Act Sept14

The magazine of the actuarial profession
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SEPTEMBER 2014
theactuary.com
Interview:
Lord Robert
Winston
The di culties of
prediction
GeneraI
insurance
Dealing with the risk
of ination
International
New strategies for
Africas growing
economies
Soapbox
Environmental
impact of fracking
of the actuarial profession f
MONEY IN
THE PIPELINE
Financing renewable energy assets
p01_september_cover.indd 1 26/08/2014 10:33
2
Appointments
THE ACTUARY May 2013
www.theactuary.com
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p02_ACT.09.14.indd 2 26/08/2014 11:30
www.theactuary.com
SEPTEMBER 2014
MORE CONTENT ONLINE
Additional content can be
found at www.theactuary.com
WRITERS OF THE MONTH
Chris Lewin wins a 50 book token for
his feature on risk initiatives,
courtesy of SIAS
AT THE BACK
33 Books
Colin Czapiewski on Leo Goughs
TheCon Men: A History of Financial
Crime and the Lessons that you
canLearn
34 Puzzles
Try the latest cryptic crossword and
Mensa puzzles
37 Student
Jessica Elkin spots the light at the end
of the tunnel following the exams and
explains what to expect when you
reach that point
38 Actuary of the future
Felix Mantz of Towers Watson
ONLINE
Investment: Volatile markets
in India
Chinnaraja Chendur Pandian discusses a
copula approach to Indias volatility index
Review: R in Insurance
Markus Gesmann and Andreas Tsanakas
report on the recent 2014 conference.
Visit: www.theactuary.com
FEATURES
18 Interview: Robert Winston
Angus Macdonald and Sharon Maguire
nd out if the world-renowned
scientist, Labour party peer and TV
presenter deserves his reputation for
being provocative in his views
22 Environment: Money in
the pipeline
Theresa Ruhayel looks at nancing
renewable energy assets
25 Careers: Salary survey
Jonny Plews reports on the results of a
recent salary survey of actuaries in Asia
and how IFoA Fellows compare
28 Risk: Bridging the divide
Chris Lewin looks at the risk initiative
between the actuarial and civil
engineering professions
30 GI: The hidden risk of ination
Graham Fulcher asks if building an
allowance for ination into projections
based on historical data is an overly
relaxed approach
32 International: Africa rising
Tavaziva Madzinga reports on Africas
fast-growing economies and what this
means for savings and insurance on
the continent
UP FRONT
9 SIAS events
10 IFoA news
14 People/society news
16 General insurance news
17 Industry news
OPINION
5 Editorial
Kelvin Chamunorwa reects on the
current spate of global conict and
considers its cost
6 Letters
Solvency II fears, value for money
and communication woes
7 Presidents comment
Diversity in research is key to
professional survival, says
NickSalter
8 Soapbox
Francis Lobo outlines the
environmental impact of fracking
18
With returns of more than 8% in the
post-construction phase, lower-bracket
risk-takers are entering the market
22
September 2014 THE ACTUARY 3
Contents
COVER: NEIL WEBB
28
p03_sep_contents_FINALCT.indd 3 26/08/2014 10:53
4
Appointments
THE ACTUARY May 2013
www.theactuary.com
www.hannover-re.com
* million civil aviation flights take place every
year worIdwide- equivaIent to roughIy one
flight every second
30.5
*
We know our markets.
p04_ACT.09.14.indd 4 26/08/2014 11:32
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Opinion
Editorial
The other day my colleague asked in earnest: What is happening to this world?
It was an acknowledgment of the number and scale of current conicts. Lately,
mainstream media has made for depressing consumption at best, horrifying at worst.
Amidst the onslaught of bad news, it is easy to become desensitised to the plight
of fellow human beings the 300 passengers and crew who lost their lives when
Malaysia Airlines ight MH17 was shot down over Ukraine in July; and those living
in constant fear for their lives in other troubled areas, many of whom are our peers
in the profession.
Some are drawing parallels between Europe and Russias tension over Ukraine,
the civil war in Syria and turmoil elsewhere in the Middle East with the onset of the
First World War 100 years ago.
Conict has an economic cost. In the recent Global Peace Index report, it was
estimated that the economic impact of violence was $9.8trn over the past year
11.3% of global GDP. Had there been 25% more peace on that measure, the global
economy could have achieved the annual amount
required to mitigate the eects of climate change.
The cost of the Millennium Development Goals to
improve health and education and alleviate poverty
would also have been met.
Owing to recent ight disasters, the war risk
insurance industry hasnt
been spared in what is
expected to be the most expensive year in the market
since 9/11. Claims will take years to settle, exposing the
ultimate loss to future ination.
This month, Graham Fulcher highlights ination
in the Western world as an emerging risk to insurers
(p30) and Tavaziva Madzinga shines a spotlight on the
insurance market in Africa, a region which has had its
challenges with stability and is now growing rapidly on
many measures (p32).
Im optimistic that globalisation makes another
world war unlikely, while fully aware that the
causesof current strife are complex. We can estimate
the nancial impact of war, but its ultimate
price the loss of human life is one that we
cannotquantify.
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Circulation 25,331
(July 2013 to June 2014)
Kelvin Chamunorwa reects on the current spate of
global conict and considers its cost
editor@theactuary.com
The economic impact
of violence was $9.8trn
over the past year 11.3%
of global GDP.
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Kelvin Chamunorwa
Editor
ng to recent ight disasters, the war risk
nce industry hasnt
pared in what is
r in the market
tle, exposing the
ghts ination
sk to insurers
spotlight on the
hich has had its
owing rapidly on
kes another
hat the
e can estimate
mate
hat we
Internet
The Actuary:
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Features editors
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Richard Purcell, life,
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Richard Schneider, life,
SolvencyII, mortality/longevity,
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Helen Lau, GI, reinsurance,
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Editorial advisory panel
Peter Tompkins (chairman),
Naomi Burger, DavidCampbell,
MatthewEdwards, MartinLunnon,
SherdinOmar, RichardPurcell,
NickSilver, Andrew Smith
p05_Aug_editorial_FINALCT.indd 5 26/08/2014 10:56
THE ACTUARY September 2014 6
www.theactuary.com
MORE LETTERS ONLINE
More letters are available online at
www.theactuary.com/opinion
Opinion
Letters to the editor
The editor welcomes readers letters but reserves the right to edit
them for publication. Please email editor@theactuary.com.
The deadline for receiving letters for the October issue is
17 September 2014.
There were some excellent points
raised in the article on CA3 (The
Actuary, August 2014), with
which I wholeheartedly agree.
Iam on my third attempt and,
although Ive attended the
expensive exam counselling, Im
still not clear on why Im failing.
Id really like to know why it
takes three months to mark this
exam. Eectively this means that
failing CA3 delays qualication
for six months, as you then need
to wait another three months to
nd a space on another sitting.
If I worked for the IFoA, Id
keep the pass rate as low as
possible in order to keep forcing
people to cough up the
extortionate exam fee.
Andrew Wilson 15 August 2014
See article on CA3 on page 11
In response to the letter from
Mr Rashbrooke on subscription
rates (August 2014).
The IFoA aims to deliver value
for money in all its activities.
Membership subscriptions not
only pay for the core
membership of the IFoA, but also
provide a wide range of other
services and benets including
regular newsletters, an
increasing range of free events,
continuing professional
development (CPD) courses,
forums and discussion groups,
the International Actuarial
Careers Network and
The Actuary magazine.
Our goal is to deliver an
equivalence of service to all our
members wherever they are
located, by means such as
technology and support for
regional volunteer groups. We
have made many strides towards
this goal, but recognise that there
is more to do.
Council reviews the level of
subscriptions every year taking
into account our nancial
forecasts, changes in the services
provided such as the recent
changes to the CPD scheme
and the blend of our membership
categories.
We have not increased the
Fellow subscription rate since
2007, a reduction in real terms of
152, thereby providing
increased value for money. The
reduced rate subscription has
also remained static at 69 for
that period.
The changes that are being
introduced to the reduced rate
subscription from 1 October 2014
are twofold. First, we have
introduced a new retired
category that is linked to the
2014/2015 CPD Scheme.
Members can be classied as
retired if they are not in paid
work that relies on their actuarial
training and experience, or on
their membership of the IFoA.
Second, members may also
apply for a reduced rate
subscription if their total income
from all sources, now including
pensions, alongside paid work
and income from investments,
is less than 30 times the full
subscription rate applicable to
them. The key principle about
the income-based reduced rate
subscription, is to help those
members least able to aord the
full subscription rate.
The previous exclusion of
pensions from the assessment
of income gave rise to
inconsistencies and this has now
been corrected.
Derek Cribb,
IFoA chief executive
15 August 2014
Learners and learned
In times of change learners inherit the earth while the
learned nd themselves beautifully equipped to deal with
a world that no longer exists Eric Hoer.
That could be the epitaph to both the life assurance
industry and dened benet pension schemes. In the
1990s the former was caught out by the conation of two
events that its management had no experience of: the
death of ination and the transfer of power from the
providers and professions to the consumers.
The industry would have been better run by a set of
wise men with no prior knowledge of the business. With
the latter, a noose had gradually been tightened round the
employer by the progressive improvement in the rights of
early leavers and the way surpluses were dealt with. In
both cases, actuaries should have been more proactive in
alerting their principals. Alas, senior actuaries were
learned not learners.
Nearly all men can stand adversity, but if you want to
test a mans character, give him power. Abraham Lincoln.
Sadly this is the cause of the problems of the Equitable,
the Independent, Northern Rock and the Royal Bank of
Scotland. Better to remain silent and be thought a fool,
than to speak and remove all doubt. Abraham Lincoln.
OK, Abe, I will stop, but let me make a nal point.
Will Solvency II really be a panacea? It seems to me that
at a basic level it makes insolvency
more likely because of the
depletion of net assets by the
cost of building complex
models, encouraging blind
belief in its output when a
dose of common sense is all
thats required.
Surely it is far better to
create an environment in
which prudent attitude is
taken to risk management and
there is congruence of interests
of the shareholders, senior
management and traders?
Icki Iqbal 15 July 2014
Communication woes
IFoA aims to deliver value for money
ALAMY
p06_sep_letters_FINALCT.indd 6 26/08/2014 10:57
7
www.theactuary.com
Opinion
Presidents comment
Research and thought leadership are crucial
to the long-term sustainability of the actuarial
profession. Because of the hard work of those
member volunteers who put in the time and
eort to undertake such work, we have built
up a strong knowledge bank for the benet of
a diverse range of interested parties: from our
members to others in society such as
academics and public policy makers.
Research informs what we do as practitioners
and how we do it.
It drives our communications with policy
makers and provides the evidence base and
voice of the IFoA. It helps to improve our
professional standards and full our royal
charter obligations.
I believe that my theme of diversity is
relevant to our research eorts in two areas.
Firstly, by working across practice areas we will
strengthen our actuarial expertise by
encouraging greater diversity in the subject
matter that we explore.
Secondly, by adopting a global outlook on
research topics, we can ensure that our high
quality work remains relevant to the global
issues aecting our members no matter where
they are located around the world.
To help to facilitate this progression our new
Research and Thought Leadership Committee
(RTLC) has been established. It was designed to
complement the commissioning of research by
the practice boards, either directly or through
working parties.
We encourage cross-practice analysis and
identify any gaps in our research programme
where we need intellectual capital to further
actuarial science or inform the key public policy
debates of the day. Themes it has identied for
further investigation include new economics
and cyber risk.
Some of you may have noticed that we
recently advertised for a lay chair for the RTLC
and the selection process is underway. It is
expected that the successful candidate will
bring an external and dierent perspective to
actuarial science, complementing the expertise
of our members and broadening the focus of
the committee.
The IFoA already sponsors and co-sponsors
research by external bodies and academics to
bring other perspectives to our knowledge
bank. The Actuarial Research Centre, the
Limits to Growth Research from 2013 and
sponsored research by the Pensions Policy
Institute are all examples of this. We also
encourage these external inuences to join us
at the many events that we run to aid our
members in accessing the latest thinking on a
variety of relevant topics, from dementia to
holistic balance sheets.
By including these within our research and
thought leadership programme we are
encouraging access to diverse thinking and a
broader range of research.
I would encourage all of you to remain up to
date on all these developments not only for the
area in which you practice,
but also other areas.
There is real value in
the work that is produced
in all of the practice areas,
and it is encouraging to
see more and more
cross-practice research
being produced like the
recent examination of the
social care cap by the Pensions and Long Term
Care Working Party.
Our research is disseminated in a variety of
ways: through the media, member newsletters,
the website and at events. We will be running
three key events, all of which oer members
access to a diverse breadth of thinking on key
topic areas.
From 15-17 September, we are hosting the
International Mortality and Longevity
Symposium in Birmingham. Academics, policy
and decision makers and members from
around the world will hear from sharp thinkers
with expertise on mortality and longevity.
The GIRO conference is being held at the
Celtic Manor resort in Wales from 23-26
September. This years theme is innovation
and, in addition to the sharing of research and
experience, there will be consideration and
discussion of future opportunities for the roles
of actuaries.
We also have our autumn lecture on 1October
in Edinburgh, where one
of our
newly-elected Honorary
Fellows, professor Carol
Jagger, will share her
research and insights on
healthy and unhealthy
life expectancy. I am keen
that we all undertake
continuing professional
development because we want to stay up-to-
date and develop our own knowledge banks,
and not because it is a requirement or a chore.
There are plenty of opportunities to get
access to the research output. Sharing
knowledge and research across sectors and
regions is benecial to us all. Encouraging
further diversity in this way will, I hope you all
agree, be of even greater benet. a
NICK SALTER
Diversity in research is key to
professional survival, says Nick Salter
It is encouraging to
see more cross-practice
research being produced
like the examination of
the social care cap
Nick Salter is the president
of the Institute and Faculty
of Actuaries
Adopting an
open outlook
p07_Sept_pres_comment_FINALCT.indd 7 26/08/2014 12:02
www.theactuary.com
8 THE ACTUARY September 2014
Opinion
Soapbox
The basic principles of fracking or
hydraulic fracturing have not changed since
the 1860s when a brave man dropped an
explosive charge down a well to fracture
hard rock and stimulate the release of
oil or gas.
Today, more controlled methods use
high-pressure water, chemicals and
proppant, such as sand or a ceramic
material, to break up rock formations and
keep the gas or oil owing into the well.
A more recent development has been to
combine hydraulic fracturing with
horizontal drilling, again an existing
technology, which has allowed the
development of oil and gas resources which
would otherwise not be commercial.
The implementation of these technologies
on a large scale comes with risks that need to
be understood and mitigated. Most risks
associated with unconventional wells are,
however, similar to those for conventional
wells, but there is particular public sensitivity
to fracking, especially in places without any
signicant experience of drilling.
For either form of drilling, the risks range
from vehicle accidents at the frequency end
of the scale to infrequent but potentially
catastrophic events, such as blowouts or
drinking water contamination, with latent
risks to human and animal health.
Environmental pollution is a major
exposure and, if not well managed, could
lead to intensied opposition to any
further exploitation of the technology,
political backlash and draconian
regulatory requirements.
Much of the concern about the
environmental impact of fracking relates to
the many chemicals that are added to the
frac water and that should not, but could, get
into drinking water aquifers as a result of a
blow out or accidental seepage.
From an insurance point of view if, in 10 or
20 years, water from fracked wells was
discovered to have slowly but widely
contaminated drinking water supplies with
adverse health eects, the liability claims
would be unquantiable. Such pollution
claims could breach the limits on the
operators or contractors policies and leave
large uninsured losses against companies
with varying degrees of nancial resilience.
Reducing pollution
The key to minimising water pollution risks is
good well design, good operating, maintenance
and abandonment practices. In particular,
designing the well creating a minimum of two
barriers, to ow between any formation that is
capable or potentially capable of owing into
subsurface drinking water aquifers or the
surface environment, will result in a dramatic
reduction in risks associated with the well.
Other environmental risks include
greenhouse and other gas emissions, the
release of chemicals and the eect of dust,
smells, noise and light. Air pollution should
not be dramatically
dierent from
conventional energy
extraction, but lower
standards, mistakes or
insu cient caution
could result in
substantial losses.
There are also risks
related to the handling,
storage, transport,
treatment and disposal
of the residuals from fracking activity which
need good management.
As we have seen from reports from
Oklahoma, there are also seismic risks
associated with fracking. The likelihood of an
earthquake depends critically on whether the
area is tectonically stressed in the rst place.
Water injection can increase underground
pressures, lubricate faults and cause
earthquakes a process known as injection-
induced seismicity. Those caused by fracking
are almost always very small, under magnitude
3.8, and often unnoticed, but injecting large
quantities of water in the wrong place can
cause bigger events.
None of these risks is completely exclusive to
fracking, and there is extensive good practice
guidance available. Fracking, however, is likely
to be deployed across the world. Any industry-
wide structural deciencies in design,
operations, maintenance or abandonment
practices could result in
more widespread
incidents that fuel
resistance globally.
Ultimately the worlds
growing demand for
energy and diminishing
conventional reserves
suggest a strong,
long-term case for the
continuing recovery of oil
and gas from shale.
The experience in the US and elsewhere also
shows that the extent to which fracking will
become viable and acceptable will depend in
large part on how well risks are managed
and mitigated.
Francis Lobo is head of energy engineering, Catlin
FRANCIS LOBO
Fracking the
manageable risk
Francis Lobo outlines the
environmental impact of fracking
If water from
fracked wells widely
contaminated drinking
water supplies, the
liability claims would
be unquantiable
p08_sep_soapbox_FINALCT.indd 8 26/08/2014 10:59
SAM KESTEVEN / SAM PEACH
www.theactuary.com
MORE EVENTS ONLINE
For details of events, visit
www.sias.org.uk
SIAS IS ON TWITTER!
Follow us on @SIAScommittee for latest
news on meetings, socials and more!
SIAS IS ON FACEBOOK!
Check out the SIAS Facebook page for
photos from the latest social events
MONDAY 13 OCTOBER SOCIAL EVENT
Welcome Drinks
Staple Inn Hall
High Holborn
London
WC1V 7QJ
Drinks 5.30pm
Presentations
6.00pm
SIAS would like to welcome new members of the Institute and Faculty of Actuaries to a cheese
and wine evening at Staple Inn Hall. This event is a great way for new members to meet fellow new
joiners and to learn more about the profession, the qualication process and SIAS, whilst enjoying
a selection of ne wines and delicious cheeses.
The tasting will begin at 5.30pm and will be followed at 6.00pm by a series of brief talks covering
the education process, SIAS and business skills.
For those of you not so new to the profession, please encourage any new joiners from your
company to attend. There is no need to register in advance for this event.
TUESDAY 21 OCTOBER JUBILEE LECTURE & SIAS AGM
Jubilee Lecture and
SIAS AGM
Staple Inn Hall
High Holborn
London
WC1V 7QJ
Refreshments 5.30pm
SIAS AGM 5.45pm
Lecture 6.00pm
Speaking at this years Jubilee Lecture will be Steve Webb, minister of state for pensions, and
Steve Groves, CEO of annuity writer Partnership.
The UK pensions landscape has undergone a series of radical reforms in 2014, with retirees now
granted greater access to their pensions pots and faced with more choices as to how to invest
and spend their pensions. With the removal of compulsory annuitisation for many investors, the
UK annuity market is undergoing a major overhaul as providers seek to remain competitive in the
face of shifting market conditions.
Our Jubilee Lecture speakers will oer two dierent perspectives on the changes made to the
UK pensions market, their impact to date and going forward. Steve Webb, as pensions minister in
the coalition government, has overseen the creation and introduction of the new pensions rules.
Steve Groves, as CEO of one the largest UK annuity writers, has rst-hand experience of dealing
with the commercial eects of the rule changes.
Refreshments will be served from 5.30pm and the lecture will
follow the SIAS AGM, which will run from 5.45pm to 6.00pm.
There is no need to register in advance for this meeting, and non-
members are welcome.
There will be live tweeting throughout the talk via #SIASOct14.
Please get involved with any comments or questions for
the speakers.
FRIDAY 21 NOVEMBER SOCIAL EVENT
Annual SIAS Dinner
Save the date!

