Background to the project
The PPO Working Party was established in 2010 to investigate PPOs and their effects on the UK insurance and reinsurance industry. The group has been at the forefront of advising GI actuaries about the impacts on their work, such as the need to use life insurance techniques in reserving. In 2012, the group addressed impaired life mortality (ILM) specific to UK PPO awards. This is an area identified by the group as worth investigating and is also one of the main concerns of the industry: how different is ILM from general population mortality.
In early 2018 the Periodical Payment Orders Working Party requested funding for commissioned research, in order to commission a feasibility study with the aim of compiling mortality tables of impaired lives who have suffered brain and/or spinal injury following a severe trauma (specific to UK PPO awards). This funding request was approved by the GI Board and subsequently approved by the IFoA's Research and Thought Leadership Board (RTLB) in July 2018. RTLB further agreed that the PPO research should be commissioned through the IFoA’s Actuarial Research Centre (ARC), and that the opportunity to seek external partners to jointly fund and commission the work should be explored. It is intended that the data for the feasibility study will be compiled from the most relevant UK medical research database(s) of patient records as entered by GPs (e.g. THIN, CPRD or such other source as identified via the research) with comparison to overall population statistics from the ONS. If successful, the data will enable more accurate reserving, pricing and capital setting for PPOs.
Given the relevance of this research for industry, we’re also keen to commission and deliver this leading-edge ARC project in partnership with interested parties.
Please read the PPO research project summary for more information on the research project proposal.
Events
ARC event on Periodical Payment Orders (PPOs)
The ARC hosted a mortality research event on 20th February 2019 at Staple Inn Hall London. This event facilitated an open discussion between industry experts, insurers, healthcare providers and academics who specialise in the development of mortality data. The aim of this event, which was achieved, was to refine the challenges that would be faced in developing mortality tables of impaired lives (who have suffered the types of traumatic injury that gives rise to PPO awards), and the potential solutions available.
A summary of the event, including feedback responses from delegates, is available.
Expected outputs
It is expected that these mortality tables will become a reference point for actuaries and others involved in the management of PPO liabilities when considering the future mortality rates likely to be experienced by PPO recipients (for example for the purpose of calculating reserves).
Contact Details
If you want more information about our research programmes please contact the IFoA Actuarial Research Centre:
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Events calendar
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PPD: Understand the work-experience requirement for the Associate and Fellow qualification
28 June 2022This webinar is for both new and existing members of the IFoA, including employers and CPD coordinators who would like more information regarding the PPD requirements.
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Insurers’ hidden risk from reinsurance recaptures; the perspective of UK annuity writers
29 June 2022There is a lack of publicly available information covering the practices insurers employ to manage their exposure to reinsurance recapture risk. A working party was set-up to shed light on the different approaches insurers use to mitigate this complicated to manage risk. This report is intended to form part of a publicly available information repository that market practitioners can refer to and reflect on as best practice evolves and develops.
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The Actuaries’ Carbon Collaboration (ACC) is a group of actuaries and other professionals working towards a coherent understanding of the issues around greenhouse gas (GHG) emissions by considering them in an actuarial context.
Emissions into and absorption from the atmosphere can be modelled in the same way that we model variable cash flows, including the impacts of uncertain quantities and timing. The ACC’s work investigates both the insights that this analogy provides and its limitations.
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Sessional Meeting: Data and Modelling Considerations for mental health in life insurance
11 July 2022This talk presents the work of the Data and Modelling workstream of the IFoA Mental Health Working Party. We explore data and modelling considerations in the risk assessment and underwriting of mental health conditions. We will also consider how newer risk factors and improved data availability might open up opportunities for additional underwriting and product designs.
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Pensions Dashboards
12 July 2022As the industry prepares for Pensions Dashboards, we have lined up a specialist panel who is at the heart of the ongoing work in this area. Hear the latest developments, future proposals and have the opportunity to put forward your questions to our speakers.
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Applying AI – From Concept to Practice
19 July 2022Artificial Intelligence is heralded as a game-changer to the ways industries use data, with the insurance industry especially looking to embrace these new technologies. This brings many questions – not least around data privacy, ethics, potential biases and so on – with regulators increasingly interested in developments.
Moreover, whilst the stunning progress of specific technologies such as Watson and Alphazero made headlines some years ago, current commercial applications of AI remain far from mature.
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This webinar will cover:
• Some background on the risks of misselling in an ESG context, including the DWS case
• Achieving positive impact is a strong antidote to the risks of greenwashing or ESG misselling, however this risks having a tension with fiduciary responsibilities
• This tension can be resolved with a concept called Universal Ownership
• Under Universal ownership, investors have an appetite to make a loss in order to achieve positive impact, and yet still have no compromise on their fiduciary responsibilities
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This session will focus on the transformation roadmap of the healthcare sector in KSA and the role of actuarial capabilities in enhancing its evolution to the desired end stage as per the objectives of the Vision 2030. The discussion will focus how the system has evolved so far and shed light on the expected future changes. Through examining the transformation, we will highlight how the sector is and can use actuarial expertise to not only assist with this transformation but also use basic actuarial principles to identify the key risks and their respective mitigation strategies.
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Sessional Meeting: Covid-19 and the Effectiveness of ERM Frameworks
Online15 August 2022The purpose of this research paper is to explore enterprise risk management lessons which can be learnt from the Covid-19 pandemic in preparation for potential future pandemics as well as other “gray rhino” or “black swan” events. This paper is not intended to be an all-encompassing solution to the issues presented by Covid-19; rather, the content has been provided to help drive discussions regarding how risk management processes may need to evolve in line with the dynamic nature of the underlying risks that they sometimes need to capture.
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The IFoA's Infrastructure Working Party, led by Chris Lewin, will present its new introductory guide to infrastructure investment, which will be published on the IFoA web-site prior to the webinar. Those readers whose institutions have already taken the plunge into infrastructure will know that it is a highly complex and diverse field of activity. This guide does not explore all the matters which investors take into account, but it does discuss many of the more important points, including the risks and past returns, benchmarking, and ESG and SDG considerations. Attendees will be invi
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Health – Our Greatest Asset
2 November 2022Health contributes to happiness at the personal, family, community and societal level. Health, importantly underpins all our economic security. This talk will explore the drivers of our health, the measurement of health and the steps we can take to improve health – most of which lie outside the NHS.