Plenary 2 - Stress Event Resilience; A case study on the Inflation Shock of 2022
The non-transient inflation shock of 2021-2022, harking back to economic and political instability of the 1970’s, is a major challenge for economies, financial institutions and consumers. In particular life insurance companies who need to deliver on policy promises to millions of policyholders will be challenged. This challenge will be to meet the benefit expectations of their policyholders, as well as to control cost inflation and protect shareholder values.
This presentation will evaluate the 2020-2024 time frame of this stress event and what actuaries did, should or could have done to ensure their stakeholders have a plan to be resilient against such events. The presentation will cover the issues and impacts on:
- Investment portfolios
- Investment guarantees in savings and annuity products
- Asset-liability matching
- Adequacy of policy benefits
- Insurer solvency and profitability
The presenters cover a wide range of angles on the topic within the life insurance space:
- Rebecca Mac Donald, Hymans Robertson
- Su Siew, Aviva Colin Dutkiewicz, Aon
- David Chen, Just
- Ree Chen
They are all members of the IFOA Stress Event Resilience Working Party formed to look at improving resilience to stress events across all sectors with a focus on improving consumer outcomes and serving the public interest.