Another actuary writes, re our March 31 post.
Re your 31/3 post. I do take the point but what about your own bias? What makes you think that the guy in the picture isn’t in fact an actuary? Is it the snappy dress sense or….?
Fixed that for you.
Anonymous emails
We do our best to respond to anonymous emails (where appropriate) via the blog. However sometimes it is easier or better to respond directly, particularly when we need clarification in some point.
So if you really want to remain anonymous, it is easy to set up a gmail account for that purpose, to which we can respond. Or just use your own email address – we naturally respect all confidentiality where requested, or implied.
Thanks
Are UK banks really as strong as the Bank says?
Youtube this morning.
With the economy undergoing the biggest downturn since 1709, it is natural to ask if UK banks are strong enough to withstand this downturn and still function normally. The mood music coming from the Bank of England has certainly been reassuring. But are UK banks really as strong as the Bank says?
The answer, sadly, is no. In this video, Professor Syed Kamall (IEA Academic and Research Director) chairs a discussion with Dr Dean Buckner and Professor Kevin Dowd, who authored a recent IEA Discussion Paper “How Strong are British Banks: and can they pass the Covid Stress Test”.
Professor Dowd and Dr Buckner argue that Banks are more fragile now than they were going into the last crisis. The Bank of England’s failure to ensure the resilience of the banking system suggests a need for radical reform that does away with the regulator.
Coronavirus to cost insurers more than $200bn
By Oliver Ralph, FT today.
Just over half of the $203bn estimated loss relates to claims, with insurers expecting to pay out for events cancellation, business interruption and trade credit cover. Another $96bn comes from investment losses, where turmoil in financial markets has hit the assets insurers hold to fund claims. “This is a loss of a magnitude that none of us have seen in our lifetime,” said John Neal, Lloyd’s chief executive.
But that is general insurance.
Continue reading “Coronavirus to cost insurers more than $200bn”
Watchdog confirms it is looking into ERMs
In This is money today.
Homeowners told to take equity release could have been given the wrong advice it has emerged, as the City watchdog confirmed it is looking at mortgage lending practices in the later life market. This is Money can reveal exclusively that the Financial Conduct Authority has been engaging with firms to help it better understand the market to reduce any potential harms.
Hard to say whether the review is connected with the issues we have raised here and elsewhere, though.
PRA – equity release part X
They say ‘part 2’ but I lost count. Anyway, the links are all here, we will comment in due course.
Actuarial boot camp
Brexit break
This was meant to have happened a few weeks ago, but we were caught up with events at Staple Inn.
Partly a Brexit inspired break, but mostly Kevin and I need to complete work on a fresh ERM paper, taking in our more recent work on calibrating the deferment rate, volatility etc., and the work of others on the same theme, such as by Radu Tunaru, and now Andrew Smith (see yesterday’s diary announcement).
It is likely we will be presenting these results at the London School of Economics, details to follow.
We will be back in mid-April, until then farewell.
Video is out
The video of the 28 February Staple Inn discussion on the No Negative Equity Guarantee is here.
I am sure we will be commenting later.
Welcome to Eumaeus!
Nothing to see right now, but this is something about Eumaeus and what it is here for. It’s pronounced ‘You-my-us’.
Following the Dowd report ‘Asleep at the Wheel’, our first post will be on August 8th, lifting a bit more of the lid on the strange world of insurance valuation.
We hope to see you again soon.