Welcome to AKG Actuaries & Consultants

When Regulators Muse – Illustrating the Regulatory Risk Component

Together with political / legislative risk, the risk posed by changing regulatory policy and even regulatory inference in terms of potential future action has always been an element of financial strength or financial stability assessment and is increasing in importance. An illustration of the powerful and relatively immediate effect of purely regulatory influence can be seen in the current situation within the life settlements sector. In this respect the ‘mere’ articulation of policy direction around the further restriction of investment propositions incorporating this alternative asset class has led to the possibility of unsustainable redemptions, consequently causing fund suspension and a resultant potential impact on the longer term viability of some providers operating in that market.

Abbreviations, Acronyms & Jargon

Like many industries the financial sector seems to have an enduring addiction to abbreviating technical names and descriptions.

There is a practical reason for this in that it shortens things to often more manageable forms to prevent text and even conversations getting bunged up. However for those less familiar with a topic it can seem to add a further impenetrable layer.

With profits is no exception and, still somewhat opaque and technical, its mechanics aren't made any more understandable by its raft of abbreviations.

To assist where we can AKG has created a Glossary of 'common' with profits and associated abbreviations.

We hope it helps!

Jurisdictional Risk

Jurisdictional Risk has long been a component of provider financial strength assessment. However, it has come more sharply into focus recently. Not least in terms of the Greek position and specifically the ongoing Irish financial crisis and its implications for insurers and other financial services companies operating from Dublin. The situation is not, though, black and white in terms of increasing risk, with many companies operating in distinctly different markets from the Irish domestic one and holding significant (parental and sibling) capital elsewhere. What is certain, however, is that the scrutiny within ratings assessment and elsewhere, regarding jurisdictional risk is only set to  continue and even increase.