Chapter 2: Stakeholders Flashcards Preview

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Flashcards in Chapter 2: Stakeholders Deck (15)
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1
Q

Stakeholders involved in a pensions scheme

A
  • members
  • members’ dependents
  • trustees
  • shareholders of the sponsor
  • directors of the sponsor
  • employees of the sponsor
  • auditors
  • regulators
  • the government
  • administrators
  • investment fund managers
  • creditors
2
Q

Interests of policyholders

A

Protection against death, sickness, unemployment and protection of property, investment and savings.

3
Q

Interests of the board of directors of an insurance company

A
  • Pricing
  • Provisioning
  • Ensuring benefits are paid
  • Managing assets and liabilities
  • Meeting legislation
  • Obtaining adequate reinsurance
  • Corporate governance
4
Q

Interests of shareholders

A

Obtaining a return commensurate with the level of risk taken.

5
Q

Interest of creditors

A

Ensuring monies owed will be paid.

6
Q

Interests of auditors

A

Assessment of long-term liabilities

7
Q

Interests of regulators

A

Ensuring regulatory requirements are met.

8
Q

Interests of the members of pension schemes

A

Provision of benefits on

  • death
  • retirement
  • illness
  • withdrawal
9
Q

Interests of trustees

A
  • Paying benefits when they fall due
  • managing assets
  • maintaining solvency
10
Q

Interests of sponsors

A
  • Provision of retirement and protection benefits to meet the needs of members
  • Controlling costs
  • Meeting legislation
11
Q

Interests of employers

A
  • Protection against losing employees
  • Provision of benefits to attract and retain staff
  • Protection of assets
  • Meeting legislation
  • Controlling costs
  • Raising, quantifying and investing capital
12
Q

Interests of employees

A
  • Provision of retirement and protection benefits

- Savings

13
Q

Interests of the government

A
  • Setting legislation and monitoring compliance with it

- Funding state benefits and monitoring the funding

14
Q

How may appetite for risk vary by stakeholder?

A

The risk appetite will vary by the class of stakeholder
There will will be variation within a class of stakeholders.
The appetite will reflect existing risk exposure and also cultural factors.
Different risk appetites lead to a market in risk transfer

15
Q

What are the 3 different types of advice an actuary can be asked to give?

A
  • factual
  • indicative
  • recommendations.

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