Life as an Actuary Matthew Mikola 14/3/2012 Life as an Actuary 14.03.12

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<ul><li> Slide 1 </li> <li> Life as an Actuary Matthew Mikola 14/3/2012 Life as an Actuary 14.03.12 </li> <li> Slide 2 </li> <li> Agenda What is an Actuary? Areas Actuaries work in The Exams! My Roles at Aviva Protection Pricing With Profits Reporting Solvency II Project Opportunities at Aviva Q &amp; A Life as an Actuary 14.03.12 </li> <li> Slide 3 </li> <li> What is an Actuary? Future uncertainty or risk Business and Statistical knowledge Models to value the financial impact Problems they help solve: Risk management Investment Strategy Business Problems </li> <li> Slide 4 </li> <li> Life as an Actuary 14.03.12 Areas Actuaries work in Insurance - Life - General Pensions Consultancy Investment Government Contractor Any area with uncertainty and risk </li> <li> Slide 5 </li> <li> Life as an Actuary 14.03.12 The Exams! 9 Core Technical: Cashflows Accountancy 2 * Statistics Mortality Life Assurance Economics Options and Derivative pricing (Black Scholes) Business Awareness 3 Core Application - general, modelling, communication 3 Specialist </li> <li> Slide 6 </li> <li> My Roles at Aviva Protection Pricing Life as an Actuary 14.03.12 </li> <li> Slide 7 </li> <li> My Roles at Aviva Protection Pricing Protection = financial security to dependents upon death or illness Pricing = calculate the premium to charge the policyholder Balance: o Profit o Competitiveness Products: o Term Assurance =&gt; loan/mortgage cover o Whole of life =&gt; inheritance/funeral expenses o Critical Illness =&gt; pay medical expenses/loans </li> <li> Slide 8 </li> <li> Life as an Actuary 14.03.12 Protection Pricing - Day to Day Factors: Age Sex Smoker status Each combination known Marriage status as a "Cell" Term Benefit amount </li> <li> Slide 9 </li> <li> Life as an Actuary 14.03.12 Protection Pricing - Day to Day 1.Profit Testing Sample subset tested Reflect actual number of policies sold by scaling Set premiums for each "Cell" Choose model assumptions Analyse expected profit Sensitivity test </li> <li> Slide 10 </li> <li> Life as an Actuary 14.03.12 Protection Pricing - Day to Day 2.Competitor Matching Find out premiums charged by other companies See where we rank How much premiums differ by If we beat their premium, how it affects profitability </li> <li> Slide 11 </li> <li> My Roles at Aviva With Profits Reporting Life as an Actuary 14.03.12 </li> <li> Slide 12 </li> <li> My Roles at Aviva With Profits Reporting With Profits = Savings product where the benefits equal: o guaranteed minimum amount o increased by discretionary bonuses Reporting = Actual profit to shareholders and market Reserves to regulator Reserves = money held to meet benefits indication of financial security </li> <li> Slide 13 </li> <li> Life as an Actuary 14.03.12 With Profits Reporting - Day to Day Reporting Period Update the assumptions Obtain results Analysis Prepare reports </li> <li> Slide 14 </li> <li> Life as an Actuary 14.03.12 With Profits Reporting - Day to Day Other Times Improve the model Add new products Improve processes </li> <li> Slide 15 </li> <li> My Roles at Aviva Solvency II Project Life as an Actuary 14.03.12 </li> <li> Slide 16 </li> <li> My Roles at Aviva Solvency II Project New regulatory framework for: Measuring risk taken on Measuring financial security Enough capital to support the business Benefits of Solvency II: Boost consumer protection and confidence Reward good risk management Improve transparency of information Impacts many areas of the business </li> <li> Slide 17 </li> <li> Life as an Actuary 14.03.12 Solvency II Project - Day to Day Initially Analyse impact to existing models/processes Writing development papers Development &amp; Testing of New Asset Model More accurately calculate the value of our assets Asses impact due to market stress tests </li> <li> Slide 18 </li> <li> Life as an Actuary 14.03.12 Opportunities at Aviva Summer Internship Penultimate year students 2 months paid Send CV to: richard.kingston@aviva.co.uk Graduate Roles www.aviva.co.uk/graduates </li> <li> Slide 19 </li> <li> Summary What is an Actuary? Areas Actuaries work in The Exams! My Roles at Aviva Protection Pricing With Profits Reporting Solvency II Project Opportunities at Aviva Q &amp; A Life as an Actuary 14.03.12 </li> <li> Slide 20 </li> <li> Aviva plc 2012 Any Questions? matthew.p.mikola@aviva.co.uk Life as an Actuary 14.03.12 </li> </ul>