IFoA Conference 2023

Plenary 1: Navigating the permacrisis: the actuarial profession’s role in weathering the storm

Permacrisis. noun. ‘an extended period of instability and insecurity, especially one resulting from a series of catastrophic events’.

The Collins Dictionary 2022 Word of the Year perfectly captures the multiple crises of the last few years, from the war in Ukraine, significant global economic and political turmoil, and the resulting cost-of-living crisis to increasingly regular extreme weather events and growing social inequality, to name but a few. This panel will bring together experts from different fields to give their views on the many threats facing society and how the profession is rising to the challenge to tackle the numerous issues at hand. How can actuaries continue to step up and steer their organisations through these choppy waters? What are the threats and opportunities facing the profession in doing so? And is it all doom and gloom or is there light at the end of the tunnel?

Speakers confirmed so far: Greg Thwaites, Research Director at the Resolution Foundation; Baroness Camilla Cavendish, former Head of the No 10 Policy Unit.

Workshop A offers a range of topics by practice area. Within each workshop, you have the option of joining one of 7 sessions, all of which run at the same time.

Workshop A1: How do actuaries impact levelling up and net zero?: introducing New Capital Consensus project on the investment system

There is a general consensus that we need investment to address societal goals, such as levelling up and net zero. New Capital Consensus’s hypothesis is that the regulation and structure of the investment system means that this investment cannot be achieved, and the real economy is starved of investment to the overall detriment of savers. The project is applying a systems approach to understand the current investment system, its stocks, flows and interrelationships, to identify the leverage points that enable system-wide change.

The interactive presentation will cover the work on the current investment system and challenge the audience on the leverage points. Audience participation will be a key part of the session.

New Capital Consensus (NCC) is a collaboration between FinSTIC, Chatham House, the University of Leeds and Radix Big Tent to apply systems thinking to the investment system. FinSTIC was established by the IFoA to bring the benefits of a systems thinking lens to financial services.

Speakers: Peter Scolley, M&G plc; Nick Silver, Callund consulting

Workshop A2: Introduction to Superfunds and Clara

Trustees/sponsors who still cannot afford buyout are looking for an affordable new end game that improves outcomes for members and allows the sponsor to immediately settle its pension obligations, enabling the sponsor to focus on its business while no longer distracted by a DB pension scheme.

This presentation provides an introduction to Superfunds and Clara:

• Recap on the rationale for Superfunds
• How TPR's regime has ensured members can have confidence in Superfunds
• How the Clara model improves member outcomes and aligns the interests of capital providers and members
• Which types of schemes can benefit from transferring to Clara.

Speaker: Ashu Bhargava, Clara Pensions

Workshop A3: IFRS 17 – storytelling

The session will take the audience through examples, exposing them to key disclosures step by step. It will help them to understand key IFRS 17 disclosures so as to be able to present a financial story to stakeholders.

Speaker: Sachal Gandotra, 4most

Workshop A4: Solvency II reform update

This session will provide an update on the latest discussion around Solvency II reform and drill down into some of the more contentious areas of change, considering the views of both industry and the regulator.

Speakers: Graham Cornish and Ellie Hutchinson, Grant Thornton UK LLP

Workshop A5: How do we pool risk in the future? Is there a fair solution to this problem?

Actuaries have been at the forefront of risk pooling since its inception. Over time, the approaches and pricing have changed enormously, but the general concepts remain unaltered. Some individuals gain financially while others lose financially, yet all benefit from the certainty of cover. With the additional use of data and increasing number of rating factors used, pools are getting smaller. More individuals are therefore excluded from that certainty of cover. The IFoA has recently worked with the Building Resilient Households Group on the poverty premium and is involved in the Access to Insurance initiative. There is therefore a very real public interest need for us to consider this trend.

This session will look at what is ‘fair’? What is the right balance between fairness to all customers and society, and how do we decide this? Do we have a say in it? Should we? What do we see as the end point, as we could continue down this path. Could we end up at the 'insurance of one', by which time we have completely erased the concept of risk pooling?

What should we be doing about it? Anything, nothing, everything?

Speakers: Nick Reilly, Matthew Edwards and Duncan Minty

Workshop A6: Climate emergency – tipping the odds in our favour

Most analysis looks at what we expect to happen but this presentation will provide a framework for looking at things that we don't expect to happen, but which if they did would be a catastrophe.

