Insurance Risk & Capital EMEA

KEYNOTE ADDRESS: WITH THE GIFT OF FORESIGHT: WHAT WILL THE WORLD LOOK LIKE 10 YEARS FROM NOW?

• Where will the next major challenge to the insurance industry come from?
• Strategic forces and risk for the industry (eg changes in competitors, suppliers, rivals, substitutes etc)
• What is the face of the future disruptor? Amazon? Google? Facebook?
• How do we position ourselves to meet those challenges?
• What risks will we  be facing 10 years from now?
• What products will we be underwriting to face those risks?
• How can the insurance industry ensure it remains relevant and support innovation and business growth to keep pace with that change?
• Will our existing business systems be viable or relevant 10 years from now? And if not, how are they being changed?

Keynote Speaker: Alison Martin, Group Chief Risk Officer, ZURICH

KEYNOTE PANEL: POLITICAL RISK AND UNCONVENTIONAL POLICY – HOW DO YOU MANAGE MARKETS AND STEER A COURSE IN AN INCREASINGLY UNCERTAIN WORLD?

• Key geopolitical risks on the radar and their potential impact
• The rise of US protectionism and how it is changing the trade landscape
• New forms of protectionism are gaining traction: Financial, Regulatory, Data, Currency, Environmental, Sanitary, Security, Intellectual Property
• The Chinese influence outside APAC region is rising, in part owing to the OBOR initiative
• Trump administration and US tax changes under Trump
• Fragmentation in Europe
• Russia NATO conflict
• Political risks in South Africa, Zimbabwe
• Brexit
• What might Brexit mean for political stability?
• Brexit – implications for the UK & European markets
• Preparing for Brexit – Risk or Opportunity for UK insurers?
• How would we like (or should we expect) Brexit to change the regulatory landscape for UK insurance firms?
• An opportunity to level the playing field?
• How do you steer a course amongst such uncertainty?
• Scenario planning approaches
• Understanding the interconnectedness of geopolitical risks
• Viewing geopolitical risks in the context of other risks

Panelists:
Sue Kean, Group Chief Risk Officer, OLD MUTUAL PLC
Ana Boata, Senior Economist Europe, EULER HERMES
Tobias Buecheler, Head of Regulatory Strategy, ALLIANZ SE

Moderator: Ronan McCaughey, Commercial Editor and Deputy Editor, InsuranceERM

CRO PANEL: THE CRO AND RISK FUNCTION’S ROLE IN SUPPORTING A GROWTH AGENDA AND THE INSURANCE INDUSTRY’S TRANSFORMATION

• Given potential game changing trends (such as driverless cars) what is the risk manager's role in supporting and challenging management to ensure the risks are understood and properly managed and the growth agenda can be achieved.
• Making the most of available technologies.
• Use of data and analytics to understand customer behaviour and trends.
• Creating a culture that embraces strategic thinking and the pursuit of opportunity where failure is expected in order to achieve longer-term returns.
• How do we report and manage opportunities as they arise?
• How should the risk function engage with, monitor and provide oversight of innovation hubs/initiatives?

Panelists:

Alex Hindson, Chief Risk Officer, ARGO GROUP
Philippa Herz, Chief Risk Officer, OneFamily
Justin Skinner, Chief Risk Officer, VITALITY

Moderator: Cintia Cheong, Staff Writer, InsuranceERM

PANEL: WHAT WILL BE THE NEXT BIG RISK(S) TO HIT THE INSURANCE INDUSTRY?:

There is much focus on insurtech and risks arising from new technologies, but which other emerging risks should be on our radar?

• Key emerging risks on the radar and why?
• What approach have you taken to capture these emerging risks?
• Can any of these emerging risks happen at the same time? What makes you think this?
• Perceived potential impact of these risks?
• How as insurers should we be responding & adapting to accommodate these risks?

Panelists:

Dr Ruth Middleton, Chief Risk Officer, AIG Life
Anthony Brown, Group Risk Director, PRUDENTIAL
Philippe Beraud, Head of Emerging Risks, SCOR GROUP

Moderator: Michael Bartholomeusz, Non-Executive Deputy Chair, ORIC INTERNATIONAL

SETTING UP A RISK FRAMEWORK - WHAT CAN WE LEARN FROM THE PAST?

