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Management Actions in a With-Profits Fund

Published online by Cambridge University Press:  12 December 2011

P. J. Tuley
P. J. Tuley
Affiliation:
PricewaterhouseCoopers LLP, 6 Hay's Lane, London, SE1 2HB, U.K. Tel: +44 (0) 771-415-3418; E-mail: james.tuley@uk.pwc.com
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Abstract

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The management of a fund requires a number of decisions as to the fair treatment of policyholders. This paper first considers the difference between the regulatory requirement to treat customers fairly and the longstanding concept within the profession of policyholders' reasonable expectations. The paper then goes on to consider the bearing of risks within the fund, and thus the interactions between the inherited estate and the asset share so often used to guide payouts to customers. Management actions are discussed in normal, and abnormal, times. Lastly, the considerations of distribution of the inherited estate are considered.

Keywords

Treating Customers FairlyPolicyholders' Reasonable ExpectationsInherited EstateDistribution of SurplusManagement ActionsWith-Profits Fund

Information

Type
Sessional meetings: papers and abstracts of discussions
Information
British Actuarial Journal , Volume 15 , Issue 2 , July 2009, pp. 227 - 257
Copyright
Copyright © Institute and Faculty of Actuaries 2009

References

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