Actuaries
T h e m ag a z i n e o f t h e Ac t ua r i e s I n s t i t u t e
6 CEO’s Column
Introducing
David Bell
– New CEO of the
Actuaries Institute
8 Comment
More Than Just an Actuary
10 Comment
Telematics
20 Report
Falling Profits for Australian Life Insurers
22 Leading Actuary Profile
An Interview with Phillip Everett
28 President’s Column
A Significant Year Ahead...
March 2014 ISSUE 187
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Contents
March 2014 • ISSUE 187
Events
4
Coming Up
Editorial
5
Learning the Lessons of the Past
❙ Sharanjit Paddam
Ceo’s column
6
Introducing David Bell – New CEO of the Actuaries
Institute ❙ David Bell
Comment
8
More Than Just an Actuary
❙ Niki Appleton / Amanda Aitken
Comment
10 Telematics
❙ Kaise Stephan / Rick Shaw
Under the spotlight
13 Charles Pollack
The Actuarial Pulse
14 Goals and Resolutions
❙ Genevieve Hayes
RePORT
18 2013 J.P. Morgan - Taylor Fry General Insurance Barometer
❙ Sharanjit Paddam / Kevin Gomes / Josh Jaroudy
8
rePort
20 Falling Profits for Australian Life Insurers
❙ Jennifer Lang
Leading Actuary Profile
22 An Interview with Phillip Everett
❙ Alice Crowley
Actuaries taking the lead
24 Bringing Soul into the Workplace
❙ Andrew Brown
Event Notice
26 Financial Services Forum – Scoring Goals in a
Changing World
President’s column
28 A Significant Year Ahead…
❙ Daniel Smith
In the margin
30 Call for the Doctor Actuary
18
❙ Genevieve Hayes
Ask Gae!
31 Old Enough to Not Know Better
❙ Gae Robinson
Education Update
32 Latest Results
❙ Philip Latham
High Schools program
33 Actuarial Studies: Problem Solved
Actuaries at Play
34 African Cichlids
❙ Ben Qin
Congratulations
35 Welcome to New Members – February 2014
Obituaries
36 Philip James Ryan
COVER: Actuaries institute CEO DAvid Bell
❙ Judi Byrne / Martin Hession / Ian Ferres /
Ron McDonald
37 Lindsay Joseph Cutler
❙ Ken Dance
Staying ahead
38 Don’t Fall Behind Your Competitors!
❙ Sue Wetherbee
Notice
39 Practice Risk Management eLearning Course
20
March 2014 Actuaries
3
Actuaries
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Next Editions
A188 -April 2014
A189 - May 2014
Deadline for contributions: 1 April 2014
Coming Up
Mar
Insights – SPS 160: Discussion notes on the
Actuarial and Self-insurance components of
APRA Superannuation Prudential Standard
Thursday, 20 March, Sydney
Thursday, 20 March, Melbourne
Thursday, 20 March, Webinar
ACTUARIES Editorial Committee
Editor
Sharanjit Paddam
editor@actuaries.asn.au
INSTITUTE HQ Team members
Young Actuaries Program – Risk and Reward in
Your Career
Thursday, 20 March, Hong Kong
Katrina McFadyen
Hayley Schultz
Assisting Editors
Genevieve Hayes
Chris Larkin
David Millar
Candice Ming
Solai Valliappan
Insights – New Capital Standards for Private
Health Insurers
Monday 24 March, Sydney
Monday 24 March, Melbourne
Monday 24 March, Perth
Magazine Design
Kirk Palmer Design, Sydney
www.kirkpalmerdesign.com.au
CFA Society of Sydney – The Credit Conundrum
Monday 24 March, Sydney
Printing
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Paper: Precision
by Spicers Paper
Australian made, ECF, EMS
Apr
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4
Actuaries March 2014
Young Actuaries Program – Networking and
Industry Trends
Thursday 3 April, Brisbane
Group of Retired Actuaries Melbourne
Monday 7 April, Melbourne
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Insights – Assessing ICAAP in the FCR
Wednesday 19 March, Sydney
Wednesday 19 March, Webinar
Insights Networking – CFA Society of Sydney –
Investment Considerations when Approaching
Retirement
Tuesday 8 April, Sydney
May
Financial Services Forum
Monday 5 – Tuesday 6 May, Sydney
Editorial
Sharanjit Paddam
editor@actuaries.asn.au
Learning the Lessons of the Past
© Alex Mit–Shutterstock.com
I
t has been six years since the GFC, and whilst Australia
escaped the worst of the global recession, many businesses
felt the pinch of the ensuing credit crunch. It seems that
everyone is keen to move on and put the experience behind
us, but it would be a mistake to forget the lessons we so
painfully acquired. Not least amongst them is the potential for
systemic failure in the financial system, and how quickly sources
of capital can dry up and become an anchor rather than a float
for an economy trying to fight its way out of a recession.
Arguably, Australia survived the GFC based more on the lucky
timing of the Chinese driven commodities boom, than our
regulators explicitly prohibiting the banking activities that led
to the crisis overseas.
The near future does not look so bright for Australia.
Historically, the end of a mining investment boom has been
marked by a recession. It remains to be seen if we’ll manage
to avoid the prevalent downside risks, or if our luck will run
out. The 2012 Financial System Stability Assessment of Australia by the IMF
made clear the risks of our current financial system: a combination of high
household debt, elevated house prices, reliance on offshore funding, and a
highly concentrated and interconnected banking system.
Australia’s four major banks hold 80% of banking assets and 88% of
residential mortgages – the highest concentration of banking assets of
any developed nation, and the largest exposure to systemic risk. There are
major implications for competition, with the IMF noting the major banks are
“enjoying a funding cost advantage derived partly from implicit government
support and earning larger net interest margins than smaller banks and
international peers”. No wonder the non-bank lending sector has all but
collapsed in Australia, despite our booming housing market.
APRA followed up on the IMF’s report by identifying the big four Australian
banks as Domestically Systemically Important Banks (DSIBs) requiring 1% of
risk weighted assets as additional capital. However, this was at the bottom
of the range recommended by the IMF and APRA also allowed the banks to
reduce management capital buffers to allow for this increase. The net impact
was no actual capital increase for DSIBs.
The government is to be commended for instigating the Financial System
Inquiry (FSI). This is an important time for actuaries to add their voices to the
debate. As experts in financial risk management, predictive analysis, longevity
and consumer behaviour we have a significant and useful contribution
to make.
In December 2013, the Actuaries Institute recommended that the FSI terms
of reference be expanded to include: additional data on the financial service
industry; a debate on the balance of market efficiency and prudential security;
the impact of the longevity challenge; the role of superannuation and SMSFs
as providers of capital; and the role of general and life insurance. Most of
these have been included in the FSI’s revised terms of reference. A working
party has been set up to provide further feedback both now and after the
draft report has been published. I encourage you to get involved.
The near future does
not look so bright for
Australia. Historically,
the end of a mining
investment boom
has been marked by
a recession.
Sharanjit Paddam
March 2014 Actuaries
5
CEO’s Column
M
y first column has been written during my second
week at the Institute – we all know that starting a
new job means a blur of meetings, getting to know
your team (which I place a priority on) and trying
to wrap your mind around issues that you are not completely
familiar with, all in an unfamiliar work environment.
My early impressions of the Institute are very positive, and
I’m looking forward to continuing its good work and learning
as much as I can about the profession. Melinda Howes
handed over an organisation that is well run and in strong
financial shape. The Council has approved a strategy and
business plan which makes it very clear where your Institute
should be focusing its attention when it comes to member
services, education, CPD and supporting events. Sustaining
and developing the actuarial profession and the
business of the Institute will remain strong
points of focus for me, as well as making sure
that we continue to enhance the brand
of the actuary, the profession, and the
reputation of the Institute.
I am looking forward to working
with Daniel Smith and the rest of
the Council, as well as the HQ
team, to deliver the best possible
service for all of our members. My
previous experience of running an
industry body (acknowledging of
course the differences between
the Bankers’ Association and the
Institute), and my understanding
of Council’s guidance so far, is
that we should be maximising
the benefits that members get
for the hard-earned fees they
Introducing...
David Bell
– New CEO of the Actuaries Institute
6
Actuaries March 2014
David Bell
david.bell@actuaries.asn.au
pay their industry body and, in particular, paying close
attention to, and taking account of, what members actually
want from the Institute.
To make sure I stay grounded, and remain clear about
what you want in terms of service delivery, I’m making it
a priority to meet as many members as possible starting
with the many Institute practice and other business-related
committees. I will eventually take to social media as well –
a form of communication I think has enormous potential
for us to develop and use at the Institute. In the meantime,
I encourage you to contact me, write me a letter, or drop
into the Institute if you would like to catch up.
My contact details are:
+61 (0) 2 9239 6106
david.bell@actuaries.asn.au
And by the way, when you drop into see us please note
that we are moving from Challis House to our new
premises at Level 2, 50 Carrington Street early April.
By the time of publication we should have been able
to let you know the moving date. The new HQ will have
better member facilities, especially our large meeting and
conference room.
I always like to understand the context in which I am
working. It helps provide perspective and direction when
making decisions, and trying to work out what should be
immediate priorities. And for me, attending an economists’
forum in Sydney, just as I was writing this column, was
instructive.
While it has been said that if you ask five economists
a question you’ll get five different answers, the panel I
listened to seemed to be on the same track when it came
to 2014, with Australia’s prospects continuing to improve
on the back of a Chinese economy that continues to
grow (though not in double-digit figures) and despite the
Economist newspaper’s most recent headline ‘China loses
its allure’. Coupled with a seemingly improving US economy,
a Eurozone that will hold its own, along with a steady
Japanese economy, the right external conditions exist for a
more positive year.
At the same time we have a relatively new Federal
Government that is hitting its straps and is preparing to
examine various aspects of our economy, including the
much awaited Financial System Inquiry lead by David
Murray, and the National Commission of Audit.
Having previously run the Bankers’ Association, you
would expect that I have a strong interest in public policy
and ensuring the right government policies and regulations
are in place to ensure our economy prospers. I also
understand the value of developing a good reputation for a
sector or industry, and the benefits that accrue as a result.
Of course, it’s absolutely critical that when the Institute
represents the views of its members, those views must have
been agreed to by Council, and have the support of the
broader membership. While this takes time and care, it’s an
important step to take. In doing so I also look forward to
working with our designated and trained spokespeople from
the membership, and helping them with any experience I’ve
been able to gain in previous roles.
I am very interested in building the
Institute’s capacity to influence public policy
and make sure that the views of members
are accurately and appropriately reflected
when the Institute publishes its views.
So what does this potentially mean for my approach at
the Institute?
Actuaries have a crucial role to play in business, not only
as valued and expert advisors in existing and new fields
like ‘big data’, but also as business leaders. Let me extend
the point. We all understand that the Global Financial Crisis
changed the financial services sector forever in profound
ways. One striking example, I believe, is the relationship
between senior business executives and the complex
financial models which underpin the very existence of the
financial services sector and some other industries. It’s
critical that senior executives understand how these models
work, and their relationship to the performance of their
particular business. Actuaries are almost uniquely placed
in the post-GFC world to do this because of their detailed
and profound knowledge of these models. And it’s this type
of ability that I think needs to be brought to the fore when
people think of actuaries, and their potential to both lead
and advise organisations. There are, of course, other similar
examples which can show the important contribution of
actuaries.
On the public policy front I am very interested in building
the Institute’s capacity to influence public policy and
make sure that the views of members are accurately and
appropriately reflected when the Institute publishes its views
through submissions and public commentary. The Financial
System Inquiry is a great opportunity for us to get our views
on the record for this once-in-a-generation review, and
I’m committed to making sure we deliver the best possible
submission and follow-up. Doing so can only enhance the
standing and reputation of actuaries and the profession.
For those of you who are vaguely interested in my nonwork life, I can report that I’m married to Wendy with three
teenage/early 20s children (none of whom are studying to
be actuaries). My army background remains in my DNA and
I try to keep fit. I play an average game of golf, ride a Harley
Davidson (tragic I know), yearn for a life in south west France
one day, and help my family run a small cattle business near
Taree on NSW’s mid-North Coast. In my spare time I’m doing
a PhD on a World War II Australian general called Sir Iven
Mackay, who led the first major Australian expeditionary
contingent into battle against the Italians at Bardia, Libya,
delivering a triumph of arms for Australia
and its allies, at a time when hope and confidence were in
short supply.
It goes without saying that I’m really looking forward to
the job and really understanding the views and interests
of as many members as possible, so that I can do my job
even better.
March 2014 Actuaries
7
Comment
More Than
Just an Actuary
“The best actuaries are the ones that… through their
engaging personalities and communication skills are able to
take the brilliance from their spreadsheet and share it with a
wider audience” – Nicolette Rubinsztein, General Manager of
Strategy at Colonial First State
WHY EMPLOY AN ACTUARY?
