Association News

August 2017

Deutsche Aktuarvereinigung, Germany

Annual Autumn Meeting
This year’s Autumn Meeting and the meeting of the DAV’s scientifically orientated partner organization DGVFM will take place from November 20–21 in Stuttgart. It will include the meetings of the German ASTIN and Life Sections on the first day, followed by the AFIR and Health Sections as well as the new Actuarial Data Science Section. As in previous years the DGVFM and the German Organization of Insurance Sciences will host the subsequent conference of the Fachkreis Versicherungsmathematik at the same venue.

More than 800 members are expected to participate to learn about and discuss developments in the industry and the most important fields of actuarial mathematics.

New Education System Starts January 1, 2018
The DAV is reforming its education system. Starting in 2018 the new structure will consist of six exams focusing on basic knowledge and four involving specialist knowledge. The basic knowledge, which covers the IAA Education Syllabus, includes the mandatory exams Economic and Legal Environment, Applied Stochastics, Financial Mathematics and Risk Assessment, Actuarial Mathematics, Modeling and Enterprise Risk Management (ERM), and Corporate Management. Two seminars, Professionalism and Communication, must also be completed. The four specialist exams can be chosen from among Life Insurance, Health Insurance, Non-life Insurance, Pensions, Financial Mathematics, Mathematics for Building Societies, ERM, and Actuarial Data Science.

In this new structure candidates will gain a broad understanding of actuarial techniques as well as specialized knowledge in the field of their choice, preparing them for the industry’s future requirements.

New Zealand Society of Actuaries (NZSA)

Project on Decumulation Options Undertaken by the Retirement Income Interest Group
Actuaries in many countries are trying to find consumer-friendly solutions to the question, “How much income can I draw down from my retirement savings each year, given how long I want my retirement savings to last?”

The NZSA’s Retirement Income Interest Group (RIIG) has evaluated this problem in its new paper Decumulation Options in the New Zealand Market: How Rules of Thumb Can Help. It was recently launched at the New Zealand Parliament by the Commerce and Consumer Affairs Minister, with support from the Financial Markets Authority and the Commission for Financial Capability.

The key proposals include a set of rules of thumb to be integrated into the different ways retirees in New Zealand receive information on how to take income from their retirement savings. Rules would be available to be integrated into messages from providers, distributors, commentators and others who communicate with New Zealanders on decumulation matters. The set would be approved as suitable but not mandated by a relevant body, such as the regulator. The rules’ presentation would vary in different situations. For example, an information website might simply describe them and show the “suitable for” descriptions, while a robo-advice website could give access to a calculator that generates income profiles from the rules based on user-input parameters.

The RIIG says these rules need not be a complete solution; they are simple and are intended to complement rather than replace other sources of advice or guidance. They can be used with suitable recommendations regarding when to seek independent financial advice.

They may not be suitable for other countries, but the process the RIIG used can be followed with appropriate assumptions. The full paper is here and a summary paper here.

American, Academy of Actuaries (AAA), U.S.

Webinar on Global Pandemic Risk
The AAA hosted a webinar, A Global Look at Pandemic Risk, in which presenters gave an overview of the escalating factors for epidemic and pandemic risks and associated costs with respect to infrastructure, technology and lifestyle modifications.

Eddy Rubin, chief science officer for the biotech company Metabiota, gave an overview of the history of epidemics; Petra Wildemann, Metabiota’s head of business development and risk products for Europe and the UK, presented on large-scale risks in reinsurance; and Paul Nunn, head of catastrophe risk modeling for SCOR Global P&C, covered catastrophe risk modeling. The webinar was moderated by Susan Mateja, Chair of the Academy’s Health Practice International Committee.

Society of Actuaries, U.S.

2017 Living to 100 Monograph Now Available
The 2017 Living to 100 Monograph collects sessions, papers, panels and transcripts from the 2017 Living to 100 Symposium. Topics range from longevity’s impact on social support systems to the practical needs of aging populations. The monograph features papers presented at the symposium, along with video presentations from Nir Barzilai (the Institute for Aging Research, Albert Einstein College of Medicine) and Judith Campisi (Buck Institute for Research on Aging, Lawrence Berkeley National Laboratory). Remaining Living to 100 monograph material will be available later this year.

The SOA is planning the 2020 Orlando Symposium and will keep you updated on the release of the call for papers.

New Research on the Future of Retirement in China
LIMRA and the SOA recently published the results of new research on the current state and future opportunities of the retirement market in China.
The research series, authored by Lauren Finnie, examines consumer attitudes, beliefs and behaviours on various retirement issues, including: retirement goals and objectives; retirement risks; retirement savings; available retirement options; use of financial advisers; and strategies for managing retirement risks.

The research included 2,013 participants aged 35 to 70 from 23 areas in China. The size and diversity of China’s massive population made sample design critical. Using face-to-face interviewing, the LIMRA/SOA team was able to include both urban and non-urban respondents.

“For most workers and retirees, retirement means freedom… a chance to do what they want with their time, including hobbies and traveling,” researchers found out from categorized open-ended responses. But urban and non-urban individuals expressed different goals for their retirement. While maintaining health and well-being is of greater importance to non-urban respondents than to their urban counterparts, non-urban respondents are more likely to value spending more time with their friends and family in retirement.

To read the six editions of the report, click here or contact SOA research actuary Ronora Stryker.

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