Change is Constant Malcolm Slee June 2021 Change

Change is Constant Malcolm Slee June 2021

Change is Constant Agenda Introduction New Opportunities 1 Whenever / Wherever Regulatory Interlude New Opportunities 2 New Product Summary June 2021 2

Change is Constant What is the connection? Stage 3 is an annual requirement to complete two hours of Professional Skills Training which may be acquired by attending events, by completing an on line activity or by a combination of both. June 2021 3

Change is Constant Objectives In order to qualify as Stage 3 training the activity should enhance the member’s understanding of an actuary’s professional obligations and achieve one or more of the key objectives. In essence – be ethical. What does ethical mean? 1. pertaining to or dealing with morals or the principles of morality; pertaining to right and wrong in conduct. 2. being in accordance with the rules or standards for right conduct or practice, especially the standards of a profession June 2021 4

Change is Constant Agenda Introduction New Opportunities 1 Whenever / Wherever Regulatory Interlude New Opportunities 2 New Product Summary June 2021 5

Change is Constant The company is going to have a new operating model You may have: • The same job as before • Same job with new aspects • New members of the team • New job People Technology TOM Process Is it all what you thought? Let’s consider a situation June 2021 6

Change is Constant Video: Impartiality June 2021 7

Change is Constant June 2021 8

Change is Constant What do you think of Jennifer’s response ? What do you think of her subsequent conclusion? What did you think of Charles’ conduct? What about the company’s stance? June 2021 9

Change is Constant More generally? Do we ask people to take on work without considering if they will be comfortable with it? What would you do if you were asked to do something you were unhappy about? June 2021 10

Change is Constant The Actuaries’ Code Competence and Care: Members will perform their professional duties competently and with care. June 2021 11

Change is Constant The Actuaries’ Code Impartiality: Members will not allow bias, conflict of interest, or the undue influence of others to override their professional judgement. 3. 1 Members will ensure that their ability to provide objective advice to their clients is not, and cannot reasonably be seen to be, compromised. June 2021 12

Change is Constant What about the other way round. The junior actuary is more than happy to do the job. But………… June 2021 13

Change is Constant He produces a report that you are to review. It quickly becomes clear to you that the report is completely useless. It’s not that a lot of work hasn’t been put into the report – it has – or that calculations have not been performed accurately – they have – but unfortunately he has clearly completely missed the point of the report. Most of what he has produced is just irrelevant to the purpose of the report. You have a meeting booked with him in ten minutes to talk about the report. What should you say to him? June 2021 14

Change is Constant The Actuaries’ Code Integrity: Members will show respect for others in the way they conduct themselves in their professional lives. June 2021 15

Change is Constant Agenda Introduction New Opportunities 1 Whenever / Wherever Regulatory Interlude New Opportunities 2 New Product Summary June 2021 16

Change is Constant The conclusion is you will do the right thing …… always E TH ING O D T TH H RIG So let’s consider a few examples June 2021 17

Change is Constant Your friend, who doesn’t work at your company, asks you what is the best way of saving for retirement. An actuary, without identifying himself as an actuary, gives his opinion about various types of motor insurance policy in an internet forum. Your team goes to a restaurant for the Christmas meal. One of the actuaries has a few too many drinks and ends up insulting some other diners. June 2021 18

Change is Constant The scope of The Actuaries’ Code says: The Code applies at all times to members’ conduct in their work as actuaries, but will also be taken into consideration where their conduct in other contexts could reasonably be considered to reflect on the profession. Int egr ity ete nce &C Im par are tial Co i ty mp l Co mm iance uni cat ion Co mp June 2021 19

Change is Constant Agenda Introduction New Opportunities 1 Whenever / Wherever Regulatory Interlude New Opportunities 2 New Product Summary June 2021 20

Change is Constant • APS X 2 COMPLIANCE ALERT • Practising Certificates • TAS 100 • Quality Assurance Scheme (QAS) • Solvency II June 2021 21

Change is Constant Agenda Introduction New Opportunities 1 Whenever / Wherever Regulatory Interlude New Opportunities 2 Model Change Summary June 2021 22

Change is Constant Diversity Key theme of Nick Salter’s (immediate past president) presidential year June 2021 23

Change is Constant Picture this Company looking to expand. CEO decides that now is the time to go further afield again into the Gulf in connection with local firm. He asks CFO and CRO who would be a good choice to oversee setting up a proper Risk Function out there. June 2021 24

Change is Constant They conclude the perfect choice is female ERM director, Jacqui for a 1 year secondment. They discuss with her and she is very keen to do it and all is set. The local firm are in agreement. THEN ……………… June 2021 25

Change is Constant The locals had thought Jacquie was a man. Once they find out - they say it just won’t work and we must send a man. June 2021 26

Change is Constant SO WHAT DO WE DO? Still send her? Send someone else? Something else? June 2021 27

Change is Constant Agenda Introduction New Opportunities 1 Whenever / Wherever Regulatory Interlude New Opportunities 2 New Product Summary June 2021 28

Change is Constant Your company is about to launch a new product Your actuarial team has done the pricing It has a characteristics which means it should sell well and make a healthy profit. What could possibly go wrong? June 2021 29

Change is Constant Video: How Far Do You Go June 2021 30

Change is Constant June 2021 31

Change is Constant What are the issues? Is it the actuary’s responsibility? What could she have done? June 2021 32

Change is Constant There are several areas of The Actuaries’ Code that are relevant here: • Impartiality • Compliance • Communication June 2021 33

Change is Constant Agenda Introduction New Opportunities 1 Whenever / Wherever Regulatory Interlude New Opportunities 2 New Product Summary June 2021 34

Change is Constant Fiona Morrison’s presidential theme Promote the Profession June 2021 35

Change is Constant KEEP The IFo. A will aim to support you. And remember RIGHT June 2021 36

QU AN ES Y TI ON CO O MM R S EN TS ? Expressions of individual views by members of the Institute and Faculty of Actuaries and its staff are encouraged. The views expressed in this presentation are those of the presenters. June 2021 37