The expansion of insurers investing in the Equity Release Mortgages (ERM), and the asset’s long term use to back annuity portfolios, brings ERM into scope of the “matching adjustment” of Solvency II.
Key objectives:
- To assist the Life Board and Life Research Committee to identify and promote new research on this current hot topic
- Preparation for any future consultation responses in relation to ERMs
- A review of the consequences for the IFoA from the variation in valuations placed on ERMs, often through actuarial assumptions on common economic factors
- To present at IFoA Conferences such as Life Conferences and regional societies (see the presentation at the Life Conference 2017)
- To produce a final report on actuarial practice in respect of (3) and a separate research paper on approaches to valuation of the no negative equity guarantee and how current actuarial practice could evolve.
Equity Release Working Party Terms of Reference - February 2020
Current activity
The ERM WP is currently inviting participants to submit model outputs for the purpose of analysing the long-term property risk associated with equity release mortgage assets. The ERM WP would welcome responses from both industry and academia in the UK and also international modelling perspectives. The deadline to submit responses is 30 November. Please see further details.
Outputs
- The Actuary March 2017
- The Actuary December 2017
- Life Conference presentation 2017
- Life Conference presentation 2018
- Sessional meeting presentation 2018 - and interim sessional paper
- Life Conference presentation 2019
- A Discussion Note on Economic Valuation of ERMs for EVT
- Sessional paper to follow
| Chair: | Raj Saundh |
|---|---|
| Membership: | 14 |
| Established: | 2016 |
Contact Details
If you want more information about this research working party please contact the Communities Team.
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