All I want for Christmas is accurate, complete and appropriate data

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "All I want for Christmas is accurate, complete and appropriate data"

Transcription

1 Life conference and exhibition 2010 Jethro Green & Gordon Jennings All I want for Christmas is accurate, complete and appropriate data 7-9 November 2010 All I want for Christmas is accurate, complete and appropriate data - Jethro Green, FSA - Gordon Jennings, AVIVA The views expressed in this presentation are those of the presenters. 1 1

2 Agenda Policyholder data in the life industry Data requirements in Solvency II / TAS-D Aviva s Heritage project Case study: loyalty bonus Case study: unit linked whole of life Case study: non profit deferred annuities Lessons learnt Q&A 2 What is data? Facts or information usually collected from records, experience or observation TAS D, Board for Actuarial Standards all the information which is directly or indirectly needed in order to carry out a valuation of technical provisions Final Advice on Technical Provisions, Standard for Data Quality, y (former Consultation Paper 43), CEIOPS 2

3 TAS-D overview Standard for data used in preparing actuarial information Application: reports from 1 July most UK life actuarial work Assess, define and validate data Accurate Relevant Complete Incomplete / inaccurate data improved or supplemented? Document each stage above 4 Solvency II overview of data requirements Level 1: the Solvency II directive Member States shall ensure that insurance and reinsurance undertakings have internal processes and procedures in place to ensure the appropriateness, completeness and accuracy of the data used in the calculation of their technical provisions. Level 2: final advice from CEIOPS on: Technical Provisions Standard for data quality (former CP 43) Tests and Standards for Internal Models (former CP 56) 5 3

4 Accuracy, Appropriateness and Completeness of Data Technical Provisions (former CP43) Accurate Complete Appropriate Free from material mistakes, errors and omissions Recording is adequate, timely and consistent High level of confidence Credibility shown through use in decision-making Allows recognition of main homogeneous risks groups Enough granularity to identify trends and give full understanding of underlying risks Sufficient historical information available Suitable for purpose Relevant to portfolio of risks Data quality issues Sources of material mistakes, errors and omissions Human error IT failures Operational risk systems and processes System architecture weaknesses Several different systems in use Interface not fully automated Outdated systems Sales channel / outsourcing former CP43, CEIOPS 4

5 Challenges for the UK life firm Current situation Issues to consider Data processes Past errors Business logic not transparent Data cleaning Design of processes Systems Multiple systems Multiple locations Legacy systems Controls and validation Governance and documentation Poorly defined processes Data policy Data definitions (directory) Aviva: a brief history GA GA PM CU CGU CGNU Aviva NU 5

6 Aviva s Heritage project Migration project 20 significant administration systems 2.8 million policies Pensions Life Conventional Unit-linked Product lines closed to new business. 10 Aviva s Heritage project Outsourced: Admin Re (part of Swiss Re) Policy day-to-day administration (Alpha) Parallel reinsurance treaty Retained: Valuation and Accounting Ownership of book and customers Regulatory risks => Ongoing partnership 11 6

7 Case study 1: loyalty bonus Context Product feature to encourage continuity of premiums Popular in 1990s Competition between CU, GA and NU each sold its own variation: Added at claim or anniversary Some extremely complex, impractical to administer and, functionality not built at product launch 12 Case study 1: loyalty bonus Legacy System Identified as too complex to administer on the legacy system Manual methods used as alternative Hence not sustainable as volumes grew Low volumes until 2008 (many 10-year anniversaries) Volumes in force circa 175k (potentially due loyalty bonus during policy life cycle) 13 7

8 Case study 1: loyalty bonus Implications of the policy terms and conditions Claims stage: at claim, loyalty bonus is added based on no. of years premium slice has been paid for. Anniversary stage: on each qualifying policy anniversary, loyalty bonus is added if the premium has been paid for more than 10 years, or the units purchased are more than 10 years old. Data on the legacy system was not held in a format that allows us to calculate the loyalty bonus on the above terms. Data transformation required with some complexities rationalised: tough decisions made. 14 Case Study 1: loyalty bonus Slice 2: Subsequent incremental premium slice Slice 1: Premium slice at inception Total no of units = 1,000 no robust split on legacy system i.e. all in one pot, split 650 slice 1 & 350 slice 2 post migration on Alpha 15 8

9 Case study 1: loyalty bonus The outcome Data held in a robust form for both claims calculations and financial reporting. Automated application of loyalty bonus. Policyholder valuations up-to-date and accurate. Policies administered at least in line with terms and conditions i.e. no customer detriment. t 16 Case study 2: unit-linked whole of life Context Unit-linked whole of life assurance Contracts sold in 1990s by all four legacy companies Premium reviewable at 10 years, then every 5 years, then every 1 year at age 70 and beyond. No underwriting at review option to increase premium or reduce cover Easy to sell as seen as cheap life cover (initially!) More akin to renewable term assurance, premiums increase with age at review About 60k in force policies 17 9

10 Case study 2: unit-linked whole of life Monthly premium Policy year since inception 18 Case study 2: unit-linked whole of life Aviva s issue Insufficient functionality on legacy systems i.e. no trigger to perform the reviews automatically. Historic this meant some reviews were missed by the manual process. For reviews that did happen, no direct record

11 Case study 2: unit-linked whole of life Fixing the problem Catch-up exercise prior to migration Putting policyholders back in the position they would have been in, assuming the reviews had been carried out i.e. paying the missed premiums. Managing policyholder expectations a bigger jump at the next review. 20 Case study 2: unit-linked whole of life Outcome All policies up-to-date at point of migration Reviews triggered automatically Next review date is held as a data item makes valuation more robust 21 11

