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Webinar - Solvency II - A Safe Passage for Insurers?

Start date

End date

November 16, 2011 November 16, 2011

Time

12 p.m. U.S. Eastern Time

Where

Online [Map it]

Details

James Orr, Chief Actuary for General Insurance at the Financial Services  Authority, United Kingdom, will present a basic introduction to Solvency II, the European harmonising directive that takes a risk-based and market-consistent approach to the future regulation of insurance companies. A major feature of Solvency II is the opportunity that it presents for firms to have their internal capital models approved for the purpose of setting regulatory "Pillar 1" capital. This presentation will discuss this important development, exploring analogies from other areas of risk management and the maritime industry in particular, the use of depth-finding sonar and the Plimsoll Line to control risks to shipping.

A key questions is whether Solvency II will help address the short-comings in existing accounting practices in insurance, where uncertainties in the measurement of liabilities frustrate comparisons between insurers and challenge investors in assessing both value and risk. With the prospect of consistent measurement through the "Solvency II Balance Sheet" and firms being able to more accurately measure their capital requirements, will this lead to an improvement in capital efficiency? The talk will then consider whether a greater focus on capital efficiency will lead to a convergence with banking practices and innovations, with unintended consequences for the management of risk in the insurance industry.

This webinar will last 60 to 75 minutes.