This 2-day course will describe the Solvency II Directive as it applies to EU countries. The course will not only set out the contents of Solvency II but will provide guidance as to what insurance firms should be doing now to prepare themselves for this important change in financial regulation.

Learning Objectives

After attending this course a course attendee will be able to:

Describe the main provisions of the existing EU regulations governing solvency margins for insurance firms
Explain the changing business, economic and policy context that is driving the regulations
Discuss objectively the current proposals for Solvency II and their effect on his or her own firm
Apply the knowledge gained through the course to help develop plans for the integration of the new regulations into his or her firm's compliance strategy
Analyse the potential impacts on his or her firm of becoming compliant with the emerging regulations of Solvency II
Synthesise alternative compliance strategies that could be appropriate as a response to the new regulations arising from Solvency II
Evaluate the alternative Compliance strategies to recommend those most suited to the needs of the firm

Program of the seminar: Advanced Solvency II Workshop

The seminar timetable follows Central European Time (CET).

Day One

Session 1: Solvency: Concepts and Regulations

Concept of solvency
Solvency I/ICAS
Solvency II
3-Pillar architecture
Consolidation of existing regulations
New additions and the Lamfalussy Model
CEIOPS and EIOPA

Case Study: Gap Analysis

Session 2: Solvency II Overview

Economic context and trends
Goals and objectives
Scope
Economic capital
Stronger risk management
Economic benefits
Policy context in the EU
Relationship with international accounting standards

Session 3: The Solvency II Project

Capital adequacy
Risk types
Traditional project disciplines
Involving the key players
Main project phases

Case Study: Selected Project

Session 4: Pillar 1 � Quantitative

Economic capital
Capital Tiers 1- 3
Assets
Own funds
IBNR, etc
Covariance matrix methodology
Solvency capital requirement (SCR)
Minimum capital requirement (MCR)
Data management
Calculating the SCR
- Standardised approach
- Internal models
- Partial Internal models
Simplifications
Quantitative Impact Studies
QIS5
Supervisory intervention

Day Two

Session 5: Pillar 2 � Qualitative

Enterprise risk management
Gap Analysis
Own Risk and Solvency Assessment (ORSA)
Use Test
P & L Attribution
Validation
Model Governance
Documentation.
Capital Add-On
Fit and Proper
Actuarial duties as part of governance

Case Study: ORSA

Session 6: Risk Management

Risk modelling
- Assets, threats, impacts and vulnerabilities
- Severity and frequency of events
- Stochastic risk modelling techniques
- Risk mitigation and control
Risk appetite and key risk indicators
Risk registers
Outsourcing
End User Computing and spreadsheets
Supervisory review process
Internal Model Approval Process (IMAP)
Role of the Compliance Department and compliance monitoring approaches
Internal Audit

Case Study: Risk Management

Session 7: Pillar 3 � Reporting

Disclosure requirements
Report to Supervisors (RTS)
Public disclosure � Solvency and Financial Condition Report (SFCR)
Supervision implications for insurance firms

Case Study: Financial Reporting Workshop

Session 8: Wider Industry Considerations

Relationship to banking regulation
Lessons from the Credit Crisis
The European Insurance Market
Solvency II Winners and Losers
Anticipated changes in the insurance sector, post Solvency II implementation
Product line implications, post Solvency II implementation
Group regulation
Supervisory co-operation

Advanced Solvency II Workshop

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