12 Case study 3: non-profit deferred annuities Context Bought-out occupational schemes Three legacy books with separate administration Some held on system, some manual records ( job cards ) with separate valuation database No direct link between the valuation and administration 13k policies directly impacted (in excess of 500m reserve) 22 Case study 3: non-profit deferred annuities The migration Significant data preparation and cleanse exercise Reconciliation between the valuation database and the physical records. Ensuring data on the new platform was robust for both administration and valuation Specifying ing requirements Keying the data Validation / Controls on data entry 23 12

13 Case study 3: non-profit deferred annuities Outcome Administration records now on system Automated and consistent calculations Release of reserves One integrated data source for valuation and administration automatic reconciliation 24 Data quality issues reviewable products deferred products product design multiple systems human error legacy systems outsourcing Heritage risk themes CEIOPS risk factors 13

14 The overriding theme Discipline design ongoing review product cycle implementation administration 26 Assessing your own risk Complexity of group / impact of acquisitions Complexity of product types / product concentration Legacy systems Controls around outsourcing Adequacy of audit Poorly designed processes Interface with valuation systems 27 14

15 Migrating data is like moving house and not just because it s one of the most stressful things you can do. Questions or comments? Expressions of individual views by members of The Actuarial Profession and its staff are encouraged. The views expressed in this presentation are those of the presenters

16 Data quality processes Former CP 43 (Technical Provisions) Data quality management Defining the data Assessment of the quality Resolution of the material problems identified Monitoring data quality Procedures on collection, storing and processing of data Former CP 56 (Internal Models) Data quality process Concept of data quality Validation Use of expert judgement Data updates (frequency and triggers) Data deficiency TAS D Former CP43 (Technical Provisions) Assessment of cause No but must state how it can be improved. Yes and also assess how to improve data quality. Modifying data /usingmargins Yes Yes Fixing the cause No Yes (if related to insufficient internal processes) 16

17 Appendix A: Loyalty bonus premium slice Average premium equals actual premium where there is no premium change during the year Average premium does not equal actual premium where there is a premium change during the year Premium Payment History CUPAS Slices Slice 1 40pm for 48 months Slice 2 60pm for 37 months Slice 3 60pm for 19 months 100pm for months pm for months pm for months pm for months pm for months pm for months Alpha Slices Slice 1 70pm for 48 months Slice 2 30pm for 36 months Slice 3 10pm for 24 months Slice 4 50pm for 12 months 32 Appendix B: Loyalty bonus premium slice Anniversary stage loyalty bonus should be paid out on units in: A as more than ten payments have been made B as although less ten payments have been made units have been held for more than ten years. On Alpha units in A, B and C will all receive loyalty bonus as they are all over ten years in duration. D does not receive loyalty bonus in this example. 17

Outsourcing. and the Aviva experience. Life conference and exhibition 2010 Andrew James and Tony Fathers. 7-9 November 2010

Outsourcing. and the Aviva experience. Life conference and exhibition 2010 Andrew James and Tony Fathers. 7-9 November 2010 Life conference and exhibition 2010 Andrew James and Tony Fathers Outsourcing and the Aviva experience 7-9 November 2010 Agenda What does outsourcing really mean? Why outsource? And what are the disadvantages?

More information

Guidance Note GGN 220.6 Insurance Risk

Guidance Note GGN 220.6 Insurance Risk Guidance Note GGN 220.6 Insurance Risk 1. An insurer s risk management framework must address insurance risk. 2. Insurance risk may be defined as the risk that inadequate or inappropriate underwriting,

More information

Solvency II data requirements Raising the Bar

Solvency II data requirements Raising the Bar Solvency II data requirements Raising the Bar Rakesh Patel & Harj Cheema Agenda 1. 1 Recap of Solvency II data requirements 2. 2 Raising the bar challenges faced 3. 3 The role of tools and technology 4.

More information

Insurance Guidance Note No. 14 System of Governance - Insurance Transition to Governance Requirements established under the Solvency II Directive

Insurance Guidance Note No. 14 System of Governance - Insurance Transition to Governance Requirements established under the Solvency II Directive Insurance Guidance Note No. 14 Transition to Governance Requirements established under the Solvency II Directive Date of Paper : 31 December 2013 Version Number : V1.00 Table of Contents General governance

More information

DATA AUDIT: Scope and Content

DATA AUDIT: Scope and Content DATA AUDIT: Scope and Content The schedule below defines the scope of a review that will assist the FSA in its assessment of whether a firm s data management complies with the standards set out in the

More information

Business Process Outsourcing Life Insurance

Business Process Outsourcing Life Insurance Business Process Outsourcing Life Insurance Life Insurance Challenges Life Insurers are facing market shrinkage, increased customer volatility, cost pressure and ageing IT systems MARKET Dampened demand

More information

Solvency II Data audit report guidance. March 2012

Solvency II Data audit report guidance. March 2012 Solvency II Data audit report guidance March 2012 Contents Page Introduction Purpose of the Data Audit Report 3 Report Format and Submission 3 Ownership and Independence 4 Scope and Content Scope of the

More information

Subject SA2 Life Insurance Specialist Applications Syllabus

Subject SA2 Life Insurance Specialist Applications Syllabus Subject SA2 Life Insurance Specialist Applications Syllabus for the 2015 exams 1 June 2014 Aim The aim of the Life Insurance Specialist Applications subject is to instil in the successful candidates the

More information

Windsor Life Assurance Company Limited. Windsor Life With-Profit Fund. Principles and Practices of Financial Management

Windsor Life Assurance Company Limited. Windsor Life With-Profit Fund. Principles and Practices of Financial Management Windsor Life Assurance Company Limited Windsor Life With-Profit Fund Principles and Practices of Financial Management July 2011 Registered in England No. 754167. Registered Office: Windsor House, Telford

More information

Actuarial Risk Management

Actuarial Risk Management ARA syllabus Actuarial Risk Management Aim: To provide the technical skills to apply the principles and methodologies studied under actuarial technical subjects for the identification, quantification and