Through our experience at WorkSafe and prior
roles, it seems clear that all actuaries bring the
following skills to an organisation:
• an ability to understand numbers;
• an understanding of lifetime costs and long
term trends;
• sound training in using hypothesis testing
to work through uncertainty; and
• an aptitude for looking at problems
holistically (remember those Control Cycle
classes!).
These skills make actuaries a somewhat
natural fit for WorkSafe and other injury
insurance schemes, where there are key
linkages between the long tail nature of the
business, claims liabilities and premiums.
Our ability to understand these linkages is
very important.
8
Actuaries March 2014
WHAT MAKES SOME ACTUARIES
STAND OUT FROM THE CROWD?
The skills listed previously are not enough,
on their own, to make you the kind of
actuary that people kick the door down to
visit. Why not? Here’s what some of our
WorkSafe colleagues thought.
• Numbers aren’t the only thing that
counts. In a business like WorkSafe,
people matter most; in particular,
injured workers who have needs and
expectations that are just as important as
the financial viability of the scheme.
• To stand out from the crowd you need to
go beyond identifying and measuring a
problem by helping to find solutions. To
be really valuable, you also need to guide
the business in how best to implement
those solutions:
• Businesses require decisiveness. In
actuarial science, there’s never a right or
wrong answer. We can analyse data all day
but eventually we need to use ‘gut feel’ to
put forward a recommendation that the
business will have confidence in adopting.
• Qualitative information is important. This
might take the form of subject matter
expertise, the market place and the
broader economy, which all add another
layer of information to consider.
• You have to be able to influence and
engage others, sometimes without the
authority to do so. It is all very well to
undertake some sophisticated analysis
that identifies the root of a problem and
then develop a solution. However, if you
aren’t able to engage others and bring
them with you on the journey, then your
solution won’t get very far.
• You need to speak in plain English to
translate complex actuarial concepts into
language that will keep your audience
awake.
ATTRIBUTES OF A VALUABLE
ACTUARY
Taking all of the above into account, a
position description to recruit an actuary
who is more than just an actuary might
include the following capabilities:
•numeracy;
• strong analytical skills;
• an ability to think in lifetime costs and
long-term trends;
• confidence in working with uncertainty;
• a holistic view of the world; including
being able to consider non-financial
impacts;
• experience in identifying, measuring
and solving problems and implementing
solutions;
• an aptitude for giving weight to
qualitative information before forming
conclusions;
• an ability to influence and engage others;
• communication skills to explain difficult
actuarial concepts in plain English; and
• a collaborative working ethos to
enable formation of strong business
partnerships.
© LongQuattro–Shutterstock.com
H
ave you ever thought about what
sort of actuary you are or what sort
of actuary you’d like to be? Have you
daydreamed about people fighting
to book time in your diary because your
advice is so insightful and strategic? Frank
Mitchell Redington once said “An actuary who
is only an actuary is not an actuary.” We think
this is worth keeping in mind as you progress
through your actuarial career.
In this article, we draw on our
experiences and those of our colleagues at
WorkSafe Victoria to speculate on how to
become more than just an actuary.
Niki Appleton
niki_appleton@worksafe.vic.gov.au;
Amanda Aitken
amanda_aitken@worksafe.vic.gov.au
It’s important to stress that these ideas
aren’t new. Many of the same ideas have
been discussed by leading actuaries and
other professionals in the financial services
industry.
WHY DON’T ALL ACTUARIES HAVE
THESE SKILLS?
There are a few possible reasons…
Typical Actuarial Personality
Actuaries are stereotypically considered
logical, analytical, longer term thinkers. We
were interested to see that both Leonie
Tickle’s research and participants in David
Miller’s ‘be an influential Actuary’ CPD tour
tended to confirm this stereotype. That
does not mean all actuaries match this
stereotype, nor that those born with these
strengths can’t also develop others. It does,
however, highlight the need for actuaries to
be self-aware and learn how to build nontechnical capabilities that may not come
naturally to us.
Actuarial Education
The current actuarial syllabus focuses very
heavily on technical knowledge. We see
the use of many low level verbs such as
‘define’ and ‘estimate’, rather than high level
verbs such as ‘compare,’ ‘discuss’ or ‘advise.’
The structure of most of the syllabus gives
little opportunity to develop non-technical
capabilities. There is little opportunity
for students to practise engaging,
communicating and influencing.
Community Expectations
What came first: the chicken or the egg?
Did we create the ‘nerdy’ actuary perception
in the community by focusing on our
technical expertise or have the business
community’s expectations driven us further
in that direction? It’s probably a bit of both.
Professional Circumstances
Workplaces play an important part in
shaping our development. In-house
actuaries in large corporations have the
opportunity to be exposed to different
professionals and the inner workings of
the business, helping them to understand
the importance of qualitative information
and how to operationalise projects. On the
other hand, consulting firms place a lot
of focus on developing soft skills, such as
coaching, influencing and communication.
It is important for actuaries to experience a
balance between both environments but this
is not always the case.
HOW DO WE ENCOURAGE TODAY’S
STUDENTS TO DEVELOP THESE
VALUABLE SOFT SKILLS?
Steps we have already made
The Institute has already undertaken a
number of steps towards achieving this goal,
including:
• Actuaries for the Future Project
(Capability Framework & Assessment
Tool);
• Education Strategy Working Group;
• Rebranding Campaign;
• Recognition of non-traditional areas;
• Mentoring Program;
• CPD Tour events; and
• Professional Standard 1: CPD.
However, there must be more that we could
be doing.
What we can learn from other professions
We looked at several other professional
bodies for ideas. Most have now developed
capability frameworks or competency
standards. The medical profession stood
out as being more progressive than most.
Medical course applicants must undertake
‘Multiple Mini Interviews’ that test soft skills,
such as cultural sensitivity, collaboration and
communication. The course aims to align
both technical and non-technical skills.
For example, one course component is
‘Self-attribute’ under which students are
expected to demonstrate understanding,
empathy and management of uncertainty.
Mapping the capability framework to the
education syllabus
This process provides an opportunity to:
• identify areas of the current syllabus
which the capability framework can
map to;
• identify which capabilities are missing
from the syllabus;
• reassess service delivery and integrate
other assessment formats, such as those
involving collaboration opportunities; and
• consider providing formal soft skill
courses (e.g. Myers Briggs).
Increase diversity of personalities
Research by Leonie Tickle suggests that
the profession could benefit from a greater
diversity of personalities. Similarly, our
WorkSafe colleagues stressed the value of
having a range of personalities on a team.
The Institute’s rebranding campaign is a
good starting point, but the technical nature
of the current education syllabus may still
be a deterrent for non-typical actuarial
students.
Development opportunities within
workplaces
We need to ensure that students are aware
of these development opportunities and
seek them out. Perhaps we should measure
this as part of continuing professional
development requirements?
Coaching/Mentoring
We could make it compulsory for all students
to have a coach/mentor who can reinforce
the importance of:
• developing self-awareness;
• identifying capability gaps;
• having a range of experiences by working
in different types of organisations,
on different projects and by getting
exposure to people from different
backgrounds; and
• seeking out learning opportunities that
focus on soft skill development.
Enhancing existing Institute guidelines and
messaging
Greater emphasis should be placed on soft
skill development within the continuing
professional development framework,
perhaps by requiring a minimum number
of hours in this area. The professional
education requirement seems a natural
place to increase the soft skill focus, given
that these skills can be developed through
on the job training, coaching and mentoring.
SO WHAT DOES IT ALL MEAN?
As a profession, we have identified an
issue: we want to shift the stereotyped
image of actuaries being technical boffins,
and instead, promote ourselves as thought
consultants. The Institute has started to
address this through various initiatives.
However, some of the most valuable soft
skills may not come naturally to many of us
and our current education process falls short
on developing these. There is more that we
can and need to do to solve this problem.
March 2014 Actuaries
9
Comment
Telematics
T
elematics describes the process of long-distance transmission of computer-based information sourced from
within road vehicles. It represents a significant increase in the breadth of driving behaviour data available at the
driver level. Table 1 illustrates some of the information that can be collected using Telematics.
Table 1: Examples of information gathered through Telematics
Measurement
Description
Mileage (by road type)
Total distance driven, distinguishing highway driving from suburban driving and
urban versus country.
Number of trips
Number of trips driven, indication of commercial use.
Night mileage
Distance driven during the night.
Speeding event
Number of times vehicle exceeds speed limit by various thresholds.
Hard acceleration or braking
events
The number of times acceleration or deceleration exceeds various thresholds.
Relative speed
Speed relative to other drivers.
A number of Telematics devices are available with varying degrees of sophistication. Mobile phone apps are convenient
and are low cost, yet questions remain over the quality of data gathered. High-end on-board diagnostic (OBD) devices,
on the other hand, are able to capture a wide range of quality information. For instance, some OBD devices include
GPS, gyroscope and accelerometer measurements and may even include open/close status of doors. Many other
devices sit between these extremes, trading off data quality for cost savings to various degrees.
From an insurance perspective, the benefits derived from Telematics are well known; anti-theft and fraud
preventative measures reduce claim costs and more accurate pricing reduces underwriting risk. Insurer experience
from the U.S. and Europe have demonstrated each of these benefits to various degrees and concerns around privacy
and data ownership have been identified and dealt with in these locations. In 2013, two Australian insurers (AI
Insurance and QBE) launched Telematics based insurance products in Australia and a number of other Australian
insurers have carried out or are considering feasibility studies.
This article provides an overview of some of the non-insurance impacts of Telematics.
10
Actuaries March 2014
Kaise Stephan
kstephan@deloitte.com.au
Rick Shaw
rickshaw@deloitte.com.au
Industries impacted by Telematics
Telematics has wide-ranging applications for numerous industries, some of which are listed
below in Table 2.
Table 2: Industries affected by Telematics
GICS sector1
Potential Applications
Information Technology
Application Software: Gamification, such as Nike’s Fuel
Band peer comparison web portal.
Metals and Mining
Steel: maintenance management, lease negotiations of
iron ore dump trucks and excavators.
Utilities
Multi-Utilities: compliance audits of transmission and
distribution asset inspections.
Telecommunication Services
Integrated Telecommunication Services: providing
mobile network coverage to carry communications.
Consumer Discretionary
Education Services: extending driver training into postlicencing and post-infringement.
Media Broadcasting: increased accuracy of weather
forecasts by piggy backing weather stations to
Telematics devices.
Automobile Manufacturers: feedback on new vehicle
performance, location based advertising.
Consumer Electronics: provide Telematics devices.
Consumer Services: legal services around tort advice.
Industrials
Transportation: simplification of log booking for
trucking.
Infrastructure: identification of black spots, live traffic
management.
Financials
Insurance: underwriting, pricing and claims
management.
Healthcare
Healthcare Services: Ambulance fleet management.
Government
Tax office: Fringe benefit tax reporting.
Telematics has wideranging applications for
numerous industries.
Two Australian insurers
launched Telematics
based insurance
products in Australia
and a number of other
insurers have carried
out or are considering
feasibility studies.
Traffic enforcement and Judiciary: speeding evidence.
In Australia, Komatsu and Caterpillar now install Telematics devices in most of their newer
vehicles. The installations serve two purposes.
Firstly, Telematics enables monitoring of leased vehicles to safeguard assets and manage
maintenance costs. For example, Caterpillar has in place a process for notifying fleet
managers if a driver is in breach of lease conditions.
Secondly, Telematics web portals can be on-sold to fleet managers. Fleet managers
purchase Telematics web portal licences to assist in optimising fleet productivity, vehicle
utilisation and fuel efficiency amongst other things.
Leasor installed Telematics applications are expanding into registered light vehicle
(car) fleets.
Societal Impacts
Telematics has the potential to reduce accident frequency and vehicle-based injuries. Our
presentation2 at the recent Injury Schemes Seminar discusses some of the Telematics
pathways to saving lives and reducing injuries:
March 2014 Actuaries
11
Comment continued
Figure 1: Telematic pathways to saving lives and
reducing injuries
Safe Speeds
Policy Cancellation
Exposure Management
Behavioural Feedback
Identifying Black Spots
Telematics Pathway
Alignment of Interests
Injury Management
First Responders
Three of these pathways are: changing driver behaviour,
identifying black spots and first-responder capability.
Changing driver behaviour
Telematics pricing and reporting enables feedback
to drivers on their driving style, encouraging better
driver behaviour. A 2013 Swedish study has shown how
Telematics-based premium discounting changed driver
behaviour. Drivers with Telematics fitted in their car
tended to speed less than the control group, where no
Telematics units were fitted.
Figure 2: Proportion of speeding3 driver by speed limit
20
Test group
18
Control group
Proportion (%)
16
14
12
10
8
6
4
2
0
30
40
50
60
70
80
90
100
110
120
Speed limit (km/h)
The link between speeding and the road toll is well
understood, hence by reducing speeding, Telematics will
save lives.
Identifying Black Spots
A less straightforward example of a Telematics pathway
to reducing accident frequency and injuries is the
identification and remediation of black spots. Telematics
will assist in identifying and categorising black spots.
