Solvency ii Training and Presentations
from the Solvency ii Association
the largest Association
of Solvency ii Professionals in the world
First Certified Course: For the implementation of the Solvency ii
Directive
in the countries of the European Economic Area
Course Title
Preparing for the Solvency ii Directive of the EU
(3 days)
Objectives:
This course has been
designed
to provide with the knowledge and skills needed to understand and
support compliance with the Solvency ii Directive of the European
Union.
Target Audience:
This course is
intended
for managers, professionals and consultants that want to understand
the Solvency ii requirements and work in Solvency ii compliance
projects.
This course is
recommended
for senior managers and executives involved in risk and compliance.
About the Course
INTRODUCTION
·
The European Union’s Legislative Process. Directives and Regulations
·
The Financial Services Action Plan (FSAP) of the EU
·
Solvency ii
and the
Lamfalussy Process
·
Level 1:
Framework Principles
·
Level 2:
Implementation of Principles. Detailed Technical Measures
·
Level 3:
Strengthening Cooperation Among Regulators
·
Level 4:
Enforcement
·
Overview of the Solvency I framework
·
From Solvency I to Solvency II
·
Solvency II Key Players
·
Committee of European Insurance and Occupational Pension Supervisors
(CEIOPS)
·
European Insurance and Pension Committee (EIOPC)
·
CEA (Comité Européen des Assurances) - the European Insurance and
Reinsurance Federation.
·
The International Association of Insurance Supervisors (IAIS)
OVERVIEW OF THE SOLVENCY II DIRECTIVE
·
Solvency ii: An Overview
·
A Risk Based Approach
·
A Unified Legislative Basis for Prudential Regulation of Insurers
and Reinsurers
·
Risk-Based Capital Allocation
·
Pillar 1:
The Financial Resources Needed to be Considered Solvent
·
The Solvency Capital Requirement (SCR)
·
The Standard Approach
·
The Internal Model
·
The Collection of Additional Historical Data
·
External Data
·
The IT Challenge
·
The Minimum Capital Requirement (MCR)
·
Pillar 2
and the
Supervisory
Review Process
·
Own Risk and Solvency Assessment (ORSA)
·
ORSA
as an
internal assessment
process
·
ORSA
as a
supervisory tool
·
The role of the ORSA
- not a third solvency capital requirement
·
Pillar 3
and the Disclosure Requirements
·
Solvency and Financial Condition Report
THE SOLVENCY II DIRECTIVE
·
Scope
of the Application
·
Authorisation
·
Discussing some important definitions
·
General principles of supervision
·
Home vs. Host country
·
Information to be
provided for supervisory purposes
·
Capital Add-on
·
System of Governance
·
General Governance Requirements
·
Risk Management
·
Internal
Controls
·
Internal Audit
·
Actuarial Function
·
Outsourcing
· Own
Risk and Solvency Assessment
· Own
Risk and Solvency Assessment and CEIOPS
· Public
Disclosure
· Professional Secrecy
and Exchanges of Information
· Agreement
with Third Countries
·
·
Rules Relating to the Valuation of Assets and Liabilities, Technical
Provisions, Own Funds, Solvency Capital Requirement, Minimum Capital
Requirement and Investment Rules
·
Valuation of Assets and Liabilities
·
Calculation of Technical Provisions
·
Recoverables from Reinsurance Contracts and Special Purpose Vehicles
·
Own Funds
·
Determination, Classification, Eligibility of Own Funds
·
Solvency Capital Requirement
·
Requirement Using the Standard Formula or an Internal Model
·
Value-at-Risk
·
The SCR and the
Value-at-Risk
Measure Calibrated to a
99.5%
Confidence Level over a
1-year
Time Horizon.
