Details

Executive's Guide to Solvency II

Wiley and SAS Business Series 1. Aufl.

von: David Buckham, Jason Wahl, Stuart Rose
60,99 €
Verlag:	Wiley
Format:	EPUB
Veröffentl.:	23.09.2010
ISBN/EAN:	9780470925706
Sprache:	englisch
Anzahl Seiten:	208

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Beschreibungen

Titelbeschreibung

A straightforward guide to the evolution, benefits, and implementation of Solvency II Providing a guide to the evolution, practice, benefits, and implementation of Solvency II, Executive′s Guide to Solvency II deftly covers this major European regulation which ensures that insurers can meet their risk–based liabilities over a one–year period to a 99.5% certainty. Part of the Wiley and SAS Business series, this book will guide you through Solvency II, especially if you need to understand the subtleties of Solvency II and risk–based capital in basic business language. Among the topics covered in this essential book are: <ul> <li>Background to Solvency II</li> <li>Learning from the Basel Approach</li> <li>The Economic Balance Sheet</li> <li>Internal Models</li> <li>People, Process, and Technology</li> <li>Business Benefits of Solvency II</li> </ul> Executive′s Guide to Solvency II has as its aim an explanation for executives, practitioners, consultants, and others interested in the Solvency II process and the implications thereof, to understand how and why the directive originated, what its goals are, and what some of the complexities are. There is an emphasis on what in practice should be leveraged upon to achieve implementation, specifically data, processes, and systems, as well as recognition of the close alignment demanded between actuaries, the risk department, IT, and the business itself.

Inhaltsverzeichnis

Preface ix Chapter 1 The Evolution of Insurance 1 Origins of Risk 1 Early Risk Instruments 2 Role of Insurance in Economic Growth and Prosperity 6 Conclusion 8 Chapter 2 Insurers’ Risks 11 Insurable and Uninsurable Events 11 Risk Taxonomy 12 Underwriting Risk 13 Market Risk 22 Credit Risk 25 Operational Risk 27 Liquidity Risk 28 Risk Transfer and Mitigation 30 Conclusion 32 Chapter 3 Solvency II Chronology 33 Need for Insurance Regulations 33 Why Do Insurers Fail? 34 Causes of Failure 36 Initial Solvency Directives 38 Process of the Solvency II Project 44 Conclusion 52 Chapter 4 Learning from the Basel Approach 53 Regulation in the Context of the Credit Crisis 53 Evolution of Banking Regulation 57 Application to Solvency II: Regulation 60 Application to Solvency II: Business Logic 61 Lessons from the Credit Crisis 67 Conclusion 70 Chapter 5 The Solvency II Directive in Brief 71 What Is Solvency II? 71 Solvency II Is Principles-Based 73 Partial and Internal Models 74 Economic Capital 75 The Economic Balance Sheet 76 Structure of the Directive 77 Conclusion 85 Chapter 6 The Economic Balance Sheet 87 Total Balance Sheet Approach 87 Quantitative Stipulations of the Level 1 Text 95 The Standard Formula 100 Non-Life Underwriting Risk Module 104 Market Risk Module 105 Default Risk Module 107 Conclusion 108 Chapter 7 Internal Models 111 Complexity of Implementation 111 Definition and Scope of Internal Models 113 Internal Models Application 114 Tests and Standards 119 Conclusion 128 Chapter 8 People, Process, and Technology 131 Key to a Successful Solvency II Project 131 People 132 Process 135 Technology 137 Conclusion 143 Chapter 9 Business Benefits 145 Regulation Past and Present 145 Benefits of an Enterprise Data Management Framework 148 Benefits of an Economic Balance Sheet 150 Benefits in Perspective 152 Benefits beyond Solvency II 153 Conclusion 154 Notes 157 Glossary 171 Selected References 181 About the Authors 185 Index 187

Autorenportrait

DAVID BUCKHAM is the founder and president of Monocle Solutions, an international risk assessment and optimization company that provides various products and consulting services by way of intellectual property. JASON WAHL is head of research at Monocle Solutions. His areas of interest include regulation of financial institutions and financial stability. STUART ROSE is Global Insurance Marketing Manager at SAS Institute, a market-leading business intelligence and analytics software vendor. He has worked for a variety of software vendors where he was responsible for marketing, product management, and application development.

Back cover copy

EXECUTIVE'S GUIDE TO SOLVENCY II As a major regulation covering the solvency of European life and non-life insurers, Solvency II is expected to be uniformly implemented across the European Union (EU) in 2012. Inspired to some extent by banking's Basel II legislation, Solvency II will use a similar three-pillar structure that will cover both quantitative elements and qualitative aspects that influence the risk-standing of an insurer. The principles-based nature of the regime represents a far-reaching innovation in risk-based regulation. It presents an immediate challenge and opportunity to the European insurance industry, but is also being observed with keen interest by industry players and regulators around the world. A practical foundation to the Solvency II process for executives, practitioners, and consultants, Executive's Guide to Solvency II covers everything you need to know about this important directive—all in one accessible source—with coverage of: <ul> <li>The history of insurance in terms of the individual's need for financial diversification</li> <li>A chronology of the Solvency II project process</li> <li>The continued relevance of regulation in its current institutional genre</li> <li>The structure of Solvency II, with specific focus on requirements insurers must fulfill under a holistic three-pillar risk management approach</li> <li>The risk-based economic balance-sheet approach, its quantitative requirements, and calibration under the standard formula approach</li> <li>Techniques, challenges, and complexities of internal models</li> <li>Why you need the right people, processes, and systems to successfully drive an enterprise-wide risk management project</li> </ul> It's time for your organization to get familiar with the new rules of this regulation that will have far-reaching implications, initially for EU insurers, and thereafter around the world, as regulators move toward principles-based regulation. Destined to become your standard reference for answers on Solvency II, Executive's Guide to Solvency II is full of practical advice, compiling an overview of the many issues your company will likely face in dealing with this forthcoming regulation.