Thematic Review Reports
Alan Marshall, Review Actuary in the Actuarial Review Team, talks about the success of the first Thematic Review Report and looks ahead to the next reviews being planned.
The Actuarial Monitoring Scheme (AMS) was formally launched in September 2019 after a period of consultation with members. 2020 saw the expanded AMS team put in place, consisting of two experienced actuaries alongside project management and coordinator support. During the year, work progressed on thematic reviews on pensions and general insurance topics which had been announced when the scheme launched.
In December the team was delighted to publish its first Thematic Review Report – Pensions: actuarial factors used to calculate benefits in UK pension schemes. The report highlighted the very good standard of advice being provided by scheme actuaries while recommending improvements on how current standards are being met, and potential further research and benchmarking for commutation factors. There was significant interest following the launch of the report with very positive initial feedback and engagement. We look forward to further stakeholder engagement on the key recommendations, including an upcoming IFoA webinar on 28th January. Meanwhile work continues on the other review launched during 2020: Involvement of actuaries in pricing of UK home and motor insurance, and we hope to report on this during Q2 2021.
Additionally, the team is now turning its mind to a set of new topics approved by the IFoA Regulation Board for data gathering and thematic review activity during 2021 and into 2022, including Climate-related risk and Equity release mortgages. The team is looking forward to further interaction with members and their employers as our review work continues and develops. Thank you to members and organisations who have supported our work to date.