Robin Spencer, Chief Risk Officer of Aviva PLC and Vice-Chairman of the CRO Forum during 2011, was elected as the CRO Forum Chairman for 2012. Swiss Re’s Chief Risk Officer, David Cole, was elected Vice-Chairman of the CRO Forum for 2012.
A study by the Chief Risk Officer’s (CRO) Forum has found that the risk of large scale power disruptions is set to increase due to the growing interconnectedness of electricity grids, changing mix of power sources and aging infrastructure
The CRO Forum believes that the liquidity premium is a fundamental part of the economic valuation of insurance contracts. We support the underlying principles agreed by the Task Force, and the formulaic approach for deriving the liquidity premium adopted in QIS5.
In this paper we discuss the idea behind currency risk. If the guidance for the required capital calculation for FX risk is based on a shock applied to the Net Asset Value of the entities in their respective reporting currencies, then this can create hedge incentives that endanger the solvency of the group and hence policyholder benefits.
In this press release, Representatives of the European insurance industry have urged the European Commissioner for the Internal Market and Services, Michel Barnier, to ensure that the overly conservative and prescriptive elements still contained in the draft implementing measures for the forthcoming EU regulatory regime, Solvency II, are urgently addressed.
Economic Capital Models (“ECMs”) are a hot topic of discussion within the insurance industry: what is the target level of confidence?
At the heart of the issue is the complexity of the way deferred tax items are recognized, coupled with all the complexities of a market consistent valuation regime. This combined complexity and uncertainty manifests itself in a conservative assessment of the value of tax and the role it plays in a valuation system.
