Operational Risk Management in a Property/Casualty Insurance Company
|
|
- Dwain Fleming
- 8 years ago
- Views:
Transcription
1 Operational Risk Management in a Property/Casualty Insurance Company Mark Verheyen, FCAS, MAAA Enterprise Risk Management Symposium May 2005 A Carvill service Operational Risk Management in a Property/Casualty Insurance Company Agenda Traditional (P/C) Insurance Company Risk Measures Operational Risk in an Insurance Company Operational Risk s Impact on the Insurance Industry Quantification of Operational Risk in an Insurance Company Management of Operational Risk in an Insurance Company
2 What are the traditional measures of risk in a Property / Casualty insurance company? Traditional Measures of Risk NAIC Risk Based Capital for Property / Casualty Insurers R0 Subsidiaries and Affiliates R1 Asset Risk Fixed Income R2 Asset Risk Equity R3 Credit Risk R4 Underwriting Risk Reserves R5 Underwriting Risk Premium
3 Traditional Measures of Risk Best s Capital Adequacy Ratio B1 - Fixed Income Securities B2 - Equity Securities B3 - Interest Rate Risk B4 - Credit Risk B5 - Loss + LAE Reserve Risk B6 - Premium Risk B7 - Business Risk Off-Balance Sheet Items Traditional Measures of Risk Standard & Poor s Capital Adequacy Ratio C1 Asset Risk C2 Credit Risk C3 Premium Risk C4 Loss + LAE Reserve Risk C5 Business Risk
4 What is Operational Risk in an Insurance Company? Operational Risk Underwriting Risk Reserving Risk Operational Risk Asset Risk Credit Risk Operational Risk is not separate and distinct from the more traditional risk categories. Rather, it overlaps these categories.
5 Operational Risk How does the banking industry define Operational Risk? Operational Risk is defined as the risk of loss resulting from inadequate or failed internal processes, people, and systems or from external events. This definition includes legal risk, but excludes strategic and reputational risk. Basel Committee on Banking Supervision International Convergence of Capital Measurement and Capital Standards Operational Risk Banking (Basel) Mismarking Position (Intentional) Model Errors / Misuse Outsourcing Non-Client Counterparty Disputes Fiduciary Breaches Fraud Anti-Trust Violations Natural Catastrophe / Terrorism Insurance Corollary Under-Reserving (Intentional) Under-Pricing, Under-Reserving (Unintentional) Delegation of Underwriting Authority Reinsurance Disputes Bad Faith Claims Fraud Anti-Trust Violations Natural Catastrophe / Terrorism* * It is important to distinguish between the insurer s operational exposure to natural catastrophe / terrorism and that exposure assumed from other parties as a covered insurance risk. Risks should be Serially Exclusive and Mutually Exhaustive ( SEME ). In other words, every risk falls in one and only one bucket.
6 How Has Operational Risk Impacted the Insurance Industry? Operational Risk s Impact Failed Promises: Insurance Company Insolvencies a Congressional Report Failures attributed to: Under-reserving Under-pricing Unsupervised Delegation of Underwriting Authority Rapid Expansion Reckless Management Abuse of Reinsurance Etc. Sounds like Operational Risk.
7 Operational Risk s Impact The Failure of HIH Insurance a corporate collapse and its lessons. Failure attributed to: Under-reserving Under-pricing Lack of Internal Controls Expansion into Unfamiliar Markets Mismanagement Abuse of Reinsurance Etc. Sounds like Operational Risk. Operational Risk s Impact Primary Causes of P/C Impairments (1969 to 2002) Miscellaneous, 9.8% Impairment of an Affiliate, 3.7% Catastrophe Losses, 6.9% Reinsurance Failure, 3.7% Significant Change, 5.0% Overstated Assets, 7.8% Alleged Fraud, 8.5% Rapid Growth, 17.3% Deficient Loss Reserves, 37.2% With the possible exception of insolvency due to catastrophe losses, in A. M. Best s opinion, all the primary causes of insolvencies in this study were related to some form of mismanagement. Best s Insolvency Study, Property Casualty U. S. Insurers, pçìêåéw=^kjk=_éëí=`çãé~åó=ó=äó=ééêãáëëáçå Sounds like Operational Risk.
8 Operational Risk s Impact Annual Numbe r o f P/C Impairme nts =====================qçí~ä ===========================fã é~áêã Éåí=`çìåí=====^îÉê~ÖÉ NVSV=íç=OMMOW===================UTN=======================ORKS NVSV=íç=NVVMW===================QUN=======================ONKV NVVN=íç=OMMOW===================PVM=======================POKR pçìêåéw==^kjk=_éëí=`çãé~åó=j=äó=ééêãáëëáçå Impairments increase following prolonged soft markets. Why is Operational Risk tied to the Underwriting Cycle? How is Operational Risk Quantified in an Insurance Company?