Save the date for the Annual SIAS Dinner, which will be held at The HAC on Friday 21 November.
Tickets will go on sale on 13 October at 9am.
Look out for further updates over the coming weeks.
p09_sep_sias.indd 9 26/08/2014 11:00
10
www.theactuary.com
THE ACTUARY September 2014
News
IFoA
Upfront
NEWS UPDATES FROM THE ACTUARIAL PROFESSION
Its always a pleasure to get together with IFoA
members at our annual residential conferences.
Iam disappointed therefore that I am not able to
attend the GIRO conference this year. But on
reviewing the programme of speakers one of our
most interesting and diverse yet, which includes
Bank of England governor Mark Carney and author and philosopher
Alain de Botton I am very much looking forward to seeing its outputs,
which will be available on the IFoA website after the event.
One of the great things about GIRO is that it attracts attendance from
across the non-life community, from around the world and from outside
the IFoAs membership. Bringing such a large, diverse group of
professionals together goes a long way towards promoting cross-practice
learning and the spread of new ideas, which in turn facilitates the
development of actuarial research and thought leadership.
Non-life and here I am including professionals who may be working
in a variety of elds such as resource and environment, investment and
health and care is the most rapidly expanding area where the actuarial
skillset is being put to use. Looking specically at the IFoAs general
insurance (GI) community, student membership is up over 60% in the
past three years and GI members are now based in over 70 countries.
Over 200 people have passed their GI Fellowship exam within the past
year and GI student membership is now at 27% of the IFoAs total
student population. GI is our third largest practice area and the
fastest growing.
On that note, I would like to encourage all IFoA members to look
outside their current eld of work and see what they can learn from
actuaries working in other sectors. Lets not get hung up on practice-
specic mentality: think of your actuarial skillset and how it can be used
in a wider business context. One of the IFoAs key strengths is the
diversity of its membership, another being the community
feel which is amply demonstrated by our GI members.
But there is nothing to be gained from the silo
approach. We must remember to reach out, across
the whole of our membership and beyond, to
moveforward.
The GIRO conference is taking place on 23-26
September at Celtic Manor Hotel, Newport.
www.actuaries.org.uk/events/residential/
giro-2014
Follow the event on Twitter at #IFoAGIRO2014
A diverse
community
Opinion
CEOs comment
Derek Cribb looks forward to GIRO and
stresses the importance of diversity
DEREK CRIBB
Derek Cribb is the
chief executive of
the Institute and
Faculty of Actuaries
Although many of us can expect to experience
an extended old age, it is likely to be with longer
periods of diminished mobility, cognitive
function and other complex health conditions.
This presents a challenge for the ageing
population, their families and carers. For
policymakers, providers of health and social
care services and nancial services companies
seeking to support any personal nancial
planning, there are a number of uncertainties
that raise questions.
Professor Carol Jagger is the AXA professor of
epidemiology of ageing at Newcastle University
and is an acknowledged authority in the UK on
the demography and epidemiology of ageing.
As a recently elected Honorary Fellow of
the IFoA, she will address the Autumn Lecture
on the complex challenges facing extended
longevity and what is known about ageing
trends in modern societies, including research
on healthy and impaired life expectancy and
ageing population projections.
Chaired by the IFoAs new president, Nick
Salter, the evening will also include the
presentation of IFoA Honorary Fellowships to
both Jagger and Sir Philip Mawer.

This event will take place at the Royal College
of Physicians in Edinburgh on 1 October.
To book your place, visit tinyurl.com/ojjohob
Autumn lecture
on longevity
Chinese microsite to launch
Autumns arrival heralds the launch of our
brand new China microsite.
It is specically designed to increase our
visibility in China, as there is a huge benet in
our being able to communicate in Chinese with
a market of such strategic importance.
As a profession we are committed to
increasing international visibility and
engagement with a key focus on China and
South-East Asia.
The new China microsite is but one of the
ongoing improvements we are making to our
digital services and a key rst element of our
overall digital strategy, to enable users and
search engines to locate our content.
p10-13_Sept_IFoA_news_FINALCT.indd 10 26/08/2014 11:07
11
www.theactuary.com
September 2014 THE ACTUARY
CA3 (communications): the way forward
By Trevor Watkins,
IFoA director of education
Further to the article on the student page in the
August 2014 edition, I would like to clarify some
of the issues raised in respect of the core
applications CA3 (communications) exam.
The purpose of CA3 is to test the candidates
ability to communicate actuarial matters in a
manner that is acceptable to a non-actuarial
audience. As the article rightly points out,
actuaries are not usually known for their good
communication skills. However, these skills are
essential for business professionals, and
therefore form a key part of our qualication.
CA3 is currently tested via an online
application. With more than half of our student
members based overseas, we need to ensure
that students are given consistent and fair
treatment during their assessment. Further,
there is the issue of scalability; more candidates
can be assessed in an online session. Candidates
now record their presentation online rather
than having to wait in turn at a venue and
indeed, when given a choice, many candidates
deliberately opted for the online assessment
over a face-to-face version. The increased
capacity the online mode provides has
eliminated waiting time. Indeed, a recent exam
was cancelled due to lack of take-up.
Presentations are performed in front of a
webcam and there are plenty of opportunities
for the candidate to demonstrate their abilities
to make their presentation engaging. The
examiners do appreciate that this is not the
same as presenting live. Furthermore, they will
not penalise candidates for any distractions that
occur during their recording; this also happened
during the face-to-face presentations, when
occurrences such as re alarm tests would
interrupt a recording.
One major benet of the online application is
that students can play back recordings they
make. This is a powerful tool for self assessment
and preparation. There are a number of other
tools the students can access via the application,
such as the modules that explain the criteria for
passing CA3, as well as a bulletin board where
candidates can post questions and discuss CA3.
We encourage candidates to make full use of
these tools to maximise their chances of passing.
Other resources available include our
guidance documents on the pass criteria, which
can be found on the CA3 page of the website.
They explain, for both the presentation and
written question, how and where marks are
awarded. They are based on the detailed and
objective marking schedules to which the
markers work. We also work closely with the
Actuarial Education Company (ActEd) and
would encourage candidates to use the ActEd
course as part of their preparation.
The entry criteria for the CA3 examination
were introduced to ensure candidates
familiarity with the technical material. The
questions are based on the concepts from CA1,
which, in turn, draw on material from the core
technical (CT) subjects.
Lastly, as the article says, CA3 is under review.
At an initial meeting of employer
representatives, they agreed that
communication skills need to be assessed. From
reviewing a sample of past candidates
submissions, the group was satised that the
pass standard set was appropriate. However, the
low pass rate needs addressing and students
need more support and encouragement in their
preparation for CA3. Much of this can be done at
employer level but we would welcome any
suggestions and feedback from employers and
students as to how the IFoA can legitimately
improve pass rates.
We are looking at ways in which we can
improve the experience of using the application
and have taken steps to improve it since it was
rst introduced. Less than 10% of our student
population use a Mac or have rewall issues
through their employer and we will always work
with them to resolve any problems. At a recent
Student Consultative Forum meeting, we
informed the group that we were introducing a
new Moodle-based virtual learning
environment (VLE), which is web-based and
therefore can be accessed by all students. We
will look to move CA3 onto this platform once
the review has taken place.
Member of Council Kathryn Morgan was
one of a select group asked to test the IFoAs
new website, launched this month. Here she
gives her opinion on the usability of the site
and its look and feel
The rst thing that struck me is that the newly
designed website really helps to display the
information that I am looking for very clearly.
This in turn meant that I found it extremely easy
to use and navigate, something that I think is
very important for websites.
I tested the new website on my tablet so that I
could see how the new design worked. I really
liked how it automatically adapted to my tablet;
its a really responsive design.
I think the inclusion of the new sliding left
and righthand navigation is a great new feature
to have included and one that is very intuitive
and simple to use. It is this feature in particular
that made it very easy for me to nd the
information that I wanted.
Five minutes with Kathryn Morgan
Kathryn Morgan: site is easy to use and navigate
Our refreshed website is a really fantastic step
forwards towards meeting the rst objective of
the IFoAs digital strategy, namely enabling user
and search engines to easily nd our content.
The refreshed design of the website is the
perfect springboard for the following phases of
the digital strategy that are to happen by the
years end, such as the launch of our new virtual
learning environment (VLE) as well as
improvements to the search facility.
As an actuary based in Manchester, the VLE
and the content it is to contain will be
invaluable to me as a means of staying abreast
of actuarial developments. The search project
that is to follow is also incredibly exciting as it
will seek to make over 10,000 documents easier
to nd. This will vastly increase the ease of
access to all manner of information at the IFoAs
disposal to fellows, members and students alike.
The launch of the rst phase of the website is
a hugely exciting start towards a much
improved digital oering.
12
www.theactuary.com
News
IFoA
NEWS UPDATES FROM THE IFOA
Anthony Hugh Carus FIA
At a Disciplinary Tribunal Panel hearing on
24June 2014, the investigation actuary laid the
following charge of misconduct against
Anthony Hugh Carus (the respondent).
Being at the material time a Fellow of the
Institute and Faculty of Actuaries:
1. In November 2012, when contacted by the
complainant, a solicitor representing a
business (in sequestration) and the trustee in
sequestration in legal proceedings against the
Financial Services Authority (FSA) in the
Upper Tribunal (Tax and Chancery Chamber),
you prepared a report in those legal
proceedings which was not expected by the
complainant, and you thereafter:
(a) contacted the FSA to inform it that a draft
report you had created in relation to the
ongoing legal proceedings was in existence;
(b) your actions were intended to cause
embarrassment to the complainant;
(c) in doing so, you acted in a vexatious and/or
malicious way.
2. In your actions at 1(a) (c) above, you failed
to maintain and observe the standards of
conduct expected of a member, in breach of
principles 1, 2, 3 and 5 of the Actuaries Code
and, in any event, constituting misconduct in
terms of Rule 1.6 of the Disciplinary Scheme
of the Institute and Faculty of Actuaries, being
conduct falling below the standards of
behaviour, integrity, competence or
professional judgement which other
membersor the public might reasonably
expect of a member.
In respect of charge 1(a), the respondent had
accepted, on reection after the event, that it
had not been appropriate for him to have
contacted the FSA and had admitted that to
have done so had been a mistake.
The panel found that, in the circumstances
of this case, the communication which the
respondent had with the FSA constituted
misconduct in terms of Rule 1.6 of the
Disciplinary Scheme.
In respect of charges 1(b) and 1(c), the panel
did not nd these charges proven from the
evidence which had been submitted, and so
these charges were dismissed.
The panel imposed the following
sanctions inrespect of charge 1(a) which it
had found proven:
a reprimand;
costs: the panel determined that the
respondent should make a payment of 5,000,
inclusive of VAT, towards the costs of the
Institute and Faculty of Actuaries.
Balakrishnan Subramaniam Iyer (student)
At a Disciplinary Tribunal Panel hearing on
1July 2014, the tribunal considered charges
that the respondent had cheated on the
Institute of Actuaries of India CA1 examination
and that his behaviour had been dishonest.
The panel found the facts proven on the
respondents admission.
In respect of the charge of dishonesty, the
panel also found that charge proven by
applying the legal test of dishonesty to the
evidence submitted.
The panel found that the respondents
actions were in breach of Principle 1 of the
Actuaries Code and, in any event, constituted
misconduct in terms of Rule 1.6 of the
Disciplinary Scheme.
As a result of the nding of misconduct, the
panel imposed the following sanctions:
suspension from membership of the IFoA
from 1 July 2014 to 3 August 2015.
costs: having considered the conduct of both
parties to the case, and taken into account the
respondents submission on costs, the panel
considered it appropriate to make an award of
costs of 5,104.20 against the respondent and
to require that they be paid by no later than
31December 2014.
Full reports on the above cases, including the
panels reasons, can be found on the IFoAs
website at www.actuaries.org.uk
Disciplinary Tribunal Panel hearings
SHUTTERSTOCK
Michael Tobias FFA
On 21 May 2014, the Adjudication Panel
determined that the respondent had failed to
produce su cient records to prove
participation in continuing professional
development (CPD) events entered on his
record. The panel dismissed an allegation that
the respondent had not complied with the CPD
monitoring exercise. In accordance with Rule
4.4(a)(i), the panel invited the respondent to
accept the following sanctions:
a reprimand; and
a ne of 750.
The respondent accepted that there
had been misconduct and accepted the
above sanctions.
Richard John Hall FIA
On 21 May 2014, the Adjudication Panel
determined that the case report disclosed a
prima facie case of misconduct in respect of an
allegation that, between March 2013 and
October 2013, the respondent in the
employment of his previous employer sent
condential material to his personal email
account for no legitimate business purpose, in
contravention of clause 25 of his contract of
employment. The Adjudication Panel
dismissed two further allegations that did not
disclose a prima facie case of misconduct.
In accordance with Rule 4.4(a)(i), the panel
invited the respondent to accept the
following sanctions:
a reprimand; and
a ne of 4,000.
The respondent accepted that there had
been misconduct and accepted the sanctions.
See full reports at www.actuaries.org.uk
Changes to Practising
Certicates Schemes
Members are reminded that changes to the
Practising Certicates Scheme came into eect
on 1 September 2014. View the changes at:
tinyurl.com/lnxjZk5
NEWS I N BRI EF
Adjudication Panel hearings
Following Augusts commemorations around
the world, writes IFoA president Nick Salter,
it seems right to take a moment to reect on
the First World War, which started 100 years
ago last month. The gures are truly shocking
some 10 million soldiers died in battle as well
as 7million civilians, in a war that touched
people around the globe. We all have a duty to
ensure that this does not happen again, but this
leaves me thinking about the good, ordinary
people on both sides who gave their lives for
their country. We should not forget the fallen.
President urges
remembrance
13
www.theactuary.com
Life Conference
and Exhibition 2014
9-11 November, ICC, Birmingham
Whether UK based or international, the Life Conference
is the premier event for life insurance professionals.
The plenary sessions will give you the opportunity to hear
insights from well-regarded industry and market leaders.
This year our keynote speakers include:
Steve Webb MP, Minister for Pensions
Nigel Wilson, CEO, Legal & General
Jasmine Birtles, Broadcaster
Sarah Harper, Director of the Oxford
Institute of Population Ageing
Andrew Roberts and Ross Walker,
Economists, RBS
This will set the backdrop for a broad range of technical and
non-technical workshops where you will be able to learn
from, as well as challenge, knowledgeable specialists. The
ideas with a broad range of professionals.
Book your place by 15 September to ensure the Early Bird Fee.
To nd out more information about the Conference and to book a place visit: http://bit.ly/1rDb8T0
Find out how your company
can be involved in the Life
Conference and Exhibition 2014.
Please contact:
Hannah.watson@actuaries.org.uk
Sponsorship and
Exhibition Opportunities
Keynote Speaker
Announced:
Steve Webb MP, Minister
for Pensions will close
the Conference
EVENTS AND CONFERENCES
GIRO2014
23-26 September,
Celtic Manor Resort
You can still book for GIRO 2014, the
premier conference for general
insurance actuaries. The theme is
innovation and we are delighted to
announce that delegates will be able
to engage in workshops and interact
in real time with plenary speakers
via the new free GIRO2014 app,
available to download from the
Apple Store and Google Play.
The app will allow you to browse the
programme and delegate list, plus
details of presentations, including
Bank of England governor Mark
Carneys keynote talk and author
and philosopher Alain de Bottons
views on The ever-changing world
of work.
To book, visit tinyurl.com/n3vv4jr
or email the event manager at
steve.whalley@actuaries.org.uk
Follow GIRO 2014 conference on
Twitter at #IFoAGIRO2014
Senior Life Actuaries
Workshop
30 September, 09.00 to 17.00,
30 Euston Square, London
Responding to feedback from
members of the Life Practice, the
Life ECPD Committee is planning
an autumn event aimed specically
at senior actuaries and actuarial
function holders (AFH) who are
preparing for the year end. This will
be an interactive workshop, with an
agenda built around suggestions
from the senior actuary and AFH
community. This event replaces the
CILA II event of previous years.
For further information, visit:
tinyurl.com/jvrw4cd
Model Documentation
Workshop
7 October, 09.00 to 12.00,
Staple Inn Hall, London
Producing and maintaining
good-quality model documentation
is an essential part of daily actuarial
work. Representatives from the
Prudential Regulation Authority
(PRA), audit and actuarial education
will explore what this entails. This
seminar is particularly benecial for
those less familiar with CA2 or
Solvency II. The nal programme is
now available.
For further information, visit:
tinyurl.com/pot7gmf
Momentum Conference 2014
3-5 December, Edinburgh
International Conference Centre
For further information and to book,
visit tinyurl.com/mhdbayx
SAVE THE
DATE
2014 Actuarial Teachers and
Researchers Conference
1-2 December, University
of Edinburgh
Further information and a call for
presentations will be issued shortly.
Queries should be directed to
maria.lyons@actuaries.org.uk
www.theactuary.com
14 THE ACTUARY September 2014
News
People & Society
If you have any newsworthy items
for these pages please email
social@theactuary.com
By Nicola Tooze
On 19 June, the SIAS ten pin bowling took
place in Elephant and Castle. Seventeen
teams of three battled it out for the esteemed
rst place prize. Play went a little slower than
usual, as teams took it in turn to watch the
disappointing World Cup England
performance between bowls.
Congratulations go to I cant believe its
not gutter from Ageas Protect, who scored an
impressive total of 857 over two games to take
rst place, with each member of the team
scoring over 100 points in each game!
Other special mentions go to Vishal Patel,
who got the highest individual score for one
game of 204 (ve strikes and three spares)
and to Alex Aiken, who found out he had
qualied while at the bowling alley and not
surprisingly never nished his bowling game!
Prizes were also awarded for some
impressive bowling by Palace Superbowl in
their World Cup giveaway. Many thanks go
to Palace Superbowl and to all the teams
that took part.
Bowlers not gutted by football
The IFoA Health and Care Board is sad to
report the recent passing of Robert Plumb,
long-time IFoA volunteer and member.
Robert (Bob) was well known to many
health and care actuaries for his valuable
insights, both from commercial and
academic perspectives. Notably, he was
valued as an expert in PHI now known as
income protection, and he served for many
years on the Health and Care Board,
helping to push forward timely and
important CPD and research for IFoA
members. His work on the exam syllabus
was particularly invaluable.
He will be most remembered for his
willingness to put forward the first
question at a seminar we could always
count on him! Those wishing to send
condolences can get in touch with
Jennifer Chapin, practices manager,
health and care:
jennifer.chapin@actuaries.org.uk
Obituary: Robert Plumb
Actuaries taken
to the Tower
SHOOTING FOR GOLD: Congratulations to David Luckman, an actuary who won his
second gold of Glasgow 2014 in the individual full-bore rie Queens Prize event. David, 38,
added to the pairs gold he had won with Parag Patel at the Commonwealth Games.
By Bill Rayner
A party of 60 visited the Tower of London to
watch the Ceremony of the Keys, the daily
formal closure of the Tower, a traditional
practice observed for centuries.
The Company was lucky to have yeoman
warder Colin Smith MBE as guide for a short
walking tour of the Tower. He also arranged
access to the Yeoman Warders Club for a buet
and drinks, a privilege for the group as visitor
access is only granted by a yeoman warder
personally. Throughout there was a steady ow
of fascinating explanations of the history and
rituals of the Tower, ranging from the gore of
torture and executions to the daily working
routine, and the most popular questions posed
by 21
st
century tourists, each tale a source of
(often mischievous) amusement.
The ceremony was followed with predictable
military precision. Most in the party returned
to the club afterwards to enjoy the hospitality
and to marvel at the memorabilia collected by,
and gifted to, the club over many decades.
Births: Ajeet (Global Thematic Partners)
and Charlotte (Mercer) Manjrekar are
pleased to announce the birth of their baby
boy, Theo Ravin Manjrekar, on 23 May.
p14_15_Sept_soc_news_FINALCT.indd 14 26/08/2014 11:11
www.theactuary.com
15 September 2014 THE ACTUARY
By Derek Newton
On 8 July, Drapers Hall in London hosted the
installation of Martin Miles as the 36
th
master of
the Worshipful Company of Actuaries, together
with Peter Thompson as senior warden and
Michael Tripp as junior warden. The ceremony
took place in the Court Dining Room with a
dinner that followed in the Livery hall.
The Companys chief guest at the dinner was
Michael Fallon, MP for Sevenoaks and then
minister of business and energy, now secretary
of state for defence. Other guests of members
included Greg Andrews, chief executive of
Christs Hospital Foundation; alderman Alison
Gowman, the master glover; John Dewhurst,
the master tax adviser; Michael Webster, the
master information technologist; and Neil
Braithwaite, chairman of the Brathay Trust.
The new master thanked Michael Fallon for
nding the time in his extremely busy schedule
to dine with the Company, before paying tribute
to his immediate predecessor as master, Charles
Cowling. He highlighted Charless recent
extraordinary achievement running 10
marathons in 10 days. While 5,000 people have
climbed Mount Everest, more than 800 have
won Nobel Prizes and more than 500 have been
into space, Charles was only the 79
th
person to
do the 10-in-10. In so doing, Charles also raised
more than 65,000 for charity, including the
Brathay Trust.
Martin talked about the Companys
commitment to supporting education, both
mathematical and actuarial, and he took the
opportunity to present prizes to Clinton Elliot
and Ian Rogers for their excellent performances
in last years actuarial exams.
Before he closed proceedings he set the
Company the challenge of raising at least
200,000 a year for the next ve years which
he described as a Million-in-ve challenge to
put his predecessors paltry 10-in-10 in the
shade. Martin also paid tribute to the very rst
master of the company, Georey Heywood,
who died a few weeks earlier, aged 98. He had
contributed greatly to the Company and to
the actuarial profession over many years and
continued to support the Company even in his
twilight years. He will be fondly remembered
and greatly missed by many.
Martin Miles made master
We would be delighted to hear from
you if you have any newsworthy
items for these pages. Please contact
Yvonne Wan at social@theactuary.com
New actuaries
lauded at dinner
By James Falla and Rosie Allsopp
The qualication of six new actuaries was
celebrated at the annual dinner of the
Channel Islands Actuarial Association (CIAA)
at La Grande Mare Hotel.
More than 80 people attended, including
members from the nance and public sectors.
Guest of honour was David Hare, president of
the Institute and Faculty of Actuaries.
He described the critical role of the profession
and the contribution actuaries make to
society: To have four new Fellows and two
Associates is remarkable given our
population and that we have less than 50
local members, including trainees. It must be
a record, said Francis Kehoe, president of the
CIAA. Their success reects commitment
and discipline combined with academic
achievement, as actuarial exams are
renowned for being most challenging.
Mr Hare presented certicates to new
Fellows Sam Langlois, Gayle Lloyd, Andy
Mountford and Stacey Wilen, and Associates
Carolyn Baty and Luke Mauger.
By Bijal Patel
Did you know that one in three people over 65
will die with dementia? Or that excessive
drinking in mid-life doubles the risk of
developing it? It is World Alzheimers Month
and important for us all to get informed, raise
awareness and challenge stigma.
A team of interns at Lloyds Banking Group
(LBG) have been fundraising for Alzheimers
Scotland and generating as much awareness
as possible. They have been selling fortune
cookies, running marathons, organising pub
quizzes, bag packing at supermarkets,
mountain climbing, penny collecting, hosting
competitions and many other activities.
The fundraising frenzy hasnt been limited
to the interns. Toby Strauss, group director for
Insurance at LBG, and a host of insurance
personalities within the group, along with
Scottish Widows, have been eagerly training
for their Prudential Ride London-Surrey 100
cycle, creating an atmosphere of generosity
and team spirit from the top down. They have
already raised more than 10,000 and,
together with the commercial banking team,
have raised more than 32,000. This is in
addition to the incredible 4 million the LBG
has already raised.
Friendships have been cemented, a great
time has been had by all and tons of money has
been raised. Alzheimers Scotlands Live Well
Campaign is a fantastic programme that aims to
train carers across the UK so that they have the
skills and support necessary when being the
prime carer for a loved one with dementia.
www.alzheimers.org.uk
Fundraising frenzy at Lloyds
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Last month, actuaries who lost their lives
during the First World War were remembered
by the IFoA. To coincide with the centenary
of the outbreak of the war on 4 August 1914,
the IFoA published a list of the names, ranks
and regiments of the 43 Faculty of Actuaries
members and 82 Institute of Actuaries
members who lost their lives in service.
A total of 198 Faculty members and 430
Institute members served in the armed
forces during the 1914-1918 war.
Remembering World War I
L
d
b
o
t
a
m
R
p14_15_Sept_soc_news_FINALCT.indd 15 26/08/2014 11:11
www.theactuary.com
MORE GI NEWS ONLINE
For further GI news,
visit www.theactuary.com/news
Air disasters to increase
war-risk premiums by 300%
Insurers are expected to hike war risk premiums by up to 300%
following the spate of ight disasters triggered by conicts around the
world, a senior aviation insurance executive has told The Actuary.
Malaysia Airlines Flight MH17 crashed in Ukraine on 17 July after it
was shot down by a surface-to-air missile as it ew from Amsterdam to
Kuala Lumpur killing all 298 people on board. Fighting between rival
militias at Tripoli airport and the militant attack on Karachi airport in
June also fall on the war-risk market, as does half of the $100m hull loss
on ight MH370, which disappeared over the Pacic Ocean in March.
Philip Smaje, global head of transportation broking and chief
executive of aerospace for broker Willis, said: In the aviation hull and
liability insurance market there will be a reaction in terms of pricing
levels The abundance of capacity could limit the extent to which
insurers can hike rates. But in the war risks market, certain insurers
have inferred that hull war rates could go up approximately 300%.
Towers Watsons senior consultant Tim McMurrough agreed that the
aviation war market would see rates increase quickly and signicantly,
with underwriters hungry to achieve payback. He told The Actuary
that the four war-risk incidents would lead to very material losses for
insurers as the war-risk market within aviation is small, with income
of $65-$70m. So, in the aviation war market, it looks likely that we will
see signicant rate increases, he concluded.
See more at: bit.ly/1s37xtT
Government to cap fees for
whiplash medical reports
The fees for whiplash medical reports are to be cut signicantly as
part of government eorts to clamp down on insurance fraud, justice
secretary Chris Grayling has announced.
It follows moves to discourage insurers from settling whiplash
claims that are not backed up by medical evidence. Doctors preparing
whiplash assessments are also to be prevented from oering treatment
to injured claimants to ensure that incentives are removed.
From October, medical professionals can only charge 180 for an
initial report, reecting the time taken to carry out assessments and
write them up. Currently, prices of up to 700 are charged, leading to
concerns that they are being used to generate prot.
Grayling said: Honest drivers have been bearing the cost of a
system that has been open to abuse and it is time for a change. The
Association of British Insurers also welcomed the announcement.
See more at: bit.ly/1lj0sYg
GENERAL INSURANCE NEWS ROUND-UP

