IFoA launches Frank Redington Prizes to promote a sustainable financial system

The Institute and Faculty of Actuaries (IFoA) is delighted to announce the launch of two Frank Redington Prizes to encourage and promote thought leadership in actuarial science. We are issuing a call for the most innovative new thinkers to step forwards with bold ideas on two of the biggest challenges of the 21^st Century.

This open essay competition, supported by major sponsorships from Milliman and Punter Southall, welcomes applicants from across the globe, both within and outside of the actuarial profession. Calls for submission will focus on two topics:

• What would be a sustainable economic and finance system for the public interest?
• What would be a sustainable and effective UK pension system for the people?

We are looking for entries of between 5,000 and 10,000 words in length and essays should include original thinking, practical solutions, an analysis of risks and opportunities, and proposals supported by evidence where necessary. Each first prize will be awarded £12,500, second prize winners will receive £7,500 and those awarded third prize will receive £5,000.

Tan Suee Chieh, Immediate Past President, IFoA, said:

“The idea of the Frank Redington Prizes grew out of the IFoA’s ‘Finance in the Public Interest’ series in March 2021. This is the natural next step, allowing us to continue the conversation on some of the key debates raised during those discussions. We are casting the net as far and wide as possible, looking for fresh strategic thinkers who are not afraid to challenge orthodoxy and put forward radical challenge in a way that supports our public interest commitment. We would like to thank our sponsors Milliman and Punter Southall for helping to support this endeavour”.

Submissions must be submitted by 12pm BST on Friday 29^th April. A shortlist will be considered by a prestigious panel of judges:

• Torsten Bell, Chief Executive, Resolution Foundation
• Sir John Kay, Economist
• Rt Hon David Heath CBE, Chair of the Policy Advisory Group, IFoA
• Hon Group Captain Sally Bridgeland FIA, Chair and Non-Executive Director at asset management and insurance companies

Stephen Mann, CEO, IFoA, said:

“We are grateful to our panel of judges for their interest in and support of the Frank Redington Prizes. These prizes focus on two areas where the IFoA has been developing its thought leadership to help bring fresh and credible perspectives to two of the biggest questions and challenges of our time. We believe this is an invaluable opportunity for entrants to seek to shift the policy dial and move the debate on in a thoughtful but ambitious way.”

~ENDS~

Contact
Sonia Sequeira, Media Relations Manager, IFoA
Tel: 07525 592 198
Email: sonia.sequeira@actuaries.org.uk

Notes to Editor

1. The Frank Redington Prizes. Institute and Faculty of Actuaries. Launched October 2021.
    
2. Details on essay content:

• What would be a sustainable economic and finance system in the public interest?

This will be a wide-ranging paper on what has gone wrong in the last 30 years in the context of the British and Anglo-Saxon financial services industries – and what can be done to improve the situation and the sector. 

The risks we have are systemic. There is an over-emphasis on growth and the use of share prices as a proxy of growth in value, leading to planetary degradation and biodiversity loss – an ecological disaster happening in real time. The professions and business are conflicted, as most financial professionals are employed by organisations that have a primary purpose of creating shareholder value. The benchmarking of investment returns and mandates leads to herding behaviour and unintended long-term consequences. What needs to change? What needs to be reformed? What immediate and practical changes would you recommend?

The analysis could cover any of these aspects, or all of these and more:

• The pros and cons of free market capitalism and globalisation
• The role of neo-classical economics and the stock market
• The measurement of risk and the rise of radical uncertainty
• The opportunities and dangers presented by the digital and fourth industrial revolution
• The transfer of risk to individuals
• The role of regulations and regulators; corporations; professions; civic society
• Systems thinking and multi-disciplinarity – having regard to advances in evolutionary psychology
• The role of the IFoA and the actuarial profession in the context of its VSMD (Vision, Skillsets, Mindsets & Domains) strategy
• How would we manage the transition from where we want to be?

The paper should contain at least three proposals or recommendations on actions that could change economic and financial systems to operate more in the public interest.

• What would be a sustainable and effective pension system for society?

There were a number of observations about inequality and about pensions made in the debates in the IFoA “Finance in the Public Interest” series in March 2021, including views which were critical of pension regulation and the role of actuaries.

A significant proportion of IFoA members work on the UK’s defined benefit (DB) pensions. But DB schemes are being wound down and in many ways we are left with an inadequate pensions system. Much of the nation’s capital - about £2.5 trillion - are sat in zombie DB schemes. And whilst a minority of older people have gold-plated pensions, for younger people saving for a decent pension on which they could retire is basically unaffordable. 

The brief for this the paper is to propose a system, or reform to the current system, which would deliver a low cost affordable pension to the majority of the population, whilst investment needs to be premised on societal needs of levelling up and the green transition. The proposal should be cognisant of long term trends, such as increasing longevity, long term care needs and the technological landscape.

What are the most practical ways to reform the system?

The paper should contain at least three proposals or recommendations to reform the existing pensions systems and schemes (with particular reference to the UK).

About the Institute and Faculty of Actuaries

The Institute and Faculty of Actuaries (IFoA) is a royal chartered, not-for-profit, professional body.

Research undertaken by the IFoA is not commercial.  As a learned society, research helps us to fulfil our royal charter requirements to further actuarial science and serve the public interest. 

Actuaries provide commercial, financial and prudential advice on the management of a business’s assets and liabilities, especially where long term management and planning are critical to the success of any business venture. They also advise individuals, and advise on social and public interest issues.

Members of the IFoA have a statutory role in the supervision of pension funds and life insurance companies. They also have a statutory role to provide actuarial opinions for managing agents at Lloyd’s of London.

Members are governed by the Institute and Faculty of Actuaries. A rigorous examination system is supported by a programme of continuing professional development and a professional code of conduct supports high standards reflecting the significant role of actuaries in society.

The IFoA is available to provide independent expert comment to the media on a range of actuarial-related issues, including COVID-19 and its long term consequences, mortality, pensions, life and general insurance, health and care, finance and investment, climate change and sustainability, systems thinking, uncertainty and judgement, and risk management.