• Why is a risk framework necessary?
• Crises repeatedly appear - in different new shapes - can we set up a general risk framework resilient for new types of crisis?
• How have risk management tools evolved over time and how do we put those tools to work in present times?
• To what extent can mathematical tools aid us when setting up a proper risk framework?

Speaker: Andreas Lindell, Chief Risk Officer, SKANDIA LIV

KEYNOTE ADDRESS: WHAT CONFRONTATION AND CONFLICT LOOKS LIKE TODAY

General Sir Richard Barrons KCB CBE, Managing Partner, Wychwood Partners LLP

BUILDING RESILIENCE: IDENTIFYING, ASSESSING AND MANAGING NON-AFFIRMATIVE CYBER EXPOSURES

• Setting a clear strategy and risk appetite for silent cyber risk
• Assessing/quantifying capital against cyber risks
• Circumnavigating lack of historical loss data
• Progress towards modeling aggregation
• What are the potential events that could cause huge cyber accumulation losses?
• Bridging the skills gap: building and maintaining the right skill set.
• How will cyber risk be underwritten in the future?
• Regulatory response to firms' approaches

Mark Camillo, Head of Cyber, EMEA, AIG

PANEL DISCUSSION: DIGITAL RISKS AND SETTING YOUR DIGITAL APPETITE

• How are insurers coping with risk issues that emerge from the use of digital technologies?
• Operational risks from use of cloud, heightened cyber security requirements
• Risks through use of AI and machine learning
• Ethical concerns, for example in discriminatory marketing and pricing algorithms
• Hidden risk concentrations in outsourced activities
• Defining a risk appetite in the digital world
• Can risk appetites be as agile as IT developments
• Strategies for combatting a lack of historical data

Panelists:

Dominic Rau, Head Risk Governance and Steering, SWISS RE
Jose Morago, Deputy Chief Risk Officer and Head of Enterprise Risk, FINANCIAL CONDUCT AUTHORITY
Robert Duncan, CISO, Direct Line Group

Moderator: Chris Cundy, Managing Editor, InsuranceERM and Insurance Asset Risk

COFFEE BREAK

PANEL DISCUSSION: EMBRACING THE DIGITAL ERA: TECH DEVELOPMENT AND ADAPTATION TO MEET CUSTOMER NEEDS

Customer service is a competitive differentiator in the insurance industry and the inability to respond to and meet rapidly changing and evolving customer needs has become a key emerging risk for insurers.

• What does the modern customer want and how can/do we achieve it?
• Adapting business models to deliver a more customer centric service
• What drives renewals and customer acquisition? – price vs. the way consumers transact
• Redefining product experience and distribution channels
• A business strategy that spans the entire customer journey
• Are we focusing our digitisation efforts in the right places?
• What are our insurtech start-up competitors doing that we aren't?
• Working together with insurtech firms? What makes for a successful collaboration?

Panelists:

Andreas Lindell, Chief Risk Officer, SKANDIA LIV 
Dylan Bourguignon, CEO, So-sure
Truls Erik Aasen, Chief Risk Officer, GJENSIDIGE
Raphael Borrel

Moderator: Paul Walsh, Staff Writer, InsuranceERM

PUTTING A FIRM’S STRATEGY AND VIABILITY OF THE BUSINESS AND CAPITAL MODEL TO THE TEST. WHAT IS THE BUSINESS MODEL THAT WILL ENSURE SURVIVAL?

• How are firms' risk, capital and investment teams responding to today's diverse and demanding challenges:
• The need to evolve distribution models and respond to technological advancement & market disruptions
• Recent large catastrophe losses
• Continued market volatility /uncertainty
• Is scale the answer and therefore increased M&A activity in order to remain relevant?
• Reverse stress tests of companies' business models. What value can be gained from them?

Speaker: Lukas Ziewer, Group Chief Risk Officer, ATHORA

TO WHAT EXTENT DO CURRENT CAPITAL MODELLING PRACTICES MEET BUSINESS EXPECTATIONS?

• Where are the limitations/frustrations?
• Managing regulatory limitations on how quickly you can adapt and validate your model.
• Can new technology and improved analytics help evolve the industry's capability in capital management?
• Challenges of making significant changes to the capital model platform
• Making a business case
• Taking an "agile" piece by piece approach

Speaker: Penny Shaw, Group Chief Risk Officer, HANOVER GROUP, CHAUCER SYNDICATES 

End of Day one – Drinks reception

KEYNOTE ADDRESS: HOW CAN THE INSURANCE INDUSTRY BE A FORCE FOR GOOD TOWARDS A MORE SUSTAINABLE WORLD ECONOMY

Extreme weather events and failure of climate change mitigation and adaption both rank in the top 5 risks most likely to happen in the next 10 years according to the Global Risks Report 2018. What role can the insurance industry play in building resilience and mitigating the impact of climate change?

