Dear CEO and Dear Chief Actuary letters 2019

At a recent meeting of the London Market Actuaries’ Group (LMAG) we attended, James Orr, Chief Actuary - General Insurance at the PRA, with his colleagues Cassandra Archer and Elena Papastylianou, delivered a PRA Update presentation on the recent “Dear Chief Actuary” and “Dear CEO” letters*. We think the contents of these letters should be… Continue reading>

Proxy capital modelling in general insurance

Despite recent computational advances, internal/economic capital models remain time-consuming to run and often highly complex. We are currently researching into the use of proxy models in general insurance capital modelling, including a study into current market practice and evaluation of common techniques.  We are planning to present our results and findings at actuarial conferences later… Continue reading>

Cyber – a new type of risk or more of the same?

by Alex Marcuson This question occurred to me at a seminar I attended recently. The speaker was arguing that cyber was a new category of insurance, distinct from traditional property and casualty insurance classes. On reflection, I felt unconvinced, but I thought it was worth setting out some of the arguments both ways. Why is… Continue reading>

Peril-based reserving and claims simulation

Alex Marcuson presented on the work that his Peril-based reserving working party has been carrying out.  This presentation was given at the annual GIRO Conference, this year held during September in Dublin. After providing a recap of some of the material delivered at previous GIRO Conferences, and the challenges that had been identified at that… Continue reading>

Learn to be part of the Machine Revolution

Alex Marcuson presented on machine learning at the annual GIRO Conference, this year held during September in Dublin. Speaking together with Alan Chalk, the popular workshop provided an introduction for actuarial newcomers to this field. The workshop provided a practical example of decision tree tools to analyse sample text. Using speeches given by US presidential… Continue reading>

PPO Liabilities: modelling mortality risks

There are a lot of uncertainties inherent in the valuation and capital modelling of Periodical Payment Order (“PPO”) liabilities.  Not only is there no perfect hedge for the inflation indices applied to them, there is also very limited data upon which to base mortality models. While much has been written on the challenges presented by… Continue reading>

PRA Consultation Paper CP7/14

Solvency II: calculation of technical provisions and the use of internal models for general insurers This consultation paper was issued by the PRA in March 2014.  It is a short, accessible read and contains several helpful pointers to firms as they prepare for Solvency II.  The scope of the note is the set of general… Continue reading>

Tip of the Iceberg?

The recent high-profile announcement by QBE has prompted us to set down some thoughts on reserving and capital issues raised here. An open question, outside the scope of this article, is whether, it signals the first concrete sign of an approaching wave of soft-market bad news in the sector. Reserves are inherently uncertain The first… Continue reading>

Advisor rotation

This article is about whether audit and actuary rotation need to be items on a CRO’s agenda Most insurance organisations have had the same auditing firm for many years. Very few audits are actually put out to tender. As far as we can tell, in only 3 countries is there a mandatory requirement to change… Continue reading>

Top trends to look out for in 2013

What do we do now? With Solvency II being put back for two, three, four or maybe more years, firms now have a chance to scale back their programmes and focus on the usual business objectives of making profits and looking after customers. We think it will prove a mistake for firms to pull the… Continue reading>