As well as cutting-edge science and an honest view of the probabilities of ruin, we also cover the positive action that might drive large-scale benefits, which actuaries should be central to.

This is a presentation of an IFoA paper Climate Emergency: tipping the odds in our favour, co-authored with Sir David King and Sandy Trust.

Speakers: Alex Martin and Riti Patel, EY; Lucy Saye, Deloitte; Sandy Trust, M&G plc

Workshop A7: Actuaries are human too – managing behavioural risks in expert judgement

Expert judgement underpins all aspects of actuarial work, from data gathering through to final reporting.

In this session the speakers will explore how behavioural biases and our own natural attitudes and emotional response to risk can affect our judgement, individually and in groups.

The speakers will draw on case studies from actuarial disciplines including pensions, risk and insurance, present feedback from industry surveys on behavioural bias, discuss findings from focus groups, and reflect on how we can reduce the influence of bias in actuarial work.

Speakers: Edward Harrison and Zoe Burdo, LCP

On the blog

Edward and Zoe preview their presentation in this blog piece: Actuaries are human too: managing behavioural risks in expert judgement

Workshop B offers a range of topics by practice area. Within each workshop, you have the option of joining one of 7 sessions, all of which run at the same time.

Workshop B1: AI ethics risks – discussion about APS and other regulatory focus

The discussion will focus not just on AI being a new tool but one where that tool is given unprecedented powers of decisions. Governance and standards are therefore hugely important and we need actuarial intelligence to go with artificial intelligence.

The panel will focus on governance and responsibilities, report what is happening with the GAD and the FRC and ask the audience if we should launch a CAIRA certification (Chartered AI Risk Actuary).

Speakers: Atreyee Bhattacharyya, Haoyuan Loh and Nina Ndebele

Workshop B2: Capital backed funding arrangements – the risks and opportunities of external capital for DB schemes

Recent improvements in defined benefit funding levels have brought forward the target date of many schemes’ journey plans, yet the target end state may still be a number of years off, for a variety of reasons. External capital can potentially enable a more defined path and/or earlier time to reach the long-term objective, but this remains a new investment area with a variety of approaches in the market.

This interactive session from the Capital Backed Funding Arrangements Working Party will provide an introduction to this developing market, and consider how risks and opportunities of the various approaches might be assessed.

Speakers: Derek Steeden, Invesco; Adolfo Aponte, Cardano; Ben Stone, Mercer; Jonathan Repp, EY

Workshop B3: Future-gazing – insurance in the fourth industrial revolution

The use of telematics in motor insurance has gained some traction already, but what other types of business could benefit and what new business models might emerge? We will look at this through the actuarial lens – the data generated by these technologies can be very different from the datasets that actuaries are used to. What do we need in our toolkit to handle and analyse it?

Speakers: Edward Plowman, Hitachi Vantara

Workshop B4: Seeking opportunities from the new Consumer Duty

The FCA is introducing its new Consumer Duty and the requirements are far reaching. This talk will look at a broad set of examples from different markets.

Other FCA strands of work will be closely linked with the Consumer Duty and we will explore the overlaps with diverse topics such as the use of customer data, AI biases and greenwashing.

The Duty will be a higher benchmark for actuaries to operate under so we will consider ways for the actuary of today to maximise value from the guidance by seeking out new opportunities to provide better outcomes for customers.

Speakers: Karen Brolly, Siobhan Lough, Dharshini Navaratnam and Natanya Taylor, Hymans Robertson

Workshop B5: Mental health in insurance – in conversation with the IFoA Mental Health Working Party

At this interactive roundtable session, the IFoA Mental Health Working Party will explore and get your input into its work. The talk will cover:

• The landscape of mental health in insurance, spanning industry bodies, charities and other groups actively involved in the topic of mental health in life and health insurance
• Digital mental health tools that are being adopted by the life and health insurance industry to support the mental health of customers across the insurance policy lifecycle
• Additional data or research that might provide opportunities for new insights into mental health risk factors and support the design of insurance products and processes
• Supporting our own mental health and the mental health of others.

