Topical issues list (updated November 2023)

The following article in The Actuary might be of interest (proposed easing of the solvency capital regime within the UK now that it is no longer part of the EU and hence subject to strict Solvency II requirements):

https://www.theactuary.com/news/202...utm_source=Adestra&utm_medium=email&utm_term=

 

Hi
We wouldn't want to suggest looking at a particular link. Rather that you consider reading around these topics.

Thanks
Em

 

Yes, both an expansion of the potential market for microinsurance (which targets those on low incomes) but also an increase in those on middle incomes who would look to purchase standard insurance products.

 

Topical issues update for 2023 exams:
Hi

For the SA level subjects, it is important to keep abreast of current developments in the insurance industry. Although you shouldn't be tested on factual knowledge outside of the Core Reading, it is possible that some exam questions may cover topical issues that are not covered explicitly by the Course Notes.

Below is a list of topics you may wish to consider as a student studying SA2. The attached document expands briefly on the following topics:
· High inflation environment
· Implications of global pandemics on the life insurance industry
· Implications of Brexit, eg on Solvency II, EU gender directive
· IFRS 17, eg implementation issues
· The latest development of the International Capital Standards (ICS). Further information can also be found at: https://www.bis.org/fsi/fsisummaries/ics_overview.pdf)
· Climate change and the impact on insurers
· Data science and analytics
· Cyber risk

Further topics you may also want to consider are:
· Use of AI in life insurance
· The expansion of the global insurance market, eg within developing economies
· Changing pensions environment, eg reducing tax advantages
· Infrastructure investment and sustainability.

Hope you find this useful.

 

Topical issues update for 2024 exams

Please see below a list of topics which you may wish to look further into.

Please note, this is not a exhaustive list and is just a suggestion of topics to help with further understanding of the life insurance market, which may help when answering questions from an SA2 exam scenario, particularly around practical and operational issues.

Please do feel free to post any other suggestions.

• Climate stress and scenario testing

• AI and its use in life insurance

• Sustainable / ESG investment (factors to consider)

• Increasing interest rates and high inflation environment and impacts on pricing

• Life insurance industry’s focus on liquidity risk and liquidity risk management following economic uncertainty

• Mortality rates – impacts from pandemic and technological advances

• UK’s Solvency II reform and impacts on life insurance companies (Bank of England website is a useful reference: Prudential regulation | Bank of England

• IFRS 17 latest and impacts on life insurance companies (including operational impacts)

• Use of big data within the life insurance industry

• Further developments within the microinsurance market

• Increased regulatory focus on consumer duty, eg by the FCA (UK), and its relationship with TCF requirements (https://www.fca.org.uk/firms/consumer-duty)

• IAIS Insurance Capital Standard (ICS) development (https://www.bis.org/fsi/fsisummaries/ics_overview.pdf)