Solvency II review proposal for long term valuation: Significant risk to destroy values!

16 March 2021

Wilhelm Schneemeier Chairperson AAE

On first sight this may sound more like a lobbyist statement than a prudent actuarial position. Why does AAE not support the proposal of EIOPA to reduce the risk-free interest rate significantly after 60 years (see also articles in the March issue of “The European Actuary”)? Let me explain step by step why EIOPA’s advice concerning the extrapolation is not justified and even contradicts many actuarial principles and is not aligned with the existing Solvency II framework.

(more…)

‘What is the AAE’s official position on Solvency II review?’

15 March 2021

EIOPA Opinion on Solvency II review – Concerns of AAE

In February 2021, the Actuarial Association of Europe (AAE) set out its main positions regarding the Solvency II 2020 review.

While acknowledging that Solvency II is intrinsically a well-functioning, risk-based framework, the AAE believes that the experience of the past five years of application, along with the low interest environment, reveal a need to change parts of the current framework.

Read the full article here.

This article was published in The European Actuary No. 25 – March 2021

AAE responds to EIOPA’s Consultation on the Supervisory Statement on ORSA in the context of COVID-19

AAE submitted a response to EIOPA’s Consultation on the Supervisory Statement on ORSA in the context of COVID-19.

AAE’s submission can be found here.

‘Can you predict without historical knowledge? Peter Kingsley approaches this dilemma’

11 March 2021

Decision making in uncertainty

The finance, pensions and insurance sectors have long relied on data and mathematical models to justify decisions, many backed by the authority of actuarial practice. Everything from projecting life expectancy to aligning long-term pension obligations and capital allocation decisions are measured, creating a shared set of norms. Risk is traded. Value exchanged.

Read the full article here.

Disclaimer:
This article represents the opinion of the author, and not necessarily the opinion of the AAE.

This article was published in The European Actuary No. 25 – March 2021

‘How to priortise vaccination’

8 March 2021

How to prioritise vaccination

Remarkably, mankind has developed a range of vaccines in little more than 12 months since the identification of the novel coronavirus in late 2019. The big issue as we enter 2021 is how should those vaccines most responsibly be rolled out? Stuart McDonald, Yifei Gong and John Roberts, three actuaries working on demographic and epidemiological data, have been to the fore of analysis of the benefits of the strategic distribution of early vaccines to the most vulnerable categories of the population. We set out here a summary of their recent work.

Read the full article here.

Disclaimer:
This article does not necessarily represent the opinion of the AAE.

This article was published in The European Actuary No. 25 – March 2021