Sir John Chadwick issues Third Interim Report
4th March
Sir John Chadwick has today issued his third and final interim report. Sir John expects to provide his final advice to the Government in May 2010.
Sir John Chadwick has today issued his third and final interim report on an ex-gratia payment scheme for policy holders most affected by events at Equitable Life, which sets out:
- the provisional answers to the questions Sir John needs to address in his advice to the Government;
- Sir John's provisional view on which life companies are suitable as a basis for a comparator in the assessment of relative loss resulting from accepted maladministration;
- His provisional views as to what factors the Government may wish to take into account when considering those policyholders who have experienced disproportionate impact from the accepted maladministration; and
- the initial quantitative advice from Sir John's actuarial advisers, Towers Watson (formerly Towers Perrin) on how the Society's financial position would have been presented differently to the public (absent of maladministration).
Sir John's Third Interim Report develops from his Second Interim Report of December 2009, in response to which he received a number of representations. These responses are also published today.
Those wishing to make representations on Sir John's third and final report are requested to send written comments to him by 9 April 2010. For details of how to do so, please see how to contact Sir John. Sir John expects to provide his final advice to the Government in May 2010.
Sir John will review all representations he receives while his team continue its further detailed analysis. To assist Sir John in deciding whether it is reasonable for him to rely on its advice, Towers Watson, has appointed a panel of three senior external and independent actuaries to peer review its actuarial assumptions and methodology. Sir John welcomes its appointment. The Panel is comprised of Gavin Hill FIA, Peter Shelley FIA and Michael Urmston FIA, none of whom have or had any connection with Equitable Life.
Notes:
- For further information about Sir John's work please refer to his Terms of Reference.
- In December 2009 Towers Perrin merged with Watson Wyatt to form Towers Watson.
- Gavin Hill was a Managing Director at National Mutual Life from 1988 to 2002 and is now chief investment officer at ‘telent'
- Peter Shelley has been a senior actuary at AXA UK since 1990 and is currently the With Profits Actuary for several funds
- Michael Urmston was chief actuary and then Finance Director at Aviva Life. He retired in 1998 and is now non executive director on a range of life assurance company boards