More information

NAPF - PENSION BUY-INS AND BUY-OUTS. Harry Harper, FIA. June 2014

NAPF - PENSION BUY-INS AND BUY-OUTS. Harry Harper, FIA. June 2014 NAPF - PENSION BUY-INS AND BUY-OUTS Harry Harper, FIA June 2014 Buy-ins and buy-outs Agenda Insurance market development in 2014 Bulk annuity and investments Purchasing a bulk annuity earlier Data preparation

More information

SOA 2012 Life & Annuity Symposium May 21-22, 2012. Session 31 PD, Life Insurance Illustration Regulation: 15 Years Later

SOA 2012 Life & Annuity Symposium May 21-22, 2012. Session 31 PD, Life Insurance Illustration Regulation: 15 Years Later SOA 2012 Life & Annuity Symposium May 21-22, 2012 Session 31 PD, Life Insurance Illustration Regulation: 15 Years Later Moderator: Kurt A. Guske, FSA, MAAA Presenters: Gayle L. Donato, FSA, MAAA Donna

More information

Milliman Long-Term Care Services. Industry-Leading Actuarial Services for Long-Term Care Insurance Products

Milliman Long-Term Care Services. Industry-Leading Actuarial Services for Long-Term Care Insurance Products Industry-Leading Actuarial Services for Long-Term Care Insurance Products A Long-Term Commitment to Long-Term Care Whether you re entering the long-term care (LTC) insurance market for the first time or

More information

Fifth Quantitative Impact Study of Solvency II (QIS5)

Fifth Quantitative Impact Study of Solvency II (QIS5) Fifth Quantitative Impact Study of Solvency II (QIS5) Guidance on the treatment of German accident insurance with guaranteed premium repayment in the solvency balance sheet of QIS5 Introduction The UBR

More information

Treatment of technical provisions under Solvency II

Treatment of technical provisions under Solvency II Treatment of technical provisions under Solvency II Quantitative methods, qualitative requirements and disclosure obligations Authors Martin Brosemer Dr. Susanne Lepschi Dr. Katja Lord Contact solvency-solutions@munichre.com

More information

Introduction to Solvency II

Introduction to Solvency II Introduction to Solvency II Tim Edwards Gavin Dunkerley 24 th September 2008 Introduction The primary purpose of this presentation is to explain what Solvency II is and why it is important We also hope

More information

Financial Review. 16 Selected Financial Data 18 Management s Discussion and Analysis of Financial Condition and Results of Operations

Financial Review. 16 Selected Financial Data 18 Management s Discussion and Analysis of Financial Condition and Results of Operations 2011 Financial Review 16 Selected Financial Data 18 Management s Discussion and Analysis of Financial Condition and Results of Operations 82 Quantitative and Qualitative Disclosures About Market Risk 90

More information

Solvency II Standard Model for Health Insurance Business

Solvency II Standard Model for Health Insurance Business Solvency II Standard Model for Health Insurance Business Hanno Reich KPMG AG, Germany kpmg Agenda 1. Solvency II Project 2. Future regulatory framework (Solvency II) 3. Calculation of Solvency Capital

More information

FINANCIAL REVIEW. 18 Selected Financial Data 20 Management s Discussion and Analysis of Financial Condition and Results of Operations

FINANCIAL REVIEW. 18 Selected Financial Data 20 Management s Discussion and Analysis of Financial Condition and Results of Operations 2012 FINANCIAL REVIEW 18 Selected Financial Data 20 Management s Discussion and Analysis of Financial Condition and Results of Operations 82 Quantitative and Qualitative Disclosures About Market Risk 88

More information

Insurance (Valuation of Long Term Liabilities) Regulations 2007 Consultative Document

Insurance (Valuation of Long Term Liabilities) Regulations 2007 Consultative Document Insurance (Valuation of Long Term Liabilities) Regulations 2007 Consultative Document 1. Introduction The Insurance and Pensions Authority has released a consultative draft of the Insurance (Valuation

More information

POLICE MUTUAL ASSURANCE SOCIETY. Principles and Practices of Financial Management July 2015. PPFM v16.4

POLICE MUTUAL ASSURANCE SOCIETY. Principles and Practices of Financial Management July 2015. PPFM v16.4 PPFM v16.4 1. INTRODUCTION... 1 1.1. Purpose and History... 1 1.2. Fair and effective management... 2 1.2. Overview... 3 1.3. Principles of Financial Management... 4 1.4. Practices of Financial Management...

More information

ACCOUNTING STANDARDS BOARD DECEMBER 2004 FRS 27 27LIFE ASSURANCE STANDARD FINANCIAL REPORTING ACCOUNTING STANDARDS BOARD

ACCOUNTING STANDARDS BOARD DECEMBER 2004 FRS 27 27LIFE ASSURANCE STANDARD FINANCIAL REPORTING ACCOUNTING STANDARDS BOARD ACCOUNTING STANDARDS BOARD DECEMBER 2004 FRS 27 27LIFE ASSURANCE FINANCIAL REPORTING STANDARD ACCOUNTING STANDARDS BOARD Financial Reporting Standard 27 'Life Assurance' is issued by the Accounting Standards

More information

CEIOPS-DOC-45/09. (former CP 53) October 2009

CEIOPS-DOC-45/09. (former CP 53) October 2009 CEIOPS-DOC-45/09 CEIOPS Advice for Level 2 Implementing Measures on Solvency II: SCR standard formula - Article 111 (f) Operational Risk (former CP 53) October 2009 CEIOPS e.v. Westhafenplatz 1-60327 Frankfurt

More information

ORSA for Insurers A Global Concept

ORSA for Insurers A Global Concept ORSA for Insurers A Global Concept Stuart Wason, FSA, FCIA, MAAA, CERA Senior Director, Actuarial Division Office of the Superintendent of Financial Institutions Canada (OSFI) Table of Contents Early developments

