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Sessional Research Event - Risk Margin Working Party

Monday 9 September 2019 17:00 - 19:00

This event is now fully booked. Please click here to register for the wait list.


For life insurers in the UK, the risk margin is one of the most controversial aspects of the Solvency II regime. Following its implementation, the risk margin came under considerable criticism for being too large and too sensitive to interest rate movements. These criticisms are particularly valid for annuity business – such business is of great significance to the national system for retirement provision. This criticism has led to political interest, and the risk margin was a major element of the Treasury Committee inquiry into Solvency II.

The working party was set up in response to this criticism. Our brief is to consider both the overall purpose of the risk margin for life insurers and solutions to the current problems, having regard to the possibility of post-Brexit flexibility. We have concluded that a risk margin in some form is necessary, although its size depends on the level of security desired.

The paper covers our review of possible changes to the current risk margin, both within the existing methodology and considering a range of alternatives. It identifies a number of changes which should be considered, depending on future circumstances, for example relating to Brexit.

Timings Programme
17.00 - 17.30 Registration and refreshments 
17:30 - 17:35

Chair's Introduction

Gareth Mee, Ernst Young

17:35 - 18:00


Paul Fulcher, Milliman and Andy Pelkiewicz

18:00 - 18:10


Andrew Chamberlain

18:10 - 18:50 Q&A
18:50 - 19:00


Gareth Mee, Ernst Young



Staple Inn Hall, High Holborn London, WC1V 7QJ

Nearest Public Transport

Chancery Lane Station