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Published in London by the Staple Inn Actuarial Society The www.the-actuary.org.uk ActuaryThe mAgAzIne for The AcTuArial Profession April 2011 Hit for six What actuaries can learn from the world of cricket Plus: The rise of the aggregators Inside: A-list apps • Baroness greengross Q&A • Insurance pricing • Apostrophe risk • Latest jobs 001_Actuary_0411 Cover.indd 1 23/03/2011 16:09 Xxxxxxxxxxx Xxxxxxxxx See page 5 for the editorial team Incisive Financial Publishing 32-34 Broadwick Street, London W1A 2HG T +44 (0)20 7316 9000 Publisher/display sales Editorial Philip Harding T +44 (0)20 7316 9393 April 2011 E [email protected] Managing editor Sharon Maguire T +44 (0)20 7316 9016 E [email protected] Recruitment sales manager Melanie Jacob Testing times T +44 (0)20 7316 9618 E [email protected] The fi rst quarter of 2011 is behind us and, while year-end fi nancial reporting has gone into hibernation, actuarial students are ‘all hands to Recruitment sales executive Satvir Kaur the pump’ for the upcoming exam season. It has been an eventful quarter T +44 (0)20 7316 9868 with severe natural disasters in Queensland, Australia, New Zealand and E [email protected] Japan. The loss of lives has been incredibly humbling but I am once again Designer heartened to see the solidarity of fellow human beings in these situations, Nicky Brown despite political unrest stealing the headlines elsewhere in the world. Sub-editor Sam Robson In the realm of insurance, the results from the fi fth Solvency II Production manager quantitative impact study emerged, indicating a near 70% participation Matt Parle T +44 (0)20 7316 9766 rate by European insurers. It appears that the industry remains suffi ciently E [email protected] well capitalised and that, currently, only 15% of insurers would fail to Group editor-in-chief meet the minimum requirements. Anthony Gould Group publishing director Insurers were also getting to grips with the gender discrimination ruling Mark Burton from the European Court of Justice, which could also signal changes for Print and distribution the pensions world at a later date. Meanwhile, Lord Hutton’s plans to Benham Goodhead Print Ltd, Oxon move public sector pensions from a fi nal salary to a career-average basis Subscriptions were generally well received by the industry, if not by the trade unions. For subscriptions from outside In the wider economy, the Federal Reserve, European Central Bank and the actuarial profession: UK, Eire and Europe: £50 a year/£5 a copy. the Bank of England kept interest rates unchanged in March, but there is For the rest of the world: £75 a ongoing speculation about how long that will continue. year/£7.50 a copy. Please contact: Alison Jiggins The Actuarial Profession, Staple Inn, High Holborn, In Profession news, the Council is leading a review of the strategy for the London WC1V 2QT UK Actuarial Profession and will be organising various ways for members T +44 (0)20 7632 2100 E [email protected] to contribute to the strategy development over the next few months — visit www.actuaries.org.uk to stay informed. Students on actuarial science courses at universities may join the Staple Inn Actuarial Society for £6 a year. We continue to seek your input on the content They will receive The Actuary as part of their membership. Apply to: you would like to read about in our new technology Membership Department, column and on other pages. We also welcome your The Actuarial Profession, Maclaurin House, 18 Dublin Street, views in the form of letters to the editor, which Edinburgh EH1 3PP. I am reminded are among the most interesting T +44 (0)131 240 1325 E [email protected] missives in a professional publication. Changes of address should be made known to the membership Finally, the editorial team would like to department as above. give its thanks to James Monk who steps down For delivery queries please contact: from the features team this month. Kim Ferrara E [email protected] Marjorie Ngwenya Internet The Actuary website: Editor www.the-actuary.org.uk SIAS website: www.sias.org.uk [email protected] Actuarial Profession website: www.actuaries.org.uk Circulation 20 888 (July 2009 to June 2010) Follow @TheActuaryMag Join The Actuary’s on Twitter LinkedIn group www.the-actuary.org.uk April 2011 3 003_Actuary_0411 Editorial_v2.indd 3 24/03/2011 16:26 Xxxxxxxxxxx Xxxxxxxxx TheActuary Editorial advisory panel Peter Tompkins (chairman), John Batting, Margaret de Valois, Contents Matthew Edwards, Martin Lunnon, Richard Purcell, Andrew Smith, April 2011 Chris Sutton, Sherdin Omar Editor Marjorie Ngwenya E [email protected] News T +44 (0)7794 031 225 Hit for six Features editor p34 12 Profession news Tracey Brown Test purists