9 Quantification of Operational Risk Standard Expenses Fraudulent Expenses Processing Errors Covered Losses Fraudulent Losses Total Losses Total Expenses The significant sources of operational risk are implicitly included in regulatory and rating agency capital models. Processing Errors Underwriting Errors Financial Statements Policy Premium Processing Errors Total Premium Pricing Regulatory / Rating Agency Capital Models How is Operational Risk Managed in an Insurance Company?
10 Management of Operational Risk Communication and discipline are key. U nderw riting Pricing Planning Reserving Everyone needs to be aware of what is going on in the current underwriting environment and be realistic about what the results are. Management of Operational Risk Compensation Structures and Underwriting Cycles: It s About the Bonuses, Stupid Sean M. Fitzpatrick, Fear is the Key: A Behavioral Guide to Underwriting Cycles Insurance companies create powerful incentives for underwriters to sell as many policies as possible at whatever price the market will bear Short-term incentives tend to be production based, while long-term incentives tend to be profitability based. Everyone needs to be aware of what the incentives are and how they impact behavior.
11 Management of Operational Risk What are the Key Risk Indicators of Operational Risk in an Insurance Company? Production hit ratios, retention ratios, item count, pricing levels (renewal business and new business), rate per unit of exposure Internal controls audit results, audit frequency Staffing employee turnover, training budget, premium per employee, policies per employee Claims frequency, severity, new classes of loss Outside data sources rating agencies, regulators, industry trade organizations, data warehousing firms Concluding Thoughts Operational risk isn t a distinct class of risk that insurers are required to hold additional capital for. It is arguably the single largest threat to their solvency, though. Regulators and rating agencies implicitly include capital requirements for Operational Risk through the premium and reserve charges in their capital models. Operational risk management and quantification techniques used in banking and other industries do have applications in the insurance industry. Proactive communication and the monitoring of Key Risk Indicators can encourage changes in behavior in the underwriting cycle.
How Analytically-Driven Insurers Improve Ratings & Financial Projections
How Analytically-Driven Insurers Improve Ratings & Financial Projections Matthew C. Mosher, FCAS, MAAA, CERA Senior Vice President Rating Services Disclaimer AM Best Company (AMB) and/or its licensors
More informationWeaknesses in Regulatory Capital Models and Their Implications
Weaknesses in Regulatory Capital Models and Their Implications Amelia Ho, CA, CIA, CISA, CFE, ICBRR, PMP, MBA 2012 Enterprise Risk Management Symposium April 18-20, 2012 2012 Casualty Actuarial Society,
More informationOperational Risk An Enterprise Risk Management Presentation
Operational Risk An Enterprise Risk Management Presentation Margaret Tiller Sherwood FCAS, ASA, MAAA, FCA, CPCU, ARM, ERMP, CERA President Tiller Consulting Group, Inc. Session Number: TBR4 Operational
More informationOperational Risk Management Policy
Operational Risk Management Policy Operational Risk Definition A bank, including a development bank, is influenced by the developments of the external environment in which it is called to operate, as well
More informationCambridge, Ontario June 1, 2011 CHECK AGAINST DELIVERY. For additional information contact:
Remarks by Superintendent Julie Dickson Office of the Superintendent of Financial Institutions Canada (OSFI) to the 2011 Property and Casualty Insurance Industry Forum Cambridge, Ontario June 1, 2011 CHECK
More informationGAO. INSURANCE REGULATION State Reinsuranee Oversight Increased, but Problems Remain
-~ --I- -.._. -..-..-._.._. -.II._..-. -_- _... -_.---. IJr~iI.c4 -.l-_-.--_..- St~~f.w._--- --_- Gc~rrc~ral Accoanthg GAO Itctport, to t,lw CG&nan, Subcolnmittee on Oversight and Investigations, Committee
More informationThe Failure of Insurance Companies
The Failure of Insurance Companies James Widdows Berkshire Hathaway Introduction The Fire, Auto and Marine Insurance Company (FAM) Independent Insurance Company Independent Insurance (various newspaper
More informationCHARTER OF THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS OF TRIANGLE PETROLEUM CORPORATION AMENDED AND RESTATED AS OF JUNE 6, 2013
