Insurance Risk & Capital 2015

Chair's opening remarks

Keynote address: Key priorities and challenges for the insurance industry in 2016

Speaker:
- James Lenton, CFO EMEA, AIG

Keynote address: The CRO as business strategy partner

Speaker:
- Raj Singh, Group CRO, STANDARD LIFE

PANEL DISCUSSION: Solvency II: Determining a path post 01/01/2016

• How has SII changed risk management practices?
• Are the fundamental objectives of SII (and comparable legislation) the correct ones? Will firms be able to fully subscribe to these?
• How do we leverage off SII reports, models, data and risk measures to ensure they are useful to the business?
• SII reporting – is the reporting schedule sustainable? How should you communicate the numbers?
• What direction will the regulators be taking post SII implementation and in light of implementation?
• Treatment of transitional measures – calculation and approval process.
• To what extent can things that are not working be changed or be made to work?
• How will firms keep the major stakeholders happy?

Panellists:
- David Innes, Group Capital and Financial Risks Director, RSA
- Lee Dobson, Solvency II Programme Director, LV=
- Louisa Renoux, Head of Solvency II, MUTUALITÉ FRANÇAISE
- Ronan Davit, Chief Risk Officer, EULER HERMES

Moderator: 
- Hugo Coelho, Assistant Editor, InsuranceERM

PANEL DISCUSSION: Performance and analytics in reporting: Establishing data and framework infrastructures to meet the ever increasing demands of regulatory reporting

• How collection/management and use of data is fundamentally changing the industry
• What frameworks and processes are in place to cope with the sheer proliferation of data and modelling?
• How are firms tackling the challenging regulatory reporting timelines?
  • Where are companies taking an approximate approach? Where are they making structural changes to the business?
• Preparing for the future: The demands of regulatory reporting look set to increase over the coming years, SII, Financial Stability, ECB, IFRS 4.2 … what should insurers being doing now with their data and reporting infrastructures in readiness?
• Using data to drive risk insights and add value to the business.
  • Is the business in a situation where they are able to run their own analytics and dynamic reports? 
• Gone are the days of actuarial and risk reporting being limited to Excel, what strategies should companies put in place to embrace the latest visualisation techniques?

Panellists:
- David Lodge, Global Data Governance Manager, ALLIANZ GLOBAL CORPORATE AND SPECIALTY
- Dominic Rau, Head risk aggregation and analytics, SWISS RE
- Zaneta Kovaliova, Director, global finance operations, AIG

Moderator:
- Andrew Collins, Director Pre Sales, ORACLE

PANEL DISCUSSION: Modern day risk management: A comparison of approaches to identifying and modeling emerging risks.

• Understanding the nature of risk in an interconnected world: how do risk management and risk modeling approaches need to adapt accordingly?
• What does an ideal emerging risk framework look like?
  • How is it structured?
  • Who is involved?
  • How is good information assimilated?
  • How do the outcomes inform the firm's strategic thinking?
  • How do you deal with non-quantifiable risks?
• We may be good at identifying emerging risks, but how can we be confident of pinpointing those risks that are of specific danger to our specific risk profile? Which ones do we act upon?
• Next steps

Panellists:

- Adam Seager, Director & Group Risk Manager,  ARGO GLOBAL
- Carol Collins, Head of Governance for UK and Europe, XLCATLIN
- Marcia Cantor-Grable, Director Emerging Risks and Regulatory Developments, PRUDENTIAL
- Peter Telford, Enterprise Risk Director, LEGAL & GENERAL

Moderator:
- Neal Writer, Director - Risk & Actuarial Services, EY

Lunch

PANEL DISCUSSION: Cyber risk: meeting the challenges of an increasingly digital world.

• Do we even understand the threat we are up against?
  • And if not, how do we begin to protect against it?
• Which cyber threats are causing the greatest concern?
• Regulatory expectations surrounding cyber risk policies
• What risk frameworks and practices do firms currently have in place to manage cyber risk exposure?
• How can cyber risk management be embedded in a way that is consistent with the existing ERM approach?
• Building the right team – what skill set do we require?
• How can the insurance industry as a whole gain control of the cyber threat?

