The November 2022 publication of the HM Treasury response to the Solvency II reform consultation brought us one step closer to clarity on future of UK prudential regulation, with several specifics to be worked through. A year on, this talk explores the developments to date and the potential implications of the reforms for the UK bulk purchase annuity market. In early 2023, subject expert groups between PRA and industry considered key topics such as matching adjustment attestation, notching, and investment flexibility. HM Treasury published draft statutory instruments including details on the proposed calibration for the risk margin. These activities have been complemented by an initial June consultation from the PRA covering areas such as transitional measures, internal model applications, and capital add-ons, with further consultation expected in September. The talk is expected to: summarise key developments over 2023, ensuring up-to-date knowledge on the SUK reforms, to allow delegates to develop a good understanding of likely future regulatory regime; provide views on the potential impact of developments to encourage discussion and further reflection among delegates; explore potential next steps and any areas of uncertainty to enable delegates to form opinions on how their work may be impacted.
Speakers: Anthony Plotnek and Ed Hawkins, WTW; Kenneth McIvor, The Phoenix Group
The November 2022 publication of the HM Treasury response to the Solvency II reform consultation brought us one step closer to clarity on future of UK prudential regulation, with several specifics to be worked through. A year on, this talk explores the developments to date and the potential implications of the reforms for the UK bulk purchase annuity market. In early 2023, subject expert groups between PRA and industry considered key topics such as matching adjustment attestation, notching, and investment flexibility. HM Treasury published draft statutory instruments including details on the proposed calibration for the risk margin. These activities have been complemented by an initial June consultation from the PRA covering areas such as transitional measures, internal model applications, and capital add-ons, with further consultation expected in September. The talk is expected to: summarise key developments over 2023, ensuring up-to-date knowledge on the SUK reforms, to allow delegates to develop a good understanding of likely future regulatory regime; provide views on the potential impact of developments to encourage discussion and further reflection among delegates; explore potential next steps and any areas of uncertainty to enable delegates to form opinions on how their work may be impacted.
Speakers: Anthony Plotnek and Ed Hawkins, WTW; Kenneth McIvor, The Phoenix Group
This panel discussion 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. The session will define the gaps and challenges faced when it comes to implementing and using modern modelling techniques from a risk-perspective, in the context of regulation. They will also discuss best practice guidelines and how to take a practical approach to AI risk management. Practical outcomes include: an overview of key issues related to data science and AI regulation and risk management from an actuarial perspective; industry examples of the key modelling issues in practice in traditional and non-traditional actuarial work; best practice guidelines for data science and AI risk management; practical tips for data science and AI risk management; This discussion is aimed at participants who are looking to implement AI or data science within their functions or looking to improve their risk management in these domains. No prior technical knowledge on the topic is required. Research findings from the working group is available on request at info@actuartech.com. Comments on the panel discussion are invited either before or during the session.
Speakers: Valerie duPreez, Dupro Advisory Actuartech, Richard Galbraith, Canada Life, Charles Cowling, Mercer, Perry Thomas, Chair of the AI Ethics Working Party, Kalpana Shah, IFoA President-elect
The insurance industry is at an inflexi on point. Expectations for experience are evolving at a rapid pace while financial confidence is falling across younger generations. The lifetime and financial needs of today’s customers presents a challenge for most. People are living longer, with more flexibility needed at every life stage. How can insurers develop and adapt their market strategy to succeed in the long term. The session will consider: what products are going to be important for tomorrow’s customers; how insurers can develop the right products to meet customer needs throughout their life stages, enabled by the right technology and capabilities; what experience tomorrow’s customers are expecting; how insurers can identify and relate appropriately to their future customers, to build trust and long-standing relationships; what support tomorrow’s customers will need; different approaches to advice and guidance, and how insurers can develop suitable models to promote financial confidence and good outcomes. The session will include Strategy& (PwC’s insurance strategy experts) and customer transformation leads, with reflections from an industry participant.
