Actuarial profession must face up to new challenges over the next 10 years
News types: Speeches, Statements
Published: 17 April 2015
The actuarial profession faces many challenges over the next decade according to the Financial Reporting Council (FRC). Stakeholder confidence in the actuarial profession is strong and provides a good basis for the profession to meet the challenges with confidence.
At an event to mark 10 years since the Morris Review of the actuarial profession, Stephen Haddrill, FRC Chief Executive, commented,
“While the industry has come a long way, the next 10 years will see many more challenges and emerging risks including pension reforms, Solvency II and an increasingly global role for actuaries. This means that the work of actuaries and the need for effective oversight and regulation is vital.”
He continued that,
“The FRC’s latest survey, on the perceptions of actuarial quality, shows that the profession is held in high regard by stakeholders. 96% of those surveyed were fairly or very confident in the integrity of the profession itself.”
However, some users surveyed were still concerned that actuarial information lacks clarity or is overly complex and needs to be demystified. This is an area the FRC will continue to address.
The full speech by Stephen Haddrill (PDF).
Notes to editors:
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The FRC is responsible for promoting high quality corporate governance and reporting to foster investment. We set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work. We represent UK interests in international standard-setting. We also monitor and take action to promote the quality of corporate reporting and auditing. We operate independent disciplinary arrangements for accountants and actuaries; and oversee the regulatory activities of the accountancy and actuarial professional bodies.
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Regarding actuarial work, The FRC is responsible for:
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The setting and maintenance of Technical Actuarial Standards;
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and Oversight of the regulation of actuaries by the Institute and Faculty of Actuaries
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The FRC commissioned Ipsos MORI to conduct a survey of perceptions of actuarial quality among stakeholders in actuarial information (including both users and practitioners). In total 302 interviews were conducted by telephone between 26th November 2014 and 16th January 2015. All survey participants have a job role that involves them in reviewing or working with actuarial information, even if only on an occasional basis, and all are based in the UK. The sample consists of at least 25 interviews each across ten stakeholder groups: directors of quoted companies, insurance company executives, insurance company non-executive directors, financial auditors, investment managers, company pension scheme managers, company pension scheme trustee, pension actuaries, insurance actuaries, and intermediaries (financial journalists, IFAs, lawyers). Results are not weighted.