Terms of Reference

Summary

1.1 Status of Technical Advisory Panel

The TAP will review and provide opinions on policy issues and working practices related to the development of both market-consistent (MC) and best-estimate (BE) calibrations for use with the B&H Economic Scenario Generator ("ESG") and aspects of model design that directly relate to calibration.

The TAP will act in the capacity solely of an advisor. Any recommendations or opinions provided by the TAP will not be automatically adopted by B&H, although where practical reasonable efforts will be made to take account of the information provided by the TAP when preparing and publishing standard calibrations.

1.2 Membership

Initial membership at December 2006 is as follows:

Chairman: John Hibbert, Barrie & Hibbert
UK Life: Andy Holtham, Aviva
European Life: Guillaume Valois, Axa
Audit Firm: Russell Ward
Investment Bank: Phil Joubert
Academic: Stewart Hodges, University of Warwick
B&H technical: Steven Morrison, Barrie & Hibbert

A quorum will consists of a minimum of three members, with at least one representative from B&H. The Chairman will always be an employee of B&H. The Committee may, from time to time, invite representatives of other interested parties to sit as ex-officio members or observers.

1.3 Term of Appointment

It is anticipated that members of the TAP will be appointed for a term of 2 years. Subsequent terms may be served subject to 1.4 below.

1.4 Appointment and Removal of Members

Nominations for appointment to the TAP may be made by members of the TAP or the Board of Directors of B&H. Appointments to and removals from the TAP will be at the sole discretion of the Board of Directors of B&H.

1.5 Expected Level of Participation

Members are expected to represent the interests of their particular sector and to facilitate effective communication between the needs of the sector and the TAP. Members will be invited to take a specific interest and develop a sense of "ownership" of topics and on-going projects relevant to their expertise and/or interests.

1.6 Conflicts of Interest

To avoid any conflict of interest, members are expected to declare any conflict of interest during committee meetings to the Chairman.

1.7 Logistics

The Committee will meet quarterly, or at such other frequency as determined by the TAP and agreed to by the Chair.

As much as possible, the work of the Committee will function in a "virtual" format, with teleconferences and phone/email correspondence being its usual way of operating. Meetings will be held at locations agreed by the TAP. It is anticipated that members of the TAP will occasionally make their offices available to host such meetings.

The Committee may convene additional working groups and sub-committees to undertake specific activities as required.

Any member of the Committee may request a review and/or revision of these Terms of Reference through a request to the Chairman.

1.8 Secretariat

Limited secretariat staff support will be provided through B&H appropriate to the type and volume of activities being undertaken by the TAP. The secretariat will work under the direction of the Chairman.

The Secretariat provided by B&H will aim to circulate an agenda and papers two weeks in advance of each meeting. In the event of there appearing to B&H to be insufficient business to occupy a meeting, the Secretariat will canvass Members for items that might be raised. In the absence of suggestions that produce sufficient items B&H will, at its sole discretion, determine whether the meeting should be cancelled.

Last updated: 4 June 2007