CHARTER OF THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS OF TRIANGLE PETROLEUM CORPORATION AMENDED AND RESTATED AS OF JUNE 6, 2013 I. PURPOSE OF THE COMMITTEE The purpose of the Audit Committee (the "Committee")
More informationDetermining a reasonable range of loss reserves, required
C OVER S TORY By R USTY K UEHN Medical Malpractice Loss Reserves: Risk and Reasonability On March 1 of every calendar year, property/casualty insurance companies file a Statement of Actuarial Opinion (SAO),
More informationA.M. Best - Congressional Testimony Committee on Financial Services America s Insurance Industry: Keeping the Promise
A.M. Best - Congressional Testimony Committee on Financial Services America s Insurance Industry: Keeping the Promise The horrible events of September 11 th caused shocks throughout the world s financial
More informationRS Official Gazette, No 51/2015
RS Official Gazette, No 51/2015 Pursuant to Article 147, paragraph 3, Article 150, paragraph 3 and Article 151, paragraph 4 of the Insurance Law (RS Official Gazette, No 139/2014) and Article 15, paragraph
More informationWorld Bank Distance Learning
World Bank Distance Learning The Early Warning Test Ratios for General Insurers Washington, DC April 9, 2001 Lawrie Savage & Associates Inc. History of Early Warning Ratios Until early 1970's, everyone
More informationGUIDANCE FOR MANAGING THIRD-PARTY RISK
GUIDANCE FOR MANAGING THIRD-PARTY RISK Introduction An institution s board of directors and senior management are ultimately responsible for managing activities conducted through third-party relationships,
More informationStatement of Guidance
Statement of Guidance Asset Management & Investment Strategy For Insurance Companies 1. Statement of Objectives To ensure that assets are managed in a sound and prudent manner that is consistent with the
More informationNORTHERN TRUST CORPORATION BUSINESS RISK COMMITTEE CHARTER
NORTHERN TRUST CORPORATION BUSINESS RISK COMMITTEE CHARTER Effective January 20, 2015 (Supersedes the Business Risk Committee Charter Effective October 21, 2014) The By-laws of Northern Trust Corporation
More informationSolutions to Past CAS Questions Associated with NAIC Property/Casualty Insurance Company Risk Based Capital Requirements Feldblum, S.
Solutions to Past CAS Questions Associated with Feldblum, S. Solutions to questions from the 1997 Exam: 18. Calculate the adjusted policyholder surplus for this company. Step 1: Write an equation for adjusted
More informationRegulatory Solvency Assessment of Property/Casualty Insurance Companies in the United States
Regulatory Solvency Assessment of Property/Casualty Insurance Companies in the United States A presentation by Robert F. Conger Past-President, Casualty Actuarial Society September 2013 Regulatory Solvency
More informationLessons learned from insolvency in the Canadian P&C insurance industry
Lessons learned from insolvency in the Canadian P&C insurance industry Paul Kovacs President & CEO, PACICC Canadian Institute for Actuaries Toronto, June 21, 2012 1 Agenda Why insurers fail Protecting
More informationRISK-BASED SUPERVISORY FRAMEWORK TEMPLATE FOR INSURANCE COMPANIES
RISK-BASED SUPERVISORY FRAMEWORK TEMPLATE FOR INSURANCE COMPANIES JUNE 26, 2006 This publication was produced for review by the United States Agency for International Development. It was prepared by Stephen
More informationREGULATION 9 ON OPERATIONAL RISK MANAGEMENT. Article 1 Purpose and Scope
Pursuant to Article 35, paragraph 1.1 of the Law No. 03/L-209 on Central Bank of the Republic of Kosovo (Official Gazette of the Republic of Kosovo, No.77 / 16 August 2010), Article 20 paragraph 1.3 and
More informationERM from a Small Insurance Company Perspective
ERM from a Small Insurance Company Perspective NABRICO Sept 30, 2011 Agenda Section 1 Section 2 Section 3 Section 4 ERM Introduction Key Risks Streamlined Quantitative Process Other Influences 1 1 Section
More informationCOUPONS.COM INCORPORATED CHARTER OF THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS
COUPONS.COM INCORPORATED CHARTER OF THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS I. STATEMENT OF POLICY This Charter specifies the authority and scope of the responsibilities of the Audit Committee (the
More informationDirect Line Insurance Group plc (the Company ) Board Risk Committee (the Committee ) Terms of Reference