Speakers: Lisa Balboa, Joe Wilson, Mark Jones, Maryse Nashime, Benjy Gordon – IFoA Mental Health Working Party

Workshop B6: Net zero for asset owners – how to meet targets while considering your fiduciary duty

We have seen a flurry of asset owners announcing their commitments to reach net-zero emissions across their portfolios by 2050. However, setting a credible plan to reach these targets while also remaining focused on fiduciary duty to beneficiaries is the next challenge.

In this session we will consider:

• The interaction between fiduciary duty and addressing climate change
• Key considerations for asset owners setting their net zero roadmap
• The importance of having a ‘real world’ impact when working towards net zero targets.

Speakers: Niamh Boyle, EY

Workshop B7: The wider influence of actuaries

Ever wondered how actuaries are influencing the world, right this minute? In this panel we will host panellists from various ‘non-traditional’ areas, for example medicine, manufacturing, technology, private equity, etc. The panellists will share their unique contributions as actuaries to these areas and provide insights into the role of actuaries in the wider world in the future.

Speakers: Sian Walker and Ed Bujok-Stone, EY

Plenary 2: Life after Covid: how will it impact our work and the skills we need?

What skills did actuaries use to have a big impact on the pandemic? What is the actual impact of the pandemic on NHS waiting lists and the knock-on impact on health and insurance? This plenary session will cover these questions as well as focusing on how the work during Covid could be built on for the future, for instance working with other professions, and what communication was most effective. Finally, this session will address future considerations around NHS funding, excess death drivers, health inequalities and the impact of these on pensions, life, and health and care practice areas.

Speaker: Stuart McDonald MBE

Workshop C offers a range of topics by practice area. Within each workshop, you have the option of joining one of 7 sessions, all of which run at the same time.

Workshop C1: Heiferinflation: wealth creation for the poor through cows during hyperinflation

Nhaka is a start-up life company in Zimbabwe, Africa, with a remarkable story. It was founded seven years ago by a UK-qualified actuary with a vision to protect and grow the wealth of low-income African consumers. Today, Nhaka serves 60,000 Africans, most of whom are new to formal financial services. In an era of hyperinflation, Nhaka has changed financial services. Products are denominated in live cattle, to preserve real value. Nhaka has been recognised as a top three operator in its industry and is identified by the Zimbabwean government as an entity of national priority.

Speaker: Kelvin Chamunorwa, Nhaka Microinsurance

Workshop C2: DEI considerations for actuaries

DEI has slowly been gaining traction and is now fairly well documented across our collective industries, with lots of positive news about the progress that is being made across the board. Taking the overarching theme and deciphering the role that we can all play as actuaries is perhaps less clear. This session aims to enlighten and inform on the part that all can play to continue to make progress in this important area, featuring the work of our IFoA DEI working parties. The actuarial community is well placed to help provide expert insight and potential resolution to the issues at stake.

Speakers: Alexandra Miles, Legal and General; Christopher Cullen, EY

Workshop C3: From bias to black boxes: understanding and managing the risks of AI – an actuarial perspective

We will explore key issues and challenges in AI risk management from an actuarial perspective, based on discussions and outcomes from a transregional industry focus group. We will define the gaps and challenges faced when it comes to implementing and utilising modern modelling techniques from a risk-perspective, in the context of regulation, and discuss best-practice guidelines:

• An overview of key issues related to data science and AI regulation and risk management
• Industry examples of the key modelling issues in traditional and non-traditional actuarial work
• Best practice and practical tips for AI risk management

Speakers: Valerie du Preez, Dupro Advisory Actuartech; Richard Galbraith, Canada Life

On the blog

Valerie and Richard preview their presentation in this blog piece: From bias to black boxes: understanding and managing the risks of AI from an actuarial perspective

Workshop C4: Inclusivity in the insurance industry: right to be forgotten and beyond

‘Right to be forgotten’ has been introduced as part of the European Commission’s Beating Cancer Plan to ensure patients who have recovered from cancer are not treated in a disadvantageous way when applying for insurance. Using a data-backed approach, we will explore how inclusive the protection industry really is, from cancer survivors to the LGBT community. We will explore how this may impact customers and what it could mean for the future of the protection industry.

