EAA Web Session: Inflation Risk Management
Announcement from the EAA organiser:
Over the last five years many countries have seen substantial swings in inflation. This volatility, following an extended period of relative stability, has reminded actuaries that unexpected changes in inflation rates can have big implications for organisations that they work for.
Insurers and pension funds wanting to manage inflation risks will typically find it beneficial to approach this task from a range of perspectives. They will likely want to explore recent as well as more historic inflation experiences and the roles played by different actors as well as by broader social and economic trends. They may also want to draw on stylised descriptions of how inflation might be expected to impact assets and liabilities. They then should bear in mind that actual behaviours of many assets and liabilities in past inflationary and deflationary periods have often only loosely corresponded to such stylised descriptions.
Risk management is, of course, ultimately more about seeking to optimise what happens in the future rather than about explaining what went on in the past. So, in this web session we will introduce the contexts referred to above and we will also explore approaches that can be used by insurers to model, manage and hedge risks arising from unexpected changes in inflation rates. In some cases, the inflationary link may be explicit (e.g. if claims include direct inflation indexation clauses). In other cases, the link may be less precise or more indirect, but these risks may still need highlighting and exploring if risk management is to be successful.#
Click here to make a reservation. Your early-bird registration fee is € 120.00 (net) / € 142.80 (incl. VAT, if applicable) for bookings by 29 October 2024. After this date, the fee will be € 170.00 (net) / € 202.30 (incl. VAT, if applicable).
Click here. (Note: timing via that link is in CEST [Central European Summer Time].)
Malcolm Kemp is a Fellow of the Institute and Faculty of Actuaries, a Chartered Enterprise Risk Actuary, Managing Director of Nematrian and a Visiting Lecturer at Imperial College Business School, London where he teaches a course in Enterprise Risk Management. He holds a first-class honours degree in Mathematics from Cambridge University. He has written three books on quantitative finance.
From 1996 to 2009, Malcolm was an Executive Director and Head of Quantitative Research at Threadneedle Asset Management. This role included responsibility for Threadneedle’s derivatives, risk management, performance measurement, liability driven investment and other quantitative investment activities. Malcolm was also chief actuary of Threadneedle Pensions Limited until 2021. From 2017 to 2021 Malcolm was an Associate in Barnett Waddingham’s life insurance consulting practice. From 2015 to 2023 he was a member of the Advisory Scientific Committee of the European Systemic Risk Board. Prior to working at Threadneedle, Malcolm was a partner at Bacon & Woodrow in their investment consultancy practice.