Direct Line Insurance Group plc (the Company ) Board Risk Committee (the Committee ) Terms of Reference Chair An Independent Non-Executive Director In the absence of the Committee Chairman and an appointed
More informationRisk Management in Insurance
Risk Management in Insurance Jason R. Thacker, CAIA Business Programming Consultant and Actuarial Development Program, Colonial Life Overview Personal background Insurance industry background Solvency
More informationFraud Prevention & Detection
Fraud Prevention & Detection Dave Tate, CPA, Esq. http://davidtate.us tateatty@yahoo.com This discussion primarily pertains to financial statement fraud--that is, financial statements that contain intentionally,
More informationREINSURANCE RISK MANAGEMENT GUIDELINE
REINSURANCE RISK MANAGEMENT GUIDELINE Initial publication: April 2010 Update: July 2013 Table of Contents Preamble... 2 Introduction... 3 Scope... 5 Coming into effect and updating... 6 1. Reinsurance
More informationGUIDELINES 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 informationHOCH CAPITAL LTD PILLAR 3 DISCLOSURES As at 1 February 2015
HOCH CAPITAL LTD PILLAR 3 DISCLOSURES As at 1 February 2015 TABLE OF CONTENTS 1. Overview / Background 1.1 Introduction 1.2 Frequency of disclosure 1.3 Location and verification of disclosure 1.4 Scope
More informationVALUATION ACTUARIES AHD PROPERTY-CASUALTY IHSURAHCE. By Susan E. Witcraft
VALUATION ACTUARIES AHD PROPERTY-CASUALTY IHSURAHCE By Susan E. Witcraft BIOGRAPHY: Ms. Wttcraft is an Associate Member with Nilliman & Robertson, Inc., Consultants and Actuaries, in their Minneapolis
More informationInsurance as Operational Risk Management Tool
DOI: 10.7763/IPEDR. 2012. V54. 7 Insurance as Operational Risk Management Tool Milan Rippel 1, Lucie Suchankova 2 1 Charles University in Prague, Czech Republic 2 Charles University in Prague, Czech Republic
More informationStatement of Guidance: Outsourcing All Regulated Entities
Statement of Guidance: Outsourcing All Regulated Entities 1. STATEMENT OF OBJECTIVES 1.1. 1.2. 1.3. 1.4. This Statement of Guidance ( Guidance ) is intended to provide guidance to regulated entities on
More informationCOMPUTERSHARE TRUST COMPANY OF CANADA BASEL III PILLAR 3 DISCLOSURES
COMPUTERSHARE TRUST COMPANY OF CANADA BASEL III PILLAR 3 DISCLOSURES December 31, 2013 Table of Contents Scope of Application... 3 Capital Structure... 3 Capital Adequacy... 3 Credit Risk... 4 Market Risk...
More informationHALOZYME THERAPEUTICS, INC. CHARTER OF THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS ORGANIZATION AND MEMBERSHIP REQUIREMENTS
HALOZYME THERAPEUTICS, INC. CHARTER OF THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS I. STATEMENT OF POLICY The Audit Committee (the Committee ) of the Board of Directors (the Board ) of Halozyme Therapeutics,
More information(2) The next set of amendments, if any, will be issued on 1 October 2015.
ADGI05 CLAIMS MANAGEMENT STUDY TEXT (2 nd EDITION, 2012) Version 1.1 Issued On: 1 June 2012 Note: (1) This Version 1.1 of the amendments below shall apply to any candidate who sits for the Claims Management
More informationDEVELOPING A KRI PROGRAM: GUIDANCE FOR THE OPERATIONAL RISK MANAGER SEPTEMBER 2004. Mayowa BabatolaMayowa BabatolaBITS 2004 September 2
DEVELOPING A KRI PROGRAM: GUIDANCE FOR THE OPERATIONAL RISK MANAGER SEPTEMBER 2004 Mayowa BabatolaMayowa BabatolaBITS 2004 September 2 DEVELOPING A KRI PROGRAM: GUIDANCE FOR THE OPERATIONAL RISK MANAGER
More informationInsurance Risk 101. Pat Teufel, FSA, MAAA Timothy J. Tongson, FSA, MAAA James E. Rech, MBA, ACAS, ASA, MAAA July 9, 2001 RHOB 2220
Insurance Risk 101 Pat Teufel, FSA, MAAA Timothy J. Tongson, FSA, MAAA James E. Rech, MBA, ACAS, ASA, MAAA July 9, 2001 RHOB 2220 Insurance Risk 101 1 Life Insurance Risk 101 Timothy J. Tongson, FSA, MAAA
More informationDon t Make Main Street Insurance Consumers Subsidize Wall Street
Don t Make Main Street Insurance Consumers Subsidize Wall Street To address the economic turmoil caused by the collapse of several major Wall Street firms, Congress now faces the difficult charge of crafting
More informationTime Warner Cable Inc. Audit Committee Charter. Effective February 14, 2013
Time Warner Cable Inc. Audit Committee Charter Effective February 14, 2013 The Board of Directors of Time Warner Cable Inc. (the Corporation ; Company refers to the Corporation and its consolidated subsidiaries)
More information(1) When the insured requests, individually or through another agent, that the insurance company renew the policy or write other insurance business.
