Life insurance

Name: David Johnson

Company: Independent contractor

A bit about me

• 1997 – A-levels in Maths, French and Physics

• 2001 – BSc in Mathematics at Birmingham

• 2003 – Joined Norwich Union (now Aviva)

• 2007 – Qualified (FIA)

• 2010 – Became a contractor

• 2013 – Currently on Standard Life Solvency II programme

What actuarial work have I done?

• Reporting

• Capital management

• Solvency II

• Risk function

• Working party

• Education

Reverse stress testing

• What events will render my business model unviable?• Crystallising risks cause the market to lose confidence in the firm• Counterparties and other stakeholders would be unwilling to transact with or provide capital to the firm• existing counterparties may seek to terminate their contracts• Such a point could be reached well before a firm's regulatory capital is exhausted

• Black Monday (1987) stock markets world wide fall by up to 46%

• Spanish flu (1918) pandemic kills approx. 1% of GB population

• Credit crunch (2007-08) stock markets fall sharply, credit spreads soar and liquidity dries up

• How likely are events of this magnitude?