Speaker: John Scott, Head of Sustainability Risk, ZURICH INSURANCE

PANEL DISCUSSION: INVESTMENTS AND CAPITAL MANAGEMENT FROM THE RISK PERSPECTIVE

• Has Solvency II changed your asset allocation strategy?
• Does the current trend towards illiquid investment have legs?
• Does the low yield environment portend a change in business strategy?
• Does liquidity in investments matter for an insurer?

Panelists:

Eugene Dimitriou, Head of Insurance Solutions, COLUMBIA THREADNEEDLE INVESTMENTS
Carl Moxley, Chief Risk Officer, LEGAL AND GENERAL RETIREMENT
Donald Macleod, International Financial Group, RL360
Richard Charlton, Deputy Chief Risk Officer, CANADA LIFE

Moderator: Vincent Huck, Editor, Insurance Asset Risk

PANEL DISCUSSION: BOARD INTERACTION:

The onus placed on the board has increased significantly with the introduction of SII, SMCR, GDPR etc. How do we bring the board along with all of the new technology and how do we make sure that they understand the risks and opportunities that these represent?

Panelists:

Fabrice Brossart, Chief Risk Officer, AIG
Giles Fairhead, Chief Risk Officer, PENSION INSURANCE CORPORATION
Laura Santori, INED, Chair of the Audit and Risk Committee, AIG Life Ltd
Clifton Melvin, Chair of the Audit Committee, Saga Services, Saga Personal Finance, Chair of Standard Life With-Profits Committee, Director and Chair of the Risk Committee, Unum UK

Moderator: Roger Dix, Chief Risk Officer, WESLEYAN

PANEL DISCUSSION: THE RISK MANAGEMENT SKILL-SET OF THE FUTURE. HOW DOES THE RISK MANAGER REMAIN RELEVANT?

• What skill/background does today's risk manager need in order to keep pace with the digital era?
• Traditional modeling work vs. strategic risk management
• How can we use technology and AI to do the heavy lifting around pure compliance and free risk and actuarial teams to concentrate on strategic issues and to work at full potential?
• How different are the requirements on risk managers today vs. before implementation of SII?
• The cost paradox: when is risk management not a cost? Evidencing value in having a risk team involved in more non-traditional areas of the business.
• How do you ensure that the theoretical work carried out by the risk team translates into tangible help for the business/consumer?

Panelists:

Jim Ewing, Chief Risk Officer, AEGON UK
Reinier Tienkamp, Head of Risk, MS AMLIN INSURANCE
Dr. Kathrin Anne Meier, Chief Risk Officer, ALLIANZ GLOBAL CORPORATE AND SPECIALTY
Russel Goldstein, Chief Risk Officer, DARTA SAVING LIFE ASSURANCE 

Moderator: Ronan McCaughey, Commercial Editor and Deputy Editor, InsuranceERM

PANEL DISCUSSION: MEETING REGULATORY, MARKET AND STRATEGIC CHALLENGES AS A SMALL INSURER

• The SII burden and the proportionality debate
• Resourcing limitations
• Divergent regulatory approaches to proportionality
• Managing compliance and regulatory relationships (with no designated supervisors and limited resources)

Panelists:

Ross McGee, Director, RM Risk Consulting Ltd  
Simon Spurr, Group Head of Risk Management, INTERNATIONAL GENERAL INSURANCE
Roger Dix, Chief Risk Officer, WESLEYAN

Moderator: Ronan McCaughey, Commercial Editor and Deputy Editor, InsuranceERM

IN CONVERSATION WITH GABRIEL BERNARDINO

Gabriel Bernardino, Chairman, European Insurance and Occupational Pensions Authority (EIOPA)

Christopher Cundy, Managing Editor, INSURANCEERM

PANEL: REGULATORS IN CONVERSATION: WHERE WILL THE SUPERVISORY SPOTLIGHT BE IN 2019?

• Which key risks are on the regulator's radar and what steps are being taken to address these risks
• Supervisory approach to Brexit
• Update on the run-up to the SII review
• How is GDPR influencing business strategy and processes?

