RGA Shows Strong Support, Presence at ICA in Berlin
2018 was most visited actuarial congress ever
With 2,500 participants, 250 speakers and 200 lectures, this year’s International Congress of Actuaries (ICA) in Berlin was a resounding success, aided by RGA’s Platinum Sponsorship. In addition, several RGA subject matter experts spoke at the conference, including Olav Cuiper, Executive Vice President, Head of EMEA.
The conference, which has been taking place every four years since 1895, is held in a different city each time. Actuaries, scientists and practitioners from around the world come to share relevant, leading-edge ideas, research results and insurance insights. The host country’s local actuarial association organizes the event, and Klaus Mattar, RGA Managing Director, Germany and Central Eastern Europe, served on the 2018 organizational committee. In addition, RGA serviced a booth in the exhibition area of the ICA and sponsored all coffee breaks throughout the five-day event.
Insurance and reinsurance outlook 2018 and beyond
The panel discussion with Olav Cuiper entitled “The Future of Insurance” was particularly well received by visitors. One focus was the controversial question of whether we will still need reinsurance companies in the future, and what the insurers in the decades to come might look like. Olav Cuiper mentioned that insurance is, and will remain, meaningful, because it’s all about the protection of people and their families. He added, however, “What keeps me awake at night is the speed of change of the world around us. We tell ourselves that our market isn’t ready for disruption because we operate in a highly regulated environment. I personally think that is a big mistake.” As a conclusion, he said that if insurers don’t take the initiative, disruption will eventually lever out the insurance collective.
Another issue tackled in the panel discussion was the use of big data: “Slowly but surely the raw power of data is becoming clear to everyone,” Olav Cuiper said. “And if insurers don’t embrace this, a huge anti-selection will be a consequence, especially when there are interpretation services that can take the data and provide insights to customers.” The use of data will be a very important trend and the player that is the slowest to pick it up, organise it properly, and use it will draw the shortest straw, according to the panel members.
Peter Banthorpe gives a presentation on genetics and morbidity/mortality risk.
Peter Nielsen gives a presentation on disability insurance.
Olav Cuiper participates in a panel discussion on the future of insurance.
Neil Parkin gives his talk, titled "Friends with Benefits."
Paul Sauvé gives his presentation on the impact of RBC regimes on reinsurance.
Kay Ying Shong gives a presentation on prenatal insurance.
From biometry issues to financial and regulatory challenges
Five other RGA speakers addressed relevant topics such as disability insurance (Peter Nielsen, Chief Actuary, Germany and CEE); the concept of social connection and its impact on mortality and morbidity (Neil Parkin, Group Risk Business Development Actuary, South Africa). One of the highlights was the presentation on the importance of genetics on mortality and morbidity risk by Peter Banthorpe, Head of Global Research and Data Analytics, who shared the results of recent ground-breaking research into polygenic risk scores conducted by RGA together with Kings College, London. The research demonstrated how adding genetic data, in the form of polygenic risk scores, to conventional rating factors could significantly change predictions of disease risk. Peter Banthorpe concluded with a discussion of the impact of polygenic scores on critical illness and life insurance underwriting.
Additionally, Kay Ying Shong, Director, Actuarial Product Development, RGA Southeast Asia Markets, reported on prenatal insurance of the unborn in Southeast Asia, including the target customers, the typical coverage benefits for expectant mothers and the unborn and newly-born, as well as the underwriting considerations.
Paul Sauvé, a Senior Vice President representing RGA’s Global Financial Solutions (GFS) line, also spoke about risk-based capital regimes such as Solvency II and the Swiss Solvency Test. He identified the growing significance of reinsurance as a capital management tool in those systems, and explained some of the tensions observed in the EU related to needs such as equivalence, basis risk haircuts, and sufficient risk transfer.
As a member of the ICA organizing committee and a representative of RGA, Klaus Mattar was satisfied with the success of the event and with the involvement of the company. “RGA is always committed to supporting organizations and events that advance the art and science of managing risk,” he says. “ICA is the largest international meeting of actuaries, and RGA, as one of the largest employers of actuaries, has a genuine interest in developing this profession further.”