This may lead to fewer motor accidents and lower
claim frequency.
12
Actuaries March 2014
The location of accidents will be recorded by the
Telematics device, which can be matched with insurance
records. This will also provide an accurate source of data
for government departments to allocate road safety
budgets.
Telematics can also identify areas where accidents
are waiting to happen, i.e. higher risk areas. For instance,
areas where there is hard breaking or more frequent
activation of ABS/stability control systems indicating a
higher risk area.
In some cases, the remediation of a black spot may
involve reducing the speed limit. Telematics will be able
to provide evidence of whether speed limit reductions are
effective or further remediation is required.
First Responders
Once a motor accident has occurred, Telematics can
improve the triage of injured persons. Telematics will
enable insurers and First Responders (police, ambulance
and fire services) to identify when a major accident
has occurred by a vehicle’s deceleration signature.
Emergency crews will be able to get accurate coordinates
of the location of deceleration and can be automatically
dispatched to the accident site.
E-call, a non-insurance-based Telematics initiative, is
a First Responder trigger mechanism based on airbag
deployment or activation of impact sensors. E-call is
set to be implemented within the European Union by
2015. The European Commission has estimated that
under E-call, ‘emergency services’ response times will
be reduced by 50% in rural areas and 40% in urban
areas, leading to a reduction in fatalities estimated to be
between 2% and 10%, and a reduction in the severity of
injuries between 2% and 15%, depending on the country.
For less severe motor accidents, insurers will be able
to provide courtesy calls to policyholders, potentially
assisting the driver who may be distressed or in shock.
Telematics is inevitable technology. The take-up in
Australia is lagging Europe and the US. In a car-centred
culture such as Australia, the impacts are potentially
enormous, both for insurance and the wider societal
benefits. Telematics is another example of the increasing
tendency for data to be collected at the individual
level. This has both privacy and societal challenges. For
business users, there are a number of paths to adoption
of Telematics, from selection of suitable devices to
taking full advantage of the information collected and
embedding the technology and information into business
models.
GICS - Global Industry Classification Standard
http://www.actuaries.asn.au/Library/Events/ACS/2013/
StephanTelematics.pdf
3
>6km over the speed limit
1
2
Under the Spotlight
Charles Pollack
charlesp@youi.com.au
Charles Pollack
Title… Chief Actuary
Organisation… Youi Pty Ltd
Summarise yourself in one sentence…
A competitive person who is always willing
to call a spade a spade but then at the
end of the day spend quality time with
the family
My interesting/quirky hobbies...
Plane spotting and train spotting
My favourite energetic pursuit… Cycling up
a hill somewhere, followed closely by rowing
The sport I most like to watch...
Le Tour (and it coincides nicely with EOFY late
night work!)
The last book I read (and when)...
QF32 – some time in 2013
My favourite artist / album / film…
Steve Winwood
The person I’d most like to cook for…
My wife and kids
I’m most passionate about…
People taking responsibility for themselves
and their actions
What gets my goat… The handout/
entitlement mentality
I’d like to be brave enough to…
Spend a month with no means of electronic
communication
In my life I’m planning to change…
The amount of time I allocate to reading
(do more)
Not many people know this but I…
Paddle my kayak to work when my
timetable permits
Four words that sum me up…
Focused, energetic, fun, creative
What I wanted to be when I grew up…
Train driver (before high school), Pilot
(high school)
Why and how I became an actuary…
In 1989 the Pilot’s dispute put an end to
any aspirations of being a pilot that I had.
Actuary sounded interesting and tapped
into all of the things I was good at in
school. At that time a marketing pack went
around to schools and my Maths teacher
put me on to it, so off to Sydney I went
Where I studied to become an actuary
and qualifications obtained…
Macquarie Uni – B.Ec.
My work history… Sun Alliance and Royal
Insurance for a couple of years (finance
department gave me the best all-round
view of an insurance company that I
could ever hope to start with, and a great
understanding of the GI P&L), FAI for
three years including 12 months in the
marketing department, Suncorp for nearly
10 years, then Youi for the last five years
What I find most interesting about my
current role... The opportunity (and
organisational willingness) to (take the risk
to) make changes that improve things
My role’s greatest challenges…
Balancing the ‘creating’ side with the routine
‘non-negotiable’ work
Who has been the biggest influence on
my career (and why)… At work, my
manager at FAI – Ian Heppell – who
inspired me to be creative in my role
and gave me the opportunity to learn
some really cool and valuable techniques.
Overall, my wife Melissa who has
supported me for over 20 years, including
moving cities and moving to a less
secure ‘start-up’ opportunity at a time
when we were renovating our house
My proudest career achievement to date
is… GIPE – Suncorp’s ‘GI Pricing Engine’
10 years from now, I will be… Probably still
kayaking to work
Why I’m proud to be an actuary… We can
work behind the scenes to make a difference
to everyday people
When I retire, my legacy will be… GIPE
already is one ‘legacy’ (don’t mention the
word legacy and insurance systems – that is
nearly always a bad thing!). Throughout my
career hopefully I have helped others I have
worked with/managed to develop their own
skills and make their careers meaningful
The most valuable trait an actuary can
possess is… Thinking outside the square
If I were President of the Institute, one
thing I would improve is… Market ‘Actuary’
to schools more effectively
At least once in their life, every actuary
should… Take a risk
My best advice for younger actuaries…
Develop good skills working with and
analysing data – they will take you a
long way
If I could travel back in time I would…
Take a bit more time to smell the roses
If I win the lottery, I would…
Take a bit more time to smell the roses
March 2014 Actuaries
13
The Actuarial Pulse
Goals and Resolutions
Report generated on 7 February 2014, 260 responses
Q3: Do you believe that setting goals/making
resolutions is useful?
Response
I
t’s said that most New Year’s resolutions are broken within the
first two weeks of the year, but is this true for actuaries? Do
actuaries even believe in making resolutions in the first place? In
this month’s Pulse survey, we explore goals and resolutions in an
attempt to find out what does and doesn’t work when it comes to
making changes in your life.
Q1: What is your age?
Response
%
Count
Under 25
7%
19
25 - 34
30%
78
35 - 44
22%
57
45 - 54
26%
66
55 - 64
12%
30
65+
3%
9
%
Count
Female
31%
80
Male
69%
177
Q2: What is your gender?
Response
14
The purpose of the first two questions is to determine the
demographic profile of the survey respondents. These results are
typical of other Pulse surveys and will be used to assist in analysing
the results of the other survey questions.
Actuaries March 2014
%
Count
Yes
85%
215
No
15%
38
Much has been written on the importance of goal setting. Studies have
been conducted that demonstrate that people who write down their
goals accomplish significantly more than those who don’t and there
are dozens of websites, such as http://www.43things.com and http://
dayzeroproject.com, that exist specifically so that people can share their
goals with others throughout the world.
At the same time, goal setting is clearly not for everyone.
According to Dilbert creator Scott Adams in his book How to Fail at
Almost Everything and Still Win Big, “goals are for losers”. If you set
yourself a goal, “you will spend every moment until you reach the
goal… feeling as if you were short of your goal” and if you do achieve
the goal, you will have lost the thing that gave you purpose and
direction.
Adams argues that, instead of goals, people should develop
continuous lifestyle ‘systems’ or habits for themselves that maximise
their chances of success in the long term (for example, continuously
upgrading your skills).
Among the respondents to this survey, 85% believe that setting
goals or making resolutions is useful, with belief in goal setting being
slightly higher among females (90%) than males (83%), and slightly
higher among those under 55 (86%) than those aged 55 and over
(79%). As most of the actuaries I have met are very intelligent and
successful people (i.e. ‘winners’), these high percentages appear to
run counter to Adams’ hypothesis of goals being for ‘losers’, but we
will explore this in further detail later in this report.
© Olivier Le Moal–Shutterstock.com
What would you like to know? If you have a questioN
you would like to put to the membership, email it to
editor@actuaries.asn.au
The Actuarial Pulse is an anonymous, web-based survey of Institute members, run on a monthly basis,
giving members an opportunity to express their opinions on a mixture of serious and not-so-serious issues.
Genevieve Hayes
inthemargin@actuaries.asn.au
Year’s, but sometimes a New Year’s resolution has more significance.”
58% of respondents have made New Year’s Resolutions at least once
or twice in their lives, which is broadly consistent with University of
Sydney research which found that 50% of Australians make such
resolutions each year. Similar to what was found in the previous
question’s analysis, New Year’s Resolution making is more common
among females (70%) than males (53%), and is most common
among respondents in the 35 – 44 year age band (68%).
Q5: How long do you typically keep a
resolution/goal after making it?
© jongjet303–Shutterstock.com
Q4: Have you ever made a New Year’s
Resolution?
Response
%
Count
Yes – often
23%
58
Yes – once or twice
35%
89
No – but I’ve made resolutions/set goals at
other times
30%
77
No – never
12%
Response
%
Count
Less than 1 week
5%
13
1 – 2 weeks
8%
19
2 weeks – 1 month
7%
17
1 – 3 months
19%
45
3 – 6 months
8%
19
More than 6 months
9%
21
As long as it takes to achieve the intended
result
44%
105
According to an article published in The Sydney Morning Herald in
late 2012, there is a failure rate of around 88% when it comes to
achieving resolutions, but it appears that actuaries are better at
sticking with goals than the average Australian. 44% of respondents
claim to stick with a goal for as long as it takes to achieve.
Although, in previous questions, we have found that younger
respondents are more likely to find goals and resolutions useful, it is,
surprisingly, the older respondents who are more likely to see their
goals through to the end. 49% of respondents aged 45 and over stay
with their goals for as long as it takes, compared to only 40% of the
under 45s.
Q6: How many resolutions/goals have you set
yourself so far in 2014?
Response
30
New Year’s Resolutions are a special subset of goals. Although New
Year’s Day is really just another day in the calendar, to many, a new
year is a new beginning and a chance to start afresh, doing things
differently from how they were previously done. As one respondent
pointed out, “I make plans at various times (of the year), not just New
%
Count
0
34%
83
1
27%
67
2
21%
52
3– 4
14%
36
5+
4%
10
March 2014 Actuaries
15
The Actuarial Pulse continued
Q7: Approximately what proportion
of your 2014 resolutions have you
kept to date?
Response
50%
Females
Males
45%
40%
%
Count
0%
18%
29
25%
9%
14
25%
50%
15%
25
20%
75%
10%
17
15%
100%
48%
79
10%
35%
30%
5%
0%
During 2007, British psychologist Richard Wiseman
Improve
Improve
Get a new
Spend more
Travel more
Change
Other
tracked over 3,000 people attempting to achieve a
health/fitness
financial
job/promotion
time with
attitude
family
situation
range of New Year’s Resolutions. Among the many
things he concluded from his research was that the
chances of succeeding in achieving resolutions or goals
other hand, are more interested in spending more time with
is far greater if you focus on achieving one goal rather than many.
family, with 13% listing this as their top priority compared to only
Based on this observation, it would be expected that those
1% of females.
respondents to this Pulse survey with a greater number of
Under 45s, who, in many cases, will be trying to save for a
resolutions in 2014 would have kept a smaller proportion of these
house, pay off a mortgage or put their kids through school, are
resolutions than those with a smaller number.
more interested in improving their financial situation than over
Yet, to date, 58% of respondents with three or more resolutions
45s, with 14% of under 45s listing this as their number one goal
have kept 75% or more of those resolutions, which is on par with
compared to 5% of over 45s; while over 45s, whose kids may
the 59% of respondents with one or two resolutions who have kept
have grown up and left home, giving them new-found freedom,
75% or more of those resolutions. Nevertheless, this survey was
are interested in travelling. 9% of over 45s want to travel more,
conducted in early February, just one month into the New Year. It’s
compared to 4% of under 45s. Some of the other goals listed by
easy enough to keep a resolution for 31 days, but can you keep it for
respondents to this question include:
the next 11 months? I suspect these results would differ greatly if
• buy a house;
this survey was repeated later in the year.
• find a girlfriend;
• pass Part III exams;
Q8: What is currently your number one goal in
• religious (e.g. discover the meaning of life or get to know God
life?
better);
• spend less time using my iPhone;
Response
%
Count
• finish writing my book; and
• give to the profession… by answering more Pulse surveys!
Improve health/fitness
40%
93
Improve financial situation
10%
24
Get a new job/promotion
9%
21
Spend more time with family
10%
22
Travel more
6%
13
Response
%
Count
Change attitude e.g. be more positive
6%
15
Lack of planning
4%
9
Other
19%
43
Too busy with other things
24%
57
Lack of motivation
22%
51
Uncertain of what to do
5%
11
Too much effort required
8%
19
Changing priorities
25%
59
Other
12%
27
By far, improving your health or fitness was the most popular life
goal among respondents, with improving your financial situation
coming in third after ‘Other’. Yet, the popularity of certain goals varies
by age and gender.
