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Planned objectives:

The impact of the removal of GBP LIBOR could have a significant impact on a number of areas where actuaries are involved, including Insurance, Pensions, Investments and Risk. The working party will review the proposals for the transition from LIBOR to SONIA to assess the potential implications, which could include:

  • A change to liability discount rates and the potential need for changes to technical standards
  • An impact on the costs of liability hedging and market liquidity for existing swaps
  • A disruption to the market for floating rate assets

The working party will report findings to the appropriate IFoA committees who may use this information to support discussions with regulators and other government bodies, as well as make findings available to the wider actuarial community via presentations at IFoA events.

Please take a look at the party’s Terms of reference

Progress to date: 

To date the working party have produced two articles for The Actuary magazine, outlining the key Libor reform consultations that have taken place and summarising the key feedback and conclusions.

This article was published in the October 2018 edition of the Actuary magazine

This article was published in the March 2019 edition of the Actuary magazine

Next steps:

For the next phase, the working party has established three sub-groups covering Insurance, Pensions and Other, which will be investigating more deeply the issues and implications for those practice areas.

Chair Simon Richards
Established 2018
Membership 10

 

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