The House of Commons
Justice Committee has
criticised a government review of
compensation claims for the asbestos-
related disease mesothelioma,
including an agreement reached with
the insurance industry to pay for
some deals.
The Mesothelioma Claims
report concluded that the review,
which examined the law relating to
compensation claims, had not been
undertaken in a thorough and even-
handed manner.
Committee chair Sir Alan
Beith MP said: We listened carefully
to views on both sides of an emotive
and polarised debate about the
process of claiming compensation
for this terrible disease, caused by
exposure to asbestos. We have
concluded that the governments
approach has been unsatisfactory on
a number of counts.
MPs were concerned government
had not been transparent or open
about the fact that its overall policy
in relation to mesothelioma had
been shaped in accordance with an
agreement reached with insurers.
A Ministry of Justice spokesman
said: We are considering the best
way to get claims settled fairly and
quickly. We will consider the reports
recommendations and respond in
due course.
The Association of British Insurers
said: We make no apologies for
negotiating with government a
scheme, paid for by insurers, that
will compensate an extra 3,000
sufferers over the next 10 years, who
would otherwise go uncompensated.
See more at: bit.ly/1sWVTFg
GETTY
Driverless cars require new
insurance approach
There needs to be a fresh approach to motor insurance if driverless
cars are to become a feature of the UK road landscape, a senior
industry leader has claimed.
The government announced that it is to explore the potential
to introduce driverless cars onto UK roads from the start of next
year. A review by the Department for Business, Innovation & Skills
is examining feasibility, looking at the type of insurance and
regulations other countries have put in place.
AA Insurance director Simon Douglas said: Motor insurance is
based on risk and much of the cost of a policy is associated with
the driver such as age, experience, past claims and convictions.
If that element is largely removed, then driverless cars could
potentially attract signicantly lower premiums than conventional
vehicles, providing the technology that operates them is reliable and
demonstrably reduces the likelihood of a collision.
James Dalton, head of motor at the Association of British
Insurers, agreed that more research on driverless cars was needed.
Graeme Trudgill, executive director at the British Insurance
Brokers Association, said the research into driverless cars was a
positive move. Further work will need to be completed on behalf
of the industry before we understand the full implications of this
technology and its impact on the insurance market, he added.
See more at: bit.ly/1tt9ocu
GI
MPs criticise government over
mesothelioma review
p16_sep_gen_ins_news_2CT.indd 16 26/08/2014 11:12
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News
Industry
BREAKING NEWS ONLINE
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news and to register for weekly news alerts
IAS19 change could wipe 25bn from
company balance sheets
More than 25bn could be wiped o the balance sheet of
FTSE 350 companies when proposed changes to pension
accounting standards come into eect in 2017, Aon Hewitt
has claimed
On 15 July, the International Accounting Standards Board proposed
changes to its IFRIC14 guidance, which supports the international
accounting standard IAS19. Proposed changes would mean that surplus
on dened benet pension assets would no longer be recognised unless
there is a realistic expectation that the company will eventually be able to
have access to the surplus.
According to Aon Hewitt, around 25% of FTSE 350 companies have an
accounting surplus in relation to their pension scheme that is recognised
on their balance sheets. Aon said the proposed changes would have a
signicant impact on balance sheet calculations.
Aons principal consultant, Simon Robinson, said: The big change
being proposed is that in the future, when assessing the funding position
of a pension scheme, companies will have to take into account the
expected behaviour of the trustees. This means that they will need to
recognise trustees potential future actions, such as de-risking exercises,
that might reduce the calculated accounting surplus.
Under the new proposals, Robinson said he expected most FTSE 350
companies with schemes that already have a surplus to reduce their
balance sheets by 8bn.
See more at: bit.ly/1qtdHlb
Solvency II: small insurers could cut
costs by outsourcing actuaries
Many UK-based general insurers could benet from
outsourcing their actuarial function as they prepare for
Solvency II to avoid the cost of the extra expertise needed,
OAC Actuaries and Consultants has said
The European Unions upcoming Solvency II capital rules require
all insurers to have an actuarial capability to help them assess their
liabilities.
However, actuarial and nancial modelling consultancy OAC warned
that many rms would not have su cient assets under management
to allow them to meet the cost of the extra regulatory obligations.
Its examination of a sample of 28 rms found 17 had assets under
management the market value of the rms assets of under 150m.
Speaking to The Actuary, Christopher Critchlow, consultant actuary at
OAC, said: Actuaries are not cheap and the work that needs to be done
is such that you need a cross-section of skills to ensure you can provide
the breadth and depth of an actuarial function for any insurer, no matter
how big or small the needs. For smaller rms, therefore, it makes greater
economic sense and makes for a more well-rounded actuarial service to
outsource the function to specialists.
He added that companies needed to start making preparations for
these changes now as the deadline [1 January 2016] is just around the
corner and rms cant aord to fall behind.
See more at: bit.ly/VHRbfN
Top rms devote over a third
of DB spending to decits
FTSE 350 companies devoted 37p out of every
1 spent on dened benet (DB) schemes to
clearing pension decits last year, according
to an examination of 220 FTSE 350 companies
with DB pension arrangements by actuarial
rm Barnett Waddingham.
Although decit contributions were at their
lowest level for ve years, 40% of companies
were still paying more towards decits than to
future pension provision for their employees.
Nick Griggs, head of corporate at the rm,
said: This is striking and illustrates just how
much companies are still having to pay in order
to reduce funding shortfalls. This 37p, along
with the signicant amounts that have been
paid historically, is being diverted to pay for
pensions for the generation of employees lucky
enough to receive a DB pension.
Nonetheless, the overall picture of DB
funding last year was better than in previous
years, according to the rms fourth annual
Impact of Pension Schemes on UK Business
report. It found that the total level of DB
decits decreased from 63bn to 56bn in 2013
because of good asset performance as well as
rising bond yields.
See more at: bit.ly/1tkIJjX
Scottish independence
timetable too short
The timetable for Scottish independence does
not give businesses enough time to make
the necessary changes to workplace pension
arrangements and would be signicantly
worse for companies that operate cross-border,
according to global HR benets and human
resource consulting rm Buck Consultants.
The rms Coping With the Issues report
outlines the workplace pensions issues that
would arise from a Yes vote in the referendum.
Businesses that run a single workplace
pension scheme covering employees on both
sides of the border might have to split the
scheme into two parts, the report said. This
would signicantly change future workplace
provisions, with such schemes unlikely to be
replaced by dened benet schemes.
Steven White, managing director for Europe,
said: One thing we can be condent of is
additional costs, both to dened benet and
dened contribution schemes, which may
suer reduced economies of scale. These costs
would be likely to fall across employers and
employees on both sides of the border.
Independence is expected to be implemented
on 24 March 2016, 18 months after the vote.
See more at: bit.ly/1p0pCp5
news@theactuary.com
UK consultation
on Solvency II
launched
The Treasury has opened
a consultation on how the
government should
implement the European
Unions Solvency II
directive in the UK. The
launch of the six-week
consultation on 6 August
comes after the initial
plan to hold one in 2011
was abandoned as work
was ongoing to nalise the
Omnibus II directive that
underpins Solvency II.
See more at:
bit.ly/1kXPczT
Regulator yet
to issue nes on
auto-enrolment
The Pensions Regulator
revealed that it has had to
take action 23 times since
July 2012 to ensure that
employers comply with
their auto-enrolment
duties. However, in its
rst quarterly auto-
enrolment compliance
and enforcement report,
the regulator said it had
not yet had to use its
powers to issue 400
xed penalties for failure
to comply.
See more at:
bit.ly/1s4frDs
Reinsurance
sector urged
to diversify
Standard & Poors (S&P)
has advised the global
reinsurance sector to
diversify its business
risks or face negative
ratings and increased
volatility in earnings
between 2014 and 2015.
Increased competition
has caused premiums to
decline, S&P said, with
the knock-on eects
threatening reinsurers
ability to maintain their
nancial strength.
See more at:
bit.ly/1nek5LW
p17_sep_ind_news_2CT.indd 17 26/08/2014 11:12
www.theactuary.com
On my agenda
Lord Robert Winston,
world-renowned scientist,
emeritus professor of
fertility studies at Imperial
College London, Labour
party peer and popular TV
presenter, has a reputation
for being provocative in his
views. Angus Macdonald
and Sharon Maguire
meet him to nd out why
Tales of
evolution
MANUEL VASQUEZ
p18_21_sep_interview_winstonSM_FINALCT.indd 18 26/08/2014 11:12
www.theactuary.com
It was a packed house at the Royal Society of Medicine on
15 May, when Lord Robert Winston delivered the Institute and
Faculty of Actuaries Spring Lecture, on the topic of Genes,
Genomics, Genetics: Human or Hubris?
Millions of TV viewers will recognise him from the vast
array of largely BBC commissioned programmes. Among
them the BAFTA award-winning series The Human Body, and
Walking with Cavemen a four-part documentary series about
human evolution.
As the countrys leading expert on in vitro fertilisation (IVF) ,
he is outspoken and more than happy to venture an opinion on
the commercialisation of fertility treatment via private clinics;
the inadequacies of the Human Fertilisation and Embryology
Authority; and is scornful of the UK governments attempts to
reform the National Health Service. In keeping with his robust
reputation he is also keen to acknowledge the downside of
every advancement.
Speaking to The Actuary just prior to the evenings lecture,
Winston gave an insight into the main issues currently
preoccupying him, paying particular attention to the premise of
uncertainty and the di culties of prediction; both topics of
great interest to actuaries.
He immediately sets the record straight in relation to
sensationalist tabloid headlines that have stated with horror
that certain IVF treatments will inevitably lead to designer
babies. Winston insists that this is not the case. It should be
possible to use a technique that we have devised to introduce
new genes into humans without using a complex technology
so you wouldnt need to use IVF. Any risks that would need to
be managed would be for society, rather than scientists, to
decide. They would be very dierent risks, he adds. The
issue is that we might be able to produce humans that have
enhanced attributes, and in so doing, we may change the
way humans might be in the future. That technology is
nearer now than it ever has been, and with it comes all
sorts of implications.
The implications he refers to would revolve around
whether it is ethically permissible to alter a patients DNA,
and potentially that of any ospring. Are we to give
scientists a free rein in manipulating our genetic blueprint
via eggs and sperm?
Winston is mindful of the reasons parents may seek
fertility treatment, and sees private healthcare as a
problematic issue. It is, he says, a market of anxious couples
and willing scientists keen to try out experimental
treatment. He has gone as far as to suggest that when a
symptom of infertility is initially diagnosed, IVF is
automatically given despite there possibly being other,
cheaper methods that are more eective, and that the
industry watchdog is doing nothing about it.
There are, he says, all sorts of reasons why people may
decide they want to try and enhance their ospring we
send them to better schools so we might as well give them
genetic advancement in intelligence, memory or cognitive
ability of some kind. He adds that if we can train them to
become outstanding athletes then we might as well
consider modifying the genes that control muscle
development too. Perhaps less controversial is that it may
allow scientists the ability to replace faulty or unhealthy
genes. One example of this is how our genome could be
altered to make future generations resistant to HIV.
Emergence of epigenetics
It has often been said that knowledge of our genetics will
change medicine and make health outcomes more
predictable, but with a few exceptions that has yet to
happen. So are we being wildly over-optimistic about
scientic discoveries, of which genetics is a prime example?
Winston thinks that the whole notion of genomics is
www.theactuary.com
MANUEL VASQUEZ
misunderstood. I dont believe that it is
going to be quite as important as has
been claimed, he says. I think we will
be looking at the eld of epigenetics
which is more to do with how we inherit
certain characteristics.
One of Winstons primary concerns is
public health and how to improve it. In
this the potential for epigenetics is
massive, and the idea of using it as a way
of improving the environment for
humans, and to ensure better health, is
an area he thinks actuaries may well be
interested in.
He later explains in greater detail
how there is a real need for public
engagement. How can we educate the
population to protect their own health?
One major aw, according to Winston, is
that we are not doing the social science
research we should be doing. The need
to address social conditions rather than
scientic ones remains a bugbear of his.
He sees diabetes (type 2) as a scourge
which will more than likely double in
the next 15 to 20 years, largely through
obesity. Pandemics will be on the
increase as the danger is more immediate with the ease and
accessibility of air travel. Viruses are equally perilous as
they can mutate across species. Coupled with this is the
increasing ineectiveness of antibiotics with not really
any new approaches to antibiotic medicine in recent years.
I pre-empt his later lecture by asking about stem cell
therapies, and the potential they have in the treatment and
management of some illnesses. Again, this is another
important eld that needs far more research, and it is one
that is very di cult to predict. Winston seems unsure of
just how much it can achieve: It has prospects for being
really useful to develop tissues, but Im not so sure about
organs, at least not in the near future. There are some
diseases, he claims, where it is di cult to see how stem cell
biology can be as helpful as it is claimed. He cites dementia
as a prime example.
So where does all this leave the insurance industry?
There is currently a moratorium on the use of genetic
information by insurance companies. Would Winston like
to see this continued, or is there a place for some genetic
information to be utilised? Winston reverts back to his
earlier premise that there is a misunderstanding of genetics.
The genome is not going to be as predictive in the way it
has widely been rooted, he says, and he remains suspicious
of the claims that sequencing the human genome will lead
to a massive change in the way we are able to insure in the
next 10 years. The whole point is that the eld is
immensely complicated the amount of data so
overwhelming, that it is di cult to see how big data can be
analysed in individual cases to create any useful
information that might be valuable to life insurers.
Thinking ahead
Winston doesnt believe we anticipate the future terribly
well. I may well be wrong, because you may say actuarial
studies do that brilliantly, but I suspect its only done in a
limited model, he says. When it comes to the health of a
population, did actuaries consider and factor in 30 years
ago that we could be wiped out by a pandemic infection, or
that we might be destroyed by climate change? These, he
believes, are very serious questions. He sees pandemic
infections as probably the greatest threat facing humans.
Climate change is certainly happening and could have a
devastating eect. How could we go about deciding the
eect of a 4C rise in the temperature in Britain in the
next 30 years?
Winston is convinced that we are all consumed with an
arrogant view of our own ability to change the world, and
that most things that come along are largely unpredictable.
When asked what role the actuarial profession might play
in any of these developments he
replies that it depends on whether
actuaries were any better at predicting
the future than anyone else. We
always believe experts can predict the
future scientists certainly cant.
He cites as an example, the laser,
now so ubiquitous in everything from
electronic devices to experimental
fusion science that it shapes our
modern lives. Einstein established the
foundation of the laser in 1917, yet it
took 50 years for someone to make
one, and when they did, no-one could
think of any use for it.
Thats how di cult meaningful
predictions can be. a
www.theactuary.com
On my agenda
We might be able to produce humans with
enhanced attributes, and in doing so we may
change the way humans might be in the future
GETTY
MONEY I N
THE PI PELI NE
Theresa Ruhayel looks at nancing
pre-construction and operational renewable energy assets
Finance
Renewable energy
p22_24_sep_renewable_energy_FINALCT.indd 22 26/08/2014 11:14
www.theactuary.com
THERESA RUHAYEL is a
structured nance analyst,
product development, at REEF
Partners. She holds a masters
in international nance from
Lund University, Sweden
To date, utility companies have been the
most important and largest developers of
renewable energy assets, mostly by issuing
investment grade corporate bonds which are
then purchased by traditional corporate bond
investors. However, a new investor-base is
required to nance the need for geo-
politically secure, environmentally aordable
and competitive energy in the 21
st
century
economy. The market has had to diversify by
seeking new investors that are able to provide
capital, like pension funds and insurers.
Securitisation is the pooling of assets,
typically representing the payment obligations
of a number of borrowers. Renewable energy
assets, such as electricity generated from
onshore and oshore wind farms, solar parks
and other renewable energy technologies, form
potential assets for securitisation. With a
weighted average life of 20-25 years, this asset
class is stable, uncorrelated and its cashows
are ination protected.
Financing new energy assets
SolarCity, an American provider of energy
services, announced in July 2014 the pricing of
the third oering in its solar asset-backed
programme. The LMC Series III, LLC is priced at
$215.5m principal aggregate amount, secured by
and payable solely from the cash ow generated
by a pool of photovoltaic systems, an
arrangement of components designed to supply
usable electric power for a variety of purposes,
using the sun or, less commonly, other light
sources as the power source.
Elsewhere in Jdras, Sweden, an interesting
example of an onshore wind farm was
commissioned in 2013. The 203 MW wind
project had a total capital expenditure (CAPEX)
of 360m and was innovative due to the
guarantee placed by the Kingdom of Denmark
on one third of the CAPEX. This allowed
PensionDanmark to provide 120m in the form
of 15-year synthetic loans. The loans are rated
AAA thanks to the innovative guarantee by
EKF. The export credit guarantee aligns the
risk-prole of the loans to the Danish sovereign
rating, now making pre-construction
developments accessible to institutional
investors without using specialised
infrastructure funds.
The internal rate of return for the special
purpose vehicle (SPV) is projected at 5.4%-7.9%
for the project nance and 13.7%-17.7% on the
equity, after tax. Furthermore, the project has
beneted from hedging contracts to reduce the
impact of price volatility and also shift a
portion of price risk away from the developer
towards risk brokers.
Clement Weber of Green Girae Energy
Bankers, a specialist renewable energy advisory
rm, says commercial banks have been steadily
used as non-recourse nance providers in the
past ve years, accounting for one-third to a
half of the oshore wind projects globally. They
typically nance up to 70% of a given oshore
wind project, the remaining part being nanced
by subordinated loans or equity.
The equity investments have been historically
borne by the large European utilities, but some
of them are dropping out and pure nancial
players, such as private equity rms,
infrastructure funds and pension funds are
coming on to the market to ll the gap. As an
example, the 1.2m 288 MW Meerwind oshore
wind farm was nanced by a mix of equity and
project nance loans.
Other projects are fully equity nanced,
such as Dongs 600m 252 MW oshore Gode
Wind II development, announced in April
2014. Rune Birk Nielsen explained that Dong
sought to frontload pre-construction CAPEX
at 50%, with the remaining 50% equity
investment coming from a consortium of
Danish pension funds between 2014 and 2016.
The consortium of pension funds has agreed
to pay the majority of its investment upfront
according to agreed milestones.
The source of nancing depends on the risk
perceived. At an early development stage of a
project, a technology or an industry, the
developers usually have to bear the risk and
nance it. In a su ciently mature industry a
stage that oshore wind reached in 2006,
15 years after the rst prototypes installed o
the coast of Denmark banks and some
nancial investors are willing to nance late
development and construction.
Other nancial investors and capital market
sources such as project bonds, initial public
oerings of portfolios and secondary market
debt funds will only target de-risked
operational assets.
Is there liquidity in renewable
energy assets?
Industry leaders at the large-scale end say that
the secondary market for the sale of solar or
wind assets is certainly liquid because buyers
are more comfortable purchasing an
operational asset with an established income
track record. There is, however, a shortage of
good quality assets that are fought over by
investors, and this lack of ample supply leads
to higher valuations.
Recently, the European Investment Bank
(EIB) held a round-table discussion on the
potential interest in an EIB-wrapped
NEIL WEBB
www.theactuary.com
securitised infrastructure fund for renewable
energy developments. The investor consensus
was pretty much that there is already plenty of
liquidity coming from banks in the form of
project nance and equity investors, and such
a fund therefore would not see great uptake.
Banks are still active in the project nance
market despite talk of exit in the name of
improved capital ratios.
Operational solar assets
renance at lower rates
A few years ago in the UK, solar developers
could expect ve out of every 10 applications
submitted to local authorities for site
development to be granted planning
permission. Now, the success rate of that has
decreased, diminishing the returns for
developers. The reason for this is that the UK
government is lowering the subsidies (feed-in-
taris) in April 2015, so developers are making
hay while the sun shines.
Furthermore, as investors are witnessing
returns of more than 8% in the post-
construction phase, the lower-bracket
risk-takers are entering the market. For solar
investments, previously perceived as risky,
required returns are greater than 8%, but the
good track record on (electricity generated)
cash ow has lowered perceived risks, and so
expected returns are now at only 4-5%.
European securitisation
markets
Independently of renewable energy
developments, the European Central Bank
(ECB) is focusing on reviving the European
asset-backed securities (ABS) market, as it is
highly exposed to the collateral which it has
taken in its European Financial Stability Fund.
There is little activity in the European
securitisation markets, with redemptions
greater than issuances. The ECB sees ABS as a
method of credit creation, transmitting
monetary policy into the real economy, and is
proposing three areas of change:
1. Excessive regulatory capital charges:
the European Commission is proposing to halve
the capital charge for AAA-rated Type 1 ABS to
2.1% and increasing this charge down along the
ratings bands (4.2% AA, 7.4% A, 8.5% BBB).
2. Transparency and standardisation
requirements: transparency of loan-level data,
central database depositories and standardised
prospectuses for securities, all enabling
comparison within the asset-classes.
3. Treatment of ABS by credit rating
agencies: the ECB would like investors to be
able to decide whether or not to apply the
sovereign rating in their internal evaluations.
ABS in stressed economies are constrained by
the corresponding sovereign rating.
Energy e ciency
Asset-backed securities could also be structured
on loans made available to retrot commercial
or residential buildings to high levels of energy
e ciency. Smaller-bracket energy-e ciency
projects are too small for institutional investors
to participate in: the average retrot for the
average commercial building is in the range of
$1-10m, so aggregating these projects into ABS
could be useful.
The process of bringing ABS to market has
improved, as originators, such as banks, need
to purchase and retain at least 5% of the
originated security on their books. The lower
rated tranches are kept on the books, while the
higher rated tranches are sold to investors, so
in eect investors are oered a sound deal.
Conclusions
As securitisation is not an asset class in itself,
but a useful nancing method to pool future
streams of income, the key to successful
investment lies in understanding the macro-
economic factors and analysing the underlying
asset-class, which holds true for any market.
Securitisation is a simple and useful method
for re-nancing operational new energy assets,
as we have seen in the ABS issuances by
SolarCity. The photovoltaic solar panel market
is considered a mature asset-class, with
lower risks.
Comparing the competitive and innovative
dynamics of the telecommunications industry
with the energy industry, Michael Liebreich
of Bloomberg New Energy Finance points out
that the cost of producing electricity from solar
has fallen at a faster rate than the rate of
change in the telecoms industry of delivering
mobile telephony which challenges our
perception of the change that is possible in the
energy markets. a
As investors are witnessing returns of
more than 8% in the post-construction
phase, the lower-bracket risk-takers
are entering the market
NEIL WEBB
Finance
Renewable energy
0
40,000
80,000
120,000
160,000
140,000
100,000
60,000
20,000
Overall average 3-5 years
post-qualication
experience
6-9 years
post-qualication
experience
10+ years
post-qualication
experience
UK
US
Australia
Figure 1 Average annual salary for qualied actuaries in Asia by country of qualication
The UK qualication
is designed to teach
students to communicate
complexity... in Asia it
is this rare talent that
employers are looking for
www.theactuary.com
Profession
Remuneration
CAREER COMPARISON
Jonny Plews reports
on the results of a
recent salary survey
of actuaries in Asia,
how IFoA Fellows
compare and why
Some months ago, during a meeting
with Derek Cribb, chief executive of
the Institute and Faculty of Actuaries
(IFoA), it was decided to undertake a
salary survey of actuaries in Asia to
understand how the fortunes of
Fellows of the IFoA compare to those
of other professional bodies. The
goal was to raise awareness of the
popularity of the UK profession
throughout the continent.
For many professionals
contemplating a career move, one of
the most common considerations is salary. It is therefore
no surprise that one of the most frequently asked
questions is what is the market rate for my experience?
and that the majority of these people are interested in
maximising this number.
Many of the generic salary guides published online are
vague and ignore the many variables of life. So to answer
the question accurately, albeit in a rather uninformative
manner you are worth whatever a company is willing to
pay you. If salary is high on the priority list, a more
suitable question should be Which companies would be
willing to pay me the most? A Fellow of the UK profession
need look no further than the Asian markets.
Within Asia, there is a rapid increase in the demand
from insurers for skilled actuaries. The multinationals are
growing, the local rms are developing in complexity, and
each year new companies are being formed. However, it is
not just actuaries that are needed, it is those with the
ability to communicate complex actuarial concepts in
laymans terms to non-actuaries. Firms nowadays are
using actuarial analysis as an integral component towards
their general strategy, and to add to this, actuaries are
working in an increasingly wide variety of functions
nance, risk, marketing, strategy, research and so on.
There is no shortage of actuaries in Asia, but nding
those with the right communication skills is di cult.
Actuaries there have traditionally worked in back o ce
statutory-focused roles. Combined with the fact that
English is most peoples second, third or even fourth
language, it is clear why many actuaries in Asia lack this
prociency. To meet this demand, employers look
elsewhere around the world, and as a result many
actuaries are relocating. There remains, however, a
shortage of actuaries with these skills.
The UK qualication is designed to teach students to
communicate complexity, through both the exams and in
practical application. This skill may be taken for granted
in the UK, but in Asia it is a rare talent that employers are
looking for. Of course there are also many actuaries from
other parts of the world who naturally have this skill.
However the level of training provided through the UK
qualication provides an advantage.
The salary survey covered 883 qualied actuaries based
in Asia and the results are summarised in Figure 1.
On average, the annual salary for a UK actuary in Asia
was 13,000 higher than for the US equivalent, and 6,500
higher than the Australian. On top of this, UK actuaries in
Asia were the highest paid in each post-qualication
experience bracket compared to the others. The results
were as we expected. a
Jonny Plews is an actuarial recruitment consultant
based in Hong Kong
p25_sep_salary_FINALCT.indd 25 26/08/2014 11:15
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p26-27_ACT.09.14.indd 27 26/08/2014 11:33
GETTY THE ACTUARY September 2014 28
www.theactuary.com
Risk management
RAMP
For the past 20 years, actuaries and civil
engineers have been working together on risk
management. Starting with the development
of a methodology known as RAMP (risk
analysis and management for projects), the
work has broadened out to include strategic,
operational and enterprise risk. This article
outlines the results and indicates how actuaries
might be able to use them in the nancial
services industry and elsewhere.
History
The RAMP guide, rst published in 1998,
covers the management of risks in change
projects, large and small. It was later
recommended by HM Treasury for the
governments own projects and rolled out to
government departments. We also published
guides related to the management of strategic
risk (2006), a framework for implementing
enterprise risk management (2009), and
recommendations on handling uncertainty
(2011). A few months ago, we learned that our
guides on project risk and strategic risk are
being used by Londons Crossrail in its own
risk management systems.
Components of enterprise risk
Bringing all this work together, we summarised
the components of enterprise risk into the form
shown in Figure 1: The double lines between
the three components represent the overlaps
between them, and the double line round the
whole triangle represents the dynamic
interface between enterprise risks and the risks
of the outside world. Each of the three
components is normally managed by separate
groups of executives, but there should also be
concentration at the centre on the overall risk
faced by the enterprise.
RAMP
RAMP is an iterative process, which is applied
in gradually increasing depth as the
development of a project proceeds. It is
particularly useful when employed from the
very start, while alternative projects are being
considered and there is a need to evaluate the
risks in each of them. The process emphasises
the need to reduce uncertainty, by conducting
a methodical and focused search for additional
relevant knowledge. The guide covers the
production of a risk register, but calls for it to
be constructed in greater depth than is
common practice, for example by treating
assumptions as risks and indicating
connections between dierent risks. Criteria
are proposed for determining whether possible
risk mitigation actions would be cost eective.
Special attention is paid to catastrophe risks.
To aid decision-makers, it is suggested that
BRIDGING
THE DIVIDE
Chris Lewin looks at
the risk initiative
between the actuarial
and civil engineering
professions
p28_29_sep_civil_engineer_FINALCT.indd 28 26/08/2014 11:16
www.theactuary.com
29
CHRIS LEWIN leads
the risk management
initiative between
the actuarial and civil
engineering professions
scenario analysis is carried out, illustrating
the value of the project if various key scenarios
occur, and leading to a single risk-adjusted
net present value that represents the value of
the project after allowing for risk. The results
can be presented in a simple diagram such
as Figure 2.
The left-hand section illustrates the net
present value of the project before risk
mitigation and the right-hand side shows the
corresponding value if risk mitigation actions
are implemented. In each section, the net
present values from ve scenarios, A to E, are
shown, where A is as expected and the other
four scenarios illustrate the results if specic
groups of risks materialise.
The risk-adjusted value of the project,
displayed in the nal column of each section,
is the weighted-average of the results from the
ve scenarios, allowing for the estimated
likelihood of each scenario group occurring as
shown. In this example, the risk mitigation has
not only brought the outcome for each scenario
within the boards level of risk tolerance for the
project but it has also increased the
risk-adjusted value of the project, even after
allowing for the cost of the mitigation actions.
STRATrisk
Our guide to the management of strategic risks
is colloquially known as STRATrisk and was
underpinned by a Bristol University study
based on interviews with directors and senior
executives, mainly in the construction
industry. The guide stresses the need for
eective board leadership and commitment,
and suggests that a short list of up to 10
strategic threats should be drawn up for the
board to monitor regularly, as well as a short
list of key opportunities. A participative open
culture involving the entire sta is
recommended, with two-way communication
about emerging risks, as well as organisational
learning and knowledge sharing. The guide
also recommends that there should be a
comprehensive ERM framework, with a central
organisational focus on risk. Among other
aspects, the risks already embedded in the
organisation should be studied, such as the use
of mathematical models that do not reveal
extreme events, or erroneous spreadsheets and
inadequately understood computer
programmes. A section of the guide deals with
self-inicted strategic risks, such as those that
could follow from cutting out a layer of
management or from giving insu cient
attention to risks identied already.
Some useful tools for managing strategic
risks are described, including horizon
scanning, concept mapping, pattern
recognition and risk grouping.
Enterprise risk management
We know that most boards understand the
concept and desirability of having a holistic
enterprise risk management framework, but
we also realise that many organisations have
found di culty in introducing one.
We have therefore produced a
comprehensive guide to implementing such a
framework in any business, covering
organisational principles and the details of a
central focus on risk.
The other topics discussed include
uncertainty, risk appetite and capacity,
scenario analysis and stress testing,
responses to risk, risk governance and
developing an action plan. There is also a
section on managing a list of common
operating risks, which we drew up following a
Southampton University study on operating
risks in the energy, transport, waste
management and water industries.
This list includes reputation damage,
problems with IT systems, reductions in
demand, customer service problems, supply
chain issues, malevolent third parties and
numerous risks we identied relating to sta
and nance.
Applications in nancial
services and other industries
The results of our work have potentially wide
applications in a variety of businesses, with
appropriate adjustments for the particular
context. In nancial services, for example,
there are many projects that could usefully be
managed by RAMP, including IT schemes and
the launch of new products, and many
strategic risks that could be managed by
applying the concepts and tools of STRATrisk.
Those insurance companies that do not yet
have a fully comprehensive system of
enterprise risk management might be able
to benet from the framework we
recommend, using it as a checklist of the
action which is needed. Moreover, a new eld
of possible application is now opening up.
Last year, the Financial Reporting Council
consulted about strengthened risk-reporting
requirements for listed companies, which call
for deeper analysis and the use of models,
scenario analysis and stress testing.
If actuaries become involved in helping
companies to comply with the new
requirements, the results of our work may
provide a useful background for all
concerned. a
For further references, see full article online at
www.theactuary.com/features
Figure 1 Components of enterprise risk
Before mitigation
Value of project in dierent scenarios
After mitigation
Risk-
adjusted
value
Risk tolerance
Risk-
adjusted
value
+30
60%
A
+20
10%
C
+16
15%
D
+27
65%
A
E
5%
-13
B
10%
-23
+23
10%
D
+17
10%
C
+13.9 +18.6
B
10%
-50
M
+50
-50
0
E
5%
-70
Figure 2 Scenario analysis
Strategic
risk
Project
risk
Operating
risk
p28_29_sep_civil_engineer_FINALCT.indd 29 26/08/2014 11:16
GETTY
General insurance
Ination
THE HIDDEN
RISK OF
INFLATION
With inationary pressures reappearing in
several economies, Graham Fulcher
questions whether building an implicit
allowance for ination into projections based
on historical data is an overly relaxed approach
p30_31_sep_claims_inflation_FINALCT.indd 30 26/08/2014 11:17
www.theactuary.com
31
GRAHAM FULCHER
is a managing director at
Towers Watson
In my view, awareness of ination goes
hand in hand with understanding the
operations of an insurance company
because the assumption of ination risk is
fundamental to the basic premise of property
and casualty insurance.
Breaking the insurance transaction into its
simple components, an insurer accepts a xed
premium today in exchange for a promise to
pay an uncertain amount in the future,
contingent on an insurable event occurring.
The risk of writing the business can be divided
into two parts. The rst is insurance risk the
contingency of whether the insurable event
occurs and the uncertainty about the nominal
amount of the claim (expressed in todays
prices). The second is a nancial risk the
impact of ination on the actual amount of the
claim at the time of payment. Every time an
insurer writes an insurance contract, therefore,
it is giving an implicit, contingent ination
hedge to the policyholder.
Hidden menace
Economic circumstances have meant that
many actuaries today have spent their working
careers in a world where price ination has
largely been a side issue. It would not be
unreasonable on their part to wonder whether
it is really worth expending much eort to
model ination eects more precisely.
But, looking back at UK ination levels over
the past 250 or so years, there have been only
two periods where ination has been low and
stable for more than 10 years the early 20
th

