www.pwc.dk
Solvency II
Clarification of current
regulations
SIX Financial Information 24th
of April 2014
Jette Lunding Sandqvist,
Actuary, Director PwC
Revision. Skat. Rådgivning.
Agenda
What’s in focus? A view from an actuary
• What’s happening regarding Solvency II (SII)
• What’s happening in Denmark
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What’s happening regarding SII
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SII - setup
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SII will be implemented the 1th of January 2016
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SII - 3 Pillar approach
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EIOPA Guidelines
The EIOPA guidelines from the 27th of September 2013* with interim measures in
the following areas:
1. System of governance
2. Forward looking assessment of the insurer’s own risks (based on
ORSA principles)
3. Reporting to regulators
4. Pre-application for internal models
guidelines for the preparation of Solvency II
*) Den 31. oktober blev de offentliggjort på dansk
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What’s happening in Denmark
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In Denmark we focus on ‘Ensartet kundebeskyttelse’
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Bekendtgørelse om solvens og driftsplaner
On 101 pages including 5 appendix
1.
Calculation of the solvency demand using the standardmodel
2. Calculation of the solvency demand using the standardmodel with
UserSpecificParameters
3. Calculation of the solvency demand using partiel or full internal
model
4. The Risk assesment, policy and documentation
5. Transitional rules
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In Denmark we focus on ‘Ensartet kundebeskyttelse’
Bekendtgørelse om solvens og driftsplaner
In force by 1st of January 2014
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Life Insurance: Calculation of life provisions
A Markov model: 7 stage model (”7 tilstandsmodellen”)
Genkøb
Aktiv
Invalid
Død
Aktiv
(fripolice)
Invalid
(fripolice)
Død
(fripolice)
Full stochastic model dependent on the Financial situation
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Life Insurance: 7 stage model
Challenge with the 7 stage model
Will surrender and paid up policies depend on the financial
situation?
• Will more people get unemployed?
• Will people need money and try to surrender ?
Modeling of management actions
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In Denmark we focus on ‘Ensartet kundebeskyttelse’
Bekendtgørelse om solvens og driftsplaner
Reporting by Q1 2014
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Reporting templates
Bekendtgørelse om solvens og driftsplaner
In Denmark the first reporting is in Q1 2014 (part of EIOPA Quarterly
Reporting Templates).
The EIOPA Guidelines for reporting is in fact Q1 2015.
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Take note of…
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Take note of…
• A lot of things is going on: Both in Europe and in
Denmark
• Stay in touch with the actuaries and the CRO
• Look at EIOPA’s homepage - but often that is too late
• Know your colleagues taking part in the work in
‘Forsikring & Pension’. They get the information’s
beforehand, where changes are possible
• Be aware of how you calculate the interaction between
the financial situation and policyholder behavior in your
company
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Any questions?
Jette Lunding Sandqvist
Director, aktuar, FS
T 3945 3817
M 6155 1134
E [email protected]
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af interesse, og gør det ikke ud for professionel rådgivning. Du bør ikke disponere på baggrund
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Something to look at….
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Solvency II – Open EIOPA Consultations
JC/CP/2014/03 – EBA, ESMA AND EIOPA’s JOINT CONSULTATION PAPER RELATED TO THE DRAFT
TECHNICAL STANDARDS ON RISK-MITIGATION TECHNIQUES FOR OTC-DERIVATIVES (end on 14
July 2014)
CP-14/010 CONSULTATION PAPER ON THE GUIDELINES ON THE OPERATIONAL FUNCTIONING OF
COLLEGES OF SUPERVISORS (end on 30 June 2014)
Public consultation on the Set 1 of the Solvency II Implementing Technical Standards (ITS)
CP-14/004 Consultation Paper on the proposal for ITS with regard to the procedures to be used for
granting supervisory approval for the use of ancillary own-fund items (end on 30 June 2014)
CP-14/005 Consultation Paper on the proposal for ITS on Internal Models approval processes (end on 30
June 2014)
CP-14/006 Consultation Paper on the proposal for ITS on the process to reach a joint decision for group
internal models (end on 30 June 2014)
CP-14/007 Consultation Paper on the proposal for ITS on the procedures to be followed for the
approval of the application of a matching adjustment (end on 30 June 2014)
CP-14/008 Consultation Paper on the proposal for ITS on special purpose vehicles(end on 30 June 2014)
CP-14/009 Consultation Paper on the proposal for ITS with regard to the supervisory approval
procedure to use undertaking-specific parameters (end on 30 June 2014)
JC/CP/2014/02 – EBA, EIOPA and ESMA’s joint consultation paper related to the draft Guidelines on
the convergence of supervisory practices for financial conglomerates (end on 12 June 2014)
JC/CP/2014/01 – EBA, EIOPA and ESMA’s Joint Consultation Paper related to the Draft Implementing
Technical Standards on the mapping of ECAIs’ credit assessments (end on 5 May 2014)
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