Speakers: Gillian O'Keeffe and David Waters, Pacific Life Re

Workshop C5: Update from the CMI

This session will provide an overview of recent outputs from the CMI, with a particular focus on:

• Recent analysis by the Assurances Committee of the experience of mortality, accelerated critical illness and standalone critical illness under term assurances in 2021
• Mortality for pension schemes members in 2014-2021 and plans for the ‘S4’ Series pensioner mortality tables
• Hot topics from the Mortality Projections Committee, including:
  
  • recent mortality
  • fitting UK and US mortality projection models to each other’s data
  • analysis to assist subscribers in selecting a long-term rate
  • plans for CMI_2022
• Other CMI outputs in 2023

Speakers: Matthew Fletcher, AON; Steve Bale, Munich RE; Chris Reynolds, SiriusPoint

Workshop C6: Loadshedding will start in 55 minutes – a South African proverb

While the research presented will be based on a South African case study, the demand-side nature of this energy crisis intervention is universal, as the scaling of products that directly benefit insurers can be rapid, and the need to reduce electricity demand (or increase supply) is a worldwide concern. The session looks at the costs of procurement, installation and ongoing maintenance of boiler telematics devices and also examines the benefits to insurers of claim reductions and how this reduction can be used to fund the costs. The actuarial analysis focuses on the inclusion of this device (as opposed to other such devices) to assess the viability of its inclusion in the product design of homeowner insurance policies.

Speaker: Zane Heyl, Insight Life Solutions

Workshop C7: Building your personal strength

Building self-resilience and agility through communications, leadership, mindfulness and engaging your own personal diversity to the benefit of your team.

• Times of uncertainty undermine most people
• Volatility, uncertainty, complexity, ambiguity (VUCA) are all unsettling aspects of change and we respond differently
• Those with a deep experience of change, or 'change' DNA that offers better coping skills, can take 10 deep breaths and survive another challenge. As memorably stated by Nelson Mandela: “For me, survival is the ability to cope with difficulties, with circumstances, and to overcome them.”

The session will provide a toolkit to build resilience.

Speaker: Sharon Constancon, Genius Boards Limited

The AGM is for members only. You can confirm your attendance at the AGM when booking for the IFoA Conference 2023. If you would like to attend separately without joining the conference, learn more and book your place at Annual General Meeting 2023.

You can confirm your attendance at the Presidential Address when booking for the IFoA Conference 2023. If you would like to attend separately without joining the conference, learn more and book your place at IFoA Presidential Address 2023.

Plenary 3: Delivering the IFoA DEI strategy: making our profession diverse, equitable and inclusive for everyone

As an international, multicultural membership organisation with more than 32,000 members in over 110 countries, the IFoA recognises, values and embraces the benefits of diversity, equity and inclusion. Through its DEI strategy published in 2022, the IFoA aims to champion and embody the benefits of a globally diverse and inclusive profession for all – and encourage members to think about these issues in both their work and their workplace. This plenary will bring together experts from across the industry to give updates on initiatives spanning the DEI agenda, from encouraging social mobility across the financial services sector to improved understanding of access and inclusion requirements for disabled and vulnerable consumers. The session will also provide attendees with updates on the IFoA’s progress on implementing the DEI strategy since its publication.

Speakers: Peter Hamilton, government disability and access ambassador for the insurance sector; Maz Bown, Aviva; Vincent Keaveny, Progress Together; Stephen Mann, CEO of the IFoA.

Workshop D offers a range of topics by practice area. Within each workshop, you have the option of joining one of 7 sessions, all of which run at the same time.

Workshop D1: Nature-related risk reporting: issues and challenges

The purpose of this presentation will be to view the progress of the IFoA Climate and Nature-Related Risk Reporting Working Party. We plan to share updates on the progress of our research regarding the quality of climate and nature-related risk reporting practices by large UK pension schemes and insurance companies, both in addressing TCFD and TNFD recommendations and in implementing the GFANZ transition plan guidance. The presentation will also shed light on instances of best practice and broader levels of engagement with various aspects of climate and nature-related risk reporting, including scenario analysis, performance metrics, governance, risk management and strategy aspects.

Speaker: Paul Klumpes, Climate Change Risk Reporting Party

Workshop D2: Professional and sole trusteeship: where to go from here?

Panel discussion on the increasing prominence of professional trusteeship, in particular the sole trustee model. Topics will include the range of schemes suitable for this model and the direction of travel, conflicts and independence, member representations, and whether more or less regulations or guidance (actuarial or broader) might be needed.

