This October, I chaired the above workshop where a wide range of topics were presented to stimulate thought and debate as senior life actuaries focus on the usual year-end activities. Whilst a backdrop of mortality and economic uncertainty is the norm, this year there are more challenges than usual with: a buck in the trend for mortality improvements; the potential impact of Brexit; and the challenges arising from climate change. So the agenda for the day needed to cover a wide range of topics and subsequent attendee feedback has confirmed this approach was much appreciated.

The meeting kicked off with a presentation by Hogan Lovells on the legal complexities of transfer schemes (including Schemes of Arrangement and Part VII transfers); pertinent with the increased rationalisation in the industry as well as changes being triggered by Brexit for UK insurers with continental interests. The NatWest Markets session provided a view on the financial outlook, as Brexit approaches and beyond, and linked this to the potential implications for our balance sheets. Goldman Sachs then challenged us to think about the potential wisdom of focusing on financial engineering to drive profits with a comparison with what is happening in the Dutch insurance market.

Beverly Alford treated us to a very thought provoking talk on recent mortality trends and what current research in the medical field might mean to longevity; unfortunately the impact is unlikely to affect the audience but is potentially a realistic proposition for younger actuaries.

The first of two panel sessions considered the state of risk management in life offices and concluded we have come a long way as a result of Solvency II in understanding and managing risks but there is always room for improvement. The second panel session considered the benefits of Solvency II and if we have reached our steady state, drawing on the perspectives of leading people working in regulation, audit/consulting and life office risk management. Whilst there were a range of views, as you would expect, the consensus was the journey has overall been positive but the destination could still be improved.

Members of the IFoA Regulation team provided the rationale for proposed changes to the way the IFoA regulate the quality of actuarial work. The presentation made a clear and compelling case for change and gave a strong rationale for the proposals on the table. Robust challenge resulted in a few ideas that have the potential to refine the proposal.  

The star of the show was very much the inhabitants of the Antarctica that clearly got the message across, in a short animation, that time is (if not has already) run out with respect to effectively managing climate change and what changes are happening to the planet. A message that was reinforced in news headlines days after. The presentation, by the IFoA Resource and Environment Board, highlighted the potential and very complex impacts we need to start to consider as actuaries from a life office perspective.

Presenters bravely shared their hero/heroine alter ego to add a little light hearted relief to the thorny and complex issues covered during the day. Thank you to all the presenters for the considerable effort involved in preparing and presenting to a demanding audience. The time and effort has been reflected in feedback provided by the attendees that demonstrate the quality of presentations and materials was higher than the same event in recent years.

Rob Merry, Chair of the IFoA Life Lifelong Learning Sub-committee

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