Regulation
Solvency II for pensions - an unwelcome intrusion, or an inspiration?
Posted on 06-12-2011 by Celene Lee | 0 comments
The 2010 EU Green paper on the future of pensions sparked many debates in the industry about the pros and cons of applying Solvency II to pensions. Following this publication, the European Commission asked EIOPA for advice on an EU-wide legislative framework for IORPs (Institutions for Occupational Retirement Provisions)…
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Do as I Say - How do we confirm that business decisions are being made in line with ERM vision?
Posted on 01-07-2009 by Craig Turnbull | 0 comments
This relates closely to some of the discussion below around senior management’s understanding of models. For ERM to be useful, senior management needs to fully buy into the ERM vision, and what it means for their business models. If it identifies economically non-viable business policies, senior management needs to be willing to listen and learn from those insights. In the global insurance…
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See Nothing, Hear Nothing, Know Nothing - How much do senior management need to understand of the models being used?
Posted on 29-06-2009 by Craig Turnbull | 0 comments
This can operate on a number of levels:
First, there needs to be an understanding of the questions that the model is trying to answer and their fundamental ramifications for the firm’s business model. For example, if the model is being used to calculate 1-yr VaR based on market-consistent asset and liability values, this might mean that pricing products at a sub-market-consistent-level…
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Garbage In - Who polices the information used to run the model?
Posted on 02-06-2009 by Craig Turnbull | 0 comments
This is partly about finding the right regulatory balance between prescription and principles. Globally, insurance regulators have so far taken different positions on this spectrum. Some risk factors may be so common and ‘standard’ that a prescriptive approach to the criteria that the model and its calibration must satisfy seems obviously beneficial. As an example, if an insurance company…
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