Speakers: Donna Matteucci (chair); David Fairs; Hilary Salt; Pavan Bhardwaj

Workshop D3: Update from the Climate Change (General Insurance) Reserving Working Party

Based on our GIRO workshop presentation, this wide-ranging talk covers the motivation and the initial findings of the working party, an introduction to climate litigation, results from our survey of climate change reserving practices and questions for the chief actuary when considering their year-end opinion. We believe this talk will be of particular interest to GI practitioners, but also to a wider audience of practitioners considering their organisation's practical response to climate change.

Speakers: James Orr, Bank of England; Alex Marcuson, Marcuson Consulting; Steve Patfield, Hiscox

Workshop D4: The Bermuda transfer triangle

The concept of the ‘transfer value’ has been baked into the Solvency II regime from the outset, with increased focus in light of the UK's impending reforms, but can there be one true value?

We consider:

• What a transfer value is, how it could be determined, and how it may vary between different parties and jurisdictions
• The dynamics of transferring a portfolio to a Bermuda-based insurer, including an insight into the island’s solvency regime, which is becoming ever-more relevant given its rapidly growing popularity for funded reinsurance
• Might future reform of Bermuda’s own solvency rules further skew the dynamics?

Speakers: Liam Peek and Andrew Kenyon, NatWest Markets

Workshop D5: Advanced approaches to analyse income protection experience

The Covid-19 pandemic, economic influences and resultant mental health challenges may have led to a perfect storm for disability products globally. To demonstrate the value of applying advanced analytical approaches, Gen Re has collected disability income experience data from Canada, the United Kingdom, South Africa, Australia and New Zealand. We investigate product design characteristics and economic influences, as well as views relating to the effect of the Covid-19 pandemic in this study. This will help the audience determine whether recent events could have resulted in the need for a major overhaul of these products.

Speakers: Zoe Woodroffe and Louis Rossouw, Gen Re

Workshop D6: Earth Jenga – can actuaries learn to play by new rules?

Introducing the concept of Earth Jenga – a twist on Jenga in which we change the rules by painting the blocks blue and green to represent our natural resources. As we extract them to put on the top of the tower, they become yellow, representing our extractive economy. The trick is to keep the tower stable while building the economy. This talk covers how to do that and looks at opportunities for actuaries as we move into the sustainability era.

Speaker: Sandy Trust, M&G plc; Vian Sharif, NatureAlpha

Workshop D7: On motivation: the best of hybrid

The world of work has changed.

The dark cloud of Covid shattered our working patterns, thrusting flexibility upon us, forcing us to reassess how we want to work. We are now grappling with the complexities of this new world. How do we mentor colleagues? How do we manage hybrid meetings? How do we brainstorm and build networks? How do we impress the boss? How do we absorb and retain workplace culture?

Drawing on inspiring ideas from renowned thinkers and from a reference group of 54 volunteers, this talk addresses the question: ‘What does the best of hybrid look like?’

Speaker: Jenny Segal, Speaking With Images

Plenary 4: The role of actuaries in the financial services revolution

Speakers: Helen White, CityUK; Ben Westerman, The Aldersgate Group
Chair: Matt Saker, IFoA Immediate Past President

Workshop E offers a range of topics by practice area. Within each workshop, you have the option of joining one of 7 sessions, all of which run at the same time.

Workshop E1: LDI another day

Liability Driven Investment (LDI) has become more prominent than ever as a topic. Too frequently, the descriptions of risks and recent events overlook important details, which we aim to explore:

• A brief history and benefits of LDI
• Funding-level developments including sensitivity to hedge ratios
• Key leverage instruments
• Collateral ‘headroom’ and waterfalls as key collateral management tools
• Why different mandate types exist (pooled / segregated)
• Why pooled funds are widely accepted to have suffered most
• Upcoming considerations (including, for example, the DB Funding Code)
• The desire for LDI moving forwards
• Additional collateral management options

Speaker: Michael O'Connor, NatWest Markets

Workshop E2: CDC spotlight: global insights for UK action

In the UK there is political, actuarial and industry desire to extend CDC into multi-employer and master trust designs; this requires overcoming a number of challenges.

This session will look at learnings from international experience, with a particular focus on the wide variety of CDC plans in Canada, and will consider what solutions those learnings point to for the UK.

