Regulatory
burden or a catalyst for change?
Case studies
The background
Our client had invested heavily in preparing for Solvency II, navigating the huge volumes of regulatory material and tried to build processes to meet the complex set of regulatory requirements. The client asked us to come alongside its multi-disciplined project team to provide expertise and build their knowledge and capabilities.
Our solution
We spent time with the internal team and identified a number of opportunities to get value out of the process:
- We gave training to the board to help them understand their responsibilities
- We facilitated discussion on how to assess strategic initiatives in the context of the Own Risk and Solvency Assessment (ORSA) and other Pillar 2 risk management requirements
- We helped develop improved policies and processes in a number of areas, making them more relevant and, therefore, easier to embed in the business
- We developed management information dashboards to give a clearer view of the key risks affecting the business
- We helped improve the quality of capital modelling (both the standard formula process and internal models) to meet the Pillar 1 regulatory requirements
- We provided guidance on how to meet the Pillar 3 reporting requirements efficiently.
The results
Our client has now developed processes to meet regulatory requirements efficiently, and the risk and capital teams are now proactively supporting the board in using the model for a variety of business decisions.
How we can help
Your capital model can be a powerful tool for understanding your risk profile and making better business decisions, in addition to calculating regulatory capital.
Insurance regulation has become tougher and more sophisticated. We can help you meet regulatory requirements in a way that adds value to the business.
Data has always been the lifeblood of insurance. The recent explosion in the volume of data available to insurers provides great opportunities but will also generate more intense competition.
Reserving adequacy is crucial to succeeding in the insurance market. But some of the biggest risks to your reserves are not reflected in the historical claims data.
Risk management is at the core of the insurance business. We can help you strengthen the links between strategy and risk management, increasing your chances of business success.
Our independent validation advice helps you to use your models with greater confidence and to meet regulatory requirements efficiently.
