Global Risks 2009, a World Economic Forum Report, sets out the 36 major risks relating to Economic, Geopolitical, Environmental, Societal and Technological issues. Paricular focus is given to the effects of the global financial crisis that ocurred in 2008 and an assessment of how the focus risks interconnect with others and how they may evolve over time. To obtain a copy of the full report  click here

May 2009 – Solvency II

In September 2008, the FSA published Discussion Paper (DP) 08/4 Insurance Risk Management: The Path to Solvency II.

 The purpose of the DP was to highlight and explain the key elements of the Solvency II regime, with the aim of stimulating and helping UK insurers’ preparations.

One of the key changes is to move from the Individual Capital Adequacy Standards (ICAS) to Own Risk and Solvency Assessment (ORSA). This is not merely a change to capital calculations but about organisational change utilising Enterprise Risk Management principles. Companies need to have in place a risk management function, an actuarial function, a compliance function and an internal audit function. It is necessary to demonstrate there is an adequate and transparent organisation structure with responsibilities clearly allocated and appropriately segregated. All employees must share the responsibility for risk and the Directors must demonstrate that the awareness is across the whole organisation.

On 5 May 2009 the Solvency II Directive was officially adopted.

The implementation date for Solvency II is now definitely set at 31 October 2012 and it is essential for the UK insurance industry to fully engage now in preparing for the new regime. If firms are yet to do so, senior management should consider now the implications for their business and start planning immediately to ensure compliance with the new rules.

Firms should have completed or be in the process of completing a detailed gap analysis to identify any shortfalls in expected compliance with the emerging Solvency II requirements to enable appropriate actions to be taken on a timely basis.

To obtain a copy of the full report  click here