AGENT EXCLUSIVE USE OF EXPIRATIONS INSURANCE CODE LSA-R.S. 22:1474 WEST'S LOUISIANA STATUTES ANNOTATED LOUISIANA REVISED STATUTES TITLE 22. INSURANCE CHAPTER 1. INSURANCE CODE PART XXXI. MISCELLANEOUS
More informationHow To Write An Insurance Profile Summary
EXHIBIT H INSURER PROFILE SUMMARY TEMPLATE Introductory Guidance An Insurer Profile Summary should be developed by the domestic state for each domestic insurer. The Insurer Profile Summary should be updated
More informationCharter of the Compliance and Operational Risk Management Office (CORMO)
Charter of the Compliance and Operational Risk Management Office (CORMO) Compliance Risk Compliance risk is defined as the risk of legal sanctions, material financial loss, or loss to reputation the Bank
More informationReport of Examination of. Harleysville Insurance Company of Ohio Columbus, Ohio. As of December 31, 2009
Report of Examination of Harleysville Insurance Company of Ohio Columbus, Ohio As of December 31, 2009 Table of Contents Subject Page Salutation... 1 Description of Company... 1 Scope of Examination...
More informationAudit, Risk Management and Compliance Committee Charter
Audit, Risk Management and Compliance Committee Charter Woolworths Limited Adopted by the Board on 27 August 2013 page 1 1 Introduction This Charter sets out the responsibilities, structure and composition
More informationFive Best Practice Strategies for Maintaining Excellence in Workers Compensation Self-Insured Groups
Five Best Practice Strategies for Maintaining Excellence in Workers Compensation Self-Insured Groups Safety National is the market leader for providing excess workers compensation coverage for self-insured
More informationNCUA LETTER TO CREDIT UNIONS
NCUA LETTER TO CREDIT UNIONS NATIONAL CREDIT UNION ADMINISTRATION 1775 Duke Street, Alexandria, VA 22314 DATE: August 2008 LETTER NO.: 08-CU-19 TO: SUBJ: Federally Insured Credit Unions Third-Party Relationships:
More informationCredit Union Liability with Third-Party Processors
World Council of Credit Unions Annual Conference Credit Union Liability with Third-Party Processors Andrew (Andy) Poprawa CEO, Deposit Insurance Corporation of Ontario Canada 1 Credit Union Liability with
More informationFebruary 2015. Audit committee performance evaluation
February 2015 Audit committee performance evaluation Audit committee performance evaluation The following questionnaire is based on emerging and leading practices to assist in the self-assessment of an
More informationCOMPLIANCE GUIDELINE April 2009
COMPLIANCE GUIDELINE April 2009 Table of Contents Preamble...3 Introduction...4 Scope...5 Coming into effect and updating...6 1. Compliance management framework...7 2. Compliance monitoring function...8
More informationCharter of the Audit Committee of the Board of Directors of Woodward, Inc.
AUDIT COMMITTEE CHARTER Charter of the Audit Committee of the Board of Directors of Woodward, Inc. Purpose The Audit Committee (the Committee ) is appointed by the Board of Directors to oversee the accounting
More informationActuarial and Business Issues: Implications for Non-life Insurance Accounting
Actuarial and Business Issues: Implications for Non-life Insurance Accounting Educational Presentation to the IASB 16 February 2005 Michael McCarter for the Group of North American Insurance Enterprises
More information1 Introduction. 1.1 Three pillar approach
1 Introduction 1.1 Three pillar approach The recent years have shown that (financial) companies need to have a good management, a good business strategy, a good financial strength and a sound risk management
More informationBoard of Directors Meeting 12/04/2010. Operational Risk Management Charter
Board of Directors Meeting 12/04/2010 Document approved Operational Risk Management Charter Table of contents A. INTRODUCTION...3 I. Background...3 II. Purpose and Scope...3 III. Definitions...3 B. GOVERNANCE...4
More informationGUIDELINES FOR THE MANAGEMENT OF OPERATIONAL RISK
SUPERVISORY AND REGULATORY GUIDELINES: PU-0412 Operational Risk 25 th November, 2013 GUIDELINES FOR THE MANAGEMENT OF OPERATIONAL RISK 1. INTRODUCTION 1.1. The Central Bank of The Bahamas ( the Central
More informationEvaluating Insurers Enterprise Risk Management Practice
Evaluating Insurers Enterprise Risk Management Practice Li Cheng, CFA, FRM, FSA Director Financial Services Ratings October 3, 2013 Permission to reprint or distribute any content from this presentation
More informationInternal Control Systems and Maintenance of Accounting and Other Records for Interactive Gaming & Interactive Wagering Corporations (IGIWC)
Internal Control Systems and Maintenance of Accounting and Other Records for Interactive Gaming & Interactive Wagering Corporations (IGIWC) 1 Introduction 1.1 Section 316 (4) of the International Business
More informationHow To Manage Operational Risk
BOM/BSD 14/February 2005 BANK OF MAURITIUS Guideline on Operational Risk Management and Capital Adequacy Determination February 2005 Revised April 2008 Table of Contents Page INTRODUCTION...3 DEFINITION
More information15 December 2015. General Risk Control and Management Policy
15 December 2015 General Risk Control and Management Policy Content 1. Purpose 3 2. Scope 3 3. Risk Factors - Definitions 3 4. Basic Principles 4 5. Comprehensive Risk Control and Management System 4 6.