century and now. The current period of
ination is clearly anomalous. At the start of
the last century, open trade, reduced taris and
price controls, the rise of global capital ows
and a stable monetary supply all contributed to
the previous period of passive ination. Many
at the time expected the conditions to continue
indenitely, for example dismissing worries of
a major European conict as impossible. And
we all know what happened then.
To a degree, many arguments for continuing
low ination are similarly open to question now,
where interest rates have been suppressed by
huge amounts of quantitative easing.
Current practice
The vast majority of insurers around the world
are already making some allowances for
ination in their business models. But with it
having been a relatively minor consideration in
recent years, the danger is that approaches may
have become somewhat formulaic. Current
practice tends to be dominated by rms that
are making an implicit projection of claims
ination from their historical claims data.
In stable markets, such as we have been
experiencing, this may be su cient. But any of
the following what if scenarios could quickly
invalidate extrapolated ination assumptions:
if the beginnings of a European recovery lead
to an upturn in economic activity, which
aects claims frequency trends;
costs of medical care and the use of medical
services change substantially;
if claims farming and changing social
attitudes increase litigiousness further;
a geopolitical event leads to an oil or
commodity price-related shock;
central bankers overreact to the emerging
threat of devaluation.
A broad brush approach also makes it very
di cult to understand how dierent parts of the
business are aected by ination and how to
react to inationary changes eectively.
Experience shows that the tentacles of ination
reach far beyond claims reserves into a whole
gamut of areas, including reinsurance adequacy,
the companys solvency position and broader
business strategy. Moreover, just as important as
recognising where the impact of ination may
be greater, is that dependencies between claims
ination and price and wage ination may be
very small in some classes of business.
Modelling and knowledge
Various modelling approaches could assist
companies to start to get a better handle on
their ination exposure.
A step forward in modelling accuracy is to
explicitly account for claims ination. This
involves creating reserving triangles based on
paid claims, as incurred claims already include
some unknown expectation of ination.
Extracting past ination patterns from these
models gives the level of paid claims in real
terms, from which a real terms best estimate of
reserves can be derived. Then, by factoring in
estimates of future payment patterns and
ination, the best estimate reserves will
include an explicit allowance for future price or
wage ination.
Even better is to make use of statistical
methods, such as generalised linear models
(GLMs) applied to claims triangles, which can
help to separate origin, development and
calendar period eects. Calendar period eects
are not just explainable by claims ination, but
anything in the data that has an eect in the
calendar period direction.
A good way to see if these eects need
modelling is to t development factor methods
(that assume the same development pattern for
each origin period) in the usual way, and
inspect residual plots by calendar period to see
if there is an observable pattern highlighting
a systematic failure of the model. Another
option is to adjust triangles for suspected
historical claims ination and look for any
remaining calendar period eects.
Data and mathematical models will take
companies some way along the road to
understand the impact of claims ination
better. But expert judgment, based on a solid
understanding of the nature of the risks in a
portfolio and of the internal and external claim
drivers, is a key additional ingredient in setting
appropriate claim ination allowances which
needs to include super-imposed ination, as
well as pure economic ination. Otherwise, a
range of potentially important contributing
factors can be missed, including:
External changes
legislative changes resulting in an increase or
decrease of legal expenses;
new medical diagnostic guidelines;
jury decisions and court interpretations;
change in local/global economic/geopolitical
environment.
Internal aspects
portfolio cleansing;
change in business strategy;
changes in the claims department;
new claims handling software.
Superimposed ination and claims culture
improved risk management for example,
re safety, car security, rules for alcohol
consumption in vehicles;
increase in awareness on accessibility of
compensation, for example via social networks;
strong lobbying from victim associations.
Potential blind spot
One of the lessons learned from the banking
crisis was that low interest rates, increasing and
uncorrelated house prices and low
unemployment had become regarded as
business as usual. Many of the quants working
in the sector had never experienced anything
dierent, and built and traded on increasingly
complex mathematical models of risk that
completely ignored the binary risk of a change
in the macroeconomic environment.
Similarly, many insurers, and the actuaries
that work in them, have only ever worked in a
period of low and predictable ination. Let us
not repeat the same mistakes for example by
developing sophisticated stochastic reserving
models that ignore the binary impact of a move
to a dierent inationary environment. a
p30_31_sep_claims_inflation_FINALCT.indd 31 26/08/2014 11:17
International
Strategy
AFRI CA RI SI NG
Tavaziva Madzinga
reports on Africas fast-
growing economies and
what this means for
savings and insurance
on the continent
Over the past few years, I have seen
the nancial services industry across
the vast African continent transform,
with the regulatory landscape
tightening and consumers
awareness growing. In future, a
burgeoning middle class will mean
more disposable income, although
the cost of living is also generally on
the increase.
Over time, these factors will mean
people in Africa will increasingly
seek to protect themselves from the
risks that can aect their income and assets. One of the
best ways that they will achieve this protection is through
savings and insurance, increasing the demand for these
products on the continent in future.
Africa has had its challenges. In the past, political and
civil instability, poverty, limited infrastructure and poor
governance has held back many countries. In recent years,
many African countries have been breaking these barriers
and moving forward, resulting in strong macro-economic
growth and rapid nancial regulatory reform.
The insurance services we see now in Africa have come
a long way from what was oered, say, 50 years ago.
Today, the lines of who provides insurance are blurred as
non-traditional competitors such as telecommunications
providers and banks now take a signicant portion of the
populations share of pocket.
The once small African insurance market is now
expanding at a steady pace and the opportunity lies in
developing innovations to meet customers ever-growing
sophistication. Actuaries who understand the markets
growth potential will be able to develop targeted
products that cater specically to customers
needs. In turn, this will help to restore faith
in the insurance industry across Africa.
Role of mobile
technology
The future is digital, whichever
direction you look. It is a reality of
business, whether on mobile phones
or via the internet. An increasing
number of products and services
will be distributed through
digital platforms as customers
continue to move towards
having more control over
their nances.
Businesses
will need to
evolve and
invest signicantly to meet this growing need, which
will only get more sophisticated. Businesses have to
continue to invest in products to keep up with the
consumer demand.
In Kenya, where the insurance penetration rate is
below 3%, the rapid growth of mobile technology has
resulted in products being developed that cater to people
in the large informal sector. There is technology that
enables customers to invest in money markets using
their mobile devices. This includes those in the informal
sector, a previously unexplored market. One example is
in agricultural insurance, where great strides have been
made with mobile applications that assist Kenyan
farmers to manage the risk to their livestock and crops.
Nigeria also has a low insurance penetration rate,
but it has a substantial population by far the largest in
Africa and seventh largest in the world and a GDP
greater than that of South Africa. The potential in Nigeria
is colossal.
To harness these opportunities, insurance products
have to be easy to access and to understand. In terms of
access, a great proportion of the population across Africa
now own mobile phones. Distributing insurance products
through mobile phones to the informal mass market
oers exciting opportunities. Here, customer self-service
is encouraged and the opportunities for cross-selling
are numerous.
Mobile network operators (MNOs) have the potential to
reach a large number of customers through extensive
physical and virtual networks at a low cost. MNOs can
control a wide range of communication channels that are
able to support promotions, sales and enrolment in
insurance policies. In this way, MNOs are able to enhance
the way claims handling and customer service is executed
by the insurance companies in order to deliver more
value to the customer.
African nancial services markets are trailblazing in
their proliferation of digital distribution of products.
While mobile access makes insurance products more
accessible to Africas masses, the other key ingredient is
nancial education, to increase understanding of
insurance and encourage sound money management.
As nancially astute individuals, actuaries have much
to contribute to nancial education initiatives that will
improve consumer knowledge and help drive insurance
penetration in Africa.
Business models that may have worked in more mature
markets cannot be replicated in Africas fast-growing
economies, which require new strategies for success. a
Tavaziva Madzinga is an actuary and chief operating
o cer of Old Mutual Africa, responsible for operations
across eight African countries
www.theactuary.com
p32_sep_africa_rising_FINALCT.indd 32 26/08/2014 11:19
www.theactuary.com
PUBLISHER: FT Publishing International
ISBN-13: 978-0273751342
RRP: 20
BOOK REVIEW
In contrast to just a few years ago, actuaries, especially
those who are executive or non-executive directors,
receive an increasing volume of compliance
information, and those involved in nancial institutions
have a signicant amount relating to nancial crime.
I was pleased to review a book on this subject,
particularly one written in a light-hearted way as
opposed to the mass of far less entertaining
compliance information.
This book is based around a series of high-prole
cases. However, more background is provided to give
an insight into the reasons for the failures and what
crucial evidence was available within the public domain
before these failures came to light. The topics range
from the South Sea Bubble to the still ongoing enquiry
into alleged LIBOR rigging.
The aim is to provide the readers with su cient data
to understand the issues relating to past examples of
fraud, and make us aware of the salient features and the
telltale signs to look for. This will help to spot future fraud
before it becomes serious and apparent within the
public domain.
The conclusion of the book inevitably lays much of
the blame at the door of the poor regulators, in all
countries. It must be remembered they usually have
meagre resources. However, they tread a ne line
between encouraging and controlling entrepreneurship,
so perhaps they should be more consistent in their
regulation rather than swinging between a strict and
rigid regime. The regulators should also listen to those in
the market as this could set alarm bells ringing at a far
earlier stage. It is a little unfair to blame the regulators
alone, however, as it is primarily up to the investors to
perform their own due diligence.
Company directors are not heavily mentioned in the
book, although they do have corporate responsibility for
dealing with fraud. As actuaries, we have the necessary
skills to look for these warning signs, and with the
increasing focus on the responsibility of directors, must
ensure we have our say and do not look the other way,
especially when there might be business reasons, and
opportunities for increased prot by doing so. However,
directors are passed considerable amounts of
compliance data and they must be able to spot the
important issues. This role is no longer an easy one.
The examples provided within the book are
wide-ranging. Some fraudulent exercises are fully
premeditated and their nancial returns could not
possibly come to fruition without it. Nave and
sometimes sophisticated investors often invest their
funds too easily with very little due diligence or an
appropriate examination for the evidence of fraud.
These might include Ponzi schemes where the
promised returns clearly cannot be realised, and the
only way for their continuance is for new investors to
provide the funding to produce the returns for past
investors. Their only hope is that future investors
continue to be nave enough to do the same. And so the
cycle continues. Once the house of cards inevitably falls
down, those within the scheme lose out completely.
Other fraud includes false, innovative and creative
accounting, including accounting for non-existent
stocks and other assets. The book explains that as
accountancy standards vary considerably around the
world, it is this environment that often provides the
framework for fraud.
Occasionally, fraud is caused by several market
participants. They collude to create a false market
position from which the originators benet at the
expense of honest players in that market. Although the
investigations are as yet incomplete, the alleged LIBOR
rigging may well be an example of this.
Some frauds are not premeditated but occur when
an initially honest business plan fails, perhaps for
reasons beyond management control, and then an
increasing spiral of additional risky ventures is
undertaken to try to produce the original expectations.
This type of fraud creeps up on the perpetrators. Past
successful and respected fund managers can become
undone when they see an opportunity to enhance their
returns and promote their reputations.
Too many investors seem to have all, or a large
proportion, of their eggs in one basket. This is where
basic investment principles become an important issue.
Diversication, appropriate due diligence, market
information from respected sources and other rules
are often forgotten when greed plays its part, and a very
high return is just too tempting. On many occasions the
signs of fraud are there but are ignored. If an opportunity
looks too good to be true, then it probably is.
History is often a good teacher. Although the past
cannot be guaranteed to be an accurate guide to the
future on all occasions, it cannot be ignored. I would
recommend this book, perhaps for an easy and
interesting summer read.
Colin Czapiewski is an independent actuarial, insurance
and risk management consultant
Occasionally, fraud is caused by market
participants colluding to create a false
market at the expense of honest players
MORE ONLINE
Latest reviews at
www.theactuary.com/
opinion
GETTY
The Con Men: A History of Financial Crime and the
Lessons that you can Learn by Leo Gough
p33_sep_book_review_FINALCT.indd 33 26/08/2014 11:19
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Puzzles
C
R
O
SSW
O
R
D
PR
IZE
PU
ZZLE

N
y
l
f
i
a
1 2 3 4 5
8 7
6
10
9
13
16
14 15
11 12
17 18
19 20
21 22
23
26
24
25
Earth provides enough to satisfy every mans
needs, but not every mans greed.
Mahatma Gandhi
p34_35_sep_crossword_puzzles_FINALCT.indd 34 26/08/2014 11:19
www.theactuary.com
SHUTTERSTOCK
HAVE YOU GOT WHAT IT TAKES?
For information on IQ testing in your
area, visit www.mensa.org.uk
TERMS AND CONDITIONS The prize will be awarded for the rst correct entry drawn at random
from those received before the closing date. The winners name will be announced in the next
edition. Please note, the puzzle editors decision is nal and no correspondence will be
entered into. We reserve the right to feature the winners name in The Actuary.
Your details will not be passed to any third party in connection with this draw.
Dining options
Mensa puzzle 600
Handed on a plate
Mensa puzzle 602
Since the introduction of a new menu, a restaurant
has served 106 portions of CAVIAR, 1050 portions
of LAMB, 50 portions of SOLE, 151 portions of
PLAICE, 61 portions of OXTAIL and 66 portions of
OX LIVER.
How many portions of DUCK has it served?
For a chance to win a 50
Amazon voucher, email your
solution to puzzle 599 to:
puzzles@theactuary.com by
Wednesday 17 September
Bridge puzzle provided by David Lampert
Bridge puzzle 46
Which contract?
Mixed messages
Mensa puzzle 601
Use the letters given to complete the pyramid so
that one seven letter word, one ve letter word,
one four letter word and three words of three
letters can be read.
What are the words?
A B E E E E L L O S T W
Founding father
Mensa puzzle 599
A quote by Benjamin Franklin has been split up into groups. Rearrange the groups to form the quote.
What should it say?
ANG BUT DOM EAS ERI HAG
HOU ON, ONE OOD SEL SNE
TAR VER WIT WIT
N
W E
S
AQJ10
4
K74
AQ732
K8
J93
AJ
KJ10986
Playing Standard ACOL, West deals and opens
1. The scoring is Duplicate Pairs
1. What mustnt East bid?
2. What do you suggest East does bid?
3. What should the nal contract be?
4. How do they get there?
M
EN
SA
PR
IZ
E
PU
Z
Z
LE
R
M
Y
P
GET
ORB
OUT
ANT
MAN
BUR
Place three 3-letter groups together
to make a nine letter food item.
What is it?
p34_35_sep_crossword_puzzles_FINALCT.indd 35 26/08/2014 11:20
www.theactuary.com
36
SOLUTI ONS FOR
AUGUST 201 4
SHUTTERSTOCK
Congratulations
to this months
winner
John Small of
First Actuarial
Alphabet order Mensa puzzle 596
Tunnel vision
Mensa puzzle 598
What letter is missing in this sequence?
Answer: U. They are the second letters of the days of the week.
A 550 yard long train, travelling at 90mph,
enters a one and a half mile long tunnel. How
much time will elapse between the moment the
front of the train enters the tunnel and the
moment the end of the train clears the tunnel?
Answer: One minute, 12 and a half seconds Bridge puzzle provided by David Lampert
Bridge puzzle 45
It helps to see the
opponents hands!
Symbolic gures
Mensa puzzle 597
Which symbol should replace the question
mark to continue the sequence?
Answer: $. A repeating sequence of $, %, &, X,
, + runs down the rst column and up the next
and so on.
$ X % &
% & + ? X
& % $ +
X $ % +
+ & X $
U O H ? R E A
Allphabet orde
Bon voyage
Mensa puzzle 595
In a holiday brochure Sicily is featured on page 31, Penang is featured on
page 35 and Cyprus is featured on page 44. What is the page number
for Jersey?
Answer: 33. The alphabetical values of the rst three letters are added
together to give the page number.
Congratulations to this months winner Andrew Gough
N
W E
S
AQJ75
43
AK2
A52
K10963
A2
654
643
82
KQJ109
8765
7
10
4
--
QJ10983
KQJ987
Sometimes you can work out exactly the
opponents distribution to help you play the
hand. Here is one such example.
Bidding
W N E S
4 x Pass 4
All Pass
West leads the K. East rus and will return K.
You have lost one trick and surely have three losers
in the minors to come... or have you? Plan the play.
Did you go wrong at trick one by playing the
2? You must throw your A!
You win the next trick with A and draw trumps,
noting West had two. You now play A. When
West follows to both aces, he is known only to
have hearts left. You now throw West in with 2.
You are still not quite there. On the next heart, you
dont ru but throw a club from Dummy and a
diamond from your hand. You have now lost three
tricks. On the next heart, you throw another club
from Dummy and ru in hand. Your remaining losers
disappear on a cross ru. Note that if West had the
2, he could thwart you by ducking your heart!
Although you cant see the opponents hands,
you know the exact distribution after ve tricks.
At the back
Coee break
puzzles@theactuary.com

