31 August 2022
The Institute and Faculty of Actuaries (IFoA) has today (31 August 2022) issued a Risk Alert to all its members on the impact of high inflation. It aims to help bring to the attention of members how current significantly high levels of inflation may affect actuarial practice. It is hoped that the Risk Alert will provide a useful reminder of some of the key issues.
The Risk alert has a particular focus on actuaries working in general and life insurance and pensions. But it states that all members, regardless of practice area, should consider and adjust their work by taking appropriate consideration of:
Neil Buckley, IFoA Regulatory Board Chair, said:
“The actuarial profession is a key part of the global financial sector which has not operated in a high inflation environment, such as the current one, for many years. We know that members will be aware of the uncertain economic environment and rapidly changing market conditions. By issuing this Risk Alert, we are aiming to bring this issue to the attention of the profession and support members by alerting them to some areas of work which need careful consideration.
“As a royal chartered professional body and regulator, it is our role to highlight external factors that will have significant impact on actuarial practice. It is crucial that we ensure that both the IFoA and its members are acting in the public interest.”
~ENDS~
Contact
Sonia Sequeira, Media Relations Manager, IFoA
Tel: 07525 592 198
Email: sonia.sequeira@actuaries.org.uk
Notes to editor
1. Risk Alert: The impact of high inflation on actuarial practice. The Institute and Faculty of Actuaries. August 2022.
About the Institute and Faculty of Actuaries
The Institute and Faculty of Actuaries (IFoA) is a royal chartered, not-for-profit, professional body.
Research undertaken by the IFoA is not commercial. As a learned society, research helps us to fulfil our royal charter requirements to further actuarial science and serve the public interest.
Actuaries provide commercial, financial and prudential advice on the management of a business’s assets and liabilities, especially where long term management and planning are critical to the success of any business venture. They also advise individuals, and advise on social and public interest issues.
Members of the IFoA have a statutory role in the supervision of pension funds and life insurance companies. They also have a statutory role to provide actuarial opinions for managing agents at Lloyd’s of London.
Members are governed by the Institute and Faculty of Actuaries. A rigorous examination system is supported by a programme of continuing professional development and a professional code of conduct supports high standards reflecting the significant role of actuaries in society.
The IFoA is available to provide independent expert comment to the media on a range of actuarial-related issues, including COVID-19 and its long term consequences, mortality, pensions, life and general insurance, health and care, finance and investment, climate change and sustainability, systems thinking, uncertainty and judgement, and risk management.
For all media queries please contact Sonia Sequeira, Media Relations Manager