More informationAssociated With: Cincinnati Financial Corporation THE CINCINNATI INSURANCE COMPANIES
THE CINCINNATI INSURANCE COMPANIES Cincinnati Insurance Company A+ Cincinnati Specialty Undrs Ins A+ Cincinnati Casualty Company A+ Cincinnati Indemnity Company A+ Associated With: Cincinnati Financial
More informationGN5: 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 informationINSURANCE 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 informationLIQUIDITY RISK MANAGEMENT GUIDELINE
LIQUIDITY RISK MANAGEMENT GUIDELINE April 2009 Table of Contents Preamble... 3 Introduction... 4 Scope... 5 Coming into effect and updating... 6 1. Liquidity risk... 7 2. Sound and prudent liquidity risk
More informationAudit Committee Charter Altria Group, Inc. In the furtherance of this purpose, the Committee shall have the following authority and responsibilities:
Audit Committee Charter Altria Group, Inc. Membership The Audit Committee (the Committee ) of the Board of Directors (the Board ) of Altria Group, Inc. (the Company ) shall consist of at least three directors
More informationCasualty Actuarial Society. Review and Comparison of Rating Agency Capital Models
Casualty Actuarial Society Review and Comparison of Rating Agency Capital Models Joseph R. Lebens, FCAS, MAAA François Morin, FCAS, MAAA, CFA Towers Perrin Reprinted and distributed by the Casualty Actuarial
More informationEquita SIM SpA publishes this Public Disclosure on its website www.equitasim.it
PUBLIC DISCLOSURE OF STATUS AS AT 31/12/2012 Introduction The Bank of Italy s Regulation concerning prudential supervision for securities brokerage companies [Italian legal entity acronym = SIM] (Title
More informationAustralian Insurance Market 2003
Australian Insurance Market 2003 Christopher Coyne Partner - Clayton Utz Brisbane - Queensland - Australia Australian insurance market Professional Indemnity ("PI") and Public Liability ("PL") insurance
More informationGLOSSARY OF SELECTED INSURANCE AND RELATED FINANCIAL TERMS
In an effort to help our investors and other interested parties better understand our regular SEC reports and other disclosures, we are providing a Glossary of Selected Insurance Terms. Most of the definitions
More informationReinsurance: What? Who? Why? How?
Knowledge. Experience. Performance. THE POWER OF INSIGHT. sm Life Reinsurance Rejean Besner, FSA, MAAA, FCIA, FASSA Vice President & Chief Actuary, International Division Presented to the Conference on
More informationLIFE INSURANCE RATING METHODOLOGY CREDIT RATING AGENCY OF
LIFE INSURANCE RATING METHODOLOGY CREDIT RATING AGENCY OF BANGLADESH LIMITED 1 CRAB S RATING PROCESS An independent and professional approach of the CRAB is designed to ensure reliable, consistent and
More informationOUTSOURCING GUIDELINES FOR BANKS AND FINANCIAL INSTITUTIONS, 2008
OUTSOURCING GUIDELINES FOR BANKS AND FINANCIAL INSTITUTIONS, 2008 BANK OF TANZANIA PART I PRELIMINARY 1 These guidelines may be cited as the Outsourcing Guidelines for Banks and Financial Institutions,
More informationWhat do London Market Actuaries Price?
