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Equity Release MIG

The Equity Release Member Interest Group operated from 2001 - 2016. An Equity Release Mortgages Working Party was set up to research this area in 2017 by the Life Board, and the Member Interest Group (MIG) therefore became dormant. This MIG aimed to identify (following the publication of the profession's reports on equity release in 2001 and 2005) further means to inform, educate and explain equity release as a social policy.

Objectives:

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.

Outputs:

Related documents

Contact Details

If you want more information about Member Interest Groups, or would like to start one, please contact the Practice Executive:

memberInterestGroups@actuaries.org.uk