Insurance of electric vehicles

By Guillaume Serdeczny and Sarah Clarinard

	Guillaume Serdeczny works as a Senior Pricing Actuary at insurance company MAIF.
	Sarah Clarinard works as Chief Pricing Officer at insurance company MAIF.

 

In September 2021 Tesla Model 3 became the first electric vehicle to lead the best-selling cars chart in Europe. This could have been a seasonal effect of Tesla production timelines, but non-European Market share of battery electric vehicles went from 0,7% in 2017 to 7,5% of all new cars sold in Q2 2021 (source: ACEA).

 

Read the full article here.

 

Disclaimer:

This article represents the opinion of the authors, and not necessarily the opinion of the AAE.

This article was published in The European Actuary No. 29 – March 2021

Actuaries in the media in the pandemic

By John Roberts and Stuart McDonald

	JOHN ROBERTS is an actuary with nearly 40 years’ experience in the profession, spent working in the UK life industry, predominately at Canada Life and Zurich. With many years’ experience of both the group risk market, and life office pricing, John has most recently focused on establishing longevity swap contracts in respect of pension scheme liabilities.
	STUART MCDONALD is Head of Demographic Assumptions and Methodology for Lloyds Banking Group. He plays an active role within the actuarial profession, currently serving on the Executive Committee of the Continuous Mortality Investigation. He founded and co-chairs the COVID-19 Actuaries Response Group. Stuart was awarded an MBE for services to Public Health in the 2022 New Year Honours

 

Over the last two years the pandemic has resulted in epidemiologists, immunologists and modellers being thrust into the limelight to an extent that they might never have imagined. In the UK, actuaries too responded to the need for rapid, reliable and trustworthy analysis by harnessing social media in a way that previously had not been seen by the profession.

 

Read the full article here.

 

Disclaimer:

This article represents the opinion of the authors, and not necessarily the opinion of the AAE.

This article was published in The European Actuary No. 29 – March 2021

The next European Congress of Actuaries will take place in Madrid, Spain, on 2 and 3 June 2022. Today, we are very happy to announce the keynote speakers of the European Congress of Actuaries:

 

Furthermore, the early bird deadline will end on 3 April so book your ticket soon!

 

Find all information and the registration on www.eca2022.org.

Sustainability and climate change: main positions of the AAE

By Frank Schiller

DR. FRANK SCHILLER has been working at Munich Re as Chief Actuary in life and health reinsurance since 2015 and is responsible for the markets in Europe, Latin America (till 2020) and Middle East.

 

In recent decades we have seen increased insurance losses due to natural catastrophes. A wide range of commentators, including leading reinsurers and modelling firms, report clear upward trends in risks that can be directly connected to climate change. These trends have been observed, modelled and explained by scientists. Leading experts in this field have been honoured by Nobel prizes for their research. The AAE is deeply concerned about the effects of the climate crisis endangering mankind and the unprecedented risks it introduces for all economic sectors and in particular for insurance, reinsurance and rest of the financial sector.

 

Read the full article here.

 

This article was published in The European Actuary No. 29 – March 2021

Looking at good governance

By Jennifer Baker

MEP Fabio Massimo Castaldo is Vice-President of the European Parliament. He sat down with Jennifer Baker to talk about governance, the review of Solvency II and the role of actuaries.

 

This issue we caught up with MEP Fabio Massimo Castaldo, Vice-President European Parliament, to talk about governance, the review of Solvency II and the role of actuaries.

Read the full article here.

 

Disclaimer:

This article represents the opinion of the interviewee, and not necessarily the opinion of the AAE.

This article was published in The European Actuary No. 29 – March 2021

• The Italian experience of Covid | by ISOA
• Impact of the pandemic on mortality and morbidity in Germany | by Dirk Stötzel (DAV)
• Coronavirus and insurance in France 2020-2021 | by Guillaume Leroy and Frédéric Planchet

 

	FRÉDÉRIC PLANCHET is an actuary at Prim’Act and works as an associate professor of Finance and Insurance at ISFA.
	GUILLAUME LEROY is a consulting actuary at Prim’Act-Actense Paris

 

Read the trilogy here.

 

Disclaimer:

These articles represent the opinion of the authors, and not necessarily the opinion of the AAE.

This article was published in The European Actuary No. 29 – March 2021

A short note:

Forecasting NATCAT reserves using the CIR² model

By Giuseppe Orlando and Michele Bufalo

		MICHELE BUFALO works in the Department of Methods and Models for Economics, Territory and Finance at Sapienza Università di Roma.
		GIUSEPPE ORLANDO works in the Department of Economics and Finance at Università degli Studi di Bari Aldo Moro.

 

In this note we highlight some features of the CIR2 model we have developed, which is a generalised two-factor square root model (i.e. a model where, under certain conditions, both losses and volatility are positive and where volatility increases with the level of loss). In the framework we present, calculation of the mean and variance of loss are correlated processes; this is a new theoretical approach, and difficult to implement insofar as there are no closed-form solutions. This methodology is designed primarily for use by insurers and reinsurers that need to avoid high variation in their reserves; however, it could be extended to apply to any business that is exposed to extreme events and aims to preserve a stable cash flow to shareholders. In fact, though generalised linear models are common instruments in the pricing of nonlife insurance contracts, they are inadequate for extreme claims. As such, the suggested model could be helpful for pricing in this instance.

 

Read the full article here.

 

Disclaimer:

This article represents the opinion of the authors, and not necessarily the opinion of the AAE.

This article was published in The European Actuary No. 29 – March 2021

Looking ahead

By Jennifer Baker

Petra Hielkema  is the Chair of EIOPA. She sat down with Jennifer Baker and shared her views on what is needed in the future.

 

Petra Hielkema took up her five-year term as the Chairperson of the European Insurance and Occupational Pensions Authority (EIOPA) last September. Prior to this, she was director for insurance supervision at the Dutch central bank, where she was responsible for the prudential supervision of the Dutch insurance sector. Now, after six months in the job, she looks to the future and what’s needed in the sector.

Read the full article here.

 

Watch the complete interview on actuview (accessible to registered users).

Watch the short version of the video on actuview (accessible to everyone).

 

Disclaimer:

This article represents the opinion of the interviewee, and not necessarily the opinion of the AAE.

This article was published in The European Actuary No. 29 – March 2021

Issue 29, March 2022 of The European Actuary has been published.

Featured Articles:

• Looking ahead | Interview with Petra Hielkema
• Forecasting NATCAT reserves using the CIR² model | by Giuseppe Orlando and Michele Bufalo
• Insurance of electric vehicles | by Guillaume Serdeczny and Sarah Clarinard
• Covid in Europe: Coronavirus and insurance in France 2020-2021 | by Guillaume Leroy and Frédéric Planchet
• Covid in Europe: The Italian experience of Covid | by ISOA
• Covid in Europe: Impact of the pandemic on mortality and morbidity in Germany | by Dirk Stötzel (DAV)
• Actuaries and the media in the pandemic| by John Roberts and Stuart McDonald
• Looking at good governance | Interview with MEP Fabio Massimo Castaldo
• Sustainability and climate change: main positions of the AAE | by Frank Schiller
• Meet AAE Board member Matthias Pillaudin

 

Please visit the webpage of The European Actuary on the AAE website for prior issues or further details.