Speakers: Ewen Tweedie, Jessica Lewis and James Cousins, PwC
The life reinsurance market in Bermuda has grown significantly in recent years. According to an industry report published last year, Bermuda saw an 8% increase in the total market share of global L&A ceded reserves in 2021. This growth continues to be observed in 2022 with numerous large annuity transactions being announced between US entities and Bermuda reinsurers. With its regulatory framework attaining Solvency II equivalency and NAIC reciprocity, Bermuda is expected to continue seeing further growth in the near future within the capital intensive life insurance space. In this session, experts from Deloitte Bermuda will provide a first-hand perspective of the life insurance market in Bermuda, covering topics such as: the wave of new entrants into the Bermudan market: upcoming changes in Bermudan regulations; other key priorities of the BMA; industry outlook on the future prospects of Bermuda; common reinsurance structures that are used within Bermuda; We will the look at the impact of all of this on both the local and international market, particularly on its impact on UK life insurers.
Speakers: Clayton Chuah and Ankit Baweja, Deloitte
Brexit provided the UK with a once-in-a-generation opportunity to reform its regulations to better suit the UK economy. As a result, the last 2 years have seen copious regulatory change. The Financial Services and Markets Bill has led the way for the Edinburgh and Mansion House Reforms as well as the much anticipated reforms to Solvency II. Against the backdrop of an aging population, a volatile macroeconomic and geopolitical environment, and widening pension and insurance gaps, this session will take a step back from the detail to examine the whole regulatory landscape for pensions and insurers through a consumer lens. Starting from regulatory objectives, it will explore system-wide structural issues to the consumer’s wallet. In particular, the session will shine a light on the inter-generational and socio-economic differences in outcomes for consumers. It will examine the continuing trend away from guaranteed products and a lack of innovation in insurance products. Looking to the future of the UK life and pensions market, the session will also question whether the reforms go far enough to remedy the challenges that consumers are facing, and not just the challenges of policymakers, regulators, and industry. In the midst of detailed debates on immeasurable and abstract insurance jargon, have we lost sight of the consumer?
Speakers: Sarah O’Sullivan and Connar McBain, Phoenix Group
This session will illustrate the transformative potential of generative AI. It will do this through a range of concrete AI use cases, showcasing a wide range of powerful applications seen in this field. Most discussion of large language models (LLMs) focuses on their ability to write essays or computer code, which is impressive but less relevant to actuaries. Instead, this session will examine how LLMs can be augmented with insurance domain knowledge and be integrated into processes to accelerate actuarial modelling and financial reporting. This presentation will build on earlier versions presented at CILA and the Society of Actuaries, Ireland, with a wider range of practical insurance-related use cases. It will outline the workings of the LLMs that underlie tools like ChatGPT and Github Copilot. Given the rapid advances in this field, it will also provide an update on other leading AI models advances (that is, ‘non-ChatGPT’ models). It will discuss the pros and cons and potential future capabilities of these models. The agenda will cover: introduction to LLMs; AI use cases; expert systems; documentation generation; writing code; model translation; what’s new in 2023 ‘Q3.5’?
Speakers: Matthew Edwards, Daniel Ramsay, and Arlen Galicia Carreon, WTW
Life Conference 2023: Plenary 2 - Roger Bootle
Lord Professor Robert Winston is a doctor, scientist, politician, TV presenter and business speaker. Best known for his inspiring television medical documentaries based on fertility, reproduction and technological innovation is this practice, Robert’s pre-eminent expertise in the field makes him the ideal TV presenter and host. Professor Robert Winston is a Professor of Science and Society along with an Emeritus Professor of Fertility Studies at Imperial College. Within his own research, Robert currently looks to improve the production of stem cells to reduce genetic abnormalities in embryos. In 1995, Robert became Baron Winston, life peer of the London Borough of Hammersmith. Robert speaks frequently on medicine, education, science and the arts whilst also holding posts such as Chairman of the Science and Technology Select Committee.
Speakers: Kalpana Shah (IFoA President) and Ben Kemp (IFoA CEO)