Insurance Accounting

Transcription

1 Insurance Accounting 23, 30 September , 9, 10, 15, 16, 23, 24, 30 October 2013 Examination: 11 November 2013 Tower Training Centre, Swatar

2 Course Programme Session 1: General Accounting Principles for Insurance Companies Elizabeth Carbonaro Date & Time: 23 September 2013 (Registration: Course: inc a 15-minute Coffee Break) CPE hours: 3 Core Accounting for insurance and reinsurance contracts Accounting for technical reserves Accounting for investments Session 2: Solvency Calculations Brian Borg Date & Time: 30 September 2013 (Registration: Course: inc a 15-minute Coffee Break) CPE hours: 2.5 Professional Development Calculation of the required solvency level for life and non-life business Measurement of the available level of solvency (including reference to exposure limits) The disadvantages of the existing regime, as an introduction to Solvency II The proposed methodologies which insurance companies will need to adopt in calculating their level of required and available level of solvency under Solvency II Session 3: Reserving Methodology Brian Borg Date & Time: 3 October 2013 (Registration: Course: inc a 15-minute Coffee Break) CPE hours: 2.5 Professional Development Reserving estimation methods, taking into consideration factors such as: the level of sensitivity of key assumptions availability of information and integrity of data response to development / re-estimation of prior years the nature of business in question and complexity of claims reinsurance Non-life reserving, Incurred But Not Reported claims (IBNR) and Incurred But Not Enough Reported claims Life reserving - in particular the factors to be taken into consideration to calculate mathematical provisions Reserving principles under Solvency II Session 4: IFRS 4 Elizabeth Carbonaro Date & Time: 9 October 2013 (Registration: Course: inc a 15-minute Coffee Break) CPE hours: 3 Core

3 Introduction to IFRS IFRS 4 Understanding insurance contracts Disclosures Accounting policies Recognised assets and liabilities Assumptions Reconciliation Insurance risk Session 5: IFRS 9 (applicable for the Insurance industry) John Debattista Date & Time: 10 October 2013 (Registration: Course: inc a 15-minute Coffee Break) CPE hours: 3 Core Objective and scope of the standard Classification of financial assets Measurement of financial assets Reclassifications Transition rules Session 6: IFRS 4 Phase II Elizabeth Carbonaro Date & Time: 15 October 2013 (Registration: Course: ) CPE hours: 2 Core Background to the insurance project Summary of main rules Scope and recognition Measurement model Specific issues: unbundling, contract boundary, Short duration contracts, reinsurance Impact on presentation, disclosures Transition Support and criticisms for the ED Session 7: Risk Management Mark L. Zammit Date & Time: 16 October 2013 (Registration: Course: inc a 15-minute Coffee Break) CPE hours: 2.5 Professional Development Strategies set by insurance companies Discussion of the main risks to which insurance companies are exposed including: underwriting risk

4 credit risk liquidity risk spread risk operational risk Mitigation of the above-mentioned risks Reinsurance as a risk management tool Capital add-ons for the immediate future Session 8: Principles of Prevention of Money Laundering and Corporate Governance Claude-Anne Sant Fournier & Dr. Michelle Mizzi Buontempo Date & Time: 23 October 2013 (Registration: Course: ) CPE hours: 2 Professional Development Principles of Prevention of Money Laundering The obligations for companies in this respect Identification procedures Record keeping Recognition and reporting of suspicious transactions Internal controls to ensure that companies have systems in place to combat money laundering Corporate Governance A company should be headed by an effective board, which should lead and control the company There should be a clear division of responsibilities at the head of the company between the running of the board and the executive responsibility for the running of the company s business The board should be composed of persons who as a group, have the required diversity of knowledge, judgment and experience to properly complete their tasks. This may require the inclusion of a number of non-executive directors (including independent non-executives) The board has the first level responsibility of executing the four basic roles of corporate governance namely: accountability, monitoring, strategy formulation and policy development The board should meet sufficiently regularly to discharge its duties effectively. Ample opportunity must be given to all board members during meetings to convey their opinions and discuss issues set on the board agenda so that they honour their responsibilities at all times. The board should actively participate in the appointment of senior management, ensure that there is adequate training in the company for management and employees, and establish a succession plan for senior management The board shall serve the legitimate interests of the company and account to shareholders fully. Companies should use the general meeting to communicate with shareholders Directors primary responsibility is always to act in the interest of the company and its shareholders as a whole irrespective of who appointed them to the board Directors should seek to adhere to accepted principles of corporate social responsibility in their day-to-day management practices of the company Session 9: Overview of the Insurance Business Act and the Insurance Intermediaries Act Josianne Briffa Date & Time: 24 October 2013 (Registration: Course: ) CPE hours: 2 Professional Development

5 Overview of the Insurance Business Act and Subsidiary Legislation Authorisation for carrying on business of insurance, including the classification of business of insurance Conditions for carrying on business of insurance Margins of solvency Failure to maintain the minimum margin of solvency Technical provisions Equalisation reserve Accounts, actuarial investigations and financial statements Powers of intervention for the protection of public interest Acquisition and disposal of shares Dissolution and winding up Insurance Business (Assets and Liabilities) Regulations, 2007 Insurance Business (Supplementary Supervision of Insurance and Reinsurance Undertakings in an Insurance Group) Regulations, 2007 Insurance Business (Companies Accounts) Regulations, 2000 Insurance Intermediaries Act Registration or enrolment of insurance agents, insurance managers and insurance brokers Powers of intervention by MFSA in relation to persons enrolled for the protection of the general public, including the possibility of striking off Obligations of persons enrolled Monies held in a fiduciary capacity Fidelity bonds required of insurance intermediaries Submission of audited financial statements and income statements Submission of business of insurance intermediaries statements Financial year end, and the appointment, duties and termination of appointment of auditors Session 10: The Approved Auditor The Legal and Regulatory Framework and Principal Directives/Regulations under the Insurance Intermediaries Directives Angele Grech & Romina Bonnici Date & Time: 30 October 2013 (Registration: Course: inc a 15-minute Coffee Break) CPE hours: 3 Professional Development The Approved Auditor The Legal and Regulatory Framework Insurance Rule 1 of 2007 Own funds of companies carrying on business of insurance Insurance Rule 2 of 2007 Criteria of fitness and properness Insurance Rule 6 of 2007 Scheme or operations relating to business of insurance Insurance Rule 15 of 2008 Appointments and changes of directors, controllers and senior managers Insurance Directive 17 of Authorisation to act as approved auditor Insurance Rule 21 of 2007 Business of affiliated insurance Insurance Directive 27 of 2005 Insurers internal controls Principal Directives/Regulations under the Insurance Intermediaries Directives The Financial Obligations of persons applying for a licence to carry on business of insurance and to act as insurance intermediaries An outline of the applicable Rules and Regulations

6 Who should attend? This course is relevant for finance professionals who are / would like to join the insurance industry. Examination Participants who attend all the sessions can eventually sit for an examination. The certificate obtained entitles the holder to carry out insurance audits after fulfilling the obligations specified in the Insurance Business (Approved Auditor) Regulations 2000 and Insurance Rule 17. The 2-hour exam will take place on 11 November 2013 ( ) Fee & Other Booking Information To ensure that your event materials and catering requirements are able to be provided at the event, please register by one working day prior to the event. Individual sessions Fees MIA Members: 35.00, Retired MIA Members: 10.00, Non-MIA members: 55.00, Students: (The fee includes tuition, programme material and refreshments (where applicable)) Booking Fill in the registration form and send it by post along with payment. The booking will be processed and confirmed once payment is received. If you believe that the cheque will not reach the Institute by the closing date, then you are kindly requested to send the application form by together with a scanned copy of the cheque an present the respective cheque during the event. All Sessions Fees MIA Members: , Retired MIA Members: , Non-MIA members: , Students: (This includes tuition, programme material, refreshments (where applicable), examination and certification) Booking With the exception of retired members who are to book through the registration form, booking is to be made via the following link. Terms & Conditions Cancellations taking place within 48 hours prior to the event, will incur a cancellation fee of 50% unless a name of a replacement delegate is provided. When the cancellation takes place due to health reasons, the Institute will be able to issue a credit note for the full amount given that the participant notifies the Institute by 9.00 of the course date. No refunds in case of no-shows. Payment in full will still be due.

7 Certificate of Attendance A certificate of attendance will be issued at the end of each session. This is for your own CPE records. Parking Participants may use the parking facilities available at Level -5. Speakers Profile Romina Bonnici is a Senior Manager at the Authorisation Unit within the Malta Financial Services Authority, wherein she is mainly involved in the processing of applications from prospective insurance and insurance intermediaries licence holders and also in relation to pension administration services. Romina previously held the position of Manager at the Insurance and Pensions Supervision Unit within the MFSA, being responsible for the licensing and supervision of insurance intermediaries. At an EU level, Romina represented the MFSA on committees of the European Insurance and Occupational Pensions Authority dealing with insurance For a number of years Brian Borg worked in insurance regulation and supervision at MFSA. His day-to-day responsibilities focused on the monitoring of financial related aspects in connection with the regulatory and supervisory roles exercised by the Insurance Unit. In early 2008 Brian joined an authorised insurance management company where he was responsible for the finance and compliance functions on managed insurance companies. One year down the line, Brian joined a French Insurance Group where he is responsible for the finance and operations functions of the Group s insurance and reinsurance subsidiaries in Malta. By profession, Brian is an accountant. He obtained a Bachelor of Accountancy (Honours) degree from the University of Malta, and also holds a Master of Arts in Financial Services from the same University. Since 2006 Brian has been lecturing on a part-time basis at the MITC. His areas of specialisation include financial reporting and capital adequacy. This is a complementary role to his day-to-day work in regulation and supervision, while at the same time helps him to keep abreast of the developments in these areas. Josianne Briffa graduated as an accountant in 2003 and obtained her Masters in Financial Services from the University of Malta in Until May 2012 she was Senior Manager in the Risk Consulting Advisory Services team at KPMG in Malta and she now holds a managerial position with an insurance principal in Malta. As part of her career work she was extensively involved in advising and assisting clients on issues pertaining to the Maltese financial services regulatory framework and her regulatory work extends to the setting up and implementation of compliance and internal control functions within insurance entities. She has also assisted clients with their preparations for Solvency II and has also been involved in project-managing Solvency II implementation for insurance entities. Elizabeth Carbonaro started her career in financial services in 1988 as an auditor with the local representative of PriceWaterhouse, subsequently leaving the local practice to join the Luxembourg practice in During her

