This paper describes how statistical methods can be tested on computer-generated data from known models. We explore bias and percentile tests in detail, illustrating these with examples based on insurance claims and financial time series.

This abstract relates to the following paper: JarvisS., SharpeJ. and SmithA.D.Ersatz model tests ‐ Abstract of the London DiscussionBritish Actuarial Journal. doi:10.1017/S1357321717000137

This paper examines the resilience of various retirement solutions in the context of factors that can influence their sustainability. First, by considering the desirable features of retirement solutions within the United Kingdom, the authors outline the key levers available to the architects of retirement vehicles to ensure stability. Second, to measure “resilience” the authors create a failure score to establish a method of determining if a vehicle has “failed”. Third and finally, we look at those external forces that influence the likely longevity of a retirement solution.

This abstract relates to the following paper: RichardsJ., HurdM., and ClacherI., Viable retirement solutions for the long-run: Are there any sustainable retirement solutions out there? ‐ Abstract of the London discussionBritish Actuarial Journal, doi: 10.1017/S1357321717000204

A new stream of research proposes how people can increase their income in retirement by pooling their mortality risk. How one of these mortality risk-sharing rules could be implemented in practice, as part of a retirement income scheme, is considered. A potential advantage of the scheme is that a retiree’s housing wealth can be monetised to provide an income stream. This would mean that retirees can continue living in their home, without needing to downsize. It may be most attractive to the millions of single pensioners, particularly those who are “asset-rich and cash-poor”. Other types of assets that could be included and how to mitigate selection risks are assessed. A way of smoothing the raw mortality credits in order to make the scheme more appealing to potential members is proposed. An illustrative premium calculation suggests that the cost of the smoothing is very small compared to the potential attractiveness of an enhanced, smoothed income.