This abstract relates to the following paper: Rae, R.A., Barrett, A., Brooks, D., Chotai, M.A., Pelkiewicz, A.J. and Wang, C. A review of Solvency II: has it met its objectives? British Actuarial Journal. doi: 10.1017/S1357321717000241

This abstract relates to the following paper: LiJ., LiJ. S. H., TanC. I. and TickleL. (2018) Assessing basis risk for longevity transactions – phase 2 presented by Dr Jackie Li and Dr Chong It Tan, IFoA Longevity Basis Risk Working Group ‐ Abstract of the London Discussion. Annals of Actuarial Science. Cambridge University Press, doi: 10.1017/S1748499518000179.

Older people are higher contributors to mortality excess and most sensitive to environmental influences, e.g. temperature. As the population ages, variability in temperature is liable to impact a large proportion of life insurance or pension policies in a portfolio. Climate change is projected to significantly affect future mean temperatures. Moreover, future changes in mean temperature are estimated to vary across different regions of the United Kingdom. Accordingly, the present paper investigates the potential impact of future mean temperature changes on older-age mortality in England & Wales and Scotland. The corresponding effect on older-age mortality differences between England & Wales and Scotland is also investigated.

This abstract relates to the following paper: Achord, S., Chan, J., Collier, I., Nardani, S. and Rochemont, S. (2017). A cashless society: benefits, risks, and issues ‐ Abstract of the London Discussion. Institute and Faculty of Actuaries. Available at: http://www.actuaries.org.uk/documents/cashless-society-benefits-risks-and-issues

This abstract relates to the following paper: Gerrard, R., Hiabu, M., Kyriakou, I. and Nielsen, J. P. (2018) Self-selection and risk sharing in a modern world of lifelong annuities ‐ Abstract of the London Discussion. British Actuarial Journal. Cambridge University Press, 23. doi: 10.1017/S135732171800020X.

Communicating a pension product well is as important as optimising the financial value. In a recent study, we showed that up to 80% of the value of a pension lump sum could be lost if customer communication failed. In this paper, we extend the simple customer interaction of the earlier contribution to the more challenging lifetime annuity case. Using a simple mobile phone device, the pension customer can select the life-long optimal investment strategy within minutes. The financial risk trade-off is presented as a trade-off between the pension paid and the number of years the life-long annuity is guaranteed. The pension payment decreases when investment security increases. The necessary underlying mathematical financial hedging theory is included in the study.

The Working Party has produced this report in order to prompt readers to engage at an early stage in InsurTech projects, through considering (i) the full range of risks associated with InsurTech developments, (ii) the lifecycle of an InsurTech venture and how any risk considerations may vary over this lifecycle and (iii) the extent to which InsurTech ventures align with risk strategy and risk appetite.

The report contains practical guidance for actuaries, risk professionals, insurance companies and their Boards on these considerations, and can be used to facilitate appropriate questioning, to help ensure that InsurTech-related business decisions are fully cognisant of the risk management issues and to help ensure the success of projects.

The Working Party developed this guidance having carried out an industry survey on a number of risk management topics relating to InsurTech, as well as having carried out interviews with a number of relevant senior stakeholders across the insurance industry, in order to better understand current sentiment and how risk management plays a part when considering opportunities in InsurTech. The Working Party views on the findings from these activities are summarised in the report.