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The following sets out topics for thematic reviews in progress. Accompanying documents and reports are published here.
Summary: Advice given to trustees or sponsors on changes to member benefits.
Status: Reviewing
Actuarial advice is critical when benefit changes are proposed for UK DB pension schemes, as it affects the accrued or future benefits payable to scheme members.
The advice in this area ranges from changes to future benefits (including closure to new accrual) to adjustments to the timing or structure of accrued benefits. The review will look at current practices adopted by actuaries in pension scheme design affecting groups of scheme members. It will also cover the treatment of potential conflicts of interest.
Given the recent period of high inflation, this review is also covering the advice to trustees or sponsors on whether or not to award discretionary pension increases.
Documentation:
Summary: Treatment and quantification of cyber risk by actuaries, including insurance of risks.
Status: Report published
Cyber risk is now an established risk being managed by firms employing actuaries.
The work of actuaries in this field may include quantifying and managing risks from potential cyber events, developing and pricing cyber risk products, and identification of potential latent risk from legacy products not intended to specifically cover cyber events.
This review aims to understand better where and how actuaries are involved in the management of cyber risk both within their firms, and through cyber risk products which are sold to third parties.
Documentation:
The following sets out topics for thematic reviews that have not yet started. A more detailed scope for each review will be developed and confirmed, in consultation with relevant stakeholders, at the initial stage of each exercise.
Target launch: early 2025
Actuaries have a crucial role in considering and communicating the financial risks of climate change, biodiversity, and sustainability.
This review aims to:
Target launch: late 2025
The IFoA has championed this theme in various thought leadership campaigns (for example The Great Risk Transfer). Financial institutions have long had responsibilities in this area, most recently in the UK with the FCA Consumer Duty.
The review seeks to understand the role of actuaries in different organisations in:
Target launch: 2026
The range of advice provided by pensions actuaries is expanding with the introduction of the new funding rules from 2024 and in response to other significant pensions developments and market changes (such as CDC and superfunds). This review looks at advice provided in this new environment.
An enhanced system to promote the quality of actuarial work.
For more information please contact the Actuarial Review Team
Level 2, Exchange Crescent · 7 Conference Square · Edinburgh · EH3 8RA
