Substantial work has been undertaken in the field of behavioural finance to explore the psychological factors affecting investment decisions made by individuals. In contrast, “behavioural” factors (such as politics or human psychology) affecting decisions and actions made by institutional investors, such as insurers or pension schemes, are less understood. The IFoA has commissioned research into how institutional investors make investment decisions which will be completed by early 2019. This could be significant for investment committees of insurance companies and pension schemes.
Behavioural Economics has been at the forefront of the FCA’s approach to regulation since its formation in April 2014. Therefore it should be on the radar of every FCA regulated firm. The consequences of behavioural economics being part of the FCA’s tool kit are far-reaching and an important area for NEDs and senior executives to consider. Areas for discussion include:
- product design: e.g. product complexity, loss ratios, cross subsidies
- marketing: e.g. auto-enrolment, information disclosure, choice architecture, default options
- customer services: e.g. customer correspondence, auto-renewal
- staff and management behaviour
- board decision making
This event could be significant for product design teams, investment committees of insurance companies and pension schemes, and of course NEDs and Boards.
Programme to be announced soon.
Staple Inn Hall, High Holborn, London, WC1V 7QJ
Nearest Public Transport
Chancery Lane Station