1 October 2024
The Institute and Faculty of Actuaries (IFoA) has published its Scottish policy prospectus titled ‘Building a resilient Scotland: Embedding long-term thinking’.
Using insights from actuaries in Scotland, the prospectus sets out the steps that the Scottish Government could take to ensure long-term thinking is considered in policymaking processes. Embracing the long term and taking risk-informed approaches to investing for growth and building a resilient economy for the future, will support a healthy population.
In the foreword Ian Sharpe, Leader, IFoA Scottish Board, says:
“This policy prospectus suggests ways in which government and civil society can take an alternative approach to ensure a longer time horizon is considered in the policymaking process.
“Combining the expertise of actuaries with the innovative Scottish mindset and our deep financial services heritage could put Scotland on a fast-track in a world that faces the need to change.”
The prospectus focusses on four critical themes that require long-term thinking:
Climate change is one of the greatest challenges facing Scotland. The prospectus outlines recommendations to the Scottish Government to address the risks of the changing climate and to seize the economic opportunity presented by the energy transition. This includes implementing a cross-economy National Transition Plan, creating a Country Risk Officer role, and implementing the Natural Environment Bill.
To create a fair and resilient social care system, the prospectus urges government to raise public awareness to combat the perception that all care is free, and to formulate policy so that personal and state provision can work together to prevent needs going unmet. It also recommends undertaking long-term financial analysis to drive sustainable and intergenerationally fair policy solutions.
To support a financially resilient Scotland, the prospectus recommends government provides Scots with tools and guidance throughout their lives so that they can take control of their financial future. It also recommends increasing financial education within schools, and government to work with industry to develop solutions to support financial resilience and education.
Infrastructure investment drives growth and is integral to supporting the Scottish economy. The prospectus urges government to harness the impact that Solvency UK will have on unlocking infrastructure investment, use public-private partnerships to help drive infrastructure investment, and identify where improvements are needed to ensure that interdependent systems are both effectively utilised and protected.
The wide variety of issues covered in the document highlights the breadth of the actuarial skillset. At its core, the actuarial profession exists to help governments, businesses and a diverse range of sectors to understand and plan for future events.
The next steps for the IFoA and its members are to engage across the political spectrum to demonstrate how actuaries can help build solutions to the challenges outlined above, for the benefit of Scotland and beyond.