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Risk Management in a Digital World (Dormant)

This working party was established to form views and recommendations to assist actuarial practitioners in risk management considerations relating to operating in a digital world

The initial focus is on the insurance sector (InsurTech) but subsequent phases could build this out to include other industries/sectors more generally.

The scope of “Phase 1” (completed):

  • A typical timeline for InsurTech investment and implementation
  • Consider how key elements of a typical risk management framework may be applied to help assess InsurTech opportunities
  • Run a survey to gain a range of views and experiences
  • Look at all of the capability areas:
    • people (including training, communication and culture)
    • processes (including management information production)
    • technology & data
    • governance
  • Consider specifically the role of the actuaries and the role of the risk function in managing digital risk
  • Review the experience of FinTech and the Banking sector, to a lesser extent, RegTech, to see what lessons learned may benefit InsurTech
  • Produce a typical lifecycle of an InsurTech project and highlight how the risk management framework can be deployed to facilitate each step.

The scope of “Phase 2" (completed):

A survey was undertaken in December 2017 to better understand the current views and activity in relation to InsurTech, along with the current practice and capability in assessing risks emerging from Insurtech.

The working party identified the following areas to focus on in Phase 2:

1. Digital Risk Appetite

The working party will seek to provide guidance to actuaries and other risk professionals on the following:

  • Identifying digital risks which form part of their risk universe
  • Determining risk preferences for digital risks, in the context of needing to manage the downside while also seeking to optimise the upside
  • Setting risk appetite and associated risk tolerances and limits for these digital risks.

2. Blockchain / Distributed Ledger Technology (DLT)

The working party will seek to provide insight on:

  • Education and understanding of what the technology is and what its potential is, including introducing common language where there are possible variatons
  • Blockchain/DLT solutions for insurance problems, including risk management in insurance
  • The advantages and disadvantages of using the technology, and the corresponding implications from a risk perspective.

3. Education and Training

The working party will seek to:

  • Identify gaps in the existing actuarial syllabus, CPD and training opportunities which may explain the lack of working knowledge on emerging technologies and techniques
  • Summarise findings and develop recommendations for addressing these gaps.

The scope of “Phase 3" (in progress):

The following is the potential ‘next phase’ being discussed by the working party:

  • Further work on blockchain, such as development of online or interactive training session
  • Focus on 2nd line impacts of the increasingly digital world, eg:
    • What does 2nd line need to do differently
    • More proactive taking on risks given automation / data processing capabilities
    • How much does the 2nd line need to know from a technical perspective in order to be effective in their roles in the future
  • Risk management in wider areas (outside insurance), to the extent that it is relevant to actuaries

Outputs:

Chair: Darko Popovic
Membership: 10
Established: 2017

 

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Contact Details

If you want more information about this research working party please contact the Communities Team.

professional.communities@actuaries.org.uk

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Events calendar

  • Spaces available

    A panel discussion with investment representatives discussing the impact of investment on climate change and vice versa.

    This event is part of The Road to Glasgow: IFoA’s Sustainability Thought Leadership Series which will provide a platform for prominent contributors so that our members and others can understand the perspectives of a wide range of parties interested in the climate debate.

  • Spaces available

    Climate change is one of the greatest risks facing our world today. Addressing it will require multi-faceted solutions. Through this panel session, we will explore the different levers that can be used to meet net-zero targets including climate science and data, government engagement, and mobilising green finance.

  • Spaces available

    How governments and societies collectively respond to the climate crisis is increasingly being analysed through the lens of intergenerational fairness. Our expert panel will assess and explore the extent to which inter-generous fairness is being considered in climate policies, the lessons from those countries who are leading the way on fairness and justice in climate interventions, and more.

  • The Growth Mindset for Actuaries

    13 October 2021 - 8 December 2021

    Spaces available

    This practical course is aimed at actuaries at any stage of their career who want to develop their own growth mindset and apply it to their work setting and personal or professional lifelong learning. The content of the course builds on the lecture given by Dr Helen Wright on Growth Mindset as part of the President’s 2021 Lecture series, and will be delivered over a period of 2 months, from mid-October to early December.

  • Spaces available

    The climate crisis and the degradation of our planet will affect societies everywhere. How we address these threats will require solutions that transcend borders. As a global profession, the actuarial community is well-placed to consider and propose effective risk management solutions to help manage the climate crisis.

  • Spaces available

    Content will be aimed at all actuaries looking to understand the issues surrounding mental health in insurance and in particular those looking to ensure products and processes widen access for, and are most useful to, those experiencing periods of poor mental health.