Resources for SA2

Suggested additional reading for Subject SA2 Life Insurance

Students may find it useful to consult some of the suggested reading listed within the 'Solving Problems' section of the SA2 Core Reading to obtain a wider appreciation or different viewpoint when studying a particular topic.

However, students are not expected to have read all of the items on the list or to have gained detailed knowledge of any particular topic additional to that contained in the core reading. Equally, students may use other sources of information to enhance their wider understanding, such as:

• The financial press and weekend supplements
• The Actuary Magazine
• bulletins and other publications from reinsurers and consultancies
• Publications and websites of reinsurers and actuarial consultancies
• Papers from the Institute and Faculty of Actuaries and the Staple Inn Actuarial Society (SIAS)
• Continuous Mortality Investigation bulletins
• Future IFoA events and webinars found on the IFoA event calendar
• Past health and care-related presentations made at IFoA events, including session and webinar recordings, which can be found on the IFoA's Virtual Learning Environment (VLE)
• Life-related presentations made at conferences that sit within other practice areas (e.g. Sustainability, Health and Care).

Actuarial Standards

The Institute and Faculty of Actuaries is responsible for the setting of ethical actuarial standards. The Financial Reporting Council (FRC) is responsible for the setting of technical actuarial standards.

• Technical actuarial standards can be found on the FRC's website
• Other professional guidance material can be found on the IFoA website within the Regulatory communications and consultations area.

Articles and papers

These article and paper references from within 'Solving Problems' of the SA2 Core Reading are listed by year for each unit within SA2 to which they are most applicable. However, some reading material may be relevant to more than one Unit while one paper listed at the end under 'Wider reading'  is not obviously applicable to any specific Unit.

Members can access the following BAJ papers from the links below once they have logged into their member portal.

Specific products and general business environment

• Lessons from closure: an analysis and comparison of the issues facing closed life funds and closed pension schemes. Campbell, A.C.; Grimley, D.C.; Pallister, J.K. et al.
  BAJ (2006) 12(3): 639-727. DOI https://doi.org/10.1017/S1357321700004645
• Variable Annuities: past, present and perfect. Shallis, P; Jones, G; Buckle, I; Hills, M., SIAS, 2009.
• A holistic lifecycle financial planning framework. Corrigan, J; Matterson, W., SIAS, 2010.
• Retail Distribution Review - an introduction - part 1, part 2. Kissoon, A.; Ealham, G. SIAS, 2013.

Legislation and regulatory environment

• The Penrose Report. A discussion meeting held by the Institute of Actuaries. Abstract of the discussion. [Report of the Equitable Life Inquiry]. 
  BAJ (2004) 10(5): 1047-1070. DOI https://doi.org/10.1017/S1357321700002944
• The ECJ Gender Directive ruling - one year on [slide presentation]. Texier, L.; Bhudia, R. SIAS, 2014.

Regulation, valuation and capital management

• Market consistent valuation of life assurance business. Sheldon, T. J.; Smith, A. D. 
  BAJ (2004) 10(3): 543-626. DOI https://doi.org/10.1017/S1357321700002701
• Current developments in embedded value reporting. O'Keeffe, P. J. L. et al. 
  BAJ (2005) 11(3): 407-496. DOI https://doi.org/10.1017/S1357321700003226
• Notes on options, hedging, prudential reserves and fair values. Wilkie, A. D.; Owen, M. P.; Waters, H. R. 
  BAJ (2005) 11(2): 199-312. DOI https://doi.org/10.1017/S1357321700003068
• The cost of capital for financial firms. Exley, J.; Smith, A. D. 
  BAJ (2006) 12(1): 229-301. DOI https://doi.org/10.1017/S1357321700004761
• Practical implementation challenges of internal models under Solvency II. Austin, R et al., SIAS, 2009.
• Market-consistent valuations and the implications of the recent financial crisis. Foroughi, K. Proceedings of the International Congress of Actuaries, Cape Town, 2010.
• Developing a framework for the use of discount rates in actuarial work. Cowling, C.A. (2011) Discount Rate Steering Committee (Chair: C A Cowling) 
  BAJ (2012) 17(1): 153-211. DOI https://doi.org/10.1017/S1357321712000098
• Insurance accounting - a new era? Foroughi, K. et al. 
  BAJ (2012) 17(3): 562-615. DOI https://doi.org/10.1017/S1357321712000098
• Demystifying the risk margin: theory, practice and regulation. Brown, A. SIAS, 2012.
• Dynamic management actions. Clark, D.; Kent, J.; Morgan, E. SIAS, 2012.
• Stress testing and scenario analysis in life insurance and beyond. [slide presentation] Leach, D. et al.; The Stress and Scenario Testing Working Party. SIAS, 2014.
• Heavy models, light models and proxy models. Hursey, C. et al.; The Proxy model Working Party. 2014. (Sessional research paper, 2014)
  BAJ (2015) 20(1): 147-166. DOI https://doi.org/10.1017/S1357321714000221 (abstract of discussion of the paper)

Professional guidance

• Technical Actuarial Standards: TAS D, TAS R, TAS M, Insurance TAS, Transformations TAS.
• Other Professional Standards Directory, IANs and non-mandatory resource material as listed in the Core Reading.

Treating customers fairly

• Treating life customers fairly [Report from the Life: Treating Customers Fairly Working Party]. Staffurth, J. et al. SIAS, 2007.

Risk management and controls

• Financial aspects of longevity risk. (2004) Richards, S. J.; Jones, G. L. SIAS, 2004.
• Longevity in the 21st century. Willets, R. C.; Gallop, A. P.; Leandro, T. et al. 
  BAJ (2004) 10(4): 685-832. DOI https://doi.org/10.1017/S1357321700002750
• Governance and risk management in United Kingdom insurance companies. Deighton, S. P. et al. 
  BAJ (2009) 15(3): 503-566. DOI https://doi.org/10.1017/S1357321700005729
• Living with mortality: longevity bonds and other mortality-linked securities. Blake, D.; Cairns, A. J. G.; Dowd, K. 
  BAJ (2006) 12(1): 153-228. DOI https://doi.org/10.1017/S1357321700004736
• Model risk: daring to open up the black box. (sessional research paper, 2015) - Morjaria, N. et al.; Model Risk Working Party.
  BAJ (2015) 21(2): 229-296. DOI https://doi.org/10.1017/S1357321715000276
• The nature of longevity risk. Dhamani, S. SIAS, 2015.

Management of with profits business

• Asset shares and their use in the financial management of a with-profits fund. Needleman, P. D.; Roff, T. A. 
  BAJ (1995) 1(4): 603-688. DOI https://doi.org/10.1017/S1357321700001276
• Measuring and managing the economic risks and costs of with-profits business. Hibbert, A. J.; Turnbull, C. J. 
  BAJ (2003) 9(4): 725-786. DOI https://doi.org/10.1017/S1357321700004347
• Equity between with-profits policyholders and shareholders. O'Brien, C.D. 
  BAJ (2012) 17(2): 435-474. DOI https://doi.org/10.1017/S1357321712000074

Product design and pricing

• A market-based approach to pricing with-profits guarantees. Hare, D. J. P. et al. 
  BAJ (2000) 6(1): 143-213. DOI https://doi.org/10.1017/S1357321700000842
• Reinventing annuities. Wadsworth, M. J.; Findlater, A. J. M.; Boardman, T. V. SIAS, 2001.

Wider reading

• Effective decision making in a life company. Iqbal, I. 
  BAJ (2005) 11(1): 133-182. DOI https://doi.org/10.1017/S1357321700003172.