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Artificial intelligence and pensions: Cyber risk

This is the third in a series that takes a deeper look at areas relevant to U.K. pension schemes and how artificial intelligence (AI) may have a significant influence or impact. Cyber risk is an increasingly important issue in the pensions sector, and its significance is only expected to grow. Earlier this year, a cyber breach pushed Australian superannuation schemes into the spotlight; five pension providers were hit with a series of cyber-attacks, with members of one fund collectively losing $500,000 in retirement savings.
Posted on Tuesday May 20

The four dimensions of reserving uncertainty

This article presents a framework that I have found helpful in working with general insurance firms to better manage their reserving risks. The four dimensions are. The ultimate view of reserving risk. The one-year view of reserving risk. The range of reasonable best estimate reserves. The contribution of claims handling to reserving risk. In this article I will cover the first three dimensions and next time we’ll do a deep dive of the fourth dimension, which is typically the least well understood.
Posted on Monday May 19

Strategies for defined contribution pension arrangements

Three areas of focus that companies can build into their strategy to help their defined contribution arrangements stand up to adverse conditions. Turbulent economic conditions and how employees respond to them can create sustained financial vulnerabilities for organizations with defined contribution (DC) retirement plans. Professional management of pensions can help employers overcome these challenges, supporting effective workforce planning and protecting the value of the investment they are making in their people through plan contributions.
Posted on Friday May 16

Assessing the benefits of run on

On this panel, Ian Mills, Partner and Head of DB Endgame Strategy at Barnett Waddingham, and the other experts discuss: how run-on strategies could work in practice; key considerations for trustees and sponsors; the potential ways in which sponsors could extract the surplus; the benefits and drawbacks of such strategies compared to insurance-based solutions such as buy-in and buyout; legal and regulatory hurdles to a run-on approach; and investment strategies schemes adopting a run-on could utilise.
Posted on Thursday May 15

What we can learn from wave of UK cyber attacks

Recent high profile cyber attacks affecting UK organisations serve as a stark reminder that no business is immune from disruption. While having strong governance and regular risk reviews is essential, the reality of managing a live cyber incident is rarely as straightforward as the plans on paper. From communication challenges to operational pressures, incidents like these test organisations at every level.
Posted on Thursday May 15

FCA strips back insurance rulebook

The UK’s world leading insurance market could benefit from simpler, more straightforward rules, under proposals published by the Financial Conduct Authority (FCA). The regulator plans to strip outdated or duplicated requirements from its insurance rulebook, having asked what improvements it could make. The changes could support lower costs and wider access for the businesses and consumers who rely on insurance to manage risk, while maintaining appropriate levels of protection.
Posted on Wednesday May 14

How behavioural bias is impacting retirement outcomes

Recent updates from the Pensions Regulator (TPR) and the Financial Conduct Authority (FCA) have pointed to a need for all industry stakeholders examine how they approach decision making and value judgements, to improve outcomes for pension savers. The FCA has identified the industry’s relationship with risk; “Now is the time to look again at our collective attitude to risk. Too often the focus has been on the risks of a decision taken rather than the lost opportunity of taking none” said Ashley Alder, Chair of the Financial Services Authority (FCA) in the FCA’s 5-year strategy paper.
Posted on Tuesday May 13

Bridging the gap between risk and insurance

This article explores the impact of economic pressure on insurance buying strategies and how to achieve cost savings without compromising risk coverage. Economic pressure: A catalyst for change. In times of economic uncertainty and rising costs, many organisations face significant financial pressure to minimise or reduce expenditure to maintain profitability. However, when it comes to insurance—which safeguards against various risks—how can organisations make informed decisions regarding their spending?
Posted on Monday May 12

The true costs of LAs devastating wildfires

Martin Bühler, Swiss Re’s Head of Large Loss, discusses the 2025 Los Angeles wildfires — examining why they spread so quickly and caused such widespread destruction. From prolonged drought conditions to urban expansion and shifting wind patterns, we explore the key factors that turned a wildfire into a major disaster. His analysis also looks ahead: What can be done to reduce the risk of future wildfires? How can insurers, policymakers, and communities work together to build greater resilience? With insights grounded in real-world data and claims experience, Bühler sheds light on the growing challenges — and opportunities — in managing wildfire risk.
Posted on Friday May 9

