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Periodical Payment Orders (PPO)

A feasibility study, with the aim of compiling mortality tables of impaired lives who have suffered the types of traumatic injury that give rise to PPO awards - for example, brain and/or spinal injury following a severe trauma.

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: arc@actuaries.org.uk.

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Start date
E.g., 01/10/2020
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Events calendar

  • Autumn Lecture 2020: Professor Elroy Dimson

    Online webinar
    14 October 2020

    Spaces available

    Many individuals and institutions have a long-term focus, and invest funds for the benefit of future generations. Their strategy should reflect their long horizon. University endowments are one of the oldest classes of institutional investor, and I will present the first study of the management of these endowments over the very long term.

  • GIRO Conference 2020 Webinar Series

    Available to watch globally in November.
    02-13 November 2020
    Spaces available

    This year's GIRO has been re-designed as a virtual conference to offer members and non-members the opportunity to get up to date content from leading experts in the general insurance field via online webinars. All sessions will be recorded and made available to purchase and re-watch post-event on the IFoA's GI Online Learning Resource area

  • Life Conference 2020 Webinar Series

    Online
    16 November 2020 - 27 November 2020

    Spaces available

    This year's Life Conference has been re-designed as a virtual conference to offer members and non-members the opportunity to get up to date content from leading experts in the life insurance field via online webinars. All sessions will be recorded and made available to purchase and re-watch post-event on the IFoA's website.

  • Spaces available

    The webinar will discuss the challenges and opportunities schemes face in evaluating end game options, choosing a target state and understanding the impact this strategic decision could have on member outcomes long after the “end state” is reached. Adolfo, Kevin and Rhian bring over 60 years of experience in the industry and a variety of perspectives as scheme actuary, covenant adviser, trustee, de-risking adviser and insurer.

  • Spaces available

    Cash-flow driven investing is a game-changer for DB pension funds navigating their end-game. Suitable for sponsors who want to reduce risks on their balance sheets. And for trustees, it shifts the focus to providing greater certainty of returns, managing funding level volatility and ensuring they have enough income to pay cash-flow requirements.

  • Spaces available

    Patrick Kennedy, Partner at Gateley Legal and Founding Director of Entrust (a leading professional pensions trustee company), will be delivering an update on the latest legal developments during the course of 2020. With both a pensions legal perspective and over 25 years of trustee service, Patrick will seek to highlight how the letter of the law has continued to evolve against the backdrop of a difficult and challenging year

  • Spaces available

    The talk will provide an understanding of the priorities and relationships between deficit reduction contributions, in the context of wider scheme funding, and different types of value outflow from the employer based on the working party’s recently published report.