More information

GRF_115_1: Premiums Liabilities - Insurance Risk Charge

GRF_115_1: Premiums Liabilities - Insurance Risk Charge GRF_115_1: Premiums Liabilities - Insurance Risk Charge These instructions must be read in conjunction with the general instruction guide. Explanatory notes Direct business Sections 1A, 1B and 1C are to

More information

APRA REVIEW OF UNIT PRICING PRACTICES

APRA REVIEW OF UNIT PRICING PRACTICES APRA REVIEW OF UNIT PRICING PRACTICES Unitisation is the process by which a pool of assets are broken into portions of ownership (units), which are conceptually similar to shares in a company. The process

More information

Prudential Practice Guide

Prudential Practice Guide Prudential Practice Guide GPG 240 Insurance Risk February 2006 www.apra.gov.au Australian Prudential Regulation Authority Disclaimer and copyright This prudential practice guide is not legal advice and

More information

INSTITUTE AND FACULTY OF ACTUARIES EXAMINATION

INSTITUTE AND FACULTY OF ACTUARIES EXAMINATION INSTITUTE AND FACULTY OF ACTUARIES EXAMINATION 30 April 2015 (am) Subject SA2 Life Insurance Specialist Applications Time allowed: Three hours INSTRUCTIONS TO THE CANDIDATE 1. Enter all the candidate and

More information

Making it clear Reporting and disclosure in the Solvency II world

Making it clear Reporting and disclosure in the Solvency II world Making it clear Reporting and disclosure in the Solvency II world The Solvency II Directive is built around the 3 pillars of quantitative requirements (Pillar 1), supervisory review (Pillar 2) and disclosure

More information

BRIEFING NOTE. With-Profits Policies

BRIEFING NOTE. With-Profits Policies BRIEFING NOTE With-Profits Policies This paper has been prepared by The Actuarial Profession to explain how withprofits policies work. It considers traditional non-pensions endowment policies in some detail

More information

GN8: Additional Guidance on valuation of long-term insurance business

GN8: Additional Guidance on valuation of long-term insurance business GN8: Additional Guidance on valuation of long-term insurance business Classification Practice Standard MEMBERS ARE REMINDED THAT THEY MUST ALWAYS COMPLY WITH THE PROFESSIONAL CONDUCT STANDARDS (PCS) AND

More information

Actuarial Report. On the Proposed Transfer of the Life Insurance Business from. Asteron Life Limited. Suncorp Life & Superannuation Limited

Actuarial Report. On the Proposed Transfer of the Life Insurance Business from. Asteron Life Limited. Suncorp Life & Superannuation Limited Actuarial Report On the Proposed Transfer of the Life Insurance Business from Asteron Life Limited to Suncorp Life & Superannuation Limited Actuarial Report Page 1 of 47 1. Executive Summary 1.1 Background

More information

Creating a compliant data management framework: the regulatory perspective

Creating a compliant data management framework: the regulatory perspective Creating a compliant data management framework: the regulatory perspective Paolo Cadoni EIOPA Internal Model Committee Chair Life & Pension Risk Nordics - Stockholm, 15 th May 2012 Outline The importance

More information

SWAZILAND ROYAL INSURANCE CORPORATION ANNUAL RESULTS

SWAZILAND ROYAL INSURANCE CORPORATION ANNUAL RESULTS SWAZILAND ROYAL INSURANC CORPORATION ANNUAL RSULTS Overview of 2011 The Swaziland Royal Insurance Corporation s (The Corporation) main business activity is the provision of short-term insurance, life assurance

More information

GN18: Actuarial Reporting for U.K. General Insurance Companies writing US Regulated Business

GN18: Actuarial Reporting for U.K. General Insurance Companies writing US Regulated Business GN18: Actuarial Reporting for U.K. General Insurance Companies writing US Regulated Business Classification Recommended Practice MEMBERS ARE REMINDED THAT EVERY GUIDANCE NOTE MUST BE READ IN THE CONTEXT

More information

Audit Quality Thematic Review

Audit Quality Thematic Review Thematic Review Professional discipline Financial Reporting Council December 2014 Audit Quality Thematic Review The audit of loan loss provisions and related IT controls in banks and building societies

More information

Life Insurance Regulations Everything you need to know*

Life Insurance Regulations Everything you need to know* Life Insurance Regulations Everything you need to know* 13.02.2013 *not really, but hopefully a good start! Agenda Life insurance Life reinsurance PRSAs Other 2 February 13, 2013 Regulations Acts Primary

More information

Capital extractions by run-off firms within the general insurance sector

Capital extractions by run-off firms within the general insurance sector Supervisory Statement SS4/14 Capital extractions by run-off firms within the general insurance sector April 2014 Prudential Regulation Authority 20 Moorgate London EC2R 6DA Prudential Regulation Authority,

More information

THE EQUITABLE LIFE ASSURANCE SOCIETY

THE EQUITABLE LIFE ASSURANCE SOCIETY Annual FSA Insurance Returns for the year ended 31 December 2004 Appendices 9.1, 9.3, 9.4 & 9.6 from the Interim Prudential Sourcebook for Insurers Registered Office 20-22 Bedford Row, London, WC1R 4JS

More information

VALUATION OF LIFE INSURANCE POLICIES MODEL REGULATION (Including the Introduction and Use of New Select Mortality Factors)

VALUATION OF LIFE INSURANCE POLICIES MODEL REGULATION (Including the Introduction and Use of New Select Mortality Factors) Table of Contents Model Regulation Service October 2009 VALUATION OF LIFE INSURANCE POLICIES MODEL REGULATION (Including the Introduction and Use of New Select Mortality Factors) Section 1. Section 2.