·
Calculation of the Solvency Capital Requirement
·
Structure of the Standard Formula
·
Design of the Basic Solvency Capital Requirement
·
Capital requirement for operational risk
·
Full and Partial Internal Models
·
Calculation of the Minimum Capital Requirement
·
Insurance and Reinsurance Undertakings in Difficulty or in an
Irregular Situation
·
Identification and Notification of
Deteriorating Financial Conditions
by the Insurance and Reinsurance Undertaking
·
Non-Compliance
with the Solvency Capital Requirement
·
Non-Compliance
with the Minimum Capital Requirement
·
Supervisory Powers in Deteriorating Financial Conditions
·
Withdrawal of authorisation
·
Right of Establishment and Freedom to Provide Services
·
Conditions for
Branch Establishment
·
Branches Established Within the Community and Belonging to Insurance
or Reinsurance Undertakings whose Head Offices are Outside the
Community
·
Principles and Conditions of Authorisation
·
Equivalence
·
Subsidiaries
of Insurance and Reinsurance Undertakings Governed by the Laws of a
Third Country and Acquisitions of Holdings by such Undertakings
·
Third-Country Treatment of Community Insurance and Reinsurance
Undertakings
·
Supervision of Insurance and Reinsurance Undertakings in a Group
·
Group Supervision: Definitions, Cases of Application, Scope and
Levels
·
Supervision of Group Solvency
·
Choice of Calculation Method and General Principles
·
Choice of Method
·
Related Insurance and Reinsurance Undertakings
·
Intermediate Insurance Holding Companies
·
Related Third-Country Insurance and Reinsurance Undertakings
·
Related Credit Institutions, Investment Firms and Financial
Institutions
·
Calculation methods
·
Method 1 (Default method): Accounting Consolidation-Based Method
·
Group Internal Model
·
Method 2 (Alternative Method): Deduction and Aggregation
·
Third countries
·
Parent Undertakings Outside the Community - Verification of
Equivalence
·
Parent Undertakings Outside the Community - Absence of Equivalence
·
Parent Undertakings Outside the Community - Levels
·
Cooperation with Third Countries Supervisory Authorities
THE REINSURANCE DIRECTIVE
·
Directive 2005/68/EC of 16 November 2005 on Reinsurance
·
Reinsurance, Captive Reinsurance Undertakings, Finite Reinsurance
·
Authorisation
·
Principles and Methods of Financial Supervision
·
Supervision of Branches Established in Another Member State
·
Special Purpose Vehicles
·
Third Countries
·
Transposition
THE SOLVENCY II DIRECTIVE AND THE
NON-EEA
COUNTRIES
·
Solvency ii, the Reinsurance Directive and Countries of the
European Economic Area and
outside
the European Economic Area
CLOSING
·
The Impact of Solvency ii
·
Translating Complex Rules Into Daily Activities
·
Comparing and Contrasting Basel II and Solvency II
·
The Differences
·
What is next
-
The Level 2 - Technical measures
-
Solvency ii: A risk that can become an opportunity
Second Certified Course: For the implementation of the Solvency ii
Directive
in the countries outside the European Economic Area
“The treatment of third-country groups under the proposed Solvency
II legislation is a
problem
for US-based insurers who write business in the EEA:
- Under the proposal the US-held capital and the diversification
benefit of US groups’ worldwide business, including their
US-operations, will not be taken into account in the solvency
calculations of their EEA operations
unless the US supervisory system is recognised as “equivalent” under
Solvency II
This means that the cost of capital for US-based insurers will be
higher than that of EEA-based groups, resulting in a
nonlevel playing field,
making US insurers in the EEA less competitive.
- Under the proposed legislation, a European group supervisor will
have the
right to oblige
a US group to set up an EEA-insurance holding company, to facilitate
groupwide supervision of the EEA business. This could be very costly
for the business, further affecting the ability of these groups to
compete.”
Position Paper on Solvency II
The American Chamber of Commerce to the European Union (AmCham EU),
February 12th 2008
“The International Association of Insurance Supervisors (IAIS)
expects that the new supervisory scheme will provide useful input to
IAIS solvency initiatives as it will be applied by a large number of
insurance supervisors within the European Union.
