18 May 2016
The Institute and Faculty of Actuaries (IFoA) comments on the contents of the Queen’s Speech delivered today (18 May).
On the Pensions Bill, Gareth Connolly, Chair of the IFoA Pensions Board, comments,
“The increase in the numbers of employers providing pension schemes for their employees as a result of auto-enrolment has brought pension provision into clear focus and led to new solutions being developed. This raises the challenge of whether new and existing models are fit for purpose and how to address their governance, regardless of whether they are contract or trust based.
“Appropriate changes to the regulatory and legal regime should be undertaken to address any gaps and ensure member protection is consistent across all types of provider. Otherwise there is a risk that some schemes may not be sustainable in the long term.
“If a Master Trust fails there is a risk that the funds accumulated on behalf of individual members in that Trust could be compromised. There are also other risks that need to be addressed to protect members such as ensuring the funds are appropriate and don’t suffer from excessive charges. We therefore fully support the Government’s intention to take steps to ensure Master Trusts operate in a level playing field.”
On the Modern Transport Bill, David Brown of the IFoA General Insurance Board comments,
“Driverless cars will create new opportunities for those unable to drive themselves. However there is an urgent need to put the necessary infrastructure into place to enable the market to develop.
“The merits of these vehicles include the potential for a reduction in the number of accidents and greater fuel efficiency. However, there are a number of issues that need to be resolved mainly in the area of technological disruption such as local power failure or cyber/satellite disruption.
“We would encourage the Government to introduce legislation that clarifies who bears liability in the event of a driverless car being the cause of an accident and to make clear how the infrastructure to support driverless cars will be put into place. Manufacturers, insurers and the insured would all benefit from this clarity. We would also welcome discussion of issues affecting overseas driving of these vehicles.”
On the Neighbourhood Planning and Infrastructure Bill, David Brown of the IFoA General Insurance Board comments,
“The IFoA recognises the need to build more housing stock in the UK. However, we would encourage government, national and local, to accept the need to build only where there is limited future risk of flooding or to only build in these areas where the new building stock has the necessary level of flood resilience. While new housing will bring a boost to the economy, we would urge long term planning that minimises the risk for future homeowners, tenants and new businesses that would also develop in those areas.”
Brandon Horwitz, Chair of the IFoA Finance and Investment Board, comments,
“The creation of the National Infrastructure Commission last year creates a major opportunity for the UK to reverse decades of underinvestment, and will help to reduce uncertainty for investors. We hope the Commission will have the right powers and structure to be able to tackle deep-set issues driving investor behaviour and build confidence in what is a new sector to many.
“The IFoA believes that strategic planning for infrastructure will be most effective when national and local government and the private sector complement each other rather than competing with each other.”
~ENDS~
Contact:
Annette Heninger, Media Relations Manager
Tel: 07525 592 198|
Email: annette.heninger@actuaries.org.uk
Editorial notes:
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.
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 enterprise risk management, finance and investment, general insurance, health and care, life assurance, mortality, and pensions.