This house believes that Solvency II and liquidity risk have reinvented the wheel.
With the pain of the $100 billion AIG bailout fresh in their minds, the G20 sanctioned action points 45 and 62 in April 2009. Their aim: harmonisation of capital supervision across the banking and insurance sectors.
One year on, the EU is ahead of the world and, once again, the UK is ahead in Europe. In Q1 2010, insurance and banking firms received stern letters from the FSA. The problem: poor quality models, financial reporting and inadequate systems and controls used to manage risks.
The new FS 09/1 has been singled out as a big change from previous insurance standards. 2010 is all about the specific, granular and accurate data that is now needed to run customised models to identify firms’ true risk profiles and to meet reporting standards - forcing much more difficult conversations with the regulator. Anyone who has read PS 09/16 will find this eerily familiar ...
At this debate we will discuss:
- What happens when it all goes wrong? Have we learnt the lessons of 2008?
- Whether the new approach to liquidity and solvency management makes sense?
- What ‘good systems and controls’ for these regimes look like. How will they work together in practice?
- What the implications are on the internal models, stress testing and reporting to management and regulators. What is it that usually goes wrong?
- To what extent the industry believes that there is a need for common standards, codes of practice, training, etc.
Come and join the discussion, with an expert panel comprising of:
- Clare Swirski, Partner Clifford Chance
- James Orr, Chief Actuary, General Insurance Actuaries Team, Wholesale Insurance, The Financial Services Authority
- Scott Eaton, Executive Managing Director, BroadStreet London
- Gez Llanaj, Solvency II subject matter expert, SAS
You will have the chance to debate the house view under the Chatham House Rule. The panel will be chaired by Capital Markets Chamber leader, PJ Di Giammarino, CEO of the regulatory think-tank, JWG.
The session will be followed by drinks, canapés and networking.