Solvency II Solutions - Managing Insurance Risk for Profit

Friday, 27 April 2012

One of the key topics at the forthcoming Solvency II Solutions event for ICMIF members, Thursday, May 24, will be how to manage insurance risk for profit under the new Solvency II regime. Typically over 60% of the Solvency Capital Requirement (SCR) for a non-life insurer comes from insurance risk. Insurers can manage or reduce the SCR associated with insurance risk through diversification and reinsurance. If they are forced to use the standard Solvency II capital formula these are the only levers at their disposal; other than writing less business. During this session the Supporting Members will share their expertise on this topic through a combination of presentations and panel discussions. The panel will also include representatives from ICMIF member organisations who will share their experiences in this area.

Mutuals and cooperatives are generally constrained when it comes to achieving diversification benefit; whether by line of business or geography. Also unlike larger competitors they may not have the ability to replace the standard capital formula with an approved internal model due to expense and/or expertise constraints. So, by default most mutuals and cooperatives will have to abide by the standard formula, limiting their ability to tailor reinsurance to their needs. However, all is not lost. There are ways to achieve more flexible reinsurance optimization even under the standard formula.

This session explores how ICMIF members can maximise their capital flexibility within the constraints of the standard model and benefit from the Solvency II process. Should they explore the internal model route? If so how can costs be minimised whilst benefits maximised? We will consider case studies where Solvency II has helped mutuals optimise their reinsurance arrangements, making them more competitive in their markets. We will also consider reinsurance strategies that help mutuals and cooperatives better manage their solvency capital and meet their broader business objectives.

Speakers and panellists

  • Dominique Bourrat, Risk Dynamics (Chair)
  • David Simmons, Willis Re
  • Robert Rogers, Willis Re
  • Alain Flandrin, PartnerRe
  • Julien Skelton, NFU Mutual
  • French Mutual TBC

Please note there will be no charge for this event but registration in advance of the event will be essential. Places at this event are limited and so we recommend that you register your attendance as soon as possible. An online registration form is available for you to register quickly and easily.