Panellists:
- Daniel Roberts, Group Head of Risk, 1st CENTRAL GROUP
- Dave Canham, Head of Risk & Governance, UK & I, AVIVA
- Kevin Borrett, Chief Risk Officer, UNUM EEA GROUP

Moderator:
- Asa Gibson, News Editor, InsuranceERM

Keynote address: The role of sustainability in insurance

• Where should sustainability lie within the wider business?
• The balancing act between society, ecology and shareholder
• The role of the insurer in reducing the risks of climate change - how much should and do things like climate change influence our decision making?
• Should society and social responsibility be part of the risk model?
• Insurance products to encourage sustainable behaviour
• How does the emerging risk model incorporate climate change?
• Sustainable investment strategies: renewable products; green bonds
• Screening out investments based on environmental, social and governance factors

Speaker:
- Guy Miller, Chief Market Strategist & Head of Macroeconomics, ZURICH INSURANCE COMPANY

PANEL DISCUSSION: Responding to the regulatory pressures surrounding conduct risk: Instilling and embedding a culture of good conduct

• How will digital accelerate this need for a culture of good conduct
• Pragmatic, proactive and useful solutions to solve the conduct risk problem
• Conduct risk Management Information and analysis
• Ensuring consistency with conduct risk appetite

Panellists:
- Peter Tyson, Head of Conduct and Compliance, STANDARD LIFE
- Robert Semke, Chief Risk Officer EMEA, METLIFE
- Roger Dix, Chief Risk Officer, WESLEYAN ASSURANCE SOCIETY

Moderator:
- Justin Elks, BAXTER BRUCE

Special Insight Session: Deriving maximum benefit from the ORSA

• Establishing a dynamic set of monitoring and management information to deliver something useful to the business
• What is it we actually want the ORSA document to tell us?
• Is the ORSA document currently generating this information in a way that is helpful?
• How do you mold it together so that the Board is getting value?
• How is use test being used in business?
• Capital modeling/risk profiling over the medium term
• View on long term risks for ORSA and how this sits with strategic positioning
• Validation of ORSA rather than just the internal model

Speaker:
- Gaynore Moss, Chief Actuary, CANOPIUS

Chair's opening remarks

Regulatory keynote address: International global harmonization of risk and capital standards - the quest continues.

• Bridging the gap between EU and US – ICS & HLA – update on progress
  • Where does that leave SII?
  • Challenges and hurdles ahead for the development of a global capital standard
• Convergence of IFRS 2 phase 4 and US GAAP – update on progress
• Regulatory initiatives to prevent multiple standards going through.
• EU rules for recovery and resolution

Speaker
- Victoria Saporta, Director of Financial Policy, BANK OF ENGLAND

CRO panel discussion

• Creating a sound risk culture that is tangible and measurable and supports innovation
• Embedding a risk culture that supports the desired risk taking of the organization and doesn't stifle innovation
• How do you set actions and measurements to risk culture?
• Responding to corporate governance requirements - How do you demonstrate tangibly to the Board that there is a sound risk culture in place? 
• Exploring the use of predictive analytics in understanding and pre-empting employee behavior.
• What does the structure of the perfect risk management team look like today?
• What should the main focus now be for the risk team post SII?
  • How can we ensure the risk function becomes a value-add?
  • Structuring the optimal risk management team to respond to the evolving commercial expectations on the risk function.
    • Impact on the skill set required both of the CRO and the risk team
• SIMR (Senior Insurance Managers Regime) and how you shape your structure
• The evolving role of NEDs

Panellists:
- Andrew Pryde, Chief Risk Officer, BEAZLEY GROUP
- Alex Hindson, Chief Risk Officer, ARGO GROUP
- Andrew Sharpe, Chief Risk Officer, MUNICH RE

PANEL DISCUSSION: How current low interest rate environment and economic conditions are impacting business, risk and capital decisions.