N
y
l
f
i
a 1 2 3 4 5 8 7 6
10 9
13
16 14 15
11 12
17 18 19 20
21 22 23
26
24
25
27 28
A M U S E M E N T R H O D E
A T A I A O
J U R A S S I C I S L A N D
R T S K M L N
E N E M A S E P E I R I D
E C S R A S
S N A P H P P O D R O M E
E U U B D
G L Y C O S E M I
I
A S A L T
O U E E B E
U T I L I T Y W I L C O X
T I T T L R I
L E M A N S E V I D E N C E
R R A T D O
G Y P S Y G R E Y H O U N D
M
ENSA
PRIZE
PUZZLE
p36_sep_puzzle_solution.indd 36 26/08/2014 11:21

www.theactuary.com
Student
At the back
Student
student@theactuary.com
PHI L WRI GGLESWORTH
END OF THE RAI NBOW
Jessica Elkin spots the light at
the end of the tunnel following the
exams and explains what to expect
when you reach that point
Tough month ahead of us. The short summer
sitting means that there tends to be a
last-minute scramble to get through study
notes and plough through enough past papers
to stand a chance of passing the exams. Im
convinced most (if not all) students spend the
month with Queens song Under pressure on a
loop in their heads.
As I am one of those students, I dont
particularly fancy going on about it. In fact, Id
rather not think about it at all. I suspect that
September will involve copious drafting and
re-drafting study schedules, watching Game of
Thrones just for a bit, and snacking.
Its easy to become jealous of non-student
colleagues around this time. That qualication
light at the end of the examinations tunnel
feels like the remedy to all problems, removing
the biannual stress points of exam periods and
further pressure of exam results. They certainly
dont need to worry about failing, spending
their evenings studying, or completing
work-based skills.
However, completing the exams is not the
end of the journey actuaries must keep
working to maintain and update their skills
and competence.
An actuarys work is never done
The IFoAs website optimistically states that:
Members pride themselves on their learning,
not only at the point of entry to the profession
but throughout their careers. You learn in CT9
that we have a responsibility to work for the
public interest, and the Actuaries Code
requires members not to act unless they have
an appropriate level of relevant knowledge and
skill. As legislation, professional context and
actuarial methods evolve over time, it is
important to keep up-to-date with changes.
Its with this in mind that the IFoA created
the Continuous Professional Development
(CPD) Scheme.
Once you are qualied (lets be optimistic
about this for now), you must attain a
minimum level of CPD. This is dened as
learning which is relevant to the nature of your
role and addresses a personal development
need, whether the focus is technical,
professional or otherwise. It can include
attendance at IFoA or company events such as
workshops, training sessions or conferences
and seminars. Any training or development
activity involving interaction with other
individuals can count as an event.
Alternatively, you can undertake private
study, for example participating in an online
learning activity or researching professional or
technical journals. Even time spent
volunteering for the profession can be included
where relevant (hint, hint). CPD is measured in
hours and must be recorded on the member
area of the IFoA website.
Actuaries with a practising certicate for
example, scheme actuaries have the highest
CPD requirements, currently needing to log at
least 30 hours per year with 20 hours
specically relating to technical skills. And
private study does not count as CPD for these
members. Something to think about when
making ambitious career plans.
As usual, there is further information on the
IFoAs website. Additionally, in the events
section, there are details about events and
activities to assist with CPD. Note that youll
need to provide evidence of your activities up
to the required minimum of hours, and will
have to log the learning outcomes from your
CPD hours much like work-based skills.
Its reassuring that the party doesnt end
at qualication.
And thats not all...
Since the Professional Skills and CPD
requirements were combined fairly recently,
they are now both part of a new umbrella CPD
scheme which applies to all members of the
IFoA including the likes of us students. There
are eight categories of members, each of which
has dierent requirements. I recommend you
check this out for yourself, as Im not your
mother... I dont think.
Those of you who joined the IFoA on or
after 1 March 2012 are hopefully aware that
you need to complete a Professional
Awareness Test online before you can sit CT9.
Then theres the Professional Skills Course
which all of us will need to sit; were required
to take the course within a year of full
qualication, or if you joined the IFoA on or
after 1 July 2006 and dont qualify in advance
between the 4
th
and 6
th
anniversary of
admission to the IFoA. Perhaps set a reminder
in your calendar.
Im really jumping the gun here, as most of
us wont need to think about any of this right
now; however, its certainly more appealing
than some other current topics. The upside to
failing anything is that itll be even longer
before you have to worry about any of this.
Ever the optimist, me. a
p37_sep_student_FINALCT.indd 37 26/08/2014 11:22
38
www.theactuary.com
ACTUARY OF
THE FUTURE
Do you know an actuary
destined for greatness?
You can nominate an Actuary of the Future
by emailing
aotf@theactuary.com
F ELI X MANTZ
Empower Results
ReMetrica
Bringing strategy into focus
When it comes to modelling efective nancial
strategies, ReMetrica transforms your data to help
you make insightful business decisions.
Our strategic tool helps reveal potential business
outcomes and allows companies to analyse multiple
strategiesputting capital efciency rmly into focus.
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TeamCentre
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around the
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Ask for a demo today and inject a little
ReMetrica into your business at
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Employer and area of work Towers Watson,
pensions.
How would your best friend describe you? As
having great taste in socks and being rather
protective of my food.
What motivates you? The pursuit of happiness
pretty much sums it all up.
What is your personal motto? Nomen est omen
your name is your omen. As Felix means
lucky, Im pretty much sorted.
Name ve dream companions to be stuck on a
desert island with? Bear Grylls, Ray Mears,
Steve Irwin, etc. Id quite like to make it o the
island alive!
Whats your most actuarial habit? My far too
detailed and analytical budget spreadsheet.
If you could learn one random skill, what would
you learn? How to y a helicopter.
Favourite Excel function? Solver its goal seek
on steroids.
How do you relax away from the o ce? By
practising Krav Maga (an Israeli martial art)
and by going to the gym. I also love travelling
the world, riding motorbikes, and photography
ideally all three combined.
Alternative career choice? Management
consultant or doctor.
Tell us something unusual about yourself Ive
been to all seven continents, I was in the army
for a year, and I managed to chop o the tip of
my ear with a machete once. That was silly.
Greatest risk you have ever taken? Riding
motorbikes, I guess.
If you could go back in history, who would you like
to meet? My parents and grandparents when
they were my age.
Whats your most treasured possession? My
camera - until I decided to leave it in a cab in
Lima recently.
What are the top three things you would like to
achieve in your lifetime? Behappy, have a happy
family, and be remembered for those two things.
If you ruled the world, what would you change
rst? Make airline pricing less volatile.
p38_sept_AOTF_FINALCT.indd 38 26/08/2014 11:23
39
www.theactuaryjobs.com
www.theactuary.com
Appointments
AP P OI NT ME NTS
To advertise your vacancies in the magazine and online please contact:
Emmanuel Nettey +44 (0) 20 7880 6234 or emmanuel.nettey@redactive.co.uk
+44 (0) 207 337 8800 www.hfg.co.uk
Reserving Analyst
30k - 35k Basic, London
A growing Lloyds Syndicate is recruiting into their reserving team. Due to
internal movements this position has arisen in the team. This Syndicate
would consider someone from a Life or Pensions background who have
made good progress through their core actuarial exam. The successful
candidate will have 1 or 2 years experience in a actuarial role from either a
GI, Life or Pensions background. ben@hfg.co.uk
Chief Actuary
Lloyds start up is looking for an Actuary to lead their Actuarial function,
the role will work across pricing, reserving and capital whilst reporting to
the CRO. This person should have the ability to work closely with the
board and underwriters and be confident making business critical
decisions. This is a fantastic opportunity to join a firm in its infant stages.
william@hfg.co.uk
Actuarial Consultant
A leading Big 4 Consultancy is expanding their actuarial advisory service.
This role is a perfect opportunity to take the first step into a consulting
career. The team focuses on topics around Solvency II requirements and
bigger projects involving regulation and risk transformation. You will have
experience within a reserving or capital modelling role and made good
progress through your actuarial exams. ReMetrica / Igloo experience is
highly desirable however not essential.ben@hfg.co.uk
Pricing Assistant Actuary
A medium sized Lloyds Syndicate is hiring an assistant actuary to join their
team. Working across all lines of business this individual will report into
the Head of Reserving and Head of Pricing. This mixed role with gain insight
into both the reserving and pricing team. The successful candidate will
have 3 to 5 years experience in a similar role and the ability to show clear
progression through their actuarial exams. ben@hfg.co.uk
General Insurance Roles
Pricing Actuary
Insurance broker is seeking a nearly/ newly qualified Actuary to join their
team, this person will work closely with both the Chief Actuary and the
brokers. To be considered you must be confident, outgoing and have an
interest in reinsurance pricing. william@hfg.co.uk
Capital Manager
World renowned insurer is looking for a capital manager to join their risk
team. This person will be responsible for delivery and maintenance of the
capital model. The CRO is looking for someone who can communicate well
and see the bigger picture due to the exposure this role has to senior
stake holders. Previous igloo experience is ideal. william@hfg.co.uk
Capital Modelling Analyst
A small Lloyds Syndicate is looking to recruit into their capital team. Due
to a recent acquisition this team is expanding rapidly and has started an
ambitious growth plan. The successful candidate will have 3 to 4 years
experience in a London Market actuarial role with their most recent
experience in capital modelling. ReMetrica experience is highly desirable
however not essential. ben@hfg.co.uk
WILLIAM GALLIMORE
Director
+44 (0) 207 337 8826
william@hfg.co.uk
RUPA PITHIYA
Contract
+44 (0) 207 337 1200
rupa@hfg.co.uk
BEN HICKEY
General Insurance
+44 (0) 207 220 1106
ben@hfg.co.uk
Actuarial Manager
Boutique Insurance consultancy is looking for an Actuarial manager to
help lead their GI team. The right person should have a wealth of
managerial experience and experience across capital modelling and
reserving. This is a unique opportunity to further your career whilst
leading a dynamic and ambitious team. william@hfg.co.uk
Highlighting Opportunities
Finding the right opportunity for you can feel like finding a needle in a haystack. HFGs
Consultants specialise in matching you to the right role at the right company. Call us today
to have a chat about your requirements, and find out what opportunities are available.
p39_ACT.09.14.indd 39 26/08/2014 11:37
40
Appointments
THE ACTUARY August 2014
www.theactuary.com
Visit www.theactuary.com
For the latest news and views, visit
theactuary.com. With high quality
content, useful tools and easy navigation,
you will nd a wealth of actuarial
resources at your ngertips.

Register for weekly email newsletters
Read the latest features and
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Read about actuaries stepping into
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Fresh Thinking
p40_ACT.09.14.indd 40 26/08/2014 11:45
41
www.theactuary.com
London : Chicago : Hong Kong : Singapore : Shanghai
Pension Actuarial Assistant / Student - Manc & Leeds
To c32,000 plus bonus and benets

Working as part of a very highly regarded Actuarial Consulting
team, you will be responsible for delivering professional
pensions consulting advice on a wide range of Corporate and
Trustee pension issues. You will work on a broad range of
projects such as strategy, beneft change, de-risking, buy-outs
/ buy-ins etc, supporting the senior consultants and leading
projects where required. The successful candidate will be
studying for the FIA exams or equivalent and will be making
strong progress toward this. You will possess excellent pension
technical knowledge and have gained previous experience in
working within a pensions consultancy environment.
Contact dan.haynes@ipsgroup.co.uk
+44 161 233 8222
Risk Actuary - Continental Europe
Attractive Salary + Benets Package
A leading reinsurer is looking to hire a qualifed or nearly qualifed
actuary for the risk management team. The main focus of responsibility
includes the aggregate management oI nat-cat, terrorism and other man-
made exposures. You will also calculate the solvency capital required
for the P&C catastrophe risk and will be involved in the underwriting
process from a risk management perspective. The ideal candidate will
have signifcant knowledge in P&C insurance risk management and
Solvency II. Nat-Cat experience is also required. Good knowledge oI
VBA, and programmes such as SAS, Matlab or R would be benefcial.
Contact phu.ngoc@ipsgroup.co.uk
+44 207 481 8686
Pension Actuarial Assistant Manager - Leeds
To c50,000 plus bonus and ex benets
This market leading Actuarial Consulting practice are
looking to augment their team by recruiting an experienced
pensions proIessional who is making signifcant progress
with the FIA qualifcation / equivalent, and who possesses
strong client facing and communication skills. Working on
a wide range of Corporate and Trustee pension issues you
will have responsibility for leading and delivering a range of
smaller projects, guiding the client through the process and
bringing together the necessary internal resource. You will
possess excellent UK pensions technical knowledge and be a
commercially aware individual.
Contact dan.haynes@ipsgroup.co.uk
+44 161 233 8222
Senior Reserving Actuary - Kent
Attractive Salary + Benets Package
Our client, a growing specialist insurer, is looking to hire a
qualifed actuary Ior their actuarial team. The main remit oI
the Senior Reserving Actuary is to produce quarterly claims
reserves and projections for captial required (including ICA
and SCR). Knowledge of ORSA, Solvency II as well as an
understanding of capital modelling (ideally with Igloo) would
be ideal. The company oIIers fexible working arrangements
and a good work-liIe balance. Good communication skills
combined with technical skills are expected.
Contact phu.ngoc@ipsgroup.co.uk
+44 207 481 8686
London Ofce: IPS Group, Bevis Marks House, 24 Bevis Marks, London EC3A 7JB
Telephone: 020 7481 8686 Email: actuarialipsgroup.co.uk

p41_ACT.09.14.indd 41 26/08/2014 11:46
42
Appointments
www.theactuary.com
Your specialist actuarial
recruiter in the UK, Mainland
Europe, and Asia-Pacifc,
with dedicated sector specifc
consultants covering;
Non-Life
Life
Pensions and Investments
For a confdential career
discussion please contact us on
+44 (0)207 332 5870 or
actuarial@mansionhouse.co.uk
Eames Charity Golf Day 2014
Date: Friday 3rd October
Venue: Walton Heath Golf Club
Entry: Free
Eames Consulting are hosting a Charity Golf Day in
support of Cancer Research UK on Friday 3rd October
2014. The day will be held at Walton Heath Golf Club,
Surrey, only 20 miles from London.
Walton Heath, ranked in the top 100 courses in the UK,
is one of the most famous and prestigious golf clubs
in the world. It has hosted nearly ninety amateur and
professional events, including ve European Opens,
The Ryder Cup, the U.S. Open Qualifying and the
Senior Open Championship in 2011. The Worlds top
players have taken on and enjoyed the challenges of the
outstanding heathland Old Course for over a century and
now it is your chance to play this wonderful course.
Entry is free, however we will ask for a donation on
the day and everything collected will benet Cancer
Research UK.
For further enquiries about the event, playing individually
or entering a team; please contact Rob Bulpitt on
020 7092 3237 or rob.bulpitt@eamesconsulting.com
We look forward to hearing from you and thank
you for all your support for this wonderful charity.
Pensions & Investments | Non-Life | Life & Health UK | Europe | Asia Pacic www.eamesconsulting.com
The missing
piece to your
career puzzle
To register for our
Jobs by email service
simply go to
theactuaryjobs.com
p42_ACT.09.14.indd 42 26/08/2014 12:22
43
www.theactuary.com
0207 337 8800 www.hfg.co.uk actuarialteam@hfg.co.uk

