Technical Practices Survey 2023

The UK Life insurance market has continued to face challenges posed by regulatory, political and economic drivers over the past year. Insurers remain continually required to demonstrate adaptability in their practices to ensure their businesses continue to thrive.

To paint a clearer picture of the landscape, KPMG’s Life Actuarial team have been conducting the annual Technical Practices Survey for over a decade. As ever, the focus of this survey is to enable UK life insurance firms to identify the key technical issues within the industry, and the range of methodologies and approaches that have been adopted by their peers. The 2023 survey has been completed by 19 firms, representing a wide spectrum of the UK life insurance market, including 9 Internal Model or Partial Internal Model firms.

Each year, in response to market developments and participant feedback, we select thematic areas to explore in more detail in our report. In this year’s report we have focused on the interest rate and inflation risk calibration in respect of the 2022 experience as well as the forward looking impact of COVID-19 experience on firm’s risk calibration.

In order to further support firms in the assessment of their capital management policies, the 2023 report also includes additional calibration points for selected risks (such as interest rate, credit stress, mortality, and longevity risks) at 1-in-20 levels.

The survey results are accessible via the following PDF.

If you would like someone to take you through the survey results in detail, or for any further queries, please contact us.