More information

Expense Reduction in the Insurance Industry

Expense Reduction in the Insurance Industry Expense Reduction in the Insurance Industry David Holland 27/3/2013 2013 Towers Watson. All rights reserved. Agenda The Need for Expense Reduction in Insurance Pressures on insurers results Market activity

More information

EIOPACP 13/011. Guidelines on PreApplication of Internal Models

EIOPACP 13/011. Guidelines on PreApplication of Internal Models EIOPACP 13/011 Guidelines on PreApplication of Internal Models EIOPA Westhafen Tower, Westhafenplatz 1 60327 Frankfurt Germany Tel. + 49 6995111920; Fax. + 49 6995111919; site: www.eiopa.europa.eu Guidelines

More information

Subject SA2 Life Insurance Specialist Applications. Syllabus. for the 2013 Examinations. Institute and Faculty of Actuaries.

Subject SA2 Life Insurance Specialist Applications. Syllabus. for the 2013 Examinations. Institute and Faculty of Actuaries. Subject SA2 Life Insurance Specialist Applications Syllabus for the 2013 Examinations 1 June 2012 Institute and Faculty of Actuaries Aim The aim of the Life Insurance Specialist Applications subject is

More information

Supervisory Statement SS43/15 Non-Solvency II insurance companies Capital assessments. November 2015

Supervisory Statement SS43/15 Non-Solvency II insurance companies Capital assessments. November 2015 Supervisory Statement SS43/15 Non-Solvency II insurance companies Capital assessments November 2015 Prudential Regulation Authority 20 Moorgate London EC2R 6DA Prudential Regulation Authority, registered

More information

CEIOPS-DOC-22/09. (former CP27) October 2009. CEIOPS e.v. Westhafenplatz 1-60327 Frankfurt Germany Tel. + 49 69-951119-20

CEIOPS-DOC-22/09. (former CP27) October 2009. CEIOPS e.v. Westhafenplatz 1-60327 Frankfurt Germany Tel. + 49 69-951119-20 CEIOPS-DOC-22/09 CEIOPS Advice for Level 2 Implementing Measures on Solvency II: Technical Provisions - Lines of business on the basis of which (re)insurance obligations are to be segmented (former CP27)

More information

THE EQUITABLE LIFE ASSURANCE SOCIETY

THE EQUITABLE LIFE ASSURANCE SOCIETY THE EQUITABLE LIFE ASSURANCE SOCIETY Annual PRA Insurance Returns for the year ended 31 December 2013 Appendices 9.1, 9.3, 9.4, 9.4A & 9.6 from the Interim Prudential Sourcebook for Insurers Registered

More information

GUIDELINES CONTINGENCY PLAN FOR INSURERS

GUIDELINES CONTINGENCY PLAN FOR INSURERS GUIDELINES ON CONTINGENCY PLAN FOR INSURERS (Issued under section 7 (1) (a) of the Financial Services Act 2007 and section 130 of the Insurance Act 2005) February 2008 1 1. INTRODUCTION 1.1. The Insurance

More information

Glossary of insurance terms

Glossary of insurance terms Glossary of insurance terms I. Insurance Products Annuity is a life insurance policy where an insurance company pays an income stream to an individual, usually until death, in exchange for the payment

More information

White Paper. Trends in Hospital Professional Liability Operations. Macro Trends in Hospital Insurance Operations

White Paper. Trends in Hospital Professional Liability Operations. Macro Trends in Hospital Insurance Operations Trends in Hospital Professional Liability Operations White Paper Hospital systems today are facing an increasingly difficult operating environment. Revenues and reimbursements are decreasing, the capital

More information

Marine and General Mutual Life Assurance Society

Marine and General Mutual Life Assurance Society Marine and General Mutual Life Assurance Society Policyholder Information Booklet Proposed transfer of the long-term insurance business of Marine and General Mutual Life Assurance Society to Scottish Friendly

More information

19/10/2012. How do you monitor. (...And why should you?) CAS Annual Meeting - Henry Jupe

19/10/2012. How do you monitor. (...And why should you?) CAS Annual Meeting - Henry Jupe www.pwc.com How do you monitor data quality? (...And why should you?) CAS Annual Meeting - November 2012 Henry Jupe Antitrust notice The Casualty Actuarial Society is committed to adhering strictly to

More information

CEIOPS Advice for Level 2 Implementing Measures on Solvency II: Articles 120 to 126. Tests and Standards for Internal Model Approval

CEIOPS Advice for Level 2 Implementing Measures on Solvency II: Articles 120 to 126. Tests and Standards for Internal Model Approval CEIOPS-DOC-48/09 CEIOPS Advice for Level 2 Implementing Measures on Solvency II: Articles 120 to 126 Tests and Standards for Internal Model Approval (former Consultation Paper 56) October 2009 CEIOPS e.v.

More information

Own Risk and Solvency Assessment

Own Risk and Solvency Assessment A closer look at Solvency II: The Actuary s role in the ORSA Visesh Gosrani, Barbara Illingworth Own Risk and Solvency Assessment 2010 The Actuarial Profession www.actuaries.org.uk Agenda Introduction

More information

Rating Methodology for Domestic Life Insurance Companies

Rating Methodology for Domestic Life Insurance Companies Rating Methodology for Domestic Life Insurance Companies Introduction ICRA Lanka s Claim Paying Ability Ratings (CPRs) are opinions on the ability of life insurance companies to pay claims and policyholder

More information

Sustained leadership in life insurance. September 2011

Sustained leadership in life insurance. September 2011 Sustained leadership in life insurance September 2011 Agenda Industry overview and outlook Recent market developments ICICI Prudential: Strategic elements Performance snapshot 2 Agenda Industry overview

More information

National specific template Log NS.09 best estimate assumptions for life insurance risks

National specific template Log NS.09 best estimate assumptions for life insurance risks National specific template Log NS.09 best estimate assumptions for life insurance risks CELL(S) ITEM INSTRUCTIONS N/A General Comment This template is applicable to life insurers and life reinsurers. The

More information

Royal Scottish Assurance Plc

Royal Scottish Assurance Plc Registered office: 24/25 St Andrews Square, Edinburgh, EH2 1AF 31st December 2004 Annual FSA Insurance Returns for the year ended 31 December 2010 Returns under the Accounts and Statements Rules Index

More information

Central Bank of Ireland Guidelines on Preparing for Solvency II Pre-application for Internal Models

Central Bank of Ireland Guidelines on Preparing for Solvency II Pre-application for Internal Models 2013 Central Bank of Ireland Guidelines on Preparing for Solvency II Pre-application for Internal Models 1 Contents 1 Context... 1 2 General... 2 3 Guidelines on Pre-application for Internal Models...

