Director, Advisory Services
Sandy maintains a close interest in regulatory developments worldwide and has presented to various EIOPA working parties on the minutiae of Solvency II. Sandy formerly worked for Barrie & Hibbert and joined Moody’s Analytics upon the company's acquisition.
Previously, he was Head of Profit Reporting at Scottish Widows, one of the largest UK Life Offices, and before that he worked for General Electric, Citibank, and Ernst & Young. Sandy is a Fellow of the Institute of Actuaries and has co-authored papers presented to the Institute of Actuaries on the Modeling of Extreme Market Risk Events and Embedded Values.
Coverage this month includes the International Monetary Fund (IMF) recent Article IV on consultation with Chile, are encouraging institutional investors to give preference to investing in companies with good governance standards. The Australian Prudential Regulation Authority (APRA) has highlighted sustainability as a key theme in its submission to a Parliamentary Committee enquiry into the life insurance industry. While APRA has not included sustainability in regulation, the knowledge that they are interested in it might have an influence on insurers' activities. The United States Federal Insurance Office, published its fourth report on the insurance industry, and its first report on the protection of consumers and access to insurance.
Coverage this month includes an article from the Secretary General of the International Association of Insurance Supervisors (IAIS) which directly addresses the suggestion that a global unified risk-based insurance capital standard is not a realistic goal given the existing divergent approaches. A speech by Verena Ross of the European Securities and Monetary Authority, one theme of the speech is regulators need for high quality data. The UK's Prudential Regulation Authority's (PRA) thinking about insurers using an internal model to calculate their required capital. The PRA is concerned that the output of an insurers internal model may drift, or evolve, over time to become a weaker capital measure.
This newsletter provides information about key developments in insurance regulations worldwide. New articles are sorted by country, and are associated with keywords.
Coverage this month includes the latest newsletter from the International Association of Insurance Supervisors (IAIS) highlights their new Self-Assessment and Peer Review (SAPR) program. This month BaFin produced an update on the “day 1 reporting” and the first quarterly reporting under Solvency II.
Coverage this month includes, a report by the International Monetary Fund (IMF) on risks in the Insurance Sector. The Insurance Sector also features in the April edition of the overall Global Financial Stability Report, the IMF's bi-annual report which considers risks to the world's financial system. A review from Mark Zelmer from the Office of the Superintendent of Financial Institutions of Canada's new Life Insurance Capital Adequacy Test. The China Regulatory Commission (CIRC) rollout of its new regulatory framework continues with the publication of a set of reporting templates.
The increased focus and attention on the insurance industry are illustrated by the acceleration of regulatory efforts across the globe. Keeping up with the pace of regulatory change in the current environment is one of the greatest challenges facing any insurance company.
This paper discusses the validation of the risk factor element of firms' internal models, particularly in the context of 1-year VaR capital models. Examples of back-testing, sensitivity testing and stress and scenario testing of equity, interest rate and credit models are developed to illustrate the challenges that a rigorous validation process must address.