Insight & Analysis

The role of technology in risk management

Technology plays an important part in effective risk management, but it can’t absolve people’s responsibility to use it appropriately and intelligently. While technology, and computing power in particular, has enabled mankind to achieve great things, there are limitations. Human skill and judgement cannot be eradicated from the mix. More

Reserving risk, risk margins and solvency: re-tuning your mind

Solvency II, with its requirement for a one year view of reserving risk, raises fundamental questions about the way reserving risk is defined. The wider consequences of risk margins and solvency with simulation-based internal models are also a topic for debate. More

Tracking changes in the Directive

The Solvency II Directive was officially adopted on 5 May 2009 and incorporates a number of changes from the original draft. The following points have been adapted from the FSA’s Feedback Statement 09/01 and should also be considered alongside EMB’s original explanatory document ‘Understanding the Directive’. More  

Third wave of CEIOPS papers released

CEIOPS has released the third set of consultation papers relating to Level 2 implementation measures for Solvency II. The 16 papers, which cover topics including partial internal models, calibration of non-life underwriting risk and advice on simplifications have a response deadline of 1200 CET on 11 December 2009. More 

EMB release new Igloo modelling suite

EMB is pleased to announce the release of EMB Igloo™ 4.0, a brand new version of the insurance industry’s market-leading financial modelling platform. The expanded product suite will now be available in three editions, offering the flexibility and control of Igloo to organisations ranging from small businesses to multinationals. An Audit edition is also available to allow third parties to conduct independent audits of Igloo models. More 

FSA publishes internal model approval update

As part of its proposed handling of internal model approvals under Solvency II, the UK Financial Services Authority, has published the first in a proposed series of information updates. It reports on response to the deadline to apply to use an internal model and its revised timetable for reviewing and approving models prior to implementation in October 2012. The timetable includes a pilot pre-application process with four volunteer insurers. Full report

An insurance conundrum: The Internal Model or the Standard Formula?

This paper sets out some of the respective high level benefits of using the standard formula and internal model approaches.  These should at least be considered when constructing the business case either way.  They may also be useful to firms considering which areas of their internal model might be simplified by using the standard formula (the partial model approach).  More

CEIOPS releases latest wave of consultation papers

CEIOPS (Committee of European Insurance and Occupational Pensions Supervisors) has published no less than 25 consultation papers relating to Level 2 implementing measures for Solvency II. The deadline for responses is 11 September 2009. More

Markel uses EMB Igloo to prepare for Solvency II

Using Igloo, Markel has identified a path to achieve its ambition of integrated financial, management and capital planning. Along the way, and with EMB’s support, it is improving business management and understanding of issues such as natural catastrophe exposure, reinsurance purchase and capital allocation.  More 

FSA seeks to maintain momentum for Solvency II - May 2009

In the wake of the votes by the European Parliament and ECOFIN to approve the Solvency II Directive, the Financial Services Authority (FSA) in the UK has set some new targets for UK-based insurers in ‘Dear CEO’ type letters. More 

FSA feeds back on Solvency II paper - May 2009

The Financial Services Authority in the UK has published a feedback report – DP09/01 – in which it outlines the effects of changes in the economy and the Solvency II Directive since the publication of its discussion paper DP08/04 in September 2008 and reports on comments received from the insurance industry on the same report. The FSA has taken the opportunity to stress to insurers that implementation of the Directive is following the original timetable of October 2012 and that firms should have completed or be in the process of completing a gap analysis to identify shortfalls in compliance. More

CEIOPS pushes on with Solvency II implementation - May 2009

The Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) has produced a report ‘Lessons learned from the crisis (Solvency II and beyond)’ that examined some of the implications of the global economic downturn on how the Directive might be implemented. Our experts have analysed this report and summarised the key points. More 

Putting Solvency II into perspective for small and mid-size insurers - April 2009

Smaller national and regional insurers are typically among the best capitalised across Europe. Yet, even in a business climate which increasingly appears preoccupied with financial measures of health, Solvency II requires such companies to have a concerted plan of action up to implementation. Rather than regarding Solvency II as a regulatory burden, EMB believes the Directive offers great opportunities to those smaller firms willing to embrace them.  More

Looking beyond capital ratios to ORSA requirements of Solvency II - April 2009

The ORSA (Own Risk Solvency Assessment) requirements of the Directive pose a far greater challenge to insurers than the minimum and solvency capital requirements.More

Travelers use financial modelling to successfully comply to regulation - April 2009

Case study looking into how Travelers used financial modelling and EMB Igloo™ for regulatory compliance and ERM. More

QIS4 receives encouraging response - Nov 2008

CEIOPS has published its full report on the findings of QIS4. 1,412 companies, representing all 30 European Economic Area countries and including over 100 cross-border groups, took part in this round of Quantitative Impact Studies, up from 1,027 in QIS3. Participation of cross-border groups more than doubled to over 100 organisations. Read the full CEIOPS report.

Making the most of Solvency II

Guidance document aimed at helping you with the planning for and implementation of Solvency II. More

EMB helps RSA transform group strategy using ERM and financial modelling

Working with EMB, RSA has used ERM, supported by financial models, to help transform the management of the group. This has improved performance in all areas and significantly strengthened its financial position. More 

Action plans for Senior Management

The UK Financial Services Authority (FSA) has unveiled its important latest advisory paper on Solvency II. By publishing its detailed Discussion Paper ‘Insurance Risk Management: The Path to Solvency II’, it’s clear the FSA is very focused on driving the UK insurance industry to meet the forthcoming Solvency II requirements. Click here to read EMB’s analysis of this paper. Click here to read the FSA Paper.

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