Wednesday, 13 April 2011

Some useful materials

Risk function-related material keeps pouring out, so I'm trying to keep an eye on the Solvency II impacts;

Black swan scenario testing – likely to become much more significant to the risk management function judging by the Level 3 guidance. This is from Booz&co, and is essentially a begging letter, but the disrupter analysis described I imagine many risk functions having to complete in order to get their scenario testing in a Sol II compliant manner

KPMG Evolving Insurance Regulation – published last month, but strongly supportive of the IAIS's Insurance Core Principles (ICPs) which come into force later this year. If you have read any of the IAIS materials, it is essentially Sol II in a different jacket, and KPMG do a decent cheerleading role for the ICPs in this

Accenture website boast about Sol II compliance consulting with a middleweight insurer - sounds like a familiar scenario for anyone who didn't have their ERM in place before their Sol II projects kicked off

Guy Carpenter guides to the Three pillars - I would recommend these to anyone, as they look after the timeline requirements well enough to save me a job!


Pillar 1 - some very salient points on data quality issues that smaller companies may suffer, twinned with the necessity of internal modelling in order to capture diversification benefits. In part 3 they note that reinsurance demand is likely to increase as a risk mitigant (targetted at the highest capital requirements), as well as M&A activity being driven by the desire to obtain better diversification benefits



Pillar 2 & 3 (or "Pillar V" as the cool kids now call it! - Not quite as useful, but here for consistency

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