Standard Life Investments

Inside Global Insurance Investment

Asia Joint Regional Seminar

Speaking at the Asia Joint Regional Seminar, Bruce Porteous discussed the transition from guaranteed savings to a capital-light investment-linked products business model.

October 2016

Bruce Porteous from Standard Life Investments' Insurance Solutions team participated in the recent 15th Joint Regional Seminar (JRS) 2016 programme, held from 25 July to 4 August in Taipei, Hong Kong, Bangkok and Kuala Lumpur. The JRS is an annual programme organised by the Institute and Faculty of Actuaries (UK), Actuaries Institute Australia, Society of Actuaries (USA) and the local regional Asian actuarial societies in Taiwan, Hong Kong, Thailand, Malaysia and China. It comprises a series of actuarial conferences held across various Asian regions.

The programme’s theme was product development: “Back to Basics – Evolving Technical Matters”. Around 800 delegates in total attended. In his presentation, Bruce discussed product design challenges facing life assurers and potential solutions in today’s low-rate environment. He highlighted how, across the globe, life assurance business strategies are transitioning from guaranteed savings products to ‘capital-light’ investment-linked products. Bruce speaks from direct experience – Standard Life Group is a leading example of a company that has undertaken this business model transition. It has been a key driver of the firm’s business strategy for over a decade and Bruce has held several senior roles in the Group throughout that process.

Capital-light products entail customers taking more of the investment risk. Therefore, it is important that the insurance company provides transparency and tools to help the customer understand their risk position. Figure 2 illustrates the types of tool Standard Life offers its customers.

Figure 2: Investment-linked insurance product – example of customer risk tools

In the final quarter of 2016, Standard Life Investments’ Insurance Solutions team will set out more ideas on how it can support insurance companies in this business strategy transition.