KPMG has provided commentary on some of the key CEIOPS' consultation papers (CPs) issued on 3 July. The main issues: internal model governance and technical provisions. KPMG's analysis below covers CPs 39, 40, 41, 42, 43, 44 and 56, as well as the addendum to 37. Further papers are covered in today's other feature.
This is our edited selection from Watson Wyatt's commentary on some of the main CEIOPS' consultation papers (CPs) issued on 3 July. The selection here mainly covers the standard formula and the capital add-on, looking at CPs 45, 47, 48, 49, 50, 51, 52, 53 and 57. Further papers are covered in today's other feature.
A senior manager should at least understand the questions the model is trying to answer, and their impact on the firm's business model, argues Craig Turnbull
Val Amos of Hiscox argues that CEIOPS' proposals have done little to address insurers' concerns about operational risk
We should remember Nobel laureate Robert Merton's warning that "models are not at all precise in their application to the complex real world," argue Athula Alwis and Dave Ingram
UK Insurers that operate defined benefit pensions can reduce the cost of their regulatory capital if they take a more holistic view, says Yasheen Rajan
Michel Dacorogna, the company's modelling chief, tells Jessica Baylis the role of the risk manager is to think of the improbable and then work out ways of allowing for this in your risk management.
Postponement of the CEIOPS' paper and regulatory vagueness add to confusion over how partial internal models might be used, yet these could be the choice of the majority of insurers. Jessica Baylis reports.
Otherwise, they won't ask the right critical questions, argues Andrew Smith
Quantitative modelling has long been part of the fabric of Munich Re. It's also a strength of the CRO but he doesn't believe in slavishly following the models, explains Sarfraz Thind
Individual risks like volatility aren't the problem, argues Milliman's Neil Cantle. The way they combine is.
Insurers can exploit risk knowledge in the same way that skiers do, argues Dave Ingram
Don't start with a gap analysis, argues Charl Cronje. Work on the statutory capital requirement first, then move on to how risk is managed throughout the firm.
Banks have been touting the virtues of longevity swaps to pension funds for years. Now that the first deal has appeared, John Ferry asks, Will the market burgeon?
Our guide to 18 systems from 14 vendors shows a wide range of approaches. All of them have features relevant to compliance with Solvency II and some are prepared for pillar II and III requirements.
Actuaries are being given the chance to play a central role in the running of insurance businesses. Do they have the right skills and will they seize their opportunities? Jessica Baylis reports.
The Willis Hurricane Index will facilitate timely understanding of insured losses and therefore rapid settlement of claims, explain Brian Owens and Dr Greg Holland
It's full steam ahead to implementation of Solvency II in 2012 but questions remain about how this will affect the special status of Lloyd's of London. Helen Yates reports.
Boards should question risk management reports based solely on a recent benign environment, argues Dave Ingram of Willis Re
A new global examination is being developed to equip actuaries to take on senior risk management roles "" and not just in insurance. Jessica Baylis reports.