• Changes in investment strategies/hunt for yield/alternative assets – are insurers starting to take more risks/use more complicated investment strategies
  • Do we have the skill set to invest in a potentially wider range of assets than before?
  • Will there be more skill transition between banks/investment firms and insurers?
  • Remaining relevant – how do you continue to offer meaningful long-term savings products and risk benefits that provide value for your customers?
  • Impact on business models with guarantees? What kind of products can we still maintain? How do we price those products?
• Product innovation and hedging strategies
• Preparing for an increasing rate environment – when will the shift come and how dramatic will it be?
• How do you ensure there will be enough capital to cover that shift?

Panellists:
- James Tufts, Chief Risk Officer, GUARDIAN FINANCIAL SERVICES
- Maria Luisa Gota, Head of Risk Management, POSTE VITA
- Mark Laidlaw, Chief Actuary, LV=

Moderator:
- Brian Heale, Senior Director, MOODY'S ANALYTICS

Special Insight Session: For risk managers and actuaries, 'Big Data' is more than a hype

The presentation will cover a revolution that is taking place in the world of data and algorithms which changes fundamentally not only the amount and types of data we can access, but how we work. 

It will include practical tips on what makes for success and what makes for an expensive distraction; as well as covering a number of case studies in the insurance industry.

We will set out how companies get a real competitive advantage from Big Data analytics.

Speakers:
- David Brown, KPMG UK
- Helen Stijnen, Director, Financial Risk Management, KPMG NETHERLANDS

PANEL DISCUSSION: Internal model vs. economic model for driving business decisions. Why internal model results are not that useful for steering the business: impact on your capital management approach.

• Are the internal model and economic model really one and the same thing?
• In which areas do the internal model and the economic model give different views? How do you manage those differences?
• What action do you take internally for your MI?
• Does this difference need to be reflected in your governance or not?
• If you are going to use an economic view to drive your business decisions, how do you apply a regulatory underpin?
• Feasibility of benchmarking for economic capital models

Panellists:
- Dominic Rau, Head of Risk Aggregation and Analytics, SWISS RE
- Heloise Rossouw, Executive Business Assistant to Group Chief Executive, OLD MUTUAL
- Richard Charlton, Head of Internal Model Oversight, PHOENIX GROUP

Moderator:
- Ed Morgan, Managing Director, Italy and Central & Eastern Europe (CEE), MILLIMAN

Special Insight Session: Capital Optimisation under SII

• Deciding how to use equity, debt and reinsurance
• Consideration of diversification benefit
• Volatility of debt and reinsurance markets 

Speaker:
- Alan Rae, Project Director, Corporate Finance, ACHMEA

Special Insight Session: Longevity in the 21st Century

• Latest research into longevity risk
• Longevity issues in the resale annuity market

Speaker:
- Joseph Lu, Director, Longevity Science, LEGAL & GENERAL

Panel Discussion: Liquidity Risk: Overhauling liquidity risk management strategies to brace for the liquidity squeeze

• What is driving the fear of a liquidity squeeze?
• Diminishing market liquidity, eg in corporate bonds
• Quantitative Easing
• Concentration risk
• European Market Infrastructure (Emir) Proposals for central clearing of derivatives – what impact would this have on insurer's existing liquidity management strategies?
• How are insurers responding:
• Stress testing of positions
• Strict limits on derivative exposures
• Building up of repo capabilities
• Adjusting investment portfolios to reduce use of derivatives
• Quantifying liquidity risk as a capital requirement

Panellists:
- Fabio Battaglia, Head of Investment and liquidity risk, GENERALI
- Jateen Vaghela, Head of Asset Liability Management, SUN LIFE FINANCIAL OF CANADA
- Mark Chaplin, Group Enterprise Risk Director, AVIVA

Moderator:
- Chris Cundy, Contributing Editor, InsuranceERM