grumble 16 Industry news Lane Clark & Peacock LLP, about the rise of E [email protected] 18 People/society news T +44 (0)20 7432 3071 limited-overs cricket, 20 SIAS events Deputy features editors but could actuarial life tables Adam Jorna 44 Appointments and moves Sonal Shah do with a similar makeover, E [email protected] asks Greg Becker Profession news editor Comment Michael Scanlan 3 Editorial E [email protected] T +44 (0)20 7632 1453 Marjorie Ngwenya on these testing times Industry news editor Terren Friend E [email protected] 6 Letters People/society news editor In which actuaries question equality and mortality Kelvin Chamunorwa Towers Watson E [email protected] 8 President’s comment T +44 (0)7502 107 322 Features Ronnie Bowie looks at the way the Profession Student page editor Stephen Paines can flourish within the public domain Government Actuary’s Department 22 Research: Walking a nomadic path E [email protected] Kelly Rendek offers an insight into her year in Mongolia 10 Soapbox T +44 (0)20 7211 2707 with a microinsurance development project Arts page editor Richard Fitzherbert asks whether we should Richard Elliott Scottish Life 24 Insurance: Running on empty make history studies compulsory as part of an E [email protected] George Maher, Andy Staudt and Ryan Warren analyse actuarial education T +44 (0)7814 509 081 Puzzles editor the impact of motor insurance aggregators Tom Bratcher 43 Book review Towers Watson Andrew Smith reviews The Immortalization E [email protected] 28 Insurance: Unfair trading? The OFT’s proposal to restrict insurers’ access to market Commission by John Gray Published by the Staple Inn Actuarial Society. pricing information is flawed, says Jan Iwanik Regulars The editor, The Institute and Faculty of Actuaries and Staple 29 Insurance: Cheap at half the price? 38 Technology Inn Actuarial Society are not Andrew Maclaren looks at float-based valuations The best apps for actuaries responsible for the opinions put forward in The Actuary. No part of this publication may be reproduced, 30 39 Arts stored or transmitted in any form Q&A: Baroness Greengross or by any means, electronic, Marjorie Ngwenya talks to Baroness Greengross about the Richard Elliott argues that small really is beautiful mechanical, photocopying, recording issue of ageing and her links with the actuarial profession or otherwise, without prior written permission of the copyright owners. 40 Puzzles While every effort is made to Win a £50 Amazon voucher in our prize puzzle ensure the accuracy of the content, 32 Modelling/Life: H1N1 — The swine who? the publisher and its contributors Dan Knipe explores what information can be found on accept no responsibility for any 42 Student page material contained herein. the impact of swine flu on deaths in the UK population Stephen Paines applies a familiar testing Important information for subject — to another familiar subject contributors to The Actuary 33 Elegant English: Apostrophe catastrophe By submitting content for Sonal Shah puts the apostrophe in its rightful place publication you confirm that: 43 Actuary of the future (a) You (and/or other named contributors) are the sole author(s) 36 International: Out of Africa Priya Mistry of Towers Watson of the content submitted; (b) The content you submit is Marjorie Ngwenya and Sundeep Raichura report on the original and has not previously opportunities and challenges facing actuaries in Kenya been published (unless you specifically advise us to the Writer of the month contrary); (c) You haven’t previously licensed Jan Iwanik is the editorial team’s choice the use of the content you submit; more content onLine (d) So far as you are aware, for April for his article on market pricing the content submitted will not ■ Life insurance: A better way? by nick rendle information, and receives a £50 infringe any third-party rights, be defamatory or in any way illegal. www.the-actuary.org.uk/875477 book token ■ insurance: Part Vii transfers by Bruno Geiringer courtesy of: © SIAS April 2011 All rights reserved www.the-actuary.org.uk/875483 ISSN 0960-457X www.the-actuary.org.uk April 2011 5 005_Actuary_0411 Contents.indd 5 24/03/2011 15:53 Sponsored by Letters Your view Sponsored by Letters to the editor In which actuaries question equality and mortality Your Letters A question of mortality The editorial team welcomes readers’ I see that in Richard Plat’s article on letters but reserves the right to edit mortality trend that the graph of model them for publication. Please email outcomes shows Dutch male 65 year-olds [email protected]. may expect to enjoy lighter mortality than The deadline for receiving letters for the Alphabetical discrimination Dutch female 65 year-olds by the middle of May issue is 15 April 2011.