Use of Dynamic Financial Analysis and Financial Condition Reporting by United Kingdom General Insurers

2006 ◽  
Vol 1 (1) ◽  
pp. 79-101 ◽  
Author(s):  
Y. Shiu ◽  
P. Moles

ABSTRACTThis paper presents the findings of a survey of the current Dynamic Financial Analysis (DFA)/Financial Condition Report (FCR) practices in the United Kingdom general insurance industry. An independent samples t test for non-respondent bias was conducted, and the results suggest that the respondent sample is representative of the survey population. The survey results revealed: (1) that the use of DFA techniques in the industry was limited; (2) that scenario testing was the most frequently used technique; (3) that the most common DFA application was the evaluation of reinsurance programmes; (4) that less than ten scenarios were run regularly; (5) that inflation was the most frequently modelled economic variable; (6) that the capability of asset modelling of general insurers was restricted; (7) that the most common method of liability modelling was to use all in force policies in aggregate; (8) that the most common projection periods in DFA and business planning were three years; (9) that the main reason for not using DFA techniques and producing FCR was lack of need; and (10) that views on whether a Guidance Note on FCR specifically for general insurers should be introduced differed.

2006 ◽  
Vol 1 (2) ◽  
pp. 359-392 ◽  
Author(s):  
Y.-M. Shiu ◽  
P. Moles ◽  
A. T. Adams ◽  
C.-C. Chan

ABSTRACTTo gain insight into the use of Dynamic Solvency Testing (DST) and Financial Condition Reporting (FCR), a questionnaire was distributed to Appointed Actuaries in United Kingdom life offices. The response rate of the main survey was 76%. An independent-samples t-test for non-respondent bias was conducted and the results suggest that the respondent sample is representative of the survey population. Results from the 62 firms responding revealed: (1) Scenario testing was the most commonly used DST techniques. (2) Most life offices regularly run less than ten scenarios in scenario testing. (3) Most life offices reported using a five-year forecast period in DST. (4) The two most commonly seen difficulties are: difficulties in communicating complex issues to non-specialists, and how to present extremely adverse scenarios without causing undue concern. (5) Nearly all life offices use FCR. (6) Guidance Note 2 is generally considered acceptable. (7) Compared with the results reported by previous studies, the use of DST techniques is now more common in life offices. (8) There is a significant difference in DST/FCR practices between with-profits and non-profit offices.