Females respondents are more interested in improving their health
than their male counterparts, with 48% of females selecting this as
their number one goal compared with 37% of males. Males, on the
16
Actuaries March 2014
Q9: Where you have failed to achieve goals/
resolutions you have set yourself, what is the
main reason for your failure?
The three main obstacles to success, according to respondents, are:
changing priorities, being too busy and lack of motivation, with each
receiving a similarly high number of votes.
Lack of motivation is more of an obstacle to success for females
than males, with 32% of females listing this response compared to
17% of males, while changing priorities is a bigger stumbling block
for males, with 27% of males selecting this option, compared to 21%
of females.
It is the younger respondents, however, who have the hardest
time finding enough time to achieve their goals. 27% of under 45s
consider being too busy their biggest obstacle to success, compared
to 20% of the over 45s.
Other reasons why respondents have found it difficult to achieve
their goals in the past include:
•kids;
• I forgot I made them. This survey reminded me of them; and
• If I knew, I would have succeeded.
Q10: Where you have achieved goals/
resolutions you have set yourself, what was
the main contributing factor to this success?
© parkisland–Shutterstock.com
Response
%
Count
Making a detailed plan
10%
23
Support from others
6%
14
Rewarding myself for making progress
2%
5
Failure not an option
16%
37
Establishing a regular routine
54%
123
Other
12%
27
On the flip side of the success coin, when respondents have
succeeded, the majority of respondents agree that it was due to
establishing a regular routine.
Developing a routine is one of the main actions psychologists
and life coaches recommend when it comes to achieving goals and
is broadly consistent with Scott Adams’ hypothesis (discussed in
Question 3) that habits or systems are more important than goals in
achieving success.
In fact, even though Adams claims that “goals are for losers”, at
the end of his book he softens this by rephrasing his sentiments as:
“Humans will always think in terms of goals. Our brains are wired
that way. But goals make sense only if you also have a system that
moves you in the right direction.” Based on this it appears that
even Adams believes that a combination of both goals and systems
is the secret to success. Other factors that helped respondents
achieve success include:
• regularly reminding myself of the goal;
• only establishing goals I’m really interested in;
• seeing a deadline loom;
• team members relying on my achieving the goal;
• tracking progress and referring to that data regularly; and
• making my goal known to friends and challenging them to
achieve the goal, too.
Conclusion
Actor Bruce Lee once said “A goal is not always meant to be reached,
it often serves simply as something to aim at.” Yet, based on the
responses to this survey, actuaries don’t just set goals as aspirational
targets, they follow them through for as long as it takes to achieve
them, and I’m not in the least bit surprised.
It is extremely difficult to qualify as an actuary and only the most
determined individuals are likely to be prepared to put in the time
and effort needed to gain this qualification. With this in mind, the
next time you have a goal you wish to achieve, you should think
back to everything you went through in order to join the actuarial
profession in the first place.
Actuarial training doesn’t just prepare you for one of the most
desirable jobs in the world, it also teaches you how to succeed in life.
If you can qualify as an actuary, there is nothing out there you can’t
achieve if you put your mind to it.
March 2014 Actuaries
17
Report
2013 J.P. Morgan Taylor Fry
General Insurance
Barometer
A
Macroeconomic background
The outlook for the Australian economy
in 2014 appears reasonable, but is less
favourable than recent years when
compared against international markets.
For Australian insurers this means weaker
growth prospects than previously. Low
investment yields used to support claims
also continue to be a concern and a risk to
returns particularly for long tail products.
18
Actuaries March 2014
Combined ratio trends
The 2013 financial year showed an overall
improvement in combined ratios for the
industry as a whole and particularly in
commercial insurance lines.
For personal insurance, the combined
ratio in 2013 remained stable at 89%. In
commercial insurance the combined ratio
improved to 90% in 2013, from 98% in 2012.
Both personal and commercial insurance were
supported by improved loss ratios and more
favourable bond yields in 2013 compared to
2012. Commercial insurance combined ratios
were significantly better in 2013, primarily due
to the impact of previous rate increases, no
adverse hits from interest rate movements
and greater reserve releases than in 2012. This
was offset partially by an increase in natural
peril activity to trend levels.
The current shift to more neutral near
term weather conditions forecast by the
Bureau of Meteorology would normally
benefit insurers’ catastrophe cost trends.
Nevertheless, overall industry profitability
is expected to deteriorate slightly in the
coming years in part driven by the expected
slowing down of premium rate increases.
Looking forward, the industry is
forecasting a slight deterioration to
combined ratio trends overall for the
next couple of years, though they are still
expected to be reasonably profitable.
© D.R.3D–Shutterstock.com
The outlook for the
Australian economy in
2014 appears reasonable,
but is less favourable
than recent years when
compared against
international markets.
ustralian insurers are facing growth
constraints driven by increasing
competition, claims pressures, an
expected slowdown in premium
rates and macroeconomic factors despite
reporting improved profitability in 2013,
according to the 2013 J.P. Morgan and Taylor
Fry General Insurance Barometer.
The Barometer is a collaboration
between J.P. Morgan and Taylor Fry, and is
based on a detailed survey of the majority
of the underwriters, reinsurers and brokers
active in the Australian general insurance
industry. The survey has been running for
21 years, and includes both actual historical
results and forecasts for the future. It also
includes a survey of the key issues affecting
the market.
Whilst the full report is only available
to the survey participants, we have
summarised the key issues and trends here.
Sharanjit Paddam
Kevin Gomes
Josh Jaroudy
sharanjit.paddam@taylorfry.com.au kevin.gomes@taylorfry.com.au joshua.jaroudy@taylorfry.com.au
Industry actual combined ratios
Financial Year
Premium rate trends
2011
2012
2013
Motor
93
95
91
Home
107
83
89
CTP (NSW)
106
92
91
CTP (QLD)
70
87
74
Total Personal
98
89
89
Fire & ISR
134
90
95
Motor
91
99
90
Public & Product Liability
86
110
88
Workers Compensation (WA)
94
92
78
Workers Compensation (TAS, NT & ACT)
104
103
104
Professional Indemnity
98
92
85
Directors & Officers
85
102
80
Total Commercial
106
98
90
Total
98
98
87
2011
2012
2013
Motor
2
3
4
Home
10
15
12
CTP (NSW)
8
4
8
CTP (QLD)
-6
2
4
Total Personal
5
9
8
Fire & ISR
7
9
-2
Motor
4
6
4
Public & Product Liability
-1
1
-2
Workers Compensation (WA)
-4
4
3
Workers Compensation (TAS, NT & ACT)
2
8
1
Professional indemnity
1
1
-2
Directors & Officers
0
2
-1
Total Commercial
3
5
-1
Personal Insurance
Commercial Insurance
Industry actual premium rate movements
Financial Year
Personal Insurance
Commercial Insurance
The Barometer revealed mixed premium
rates in 2013, with rates expected to come
under more pressure in 2014. The industry
showed strong rate increases in personal
insurance of 8%, driven predominantly
by householders, while for commercial
insurance rates in 2013 were significantly
worse than the 5% forecast in 2012
(-1% in aggregate).
The outlook for premium rates is
much weaker for 2014. The industry is
forecasting a slowing in rate increases
in domestic lines and flat rates for
commercial lines.
Issues confronting the
industry
The Barometer found 69% of
underwriters in the survey identified the
increasing regulatory burden as a key
concern. This was followed by concerns
over the competitive environment (38%
of respondents) and staff engagement
and retention (33% of respondents).
This last factor may be driven by the
increasing impact of outsourcing on
the market.
For insurance brokers, participants
indicated retaining staff as a key issue
(57% of respondents), followed by the
issue of an excessively competitive rates
environment and natural perils activity
impacting on capacity in the market
(43% of respondents).
Reinsurers
Reinsurance participants experienced an
unexpected drop in premium rates during
2013, with the exception of the Property
Proportional category, driven by new
capacity entering the market, as well as
benign catastrophe claims experience
during the year.
There appears to be significant
pressure in this segment. The abundance
of capacity and competition were
identified by reinsurers as the greatest
issues confronting the industry, in
addition to regulatory concerns, with
APRA’s increased focus on board review
of catastrophe modelling, as well as the
capacity of insurers to meet multiple
catastrophe losses leading to increased
demand for reinsurance protection.
March 2014 Actuaries
19
Report
J
ennifer Lang is Chief Actuary at NAB
Wealth. The views expressed in this
article are her own personal views,
and do not necessarily reflect the views
of her employer. This article was originally
published in her blog, actuarial eye;
www.actuarialeye.com.
20 Actuaries March 2014
© VERSUSstudio–Shutterstock.com
T
Falling
Profits for
Australian
Life Insurers
he life insurance industry has had a particularly poor few
years, particularly in the disability classes of business.
Recent reports from Swiss Re and Munich Re – two of
Australia’s major life reinsurers – have continued the bad
news. More recently, APRA released their quarterly statistics for
the quarter ending September 2013, and commented on them in
their quarterly update. Overall, the life insurance risk part of the life
insurance industry has made 4% profit after tax, as a percentage
of revenue, in the 12 months to September 2013. Group Insurance,
which generally insures corporate and industry superannuation
funds, made a 6% loss after tax, over the same 12 months, as a
percentage of revenue.
The life insurance industry is not making sustainable profits,
and the news seems to be getting worse not better, as insurer after
insurer strengthens their reserves.
This hasn’t gone unnoticed in the actuarial profession, with much
of the life insurance part of the recent risk and regulation seminar
discussing the sustainability of the industry, and a whole Insights
session recently devoted to Group Insurance. The slides are worth
reading in their entirety. The Insights session pointed out that there
are a number of different issues affecting the group market at the
same time.
The average insurance product within the group market as a
whole has gradually made the definitions of disability less stringent
at the same time as making it easier to qualify for insurance with
little or no underwriting. Members have become increasingly
aware that they have insurance, which is often driven by increased
benefits. Lawyers have become more involved, as the benefits have
become higher, and higher unemployment in some areas of the
economy makes it much harder for disabled people to return
to work.
Another speaker in the Insights session pointed to the major
reduction in capacity affecting the group market: in 2011, five to six
insurers participated in tenders; in 2013, for medium or large plans,
two to three insurers were often participating.
Anyone who has been involved in long tail classes will recognise
Jennifer Lang
jennifer_h_lang@nab.com.au
some of the symptoms of a classic insurance
cycle. As profits increase, insurers relax
terms and conditions and reduce prices.
Then as claims start coming in, insurers
realise they have given too much away, and
tighten terms and conditions, increasing
prices and reducing capacity. In my view, one
of the major preconditions for the creation
of insurance cycles is that there needs to be
a reasonably long tail between the incidence
of the claim and the payment, so that
insurers cannot be definitive about the cost
or profitability of the insurance cover they
are selling for several years. That creates a
feedback loop that takes some time to work
its way through the system.
So what is the answer? Back in 2006,
Lloyd’s recommended seven steps for
managing insurance cycles.
1. Don’t follow the herd
Insurers need to be prepared to walk away
from markets when prices fall below a
prudent, risk-based premium.
2. Invest in the latest risk
management tools
Don’t let higher investment returns replace
disciplined underwriting as base rates creep
up on both sides of the Atlantic. Notionally,
splitting the business into insurance
and asset management operations, and
monitoring each separately, is one way to
achieve this.
3. Don’t let surplus capital
dictate your underwriting
5. Don’t rely on ‘the big one’ to
push prices upwards
An excess of capital available for
underwriting can easily push an insurer to
deploy the capital in unsustainable ways,
The spectacular insured loss should not
be used as an excuse to raise prices in
unrelated lines of business. Regulators,
rating agencies, and analysts – not to
mention insurance buyers – are increasingly
resisting such behaviour.
Source: APRA
Total Industry Revenue ($m)
3,500
25%
20%
3,000
2,500
15%
2,000
10%
1,500
1,000
5%
500
0%
Jun 2008
Sep 2008
Dec 2008
Mar 2009
Jun 2009
Sep 2009
Dec 2009
Mar 2010
Jun 2010
Sep 2010
Dec 2010
Mar 2011
Jun 2011
Sep 2011
Dec 2011
Mar 2012
Jun 2012
Sep 2012
Dec 2012
Mar 2013
Jun 2013
Sep 2013
0
Total Revenue
Profit Margin After Tax
Rolling Annual Profit Margin After Tax
Wholesale Life Insurance Profits
Source: APRA
20%
15%
1,200
10%
1,000
5%
800
0%
600
-5%
400
-10%
200
-15%
0
-20%
Jun 2008
Sep 2008
Dec 2008
Mar 2009
Jun 2009
Sep 2009
Dec 2009
Mar 2010
Jun 2010
Sep 2010
Dec 2010
Mar 2011
Jun 2011
Sep 2011
Dec 2011
Mar 2012
Jun 2012
Sep 2012
Dec 2012
Mar 2013
Jun 2013
Sep 2013
Total Industry Revenue ($m)
1,400
Total Revenue
Profit Margin After Tax
4. Don’t be dazzled by higher
investment returns
Insurers must push for continuous
improvement of these tools based on
the latest science around issues such as
climate change, and make full use of them
to communicate their pricing and coverage
decisions.
Life Insurance Industry Profits
4,000
rather than having that capital migrate
to other uses such as hedge funds and
equities, or returning it to shareholders.
Rolling Annualised Profit Margin After Tax
6. Redeploy capital from
lines where margins are
unsustainable
There is little that individual insurers can
do to alter overall supply-and-demand
conditions. But insurers can set up internal
monitoring systems to ensure that they scale
back in lines in which margins have become
unsustainable and migrate to other lines.
7. Get smarter with
underwriter and manager
incentives
Incentives for key staff should be
structured to reward efficient deployment
of capital, linking such rewards to target
shareholder returns rather than volume
growth.
In some ways, none of the
suggestions above are anything other
than recommendations for sensible
management. At their heart, these are
recommendations to analyse risk carefully,
price for it, make sure all of your internal
incentives encourage sensible behaviour,
and do as much as you can to set up a
contract that pays out in the event of
genuine loss. There isn’t a magic bullet
that will create profitability. Each lever of
profitability is important, and they all
need to be used appropriately. Sometimes
it is good to take a step back, in the midst
of continuing bad news, and look at
the fundamentals.
Source: APRA and my own analysis
March 2014 Actuaries
21
Leading Actuary Profile
An Interview with
PhillipEverett
Head of GroupCapital & Pricing Intelligence – National Australia Bank (NAB)
T
he Institute’s newly formed
Banking Practice Committee
has been established to support
actuarial development in the banking
industry at a time of heightened focus
on the Australia’s financial system.
Phillip Everett, Head of Group &
Capital Pricing Intelligence – National
Australia Bank (NAB) will lead the
group with the aim of contributing to
the strategic direction of the Institute,
actively supporting the development
of actuarial practice, and identifying
and promoting opportunities for
members working in banking.
Phillip took a break from his busy
schedule to discuss his diversified
career and the changing landscape of
actuaries in banking.
22 Actuaries March 2014
A
daptation is key
In his early school days Phillip Everett was very strong in
applying mathematics, so he seemed destined to become an
actuary from a young age.
“My father came across an actuary who was a tenant in the building
he was working in and they began discussing my skillset. Without ever
meeting me, my father’s colleague recommended the profession as a
good career for me and the seed was planted,” said Phillip.
Phillip went on to study Economics and Statistics at the University of
Adelaide and began his career as an actuarial analyst at National Mutual.
In this role Phillip began to learn the importance of having an open mind
and being adaptable, something he has carried with him throughout his
entire career.
“In my mind there is nothing more important than being able to adapt
in your career. I have constantly adapted to the environment around me,
which hasn’t always been easy but has been necessary to stay in the
game. At National Mutual in Adelaide we had a specialist consulting firm
Palmer Gould Evans that worked across a number of areas including
defined benefit super schemes, master trusts, workers compensation,
friendly societies, legal work and general insurance. We were forced
to adapt our skills to all areas; there was no room for one trick ponies.
Learning how to do this was one of the most valuable lessons in my
career,” Phillip explains.
Alice Crowley
alice@honnermedia.com.au
National Mutual sold Palmer Gould Evans to Buck
Consultants and Phillip ended up moving to Melbourne
shortly after. On qualifying, he wanted to expand his
horizons and began studying a Diploma of Financial
Planning, which led him to his next role as a product
actuary at Plum.
“Joining Plum was the best decision I ever made. I
would recommend that everyone join a similar firm at
some stage of their career. It was an end to end business
and I was exposed to every aspect of the company and
was lucky enough to work with a variety of people –
from those in the sales team to senior management,
relationship managers and other product managers.
Having visibility of the entire company showed me how
all the different business units work together,” he said.
“I also received some of the best career advice from
the sales team at Plum. As an actuary we can find it
overwhelming presenting and connecting to senior
executives. The sales team taught me people are just
people no matter what their position is,” he said.
Since then, Phillip’s career has flourished within the
Australian banking industry at NAB. Over his time at NAB
he has held a number of roles including Head of Portfolio
Strategy and Pricing, Head of Portfolio Pricing and Capital
Management in Business Banking, Senior Adviser in
Capital Insights and his latest role as head of Group
Capital & Pricing Intelligence.
“Working for a bank opened more doors for me than
I could have ever imagined. By branching out of some of
the traditional actuarial areas I could embrace far more
varied professional opportunities. My career took off after
joining the bank.
“I only have one career regret, which is spending too
much time in a role simply because it was comfortable
and safe. When I really thought about it I wasn’t that
happy with the scenario and the work wasn’t satisfying.
I wish that I had branched out sooner because once I did
I never looked back,” he said.
Opportunities across banking
During the past eight years in banking, Phillip realised
that bringing together information from a number of
different areas of the bank was the most enjoyable part
of his job.
“The large banks are massive institutions with pockets
of highly intelligent and skilled people such as people
who build risk models, treasury specialists and corporate
finance specialists. I get satisfaction from bringing these
all together and solving things in a pragmatic way,” he
explained.
“In this industry people still have a narrow view of the
ability of actuaries and still do not fully understand what
we do. It is important we brand ourselves as financial
services professionals with a highly useful actuarial
skillset.
He said individuals need to demonstrate what they are
capable of and not expect there to be a career path solely
based on their actuarial qualifications.
Don’t bank on one skillset: be
prepared to change your spots.
“Bankers are very straight forward people and you
need to be able to demonstrate how you can add value.
Interestingly, a lot is based on other skills which are
usually developed throughout a career and one of the
most powerful tools we have as actuaries is translating
those skills across industries. There are lots of talented
actuaries who have done this successfully,” he said.
In June 2013 Phillip and a number of actuarial
colleagues working in the banking industry established
the Banking Practice Committee to help link more
actuaries in the industry.
“The power of the Banking Practice Committee is our
ability to give Institute members better visibility across
the areas of banking that actuaries are working in, with
the view to promoting the actuary brand within banking
and helping actuaries understand the opportunities
available to them.”
A changing landscape
Phillip believes it is highly important to act as a mentor
for the younger generation of actuaries and he aims to
encourage and develop people to help them take career
risks, especially as the landscape of the profession
changes.
“We need to mentor the younger generation and
support them as they develop their careers. It’s so
important to encourage as many actuaries as possible to
branch out of traditional roles and to be more flexible in
the type of roles they consider working in.
“The actuarial landscape is changing. With a number
of data based roles being taken overseas or replaced
by technology, actuaries need to work on providing
on-the-ground advice and explaining what is behind
the numbers.
“This is where the opportunity lies for actuaries. We
need to work on diversifying our skillset and embrace
the changing landscape of the actuarial profession,” he
concluded.
March 2014 Actuaries 23
Actuaries Taking the Lead
Bringing Soul into the Workplace
“The search for meaning
is changing expectations
in the marketplace and
in the workplace, and
therefore is changing the
very soul of capitalism.”
– Raj Sisodia,
Firms of Endearment
Economic environment –
almost all the learning and development
specialists I know or collaborate with share
one fundamental experience of the recent
24 Actuaries March 2014
years – few organisations are seeking
aspirational leadership development or
strategic development. The emphasis is
on cost reduction, embedding competency
models for expected ways of behaving
and on basic management capability.
While these are all important, they focus
on stability and homogeneity without
addressing the needs of growth, diversity
and adapting to change.
Lack of care – in many
organisations, there is commonly a
sense of prevailing sadness, fatigue and
cynicism. A sense that the organisation
doesn’t care for or value the individual’s
contribution and that most senior people
are out of touch with what it is like to
work at the coal face. In some instances,
the senior management rhetoric espouses
the need for cost cutting, reducing
bonuses and downsizing, while the most
senior people maintain excessive bonuses
or are rewarded even further through
these programs.
The consequence of the ‘more with
less’ philosophy in the more technical and
process oriented areas is significantly
increased volumes of work that creates
such an emphasis on output that
development, feedback and connection to
meaning are buried beneath the frenzy.
Paradigm blindness – many
organisations espouse the need for
stability regardless of how affected
the organisation or team is by external
forces. The more the organisation
craves certainty to placate market
participants and to demonstrate its
capacity to achieve, the greater will be
its denial of the need for change. For
example, as practising actuaries, there
may be pressure brought to bear to set
assumptions at a level that allows for
a steady profit release or incremental
increase in value. Over time, artificial
stability reduces organisational resilience
and increases the likelihood of systemic
failure.
© ollyy–shutterstock.com
H
ave you ever worked in a job, a
team or an organisation which
left you feeling as if you are a cog
in a large machine, a resource to
be used up and spat out when there is no
more foreseeable value? Have you ever felt
a deep sense of disconnection between
what you sense you are on this planet to
do, and what your daily job is asking you to
do? Have you ever come back from leave
and noticed what seems like numbness,
anxiety or even insanity in the people
surrounding you?
If so, you are not alone. Many people
spend large portions of their working lives
feeling this way, yet with seemingly little
way out with mortgages, school fees and
other commitments. While the risks of
pursuing your own path are significant, the
costs of not following your passion can be
a living death – a sense of emptiness and
loneliness which gradually builds and can
manifest in a variety of unhealthy ways.
Physical illness, addictions such as alcohol,
smoking or caffeine, or erratic behaviour
and debilitating moods are some
examples. Looking at this list, I just realised
that at a low point in my career I got a tick
in each box – not sure it’s something to be
proud of.
Yet there are also organisations
that are truly joyful places to work that
create great value. Raj Sisodia, one of
the founders of the Conscious Capitalism
movement, identified in his book, Firms
of Endearment, many organisations that
are creating working environments with
soul. At the heart of these organisations
is the honouring of all stakeholders
– shareholders, customers, staff and
communities.
To explore what can be done to develop
more soulful places to work it is useful to
look at some of the causes of workplace
malaise.
Andrew Brown
andrew@leadfirst.com.au
Incapacity to allow individuals to bring
their whole selves to work – the paradigm
of ‘you’re only as good as your last project’
builds short-term focus on excellence… and
longer term fatigue. The sense of always
being on probation ultimately weighs down
the human spirit. People often desire to
be seen as perfect to protect their hard
fought reputation, which means hiding the
imperfections and denying the need for
development. As Leonard Cohen suggests,
no light can get in if you forever cover over
the cracks.
Disconnection from personal
meaning and purpose – the
intent of organisational mission and vision
statements is to provide clarity of direction
and engage people in the purpose of the
organisation. Yet if this mission or vision is
incongruent with the individual’s values or
provides no space for their own expression
of what is important to them, people will feel
alienated and disconnected.
© Leszek Glasner / Syda Productions–shutterstock.com
Asymmetry of the contract
between the individual and
organisation – recently a colleague
shared with me a conflict they faced. In
their organisation, managers were asked
to commit heart and soul to the vision and
strategy without any certainty as to whether
they and / or their teams would be part of
the organisation going forward.
There are moments in my career where
I dreaded going back to work the next day,
to deliver unrealistic deadlines and produce
meaningless reports which few people ever
read and which barely cast a breath in the
organisational hurricane. For me personally,
this sensitised me to what it is like to feel
powerless and worthless and it led me
towards my current work, in supporting
organisations to build structures, processes
and mindsets that allow individuals to bring
their innate wisdom and compassion into
their day-to-day roles.
Call me an idealist, but I truly believe
that the level of pain being experienced
in organisations will lead to a significant
shift in cultures towards a more humanistic
approach. The following are some ways of
creating more soulful workplaces.
Dan Pink1 has completed extensive
research on what motivates people in the
workforce. And it’s not money. His findings
are that while bonuses are effective
mechanisms for rudimentary tasks and roles,
there is a huge body of evidence that larger
bonuses actually lead to a REDUCTION in
effectiveness for more complex tasks. His
research suggests that excessive emphasis
on bonuses introduces a level of anxiety
around performance that inhibits creativity,
focuses on the short term and is more likely
to lead to unethical or highly risky behaviour.
Pink found that the major things that
motivate people in the workforce, once they
have sufficient salaries to allow security, are
Purpose, Mastery and Autonomy. Working on
something they truly believe in, having the
opportunity every week to do something they
are good at or can improve at, and a healthy
balance between having some personal
freedom and personal accountability.
• Create some distance from an unpleasant
event before taking action, i.e. taking a
broader perspective, a third or fourth
person perspective. Seek the positive
intent of other parties to this event.
• Design organisational structures and
processes that mimic robust ecosystems.
These include encouraging diversity
of ideas and styles, and honouring
individuals by providing them with
opportunities to work on what they
are most passionate about.
The best test of the ideas in this article is
your own personal experiences of work and
how strongly or otherwise they resonate
with the themes outlined here. As managers,
as actuarial specialists, as people engaged in
creating our own livelihoods, how important
is bringing soul into the workplace for you?