Reporting Actuarial Analyst
35k - 50k Basic, Surrey
If you havent yet had the chance to rotate internally within your
company then this is your chance to gain experience in reporting. Given
this is such a integral team in the company, you will be involved in the
quarterly and yearly valuations as well as being mentored by some of
the best actuaries in the industry. sophia@hfg.co.uk
Market Risk Analyst
An opportunity for a Market Risk Analyst with previous experience in
insurance liabilities, financial markets and derivatives to join a large
UK Life Insurer. Your role will be to provide challenge to the risk
management and ALM strategies already being used within the
business. This role offers fantastic opportunities for development and
to take responsibility for risk across all asset classes. erin@hfg.co.uk
Risk Actuary
Up to 1,000 per day, London
A leading London Market (Re)Insurer is looking for an experienced,
qualified actuary to assist the CRO in building and maintaining their
risk framework, quantifying the operational risk model and validating
the capital model and contributing to the ORSA. The successful
candidate will come from a non life insurance background and be
comfortable working on both risk and actuarial projects .
james@hfg.co.uk
Life Insurance Roles
Senior Manager
A leading big four consultancy is looking for a qualified life actuary who
can join their growing life practise. This role would be ideal for
someone who has previous consultancy experience or someone who
would like to gain experience away from an insurer. The successful
candidate will help lead the new projects and be involved in winning
new business. sophia@hfg.co.uk
Contract Roles
Risk Actuarial Analyst
The risk function of this group life insurer is looking to for an ambitious
and driven life actuarial student. You will gain exposure to market risk
and Solvency II and gain a unique insight into the business. The team
consists of actuaries, risk professionals and accountants and so this
role can really broaden you experience. sophia@hfg.co.uk
Reporting Manager (exclusive)
This niche insurer is looking for life actuary to manage their Reporting
team. You will be managing five students and liaising with the Chief
Actuary and WPA to make key decisions within the business. This is
ideal for someone with a breadth of reporting experience who wants
more responsibility and a role where you can get hands on exposure to
the whole business. sophia@hfg.co.uk
Capital Contractor
700 - 900, 18 months, London
A valuable client is looking for an analytical / Solvency II, nearly / newly
qualified actuary, to help develop the analytical capabilities of their
new software. The role also involves producing reports on findings and
providing training and supervising other actuaries. To be successful you
must have a strong knowledge and understanding of the general
insurance market, be familiar with SII requirements in particular with
SII reporting and have a very technical background as well as high level
of communication skills. rupa@hfg.co.uk
Development Manager
60k - 80k Basic, South Coast
This newly created role is a great opportunity for a qualified actuary
looking to work within an evolving systems team. You will get the
opportunity to work with Life and General Insurance systems and
manage a small, diverse team. If you are an experienced modeller,
quick at picking up a variety of systems and enjoy a challenge, then
this is the role for you. sophia@hfg.co.uk
Head of Life Reinsurance
This leading composite reinsurance broker is looking for a qualified
actuary with market experience to lead their growing life reinsurance
team. You will work closely with brokers and actuaries across the
business to get involved in both the technical pricing work and
consulting with new and existing clients. This role is ideal for someone
with a commercial outlook. sophia@hfg.co.uk
Risk Roles
JAMES KITT
Risk Management
+44 (0) 207 337 1202
james@hfg.co.uk
SOPHIA CROSSMAN
Life Insurance
+44 (0) 207 337 1207
sophia@hfg.co.uk
ERIN ODONNELL
Risk Management
+44 (0) 207 337 1202
erin@hfg.co.uk
Reserving Contractor
700 - 900 per day, 6 months, London
This leading Lloyds syndicate is looking for a qualified reserving
contractor for 6 months. The role will work closely with the pricing
function and the ability to communicate with non actuaries is very
advantageous. rupa@hfg.co.uk
Solvency II Actuaries
750 - 1200 per day, 6 - 12 months, London
This leading Insurer is looking to recruit a Solvency II actuary with
Internal Model and regulatory interpretation experience. To be
successful you must have up to date S2 knowledge and know how to
apply it practically to the business as well as experience in reviewing
and challenging the model. rupa@hfg.co.uk
Contractor
700 - 900 per day, 6 months, London
This leading insurer is looking for a contractor, for an initial 6month
period subject to extension to work within their actuarial team. You will
be involved across the business with Pricing, Reserving, Capital and
ERM work. In order to be successful you must have relevant GI
experience. rupa@hfg.co.uk
p43_ACT.09.14.indd 43 26/08/2014 11:50
44
Appointments
www.theactuary.com
Chief Actuary (Life)
Jakarta, Indonesia, Local Exec Pkg
Our client is expanding in Asia, they are seeking a dynamic, people
orientated Life actuary to be the Chief Actuary of their new
operations in Indonesia. The role will be diverse covering key
actuarial responsibilities as well as building and developing the
actuarial team. If you are keen to explore what this opportunity
could offer you please contact clare@hfg.com.sg
Regional ERM Actuary
Hong Kong, Up to HKD$1,300,000 + Bonus + Benefits
An impressive and highly entrepreneurial regional Insurer is
seeking a talented ERM specialist. In this highly autonomous role
you will report to the Regional Chief Actuary and liaise extensively
with senior internal stakeholders across the Asia Pac business. To
be considered you must be a qualified Life Actuary with PQE and
direct ERM experience. Please contact graeme@hfg.com.sg
Prophet Specialists Wanted in Asia
Singapore/HK/China, Dependent on Experience
Our Asian clients are looking for Prophet modellers at all levels!
There is a huge need for skilled financial modellers as Insurers
advance their capabilities to meet increasing customer and
regulatory demands. If you have solid working knowledge of
Prophet especially Prophet ALS we would be keen to hear from
you. Please contact tong@hfg.co.uk
Considering a move to Asia?
Singapore/HK/Malaysia/China/Thailand, Dependent on Experience
The Actuarial Market in Asia Pacific is rapidly growing and we are
keen to connect with you. Whether you are a part qualified
actuary, nearly/newly qualified actuary or post qualified actuary
who comes from either Pricing/Valuation/Risk/Capital
background, it would be great to talk through the potential
opportunities in Asia with you. Please contact tong@hfg.co.uk
Head of Actuarial
Thailand, US$150,000 plus bonus
Global non-life Insurance group is seeking to hire a talented
actuary who is excited to work in a developing Insurance market.
Your CV will demonstrate strong pricing, reserving and capital
modelling skills as well as effective managerial skills, ideally in
international markets. Superb prospects. Email
jason@hfg.com.sg for more information.
Head of Reserving
Singapore, SG$150,000 - $200,000 plus bonus
Global Insurer with an enviable underwriting track record is
seeking a ethnically astute actuary to join its senior management
team as Head of Reserving. The incumbent will be a strong general
Insurance actuary with demonstrable reserving experience and
superb stakeholder management ability. This is a high profile
opportunity for an ambitions professional. jason@hfg.com.sg
Jason Sykes Managing Director EA Reg: R1333193
Clare Bethell Director EA Reg: R1434590
Graeme Braidwood Senior Consultant EA Reg: R1434568
Tong Yu Consultant
www.hfg.com.sg
+65 6829 7153
EA Licence Number: 14C7034
Exposure Management Actuary
A large London market insurer is looking for an Exposure Management Actuary to join their team of six. This
person will be a nearly/newly qualied Actuary with ReMetrica experience and strong skills in SQL. The role will be
overseeing a subsecon of the capital model which oversees all risks to the Group. It is a varied role with cross overs
between tradion Capital Modelling work and Exposure Management.
For more informaon please contact Victoria Cruickshank on 0207 929 7667
Insurance Risk Execuve Advisor (Manager) Life/Non-Life
Leading UK management consultancy rm presently has an opening for a Risk Actuary to join this expanding team.
Typically responsible for delivering advisory engagements and building relaonships new and exisng. Key services
Risk Transformaon, Risk Framework development, Risk Appete, Risk MI, S2, Capital Mgt. Great career step up for
newly CERA qualied actuary. Based in London, salary 60k to 80k
For more informaon please contact Clinton Poore on 0207 929 7667
Risk Actuarial Specialist
UK Based FS company has an opportunity for a nearly / newly CERA qualied actuary to support the Head of
Risk & Compliance. Based in North of England, you will monitor and oversee operaonal risk and support the
business in managing operaonal risk exposure while aligning between operaonal risks modelled and the business
environment. Very small team, hence great exposure to all aspects of Risk Management funcon. Essenally an
internal consulng opportunity. Salary up to 65k.
For more informaon please contact Adam Goodwin on 0207 929 7667
The number 1234 needs
seven words in its usual
English descripon, namely
one thousand two hundred
and thirty four.
What is the smallest whole number which
requires exactly three words?
For your chance to win a prize,
please email your answers to
London@darwinrhodes.com
p44_ACT.09.14.indd 44 26/08/2014 11:55
45
www.theactuary.com
WWW.FENASSOCIATES.COM INFO@FENASSOCIATES.COM | +44 (0)20 3322 7474
Introducing
Jenny Heuvelmans
JENNY FOCUSES ON THE GRADUATE AND JUNIOR
ACTUARIAL AND CATASTROPHE MARKETS
EXCLUSIVE | ACTUARY EXCLUSIVE | ACTUARIAL ANALYST GRADUATE CAT MODELLER X3
Exclusive to Fenchurch, a Lloyds Syndicate
who underwrle u dversned orllolo ol
(Re)nsurunce seeks u Quulned Acluury
wlh 04 yeurs PQL. The role nvolves Culul
Modelling, Pricing and Reserving. Prior
Solvency 2 exerence und Culul benencul.
Lxclusve lo Fenchurch Assocules, u
seculsl (Re)lnsurer s lookng lor un
Acluurul sludenl wlh 6 24 nonlhs
exerence lo underluke u nxed role ol
Reservng, Prcng & Culul lo suorl
Quulned nenbers ol lhe leun. Pror
Lloyds Reservng exerence benencul.
Our client, a leading Lloyds Syndicate is
lookng lor J Cruduules lo work wlhn
lher Cul Munugenenl leun, locusng on
dllerenl LOB. These roles wll sul hghly
numerate and analytical Masters graduates
wlh u scenlnc buckground.
London
Conellve Puckuge
PERMANENT
London
Conellve uckuge
PERMANENT
London
JJ,000
PERMANENT
ON THE MOVE
PLAN YOUR NEXT MOVE
pfJobs
See latest job listings
Create job alerts by email
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CV to your prole
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Go to www.theactuaryjobs.com
p45_ACT.09.14.indd 45 26/08/2014 12:23
46
Appointments
www.theactuary.com
STARVACANCI ES
Antony Buxton FIA
MANAGING DIRECTOR
+44 7766 414 560
antony.buxton@staractuarial.com
M
E
Paul Cook
SENIOR CONSULTANT
+44 7740 285 139
paul.cook@staractuarial.com
M
E
Lance Randles MBA
ASSOCIATE DIRECTOR
+44 7889 007 861
lance.randles@staractuarial.com
M
E
Anton
MANAG
Paul C
SENIOR
La
AS
Joanne Young
OPERATIONS DIRECTOR
M
E
+44 7739 345 946
joanne.young@staractuarial.com
Joa
OPER
A fantastic opportunity to develop and
enhance the ongoing implementation of best
practice financial and insurance risk
management.
SENIOR FINANCIAL RISK MANAGER
up to 90k + bonus + benefits
STAR2065 LIFE & RISK MIDLANDS
World leader in reinsurance is seeking a
qualified life actuary with reinsurance pricing
experience and strong interpersonal skills to
make a difference within its London-based
team.
REINSURANCE ACTUARY
excellent + bonus + benefits
STAR2064 LIFE LONDON
Seeking a technically strong life actuary to
take up a key role. Candidates with strong
management skills and a thorough grounding
in UK life insurance from a wide variety of
backgrounds will be considered.
TECHNICAL MANAGEMENT ACTUARY
STAR1947 LIFE BRISTOL
A leading global insurer has a number of
vacancies for qualified life actuaries, providing
exposure to Solvency II, excellent career
development potential and interaction with the
wider business.
SOLVENCY II OPPORTUNITIES
STAR1961 LIFE SOUTH WEST
An exciting opportunity for a qualified actuary
to join this financial analysis team, where you
will provide senior actuarial input to profitability,
capital and other metrics during the planning,
budgeting and forecasting process.
SENIOR MANAGER - ACTUARIAL ANALYSIS
STAR1954 LIFE EDINBURGH
Work in a dynamic consultancy offering risk
consultancy services in a global market. As a
qualified actuary, you will have considerable
responsibility within client engagements and
will identify new business opportunities.
RISKY BUSINESS
STAR2016 LIFE & RISK LONDON
This position is responsible for managing and
mentoring a team of 4-5 staff and providing
expert knowledge on UK actuarial valuations,
reporting requirements and the use of
Prophet.
ACTUARIAL TEAM MANAGER
STAR2082 LIFE GREATER LONDON / SOUTH EAST
Seeking a qualified life actuary and risk expert
to deliver recommendations and solutions to
business problems. Flexibility in approach and
strong communication skills required.
RISK ACTUARY
STAR2079 LIFE & RISK SOUTH COAST
Offering exceptional life actuaries the
opportunity to create a role for themselves. Tell
us your strengths and build a fantastic career
within a growing, ambitious company.
INTERNATIONAL EXPANSION
depends on experience
Global management consulting firm is seeking
exceptional insurance actuaries from any
sector to join in its success. You will have a
proven track record of excellence and a strong
desire to move into a strategic role.
STRATEGY LEADER
STAR2026 LIFE LONDON
An exciting opportunity for a qualified actuary
to provide technical expertise and advice in
this specialist actuarial area supporting the
Planning & Financial Solutions Manager in the
preparation of the annual Capital Plan.
PLANNING & FINANCIAL SOLUTIONS
STAR2043 LIFE SOUTH COAST
Seeking a qualified life actuary to provide
advice to a wide range of clients on risk
management and economic capital
frameworks. Fluent German is essential.
LIFE CONSULTING SWITZERLAND
CHF excellent + bonus + benefits
STAR2077 LIFE SWITZERLAND
Our client has an exciting opportunity for a risk
expert to support the Head of Risk and
Compliance in monitoring and overseeing
operational risk and supporting the business in
managing its operational risk exposure.
RISK ACTUARIAL SPECIALIST
depends upon experience
STAR2046 LIFE & RISK NORTH WEST
Global financial services company has an
exciting opportunity for a qualified life actuary
to oversee the independent review and
challenge of the Solvency II Internal Model.
LIFE ACTUARY - MODEL VALIDATION
STAR1988 LIFE LONDON/SOUTH EAST/SCOTLAND
Seeking a life expert to become involved in the
core activities of the Actuarial Reporting Team,
managing the production of actuarial results
and analyses, whilst maintaining and updating
relevant process and models.
REPORTING ACTUARY
STAR2031 LIFE BRISTOL
Apply your skills in projects reaching beyond
traditional actuarial boundaries. Lead teams,
build strong client relationships and contribute to
the growth of the practice. You will be an expert
in your chosen area.
DIRECTOR LEVEL LIFE CONSULTANT
STAR2080 LIFE LONDON / EDINBURGH
LI FE
RI SK
Seeking a commercially-minded and technically
adept part-qualified actuary to provide actuarial
expertise within the Research and Development
team, focusing on the design, development and
implementation of new and innovative products.
ACTUARIAL ASSISTANT - MARKETING
Global consultancy seeks adaptable part-
qualified and qualified life actuaries wishing to
gain a wide range of experience. Provide technical
input, manage client relationships and lead
high-performing teams in these fulfilling roles.
LIFE CONSULTANCY
STAR2014 LIFE NATIONWIDE
p46-47_ACT.09.14.indd 46 26/08/2014 14:24
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Louis Manson
MANAGING DIRECTOR
M
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+44 7595 023 983
louis.manson@staractuarial.com
Irene Paterson FFA
PARTNER
M
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+44 7545 424 206
irene.paterson@staractuarial.com
Lou
MAN
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PAR
Clare Roberts
SENIOR CONSULTANT
+44 7714 490 922
clare.roberts@staractuarial.com
M
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Peter Baker
SENIOR CONSULTANT
+44 7860 602 586
peter.baker@staractuarial.com
M
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Peter
SENIOR
LI FE
RI SK
HEALTH
PENSI ONS
I NVESTMENT
Our client is seeking a qualified healthcare pricing
actuary with a strong technical background and
good commercial awareness. You will lead projects,
generate solutions, and work with senior stakeholders
in supporting strategic business solutions.
HEALTHCARE PRICING ACTUARY
competitive + good bonus + benefits
STAR2078 LIFE & HEALTH GREATER LONDON
Leading life company seeks a qualified actuary to
lead the ongoing design, implementation and
management of the Risk Framework and
associated policies, control standards, processes
and reporting, with emphasis on Financial risks.
ENTERPRISE RISK ACTUARY
STAR2050 LIFE & RISK SOUTH EAST
Working in a friendly team, this position is
responsible for assisting with annual and
interim valuations, changes to Prophet models
and Prophet upgrades.
ACTUARIAL ASSISTANT
STAR2081 LIFE GREATER LONDON / SOUTH EAST
Seeking a part qualified life actuary to apply
quantitative skills and knowledge to identify,
analyse and solve business issues whilst
maintaining an understanding of quantitative
systems, techniques and methodologies.
LIFE ANALYST - CAPITAL & PLANNING
STAR2040 LIFE SOUTH COAST
One of the UK's leading companies has a
fantastic opportunity for a part-qualified life
actuary to review product charges and
profitability, as well as recommend
improvements to existing product features.
ACTUARIAL PRICING
STAR1973 LIFE MIDLANDS
Leading pensions consultancy has an exciting
opportunity for a part-qualified or qualified
actuary with strong technical skills and
communication skills to make an impact within
its buy-out team.
ACTUARY - PENSIONS BUY-OUT
STAR1982 PENSIONS BIRMINGHAM
Leading practice seeks part-qualified or qualified
actuaries with investment consultancy
experience to join a growing team. You will have
strong technical and client facing skills.
INVESTMENT CONSULTANTS
very competitive
STAR1984 INVESTMENT EDINBURGH
Global multi-disciplinary financial services
group seeks a qualified actuary with experience
of contributing to the delivery of defined benefit
pension workstreams to work on challenging
projects for high-profile clients.
PENSIONS CONSULTANT
STAR1942 PENSIONS LONDON
Major global professional services company
is seeking a pensions consultant to be
instrumental in designing and maintaining a
range of internal and external consulting tools at
the leading edge of technological advances.
LEADING EDGE PENSIONS CONSULTANT
STAR1957 PENSIONS BRISTOL
Global financial services firm seeks part-
qualified pensions actuaries to support the
defined benefit and defined contribution pension
plan design for a wide range of clients, ensuring
alignment with the wider total reward strategy.
RETIREMENT CONSULTANTS
Leading pensions consultancy is seeking a part
qualified actuary to handle the preparation of
actuarial valuations; and undertake accounting
disclosures (FRS17, IAS19 and USGAAP).
ACTUARIAL PENSIONS ANALYST
STAR2045 PENSIONS MANCHESTER
A unique opportunity for a pensions actuary
with significant business development
experience to build a trustee practice for a
leading consultancy.
MARKET-FACING SCHEME ACTUARY
excellent package
Leading independent consultancy seeks
qualified pensions actuary to provide a high-
quality service to clients, lead new business
pitches, provide strategic input and contribute
to the technical knowledge of the practice.
PENSIONS ACTUARY
STAR1983 PENSIONS BIRMINGHAM
Seeking a part-qualified actuary and a
candidate who has given up the exams. Both
candidates will have strong technical skills in
order to provide support to a wide variety of
UK defined benefit pension schemes.
PENSIONS ANALYST AND TECHNICIAN
competitive + bonus + benefits
STAR1990 PENSIONS SOUTH WEST
Global financial services firm seeks a talented
individual with creativity and intellectual rigour
to join a multi-disciplinary team where you will
provide advice to employers on pensions and
other employee benefit issues.
PENSIONS AND BENEFITS MANAGER
excellent package
STAR2027 PENSIONS MANCHESTER
Our client is seeking a part-qualified transition
specialist with exceptional attention to detail and
project management skills to develop the
Investment Advisory teams knowledge on asset
transitions and contribute to intellectual capital.
INVESTMENT-TRANSITIONS SPECIALIST"
STAR2060 INVESTMENT NATIONWIDE
Seeking a part-qualified actuary with
experience in UK pension fund investment
consultancy or a background in a pensions
consultancy, with some direct experience in an
investment advisory role.
INVESTMENT CONSULTANT
STAR2036 INVESTMENT LONDON
Leading financial services firm has an exciting
opportunity for a part-qualified actuary to provide
strategic advice, helping clients to determine the
appropriate mix of risk and return and the
optimum use of capital to fund pension liabilities.
INVESTMENT RISK SOLUTIONS
STAR2024 INVESTMENT LEEDS
p46-47_ACT.09.14.indd 47 26/08/2014 14:24
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Appointments
www.theactuary.com
Niche insurer seeks a non-life expert to drive
broker price optimisation and underwriting
workstreams. Work with the business as you
lead reporting and analytics projects, and
develop a robust and competitive insurer panel.
PRICE OPTIMISATION EXPERT
STAR1999 NON-LIFE SOUTH WEST
Leading consultancy seeks exceptional
actuaries to join its growing analytics team.
You will develop an impressive range of
consulting and technical skills that will
enhance your career.
MOVE INTO ANALYTICS
STAR2062 NON-LIFE LONDON
Leading insurer is seeking a qualified non-life
actuary to establish best pricing practice in its
international operations, and to set rates as
profitably as possible given specific market
conditions.
INTERNATIONAL PRICING MANAGER
STAR2061 NON-LIFE WALES
Opportunities for part-qualified or qualified
actuaries to join a leading firm, providing
high-quality consulting services to wide-ranging
clients. Develop your technical and softer skills
every day within a variety of projects.
NON-LIFE CONSULTANCY
STAR2015 & STAR2013 NON-LIFE LONDON
Leading financial services group seeks a
part-qualified or qualified pricing expert to
contribute towards the delivery of appropriate
pricing for commercial lines business
strategies and objectives.
PRICING EXPERTISE
STAR1941 NON-LIFE SOUTH EAST
With a broad technical skill-set and strong
consulting skills, you will work alongside
leading industry practitioners, delivering
cutting-edge solutions to clients across the
London Market.
NON-LIFE CONSULTANT
STAR2057 NON-LIFE SOUTH EAST OR LONDON
Lead projects and develop market leading
pricing capabilities within this high profile
consulting position. With a strong focus on the
latest analytics techniques, you will have
experience within personal lines.
PRICING CONSULTANT
Specialist insurer is seeking a part-qualified or
qualified actuary to maintain and develop its
internal model so that it continues to reflect
the risk profile.
LONDON MARKET CAPITAL
Leading insurer has an unrivalled opportunity
for a qualified non-life expert to lead the
constructive challenge and oversight of the GI
business to ensure all its risks are managed in
accordance with policies and risk appetite.
HEAD OF NON-LIFE FINANCIAL RISK
STAR2047 NON-LIFE & RISK FLEXIBLE LOCATION
Leading insurer is seeking a part-qualified or
qualified non-life actuary, with an underwriting,
pricing or capital background in motor
insurance, to be responsible for the second-
line oversight within its risk function.
GI BUSINESS RISK MANAGER - MOTOR
STAR1986 NON-LIFE & RISK LONDON
Global insurer and financial services company
seeks a qualified non-life actuary to lead the
actuarial input into the Commercial lines of
business, including quarterly reserving, pricing
and business planning.
COMMERCIAL ACTUARY
An excellent opportunity to join one of the
UKs leading general insurers. Use your
existing non-life experience to optimise risk
management controls and help to deliver the
companys financial risk strategy and plan.
ACTUARIAL ANALYTICS MANAGER
STAR1972 NON-LIFE GREATER LONDON
SENIOR PRICING MANAGER
Leading insurance group is seeking a qualified
non-life actuary to take responsibility for
pricing decisions across all lines of business to
improve rating structures, risk and operational
costs, and price optimisation.
FIRST ACTUARY IN THE BUILDING
excellent + benefits
STAR1993 NON-LIFE SCOTLAND
We are working on a new role based in
Scotland for a qualified non-life actuary to
build internal capability in capital modelling,
pricing and reserving. A unique opportunity.
STARVACANCI ES
Antony Buxton FIA
MANAGING DIRECTOR
+44 7766 414 560
antony.buxton@staractuarial.com
M
E
Paul Cook
SENIOR CONSULTANT
+44 7740 285 139
paul.cook@staractuarial.com
M
E
Lance Randles MBA
ASSOCIATE DIRECTOR
+44 7889 007 861
lance.randles@staractuarial.com
M
E
Anton
MANAG
Paul C
SENIOR
La
AS
Joanne Young
OPERATIONS DIRECTOR
M
E
+44 7739 345 946
joanne.young@staractuarial.com
Joa
OPER
NON- LI FE
RI SK
Our client seeks a part-qualified non-life
actuary with strong risk and capital experience
to design, develop and implement cutting-edge
modelling solutions.
RISK AND CAPITAL MODELLING
STAR1969 NON-LIFE & RISK SOUTH EAST
ERM OPPORTUNITIES
STAR1920 NON-LIFE EAST ANGLIA
Our client has a number of exciting opportunities
for talented finance or insurance professionals to
review, challenge and catalyse improvements to
the management/mitigation of risk within a
leading insurance business.
PRICING - PROPERTY AND CASUALTY
Our client is looking for a qualified actuary with
commercial pricing experience to strengthen
its actuarial pricing team, deriving appropriate
technical premiums and underwriting analytics
to support the UK business.
RESERVING - PROPERTY AND CASUALTY
Our client has an exciting opportunity for a part-
qualified or qualified actuary with GI Solvency II
reserving experience to develop market-leading
technical provisions methodologies and provide
key actuarial business planning insights.
p48-49_ACT.09.14.indd 48 26/08/2014 14:20
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www.theactuary.com
LONDON MARKET SPECIALIST
STAR2039 NON-LIFE & RISK GREATER LONDON
An exciting opportunity for a part-qualified
non-life actuary to move into a risk role. You
will use your existing GI experience allied to
strong analytical capabilities to provide second
line oversight and identify risk trends.
LLOYDS CAPITAL MODELLING / RESERVING
A great opportunity for a qualified non-life
actuary with London Market or Lloyds
reserving and / or capital modelling experience
to join a market leading consultancy.
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Louis Manson
MANAGING DIRECTOR
M
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+44 7595 023 983
louis.manson@staractuarial.com
Irene Paterson FFA
PARTNER
M
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+44 7545 424 206
irene.paterson@staractuarial.com
Lou
MAN
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PAR
Clare Roberts
SENIOR CONSULTANT
+44 7714 490 922
clare.roberts@staractuarial.com
M
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Peter Baker
SENIOR CONSULTANT
+44 7860 602 586
peter.baker@staractuarial.com
M
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Peter
SEN S IOR
NON- LI FE
RI SK
GI RESERVING EXECUTIVE
STAR2028 NON-LIFE MIDLANDS
Our client has an exciting opportunity for a part
qualified or qualified non-life actuary to provide
support, solutions, recommendations and advice
to the GI business on a range of reserving and
other financial projects.
PRINCIPAL ANALYST - HOME PRICING
STAR1965 NON-LIFE GREATER LONDON/SOUTH EAST
Our client is looking to hire a part-qualified
non-life actuary to join its Pricing team. The
role offers an opportunity to mentor more
junior members of the team and deputise for
the Manager as required.
PRICING ANALYST
With a focus on home insurance products, you
will apply your statistical, data handling, and
analytical skills to understand and explore
customer behaviour, with a view to maintaining
competitive advantage in the marketplace.
FINANCIAL LINES RESERVING LEAD
International insurance firm is seeking a
part-qualified or qualified non-life actuary to
take a leading role in reserving for financial
lines, including significant liaison with the
claims team.
PRICING MANAGER
competitive
With an innovative and commercial mindset,
strong analytical skills and a focus on customer
needs, you will take ownership of an entire
product line in this exciting and challenging
role within a fast-growing organisation.
ACTUARIAL PRICING - NON-LIFE
STAR1946 NON-LIFE MIDLANDS
Leading financial services firm has a unique
opportunity for a part qualified or qualified
actuary to provide support and solutions to the
GI business on a range of pricing and other
financial projects.
LONDON MARKET PRICING
excellent package
We have an exciting opportunity for a
high-calibre part-qualified non-life actuary with
pricing experience to join a leading London
Market insurer. Please contact us for more
information on this new role.
ACTUARIAL RECRUITMENT CONSULTANTS
market leading commission structure LOCATION: ANYWHERE
Star Actuarial Futures is seeking exceptional new consultants to expand its award-winning team.

You will currently be working as an actuary or actuarial student in industry, working with an actuarial recruitment
consultancy firm, or working in-house with exposure to actuarial recruitment.

Candidates must possess a strong work ethic, the highest levels of integrity and a passion to deliver to a wide range of
clients.

You will become part of an honest, professional and successful team with a wealth of knowledge to share.

You will be rewarded with a market-leading commission structure.

This is an exciting time to join the business in a period of growth.

Please contact us for a confidential discussion.
Antony Buxton FIA MANAGING DIRECTOR
M +44 7766 414 560 E antony.buxton@staractuarial.com
Louis Manson MANAGING DIRECTOR
M +44 7595 023 983 E louis.manson@staractuarial.com
p48-49_ACT.09.14.indd 49 26/08/2014 14:20
Retail Actuary
Sarah Robins
London
120,000 + Bonus + Benets
A large retail insurer is seeking a qualied Actuary to join their team.
The role involves managerial responsibilities for a team of students
and qualied actuaries. You must be commercially minded and
demonstrate strong pricing techniques. GLM and/or telematics ex-
perience would be advantageous.
Head of Group Risk Modelling
Paul Francis
London (City)
Up to 120,000
A well respected London Market organisation is looking to recruit a
Head of Group Risk Modelling. You will have a strong cat modelling
background (RMS experience preferable), outstanding communica-
tion skills and the ability to man manage.
GENERAL INSURANCE - UK
ERM Actuary
Rob Bentham
London (City)
Up to 110,000
An up-and-coming London Market syndicate business is looking
for an ERM Actuary to join their growing team. You will be a quali-
ed Actuary with a capital background who is looking to move into
a more risk focussed role.
Exposure Management Actuary
Rob Bentham
London (City)
Up to 80,000
A very rare opportunity has become available with a leading Lon-
don Market business. This job role encompasses both capital and
risk responsibilities as well as contact with a wide range of senior
stakeholders.
Retail Actuary
Sarah Robins
South West
80,000 + Bonus + Benets
A leading specialist insurer is seeking a senior Actuary. You will play
a senior role in the pricing function and be inuential in key busi-
ness and commercial decisions. You will be working closely with
the underwriters, you must have good GLM experience and good
exposure to emblem. Actuarial qualications are desirable but not
essential. Flexibility around home working for this position.
Reserving Actuary
Ross Anderson
London
Up to 50,000 + Bonus + Benets
Im working with a prestigious London Market insurer looking for
actuarial students to join their reserving team. This is an excellent
opportunity for an ambitious part-qualied Actuary looking to gain
exposure to syndicate business. Candidates from varied actuarial
backgrounds will be considered.
CONTRACTS - GENERAL INSURANCE - UK
Commercial Analyst
Elise Ogden
South West
Fixed Term Contract
Our client, a large international insurer is seeking a Commercial
Analyst on a xed term basis. Candidates must have strong analyti-
cal and modelling skills. A background in personal lines insurance
would be preferable.
Documentation Roles
Elise Ogden
London
600 - 1,000/day
We are working with a number of insurers who are seeking actuar-
ies to assist in the production of documentation for Solvency II.
Candidates must have capital model validation experience.
Qualied Reporting Actuary
Hugo Chambers
Greater London
65,000 - 75,000 + Bonus + Benets
Fantastic opportunity for a qualied life Actuary to join the recently
restructured nance function of this leading organisation in London.
They are looking for a qualied Actuary with experience in nancial
reporting and an understanding of Solvency II requirements.
Risk Actuary
Clare Nash
Birmingham
85,000 + Package
An usual position has arisen within a multinational rm. My client
seeks to appoint a qualied Actuary with a wealth of capital/risk
management exposure. Highly visible across the group which will
elevate your prole.
Senior Consultant - Modelling/Systems
Richard Howard
London
45,000 - 80,000 + Bonus + Benets
Unique opportunity to join a leading consultancy in London, with a
focus on actuarial modelling, systems and software development.
They are looking for candidates at all levels and specically inter-
ested in Prophet, MoSes and/or other systems experience.
Economic Capital Actuary
Richard Howard
London
65,000 - 75,000 + Bonus + Benets
Excellent opportunity for a qualied Actuary to join the economic
capital team of this leading group ofce in London. Unique opportu-
nity to work with an industry leading team. You will be qualied and
have experience of Solvency II and Reporting.
Capital Actuary - Exclusive to OJ
Clare Nash
London (City)
75,000 + Package
EXCLUSIVE APPOINTMENT: - My client would like to speak to tech-
nically astute actuaries who would like to fast track their careers.
The role in question encompasses ICA, Risk and SII work at the
highest level. Outstanding career development.
Senior Strategy Manager
Natalie Lightfoot
South East
90,000 - 100,000 + Bonus + Benets
My market leading client is looking for a Senior Strategy Manager to
lead the strategic planning process for their retirement division. This
is fantastic opportunity to act as a business partner to the different
business units and have inuence over the direction of the division.
Candidates must have an understanding of the retirement market
and previous experience of competitor analysis.
LIFE INSURANCE - UK
Risk Calibrations Actuary
Kaylash Kukadia
London & South West
Up to 1200/day
We are looking for Actuaries with a statistical background and expe-
rience of calibrating risks for the internal model. Please get in touch
for more information on this role.
EV Project Actuary
Benjamin Moses
London
600 - 900/day
I am currently working with one of the worlds leading life insurers
to help them establish a project team to implement EV into their
business reporting structures. This is an exciting global project and
one which requires PQ to qualied actuaries with a variety of skills.
Please contact me for me details on the project.
CONTRACTS - LIFE INSURANCE - UK
p50-51_ACT.09.14.indd 50 26/08/2014 12:06
Director, Capital Management
Rhoda Rivera
Hong Kong
Competitive
Global life insurer seeks a qualied UK Actuary to head up their capital management
across Asia. 15 years+ experience required with a strong combination of technical
knowledge and the ability to inuence and work with senior stakeholders.
Head of Actuarial
Toby Weston
Malaysia
Competitive
My client is a major European insurer with a strong G.I. book in Malaysia. Due to chang-
ing regulations they are seeking an experienced Actuary to oversee all actuarial duties.
Strong communications, technical skills and team management required.
Director
Hamza Mush
Singapore or Hong Kong
Competitive
Incredibly unique and high prole position; seeking a very senior qualied and commer-
cial UK Actuary with deep expertise in prots to work with the most senior leaders of the
business in driving their most advanced technical projects across Asia.
Director
Philip Chau
Hong Kong
Competitive
A leading multinational insurer is seeking an experienced Actuary to drive exciting proj-
ects (capital, ALM, IFRS, product strategy, etc.) within the business. As you will be lead-
ing a large team previous managerial experience is a must.
General Insurance UK
Paul Francis 0207 649 9469
Rob Bentham 0207 649 9351
Sarah Robins 0207 310 8552
Rachel Kelly 0207 310 8579
Ross Anderson 0207 649 9357
Contracts - G.I. - UK
Elise Ogden 0207 649 9355
Life Insurance - UK
Clare Nash 0207 649 9350
Richard Howard 0207 649 9356
Natalie Lightfoot 0207 310 8547
Hugo Chambers 0207 310 8642
Contracts - Life Insurance - UK/Europe
Benjamin Moses 0207 310 8793
Ani Pannell +353 144 75975
Kaylash Kukadia 0207 310 8581
Asia
Gary Rushton +852 5804 9223
Toby Weston +852 5804 9042
Philip Chau +852 5804 9287
Hamza Mush +852 5804 9048
Rhoda Rivera +852 5804 9225
France
Emrique Opou +33 1 76 77 46 30
Agathe Ibazizen +33 1 76 77 46 31
Ireland
Patrick McMahon +353 1 437 0625
Benelux
Niels van Nieuwkerk +31 20 716 8327
Laurence Baken +32 24 012 249
Germany
Manuel Lovell +49 89 2109 3362
Emina Biscevic +49 89 3803 8965
Alessio Montaruli +49 89 2109 3339
Switzerland
Audrey Dresen +41 43 508 0444

Please contact one of the team for further
information on any of the opportunities
above or visit www.ojassociates.com/jobs
Pricing Actuary
Toby Weston
Hong Kong
Competitive
One of Asias leading P&C insurers seeks a Pricing Actuary to join their regional team in
Hong Kong. Exceptional opportunity to work on all business lines covering both product
development and pricing, with signicant senior management interaction.
Director Product Strategy
Gary Rushton
Hong Kong
Competitive
Highly visible and commercial role; driving the product development and commercial ini-
tiatives for my clients life and health business across Asia. The successful candidate will
have experience of presenting at board level and strong actuarial product knowledge.
Head of Health
Emina Biscevic
Germany
Competitive
Leading reinsurer is currently seeking a Head of Health. You will lead and support a team
of six healthcare professionals. You will be responsible for implementing a reinsurance
strategy aimed at developing a reinsurance business plan for two global subsidiaries.
Senior Actuary
Niels van Nieuwkerk
Amsterdam
Competitive
Our client is a large credit risk insurance group with a presence in over 20 countires
worldwide. The company seeks to recruit an Actuary with extensive P&C experience.
This is an exciting reserving position with exposure to IFRS 4 phase 2.
General Insurance Actuaries
Patrick McMahon
Dublin, Ireland
All Salary Levels
I am working with excellent clients on some exciting general insurance opportunities in
Dublin. These roles are across all areas including reserving, capital and pricing. Please
get in touch if you are actively interested or just keen to receive market updates.
Risk Model Validation Consultant
Laurence Baken
Brussels
Competitive
You will join an international consultancy of model validation experts. Solid numerical
background, possibly PHD with modelling/validation experience in an ALM or risk man-
agement department is required. You will contribute to innovative validation methodolo-
gies within a fast paced environment with a global reach.
Head of Non-Life Capital
Alessio Montaruli
Milan
Negotiable
Head of Group Non-Life Capital required. Coordination of group wide calculation process
of UW risk capital gures, the calibration for models & a contribution to the quantitative
risk reporting. Sound knowledge of ResQ, Igloo or other statistical softwares preferred.
Reporting Actuary
Ani Pannell
Dublin
550 - 750/day
My client seeks nearly/newly qualied and qualied actuaries, the ideal candidate will
have at least ve years of actuarial life experience and signicant reporting exposure.
Previous work with Solvency II and Prophet will be a signicant advantage to applicants.
ASIA
EUROPE
E actuary@ojassociates.com
W www.ojassociates.com
@OJAssociates
oliver-james-associates
General Contact Details:

p50-51_ACT.09.14.indd 51 26/08/2014 12:06
The Actuarial Recruitment Company
A general insurance actuary around the nearly or newly qualified level is
required for this Lloyds operation to support risk management, model
validation and implementation of Solvency II within the business. The
client is looking for a motivated and self managed individual able to
work in a fast paced and adaptable environment. Candidates must have
solid Solvency II and capital adequacy experience. Strong interpersonal
skills are needed and some knowledge of reserving and pricing also
desirable. Ref: ARC26259
ERM Actuary General Insurance
London To 100K
A Group Chief Actuary is required for this London Market operation
with responsibilities across pricing, reserving and capital areas. The
role provides the opportunity to work in a friendly, professional and
supportive environment. This developing business is looking for an
ambitious, strategic thinking and dynamic general insurance actuary
who has previous experience from a Lloyds or other London Market
company. Ref: ARC26258
Group Chief Actuary General Insurance
London Significant
This reinsurance business in Bermuda is looking for a nearly or newly
qualified actuary to work in a small team and take on responsibilities
across reserving and capital work. The business is part of a larger
financial group and so the role will have interaction with teams
elsewhere. The client is a looking for a proactive and hands on
individual, able to think for themselves and someone who is keen to
join a growing business. Ref: ARCBermuda
Capital and Reserving Actuary General Insurance
Bermuda $Excellent
This varied role as Company Actuary for a Scottish based operation
will include reserving and business planning, product development
and underwriting/pricing, advice on reinsurance strategy, production
of management information and liaison with external consultants. The
client is looking for a qualified actuary with broad general insurance
experience who is a commercial and strategic thinker able to
influence senior management. Ref: ARCScotland
Company Actuary General Insurance
Scotland Competitive
Call us anytime including evenings and weekends on 020 7717 9705 or email enquiries@the-arc.co.uk
Andy Clark BSc FIA 0781 333 7891 andy@the-arc.co.uk
Roger Massey BSc MBA FIA 0781 398 9016 roger@the-arc.co.uk
The Actuarial Recruitment Company is an employment agency
www.the-arc.co.uk
A fresh approach
p52_ACT.09.14.indd 52 26/08/2014 12:09

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