The UK equity release market: Views from the regulatory authorities, product providers and advisors

Sharma, Tripti; French, Declan; McKillop, Donal

doi:10.1016/j.irfa.2021.101994

Cited by 5 publications

(5 citation statements)

References 44 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…(1) the lexicon to categorise words is not insurance specific but rather relative to finance in general [28]; (2) the documents analysed are limited and stylised to meet the needs of a specific audience (in contrast the PRA receives a vast amount of additional information [2], including risk reports, that potentially contain a much richer risk-related source of intelapplying the same methods explained here to such documents might reveal more patterns); and (3) the use of share price as a proxy for prudential risk should be replaced by the PRA's internal view -noting that share price movements may not always be aligned to prudential risk [1,3]. This analysis has provided some interesting results, but future research is needed to establish whether a business benefit can be achieved through NLP and cognitive net-works.…”

Section: Discussionmentioning

confidence: 99%

“…The Prudential Regulation Authority ("PRA") is the UK's financial regulator with responsibility for prudential oversight of the insurance industry [1]. It regulates around 300 general insurers that write over 100 billion of premiums each year; covering everything from motor, household, and pet insurance for retail customers, to the largest financial risks of global corporations [2] -for example, business interruption costs following natural catastrophes, such as hurricanes, or man-made disasters, such as terrorism.…”

Section: Introductionmentioning

confidence: 99%

“…Today, this assessment of risk, relies on quantitative reporting (regulatory returns [3]) and supervisory judgement [1,2]. In the latter case, this will typically be informed by meetings with a firm's senior management and interpreting large volumes of unstructured reports -for example, Board reports and minutes.…”

Section: Introductionmentioning

confidence: 99%

“…The purpose of this work is to establish whether Natural Language Processing (NLP) techniques [4] can be adopted, enabling a systematic approach to analysing unstructured reports -e.g. extracting key topics and sentiment -thereby helping to monitor and identify firms with higher prudential risk [1]. Automatic NLP approaches could complement existing quantitative and qualitative assessments, based on numerical data [2], and help resource allocation, focusing more resources on those insurers identified as higher risk.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Natural Language Processing and Cognitive Networks Identify UK Insurers’ Trends in Investor Day Transcripts

Stefan¹,

Stella²

2022

Preprint

View full text Add to dashboard Cite

The ability to identify and rank risk is essential for efficient and effective supervision of financial service firms, such as banks and insurers. Risk ranking ensures limited resources are allocated where they are most needed. Today, automatic risk identification within insurance supervision primarily relies on quantitative metrics based on numerical data (e.g. returns). The purpose of this work is to assess whether Natural Language Processing (NLP) and cognitive networks can achieve similar automated risk ranking and identification by analysing textual data, i.e. NIDT=829 investor transcripts from Bloomberg. To this aim, this work explores and tunes 3 NLP techniques: (1) keyword extraction enhanced by cognitive network analysis; (2) valence/sentiment analysis; and (3) topic modelling. Results highlight that keyword analysis, enriched by term frequency-inverse document frequency scores and semantic framing through cognitive networks, could detect events of relevance for the insurance system like cyber-attacks or the COVID-19 pandemic. Cognitive networks were found to highlight events that related to specific financial transitions: The semantic frame of "climate" grew in size by +538% between 2018 and 2020 and outlined an increased awareness that agents and insurers expressed towards climate change. A lexicon-based sentiment analysis achieved a Pearson’s correlation of ρ=0.16 (p&lt;0.001,N=829) between sentiment levels and daily share prices. Although relatively weak, this finding indicates that insurance jargon is insightful to support risk supervision. Topic modelling is considered less amenable to support supervision, because of a lack of results’ stability and an intrinsic difficulty to interpret risk patterns. We discuss how these automatic methods could complement existing supervisory tools in automated risk ranking.

show abstract

Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Natural Language Processing and Cognitive Networks Identify UK Insurers’ Trends in Investor Day Transcripts

Stefan¹,

Stella²

2022

Preprint

View full text Add to dashboard Cite

show abstract

“…This industry gives firms loans to help them grow and mortgages and insurance policies to protect people, businesses, and assets [3]. Banking is the backbone of every country because it affects financial and economic growth [4].…”

Section: Overview Of Economic Growth Of Finance Industrymentioning

confidence: 99%

Analysis on Risk Awareness Model and Economic Growth of Finance Industry

Wang¹,

Wang²,

Mohammed³

2023

Journal of Internet Technology

View full text Add to dashboard Cite

<p>The economy was slump mainly due to the credit market disruptions and losses generated by systemic credit institutions. The trust in the banking system to satisfy payment commitments collapsed, and financial, economic, and political risks were increased, and during that era, their significant volatility. Such dangers have skewed economic development and laid the foundations for creating an economy of dread. The financial risks occur due to investments made to firms that fail to meet their financial responsibilities. The trouble is due to the probability of financial expense. Therefore, a culture of risk consciousness must be created to increase risk sensitivity in a company. Risk awareness and agility in responding to incidents are essential, and then reaction times might be impeded, mainly when an organization has grown too fast. Creating that culture, awareness of risk management benefits, safety improvements, lower claims, and lower risk costs, and better financial outcomes improved and shown. This article examines the influence on the economic growth of financial development using time series data. This research has been conducted using three popular financial development indicators: wide cash, deposit/GDP, and private sector domestic credit. The risk awareness model (RAM) estimate has a favourable and substantial influence on economic development for all financial development indices. Therefore, this article demonstrates that all financial product economic growth indexes utilize a binding test in a profitable and long-term way. Consequently, it is suggested to push ahead with financial reforms to enhance financial sector development, increasing its contribution to economic expansion. The proposed method allows achieving better throughput by performance ratios, accuracy ratios, low error rate, precision ratio, poverty rates, and risk management levels, financial volatility rate.</p> <p> </p>

show abstract

Looking toward the future: Well-ageing solutions from the equity release mortgage market

Di Lorenzo,

Piscopo,

Sibillo

et al. 2024

Reference Module in Social Sciences

View full text Add to dashboard Cite

The UK equity release market: Views from the regulatory authorities, product providers and advisors

Cited by 5 publications

References 44 publications

Natural Language Processing and Cognitive Networks Identify UK Insurers’ Trends in Investor Day Transcripts

Natural Language Processing and Cognitive Networks Identify UK Insurers’ Trends in Investor Day Transcripts

Analysis on Risk Awareness Model and Economic Growth of Finance Industry

Looking toward the future: Well-ageing solutions from the equity release mortgage market

Contact Info

Product

Resources

About