1
A video outlining Dan Pink’s research on motivation
can be found at http://www.youtube.com/
watch?v=u6XAPnuFjJc
David Whyte, best-selling author of
The heart aroused – preserving the soul in
corporate America is a poet who has been
exploring themes of soul in the workplace
for over two decades. He believes there are
several ways to enable the preservation or
thriving of soul in the workplace.
• Set boundaries on behaviours rather
than deep prescriptive expectations.
This allows individual freedom within
these boundaries yet helps to shape
expectations and sets clarity on what is
not acceptable.
March 2014 Actuaries 25
Event Notice
Financial
Services
Forum
Scoring Goals
in a Changing World
5-6 May 2014 • Hilton Sydney
REGISTRATION NOW OPEN
Register by Friday 11 April 2013 to take
advantage of the Early Bird discount –
www.actuaries.asn.au/FSF2014
Silver Sponsors
The Financial Services Forum – another great conference with a
consistently high standard of content.
Register Online – www.actuaries.asn.au/FSF2014
Scoring goals in a changing world is the theme of the 2014
Financial Services Forum. Scoring goals is key if the financial
services industry is to continue to flourish.
Delegates can expect:
High-profile speakers
Bronze Sponsor
Diverse program featuring five plenary sessions and 48
concurrent sessions
Gain in-depth insights and analysis
Build relationships with leaders and professionals in the industry
Supporting Partners
CFA Societies
Australia
26 Actuaries March 2014
Glenn McGrath
Naomi Edwards
Carol Austin
John Brogden
Jacqui Colwell
Chris Cuffe
Plenary Speakers
Don’t miss out on seeing the Financial Services Forum’s impressive line up
of plenary speakers...
Ramneek Gupta
Ian Harper
Keynote Address
Glenn McGrath AM*, Former Australian cricket player, Co-Founder and President of the
McGrath Foundation Board
Steven Münchenberg
Facilitator
Naomi Edwards, Actuary, MC
Carol Austin, Investment Services Director, Contango Asset Management
John Brogden, CEO, Financial Services Council
Jacqui Colwell, Chief Risk Officer, Personal Banking, National Australia Bank
Chris Cuffe, Chairman, Australian Philanthropic Services
Ramneek Gupta, Managing Director and Head of Venture Investing, Citi Ventures
Ian Harper, Partner, Deloitte Access Economics
Steven Münchenberg, CEO, Australian Bankers’ Association
David Parsons, Emergency Management Adviser, Sydney Water
Deborah Ralston, Executive Director, Australian Centre for Financial Studies and Professor
of Finance, Monash University
Dr Norman Swan, Host, The Health Report, ABC Radio National and Tonic on ABC News24
Susan Thorp, Professor of Finance and Superannuation, University of Technology Sydney
Mark Thorpe, Director, QANTAS Superannuation Board, Pilot and Actuary
Tim Trumper, Director, Quantium
Rob Whelan, CEO and Director, Insurance Council Australia
Duncan West, Director, Avant Insurance and Lawcover Insurance
David Parsons
Deborah Ralston
Dr Norman Swan
Susan Thorp
Mark Thorpe
Tim Trumper
* Glenn McGrath appears by arrangement with Saxton Speakers Bureau.
Rob Whelan
Duncan West
March 2014 Actuaries 27
President’s Column
A Significant Year Ahead...
W
elcome to 2014, although by the time you
will be reading this we will be well and truly
into the New Year!
As is the modern way, I have prepared
a video outlining my thoughts for 2014 and it can be
viewed on the Institute’s website. For those of you more
inclined to read than watch, I have outlined some of the
key components in this article.
those meetings for members to discuss the issues I’ll
raise later, as well as to discuss any other issues that
members are interested in. Thus, the lack of a formal
written document does not prevent members from
discussing and debating issues facing the Institute.
If you feel strongly about the Presidential Address issue
then let me know. If there is sufficient member demand
then future Presidents will feel more inclined to prepare
a formal paper.
What’s on Council’s action list?
We have achieved quite a lot in recent years maintaining
the high regard with which the actuarial profession is
held and continually ranking highly as one of the best
careers in the world.
Nevertheless, a number of people have highlighted
issues facing the profession such as pressure on the
number of roles in traditional areas, competition from
other professions and the need for globally accepted
skills.
Council’s current strategic intent was set with these
issues in mind and it contains three elements:
to enhance the brand of actuary and the reputation of
the Institute;
to sustain and develop the actuarial profession; and
to sustain and develop the Institute’s business.
Where has the Presidential Address
gone?
Toward the end of last year I had a few people ask me to
consider reverting to the previous method of preparing
a Presidential Address via a formal paper which would
then be presented and discussed at meetings in at least
Sydney and Melbourne. I decided against doing so for a
handful of reasons:
I was never a great reader of the Presidential
Addresses and my understanding has been that a
large number of members do not read the address.
Preparing a lengthy document takes considerable
time, which is hard to justify spending if it is not going
to be widely read.
With an annual rotation of President it is important for
each President to support and enhance the long-term
strategy set by Council. It is my view that an annual
change in direction to accommodate the interests of
the current President is far from useful.
A transcript of this video is available and this can
act as a quasi-Presidential Address but will be more
useful when combined with the Institute’s strategic
intent.
Meetings with the President are held in most capital
cities and in some centres in Asia. There is time at
28 Actuaries March 2014
Council is currently reviewing the Institute’s mission
statement and, upon completion, will revisit the strategic
intent to ensure it aligns with the mission (to the extent
that they change from our current statement).
At the same time, a taskforce will review the
governance processes of the Institute, which will include
consideration of the manner in which members are
elected to Council as well as the term and election of
Presidents.
These reviews need member input and will involve
extensive communication with members.
There are also a range of initiatives underway to fulfil
our current strategic intent and it is these that our new
CEO, David Bell, will be focused on.
These include the ‘See What We See’ marketing
campaign, continuing development in our education
and CPD program and exploring ways to provide better
services to non-Sydney members. David will, of course,
need to manage these along with the day-to-day running
of HQ and support of Council.
Further, there are a range of key areas that we need to
address in 2014:
Education – A fundamental review of the education
requirements of an actuary has commenced, led by
our Senior Vice-President, Estelle Pearson.
Daniel Smith
president@actuaries.asn.au
Overseas members – To date we have not defined
our strategy well in relation to members outside of
Australia and with about 25% of our members now in
that category it is important that we do.
Big data and data analytics – Actuaries have the core
skills needed to extract usable information from the
masses of data that are now available to pretty much
any organisation. We need to be able to position the
brand of actuary such that purchasers of data analytics
solutions see actuaries as the logical choice.
Banking – We now have a number of actuaries working
in traditional banking roles and we are working with
the South African Society on developing a Part III
banking subject.
Risk management – Whilst we have made some
progress in this area we still have work to do to
establish ourselves as recognised risk managers across
a broad range of areas.
Longevity – Much has been said about the longevity
issue but not a lot has been done. There is a lot more
that actuaries can contribute and we should continue
to drive the debate.
What am I going to do as President?
As President I see my role as one of chairing the Council
and ensuring, as far as possible, that Council is able to set,
guide and monitor the strategy for the successful future
of the profession. I do not have a particular agenda and
will see success as being a year in which Council works
as a team to enhance the status of the profession and to
ensure that the interests and needs of the broad range of
members are served.
It is important to ensure that we are part of the global
profession and we will be continuing to consider how
we most effectively take part in the various international
forums, particularly given the financial cost involved in us
attending overseas conferences and meetings.
I am expecting a very busy year representing the
Institute and I look forward to meeting many members
who I have not had the opportunity to meet before. In
addition, I look forward to your feedback throughout the
year as we continue to strive to improve the services to
members and the standing of the profession.
Finally, a big thank you!
I would like to finish by thanking two people who will
be stepping back from Institute work somewhat in 2014
– John Newman and Melinda Howes. I spent five years
on Council with John, he has always acted in the best
interests of the profession and as President he initiated
the campaign to promote the profession externally. As
CEO of the Institute Melinda exhibited great passion and
enthusiasm and has left the Institute and HQ in a better
position than when she started.
I hope you all have a fulfilling and prosperous 2014.
President Daniel Smith addressing the Sydney Fellowship and Graduation Dinner attendees in February 2014.
March 2014 Actuaries 29
In the Margin
Genevieve Hayes
inthemargin@actuaries.asn.au
“I have discovered a truly marvellous proof of this, which this margin is too narrow to contain” – Fermat.
Call for the Doctor Actuary
Greetings and salutations,
readers, and welcome back to
In the Margin for 2014. This year, I am going
to share with you an unusual experience
that happened to me recently. I swear, every
word is true – give or take a lie or two.
I was the last one left in the office, stuck
working back late on a presentation, when
I heard a strange whooshing noise coming
from the kitchen. Hoping it was just the
television, but fearing the worst, I went to
see what it could be. However, my actuarial
training had not prepared me in the least
for what I found. Parked in the middle of
the kitchen was a blue police phone box,
much like the ones they had in London in
the 1960s.
While I was staring at it, speechless,
uncertain of what to do, the door of the box
opened and out stepped a strange looking
man.
“Hello,” he said. “I’m the Actuary.”
“Don’t you mean the Doctor?” I
stammered, once I regained the ability to
speak.
“The Doctor? Never heard of him. No, I’m
the Actuary. I travel through time and space
solving puzzles.”
“How do I know you’re telling the truth?”
The Actuary gestured towards the police
box. “Well, firstly, a space and time travelling
police box is standing in the middle of
your kitchen, which is strong evidence in
favour of the whole time and space travel
thing, and if you have a puzzle handy, I can
prove the puzzle solving part. I have never
encountered a puzzle I couldn’t solve.”
I looked around the kitchen and noticed a
puzzle that someone had left lying unsolved
on one of the tables. “OK,” I said, picking it
up and handing it to the Actuary. “Try this
one.”
The Actuary studied the puzzle for a few
moments and then pulled out a pen. “Oh,
this one’s easy.”
Hidden in the following wordsearch
are the names of 50 movies that contain
numbers in their titles. However, the
numbers have been removed, as has the
word ‘the’ from any titles beginning with the
definite article (e.g. The Lucky One would
30 Actuaries March 2014
Hypersudoku
Actuaries 185 Solution
The solution to the Hypersudoku puzzle given
in Actuaries 185 is:
appear simply as ‘Lucky’). No sequels have
been included and where multiple titles exist
that are identical except for the number
component (e.g. 88 Minutes and 15 Minutes)
only one is counted.
For your chance to win a $50 book
voucher, identify all 50 titles, use the
remaining letters to create two more
titles, and email your solution to:
inthemargin@actuaries.asn.au.
9
1
7
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38 correct answers were submitted.
The winner of this month’s prize, selected
randomly from among the correct entries,
was Alan Wylie, who will receive a $50
book voucher.
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M
y Adventures with
the Actuary
Ask Gae!
Gae Robinson
gae.robinson@finity.com.au
Gae answers serious and not-so-serious questions about life in the
office, career, study and coping as an actuary in the real world
Old Enough to Not Know Better
The Slippery Slope
My parents are in their 70s and are starting to
do old people stuff like chatting with strangers
and stockpiling bars of soap. Can I prevent this
from happening to me?
© Robert Kneschke–Shutterstock.com
I
’m sure that, as I write, some neuroscientist
out there is doing ground-breaking research
on these important questions. How DO our
young person’s brains turn into middle-aged
brains, and then slowly progress into quaint old
person brains? Are there genes for crankiness,
inflexibility and fear of running out of household
goods that are only expressed when we pass a
crucial age threshold?
We can see the signs of this mysterious
progression all around us.
It’s my contention that everyone over 40 is
just a little bit mad…each in our own special way.
Some of us are obsessed with things: dietary fibre,
grammar, handicrafts, the weather forecast. Some
are grumpy in the extreme. Others prattle at length about topics that
are of no interest to our listeners. I’ve been involved in some pretty
lame conversations myself; last year at a dinner party, six intelligent
adults discussed – completely without irony – the reliability and
stacking efficiency of a range of brands of dishwashers. (If you are
interested in which brand came out on top, get a grip!)
Then there’s the driving. I remember, in my twenties, my personal
rule of thumb being ’10 km/h above the speed limit is perfect’.
These days, if I’m going as fast as 10 km/h below the speed limit I
feel I’m just about hurtling out of control. I’m only a couple of steps
away from not being comfortable driving outside my own suburb
and needing to get home before dark.
Old folk are great for random compliments. During my youth,
aged strangers were constantly popping up from doorways, crossing
roads and calling out from their houses to tell me what ‘lovely hair’
I had. This hasn’t happened for many years, but it won’t be long
before I’m doing it myself. Once I can no longer stifle the impulses,
I’ll be loudly admiring luscious curls on the bus, and telling silly
young women in the street to get themselves some sensible shoes.
I see these changes in myself and, basically (sadly?), they don’t
bother me. My friends are going the same way, so I don’t feel weird.
And we’re all concerned that our occasional difficulty recalling words
or names heralds the onset of horrifying dementia.
