Oct 15, 2009

Best Pension Country 2009

There's a small country somewhere on this globe, called The Netherlands......

This small country does not only turns out to be the European and (probably) World Health Leader 2009, but - by the way - also happens to be the first Pension World Leader 2009, according to a new global research by Mercer.

You might wonder, who's the leader of that small country near the sea? His name is Mr. Jan Peter Balkenende. He's Prime minister for more than 7 years, is said to have no charisma and has proved to be able to lead a country that's loaded with hair-splitters and complaining people who disagree with each other on every possible subject.

Opposite to other European presidents like Sarkozy (France) or Berlusconi (Italy), who perform strongly on basis of their charisma and seem mainly interested in the fair sex, the Dutch Prime Minister Balkenende - just like the German Prime Minister Angela Merkel - is a modest no-nonsense leader, who walks his talk and gets the job done.

For sure he would be the best European President kandidate, to lead Europe through difficult times ahead on basis of dialog, respect and agreement.

Mercer Global Pension Index
Back to the Mercer Global Pension Index outcome.
The research is a first attempt to objectively compare the retirement income systems of eleven countries spread across the world.

Countries where rated in five grades:

Grade Index value Description
A >80 A first class and robust retirement income system that delivers good benefits, is sustainable and has a high level of integrity
B 65–80 A system that has a sound structure, with many good features, but has some areas for improvement that differentiate it from an A-grade system.
C 50–65 A system that has some good features, but also has major risks and/or shortcomings that should be addressed. Without these improvements, its efficacy and/or long-term sustainability can be questioned.
D 35–50 A system that has some desirable features, but also has major weaknesses and/or omissions that need to be addressed. Without these improvements, its efficacy and sustainability are in doubt.
E <35 A poor system that may be in the early stages of development or a non-existent system.

The overall index value for each country represents the weighted average of the three sub-indices. adequacy, sustainability and Integrity.


Pension Index Outcome 2009
The results of the pension research clearly appoint The Netherlands as the undisputed Pension leader.


Remarkable however, is that none of the participating countries were classified with an A-grade (index value > 80). This can be easily explained by the fact that no one system is strong enough to withstand the challenges of an aging population.

Want to know more? Than listen to to Dr David Knox (WWP Mercer) discussing the Melbourne Mercer Global Pension Index




Or simply download the full report.

Interested in how The Netherlands 'did it'? Just contact Tim Burggraaf, one of the best worldwide consultants of Mercer in The Netherlands. Tim is a Master in Pensions and Life Assurance. No... he's not an actuary... but you wouldn't notice and moreover, he's one of the best interlocutors and speakers you can can get.

Sources :
- IPE
- Melbourne Mercer Global Pension Index

Oct 13, 2009

Humor: Actuary Solves Credit Crisis

One upon a time there was a small village depending on only one source of income, tourism... the only problem was - due to the 'crisis' - there were no tourists left...

Every villager had to borrow from an other in order to survive.. several months passed .. everyone felt miserable.

One day a cost conscious actuary, visiting a Risk Conference nearby, arrived in the village.

Heading for a cheap overnight stay, he booked a small room in the only available local hotel. He paid in advance with a 100 dollar note and went to his room to prepare for the conference.

Before the actuary could unpack his bags, the hotel owner had already taken the 100 dollar note, heading his way to pay the butcher.. to whom he owed precisely 100 dollar.

The butcher, in his turn, immediately ran off with the 100 dollar to see the local farmer and paid his debt for all the meat he'd been supplied with...

With the same 100 dollar note, the farmer immediately paid the seed salesman who, right at that time, was visiting the farmer to collect the unpaid 100 dollar bill.

Back in his hotel, the seed salesman closed the circle. In order to settle the hotel bill for that night, he dropped the 100 dollar note on the counter. Just at that moment, the actuary - who'd come down to tell the hotel owner that he didn't like his room - arrives at the counter, picks up his 100 dollar and disappears.

Nothing was spent,
nothing was gained,
nothing was lost.
Nonetheless, thanks to the actuary, nobody in the village had any debts!

Moral
This story shows why it's important for actuaries to attend Risk Conferences and illustrates how actuaries can actively contribute to solving the credit crisis.

Original Sources: Free after newciv, Dutch source Aardbron

Oct 12, 2009

Health Leadership 2009

The Netherlands win the 2009 Euro Health Consumer Index (EHCI), for the second year in a row.

Nevertheless, Denmark keeps its runner-up position from last year. Besides The Netherlands and Denmark there are other strong performers like Iceland, Austria and Switzerland, leaving the UK in a disappointing 14th position....

Index performance criteria
The EHCI 2009 groups 38 indicators of quality into six categories: Patient rights and information, e-Health, Waiting time for treatment, Outcomes, Range and reach of services provided and Pharmaceuticals.
Each sub-discipline is weighted for importance to provide the overall Index score.

HCP research director, Dr. Arne Bjornberg, states: The Dutch might have found a successful approach that combines competition for funding and provision within a regulated framework.

Effective Health (Actuarial) Principles
In actuarial context, the success of the Dutch health system is based on a few very simple principles:
  • Risk Solidarity
  • Risk Equalization
  • No Risk Selection
  • Free choice of Care Providers & Health Insurer
  • Transparent ranking of Care Providers on bases of cost & quality
  • Worldwide cover

The Dutch Health Care System
An excellent summary of the Dutch Health Care System can be viewed on YouTube:

Health care In the Netherlands


Of course the Dutch system is no panacea, there are also many challenges and disadvantages.

Just to mention some....



Nevertheless, the Dutch system can be an inspiring example for countries like the US and the UK.


Let's conclude with an interesting development. In an 2009 article called A Strategy for Health Care Reform, Michael E. Porter presents the principles for a new health system, based on the idea that the central focus must be on increasing value for patients.

Related downloads/sources: