Update to Members on the new AMS Thematic Review Programme
The IFoA has launched its Actuarial Monitoring Scheme (AMS) with the announcement of two thematic reviews.
In February 2019, we announced that the IFoA would proceed with one aspect of its AMS proposals, a rolling programme of thematic reviews. The introduction of the AMS will improve the effectiveness of actuarial regulation in the public interest, provide meaningful, credible, independent feedback to Members and their employers and promote ongoing reinforcement and continuous improvement. The AMS will provide insight into the quality of actuarial work in key areas where it has been identified that there would be benefit in understanding more about current practice.
The first two reviews will be carried out in 2020 and are focused on themes in the areas of General Insurance and Pensions that have been identified as having the potential to provide useful insight. These will involve review of how that work is being carried out in practice by actuaries, including review of the work itself, which will allow the IFoA to share useful learning and good practice with Members and their employers. The outputs of the reviews will be used by the IFoA to ensure its standards, guidance, CPD events and qualifications are as effective and relevant as possible, helping it to safeguard the reputation of the profession and serve the wider public interest.
The two topics are
- Pensions: Actuarial factors used to calculate member benefits - The actuarial factors used to calculate scheme benefits are one of the ways in which the work of the actuary affects the benefit amounts received by scheme members, rather than simply how they are financed. The review will look at current practices adopted by actuaries in this area including how factors such as commutation at retirement are determined for schemes and how frequently these factors are reviewed.
- Insurance: Role of actuarial advice in pricing of GI products - The actuarial factors used within General Insurance pricing can have a direct impact on financial products that are provided to the public and are one of the key ways in which actuaries deliver strategic insight into a business. Pricing is a broad and complex area utilising a wide range of actuarial skills including market and product knowledge, technical competency, communication and negotiation. The review will look at current actuarial practice to understand the processes adopted by actuaries and challenges faced when providing advice in this area.
The Thematic Review Programme will be delivered by a new Actuarial Review Team consisting of very experienced actuaries recruited by the IFoA for this purpose.
The IFoA looks forward to engaging with Members and their employers on these important topics. Please get in touch if you think that you or your organisation could contribute to any upcoming or future reviews.
More information about the reviews will be shared over the coming months via newsletters, conferences and events. You can also visit the Actuarial Monitoring pages of the IFoA website to find out more.