WIG ‘Society’ Series

Martin Clarke, Government Actuary, Government

Actuary's Department

Tuesday 8 October 2019

For other WIG events & opportunities visit www.wig.co.uk

Join the conversation @WIGuk | #WIGevents

Government Actuary’s Department 100 years and beyond

Martin Clarke, Government Actuary

8th October 2019

Welcome to the world of government actuaries

WIG breakfast briefing 8th October 2019 3

What are actuaries?

“Problem solvers and strategic thinkers with a

deep understanding of financial systems”

Institute and Faculty of Actuaries

A brief history of GAD• The first Government Actuary sat on 21

Royal Commissions and was influential in

the creation of the National Health

Insurance Scheme;

• The second served on and was actuary

to the Beveridge Committee whose

report led to the creation of NHS;

• Like many of his colleagues at the time,

the third served a secondment in a War

department during WWII;

• The sixth led on the introduction of

appointed actuaries to life insurers and

was instrumental in the beginnings of

SERPS;

.

WIG breakfast briefing 8th October 2019 5

GAD’s direction of travel:

WIG breakfast briefing 8th October 2019 6

RiskSocial

Security

Govt

Insuranc

e

Schemes

Public

Pensions

Health –

social care

Climate

change

Mathematics, economics, probability and statistics, data analysis, modelling.

Actuarial sciences – pensions, investment, insurance and risk ….

Client engagement, policy development, project management, public finances

communications, business development, research, standards…..

Generic skills for public sector consulting

Increasing “domains” of expertise

Technical and professional skills and specialisms

Today’s Government Actuary’s Department

WIG breakfast briefing 8th October 2019 7

• Achieving fairness through the PI discount rate

• Getting value for money from student loan sales

• Practical remedies after public service pensions Employment Tribunal

GAD analysis showed the distribution of compensation at different PI discount rates

WIG breakfast briefing 8th October 2019 8

Today’s Government Actuary’s Department

WIG breakfast briefing 8th October 2019 9

• Achieving fairness through the PI discount rate

• Getting value for money from student loan sales

• Practical remedies after public service pensions Employment Tribunal

GAD’s student loan model

WIG breakfast briefing 8th October 2019 10

GAD’s model of student

loan repayments is

based on a “transition

matrix” of probabilities

of moving from one

earnings/employment

state to another over a

one year period.

The probabilities are

determined from

analysing

past data and retro-fitting

the model to past

experience.

Today’s Government Actuary’s Department

WIG breakfast briefing 8th October 2019 11

• Achieving fairness through the PI discount rate

• Getting value for money from student loan sales

• Practical remedies after public service pensions Employment Tribunal

GAD’s challenges for the future

• Big data – seeing the wood for the trees

• Who pay’s for risk? Risk management of the government balance sheet

• Ageing population – sound finances and fair policies

• Climate change - understanding, measuring and managing the risks

• EU exit – UK-specific policies based on sound analysis

WIG breakfast briefing 8th October 2019 12

Client / employee perspectives

WIG breakfast briefing 8th October 2019 13

90% “highly valued”

“Any material or information in this document is based on sources believed to be reliable, however we cannot warrant accuracy,

completeness or otherwise, or accept responsibility for any error, omission or other inaccuracy, or for any consequences arising

from any reliance upon such information. The facts and data contained are not intended to be a substitute for commercial

judgement or professional or legal advice, and you should not act in reliance upon any of the facts and data contained, without

first obtaining professional advice relevant to your circumstances. Expressions of opinion do not necessarily represent the views

of other government departments and may be subject to change without notice.

Time for questions?

WIG breakfast briefing 8th October 2019 14

WIG ‘Society’ Series

Martin Clarke, Government Actuary, Government

Actuary's Department

Tuesday 8 October 2019

For other WIG events & opportunities visit www.wig.co.uk

Join the conversation @WIGuk | #WIGevents

www.wig.co.uk

Upcoming events

Thursday 10 October

Managing Risk in Outsourcing: A Cross Sector Conversation with the

Cabinet Office

Wednesday 6 November

Chris Giles, Economics Editor, The Financial Times

Wednesday 27 November

Sir Richard Heaton, Permanent Secretary, Ministry of Justice

WIG Leadership Programmes

Speak to one of the team for more details