It will inspire supervisors to rethink the way in which
transnational supervision is organised”
Michel Flamée, Chair of the IAIS Executive Committee
Established in 1994, the IAIS represents insurance regulators and
supervisors of some 190 jurisdictions
in nearly 140 countries.
Course Title
Preparing for Equivalence with the Solvency ii Directive of the
European Union
Understanding the Solvency ii directive of the EU and the
extraterritorial application
to non-EU countries
(3 days)
Objectives:
This course has been
designed
to provide with the knowledge and skills needed to understand the
Solvency ii and the Reinsurance directives of the EU, and
their extraterritorial application to non-EU countries.
Target Audience:
Many
non-EEA countries
have announced significant enhancements to their solvency and
disclosure regulations for insurance,
to achieve recognition as having equivalent regulatory standards to
those in Europe’s Solvency II Directive.
This course is
intended
for managers, professionals and consultants working in countries
outside the EEA, that want to understand the Solvency ii Equivalence
requirements.
This course is
intended
for managers, professionals and consultants working in groups whose
parent is located in a third country,
providing insurance services in the EEA (their EEA subsidiaries
meet the requirements imposed by Solvency II).
This course is
recommended
for senior managers and executives of non-EEA countries involved in
risk and compliance.
About the Course
INTRODUCTION
·
The European Union’s Legislative Process. Directives and Regulations
·
The Financial Services Action Plan (FSAP) of the EU
·
Solvency ii
and the
Lamfalussy Process
·
Level 1:
Framework Principles
·
Level 2:
Implementation of Principles. Detailed Technical Measures
·
Level 3:
Strengthening Cooperation Among Regulators
·
Level 4:
Enforcement
·
Overview of the Solvency I framework
·
From Solvency I to Solvency II
·
Solvency II Key Players
·
Committee of European Insurance and Occupational Pension Supervisors
(CEIOPS)
·
European Insurance and Pension Committee (EIOPC)
·
CEA (Comité Européen des Assurances) - the European Insurance and
Reinsurance Federation.
·
The International Association of Insurance Supervisors (IAIS)
OVERVIEW OF THE SOLVENCY II DIRECTIVE
·
Solvency ii: An Overview
·
A Risk Based Approach
·
A Unified Legislative Basis for Prudential Regulation of Insurers
and Reinsurers
·
Risk-Based Capital Allocation
·
Pillar 1:
The Financial Resources Needed to be Considered Solvent
·
The Solvency Capital Requirement (SCR)
·
The Standard Approach
·
The Internal Model
·
The Collection of Additional Historical Data
·
External Data
·
The IT Challenge
·
The Minimum Capital Requirement (MCR)
·
Pillar 2
and the
Supervisory
Review Process
·
Own Risk and Solvency Assessment (ORSA)
·
ORSA
as an
internal assessment
process
·
ORSA
as a
supervisory tool
·
The role of the ORSA
- not a third solvency capital requirement
·
Pillar 3
and the Disclosure Requirements
·
Solvency and Financial Condition Report
THE SOLVENCY II DIRECTIVE
·
Scope
of the Application
·
Authorisation
·
Discussing some important definitions
·
General principles of supervision
·
Home vs. Host country
·
Information to be
provided for supervisory purposes
·
Capital Add-on
·
System of Governance
·
General Governance Requirements
·
Risk Management
·
Internal
Controls
·
Internal Audit
·
Actuarial Function
·
Outsourcing
· Own
Risk and Solvency Assessment
· Own
Risk and Solvency Assessment and CEIOPS
· Public
Disclosure
· Professional Secrecy
and Exchanges of Information
· Agreement
with Third Countries
·
·
Rules Relating to the Valuation of Assets and Liabilities, Technical
Provisions, Own Funds, Solvency Capital Requirement, Minimum Capital
Requirement and Investment Rules
·
Valuation of Assets and Liabilities
·
Calculation of Technical Provisions
·
Recoverables from Reinsurance Contracts and Special Purpose Vehicles
·
Own Funds
·
Determination, Classification, Eligibility of Own Funds
·
Solvency Capital Requirement
·
Requirement Using the Standard Formula or an Internal Model
·
Value-at-Risk
·
The SCR and the
Value-at-Risk
Measure Calibrated to a
99.5%
Confidence Level over a
1-year
Time Horizon.
