Solvency II Training

Location	Date	Price	Details	Register
London	15-17 Sep, 10	€ 2495.00 EUR	Download	Register Now
London	17-19 Nov, 10	€ 2495.00 EUR	Download	Register Now

Preparing for the Solvency II Directive of the European Union

OVERVIEW

A three-day practical training programme designed to provide delegates with the knowledge and skills needed to understand and support:

Compliance with the Solvency II & Reinsurance Directives of the EU
Promote Best Practice & International Standards that align with Business & Regulatory Standards

COURSE SYNOPSIS

Introduction

The European Union’s Legislative Process. Directives and Regulations
The Financial Services Action Plan (FSAP) of the European Union
Solvency II and the Lamfalussy Process
Level 1: Framework Principles
Level 2: Implementation of Principles. Detailed Technical Measures
Level 3: Strengthening Cooperation Among Regulators
Level 4: Enforcement
Overview of the Solvency I Framework
From Solvency I to Solvency II
Solvency II Key Players
Committee of European Insurance and Occupational Pension Supervisors (CEIOPS)
European Insurance and Pension Committee (EIOPC)
CEA (Comité Européen des Assurances) – the European Insurance and Reinsurance Federation
The International Association of Insurance Supervisors (IAIS)

Overview of the Solvency II Directive

Solvency II: An Overview
A Risk Based Approach
A Unified Legislative Basis for Prudential Regulation of Insurers and Reinsurers
Risk-Based Capital Allocation

Pillar 1: The Financial Resources Needed to be Considered Solvent

The Solvency Capital Requirement (SCR)
The Standard Approach
The Internal Model
The Collection of Additional Historical Data
External Data
The IT Challenge
The Minimum Capital Requirement (MCR)

Pillar 2 and the Supervisory Review Process
Own Risk and Solvency Assessment (ORSA)

ORSA as an Internal Assessment Process
ORSA as a Supervisory Tool
The role of the ORSA - Not a Third Solvency Capital Requirement

Pillar 3 and Risk Disclosure Requirements

Solvency and Financial Condition Report
The Solvency II Directive

Scope of the Application
Authorisation
Important Definitions

General Principles of Supervision

Home vs. Host Country
Information to be provided for Supervisory Purposes
Capital Add-on

System of Governance

General Governance Requirements
Risk Management
Internal Controls
Internal Audit
Actuarial Function
Outsourcing
Own Risk and Solvency Assessment
Own Risk and Solvency Assessment and CEIOPS

Public Disclosure

Professional Secrecy and Exchanges of Information
Agreement with Third Countries

Rules Relating to the Valuation of Assets and Liabilities, Technical Provisions, Own Funds, Solvency Capital Requirement, Minimum Capital Requirement and Investment Rules

Valuation of Assets and Liabilities
Calculation of Technical Provisions
Recoverables from Reinsurance Contracts and Special Purpose Vehicles
Own Funds
Determination, Classification, Eligibility of Own Funds

Solvency Capital Requirement

Requirement Using the Standard Formula or an Internal Model
Value-at-Risk
The SCR and the Value-at-Risk Measure Calibrated to a 99.5% Confidence Level over a 1-year Time Horizon
Calculation of the Solvency Capital Requirement
Structure of the Standard Formula
Design of the Basic Solvency Capital Requirement
Capital Requirement for Operational Risk

Full and Partial Internal Models

Calculation of the Minimum Capital Requirement
Insurance and Reinsurance Undertakings in Difficulty or in an Irregular Situation
Identification and Notification of Deteriorating Financial Conditions by the Insurance and Reinsurance Undertaking
Non-Compliance with the Solvency Capital Requirement
Non-Compliance with the Minimum Capital Requirement
Supervisory Powers in Deteriorating Financial Conditions
Withdrawal of Authorisation

Right of Establishment & Freedom to Provide Services

Conditions for Branch Establishment
Branches Established within the Community and Belonging to Insurance or Reinsurance Undertakings whose Head Offices are Outside the Community
Principles and Conditions of Authorisation
Equivalence
Subsidiaries of Insurance and Reinsurance Undertakings Governed by the Laws of a Third Country and Acquisitions of Holdings by such Undertakings
Third-Country Treatment of Community Insurance and Reinsurance Undertakings

Supervision of Insurance and Reinsurance Undertakings in a Group

Group Supervision: Definitions, Cases of Application, Scope and Levels
Supervision of Group Solvency
Choice of Calculation Method and General Principles
Choice of Method
Related Insurance and Reinsurance Undertakings
Intermediate Insurance Holding Companies
Related Third-Country Insurance and Reinsurance Undertakings
Related Credit Institutions, Investment Firms and Financial Institutions

Calculation Methods

Method 1
(Default method):
Accounting Consolidation-Based Method
Group Internal Model
Method 2
(Alternative method):
Deduction and Aggregation

Third Countries

Parent Undertakings Outside the Community - Verification of Equivalence
Parent Undertakings Outside the Community - Absence of Equivalence
Parent Undertakings Outside the Community - Levels
Cooperation with Third Countries Supervisory Authorities

The Reinsurance Directive

Directive 2005/68/EC of 16 November 2005 on Reinsurance
Reinsurance, Captive Reinsurance Undertakings, Finite Reinsurance
Authorisation
Principles and Methods of Financial Supervision
Supervision of Branches Established in Another Member State
Special Purpose Vehicles (SPV’s)
Third Countries
Transposition

The Solvency II Directive & Non-EEA Countries

Solvency II, the Reinsurance Directive and Countries Outside of the European Economic Area

Closing

The Impact of Solvency II
Translating Complex Rules Into Daily Activities
Comparing and Contrasting Basel II & Solvency II
The Differences
What is Next
The Level 2 – Technical Measures
Solvency II: A Risk that can become an Opportunity