What do London Market Actuaries Price? Ana Mata, PhD, ACAS Wendy Russell GENERAL INSURANCE PRICING SEMINAR London, 13 June 2008 Agenda Background What do London Market Actuaries Price? - The Survey Expectations
More informationPresenters: Pam Bishop, Mutual of Omaha Insurance Companies Kurt Swan, Connecticut Insurance Department Cynthia Wood, Risk & Regulatory Consulting,
Presenters: Pam Bishop, Mutual of Omaha Insurance Companies Kurt Swan, Connecticut Insurance Department Cynthia Wood, Risk & Regulatory Consulting, LLC Moderator: Barry L Wells, Risk & Regulatory Consulting,
More informationCHARTER OF THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS OF ARMSTRONG FLOORING, INC. ADOPTED AS OF MARCH 30, 2016
CHARTER OF THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS OF ARMSTRONG FLOORING, INC. ADOPTED AS OF MARCH 30, 2016 I. PURPOSE OF THE COMMITTEE The purpose of the Audit Committee (the Committee ) of the
More informationZAG BANK BASEL II & III PILLAR 3 DISCLOSURES. December 31, 2014
ZAG BANK BASEL II & III PILLAR 3 DISCLOSURES December 31, 2014 Zag Bank (the Bank ) is required to make certain disclosures to meet the requirements of the Office of the Superintendent of Financial Institutions
More informationCaptive Insurance Issues and Trends. Michael Mead, Kyle Mrotek and Doug Youngren
Captive Insurance Issues and Trends Michael Mead, Kyle Mrotek and Doug Youngren What is a Captive and What Does it Do? Michael R. Mead, CPCU, M.R. Mead Co. 1 What It Is Not 2 Definition of Captive Insurance
More informationWebinar Transcript: Key Components of the Health Insurance Rating Process.
Webinar Transcript: Key Components of the Health Insurance Rating Process. Ken Frino Group Vice President, JOHN WEBER: I m John Weber with the A.M. Best Company. Welcome to our webinar, Key Components
More informationFinancial Outlook* Michael Bell Executive Vice President and Chief Financial Officer CIGNA Corporation
Financial Outlook* Michael Bell Executive Vice President and Chief Financial Officer CIGNA Corporation *Information presented as of November 21, 2008 Agenda 2008 & 2009 Financial Outlook Critical Success
More informationSTATE BOARD OF COMMUNITY COLLEGES AND OCCUPATIONAL EDUCATION AUDIT COMMITTEE CHARTER
Page 1 of 6 STATE BOARD OF COMMUNITY COLLEGES AND OCCUPATIONAL EDUCATION BP 7-01 APPROVED: June 13, 2007 EFFECTIVE: July 1, 2007 AUDIT COMMITTEE CHARTER REFERENCES: Board Policy 2-10, Board Committee Structure
More informationAPS2 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 informationMUNICH RE AMERICA CORPORATION
MUNICH RE AMERICA CORPORATION Annual Report For The Fiscal Year Ended December 31, 2014 (Pursuant to Section 4.04 of the Indenture between the Company and the holders of the Company s 7.45% Senior Notes*)
More informationOlav Jones, Head of Insurance Risk
Getting you there. What is Risk Management of an Insurance Company, a view of a Head of Insurance Risk? Olav Jones, Head of Insurance Risk Olav Jones 29-11-2006 1 Agenda I. Risk Management in Insurance
More informationThird Party Relationships
3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 A B D INTRODUCTION AND PURPOSE Background Yes/No Comments 1. Does the credit union maintain a list of the third party
More informationVALIDUS ANNOUNCES 2015 FULL YEAR NET INCOME OF $374.9 MILLION 2015 NET OPERATING RETURN ON AVERAGE EQUITY OF 11.3%
VALIDUS ANNOUNCES 2015 FULL YEAR NET INCOME OF $374.9 MILLION 2015 NET OPERATING RETURN ON AVERAGE EQUITY OF 11.3% BOOK VALUE PER DILUTED COMMON SHARE OF $42.33 AT DECEMBER 31, 2015 Pembroke, Bermuda,
More informationRegulatory Process for Reviewing Hurricane Models and use in Florida Rate Filings
Regulatory Process for Reviewing Hurricane Models and use in Florida Rate Filings Robert Lee, FCAS Florida Office of Insurance Regulation CAS IN FOCUS TAMING CATS OCTOBER 2012 1 Antitrust Notice The Casualty
More informationCompany s Audit and a Review of the Outside Auditor
CLARCOR INC. AUDIT COMMITTEE OF THE BOARD OF DIRECTORS CHARTER PURPOSES: The purpose of the Committee is to: (a) assist Board oversight of (i) the integrity of the Company s financial statements, (ii)
More informationACNB CORPORATION & SUBSIDIARIES BOARD AUDIT COMMITTEE CHARTER
ACNB CORPORATION & SUBSIDIARIES BOARD AUDIT COMMITTEE CHARTER ORGANIZATION The Audit Committee is a committee of independent members of the Board of Directors. Its function is to assist the Board in fulfilling