More information

FRAMEWORK FOR CONSULTATION OF CEIOPS AND OTHER STAKEHOLDERS ON SOLVENCY II

FRAMEWORK FOR CONSULTATION OF CEIOPS AND OTHER STAKEHOLDERS ON SOLVENCY II Annex 1 to MARKT/2506/04-EN FRAMEWORK FOR CONSULTATION OF CEIOPS AND OTHER STAKEHOLDERS ON SOLVENCY II Purpose of this document The purpose of this paper is to consult the Insurance Committee on a framework

More information

Consultation Paper CP7/13. Capital extractions by run-off firms within the general insurance sector

Consultation Paper CP7/13. Capital extractions by run-off firms within the general insurance sector Consultation Paper CP7/13 Capital extractions by run-off firms within the general insurance sector September 2013 Prudential Regulation Authority 20 Moorgate London EC2R 6DA Prudential Regulation Authority,

More information

Report on the Lapse and Mortality Experience of Post-Level Premium Period Term Plans

Report on the Lapse and Mortality Experience of Post-Level Premium Period Term Plans Report on the Lapse and Mortality Experience of Post-Level Premium Period Term Plans Sponsored by The Product Development Section and The Committee on Life Insurance Research of the Society of Actuaries

More information

Morgan Stanley 10th Annual European Financials Conference. Mark Wilson Chief Executive Officer. March 2014

Morgan Stanley 10th Annual European Financials Conference. Mark Wilson Chief Executive Officer. March 2014 Morgan Stanley 10th Annual European Financials Conference Mark Wilson Chief Executive Officer March 2014 1 Disclaimer Cautionary statements: This should be read in conjunction with the documents filed

More information

Delegated authority: Outsourcing in the general insurance market

Delegated authority: Outsourcing in the general insurance market Financial Conduct Authority Delegated authority: Outsourcing in the general insurance market June 2015 Thematic Review TR15/7 Delegated authority: Outsourcing in the general insurance market TR15/7 Contents

More information

Reduced Total Cost of Ownership (TCO) and Increased Scalability with a New Accounting Solution

Reduced Total Cost of Ownership (TCO) and Increased Scalability with a New Accounting Solution Case Study Reduced Total Cost of Ownership (TCO) and Increased Scalability with a New Accounting Solution Abstract Infosys partnered with a global specialty insurance and re-insurance company to implement

More information

5/10/2010. IP Sales down in 2009. The health of income protection, today and tomorrow Peter Le Beau, Teresa Fritz, Julie Hopkins and Neil McCarthy

5/10/2010. IP Sales down in 2009. The health of income protection, today and tomorrow Peter Le Beau, Teresa Fritz, Julie Hopkins and Neil McCarthy The health of income protection, today and tomorrow Peter Le Beau, Teresa Fritz, Julie Hopkins and Neil McCarthy Income Protection a life at the crossroads Peter Le Beau IP Sales down in 2009 Swiss Re

More information

OECD-Asia Regional Seminar: Enhancing Transparency and Monitoring of Insurance Markets

OECD-Asia Regional Seminar: Enhancing Transparency and Monitoring of Insurance Markets OECD-Asia Regional Seminar: Enhancing Transparency and Monitoring of Insurance Markets Regional Experience: Hong Kong Office of the Commissioner of Insurance Financial Services and the Treasury Bureau

More information

GN5: The Prudential Supervision outside the UK of Long-Term Insurance Business

GN5: The Prudential Supervision outside the UK of Long-Term Insurance Business GN5: The Prudential Supervision outside the UK of Long-Term Insurance Business Classification Recommended Practice MEMBERS ARE REMINDED THAT THEY MUST ALWAYS COMPLY WITH THE PROFESSIONAL CONDUCT STANDARDS

More information

CIG PANNONIA LIFE INSURANCE PLC.

CIG PANNONIA LIFE INSURANCE PLC. CIG PANNONIA LIFE INSURANCE PLC. QUARTERLY PROSPECTUS II. QUARTER 2011. 25 August 2011. 1. Summary CIG Pannonia Life Insurance Plc. (hereinafter: Issuer) publishes its quarterly prospectus today. The purpose

More information

Guidelines on preparation for and management of a financial crisis

Guidelines on preparation for and management of a financial crisis CEIOPS-DOC-15/09 26 March 2009 Guidelines on preparation for and management of a financial crisis in the Context of Supplementary Supervision as defined by the Insurance Groups Directive (98/78/EC) and

More information

Regulations in General Insurance. Solvency II

Regulations in General Insurance. Solvency II Regulations in General Insurance Solvency II Solvency II What is it? Solvency II is a new risk-based regulatory requirement for insurance, reinsurance and bancassurance (insurance) organisations that operate

More information

January March 2015 1:4 2:4 3:4 4:4. Folksam

January March 2015 1:4 2:4 3:4 4:4. Folksam January 1:4 2:4 3:4 4:4 Folksam 1 Prepared for the future Folksam continue to build up its economic strength over the first three months of the year. This is particularly important at the moment as we