This presentation will cover:

• Whole-of-life designs
• Decumulation-only designs
• Regulatory and actuarial challenges
• Commercial provider approaches
  

Speakers: Barbara Sanders, Simon Fraser University (Canada); Simon Eagle, IFoA CDC Working Party and WTW

Workshop E3: Embedding ad-hoc inflation calculations into reserving going forward

The last 18 months have seen inflation rates increase across the world. The majority of insurers responded by developing models to quantify this uncertainty and added loadings to reserves. The rate of inflation is slowing down and we expect it to reduce significantly within the next year. What does that mean for models developed in 2022? Will they still be relevant or will insurers need to release these loadings? We will reflect on how insurers reacted to increasing uncertainty and will bring in recent inflation forecasts to look forward at how the approaches might hold up next year end.

Speakers: Dorian Hicks and Lisa Quickfall, Mazars

Workshop E4: An interactive session which will look at the purpose and content of the Actuaries’ Code

Learn how professional standards are a vital part of the actuary’s toolbox – helping to build resilience in a constantly changing environment. Looking more closely at the changing work environment – how have expectations in the workplace changed and what are some potential implications? These will also be illustrated by findings from recent IFoA Thematic Reviews, in particular the corporate pensions advice review that will have recently reported.

Speakers: Peter Heffernan, Pension Corporation; David Gordon, IFoA

Workshop E5: Next generation critical illness

CI product development has traditionally focused on increasing conditions. Coverage is now broader, but does it provide benefits aligned to the lifestyle impact of the medical condition? This talk focuses on the changing nature of illnesses and the impact of severity-based CI models, where benefits are fully aligned to the impact a condition has on lifestyle and products offer multiple claim payments over a customer’s life. Insights will be shared from insurer's/reinsurer's perspectives, covering themes such as trends in medical advances, the nature of critical illnesses, innovation from global CI markets and how we ensure accessibility of CI for future generations.

Speakers: Jason Eaketts, Swiss Re; Szymon Marszalek, VitalityLife

Workshop E6: Why have the non-financial capital elements been left out from most ESG strategies?

Measuring and understanding the non-financial capital elements can be challenging when having to factor them into the net-zero strategy for your firm. This talk will explore the challenges and opportunities that the market is facing and look to tap into our versatile skillset to tackle these: sparce data – lack of funds – toolkit availability. Despite not being immediately obvious and/or possible to measure the risk associated with items such as biodiversity and modern slavery, as a profession we are equipped to find an optimum solution and bring them into conversations with key stakeholders.

Speakers: Hamda Masoud, Grant Thornton; Shana Vida Gavron, Endangered Wildlife OU

Workshop E7: How to future proof your career

In volatile times and the constantly changing world of work and careers it is crucial that we approach our career management and development mindfully and deliberately. This session will focus on 10 pillars of successful career management. Packed with tips and applicable strategies, the presentations and workshops aim to inform, inspire and kick you into action.

The presentation will cover:

• Current trends and changes in the world of work
• Why you need to future proof your career
• 10 pillars of successful career management.

Speaker: Jelena Radonjic, WhatWork Career Coaching Limited

Plenary 5: Pensions adequacy: a ticking timebomb or ‘keep calm and carry on’?

Supporting savers to ensure they can retire in comfort with an adequate pension has been a long-standing priority for the IFoA and its members. Automatic enrolment (AE) has brought millions of people into pension saving, but are policymakers resting on their laurels and becoming complacent about its impact on savings levels? Do we need an injection of fresh ideas to build on the successes of AE to ensure savings rates keep up with expectations? Will the savers of today have enough for the retirement of tomorrow? Who is being left behind? What more can be done to support higher levels of saving and engagement with pensions? Hear from our panel of industry experts on how we can build a new consensus on pensions adequacy and ensure all can retire in dignity.

Speakers confirmed so far: Chris Curry, Director, Pensions Policy Institute and Principal of the Pensions Dashboard Programme; Hetty Hughes, Manager, Long Term Savings Policy, ABI; Heidi Karjalainen, Research Economist, Institute for Fiscal Studies; Leah Evans, Associate Partner and Head of Pensions Risk Transfer, EY Parthenon Pensions Team; Rt Hon Sir Stephen Timms MP, Chair – Work and Pensions Select Committee