Recent changes made to the UK Corporate Governance Code require UK firms to report new or enhanced narrative information concerning their principal risks, their risk management processes and their future viability. This paper analyses whether the level and nature of voluntary compliance with these new requirements is consistent with alternative economic and political visibility incentives. We analyse relevant sections of financial reports produced by industry-matched samples of large-, mid- and small-cap UK-listed firms during the transitional 2013–2014 financial reporting years. Both specific and generic readability attributes of the reports are measured. We find that virtually no firm in our sample has provided any viability statement. Empirical analysis of disclosures concerning principal risk assessment and review processes appear to be primarily motivated by political visibility reasons. Examples of particularly good and cases of poor corporate risk reporting practices are also discussed. Possible implications for the actuarial profession are discussed.

The UK Pension Protection Fund (PPF) was established in April 2005 to protect the pensions of members of UK private sector defined benefit pension schemes which have insufficient assets and whose corporate sponsor fails. The Fund takes over the pension scheme assets and assumes responsibility for the payment of compensation to the former members of the scheme. The PPF is funded by a levy on the population of eligible schemes. This paper discusses the application of Enterprise Risk Management principles and techniques to the unique situation of the PPF. The elements of the financial management of the Fund have been developed by reference to practice within proprietary insurance institutions and within pension funds. The paper will be of interest and, we hope, of some value to students, researchers and analysts and also to the PPF's own stakeholder groups that have a stake in an effective pension protection regime.

The theory of Probabilities has been characterized by Laplace, one of those who have contributed most largely to its advance,—as “good sense reduced to a system of calculation;” and such, no doubt, it is. But it must be especially noticed that there is hardly any subject to which thought can be applied, which calls for so continuous an application of that excellent quality, or in which it i s easier to make mistakes from simple want of circumspection. And, moreover, that its reduction to calculation is attended with difficulties of a very peculiar nature, such as occur in no other application of mathematical analysis to practical subjects, arising out of the great magnitudes of the numbers concerned, which defeat the ordinary processes of arithmetical and logarithmic calculation, by exhausting the patience of the computer, and require special methods of approximate evaluation to bring them within the compass of human industry. These methods form a conspicuous feature of the general subject, and have furnished scope for very extraordinary displays of mathematical talent and invention. That very large numbers will inevitably be concerned in questions where numerous and independent contingencies may take place, and in any order or mode of combination, will be apparent to any one who considers the astonishing fecundity of such combinations numerically estimated, when the combining elements are many. For example, the number of possible “hands” at whist (regard being had to the trump) is 1,270,027,119,200.

An important part of the work of an actuary consists in making and testing graduations of mortality statistics. Much space has been devoted in the Journal to methods of graduation, but for many years, apart from the recent paper by H. L. Seal (J.I.A. Vol. lxxi, p. 5), little attention seems to have been paid to the testing of graduations. Although statistical methods are usually employed in making the tests, consideration has not often been given to ascertaining whether mortality statistics fulfil the conditions necessary for the tests to be strictly applicable. It is the purpose of this paper to set out some investigations into this question. Such matters may be thought to be of only theoretical interest, since, in practice, the tests work satisfactorily as a general rule; but actuaries should not employ their tools in a mechanical fashion without realizing fully their limitations and implications, and the question therefore takes on a practical as well as a theoretical aspect. It is hoped that this paper will show how far the tests of a graduation are satisfactory in theory and practice and indicate where modifications are required.

The general impression gained from a broad review of the earlier activities of the Institute is that the actuary of those days appears to have been less concerned with the question of the investment of funds than the actuary is to-day. There are several factors which lend support to this impression. First, in those earlier years the actuary, probably being preoccupied with the purely actuarial side of life assurance, friendly society and pension fund business, may have been content to leave the matter of investment to others and to accept their advice regarding the rates of interest to be assumed in his actuarial calculations. Secondly, both the field of investment and the volume of funds requiring investment being very much smaller, the problem may not have appeared to justify much greater attention than was paid to it. Perhaps the most likely reason, however, was that the practice of investment may have been regarded more as an art than a science and as a subject therefore which did not readily lend itself to an actuarial approach.

The paper reviews the mathematical models of transmission of infection that have been put forward for representing the spread of HIV infection and AIDS. It describes and compares the main models that have been proposed and thereby provides some guidance on how such models might be constructed and utilised. There is also discussion of the importance of constructing such mathematical models of transmission of infection which further our understanding of the transmission dynamics of the epidemic and help to identify important epidemiological parameters and their likely influence on the epidemic's course.

