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Position paper – Influenza pandemics Position paper

but their views vary widely regarding how it will unfold and what excess mortality fi gures will result. Although analyses of past pandemics provide an insight into possible future scenarios, a simple extrapolation of statistics can be highly misleading. However, the 1918 Spanish fl u is often used as a basis for projecting the possible impact of a severe pandemic.

CRO Forum comments on Consultation Paper no. 18

Supervisory Powers - further advice' We welcome the opportunity to comment on this draft advice. The CRO Forum believes it is key to have appropriate harmonisation of supervisory powers, next to an adequate solvency system.

Terrorism – A unique challenge for the insurance industry

As recent terrorist activities in major cities - notably, the 11 September 2001 attacks in the United States - have made strikingly clear, terrorism has developed into a threat that affects every aspect of society and knows no national boundaries. Although there is no internationally binding defi nition of terrorism, some aspects can be agreed on: it seeks to cause human suffering, to instil widespread fear, and to disrupt life and business. The insurance industry has responded to this evolving hazard, and is doing all in its power to manage the terrorism risk.

A benchmark study of the CRO forum on the QIS III calibration

The CRO Forum companies have developed internal capital models, which they expect to be approved by the regulators as a basis for setting the level of target capital ('SCR'). The CRO Forum companies have also participated in QIS3.

CRO Forum feedback on Solvency II draft Directive

We have been an active participant in the Solvency II discussions that have taken place before the publication of the Solvency II directive promoting a risk-based and economic approach. We have therefore published a number of own initiatives papers on issues covering the cost of capital approach to market value margin (MVM), diversification benefits, internal models and financial risk mitigation and has responded to CEIOPS consultation papers.

CRO Forum comments on Consultation Paper no. 20

CRO Forum comments on Consultation Paper no. 20 "Pillar I issues - further advice" We welcome the opportunity to comment on this draft advice. The CRO Forum believes that the issues covered by this Consultations paper are key for the future solvency regulation. In this regard, the CRO Forum welcomes this Consultation paper, which develops further some of the points already discussed in the previous calls for advice. Since then, we believe that the QIS II exercise provided with a lot of useful information and feedback from the industry, and also that the political guidelines from the European Commission have been specified on a number of issues.

CRO Forum comments on Consultation Paper no. 17

CRO Forum's response to CEIOPS Consultation Paper no. 17: draft advice to the European Commission in the framework of the Solvency II project on Pillar 2 capital add-ons for solo and group undertakings We welcome this Consultation Paper from CEIOPS. The CRO Forum supports the inclusion of powers for a capital add-on in the Solvency II framework directive. However, we must emphasise that capital add-ons should be seen as a last resort as expressed, for example, in article 136(2) of the EU's Capital Requirements Directive.

CRO Forum comments on Consultation Paper no. 19

CRO Forum comments on Draft advice on Consultation Paper no. 19 "Safety measures (Limits on Assets)" The CRO Forum appreciates CEIOPS' further development of principles for the formulation and application of the supervisory tool 'Pillar II capital add-on', and welcomes the opportunity to comment on this draft advice.

Feedback on CEIOPS Consultation Paper 14

This presentation is based upon the consolidated responses of the Chief Risk Officer Forum and Comité Européen des Assurancesto CEIOPS-CP-03/06, "Draft Advice to the European Commission in the framework of the Solvency II project on subgroup supervisions, diversification effects, cooperation with third countries and issues related to the MCR and SCR in a group context."

Feedback on CEIOPS Consultation Paper 13

The Chief Risk Officer Forum ('CRO Forum') comprises risk officers of the major European insurance companies and financial conglomerates, and was formed to address the key relevant risk issues. It is a technical group focused on developing and promoting industry best practices in risk management.

CRO briefing Emerging Risk Initiative

The Chief Risk Officer (CRO) Forum's Emerging Risk Initiative is committed to continuously improving risk management. This paper advocates as best practice a process whereby insurers and reinsurers re-examine their assumptions about frequency, severity, loss trends and how the risks in their portfolios are interconnected and generally stress test their internal processes for hitherto "unthinkable" dimensions of risks. The paper seeks to address rating agencies, analysts, governments, regulators, intermediaries and risk modelling firms alike. This study is non-binding and for reference purposes only.

CRO Forum Feedback to Fitch on June 2006 Exposure Drafts

The CRO Forum highly appreciates Fitch's bold and innovative step in the evolution of the assessment of an insurer's capital adequacy. We strongly support Fitch's directional move in explicitly reflecting sound economic principles. The CRO Forum is also very pleased that Fitch strongly supports company internal models for measuring capital adequacy (subject to admissibility requirements) including explicit reflection of diversification and risk mitigation.

Financial risk mitigation in insurance

The Chief Risk Officer Forum is delighted to be presenting the study "Financial Risk Mitigation in Insurance - Time for Change". The Chief Risk Officer Forum comprises risk officers of the major European insurance companies and financial conglomerates, and was formed to address the key relevant risk issues for its industry. It is a technical group focused on developing and promoting industry best practices in risk management.

A market cost of capital approach to market value margins

As stated earlier, under the development of Solvency II, there is agreement amongst most parties involved that the assets and liabilities should be measured on a consistent basis for solvency purposes and this basis should be market value. In order to determine the market consistent value of liabilities, it is agreed, we need to determine a market value margin (MVM) to be added to the expected present value of future liability cash flows.

Feedback on CEIOPS Consultation Paper 9

This presentation is based upon the consolidated responses of the Chief Risk Officer Forum to CEIOPS-CP-06/05, “Consultation Paper No. 9 - Draft Answers to the European Commission on the third wave of Calls for Advice in the framework of the Solvency II project.”

Response to CEIOPS Second Wave Calls for Advice

This presentation is based upon the consolidated responses of the Chief Risk Officer Forum to CEIOPS-CP-04/05, “Draft Answers to the European Commission on the ‘second wave’ of Calls for Advice in the framework of the Solvency II project.” Support was provided by Mercer Oliver Wyman in the presentation of the results and conclusions.

A framework for Incorporating diversification in the solvency assessment of insurers

The discussions at the European level around the new prudential regime for insurers defined under the banner of Solvency II have gathered pace in recent months. The European Commission sent out the first request for advice in July 2004, to which CEIOPS4 provided a progress update and plan of subsequent work in October 2004.

Benchmarking Study of Internal Models

This study shall provide a benchmark and guidelines towards Solvency II for the insurance regulators to assess internal models. The results of the study are a contribution of the CRO Forum to the Solvency II project. It should foster the discussion about the application of internal risk capital models for legal solvency – both Pillar 1 and 2 – purposes.