Hostname: page-component-76fb5796d-x4r87 Total loading time: 0 Render date: 2024-04-25T11:21:08.116Z Has data issue: false hasContentIssue false
  • English
  • Français

Management Actions in a With-Profits Fund

Published online by Cambridge University Press:  12 December 2011

P. J. Tuley
P. J. Tuley
Affiliation:
PricewaterhouseCoopers LLP, 6 Hay's Lane, London, SE1 2HB, U.K. Tel: +44 (0) 771-415-3418; E-mail: james.tuley@uk.pwc.com
Get access Rights & Permissions [Opens in a new window]

Abstract

The management of a fund requires a number of decisions as to the fair treatment of policyholders. This paper first considers the difference between the regulatory requirement to treat customers fairly and the longstanding concept within the profession of policyholders' reasonable expectations. The paper then goes on to consider the bearing of risks within the fund, and thus the interactions between the inherited estate and the asset share so often used to guide payouts to customers. Management actions are discussed in normal, and abnormal, times. Lastly, the considerations of distribution of the inherited estate are considered.

Keywords

Treating Customers FairlyPolicyholders' Reasonable ExpectationsInherited EstateDistribution of SurplusManagement ActionsWith-Profits Fund
Type
Sessional meetings: papers and abstracts of discussions
Information
British Actuarial Journal , Volume 15 , Issue 2 , July 2009 , pp. 227 - 257
Copyright
Copyright © Institute and Faculty of Actuaries 2009

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

Brindley, B.J.,(1993). Policyholders' reasonable expectations: Third report of PRE Working Party, presented to CILA Seminar, 22 June,1993.Google Scholar
Campbell, A.C., Grimley, D.C., Pallister, J.K., Stoker, A.M., Walton, A.R., & Yiasoumi, C.A.,(2006). Lessons from closure: an analysis and comparison of the issues facing closed life funds and closed pension schemes. British Actuarial Journal, 12, 639–727.Google Scholar
Dumbreck, N.J., (2007). Address by the President of the Institute of Actuaries: ‘Raising our Game’, 25 September 2006. British Actuarial Journal, 13, 1–21.CrossRefGoogle Scholar
Needleman, P.D., & Roff, T.A.,(1995). Asset shares and their use in the financial management of a with-profits fund. British Actuarial Journal, 1, 603–688.CrossRefGoogle Scholar
Needleman, P.D., & Westall, G., (1991). Demutualisation of a United Kingdom life insurance company, Journal of the Institute of Actuaries, 118, 321–428.Google Scholar
Redington, A.F., (1981). The flock and the sheep and other essays. Journal of the Institute of Actuaries, 108, 361–404.CrossRefGoogle Scholar
Roff, T., (1992). Asset and liability studies on a with-profits fund. Paper presented to the Staple Inn Actuarial Society.Google Scholar
Shelley, M., Arnold, M., & Needleman, P.D.,(2002). A review of policyholders' reasonable expectations. British Actuarial Journal, 8, 705–755.CrossRefGoogle Scholar
Smaller, S.L., Drury, P., George, C.M., O'Shea, J.W., Paul, D.R.L., Pountney, C.V., Rathbone, J.C.A., Simmons, P.R., & Webb, J.H., (1996). Ownership of the inherited estate (the orphan estate). British Actuarial Journal, 2, 1273–1322.Google Scholar
Wilkie, A.D., (1987). An option pricing approach to bonus policy Journal of Institute of Actuaries, 114, 21–90.Google Scholar
Wilkie, A.D., Waters, H.R., & Yang, S., (2003). Reserving, pricing and hedging for policies with guaranteed annuity options. British Actuarial Journal, 9, 263–425.Google Scholar