Resources for Subject SA2 - Life Insurance

However, students are not expected to have read all of the items on the list or to have gained a detailed knowledge of any particular topic additional to that contained in the Core Reading. Equally, students may use other sources of information to enhance their wider understanding, such as:

• the financial and trade press, including The Actuary magazine
• bulletins and other publications from reinsurers and consultancies
• other papers from the Institute and Faculty of Actuaries and the Staple Inn Actuarial Society (SIAS)
• Continuous Mortality Investigation bulletins
• presentations made at recent Life conferences or other life insurance seminars
• other recommended references on the Life Practice Area of the site.

Actuarial Standards

The Institute and Faculty of Actuaries is responsible for the setting of ethical actuarial standards. The Financial Reporting Council (FRC) is responsible for the setting of technical actuarial standards.

• Technical actuarial standards can be found on the FRC's website
• Other professional guidance material can be found on the Regulation pages of the Institute and Faculty of Actuaries website

Articles and papers

These article and paper references from Unit 16 of SA2 Core Reading 2019 are listed by year for each unit within SA2 to which they are most applicable. However, some reading material may be relevant to more than one Unit while one paper listed at the end under 'Wider reading'  is not obviously applicable to any specific Unit.

Title links are to papers first presented to IFoA sessional research meetings or to Staple Inn Actuarial Society (SIAS) papers. Papers subsequently published in British Actuarial Journal (BAJ) have their permanent 'DOI' links to the BAJ, published by Cambridge Core. Members can access these articles without charge following login to the IFoA website or to the Athens portal for online resources - please contact libraries@actuaries.org.uk for an Athens account.

Units 2 and 3 – specific products and general business environment

• Lessons from closure: an analysis and comparison of the issues facing closed life funds and closed pension schemes. Campbell, A.C.; Grimley, D.C.; Pallister, J.K. et al. BAJ (2006) 12(3): 639-727.
  (DOI: https://doi.org/10.1017/S1357321700004645)
• Variable Annuities: past, present and perfect. Shallis, P; Jones, G; Buckle, I; Hills, M., SIAS, 2009.
• A holistic lifecycle financial planning framework. Corrigan, J; Matterson, W., SIAS, 2010.
• Retail Distribution Review - an introduction - part 1, part 2. Kissoon, A.; Ealham, G. SIAS, 2013.

Units 4 and 6 – UK legislation and regulatory environment

• The Penrose Report. A discussion meeting held by the Institute of Actuaries. Abstract of the discussion. [Report of the Equitable Life Inquiry]. BAJ (2004) 10(5): 1047-1070.
  (DOI: https://doi.org/10.1017/S1357321700002944)
• The ECJ Gender Directive ruling - one year on [slide presentation]. Texier, L.; Bhudia, R. SIAS, 2014.

Units 7 to 11 – regulation, valuation and capital management

• Market consistent valuation of life assurance business. Sheldon, T. J.; Smith, A. D. BAJ (2004) 10(3): 543-626.
  (DOI: https://doi.org/10.1017/S1357321700002701)
• Current developments in embedded value reporting. O'Keeffe, P. J. L. et al. BAJ (2005) 11(3): 407-496.
  (DOI: https://doi.org/10.1017/S1357321700003226)
• Notes on options, hedging, prudential reserves and fair values. Wilkie, A. D.; Owen, M. P.; Waters, H. R. BAJ (2005) 11(2): 199-312.
  (DOI: https://doi.org/10.1017/S1357321700003068)
• The cost of capital for financial firms. Exley, J.; Smith, A. D. BAJ (2006) 12(1): 229-301.
  (DOI: https://doi.org/10.1017/S1357321700004761)
• Practical implementation challenges of internal models under Solvency II. Austin, R et al., SIAS, 2009.
• Market-consistent valuations and the implications of the recent financial crisis. Foroughi, K. Proceedings of the International Congress of Actuaries, Cape Town, 2010.
• Developing a framework for the use of discount rates in actuarial work. Cowling, C.A. (2011) Discount Rate Steering Committee (Chair: C A Cowling) BAJ (2012) 17(1): 153-211.
  (DOI: https://doi.org/10.1017/S1357321712000098)
• Insurance accounting - a new era? Foroughi, K. et al. BAJ (2012) 17(3): 562-615.
  (DOI: https://doi.org/10.1017/S1357321712000098)
• Demystifying the risk margin: theory, practice and regulation. Brown, A. SIAS, 2012.
• Dynamic management actions. Clark, D.; Kent, J.; Morgan, E. SIAS, 2012.
• Stress testing and scenario analysis in life insurance and beyond. [slide presentation] Leach, D. et al.;The Stress and Scenario Testing Working Party. SIAS, 2014.
• Heavy models, light models and proxy models. Hursey, C. et al.; The Proxy model Working Party. 2014. (Sessional research paper, 2014) BAJ (2015) 20(1): 147-166.
  (DOI: https://doi.org/10.1017/S1357321714000221) (Abstract of discussion of paper)

