Solvency II for General Insurers - Course Outline & Objectives
The implementation of Solvency II has been dogged by delays but it is now highly probable the EU legislation will be in place to enable formal adoption in January 2016. From January 2014 until then we shall be adopting interim measures and --- alongside ICAS+, the wider adoption of capital models, and the regulatory requirements of the PRA (which already mirror much of Solvency II governance) --- this means we shall effectively be living in a Solvency II world.
Solvency II introduces not only a fundamental change in insurer capital determination but is also changing the ways in which insurers operate and manage their businesses. This means insurance professionals in a range of roles need to understand the principles and methods of Solvency II and the language of risk management that accompanies it.
This focused half day workshop is not designed for Solvency II specialists but for managers and technical staff with a more basic awareness of Solvency II. It will take the story further, providing a deeper and broader understanding of how Solvency II, and the model based approach in particular, will affect their roles in respect of governance, management decision making and business planning. It is also an opportunity to revise the Solvency II essentials and get up to date on implementation, particularly the interim guidelines.
Attending will enable you to:
- Revise the background and progress to Solvency II, its objectives and the component parts of the three pillar approach
- Examine the purpose and basic structure of the capital model, as either a standard formula or internal model
- Consider the role of an internal model in decision making, operational business activities and in business planning: the “use test”
- Understand the scope of risk based capital management and purpose of the Own Risk and Solvency Assessment
- Examine the interim guidance for UK regulated insurers and what this means in practice
- Explore the wider implications of a greater focus on risk based capital management: possible effects on individual firms and the insurance industry in Europe and beyond
Who will benefit?
Managing risk affects many areas, so this course is ideal for the management and specifically those in the functions of:
Executive Director Non Executive Director Senior Management
Underwriting Claims Risk
This workshop will blend trainer input to develop adequate knowledge with discussion of practical issues, potential benefits from application and events that would have model implications and consequences for business decisions.
Workshop Leader: John Constable
John has 16 years training experience with both insurers and brokers. He was Head of People Development at JLT Risk Solutions where he engineered a number of critical projects to support the business, including the development and implementation of robust structures, policies and procedures to comply with the FSA’s requirements for Training & Competence. He now runs regulatory, risk management and financial training, bringing commercial awareness, credibility and pure energy, and appreciates first hand the why a grasp of finance can be a challenge to the “layman. He authors on-line learning and his published articles have included several on Solvency II. John has a BA (Hons.) History degree from Kings College London, he holds a financial qualification form the Open University, a Diploma in Management from Henley Management College and is a Member of Chartered Institute of Personnel and Development.
Based around the three pillar structure and the “Solvency II balance sheet” approach to risk based capital allocation, the workshop will revise the key principles of and explain the fundamental difference between current ICAS and Solvency II.
The focus is on a non-actuarial explanation of the model and how it will be used. The model, particularly an internal model, will have an impact on the roles and responsibilities of individuals and functions in different ways, depending on their responsibilities: operating the model; providing oversight; as contributors in the form of assumptions and expert judgments or using its outputs to support decision making. Accordingly, understanding and demonstrating the use test is far more than just a “box tick” procedure.
Solvency II is as much about culture, governance and understanding and managing your risks as it is about capital modelling, so these elements - in the context of the interim guidance - are fitted into the picture. In the longer term, there are potential benefits from positioning the value of Solvency II, of enterprise risk management and of risk-based capital management disciplines on the cost of capital and for return on equity.