The Transformation of the UK Actuarial Profession Or
- Slides: 16
The Transformation of the UK Actuarial Profession Or, Remaining Relevant in a Changing World? By Adrian Saunders
The Profession in 1980 Not much had changed in 30 years
Life Industry • • With Profits and mutual offices Statutory Roles Status in Management Regulated by DTI, delegated to the GAD • Participation in the profession encouraged
Examples from Life Industry -1 • 1974 -75 Market crash
Changing World 1986 -1996
Examples from Life Industry -2 • Mortgage Endowments
Examples from Life Industry -3 • The Equitable
Examples from Life Industry -4 • With Profits Bonds
Reviews…. The Lost Decade 2001 Actuarial Profession’s Corley Report 2001 FSA Baird Review -> With Profits Review 2004 Penrose Report into Equitable 2006 Morris review of Actuarial profession 2007 EU Report on Equitable
Impact on the Profession • Loss of Appointed Actuary Role • Losing status within companies (adviser to the Board rather than member of Board) • Increasingly technical modeling work replacing exercise of judgment • Lack of visibility as public champion
Examples from Pensions -1 • Schemes in significant surplus – Revenue concerned that companies were sheltering excessive profits within schemes – Finance Act 1986 capped pension fund surpluses and introduced “Contribution Holidays” • Government saw an easy fund-raising target: 1997 “Gordon Brown’s Tax Grab” • Actuarial profession’s response muted.
Examples from Pensions -2 • FRS 17 (2001) Introduced realistic costing of pension liabilities – Great work for actuarial consultancies! – Short term volatility for long term liability – Accelerated demise of DB schemes and adversely affected investment policy • Actuarial Profession’s response muted (strong differences of opinion amongst Council members)
This Debate is Still Going On
Where Did This Leave the Profession? • The fallout from Equitable damaged the standing of actuaries in management and in the eyes of the public • In pensions, the move away from DB reduced opportunities, individuals need increased support • Increased regulation replaced freedom and judgment with technical calculation
Hope for the Future? • New Fields – General Insurance – Risk Management • Growing interest in Risk Management and the creation of CRO posts provides an opportunity – If we can rise above super-technical modeling and capture the CRO role by showing how it is relevant in practical ways to companies.
A Case Study In The Making?
- Ku leuven financial engineering
- Fsa actuary stands for
- Yale actuarial science
- Actuary for dummies
- Student actuaries at michigan
- Actuarial database
- Acr format resume
- Actuarial present value
- Actuarial management, cass business school, 20 september
- Purdue math building
- Penn state actuarial science club
- Actuarial math
- Shepherd fungura
- Cash price in hire purchase
- Southampton actuarial science
- Catastrophe modeling actuarial
- Actuarial jokes