2014 ◽  
Vol 30 (2) ◽  
pp. 280-282
Author(s):  
Randolph James Brazier

AbstractSignificant progress has been made with respect to Education for Sustainable Development (ESD) in tertiary education institutions, particularly universities. There are also examples of ways in which sustainability has been incorporated into secondary schools and curricula, but with varying levels of success. ESD that has been incorporated in secondary schools has been shown to engage students and give more context to the curriculum, as well as enable students to develop the critical thinking required to tackle the big issues that face the planet now and into the future.In the United Kingdom, while some aspects of sustainability have been introduced into the secondary school curriculum, they are often merged into other subjects and do not attract as much attention as traditional subjects. Furthermore, sustainability emphasis varies between schools, exam boards and teachers, leading to differing levels of understanding among teenagers. As a result, it could be argued that some young people fail to engage with global issues, which could be contributing towards the lower rates of young people voting in the United Kingdom. Promoting sustainable development, and how engineering can contribute towards it, could also potentially help reverse the decline in engineering student entries at universities, by attracting more interest to the engineering field. Thus, the question is raised as to how sustainability knowledge can be improved among teenagers.The research investigated the scale and quality of ESD at secondary schools in the United Kingdom and recommended a range of solutions to improve sustainability teaching and thinking among teenagers. A range of research tools were used, including a literature and curriculum review, interviews and surveys with teachers and students, and a role-play case study.The research involved a survey being conducted with 475 UK secondary school students aged 12–18 years. The survey was conducted to determine the current level of sustainability understanding of the students, where they learned about it, their preferences relating to issues facing the Earth, and how they think sustainability teaching could be improved. Surveys were purposely open ended, and teachers were instructed not to give prompts prior to the survey, to enable an accurate reflection of students’ knowledge. Results of the surveys varied across age group, school, overall attainment levels of students and exam boards. In general, results showed that while students are interested and knowledgeable about current issues, their level of understanding of sustainability is poor to moderate, and they want it to be taught in more subjects.A gap analysis was then conducted with a curriculum review, survey results and interviews with teachers as inputs. The aim of the analysis was to determine the difference between a desirable level of knowledge and teaching of sustainability, and current practice. Among other things, the analysis indicated that interactive learning would be beneficial, and thus a role play, set in Cambridge and covering environmental, social and economic aspects, was designed and run at two schools in Cambridge. An element of competition was included, as well as a relatively open set of rules, to invoke creative solutions. Observation during the game indicated engaged students. Feedback from students indicated that the game was a fun and useful learning tool. Feedback from teachers was also positive, indicating that interactive teaching tools, like role plays, class debates and field experiments, can be very valuable towards teaching students about the complexities of sustainability.After the role plays, the students were surveyed with identical questions to the initial survey. Results were compared, and sustainability knowledge and the ability to identify environmental issues was seen to increase significantly, far more so than originally expected. This increase in knowledge was highlighted by the students themselves in subsequent feedback sessions.Finally, steps were proposed to improve sustainability education that could be implemented by schools and teachers or at the UK National Curriculum level: •a ‘Sustainability Week’ or sustainability short course to be run at early secondary school, with the aim to give students a holistic overview of sustainability;•aspects of sustainability, including real-world examples, to be included in all subjects and lead on from the short course;•interactive learning tools to be strongly encouraged and made available to all teachers;•training and support to be provided to teachers to improve understanding and ability to teach sustainability;•extra-curricular sustainability activities to be offered at all schools. These steps, along with continual lines of communication and feedback between politicians, the public, industry, students and educators, will ensure that students understand sustainability and develop critical ways of thinking, leading to a more engaged generation.


1886 ◽  
Vol 26 (2) ◽  
pp. 120-132 ◽  
Author(s):  
Cornelius Walford

Globe Insurance Company.—Early in the year 1799 a plan was laid before Mr. Pitt for forming a Chartered Insurance Office, for granting Insurance against Fire, and for Insurance of Lives; for buying and selling Annuities, and for receiving deposits from Friendly Societies, and the Industrial Classes: to be called the Globe or General Insurance Office. It was understood that the plan received that Minister's approval, and a Bill was introduced to Parliament embodying these objects. The measure encountered some opposition. In the first place, the Bank of England objected to the Deposit branch, and the clauses relating thereto were accordingly struck out. Then it was opposed by several of the Insurance Offices; but the Bill finally passed through both Houses, and received the Royal Assent.


2005 ◽  
Vol 68 (10) ◽  
pp. 457-466 ◽  
Author(s):  
G Ted Brown ◽  
Anita Brown ◽  
Carsten Roever

The paediatric curriculum component of entry-level occupational therapy education programmes in the United Kingdom was examined and comparisons were made with the practice literature to determine if students were being taught current best practices. Questionnaires were mailed electronically to the identified paediatric faculty members of the 27 universities with an entry-level occupational therapy education programme in the United Kingdom. Ten completed questionnaires were returned, giving a response rate of 37%. The survey results indicated that paediatrics constituted less than 5% of the total curriculum content of the respondent university programmes. The theory, assessments and treatment approaches taught in the education programmes were similar to those used in clinical practice with children. Some gaps in what was taught to students were apparent, notably in the key paediatric area of visual perceptual dysfunction. The theory, assessments and intervention methods were not always taught as a cohesive stand-alone unit, so gaps occurred in the education programmes. This could lead to graduates using an eclectic approach or using personal conceptual frameworks based on postgraduate learning and work experience.


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