In considering the origin and development of the friendly society system, it is necessary to recognize the twofold purpose that these institutions have fulfilled. In the view of the actuary they are merely associations for the mutual assurance of certain benefits, generally in the case of the sickness or death of any of the members. This, however, represents only one side, and that by far the most recent, of the work of these institutions. A not less prominent and much older feature is to be found in the opportunities for social intercourse, companionship, and mutual help, which such associations naturally afford—wants common to man in every state of society, and as old as civilization itself. Hence, from the earliest times, small communities have existed, drawn together by the common interests, tastes, or pursuits of the members, such communities being originally purely social in character, subsequently charitable and mutually protective, and only in recent times financial.

Schedule 1 of the Insurance Companies Act 1982 defines Permanent Health Insurance (PHI) as a class of Long Term insurance business being “… contracts of insurance providing specified benefits against risks of persons becoming incapacitated in consequence of sustaining injury as a result of an accident or of an accident of a specified class or of sickness or infirmity being contracts that:

(a) are expressed to be in effect for a period of not less than five years, or until the normal retirement age for the persons concerned or without limit of time, and

(b) either are not expressed to be terminable by the insurer, or are expressed be so terminable only in special circumstances mentioned in the contract.”

The fundamental features of PHI as developed in the U.K. are therefore:

(a) It provides specified benefits in the event of ill health.

(b) Cover may not be cancelled by the insurer (except under special circumstances described in the policy document) and hence the insurance is ‘permanent’.

The records of the Colony of Victoria afford a field for scientific enquiry in many directions, and questions of interest to the physician, the economist, or the actuary, are to be found therein. Its separate existence is but of thirty years' duration, as it was on 1 July 1851 that the Queen's proclamation was issued erecting it into a separate colony, to be called after her Majesty's name.

Many social and economic questions concerning the colony have already been considered; and no longer ago than 1879, the present Government Statist, Mr. Henry Heylyn Hayter, read an exhaustive paper before the Statistical Society. The object of the present enquiry, however, has, so far as I am aware, not received previous attention; and as it is one of strictly professional and scientific interest, it is hoped that it may be appropriately considered by the members of this Institute.

That object is to deduce from the registered vital statistics of the colony a mortality table exhibiting the actual rate of mortality which has been experienced ; and to compare that table with other standard tables, in order to note the effect of the different conditions of life prevalent in Victoria. For it is to be expected that a colony, whose geographical extent is only slightly inferior to that of Great Britain, whose difference of temperature between summer and winter varies less than that of Lisbon or the favoured Riviera, and whose population is far greater than any other Australasian colony, would possess special characteristics calculated to mark their effect on the rate of mortality of the people.

In the course of preparing a paper dealing with statistics relating to fire insurance (Beard, 1957) the need arose to find numerical values of the confluent hypergeometric function for parameter values well outside any tabulated range, and this note is concerned with various approximations investigated in the course of these experiments.

The two-fold purpose of this paper is:

(i) To hypothesize the existence of a Basic Curve of Deaths, a curve to which it is suggested all curves of deaths are, as it were, striving to attain—the ‘idea’ of a curve of deaths, almost in a Platonic sense, a curve applicable not only to humanity, but equally to all forms of life.

(ii) To seek a representation of that curve by a function containing as few parameters as possible, on the principle that while there are other functions which fit the observations more exactly, we here prefer a simple function which fits them well enough.

I cannot recall that national fuel policy has ever previously been the subject of a paper to the Institute, though it is becoming quite usual for the Institute to address itself to subjects outside the traditional actuarial fields. Nearly all the Alfred Watson Memorial Lectures, for example, have been on outside subjects and two of these, ‘Some thoughts on economic forecasting’ by Sir Alexander Cairncross (as he is now) and ‘Problems in forecasting in the chemical industry’ by Sir Paul Chambers, have certain links with the subject of this paper.

1. The finances of life offices have been discussed by actuaries for more than a century and it seems entirely safe to predict that these discussions will continue into the future, with no diminution either of enthusiasm or of topics of general interest. The developing nature of many of these topics needs no emphasis, either from the viewpoint of changing external circumstances, or of the length of time which has elapsed since the first mention; for example, bonus reserve valuations were referred to in an Institute discussion nearly a century ago, investments in ordinary shares were mentioned before the close of the last century and variable assurances were touched upon over 30 years ago.

1.1 Medical expenses insurance, as we know it today, has been available in the United Kingdom since the late 1940s. In recent years the market has increased significantly to a point where we estimate approximately 6m people are now covered by medical expenses insurance, which represents over 10% of the population. Furthermore, there is evidence that the market is continuing to expand.