More informationMINNESOTA MUTUAL COMPANIES, INC. Guidelines of the Audit Committee of the Board of Directors
MINNESOTA MUTUAL COMPANIES, INC. Guidelines of the Audit Committee of the Board of Directors I. Audit Committee Purpose The Audit Committee is appointed by the Board of Directors to assist the Board in
More informationRESERVE BANK OF VANUATU OPERATIONAL RISK MANAGEMENT
RESERVE BANK OF VANUATU DOMESTIC BANK PRUDENTIAL GUIDELINE NO 12 OPERATIONAL RISK MANAGEMENT 1. This Guideline outlines a set of principles that provide a framework for the effective management of operational
More informationHow To Set Up A Committee To Check On Cit
CIT Group Inc. Charter of the Audit Committee of the Board of Directors Adopted: October 22, 2003 Last Amended: April 20, 2015 I. PURPOSE The purpose of the Committee is to assist the Board in fulfilling
More informationHEWLETT-PACKARD COMPANY BOARD OF DIRECTORS AUDIT COMMITTEE CHARTER
HEWLETT-PACKARD COMPANY BOARD OF DIRECTORS AUDIT COMMITTEE CHARTER I. Purpose and Authority The purpose of the Audit Committee (the Committee ) of the Board of Directors (the Board ) of Hewlett-Packard
More information1. promoting an efficient and effective financial system that adequately finances economic growth, and
Remarks by Ms. Phillips at the Asset/Liability and Treasury Management Conference of the Bank Administration Institute Remarks by Ms. Susan M. Phillips, a member of the Board of Governors of the US Federal
More informationAMPLIFY SNACK BRANDS, INC. AUDIT COMMITTEE CHARTER. Adopted June 25, 2015
AMPLIFY SNACK BRANDS, INC. AUDIT COMMITTEE CHARTER Adopted June 25, 2015 I. General Statement of Purpose The purposes of the Audit Committee of the Board of Directors (the Audit Committee ) of Amplify
More informationCOMMISSION DELEGATED DECISION (EU) / of 5.6.2015
EUROPEAN COMMISSION Brussels, 5.6.2015 C(2015) 3740 final COMMISSION DELEGATED DECISION (EU) / of 5.6.2015 on the provisional equivalence of the solvency regimes in force in Australia, Bermuda, Brazil,
More informationAddressing a Corporate Structure Issue
Addressing a Corporate Structure Issue BLENDED STRUCTURE Industry Manufacturing Motivation A manufacturer of safety products believed it had adequate insurance and cash flow to cover its silica claims,
More informationMajor Trends in the Insurance Industry
To survive in today s volatile marketplace? Information or more precisely, Actionable Information is the key factor. For no other industry is it as important as for the Insurance Industry, which is almost
More informationGUIDANCE NOTE FOR DEPOSIT-TAKERS. Operational Risk Management. March 2012
GUIDANCE NOTE FOR DEPOSIT-TAKERS Operational Risk Management March 2012 Version 1.0 Contents Page No 1 Introduction 2 2 Overview 3 Operational risk - fundamental principles and governance 3 Fundamental
More informationFiling Smart Financial and Data Services Filings Guide
The Filing Smart web page is divided into nine sections http://www.tdi.texas.gov/financial/indexsmart.html Filing Smart General Information NAIC Checklists Company Licensing and Registration Holding Company
More informationDumfries Mutual Insurance Company Financial Statements For the year ended December 31, 2010
Dumfries Mutual Insurance Company Financial Statements For the year ended December 31, 2010 Contents Independent Auditors' Report 2 Financial Statements Balance Sheet 3 Statement of Operations and Unappropriated
More information2012 US Insurance ERM & ORSA Survey Key results and findings
www.pwc.com 2012 US Insurance ERM & ORSA Survey Key results and findings June 2013 Henry Jupe Director, Insurance Risk and Capital Practice henry.m.x.jupe@us.pwc.com Antitrust notice The Casualty Actuarial
More informationThe Financial Insurance Guide for Investment Advisors
ESTABLISHED 1957 The Financial Insurance Guide for Investment Advisors Asset management firms require a special expertise in insurance product design and placement. Investment Advisors need to be concerned
More information9. Short-Term Liquidity Analysis. Operating Cash Conversion Cycle
9. Short-Term Liquidity Analysis. Operating Cash Conversion Cycle 9.1 Current Assets and 9.1.1 Cash A firm should maintain as little cash as possible, because cash is a nonproductive asset. It earns no
More information