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Monday 30th November 2015
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updated 5.50pm, Wednesday 29th April 2020
The IFoA president is keen to stretch the reach of the profession now that its traditional spheres (pensions and insurance) are in decline.
The IFoA president is keen to stretch the reach of the profession now that its traditional spheres (pensions and insurance) are in decline. There are many tasks that an actuary can perform, but very few that only an actuary can do.
There's a saying in marketing that nothing kills a bad product more effectively than good advertising. A bank that professes to be a listening bank but doesn't listen won't last long.
If you think we won't make that mistake, think of the strapline we adopted around the turn of the century: Actuaries make financial sense of the future.
Very seductive, but what does it mean? Did we live up to it? Around that time, Equitable was collapsing, bond yields were falling and a noose was being tightened around defined benefit schemes. To what extent did actuaries:
? tell life companies to look at their matching position and get into bonds?
? warn trustees and employers of the implications that enhanced leavers' rights, abolition of ACT credits, mortality improvements and falls in real returns would have for pension fund costs?
I won't answer that question but would suggest that before we seek new pastures we should show leadership in the areas we're traditionally associated with.
The changes to annuities, the challenges of improving longevity and dementia/Alzheimer's in an environment of very low interest rates calls for lateral thinking. For example, why not try equity-linked annuities? With dividend yields exceeding bond yields, we could design a marketable product.
Cut through the opaque wall of Solvency II and show insurance companies how to manage their future.
Success in these areas would improve our credibility in other fields.
There's a saying in marketing that nothing kills a bad product more effectively than good advertising. A bank that professes to be a listening bank but doesn't listen won't last long.
If you think we won't make that mistake, think of the strapline we adopted around the turn of the century: Actuaries make financial sense of the future.
Very seductive, but what does it mean? Did we live up to it? Around that time, Equitable was collapsing, bond yields were falling and a noose was being tightened around defined benefit schemes. To what extent did actuaries:
? tell life companies to look at their matching position and get into bonds?
? warn trustees and employers of the implications that enhanced leavers' rights, abolition of ACT credits, mortality improvements and falls in real returns would have for pension fund costs?
I won't answer that question but would suggest that before we seek new pastures we should show leadership in the areas we're traditionally associated with.
The changes to annuities, the challenges of improving longevity and dementia/Alzheimer's in an environment of very low interest rates calls for lateral thinking. For example, why not try equity-linked annuities? With dividend yields exceeding bond yields, we could design a marketable product.
Cut through the opaque wall of Solvency II and show insurance companies how to manage their future.
Success in these areas would improve our credibility in other fields.
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