But there are some habits of REALLY old people that I don’t
want to develop. I’m making a list of dos and don’ts for my future
ancient self right now. I’ll keep it somewhere handy and start
reading it daily at the age of 75 (if I can remember where I put it).
The rules so far:
1. If you have more than a month’s worth of any household supply,
DO NOT buy more.
2. DO NOT show anyone more than 200 of your cruise holiday
photos in one sitting.
3. If you wobble when you walk, just swallow your pride and DO use
the walking stick your helpful daughter has bought you.
4. It is OK to buy a ferry ticket without learning anything about the
life history of the person who’s selling it to you. If there’s more
than one ticket buyer in the line behind you please DO move on.
5. You can get the breakfast things out in the morning – you DO
NOT need to set them out the night before.
6. DO NOT say “promise you’ll never put me in a home”. This may
lead to your living unsupervised in your own house long after
this is a safe option, while your children agonise and argue about
whether they can break their promise.
7. If the young folk next door are keeping you awake with their
partying, DO NOT complain or call the police unless they have
done this more than three times in the last month.
8. DO wear pants with elastic waists – every day, if you like! But DO
NOT tuck your top into these pants.
9. DO NOT turn your hearing aid off “to save the batteries”.
10.DO obey any instruction from your daughter that starts with “Oh
for god’s sake, Mum, just…”
Who knows whether this list will have any impact at all on 80-yearold me! Perhaps I’ll be happily breaking half the rules, while thinking
it was hilarious that I ever thought them reasonable. I might have a
good laugh about it with my two younger sisters, who for reasons
best known to themselves will keep insisting that they are in fact my
two daughters.
I hope that in my doddery years the young people will also follow
one important rule: if I’m not doing anyone (including myself) any
harm, just smile indulgently and leave me be!
March 2014 Actuaries
31
Education Update
Philip Latham Head of Education
philip.latham@actuaries.asn.au
Latest Results
P
art III Results Semester 2 2013
In Semester 2 2013 the new computer-based exams were
used for the first time in General Insurance and Investment
Management and Finance subjects, as well as Life Insurance
subjects (which had used the new exams for the previous two
semesters).
The overall pass rate for Semester 2 2013 dropped to 35%
(including non-Fellows only for C7A ERM, the UK ST1 Heath and Care
and ASSA F101 Health Principles subjects). This represents a 6%
decrease on the previous semester. Low pass rates in the UK exams
contributed to this decrease. The pass rate excluding the UK exams
was 39%, which was only a 2% decrease on the previous semester.
The pass rates over the last ten semesters (including C7A for nonFellows since 2010, the UK ST1 and ASSA F101 exams since 2012) are
as follows:
Below are the pass rates for each course in Semester 2 2013
compared with the previous four semesters:
Course
2013 2013201320132013
(2)(1)(2)(1)(2)
Course 1 Investments
n/a n/a 42%30%31%
Course 2A Life Insurance
42% 52% 33% 33%20%
Course 2B Life Insurance
39%26%40%25%15%
Course 3A General Insurance
18% 32%30%28%23%
Course 3B General Insurance
27%35%38%38%31%
Course 5A Investment Management and Finance
51%n/a57%n/a62%
Course 5B Investment
Management and Finance
n/a57%n/a59%n/a
2013 2013 2012 2012 2011 2011 2010 2010 2009 2009
(2)(1)(2)(1)(2)(1)(2)(1)(2)(1)
Course 6A Global Retirement
Income Systems
n/a42%n/a31%n/a
35% 41% 39% 37% 33% 36% 40% 40% 40% 44%
Course 6B Global Retirement
Income Systems
41% n/a21%n/a63%
It was pleasing to see increases in the pass rate on the previous
semester in three courses: Course 2B Life Insurance, Course 6B
Global Retirement Income Systems and Course 10 Commercial
Actuarial Practice. Pass rates dropped for all other courses and it
was disappointing to see particularly low pass rates and significant
decreases on the previous semester in General Insurance and the UK
ERM and Health and Care exams.
Course 7A Enterprise Risk Management*
22%40%33% 37% 26%
UK ST1 Health and Care
10%45%38%38%n/a
Course 10 Commercial Actuarial 58%53%56%57%55%
Practice
*Pass rates for C7A ERM above are for non-Fellows only. The pass rates for
Fellows in the C7A ERM subject have been as follows:
Semester 2 2013: 6 sat, 2 passed, (33%). Pass rate for all members 39%.
Semester 1 2013: 3 sat, 0 passed, (0%). Pass rate for all members 39%.
Semester 2 2012: 4 sat, 2 passed, (50%). Pass rate for all members 33%.
Semester 1 2012: 6 sat, 4 passed, (67%). Pass rate for all members 39%.
Semester 2 2011: 7 sat, 2 passed, (29%). Pass rate for all members 26%.
Pass rates and exam centres
Location
2013 20132012 20122011
(2)(1)(2) (1)(2)
34%41%37%34%35%
Melbourne
31%38%38%45%36%
Other Australian
57% 41%59%29%24%
Overseas
35%47%36%30%21%
It was pleasing to see that the highest pass rate in Semester 1 2013
was in the Overseas category with 47%. The Other Australian category
achieved a significantly higher pass rate in Semester 2 2013, as it did
in Semester 2 2012. There was no significant difference in the pass
rates for Sydney, Melbourne and Overseas categories in Semester 2
2013.
32 Actuaries March 2014
© iodrakon–Shutterstock.com
Sydney
High Schools Program
I
nstitute HQ has undertaken a review of the previous program to promote the profession
to high school students (More than Maths) and is launching the revamped program –
Actuarial Studies: Problem Solved.
We want to tell high school students that becoming an Actuary is a brilliant career choice
and let them – plus their parents and career advisors – know about the education program,
the work that actuaries do, the career opportunities and the benefits of joining such a great
profession.
High School Visits
A visit typically involves up to two actuaries – one with several years of experience and the
other just starting out in their career. HQ will coordinate the visits, provide a presentation,
and handouts for the students and organise the logistics.
Get Involved
Actuarial Studies: Problem Solved will only be launched in NSW in 2014 and will be rolled
out across other states from 2015.
If you would like to get involved, email: problemsolved@actuaries.asn.au.
You can either nominate a particular school or we can talk to you about the high schools we
are targeting.
March 2014 Actuaries 33
Actuaries at Play
Ben Qin
ben.qin@marsh.com
African Cichlids
with Ben Qin
Cichlid aquariums are a great way to spice up your workplace or home. If you are
in need of any advice, or in need of helping hand in starting up contact the author.
A
re you sick of boring old goldfish and furry little
rabbits for pets? Why not try some African cichlids
for a change. These are indeed flamboyant, hardy and
full of character. Not convinced? (How could you not
love these delightful specimens opposite!) Originating from the
three great lakes in Africa – Lake Malawi, Lake Tanganiyika and
Lake Victoria, these creatures have made it into tanks in many
of our homes as pets.
1. Protomelas taeniolatus
– Red Empress
2. Sciaenochromis fryeri
– Electric Blue
3. Labidochromis caeruleus
– Electric Yellow
4. Protomelas steveni
– Taiwan Reef
5. Protomelas – Tanzania
6. Cyrtocara moorii
– Blue Dolphin
You will need:
1x large glass tank (4ft and above); 1x substrate material
(preferably fine crushed coral sand); 1x Aquarium Filter;
1x Heater; 1x Air pump with air stone; 1x weekly water changes
(1-2 buckets only); many rocks, ceramic pots, slates to create
caving structures – Now just add some fish and your cichlid
tank should look like the one above.
Author’s own experience
I have kept and bred these interesting pets for many years
now. They are indeed a great alternative to keeping common
dogs and cats as pets. Apart from the massive range of colours
and species that exist, they are largely territorial creatures. This
is makes it very interesting to watch the different behaviours
they display, whether they are:
• The dominant species establishing balance of power by
claiming their territory (e.g. largest piece of rock in the tank,
or entrance of a cave which its mates can take refuge in).
• The male display of dominance over other males.
• Their unique mating dance.
• The females’ use of their own mouths as egg incubators and
to protect the young, over many weeks.
7. Cyphotilapia frontosa –
known as ‘6-Bar Frontosas’
Current count
5x adult, 30x juvenile Electric Blue
5x adult, 15x juvenile Electric Yellow
1x adult 6-Bar Frontosa
1x adult Synodontus Eupterus – ‘Whiskers’
1x Eastern long-necked turtle
1x Crown-tail Siamese fighter – ‘Bubbles’
34 Actuaries March 2014
Tank view
Congratulations
Welcome to New Members – February 2014
New Members – Australia
Lucus Hayato ALLERTON
Alex ANTONY
Andre BEDON Naomi Jade CARTER Elly CHEN Simon CHENG Mun Yin CHEONG Aaron CHONG Philip CHOW Cameron James CURKO Rohan CURRIE Ning DING Alice Catherine EVANS Mengxiao FENG Yining FENG Kathleen Jane FRASER Joshua Robert FREEMAN Karno GANGOPADHYAY Fei GAO Andrew James GLEESON Liza GONZALEZ-BANUELOS Ani GOPAL Samuel Corey GREENUP Howard GU Qi GUAN Junliang GUO Alan Khai HOANG Yingxin HOU Emily Shu-Mei HUANG Priscilla Jie Ling HUANG Brayden David IRVING Augustine Thania ISTANTO John Wright JONES III John KASUKU Arthur KONG ACT
VIC
NSW
WA
NSW
NSW
WA
VIC
NSW
NSW
ACT
NSW
NSW
VIC
VIC
VIC
VIC
NSW
NSW
NSW
NSW
NSW
QLD
NSW
ACT
NSW
NSW
NSW
VIC
NSW
VIC
NSW
NSW
WA
VIC
Divya KUMAR Karina KUSUMO Jeffrey KWOK Matthew Fung LAM Emily Tzu-Tung LAW Ka Yin LAW Hye-Rin LEE Jessica LEE Han-Bo LI Huijie LI Jia Jun Johnny LI Jing LI Qingye LI Kevin LIAN Yi Xian LIM Suwen LIU Tong LIU Mi LU Thi Phuong Thuy MAC Lisa Marie MORAN Michael Phillip MOUSSA Joey Ka Kit MUI Daniel NEYLAND Sinn-Shun NG Joshua ONG Wen Lin ONG Rongbin OU Yinan PAN Michelle Nina PIGGOTT Neeharika Awadh PRASAD Henry Gunawan PUTRA Amanda Louise REES Dan Qing SHI Jiawei SONG Su Ann SONG ACT
NSW
NSW
VIC
NSW
NSW
NSW
NSW
VIC
NSW
NSW
NSW
VIC
NSW
VIC
ACT
NSW
NSW
NSW
NSW
NSW
NSW
SA
NSW
VIC
VIC
VIC
NSW
NSW
ACT
VIC
VIC
VIC
NSW
VIC
Joshua Iyn Zhou SOO Matthew STOJANOVIC Anqi SUN Wilson SUSANTO David Robert SZOMOLNOKI Chenxi TANG Lizhu TANG Vincent Hui Ee TING Jared Yuan Wen TOE Jenny TRINH Daniel TRUONG Joshua TSEITLIN Nick Chia Chun WEI Yaxin WEN Erwin WIBOWO Ada Lo Lam WONG Jeffrey Cheuk Hei WONG Chengyang WU Zhuojun WU David Yiquan XIE Yang XU Chen YANG Arian YEGANEH Wen Qian YONG Xiao Ling YONG Theresa YOU Simiao YU Neema ZAHEDI Carl Jiwei ZHANG James ZHANG Yaming ZHANG Yuanyuan ZHANG William ZHENG Yang ZHENG Alice ZHOU ACT
NSW
NSW
ACT
NSW
ACT
NSW
NSW
QLD
QLD
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VIC
NSW
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NSW
NSW
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VIC
WA
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NSW
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NSW
WA
NSW
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NSW
VIC
VIC
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Shih Yan LIM Teng LIN Nitchan LORCHAIYANAN Chuong Phan Anh LUONG Ram NANDRAJOG Chin Yee NG Gary Teck JOO NG Karthik SANKARALINGAM Joanne TAN Kang Jing TAN Malaysia
China
Thailand
Vietnam
Malaysia
Singapore
Malaysia
New Zealand
Singapore
Singapore
Jia Chin TEO Ming Jie THAM Hau Yip Brian TU Jonathan David VALOIS Zheng Lik YEAP Dongxue YOU Zhen ZENG Fanchao ZHANG Ruilin ZHANG Singapore
Singapore
Hong Kong
New Zealand
Malaysia
New Zealand
China
China
China
New Members – Overseas
Guan Liang CHEN Shijie CHEN Hyunsik CHOI Kristee Peta HARDACRE Darren HO Aswan JAYA Ling Keat KANG Chun Liang LEE Erika Ai-Wei LEE Zhao LI Canada
China
Korea (S)
New Zealand
Hong Kong
Singapore
Malaysia
Malaysia
Singapore
New Zealand
March 2014 Actuaries 35
Obituaries
Philip James Ryan
9/6/1915 –7/1/2014
P
hilip James Ryan, AM, FIA, FCA, FCIS
was born in Kew, Victoria, on 9 June
1915. He was baptised, married his
wife of 66 years, Mavis, and was
farewelled by his many friends on 14 January
2014 at the local Catholic Church, Sacred
Heart. That Church played an integral part
in his life both socially and in supporting his
lifelong commitment to his faith.
