JFAR Publications

Risk Perspective

The JFAR sets out its collective view on current risks to high quality actuarial work in its Risk Perspective. The Risk Perspective is intended to raise awareness of the risks to and the importance of high-quality actuarial work in mitigating the risks to the public interest.

Through the JFAR’s ongoing activities and in response to hotspots identified in the Risk Perspective reports, the JFAR has undertaken several thematic reviews. These findings from the reviews may be reported in separate reports, in observations included within the Risk Perspective update or through other activities.

JFAR Thematic Reviews

  • In June 2018, the JFAR facilitated a series of roundtables for Actuarial Function Holders and Non‑Executive Directors as forum to develop a common understanding of the role of the Actuarial Function Report (AFR) and to identify hints and tips for ensuring an efficient production of the AFR to support a purposeful discussion with the Board.
  • During 2017, the JFAR undertook two thematic reviews - “Impact of low interest rates on insurers and pension schemes” and “The role of the actuary in with-profits life assurance” - the observations are contained within the Risk Perspective: 2017 Update

  • From the risks identified in the July 2015 feedback statement three areas were chosen for thematic reviews:
  • Group think;
  • DB to DC transfers following the introduction of the pensions freedoms;
  • “Review of General Insurance Internal Reserving Reports” The observations from the review of a sample of reports were contained in the Risk Perspective: 2016 update.

JFAR The Science of Climate Change

The Joint Forum on Actuarial Regulation’s (JFAR) The Science of Climate Change is an extensive report on understanding the science of climate change. 
 
The first of its kind report, which is a unique collaboration between regulators with an interest in actuarial work (FRC, IFoA, FCA, TPR, PRA), highlights the urgency of climate change and the role actuaries have to play in mitigating its risks.
 
The report is designed to address gaps in actuaries’ knowledge of the science behind climate change, giving actuaries confidence to increase their contributions on this important topic. It includes analysis of:
 
  • Global temperature changes and the impact of mass human migration, rising sea levels and its impact on the UK and Europe specifically and implications for food security and human mortality.
  • The interconnectedness of biodiversity and climate change.
  • Tipping points - a critical threshold beyond which a system reorganises abruptly and irreversibly. Many of these tipping points such as effects in the Arctic and Antarctic regions will be familiar, but there are other tipping points such as the effects on ocean circulation, permafrost thaw, and forest dieback, which are less well-known but equally important.
  • Efforts to mitigate climate change, the concepts of carbon budgets and net zero.