I agree We use cookies on this website to help us provide the best user experience. By browsing this site you agree to their use - more information is available here.

Barnett Waddingham
0333 11 11 222
We provide services covering all aspects of unit-linked insurance management including unit pricing governance and methodology reviews, independent advice on discretionary practice, error investigation and rectification, product development and policyholder disclosures.

Understanding and managing risk

Unit linked insurance management is often overlooked.  How well do you understand and manage the risks?  In particular, unit pricing errors can be costly to both investigate and correct and fair treatment of policyholders is of paramount importance.


At Barnett Waddingham we have a wealth of experience in helping insurance firms ensure they take all reasonable steps to manage the risks they face to avoid unit pricing errors or fairness issues in the first place.  Our mix of consulting and ‘hands-on’ industry experience means we understand both the theory and, just as importantly, the practical issues that simply cannot be ignored.

Unit pricing related reviews and/or advice tailored to your specific needs.  This might cover some or all of:

  • governance structure
  • unit pricing methodology
  • application of discretion
  • unit pricing processes, controls and operational risk mitigation
  • compliance with the ABI Guide to Good Practice for Unit Linked Funds (ABI Guide)
  • compliance with policy terms and conditions and other disclosures
  • advice on the merging of unit-linked funds and addressing customer fairness as part of rationalisation exercises; 
  • representation on your unit-linked governance committee or equivalent to help ensure appropriate challenge (as required by the ABI Guide)
  • due diligence on outsourced operations

Rectifying errors

If unit-pricing errors or fairness issues do occur, we can help you investigate and put things right.  Very often there is no single ‘correct’ approach to rectification and we will identify the options available to you, taking into account any trade-off between the cost of any compensation payments that may be required and the administrative simplicity of the approach.

Product development

We also hold Chief Actuary roles for unit-linked firms and can help you with unit-linked product development including linked fund offerings and associated tasks such as systems development/testing and policyholder disclosures.

Related knowledge and resources


  • Financial Conduct Authority Thematic Review TR16/2

    The FCA issued Thematic Review TR16/2, 'Fair Treatment of long-standing customers in the life insurance sector' on 3 March 2016. The work by the FCA in this area has the scope to have considerable impact on the industry as a whole.

  • Actuarial Function Structure Survey 2015

    There has been much debate as to the role and responsibilities of the Solvency II Actuary and how actuarial departments should be structured. In the Autumn of 2015, we carried out a survey to see how UK insurers have addressed the challenges.

  • PRA Solvency II Insurance Directors’ update - November 2015

    The PRA has published a Solvency II Insurance Directors’ update letter for all Solvency II affected firms. With the implementation of Solvency less than two months away, reviewing applications for Solvency II approvals is the PRA’s main priority.

Updates delivered to you

Stay ahead with our latest comment, expert insight and event details.