His later school years were spent at Xavier
College, Kew. Phil liked music, but was not a
good singer. It was suggested he leave the
choir, and spend time with the maths master.
This led to his love of mathematics.
Initially he worked at the Tax Office, and
later at Hutchinson Flour. He studied and
completed the accountancy and secretarial
courses during these years– becoming a
Fellow in both disciplines.
A chance meeting with the maths master,
and his love of mathematics, led Phil to
commence actuarial studies. He studied
part time for many years, as Actuarial
examinations were then conducted by
correspondence through the Institute of
Actuaries in the UK. In one particular year
Phil’s papers were sent off for marking but
unfortunately the papers were on a ship that
was sunk – it was war time after all – and so
he had to repeat them the following year!
Phil joined The National Mutual Life
Association in 1949, and qualified FIA in 1952.
Phil found a real niche at National Mutual
(NM) where he was to become Investments
Manager, Chief Financial Officer and finally its
Assistant General Manager, responsible for
all Finance and Investment activities.
Phil also served a term as President of
the Insurance Institute of Australia. As was
common for Life Office actuaries in that era,
Phil was pension fund actuary for several
private pension funds (the largest being
State Electricity Commission of Victoria).
Actuarial students in Investments could earn
overtime assisting Phil in that work. They
marvelled at his ability to correctly add in his
head long columns of pounds, shilling and
pence faster than they could with an adding
machine. He retired from NM in June 1977.
Phil was an ‘old-style’ investor, seeking
sound opportunities with steady income
and good long-term growth prospects.
(Thankfully, he did not have to deal with the
short-term visions of today’s commentators).
His motto was “the simpler the better“
36 Actuaries March 2014
for all transactions. He was also a great
supporter of companies and business
ventures where the principals had strong
ethical standards. And when satisfied
about the quality of his own managers,
he backed their views strongly. He was
particularly involved in NM’s thrust into
Finance Companies, Merchant Banking and
agricultural investments.
While work was very important to Phil,
so too was sport. He played many different
sports, invariably at a high standard. But it
was football that he most enjoyed, playing
52 games for Hawthorn Football Club
between 1941-1947. He was the Club’s Best
Team Player in 1942.
We can say with some certainty that Phil
is the only qualified Actuary to have ever
played VFL/AFL football at the highest level.
And not only did he play football, but
Phil went on to be one of Hawthorn’s
great administrators. He held many roles
there culminating in his Presidency from
1968 to 1979. Hawthorn would win three
premierships in this period – 1971, 1976,
1978. They had won only one flag in their
previous 40 odd years in the VFL.
He was made a Hawthorn Life Member
in 1951 and inducted into its Hall of Fame in
2003. He was VFL Vice President for several
years and lost out by one vote in 1977 to
being elected VFL President.
Phil was a great supporter of charitable
enterprises, generously giving his time
and expertise to St Vincent’s Hospital, and
several Aged Care facilities.
Phil was above all else a family man. He
adored his two beautiful daughters, their
partners and his five grandchildren, and
three great grandchildren.
In his later years Phil was unwell but
never complained about his health. He was
a man who hated fuss and did not look for
praise or reward.
In spite of this, he was awarded a
Member of the Order of Australia in 1991.
The citation reads “For service to the
community and to sport”. It was well
deserved as he was a clever, intelligent man,
a leader of men, a contributor who was well
liked, respected and admired by all. He was
a true gentleman, a man of great kindness
and integrity, virtues borne from his
upbringing but also from his membership of
the Institute.
(Previous text supplied by Judi Byrne –
Phil’s daughter, and Martin Hession and Ian
Ferres who worked for Phil at NM.) Following
is a separate contribution from Ron McDonald
FFA, FIAA who worked with Phil at NM.
Phil Ryan – remembered
I
t’s hard to think of suitable actuarial
material to include in an obituary for
Actuaries Magazine. Phil Ryan’s could well
be headed ‘A very rare Actuary’.
Phil was a highly qualified Accountant and
Secretary. Why he decided to undertake the
strenuous and then Correspondence course
with the Institute in London is far from clear. I
don’t think he ever was involved with actuarial
work before joining NM. He never attended
meetings or functions of the local Institute or
its predecessors. Indeed he always claimed
to be an Accountant (actuary) rather than an
Actuary (accountant).
For a number of years Phil and I had
adjoining offices at 447 Collins St. He was
an ideal neighbour. Strange as it may
seem in today’s world we had little workrelated contact regarding his investment
responsibilities and my concerns with
Superannuation. It was taken for granted that
we could rely on each other’s competence.
We both attended NM executive meetings
and Board Room lunches. As always he was
great company on such occasions, especially
with his insights of the VFL. He insisted on
drinking beer, regardless of anything else on
offer. He started work very early each day and
left early to attend to the pressing demands
at Hawthorn Football Club where he was a
former player.
In his role as President of Hawthorn he
was on first name terms and completely
’at home’ with Governors, Premiers, Judges,
Bankers and the captains of business and
industry, plus the usual management and
players of the then Victorian football world.
To office colleagues he seemed completely
unaware of such ’celebrity‘ status.
At about the time of his retirement there
was an election for President of the VFL. Phil
and Alan Aylett of North Melbourne were
the candidates and received six votes each.
Aylett got the nod by some obscure process.
NM people felt strongly that this was a gross
miscarriage of justice.
Ron McDonald
Lindsay Joseph Cutler
30/1/1947 – 18/10/2013
A
cademic Background
Growing up in Queensland, Lindsay
attended Church of England
Grammar School in Brisbane where
he played rugby union in the school seconds
and became the stroke of the school rowing
eight. He was a strong muscular guy who
systematically would do weight training
each morning following his own carefully
constructed routine.
He completed secondary schooling before
moving to Melbourne in 1965, where he
completed an economics degree at Monash
University. Lindsay was conscripted into
the Australian army for National Service
and after initial training at Puckapunyal in
Victoria was selected for an officers’ course.
On completing his training he was posted to
Canberra as a lieutenant for the remaining 18
months of his service.
While in Canberra he attended ANU and
completed his Master’s degree in economics.
Following part-time correspondence studies
Lindsay gained the London Institute of
Actuaries Certificate in Investments in 1975
and eventually qualified as a Fellow of
the Institutes of Actuaries in London and
Australia in October 1982. Some years later
he completed the necessary requirements
to become a Certified Financial Planner and
was a member of the Financial Planning
Association.
In 1995 he joined Mitchell & Co
as a Consulting Actuary and Lynken
Investments/Counsellors as a Financial
Planner. The latter relationship continued
until June 2012 when it became necessary
for him to transfer to another AFS license
holder.
In his earlier career Lindsay was a
respected and well liked leader who was
appreciated for his care, concern and
assistance in his staff’s work. Later in his
career he was involved in face to face
advising in which his discretion in keeping
the confidentiality of his clients’ affairs
combined with his sound advice, earned him
great respect with all his clients.
Private Life Outside the
Profession:
Family
The eulogies at Lindsay’s memorial service
revealed the importance of family to him and
the wider Cutler family. He was recognised
as the academic one among the five siblings.
Together with his wife Ros, they raised
four children, two sons and two daughters
and were proud grandparents to four
grandchildren. Because at work Lindsay was
a private person, those eulogies also gave
much information not otherwise known
to his actuarial colleagues. Some of that is
recorded below.
Career
Scouting
After leaving the army, Lindsay joined
National Mutual in 1972 before later
switching to Sedgwicks (insurance brokers
and superannuation consultants).
In 1986 he was to become a partner
in Financial Synergy where he was the
partner specialising in superannuation
administration and investment. There he
jointly partnered in the establishment of Top
Quartile Investment Trust in 1987 (the year
of the stock market crash). That background
was to become the seed which later lead
him into providing financial advice to
individuals, particularly those leaving funds
that he was administering.
From 1992 to 1995 Lindsay was the
Actuarial Consultant to the Tasmanian
Government and the public servants’
Retirement Benefits Fund where he was
known to provide sound and innovative
advice.
Lindsay was deeply involved in the scouting
movement where not only did he learn
basic skills of life and survival but was
recognised for his considerable talents and
contributions to the movement. In 1963 he
was awarded the highest honour of the
scouting movement, the Queen Scout Award
which was bestowed by the Governor of
Queensland. In subsequent years he went
on to provide over 20 years of leadership
in his local area of Vermont South which
was recognised by his being presented with
the highly prized Silver Arrowhead award
presented by the Governor of Victoria for
his outstanding leadership to the scouting
movement.
Subsequently he embarked on the first of
numerous overseas treks which included
the Kokoda Trail (carrying his own 25 kg
pack unassisted to personally experience
the Australian soldiers’ trials and difficulties)
which was by far his most arduous trek.
Other treks included the Inca Trail in
Peru, the Annapurna Circuit in Nepal (with
daughter Georgie), the Queen Charlotte track
in NZ, Mont Blanc in Europe (with son Ben)
and Mount Kilimanjaro. His most recent
and final adventure was finished just four
weeks before his sudden passing which was
an eighteen day coast to coast walk across
England (with brother Warren/’Rodge’) from
west to east, a distance of around 330 kms.
His brother said that in his trekking,
he was a person who was at all times in
complete control, who followed his detailed
notes and directions meticulously. He was
careful when it became difficult, he would
assist with directions and help when others
got into difficulty. He would carefully use
his pole to ensure footing ahead was firm,
calling on all the resources he had learnt
as both an actuary and a queen scout so
many years earlier and keeping conversation
interesting with his views on world economic
problems and what was needed to fix them.
Personal Attributes
Lindsay was recognised as one who
prepared and walked his treks the same
way he undertook his life. He was highly
organised, was a disciplined character
who never undertook anything without
appropriate preparation. He was practical in
his approach to problem solving, meticulous
in paying strict attention to detail, never
panicked, but remained calm and carefully
considered at all times. His protection of
those in his care was paramount in his
family, his trekking companions and his
actuarial and financial advice clients.
He will be greatly missed by his
colleagues as well as his wife and family to
whom we extend sincere condolences.
Ken Dance
Trekking
It was about 2005 when Lindsay had a
health issue which brought him to recognise
that life cannot be taken for granted.
March 2014 Actuaries 37
Staying Ahead
Sue Wetherbee
Head of Learning Design and Development
sue.wetherbee@actuaries.asn.au
Don’t Fall Behind Your Competitors!
T
he Institute’s Practice Risk Management eLearning Course has been warmly
welcomed by Members since its launch in October 2013.
Who’s been learning to manage their practice risks so far?
Age range:
28-65
Designation:
Fellows and Associates
Practice area:
Life
General Insurance
Superannuation
Investments
Non-actuarial
Geographic base:
Australia (VIC, QLD, WA, NSW)
Overseas (NZ, Shanghai, Sri Lanka, Singapore, Hong Kong)
Employers:
Insurers
Government
Small and large consulting firms
What they’ve said about the Course
Those who’ve completed the Course have provided feedback to the Institute saying:
YOU
“The course has something for everyone in it!”
“The material is useful and of benefit to all actuaries—not just consultants.”
“The design structure was very helpful.”
“The variety of delivery methods was very engaging.”
“The course was very, very good.”
“The course made learning enjoyable.”
“The price was very good for what you received.”
“Definitely value for money and worthwhile.”
Early bird discount offer closes soon!
The Early Bird registration offer for the Practice Risk Management eLearning Course will
close on 28 March 2014.
Don’t let your competitors get ahead of you – make sure you know as much about
managing risks in your practice as they do! Register at the rates shown below by
visiting www.actuaries.asn.au/PRM.
38 Actuaries March 2014
Early Bird (for individual members only)
up to and including 28 March 2014
$230.00
Member
$250.00
Non-Member
$300.00
Group Enrolment (5 to 10 people)
$225.00pp
Group Enrolment (11 or more)
$215.00pp
© vs148 / Denis Cristo–Shutterstock.com
THEM
Practice Risk
Management
eLearning
Course
Early Bird offer ends Friday 28 March 2014
Put your best foot forward and safeguard your
reputation. Enrol in the Practice Risk Management
eLearning Course and equip yourself with essential
risk management tools and techniques.
You can access the course anytime,
anywhere, on any device.
The course fee represents excellent
value – why not take advantage of the
early bird discount or group rates and
enrol today?
www.actuaries.asn.au/PRM
Feedback from participants
“...course design structure was very
helpful as the small sections and
units of study enabled me to learn in
pieces and it suited my busy day...”
“...variation of delivery methods was
really engaging and kept my interest
throughout the course...”
“...this course made learning
enjoyable...”