Reimagining the Actuary

When I first became an actuary, the tools of the trade were relatively simple, and almost exclusively Excel. I think those outside of the actuarial profession don't really understand the true depths of Excel, both the good and the bad. Like many other actuaries, the first few years of my career were spent pushing Excel and VBA to its limits to create tools that would have made Bill Gates proud. Beyond Excel, my own journey into becoming much more technical wasn’t particularly deliberate.
Posted on Friday May 9

Owning your physical assets and their emissions

Many institutional asset owners have set targets to reduce the emissions associated with their investment portfolios. So far, much of the focus has been on reducing emissions from listed holdings such as equities and bonds. In this blog, we argue that asset owners would be well placed to address physical assets now for added upside benefits. Why focus on carbon emissions? Climate change is a systemic risk that impacts all asset owners. Greenhouse gas emissions are a useful metric to proxy an investment portfolio's exposure to climate risk.
Posted on Thursday May 8

May 2025 Edition of the Actuarial Post Magazine

This month has seen two of the regulatory bodies being particularly active with TPR publishing their first Annual Funding Statement under the new funding code, the FCA concluded their policy sprint, supporting new ways to help consumers make important investment decisions as well as new proposals on Consumer Composite Investments. They then both got together to discuss the future development of the joint value for money (VFM) framework. In addition, we also had the DWPs Small Pots Delivery Group report with proposed legislative programme outlined. Our cover story comes from Kate Stein and Ed Day from WTW on how Property insurance faces existential risk from climate change.
Posted on Wednesday May 7

DB policy update response to Work and Pensions Committee

The Government has given MPs an update on its approach to defined benefit pension policy, pending announcements in the coming weeks. On 30 April, the House of Commons Work and Pensions Committee published the Government's response to its March 2024 report on defined benefit (DB) pension schemes. Much of the response boils down to saying that policy announcements will be made "in the Spring". However, it provides some updates and summarises the Government's stances on a range of issues.
Posted on Tuesday May 6

How should employers prepare for AE becoming more inclusive

Auto-enrolment (AE) has been a huge success in getting the employed saving for later life, but the level and breadth of saving is not enough. There is so much more to be done to make AE more inclusive too. Hymans Robertson’s analysis shows that only 1 in 3 defined contribution (DC) pension scheme members are expected to reach the “moderate” retirement living standard, with the adequacy gap remaining a major issue. There’s also a gender pension gap to be closed; men currently expect more than 25% higher pensions than women.
Posted on Friday May 2

LGPS termination approaches – the Goldilocks test

With termination surpluses increasingly common, can the insurance market provide a useful reference when Funds set their termination approach? At the 2022 Local Government Pension Scheme (LGPS) valuations things were looking up – strong returns, improved funding levels, contributions coming down. But in one area the picture was very different. For the so called “Tier 3” employers – those with no direct taxpayer backing, so Universities, Housing bodies, Charities, etc. – there was another story, with the potential cost of exit from the LGPS as high as ever.
Posted on Thursday May 1

Cyber Insurance the Realities vs Myths putting SMEs at risk

There is now a widening gap between the exposure and cyber threats SMEs face and the defences that are in place to protect them. But despite smaller businesses being increasingly susceptible to a cyber-attack and the serious impact it can have, it remains one of the most underinsured risks. HSB’s webinar will highlight the realities and myths relating to cyber insurance cover and the true costs of cyber-crime for SMEs; the evolving cyber risk landscape; and the types of incidents which may only be covered by a specialist cyber policy. It will also provide guidance on what businesses should do when responding to a cyber incident and how MGAs can support brokers and policyholders.
Posted on Wednesday Apr 30