More information

Solvency II Detailed guidance notes

Solvency II Detailed guidance notes Solvency II Detailed guidance notes March 2010 Section 1 - System of governance Section 1: System of Governance Overview This section outlines the Solvency II requirements for an effective system of governance,

More information

GUIDELINES ON THE CLASSIFICATION AND IMPAIRMENT PROVISIONS FOR LOANS / FINANCING FOR LABUAN BANKS

GUIDELINES ON THE CLASSIFICATION AND IMPAIRMENT PROVISIONS FOR LOANS / FINANCING FOR LABUAN BANKS GUIDELINES ON THE CLASSIFICATION AND IMPAIRMENT PROVISIONS FOR LOANS / FINANCING FOR LABUAN BANKS 1.0 Introduction 1.1 The Guidelines set out the minimum requirements on the classification of impaired

More information

Guidelines on the valuation of technical provisions

Guidelines on the valuation of technical provisions EIOPA-BoS-14/166 EN Guidelines on the valuation of technical provisions EIOPA Westhafen Tower, Westhafenplatz 1-60327 Frankfurt Germany - Tel. + 49 69-951119-20; Fax. + 49 69-951119-19; email: info@eiopa.europa.eu

More information

SUMMARY OF ACRONYMS 3. 1. INTRODUCTION 5 Background 5 Reliances and Limitations 5 Information considered 5 Regulatory and Professional Guidance 6

SUMMARY OF ACRONYMS 3. 1. INTRODUCTION 5 Background 5 Reliances and Limitations 5 Information considered 5 Regulatory and Professional Guidance 6 Supplementary Report of the Independent Expert on the terms of the proposed Insurance Business Scheme for the transfer of to 11 Old Jewry London, EC2R 8DU United Kingdom Prepared by: JL McKenzie, FFA Tel

More information

Hamilton Life Assurance Company Limited

Hamilton Life Assurance Company Limited Hamilton Life Assurance Company Limited Registered office: 2 Rougier Street, York, YO90 1UU Annual FSA Insurance 31st December Returns 2004 for the ended 31 December 2009 FN 02 001 Returns under the Accounts

More information

BERMUDA MONETARY AUTHORITY

BERMUDA MONETARY AUTHORITY BERMUDA MONETARY AUTHORITY INSURANCE SUPERVISION DEPARTMENT GUIDANCE NOTES STANDARDS AND APPLICATION FRAMEWORK FOR THE USE OF INTERNAL CAPITAL MODELS FOR REGULATORY CAPITAL PURPOSES - REVISED - September

More information

FSA Retail Conduct Risk Outlook 2012

FSA Retail Conduct Risk Outlook 2012 March 2012 FSA Retail Conduct Risk Outlook 2012 Summary The FSA has published its Retail Conduct Risk Outlook (RCRO) for 2012. The RCRO sets out the FSA s assessment of the 15 most significant retail conduct

More information

Actuarial Guidance Note 9: Best Estimate Assumptions

Actuarial Guidance Note 9: Best Estimate Assumptions ACTUARIAL SOCIETY OF HONG KONG Actuarial Guidance Note 9: Best Estimate Assumptions 1. BACKGROUND AND PURPOSE 1.1 Best estimate assumptions are an essential and important component of actuarial work. The

More information

APS2 The Prudential Supervision of Long-Term Insurance Business. Definitions. Legislation or Authority. Application. General

APS2 The Prudential Supervision of Long-Term Insurance Business. Definitions. Legislation or Authority. Application. General APS2 The Prudential Supervision of Long-Term Insurance Business Classification Mandatory Definitions Insurer Liabilities to policyholders Long-term insurance business The insurance company or other organisation

More information

The ROLE of the ACTUARY in the LIFE, PENSION and SOCIAL SECURITY SECTORS

The ROLE of the ACTUARY in the LIFE, PENSION and SOCIAL SECURITY SECTORS The ROLE of the ACTUARY in the LIFE, PENSION and SOCIAL SECURITY SECTORS First CIS Actuaries Conference Fifth RAMI International Conference Moscow, 27-28 November 2008 Chris Daykin Chief Executive, IAA

More information

Life Modeling. Beyond Solvency II risk management unplugged. PillarOne Conference in Brussels, April 1st and 2nd 2009

Life Modeling. Beyond Solvency II risk management unplugged. PillarOne Conference in Brussels, April 1st and 2nd 2009 Life Modeling Beyond Solvency II risk management unplugged PillarOne Conference in Brussels, April 1st and 2nd 2009 by Jon Bardola FS-Consulta GmbH, Switzerland Agenda Motivation for an open source EV

More information

Life's cheap, but who's buying?

Life's cheap, but who's buying? Life Conference and Exhibition 2011 Russell Higginbotham and Alan Martin - Swiss Re Life's cheap, but who's buying? 22 nd November 2011 2010 The Actuarial Profession www.actuaries.org.uk Market pricing

More information

A. Summary of the Scheme

A. Summary of the Scheme TRANSFER OF LONG TERM INSURANCE BUSINESS OF CGNU LIFE ASSURANCES LIMITED, COMMERCIAL UNION LIFE ASSURANCE COMPANY LIMITED AND NORWICH UNION LIFE (RBS) LIMITED TO AVIVA LIFE & PENSIONS UK LIMITED (FORMERLY

More information

DATA ROOM CHECKLIST To be cross-checked by Lawyers

DATA ROOM CHECKLIST To be cross-checked by Lawyers DATA ROOM CHECKLIST To be cross-checked by Lawyers Responsibility Status Date 1. Regulatory 1. Commentary on overall relationship with regulators over last five years 2. Extracts from any relevant auditors

More information

GUIDELINES ON RISK MANAGEMENT AND INTERNAL CONTROLS FOR INSURANCE AND REINSURANCE COMPANIES

GUIDELINES ON RISK MANAGEMENT AND INTERNAL CONTROLS FOR INSURANCE AND REINSURANCE COMPANIES 20 th February, 2013 To Insurance Companies Reinsurance Companies GUIDELINES ON RISK MANAGEMENT AND INTERNAL CONTROLS FOR INSURANCE AND REINSURANCE COMPANIES These guidelines on Risk Management and Internal

More information

Part A OVERVIEW...1. 1. Introduction...1. 2. Applicability...2. 3. Legal Provision...2. Part B SOUND DATA MANAGEMENT AND MIS PRACTICES...

