Actuary UK Investigation Over Failure to Prevent Losses

Government actuaries are to be investigated over their alleged failure to spot the problems that pushed Equitable Life to the brink of collapse, it emerged yesterday.

If the professional body carrying out the inquiry finds evidence of misconduct, it has the power to ban people from practising and to impose unlimited fines.

Such a finding would be embarrassing for the government, which has been resisting demands that it compensate those who lost their money in the Equitable Life scandal.

About one million customers saw their retirement savings slashed when the world’s oldest mutual insurer was plunged into chaos by a court ruling almost 10 years ago.

This is the 14th investigation into the problems that beset the company, and follows criticism of the Government Actuary’s Department (GAD) by Lord Penrose and the parliamentary ombudsman.

The Accountancy and Actuarial Discipline Board – the independent body for the Actuary UK and Accountants professions – said that it was investigating “the conduct of certain members in relation to the provision of advice by or on behalf of the Government Actuary’s Department.”

The board said it was not possible to say how long the investigation would take. The disciplinary board has not named any individuals or specific actuaries or accountants.

This year, the parliamentary ombudsman, said the GAD was guilty of maladministration in relation to its regulation of the insurer.

The Ombudsman concluded that during the period before July 1998, when the problems that eventually forced the company to close its doors to new business were developing, the GAD and other bodies undertook their duties in a “passive, reactive and complacent” manner.

Failings included permitting one person to hold the roles of Equitable chief executive and appointed actuary UK for more than six years.

In July the Ombudsman recommended that a scheme be set up to compensate people for the losses they would have avoided had they taken their money elsewhere. This could run into billions of pounds.

The government promised to respond to the report in the autumn and is sticking to this line, prompting growing anger among campaigners and MPs.

The Equitable Members Action Group said the announcement was “good news” but added that its primary concern was seeking compensation for those who lost money as a result of the insurer’s problems.

The GAD said it was aware of the investigation but could not make any comment.

Recession Impacts on Recruitment Sector

Available vacancies in the City of London are reported to be down 40% on this time last year and the number of people seeking work in the financial services sector has jumped by 42%.
With the UK heading towards recession, European forecasts for growth being slashed and even emerging market economies beginning to feel the pinch the outlook is most definitely uncertain.

This means job security is a very real concern for those working in the financial and actuarial sector, while finding suitable employment may be a struggle for those who are looking for a new career.

For those seeking new actuarial jobs it is now more important than ever to ensure every step is taken to maximise the chances of success, this means carefully preparing essentials such as CV’s, References, Certificates of Achievement and most importantly yourself (best suit, clean shoes, body language and interview techniques).

This is where a specialist Actuarial Recruitment Agency will help, not only will they have access to the widest database of suitable actuarial vacancies you will also be given expert guidance on the best way to layout your CV and tips and training on how to handle the interview. This kind of practice and preparation is often the difference success and failure.

Actuary warns of gap in pensions market

The market for pensions advice for small to medium sized enterprises is not being adequately filled, according to study by a firm who offer actuary services.

The actuarial experts have claimed that pensions advisers are not filling the market.

Traditional pensions consultancies are concentrating on big clients, ignoring the small to medium size enterprise market, who badly need advice.

Companies which have final salary schemes managed by insurance companies are finding that very often the insured service is simply about compliance and there is very little in the way of pro-activity at a time when small to medium size enterprises are facing escalating costs and liabilities within their pension schemes and need concentrated advice.

A spokesman fdor one pensions company said dealing with SME’s is often not a profitable exercise and that it can be difficult to make money from smaller businesses’ schemes if you do not get the charging structure right.

If you are looking for Actuarial Jobs and Insurance Careers get in touch with Acumen Resources, specialist Actuarial Recruitment Specialists.

 

Insurance Jobs

There are many careers in the insurance job market, if you are looking for insurance jobs in either financial, actuarial, risk management then we recommend speaking to a specialist insurance careers recruitment company.

They will have up to date information about what insurance jobs are available along with salary guides and job descriptions to help you make the right choice about any vacancy with an insurance company or financial organisation.

If you are looking for a specialist role such as that of an insurance or financial Actuary you should seek the advice of an actuarial recruitment agent, you can find many of these by searching on Google.

Actuarial Jobs – What is an Actuary

The career or job of an actuary is a business professional who deals with the financial impact of risk and uncertainty.

Looking for an actuarial job?

Actuaries have a deep understanding of financial security systems, their reasons for being, their complexity, their mathematics, and the way they work. They evaluate the likelihood of events and quantify the contingent outcomes in order to minimize losses, both emotional and financial, associated with uncertain undesirable events. Since many events, such as death, cannot be totally avoided, it is helpful to take measures to minimize their financial impact when they occur. These risks can affect both sides of the balance sheet, and require asset management, liability management, and valuation skills. Analytical skills, business knowledge and understanding of human behavior and the vagaries of information systems are required to design and manage programs that control risk.

Actuaries’ insurance disciplines may be classified as life; health; pensions, annuities, and asset management; social welfare programs; property; casualty; general insurance; and reinsurance. Life, health, and pension actuaries deal with mortality risk, morbidity, and consumer choice regarding the ongoing utilization of drugs and medical services risk, and investment risk. Products prominent in their work include life insurance, annuities, pensions, mortgage and credit insurance, short and long term disability, and medical, dental, health savings accounts and long term care insurance. In addition to these risks, social insurance programs are greatly influenced by public opinion, politics, budget constraints, changing demographics and other factors such as medical technology, inflation and cost of living considerations (Bureau of Labor Statistics 2006).

Casualty actuaries, also known as non-life or general insurance actuaries, deal with catastrophic, unnatural risks that can occur to people or property. Products prominent in their work include auto insurance, homeowners insurance, commercial property insurance, workers’ compensation, title insurance, malpractice insurance, products liability insurance, directors and officers liability insurance, environmental and marine insurance, terrorism insurance and other types of liability insurance. Reinsurance products have to accommodate all of the previously mentioned products, and in addition have to properly reflect the increasing long term risks associated with climate change, cultural litigiousness, acts of war, terrorism and politics (Bureau of Labor Statistics 2006).

In 2002, a Wall Street Journal survey on the best jobs in the United States listed actuary as the second best job, while in previous editions of the list, actuaries had been the top rated job (Lee 2002). The survey used six key criteria to rank jobs: environment, income, employment outlook, physical demands, security and stress. A similar survey by U.S. News & World Report in 2006 included actuaries among the 25 Best Professions that it expects will be in great demand in the future.

Trainee Actuary Vacancies

Are you a Trainee Actuary or looking to become a Trainee Actuary if so then you should consider an Actuarial Career.

There are many different Recruitment Agencies who are specialists in the insurance, risk and actuary sectors, the all have details of up to date vacancies with small, medium and large insurance, financial and risk management companies in the UK and overseas.

Search for Trainee Actuarial Vacancies

Make sure you choose carefully and ensure you are dealing with a specialist, a UK Actuary can command a good salary, so it is important you make the right career decision.