David Innes, RSA Insurance Group
Preparing for Solvency II has been long and arduous; now we are firmly in the implementation phase, fresh challenges are arising. As group capital and financial risk director for UK general insurer RSA, David Innes was at the sharp end of the firm's internal model application and is now overseeing the next chapter. A longstanding industry representative on Solvency II matters, he chairs the Association of British Insurers' new prudential regulation committee, which will look closely at the IAIS international capital standard as well as Solvency II issues, such as reporting and internal model change processes.
What do you enjoy most about your role?
The constant variety and challenge of the role means that no two days are ever the same. One of the best days was when RSA achieved internal model approval – it was both a great joy but also a huge relief.
What are the major challenges ahead?
There are a number for insurers and risk individuals including: How will firms evolve Solvency II compliance into activity that is truly useful? How will firms with internal model approval maintain the appropriateness of the internal model? How will risk professionals show that they add value rather than being potentially seen as a compliance burden? And most topically, what will be the outcome of the EU referendum?
What have you learnt about communicating risk?
Probably the most important skill of a risk professional is to be able to clearly communicate risks and their potential consequences. Without such a skill, almost everything else is worthless. I have worked hard on ensuring that all of our communication is clear, but have learnt to recognise the risk that it will need further explanation or clarification. Asking for feedback from colleagues makes the overall quality of communication better.
What are your other interests?
My wife and I enjoy travel and the theatre. The last couple of years of Solvency II restricted our travel opportunities but this year we are visiting Cuba before the American tourist invasion starts. In the summer, when not travelling, we can often be found in Chichester enjoying some world class theatre.
