16 Nov 2022
How Can Actuaries Tackle Inflation and its Consequences?
Inflation does not come and does not go on its ownIt is not that long ago that even ECB-Directors were clearly stating that the heightened inflation rates were only temporary. Even shortly before Christmas 2021 this statement was firmly positioned. It did not hold for long in 2022.
What are the main drivers for the change of opinion? Without being exhaustive the following points can be mentioned:
These effects were significantly stressed by:
Inflation comes with many challenges for businesses in general and insurance business in particular. Due to the long term nature of the business inflation can be very toxic. This is especially true for situation of negative real interest rates, which we have seen for some time now. The situation has changed since the Ukraine war. The FED is now increasing the interest rates and ECB is expected to do so in summer 2022. Real rates are still negative.
Why should you attend this course?If one of the following descriptions fits to your situation, the course might be exactly right for you:
What approach do we take?In order to have a common understanding of inflation we start with the historic background and pick up recent research on hyperinflation. We also look at the consequences of inflation for our customers, especially in the retirement age. In the second part we analyse the various impacts of inflation in workshops and discuss potential mitigating actions.
Organised by the EAA – European Actuarial Academy GmbH.
The following colleagues might benefit most from the course: Managers and specialists responsible for product development, reserving, financial controlling and risk management
Technical RequirementsPlease check with your IT department if your firewall and computer settings support web session participation (the programme Zoom is used for this online training). Please also make sure that you are joining the web session with a stable internet connection.
Purpose and Nature