The IFoA's policy team has been working with members to explore the issues that will be pertinent to the actuarial profession over the new parliamentary term. We have been preparing a series of policy outputs to engage with policy-makers in those debates where actuaries' experience and expertise can add unique value.
This immediate post-election period is a key opportunity, as the newly appointed ministers think about the issues on which they might focus.
Ahead of the election we went through the main parties' manifestos to see how they related to the IFoA's key policy priorities - ageing population, the future of investment policy, regulatory policy, and resource and environment. Unsurprisingly, they had a lot to say. Please find the extracts online here.
As we continue to develop our policy, much of which will be cross-practice, we really want to hear members' views on what key topics will, or should, be addressed by ministers and what messages the IFoA should be considering.
We have created a discussion on the IFoA's LinkedIn page for you to share your views with us.
The outputs we produce reflect the IFoA's position as a non-lobbying organisation that seeks to inform the debate in the public interest. These outputs will be based on the findings of IFoA working parties and, where appropriate, on commissioned research through the IFoA's Research and Thought Leadership Committee.
Here are two examples of issues we think will be important.
In the face of an ageing population, policy-makers face a number of challenges as they determine how best to respond to the changing societal dynamic shaped by a growing proportion of older people. Actuarial expertise can be used to examine the possible economic, health, intergenerational and resource challenges of demographic change.
The IFoA believes that longevity risk is significant and challenging to explain to individuals and mitigate at the individual level. The shift to defined contribution pensions and the new pensions freedoms mean it is important that individuals are helped to understand the significance of this risk and to mitigate it.
Environmental and resource constraints are having an ever-increasing impact on the economy, society and business. The insurance industry is going to be significantly affected by climate change, as some risks become greater and harder to calculate while others reduce. There is also the potential for significant losses on assets and investments under insurance and pension fund management.
The IFoA believes it is important that insurance firms and fund managers explore the implications of the scenarios of most concern, including extreme cases, even if the probability is low, to help us understand what could happen in the future and how we might influence it.
To find out more about our work around the election, email [email protected]