8 sojourn in Luxembourg, Elizabeth managed a team of people on the audits of various Investment Funds, Banks and other financial institutions. Elizabeth returned to PwC Malta in 1997 as a Senior Manager, managing the audits of several large local Groups and Financial Institutions. During her time with PriceWaterhouse Elizabeth also carried out various overseas assignments in Greece, Italy, France and Switzerland. Elizabeth joined the Middlesea Group in February 2000, heading the finance department of the Group, a position she held until December In January 2010 Elizabeth was appointed General Manager of BEE. Previously to that, in addition to her role as Chief Officer Group Finance, she also assisted the then general manager of BEE in managing the back-office insurance, accounting and administration services to insurance and reinsurance clients of BEE. Elizabeth joined Willis in June 2012 as an Account Director responsible for the operations of a number of captives and insurance companies. Elizabeth is a Fellow of the Chartered Association of Certified Accountants (FCCA) and a Fellow of the Malta Institute of Accountants (FIA). Elizabeth is also a Certified Public Accountant in Malta and has a Diploma in Insurance Studies from the Chartered Institute of Insurers John Debattista qualified as an accountant from The University of Malta in 2005, is a memer of the Malta Institute of Accountants and is a Certified Public Accountant. John spent seven years working at Mazars Malta where he held the post of Audit Manager. John is now leading his own practice offering accounting and audit services. John is also an ACA and ACCA lecturer where he lectures the Advanced Financial Reporting Paper and the DipIFR. Angele Grech graduated with Honours in accountancy from the University of Malta and holds a warrant to practice as a Certified Public Accountant. Angele is a deputy director within the MFSA s Authorisation Unit which is responsible for the processing of applications for authorisation of entities within all sectors of financial services which fall under the remit of the MFSA. She previously headed the on-site compliance team within the Insurance Business Unit at the MFSA. Angele has represented the MFSA on committees of the International Association of Insurance Supervisors (IAIS) and the European Insurance and Occupational Pensions Authority (EIOPA). She has participated as a speaker in various conferences and seminars organized by independent institutions and lectures at the University of Malta. Dr. Michelle Mizzi Buontempo is a Deputy Director within the Securities and Markets Supervision Unit of the Malta Financial Services Authority. Michelle joined the MFSA in 1999 as legal officer within the Registry of Companies where her main duties included advising the Registrar on legal matters relating to the Companies Act as well as representing the Registrar in court proceedings and drafting of amendments to legislation. During her years at the MFSA Michelle has gained practical experience in different areas of financial supervision including the off-site and on-site monitoring of trustees and other fiduciaries. For a number of years Michelle was responsible for co-ordinating the development and implementation of sound corporate governance principles to be followed by listed companies as well as other public interest entities in Malta. Michelle graduated as a lawyer from the University of Malta and has obtained a Masters degree in Financial Services from the same University. She regularly lectures on corporate governance at training programs organised by the Malta International Training Centre and the Malta Financial Services Authority.

9 Claude-Anne Sant Fournier graduated Bachelor of Arts in Legal and Humanistic Studies and subsequently Doctor of Laws from the University of Malta. Prior to joining KPMG, Claude-Anne acted as manager responsible for regulatory and compliance with a local multi-disciplinary firm, and as a litigation lawyer with a local law firm. Since joining the Risk Consulting team, Claude-Anne has been involved in advising and assisting clients on issues pertaining to the Maltese corporate, financial services and regulatory framework with a focus on anti money laundering. She is responsible for co-ordinating the KPMG AML Round Table, a forum that is organized on a quarterly basis for MLROs in Malta, where both speakers and attendees alike are presented with an opportunity to exchange insights and knowledge on AML/CFT and keep abreast of a rapidly evolving environment. Claude- Anne has also undertaken training at the FATCA Academy and is today active in local engagements relating to FATCA compliance. Mark L. Zammit is a recent MBA graduate and experienced Banking professional with over 16 years experience within the Retail Banking, Financial Services Sectors and Business Consultancy. Experienced in corporate financial analysis, business strategy, risk management, sales techniques, business development, marketing, research, investment & insurance products, mortgages, general credit processing, micro & macro economics, auditing, P&L, team leadership, relationship building, presentations, contract drafting and negotiation, account management, project leadership, recruitment, training, administration and customer service. Mark has recently been qualified as an independent Risk Manager with particular experience in VAR, RMICAAP, Business Continuity and Disaster Recovery. Mark has over the years built his experience in Operations Management, Recruitment and Training and Risk Management. This experience has led Mark to branch out on his own and create ATCS Consultancy Ltd. Built on the ideals to 'Aspire To Cultivate Success' the company focuses on holistic, lifelong and professional training, business consultancy services such as marketing, company registration and setup, website content management and events management. ATCS also specialises in online translations of almost every language combination. ATCS derives its success from the synergies and networking opportunities that it encounters with other esteemed companies throughout Malta and Abroad. For More Information Ms. Sarah Bonello The Malta Institute of Accountants, Level 1, Tower Business Centre, Tower Street, Swatar Tel: info@miamalta.org Ms. Maria-Elena Galea Malta International Training Centre, TG Complex, Suite 3, Level 1, Brewery Street, Mriehel Tel: info@mitcentre.com