Below you will find an overview of the different presentations given during the different Learning-on-the-Go sessions organised by Deloitte since 2010. The presentations will address several technical challenges of the new Solvency II framework.
Preparing for Solvency II Pillar 3
On a mission to define fully harmonised reporting templates, EIOPA recently launched the public consultation with regards to Supervisory Reporting & Public Disclosure for Solvency II. Following a gradual enforcement of the Pillar 3 requirements, the timelines for reporting will tighten over time having a great impact on the way insurers organise the reporting process. Even if their size and level of ambitions may vary significantly, almost all insurers are looking to their IT architecture to improve the robustness, the performance and the flexibility of the systems and data flows currently supporting actuarial, risk and finance processes. Have a look at the presentations given during the Learning-on-the-Go session of 16 January 2012, including:
- Preparing for Solvency II Pillar 3: Requirements, challenges and solutions
- Using XBRL in Solvency II reporting
Technical provisions in Solvency II
Solvency II introduces a new and fundamentally different approach to determining technical provisions. The basic tenet underlying the economic valuation approach is that insurance liabilities (and reinsurance assets) are to be measured as the sum of a best estimate and a risk margin that incorporates the capital cost of underwriting the risk. Translating this simple starting point in operating processes entails answering questions on the scope of future cash flows, the aggregation of these cash flows at different levels of the calculations, the discount rate to be used, the inflation and expenses forecasts, …
Download any of the presentations given during the 26 April 2010 session:
- Solvency II - Technical provisions
- Liquidity risk in insurance companies
- Solvency II - Internal model requirements
Quantative impact study 5
Solvency II introduces a fundamentally different approach to determining the balance sheet and assessing capital requirements. Taking the story a step further than the way technical provisions should be determined according to the Level 2 advice and the QIS5 technical specifications, this presentation provides an overview of the major building blocks (Own funds and market value balance sheet, Solvency Capital Requirements, Minimum Capital Requirements) to complete the QIS5 exercise, how they compare to the QIS4 exercise, using simplified examples.
Solvency II introduces a fundamentally different approach to determining the balance sheet and assessing capital requirements. Moving from Pillar I to Pillar II, this presentation aims at demystifying the challenge linked to the ORSA and giving a few guidelines on how this multifaceted challenge can be addressed in a proportional way.
IFRS for insurance contracts - Exposure Draft
On 30 July 2010, the IASB published its Exposure Draft of the new IFRS for insurance contracts (IFRS 4 Phase II). This is a major milestone in the creation of a common reporting standard for the measurement, presentation and disclosure of insurance contracts. Preparation for the new IFRS will require significant investment and the understanding and assessment of the new proposals will be a key step in what is expected to be a complex implementation challenge. Hopefully the benefits of these efforts will bring more consistency and transparency to insurance reporting than there is under the current IFRS regime.
The enclosed presentation will help gaining an understanding of the key concepts, accounting and reporting implications triggered by the Exposure Draft.
Modelling in Solvency II
Actuarial and risk models are at the heart of Solvency II, even if your undertaking does not opt for internal models. Indeed, the determination of your technical provisions and SCR in the standard model is most probably relying on models and data that are not very different than what you would expect for an internal model.
This presentation starts from the level II texts on internal models, their governance and validation and try to make tangible what is required from undertakings going down that road. In doing so, we will aim at giving examples that are relevant for undertakings that are currently focusing on the standard model approach to SCR.