Role of the actuary in LGPS contribution rate adjustments

Earlier this year the Kensington & Chelsea Borough Pension Fund caused something of a stir by setting a zero employer contribution rate against the advice of its actuary. But what exactly is the role of the actuary when it comes to contribution rate adjustments between valuations? The Royal Borough of Kensington and Chelsea, as administering authority of the Kensington and Chelsea Pension Fund, a fund within the Local Government Pension Scheme (LGPS), recently decided to set a zero employer contribution rate for the 2025-26 financial year.
Posted on Wednesday Apr 30

There is a need to complicate, our puts are short

Corporate bond spreads have continued to tighten, leaving substantially less upside in public IG than before. The US market recently hit the lowest it’s been this millennium, and across the board we’re well into the bottom quartiles. This both creates and exacerbates a number of risks, especially tail risks. Tail risks matter, especially to well-funded DB schemes with low-risk strategies. We outline some of the key ones below.
Posted on Tuesday Apr 29

Targeted pensions support takes shape in FCAs plans

As the Financial Conduct Authority (FCA) sets out its strategic priorities for 2025/26 – and confirms Nikhil Rathi’s reappointment as Chief Executive Officer – advisers may want to pay close attention. While headlines might focus on regulatory oversight and leadership continuity, beneath the surface lies a major initiative with far-reaching implications for pension engagement and financial guidance. The regulator has earmarked significant funding to explore a long-standing challenge: how to offer more personalised pensions support to consumers who aren’t receiving full financial advice.
Posted on Monday Apr 28

Five key questions the Insurance C-Suite must answer now

The insurance industry continues to evolve. 2025 has and – will continue to – bring with it an array of challenges and opportunities that demand strategic foresight from insurers. From a shifting UK regulatory landscape to technological advancements, economic volatility, macro uncertainty, and ESG imperatives, the decisions made by insurance executives today will define their success in the future. Our sector’s ability to navigate these dynamics – while also driving innovation and operational efficiency - is more critical than ever.
Posted on Friday Apr 25

How to make transferring to superfunds as smooth as possible

Superfunds offer a new endgame destination providing high levels of security and good governance. As schemes consider transferring, we set out our top tips to make sure that the process is as simple as possible, learnt across the first three transfers to a superfund. In late 2023 we cleared the first transfer of a defined benefit (DB) pension scheme to a DB superfund, when the Sears Retail Benefit Scheme transferred to Clara. Two further transfers, the Debenhams and Wates schemes, followed in 2024 and early 2025.
Posted on Thursday Apr 24

The cost of climate risk mispricing

Changes in US tariff policy over the last couple of weeks has caused huge gyrations in the equity market and lead to higher bond yields in US treasuries. For many UK DB pension schemes this has caused concerns around funding levels and led to collateral calls in some LDI portfolios. Direct pain has been felt by DC members who bear the full effect of this volatility; members close to retirement being the ones hurt the most as they have had to decide whether to start drawing down and realising significant capital losses or deferring their retirement.
Posted on Wednesday Apr 23

Catastrophe models blind spots and secondary perils

How organisations can better protect their businesses with smarter approaches to natural catastrophe modelling and a deeper understanding of climate-related secondary perils. To outsmart the uncertainties posed by complex and inter-related physical climate risks, organisations need to consider whether their current approach to modelling and assessing natural catastrophe is fit-for-purpose.
Posted on Tuesday Apr 22

HMRC takes steps to fix pension tax overpayments

For years, pension savers have faced frustrating delays and unexpected tax bills when accessing their defined contribution (DC) pensions – often due to HMRC’s use of emergency tax codes. As we enter the 2025/26 tax year, HMRC has announced changes designed to reduce the need for tax reclaims by updating codes more efficiently. While this is a step forward, questions remain about whether the reform goes far enough to truly solve the problem.
Posted on Thursday Apr 17

Why pension schemes should not overlook SDR

The FCA’s Sustainability Disclosure Regulations (SDR) might be voluntary for institutional investors, but the new rules have arrived at a crucial moment. Pension schemes are under increasing pressure to invest in a way that supports the transition to a more sustainable economy, while continuing to maximise members’ financial outcomes. Could understanding potential implications of the regime help them navigate the evolving sustainable investment landscape while meeting their fiduciary duties?
Posted on Wednesday Apr 16