Insurance ERM North America 2017

Chair's opening remarks

Christopher Cundy, Managing Editor, InsuranceERM

Keynote: The North American insurance industry: priorities, trends and challenges

• Setting standards
• Expanding bilateral relationships to build cross-border business
• The Retirement Security Initiative: education, consumer protection, innovation

• Big data
• Cybersecurity
• Access to health care
• Natural disasters: flood, fire

Eric A. Cioppa, Superintendent, Maine Bureau of Insurance, NAIC

Panel discussion: Exploring the different facets of cyber risk

• Operational risk
• Securing the business environment
• Proactive defence and ongoing training of the workforce
• Examining Blockchain's potential for reducing cyber risk
• The insurance risks and opportunities presented by cyber risk

Panellists:
Jacob Ingerslev, Head of Global Cyber, Navigators
Leah Schraudenbach, Senior Managing Director ERM, AIG
Turab Hussain, Chief Insurance Risk Officer, The Hartford

Moderator:
Dave McKnight, Financial Services Cybersecurity Risk Senior Manager, Crowe Howarth

Panel discussion: Regulatory policy

• Will the Dodd-Frank Act regulation survive the Trump administration's reduction of regulation strategy and what will it mean for ERM?
• An evaluation of Own Risk Solvency Assessment (ORSA) – demonstrating embedded enterprise-wide risk management processes
• Risk based capital – examining potential changes to investment
• Issues concerning the sale of cyber insurance
• Corporate governance and the increased level of regulatory scrutiny
• Possible changes to enterprise risk reporting – Form F

Panellists:
Daron Yates, Senior Director Actuary, Allianz Life Insurance Company of North America
Kevin Fry, Deputy Director Financial/Regulatory, Illinois Department of Insurance and Chair of NAIC Investment RBC Working Group
Todd Coslow, Supervision & Regulation, Federal Reserve Bank of Chicago

Presentation: Adopting the Department of Labor's (DOL) final "Fiduciary Rule" on standards for retirement investment advice

Advisors will be assessed against Best Interest Contract Exemption (BICE) from 1 January 2018 and must be able to assure clients that advice given is in their interest.

• Assessing how much impact the rule would have on business: distribution; supervisory changes and disclosure changes
• What are the costs of an infrastructure for compliance?
• Modelling the potential risk
• Structuring the transition to limit disruption
• Providing agents with information and support during the transition
• How would the rule alter the landscape of the insurance market as smaller players withdraw from the market or merge with larger companies and others design 'lighter' products in order to comply? 
• Assessing the impact from President Trump's executive order

Stephen P. Wilkes, Partner, The Wagner Law Group

Panel discussion: Economic capital management and modelling

• Implementing new capital standards
• Balancing the use of metrics in decision making
• Economic
• GAAP (generally accepted accounting principles)
• Statutory
• Is it practical to use the Own Risk Solvency Assessment (ORSA) to manage the capital management processes?
• Internal risk capital models and their impact on investment strategies – striking the balance between giving up liquidity and maintaining sufficient capital

Panellists:
Michelle McCarthy Beck, Chief Risk Officer, Nuveen
David Huntley, VP, Financial Risk Management, ERM, MassMutual
Xiaowei Han, Head of Enterprise ALM, Transamerica Life Insurance Company

Moderator:
Matthew Peters, Head of Americas Property and Casualty Insurance ERM Practice, Willis Towers Watson

CRO Forum: Looking to the future of the North American insurance industry

• What are boards and other Senior Management asking of the CRO?
• The implications of low and negative rates on risk management practices
• Designing and implementing a risk management framework:  best practice
• Data and analytics:  what are the risk implications?
• Approaches to risk appetite
• What is the role of the CRO going forward and where can he/she add value?

Panellists:
Dr Hany Gobreial, Vice President, Corporate Risk and Capital Management, Pacific Life
Jacob D. Rosengarten, Chief Enterprise Risk Officer, XL Catlin
John Langione, Chief Risk Officer, QBE North America

Moderator: 
Vinaya Sharma, Actuary and Managing Director, QRM

Model risk assessment, stress testing and business planning

• What is your definition of stress testing?
• How does it relate to other risk management activities?
• What common metrics do you stress test, apart from capital?
• How do we develop scenarios?
• Is stress testing useful for difficult-to-define or binary scenarios?
• Do the results of stress testing influence business strategy?

Pooja Rahman, Head of Financial Risk, New York Life

Presentation: Protecting the customer and the company: examining mis-sellling, customer suitability and reputational risk

• Identifying the key areas concerning consumer protection
• long-term care (LTC)
• Medicare supplement plans
• Contingent deferred annuities (CDAs) offering longevity risk protection
• Creditor-placed insurance
• Regulatory requirements including FINRA's Rule 2111 client suitability guidance
• How to determine whether products are suitable for customers
• Implementing robust disclosure practices to help customers make an informed decision
• Compliance training for agents and brokers

Birny Birnbaum, Economic Advisor and Executive Director, Center for Economic Justice

Panel discussion: How might emerging risks impact on the insurance industry in the future?

• Environmental risks
• Terrorism
• Supply chain
• Nanotechnology
• Pandemics
• Longevity

Q&A

Panellists:
Alietia Caughron, Vice President RIsk & Economic Capital, CNA
Lorie Graham, CRO and Senior Manager Insurance Services, American Agricultural Insurance Company
Turab Hussain, Chief Insurance Risk Officer, The Hartford