Unit 11 - Professional guidance [Unit 11 in SA2 Core Reading 2019]

• Technical Actuarial Standards: TAS D, TAS R, TAS M, Insurance TAS, Transformations TAS.
• Other Actuarial Profession Standards, IANs and non-mandatory resource material as listed in the Core Reading. See Actuarial Profession Professional Standards Directory

Unit 12 – Treating customers fairly

• Treating life customers fairly [Report from the Life: Treating Customers Fairly Working Party]. Staffurth, J. et al. SIAS, 2007.

Unit 13 – Risk management and controls

• Financial aspects of longevity risk. (2004) Richards, S. J.; Jones, G. L. SIAS, 2004.
• Longevity in the 21st century. Willets, R. C.; Gallop, A. P.; Leandro, T. et al. BAJ (2004) 10(4): 685-832.
  (DOI: https://doi.org/10.1017/S1357321700002750)
• Governance and risk management in United Kingdom insurance companies. Deighton, S. P. et al. BAJ (2009) 15(3): 503-566.
  (DOI: https://doi.org/10.1017/S1357321700005729)
• Living with mortality: longevity bonds and other mortality-linked securities. Blake, D.; Cairns, A. J. G.; Dowd, K. BAJ (2006) 12(1): 153-228.
  (DOI: https://doi.org/10.1017/S1357321700004736)
• Report from the actuarial processes and controls best practice working party – life insurance. Care, R et al. Paper presented to Institute and Faculty of Actuaries, 2009.
• Model risk : daring to open up the black box. (sessional research paper, 2015) - Morjaria, N. et al.; Model Risk Working Party. BAJ (2015) 21(2): 229-296.
  (DOI: https://doi.org/10.1017/S1357321715000276)
• The nature of longevity risk. Dhamani, S. SIAS, 2015.

Unit 14 – Management of with profits business

• Asset shares and their use in the financial management of a with-profits fund. Needleman, P. D.; Roff, T. A. BAJ (1995) 1(4): 603-688.
  (DOI: https://doi.org/10.1017/S1357321700001276)
• Measuring and managing the economic risks and costs of with-profits business. Hibbert, A. J.; Turnbull, C. J. BAJ (2003) 9(4): 725-786.
  (DOI: https://doi.org/10.1017/S1357321700004347)
• Equity between with-profits policyholders and shareholders. O'Brien, C.D. BAJ (2012) 17(2): 435-474.
  (DOI: https://doi.org/10.1017/S1357321712000074)
• The management of with-profits funds in run-off: Working Party report. 2014.

Unit 15 – Contract design and pricing

• A market-based approach to pricing with-profits guarantees. Hare, D. J. P. et al. BAJ (2000) 6(1): 143-213.
  (DOI: https://doi.org/10.1017/S1357321700000842)
• Reinventing annuities. Wadsworth, M. J.; Findlater, A. J. M.; Boardman, T. V. SIAS, 2001.

Wider reading

• Effective decision making in a life company. Iqbal, I. BAJ (2005) 11(1): 133-182.
  (DOI: https://doi.org/10.1017/S1357321700003172).