Sessional Research Event: Equity Release Mortgages (ERM)

The Equity Release working party will be presenting its paper titled ‘Actuarial Management of ERMs’.  The presentation will summarise the key parts of the paper which cover:

1. Current economic and regulatory factors affecting the market for equity release mortgages in the UK
2. A summary of the approaches to modelling the no-negative equity guarantee
3. The methods used for valuing ERMs under IFRS and Solvency II
4. Securitisation of ERMs – Why is it needed?  How is it done?  What is their treatment under Solvency II?
5. Internal rating of ERMs - Why is it needed?  How is it done?  The types of stresses and scenarios considered in rating analyses.

As part of our research we have undertaken a survey of market participants and held one-to-one interviews with market participants.  The results of these market surveys will be presented under the relevant headings above.

Who should attend?
All actuaries working in the Life practice area.

The interim paper can be found here.