Stakeholders Flashcards
Stakeholders
List Stakeholders in Insurance Company
CAPERED PICS Competitors Auditors Pension scheme (Potential/Existing) Employees Regulator Existing/potential Policyholders Directors Potential purchasers Intermediaries Creditors Shareholders
Stakeholders
List Stakeholders in DB Scheme
A TACTS GAME Accountants Taxpayers Auditors Creditors Trustees Sponsors Government Administrators Members Employees
List the External Environment Factors
CREATE GREAT LISTS Commercial Issues Regulation and Legislation Environmental issues Accounting Standards Tax Economic Issues (e.g. inflation/int rates)
Governance Risk management requirements Experience from overseas Adequacy of capital Trends - demographic
Lifestyle Considerations Institutional Structure (mutual/proprietary) Social trends Tech State benefits
3 Types of Advice from Actuary
Indicative - Giving opinion without fully investigating the issue
Factual - Based on research of facts e.g. legislation
Recommendations - Consistent with requirements after doing research/modelling
Potential Conflicts of Interest
RIST
Regulatory authority (notify them if client if acting in way that would prejudice customers)
Independence (should be independent from each side)
Specialists (if their company is specialists they may be working both sides)
TCF (customer/client interests)
Professional jobs require what?
PROFECCIN
Professional Manner Reliability Others views are valid Familiarity with clients and needs Engender trusting - direct and personal relationship Competence Conflicts of Interest - No jargon, clear communication
How do you manage C of I
DRAW-WCW
Disclosure to both parties Records of work assignments Avoid them Whistle blowing if TCF ignored Chinese Walls
3 Parts of Actuarial Control Cycle
Specify Problem
Monitor
Develop Solution
What do Statutory roles involve?
SCALPER
Statement of A/L
Compliance with professional guidance
Assets and Liability valn with legisln
Liability valuation in context of assets
Provision for liabilities
Ensuring premiums/contributions sufficient to meet future commitments considering free assets
Records should be accurate and kept for liability valuation
Expand on 1st part of ACC
ASS RAM SCART
Analyse
Stakeholders (the risks of them)
Set out clearly the problem from each point of view
Risk
Assesment and
Managing (it gives clear assessment of them)
Sub Cycle to determine price of plans Alternate Risk Tranfer - analysis for design of plans transferring risk from one stakeholder to another
Expand on 2nd part of ACC
I DESPAIRS
Interpret results of modelling
Determine proposed solution to problem
Examine if the actuarial models used can be adapted
Select the most appropriate model or new one
Proposal formalise
Alternative solution considerations and effects
Implication of model…
Results on overall problem
Stakeholder implications from results
Expand on the 3rd part of the ACC
F-RUIDE
Feedback into problem spec and soln dev stage
Reccurence of departures from target outcome
Updating the..
Investigation
Departures of the target outcome of models are identified
Experience is monitored and investigation updated for that
What are the principal aims of regulation?
ICE MOP
Inefficiency in markets (correct perceived)
Confidence maintaining in financial system
Efficient market promotion
Maintain confidence in financial system
Orderly rake promotion
Prevent and reduce financial crime
What are the 5 types of regulation?
MUSSV
Mixed regimes Unregulated Self regulation Statutory Voluntary cods of conduct
Advantages of self regulation?
RIC
Rapid response to changes in market needs is possible theoretically
Implemented by people with greatest knowledge of market who have great incentive for optimal cost benefit ratio
Cooperation with self regulator more likely than government bureaucracy
Main problems with self regulator
3CiL
3rd parties views are less likely to be taken into account rather than industry point of view
Closeness of regulator to industry
Inhibit new entrants is possible
Low public confidence even if regime operating efficiently and effectively
Advantages of statutory regulation?
COE
Confidence is higher from public
Open to less abuse than alternatives
Economies of scale may be achieved by grouping activities by function and not type of business
Disadvantages of statutory regulation
CIRCE
Costly
Inflexible
Rules that are unnecessary costly and do t achieve aims may be implemented by outsiders
Crap
Efficiency, attempts to improve market efficiency by government
What ae the 5 type of financial products (contracts)?
DRIP I
Derivatives Reinsurance contracts Investment schemes Pension schemes Insurance contracts
What are the types of needs?
FLEC
Future, relate to future aspirations
Logical, determined by analysis and prioritisation
Emotional, what customer thinks/wants to be necessary rather than needs
Current, has an immediate effect on circumstances
What types of things can benefits be? E.g. When ae they paid
PIFfy
Paid on events predictable/unpredictable in time
Immediate consumption
From accumulation of disposable income and capital
How can we summarise a consumers logical needs?
PUA
Protection eg. Against death
Unknown, accumulation for unknown purpose out of remaining income or capital eg. Take advantage of tax regime
Known, accumulation for known purpose eg. Retirement income
Which people can provide benefits for individuals?
FISE
Financial institutions or other corporations
Individuals
State
Employers or groups of them
What ways can the state play a role in benefit provision, which of them are financial?
REDRESS
Regulate to encourage/compel provision by or on behalf of some of population, F
Educate/require education about importance of providing for the future, F
Direct provision
Regulation of provision from other providers
Encourage provision
Security, ensure promises made are kept to through regulation of bodies providing benefits, F
Some or all of the population provided with benefits, F