Panelists:
Sylvia Cronin, Director of Insurance Supervision, CENTRAL BANK OF IRELAND
David Rule, Executive Director, Insurance Supervision, BANK OF ENGLAND
Gabriel Bernardino, Chairman, European Insurance and Occupational Pensions Authority (EIOPA)

Moderator: Chris Cundy, Managing Editor, InsuranceERM and Insurance Asset Risk

PANEL DISCUSSION: INTERNAL MODELS – LESSONS LEARNED 3 YEARS IN

• Now the noise surrounding approval has died down, how is it working in practice?
• Risks and opportunities from the model
• Are you using the model in the way you had hoped/intended?
• How effective/useful is it in driving business decisions?
• Anything you are planning to do differently?
• What changes are you making?
• Do the regulators have the necessary skills and resources to keep everything in line as intended?
• A look at beyond the horizon. We set a capital number on a 3 year basis to ultimate yet we focus on 1 in 200 year losses and a 1 in 1 profit, why? Should we not look at a 1 in 5 loss and profit over a longer sustained exponential growth?

Panelists:

Frieder Knüpling, Chief Risk Officer, SCOR
Greg Shepherd, Chief Risk Officer, Markel International and Global Head of Risk Management, MARKEL CORPORATION
Michael Hosking, Chief Risk Officer, FARADAY UNDERWRITING

Moderator: Vinaya Sharma, Actuary and Managing Director, Quantitative Risk Management, Inc.

CONSUMER RISK PERCEPTION AND INSURANCE CUSTOMER BEHAVIOURS

• Consumers are starting to explore over the counter genetic testing to learn about their health risk. As they get risk relevant information revealed will they buy extra insurance cover? What is the anti-selection risk the insurance industry is faced by such behaviour?
• Consumers may also decide to take risk reducing behaviors to manage genetic risk. Will genetic tests help to change people's health behaviours and if so for how long and with what effect? Will this potentially reduce mortality risk for life insurers?
• As the population is becoming older the burden of chronic diseases is increasing. Diabetes is one such condition which shows the potential to revert by taking significant health behaviour changes. Can the insurance become part of the customer disease management solution by rewarding healthy behaviours. Will this bring benefits to customer loyalty and increase book performance?

Speaker: Dr Christoph Nabholz, Head Life & Behaviour R&D, Managing Director, Group Underwriting, SWISS RE

SPECIAL INSIGHT PRESENTATION: THE REGULATORS APPROACH TO IDENTIFYING, ASSESSING AND MITIGATING THE ROOT CAUSES OF BEHAVIOURAL, CONDUCT AND CULTURAL RISK - LESSONS LEARNED FROM DE NEDERLANDSCHE BANK

• Does conduct risk receive an appropriate attention and consideration?
• In terms of potential losses how significant is conduct risk compared to other key risks?
• How close are we to being able to measure culture in a quantifiable and verifiable way? Or will it always require a qualitative judgement?
• How do you include conduct and operational risk in your considerations?
• Treatment of sub-cultures within an organisation.
• Importance of the recruitment process – the inherent value of individuals and what motivates them

Speaker: Wijnand Nuijts, Manager Supervision on Governance, culture and organizational behavior, DE NEDERLANDSCHE BANK

PANEL DISCUSSION: CHALLENGES AND RISKS ASSOCIATED WITH IFRS 17

• Should the risk/actuarial teams be driving this rather than finance?
• Risks to the business if the risk team isn't at the forefront of the IFRS drive
• Financial risks to business if all principles of IFRS 17 are not fully understood?
• Risk of detracting resource and focus from other areas and priorities of the business
• Determining and understanding future impact on capital modelling and capital planning
• Whose responsibility is it in making sure underlying systems and data is IFRS proof? What actions are being taken?
• What elements of SII can we piggyback for IFRS?
• What planning/action can and should be taken now?
• Resource implications

Panelists:

Pernille Jul Overby, Chief Risk Officer, INDUSTRIENS PENSIONSFORSIKRING
Jamie Grant, Reporting Actuary, LANCASHIRE INSURANCE COMPANY (UK) LIMITED
Dean Buckner, Co-founder, EUMAEUS, Director, Leasehold Knowledge Partnership and Former Senior Technical Specialist, PRA

Moderator: Milena Lacheta, Head of Regulatory and Ratings Advisory, EMEA

Close of conference