Part A OVERVIEW...1. 1. Introduction...1. 2. Applicability...2. 3. Legal Provision...2. Part B SOUND DATA MANAGEMENT AND MIS PRACTICES... Part A OVERVIEW...1 1. Introduction...1 2. Applicability...2 3. Legal Provision...2 Part B SOUND DATA MANAGEMENT AND MIS PRACTICES...3 4. Guiding Principles...3 Part C IMPLEMENTATION...13 5. Implementation

More information

PRINCIPLES AND PRACTICES OF FINANCIAL MANAGEMENT.

PRINCIPLES AND PRACTICES OF FINANCIAL MANAGEMENT. PPFM JULY 2013 PRINCIPLES AND PRACTICES OF FINANCIAL MANAGEMENT 1 PRINCIPLES AND PRACTICES OF FINANCIAL MANAGEMENT. This is an important document, which you should read and keep. 2 PRINCIPLES AND PRACTICES

More information

Wolverhampton City Council

Wolverhampton City Council Agenda Item No: 12 Wolverhampton City Council OPEN DECISION ITEM Committee / Panel PENSIONS COMMITTEE Date 27/02/2013 Originating Service Group(s) WEST MIDLANDS PENSION FUND Contact Officer(s)/ Telephone

More information

Summary of the Scheme and of the Independent Expert's Report BACKGROUND

Summary of the Scheme and of the Independent Expert's Report BACKGROUND TRANSFER OF ANNUITY BUSINESS OF THE EQUITABLE LIFE ASSURANCE SOCIETY TO CANADA LIFE LIMITED Summary of the Scheme and of the Independent Expert's Report BACKGROUND It is proposed that certain annuity business

More information

Rating Methodology by Sector. Non-life Insurance

Rating Methodology by Sector. Non-life Insurance Last updated: July 1, 2013 Rating Methodology by Sector Non-life Insurance The following mainly applies to non-life insurance companies in Japan. When determining the credit rating of a non-life insurance

More information

MERCHANT NAVY OFFICERS PENSION FUND STATEMENT OF INVESTMENT PRINCIPLES

MERCHANT NAVY OFFICERS PENSION FUND STATEMENT OF INVESTMENT PRINCIPLES MERCHANT NAVY OFFICERS PENSION FUND STATEMENT OF INVESTMENT PRINCIPLES Introduction The main purpose of the MNOPF is the provision of pensions for Officers in the British Merchant Navy on retirement at

More information

[Source: Added at 17 Ok Reg 1659, eff 7-14-00]

[Source: Added at 17 Ok Reg 1659, eff 7-14-00] TITLE 365. INSURANCE DEPARTMENT CHAPTER 10. LIFE, ACCIDENT AND HEALTH SUBCHAPTER 17. VALUATION OF LIFE INSURANCE POLICIES REGULATION INCLUDING THE INTRODUCTION AND USE OF NEW SELECT MORTALITY FACTORS)

More information

Internal Audit Monitoring Report. Audit Report status Assurance. Payroll Final Limited

Internal Audit Monitoring Report. Audit Report status Assurance. Payroll Final Limited Appendix 1 Internal Audit Monitoring Report Audit Report status Assurance Payroll Final Limited The Payroll system was reviewed to seek assurance that processes and procedures are operating effectively

More information

CEIOPS-DOC-33/09. (former CP 39) October 2009

CEIOPS-DOC-33/09. (former CP 39) October 2009 CEIOPS-DOC-33/09 CEIOPS Advice for Level 2 Implementing Measures on Solvency II: Technical provisions Article 86 a Actuarial and statistical methodologies to calculate the best estimate (former CP 39)

More information

Guide to Financial Reporting In Irish Life & Permanent plc European Embedded Value and IFRS

Guide to Financial Reporting In Irish Life & Permanent plc European Embedded Value and IFRS Guide to Financial Reporting In Irish Life & Permanent plc European Embedded Value and IFRS This guide to financial reporting is designed to help investors and other users of our financial statements to

More information

Commercial Union Life Assurance Company Limited

Commercial Union Life Assurance Company Limited Commercial Union Life Assurance Limited Registered office: St Helen s, 1 Undershaft, London, EC3P 3DQ Annual FSA Insurance Returns for the year ended 31st December 2002 Accounts and statements pursuant

More information

INSURANCE RATING METHODOLOGY

INSURANCE RATING METHODOLOGY INSURANCE RATING METHODOLOGY The primary function of PACRA is to evaluate the capacity and willingness of an entity / issuer to honor its financial obligations. Our ratings reflect an independent, professional

More information

ACCOUNTING FOR INSURANCE

ACCOUNTING FOR INSURANCE lt:\oslo\lifeos..doc 28.10.96 ACCOUNTING FOR INSURANCE Joanne Horton and Richard Macve University of Bristol and LSE OECD Seminar on Accounting Reform In the Baltic Rim Oslo, 13 th -15 th November 1996

More information

CHAPTER 45-04-12 VALUATION OF LIFE INSURANCE POLICIES

CHAPTER 45-04-12 VALUATION OF LIFE INSURANCE POLICIES CHAPTER 45-04-12 VALUATION OF LIFE INSURANCE POLICIES Section 45-04-12-01 Applicability 45-04-12-02 Definitions 45-04-12-03 General Calculation Requirements for Basic Reserves and Premium Deficiency Reserves

More information