·
Calculation of the Solvency Capital Requirement
·
Structure of the Standard Formula
·
Design of the Basic Solvency Capital Requirement
·
Capital requirement for operational risk
·
Full and Partial Internal Models
·
Calculation of the Minimum Capital Requirement
·
Insurance and Reinsurance Undertakings in Difficulty or in an
Irregular Situation
·
Identification and Notification of
Deteriorating Financial Conditions
by the Insurance and Reinsurance Undertaking
·
Non-Compliance
with the Solvency Capital Requirement
·
Non-Compliance
with the Minimum Capital Requirement
·
Supervisory Powers in Deteriorating Financial Conditions
·
Withdrawal of authorisation
SOLVENCY II,
GROUP SUPERVISION AND THIRD COUNTRIES
·
Right of Establishment and Freedom to Provide Services
·
Conditions for
Branch Establishment
·
Branches Established Within the Community and Belonging to Insurance
or Reinsurance Undertakings whose Head Offices are Outside the
Community
·
Principles and Conditions of Authorisation
·
Equivalence
·
Subsidiaries
of Insurance and Reinsurance Undertakings Governed by the Laws of a
Third Country and Acquisitions of Holdings by such Undertakings
·
Third-Country Treatment of Community Insurance and Reinsurance
Undertakings
·
Supervision of Insurance and Reinsurance Undertakings in a Group
·
Group Supervision: Definitions, Cases of Application, Scope and
Levels
·
Supervision of Group Solvency
·
Choice of Calculation Method and General Principles
·
Choice of Method
·
Related Insurance and Reinsurance Undertakings
·
Intermediate Insurance Holding Companies
·
Related Third-Country Insurance and Reinsurance Undertakings
·
Related Credit Institutions, Investment Firms and Financial
Institutions
·
Calculation methods
·
Method 1 (Default method): Accounting Consolidation-Based Method
·
Group Internal Model
·
Method 2 (Alternative Method): Deduction and Aggregation
·
Third countries
·
Parent Undertakings Outside the Community - Verification of
Equivalence
·
Parent Undertakings Outside the Community - Absence of Equivalence
·
Parent Undertakings Outside the Community - Levels
·
Cooperation with Third Countries Supervisory Authorities
THE REINSURANCE DIRECTIVE
·
Directive 2005/68/EC of 16 November 2005 on Reinsurance
·
Reinsurance, Captive Reinsurance Undertakings, Finite Reinsurance
·
Authorisation
·
Principles and Methods of Financial Supervision
·
Supervision of Branches Established in Another Member State
·
Special Purpose Vehicles
·
Third Countries
·
Transposition
THE SOLVENCY II DIRECTIVE AND THE NON-EEA COUNTRIES
·
Solvency ii, the Reinsurance Directive and Countries outside the
European Economic Area
·
The
International Association of Insurance Supervisors (IAIS)
Defines a (Similar to Solvency ii)
3 Pillar Approach
to Supervision
·
The
Swiss Solvency Test (SST)
and Solvency ii: The basic principles are identical
·
Solvency ii, the Reinsurance Directive and the
Offshore Financial Centers (OFCs)
·
Case Studies
·
Solvency ii, the Reinsurance Directive and the
USA
·
The US National Association of Insurance Commissioners (NAIC) - the
Organization of State Insurance Regulators and Solvency ii
·
Solvency ii and Regulatory Arbitrage
CLOSING
·
The Impact of Solvency ii outside the EEA
·
The risk for major Offshore Financial Centers - for the countries
and the firms
·
The risk for third country reinsurance undertakings, captives, and
holding companies
·
Providing Insurance Services to the European Client
-
The Level 2 - Technical measures
-
Solvency ii: A risk that can become an opportunity
The course can be tailored to meet specific needs
Third
Course: For Captives
Course Title
Challenges and Opportunities for Captives after Solvency ii:
Equivalence and Compliance challenges for non- EU and EU captive
insurance companies
(1 day)
Objectives:
The seminar has been designed to provide with the skills needed to
understand the application on non-EU and EU
captives of the Solvency ii Directive.
