In recent years Lifetime Mortgages have become an important part of the investment strategy for a number of UK insurers writing annuity business.
The economic crisis may have strengthened the case for alternative assets such as equity release, by highlighting how highly correlated traditional markets such as bonds and equities are in adverse scenarios.
In recent months the Solvency II process (in particular the debate around the Matching Adjustment) has also brought the equity release asset to the attention of a wider audience, who may have previously been less familiar with the asset.
Against this background, the Equity Release Member Interest group has taken a look at why Lifetime Mortgages remain a good and appropriate investment for life companies with annuity liabilities.
This MIG disbanded in 2016 due to the IFoA Life Board setting up an Equity Release Mortgages Working Party to undertake member-led research in this area.
- Lifetime mortgages - an appropriate investment for life companies with annuity liabilities?
- Life Conference 2013: Equity release - why it remains a solid investment in Europe's turbulent economy
- Pricing and risk capital in the equity release market [pdf] Sessional meeting, Oct 2007
- Regulation of reversions and Ijara financing. HMT Consultation. Response from the Actuarial Profession. Jun 2006
- Equity Release Report, Volume 1: Main Report, 2005 [pdf]
- Equity Release Report, Volume 2: Technical supplement on pricing considerations, 2005[pdf]
- First Report on Equity Release Mechanisms, 2001 [pdf]
- 16 June 2020
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The Actuaries’ Carbon Collaboration (ACC) is a group of actuaries and other professionals working towards a coherent understanding of the issues around greenhouse gas (GHG) emissions by considering them in an actuarial context.
Emissions into and absorption from the atmosphere can be modelled in the same way that we model variable cash flows, including the impacts of uncertain quantities and timing. The ACC’s work investigates both the insights that this analogy provides and its limitations.
This talk presents the work of the Data and Modelling workstream of the IFoA Mental Health Working Party. We explore data and modelling considerations in the risk assessment and underwriting of mental health conditions. We will also consider how newer risk factors and improved data availability might open up opportunities for additional underwriting and product designs.
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Moreover, whilst the stunning progress of specific technologies such as Watson and Alphazero made headlines some years ago, current commercial applications of AI remain far from mature.
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