RESEARCH PAPERS / ARTICLES

Actuarial Papers

Read the research papers/articles written by our Research Subcommittee to keep yourself updated with the latest actuarial related trends in the world today

BoE warns of threat to cross-border insurance contracts post-Brexit

Millions of people living in the EU and the UK could see their insurance policies become redundant without a political agreement during Brexit negotiations. That is according to a report released today by the Bank of England (BoE), which warns that legislation will be required in both jurisdictions to avoid widespread financial instability. It highlights how there are around six million British customers that buy insurance from EU firms. The central bank said a further 30 mil

Loss of brand reputation fuelling growth in cyber insurance market

The global cyber insurance market was valued at $3.4bn (£2.5bn) last year, but is set to more than quadruple to $16.9bn by 2023, according to a report from P&S Market Research. It reveals that industry leaders believe loss of brand reputation is the main reason for getting cyber coverage, with the banking, financial services and insurance (BFSI) industry the largest consumer. The report comes after a number of high profile cyber-attacks on firms such as Deloitte and Tesco Ban

‘Exploitation’ of gig economy workers hitting pensions by £182m

New legislation was proposed today to crackdown on companies using the excuse of self-employed status to avoid providing workers with basic rights and benefits. The law must change to end the “mass exploitation” of workers by companies who use bogus self-employment to avoid granting basic rights like holiday pay and the minimum wage, MPs have said. In a draft bill published on Monday the Work and Pensions select committee and the Business, Energy and Industrial Strategy (BEIS

Better tech skills could provide £11bn boost to UK GDP by 2022

Enhancing the next generation’s technology skills has the potential to “super-charge” social mobility and economic growth, according to a new report by BT and Accenture. It reveals those with high digital skills earn an average of £10,000 more than their less technologically literate peers annually, and that 51% of young people hope to be in the most advanced bracket within five years. If these ambitions are realised, and the skills are matched with suitable jobs, the report

Leading insurance companies pull $20bn of investment from coal

Insurers with over $4trn (£3.05trn) in assets have announced a $20bn divestment from coal, with a growing number refusing to underwrite any new projects. Insurance companies have pulled out $20bn of investments in coal and a significant number of them are considering to end underwriting for new coal projects, according to a new industry scorecard from the Unfriend Coal campaign. In June 2017, the Unfriend Coal campaign has urged 25 largest direct insurers, life insurers and r

Businesses neglecting cyber insurance in favour of property-related protection

Businesses in Europe, the Middle East, and Africa (EMEA) are spending four times more of their budget on insurance for property, plant and equipment (PP&E) than they are covering cyber exposure. According to a report released today by Aon in collaboration with the Ponemon Institute, which reveals 60% of total physical asset values are protected, compared with 15% of potential information losses. This is despite 38% of EMEA firms suffering a cyber loss in the last 24 months, w

London insurance market subject to FCA competitiveness investigation

The Financial Conduct Authority (FCA) has today launched an investigation into London’s insurance broker market amid concerns that clients are paying too much. It said that “significant changes” in the wholesale insurance sector over the last decade had prompted it to explore whether brokers are using their bargaining power to benefit clients. The London insurance market controls more than £68bn in gross written premium, with the FCA warning the way it functions can have a wi

Interest rate rise: what will it mean for your money?

The Bank of England (BoE) today raised its key lending rate from the historic low of 0.25% to 0.5% after the Monetary Policy Committee voted 7-2 in favour of an increase. This is the first rise since July 2007, and reverses the decision made last August to cut the rate following the UK voting to leave the EU. The move is expected to result in higher mortgage payments for millions of households, but could also provide a modest boost to returns and the funding levels of defined