Target Audience:
This course is
intended for board members and
senior executives involved in the decision making process and the
management of captives.
It is
highly recommended for risk and
compliance,
internal
control and internal audit
managers and
officers.
This course is
also highly recommended
for
captive
managers, captive service providers
and consultants.
About the Course
-
Introduction
-
Understanding the Solvency ii Directive
-
Who has to comply, who tries to be “equivalent” and why
-
Captive insurance and reinsurance undertakings after Solvency ii
-
Solvency ii: Not a captive-friendly framework, designed for large
multi-line insurance groups
-
Smaller mono-line insurers and reinsurers after Solvency ii
-
What is new, what is different for
captives
outside the European Economic Area
-
What is new, what is different for
captives of
the European Economic Area
-
EU business
of third-country domiciled
captives
-
European captives
-
Ireland, Guernsey, Luxembourg and the Isle of Man and the rest of
Europe
-
Captives based in Offshore Financial Centers, but owned by
non-insurance undertakings based in Europe
-
Captive reinsurers owned by European insurance groups
-
The Solvency Capital Requirement
-
Internal model, Standard formula, or Simplified method?
-
The choice of calculation method and the different Solvency
Capital Requirement
-
Simplifications and special treatment
-
How to avoid higher capital requirements
-
Solvency II related challenges for captives:
-
A. Concentration of assets
-
B. No diversified portfolio of investments
-
C. Only a few lines of business
-
D. High claims volatility
-
E. Statistically unreliable computations
-
F. Risks of catastrophe scenarios
-
Solvency II related advantages for captives:
-
A. The risk of being sued by the policyholder is low
-
B. The operational risk is low - few transactions, limited number
of policies
-
C. Outsourced activities
-
Do you need an Internal Model? Why? When? At What Cost?
-
The proportionality principle of
Solvency ii and what it means for captives
-
Pure/Single captives
-
Group captives
-
Rent-a-captives
-
Cell Captives
-
Board of Directors and Management
-
Need for more formal governance, systems and controls
-
Corporate governance rules
-
The responsibility of the Board of Directors for risk management,
internal control, internal audit and actuarial functions
-
The role and responsibility of management
-
Increased focus on risk management
-
Increased disclosures requirements
-
Administrative costs
-
Additional services from auditors and actuaries
-
Captives with day-to-day management outsourced
-
Captive service providers and increased expenses
-
Tomorrow
-
The Level 2 - Technical measures
-
Solvency ii: A risk that can become an opportunity
The Solvency ii Association has signed an exclusive worldwide partner
agreement with Solvency II Training Ltd,
so the Association will provide
Solvency II Training classes worldwide only in cooperation with Solvency II
Training Ltd.
Solvency II Training Ltd is a niche training
consultancy, specialising in the provision of Solvency II training
programs to organisations & individuals within the European Union
(EU), European Economic Area (EEA) & Non-EEA Countries, including the
Offshore Financial Centres (OFCs).
For Further Information or to
Register for one of our Solvency II Training courses contact:
Solvency II Training Ltd.
Level 33, 25 Canada Square
Canary Wharf, London E14 5LQ
Tel:
+44 (0) 207 060 3312
Fax: +44 (0) 207 681 3317
Email:
info@solvencyiitraining.eu
Web:
www.solvencyiitraining.eu
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