment Confederation (REC) has been working with HM Treasury on ongoing taxation concerns for the UK recruitment industry.

Their latest appeal to the Treasury highlights the need for clarity in the way that taxation rules are applied to the recruitment sector – particularly with regards to travel dispensation schemes and to ensure that there is a level playing field for all members to operate in.

They are also continuing to engage with HMRC on improving IR35 rules for self-employed contractors. One major concern surrounds proposals for moving all ‘controlling persons’ onto the payroll which would undermine our economy’s valuable labour market flexibility.

The REC’s message to government is that to successfully use contractors there must be systems in place to manage contracts and staff, rather than a restrictive, one-size-fits-all regulation.

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