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JFAR Risk Perspective 2021

The Joint Forum on Actuarial Regulation (JFAR) comprises the Institute and Faculty of Actuaries, the Financial Reporting Council, the Financial Conduct Authority, The Pensions Regulator and the Prudential Regulation Authority.

Initially formed in 2013, the JFAR recognises there’s a lot of commonality of interest among the five regulators in ensuring high-quality actuarial work.

To that end the JFAR has just released the annual JFAR Risk Perspective, setting out its collective view on current risks to high-quality actuarial work. The JFAR Risk Perspective 2021 is intended to raise awareness of the risks to, and the importance of, high-quality actuarial work in mitigating the risk to the public interest.

The dominant risks are climate-related risk (including biodiversity) and systemic risk (which encompasses Covid-19). The full list of risks is as follows:

  • Climate-related risk (including biodiversity)
  • Systemic risk
  • Ageing population and affordability
  • Unfair outcomes for individuals
  • Geopolitical, legislative, and regulatory risk
  • Technological change and competence in new areas
  • Impact of undue commercial pressure
  • Effective communication.