EY Academy

Solvency II Refresh Training

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Are you ready for Solvency II?

Within less than one and a half year the full Solvency II regulation will come into effect. The European Parliament has adopted the ‘Omnibus’ II Directive which will complement the Solvency II Directive, creating a modern risk-based regulatory and supervisory framework for the insurance sector. This development causes insurance companies to place renewed focus on their Solvency II readiness. For other market participants, like asset managers, the step forward towards Solvency II implementation can also drive their need to refresh and update knowledge about Solvency II, since the regulatory framework will not only impact insurance companies. The high pace of publications and circulations by EIOPA is causing an increased strain on practitioners to keep up to date with the latest regulations.

Therefore we have developed this one day Solvency II Refresh training on October 6th 2014 in our EY office in Amsterdam.

The one day training program consist of four modules in which we give an overview of the Solvency II framework, the regulatory timelines and a regulatory update. Furthermore we cover the three pillars of the Solvency II framework and provide insight in the latest regulations. To name a few: the circulation of the Draft Delegated Acts in March 2014, the EIOPA stress test technical specifications in April 2014 and the Level 3 consultation papers in June 2014. After this educative session you will have gained more insight in the Solvency II framework and the latest standards that apply across the three different pillars of Solvency II. Furthermore you will understand how the different sets of regulation fit together. Therefore whether you are an experienced Solvency II practitioner who wants to get an updated overview of Solvency II, or you are relatively new to the Solvency II framework, the training day will give you a great refresh.

Program

Module 1
09.00 – 10.00 (Solvency II Overview, timelines and regulatory update)

During the first module, we will give an overview of the Solvency II framework, discussing the expected timelines for Solvency II and the guidance that is still expected to follow. Furthermore we will give an overview of the regulatory developments, covering the formalization of Omnibus II, the circulation of the Draft Delegated Acts, the publication of the EIOPA stress test technical specifications and the Implementing Technical Standards and Level 3 consultation papers.

Module 2

10.00 – 12.00 (Pillar 1)
In the second module, the main building blocks of pillar 1 are discussed. Hereby we will discuss the following topics and the main developments in relation to these topics:

  1. Market value balance sheet – which elements have the largest impacted and what are the key changes from moving from Solvency I to Solvency II;
  2. Technical provisions – set out the basics with respect to the Best Estimate provision and the Risk margin, as well as background on the Long Term Guarantee package, which impacts the yield curve that is prescribed to discount the insurance liabilities; How to manage this going forward?
  3. Solvency Capital Requirement – the different risk modules that are driving the capital requirement for Standard Formula purposes, as well as the latest changes in regulation;
  4. Minimum Capital Requirement – the setup of the minimum capital requirement and the changes following the latest regulatory update.

Given the wide range of topics that are relevant for pillar 1, pre-reading will be provided to ensure a basic understanding of the different concepts, which will enable a more effective learning experience during the day.

Lunch and networking
12.00 – 13.00

Module 3
13.00 – 15.00 (Pillar 2)
During the third module the different aspects of Pillar 2 will be discussed and the current developments regarding the practical impact related to Governance and ORSA. The following topics will be covered:

  • The seven Governance aspects, which are Outsourcing, Internal Control Framework, Fit & Proper, and the 4 key functions (actuarial, risk management, compliance and internal audit)
  • ORSA - insight in the current developments within Europe and the challenges related to the Own Risk and Solvency Assessment
  • Hot topics – we have identified some hot topics related to risk governance: Risk Culture, Risk Management Effectiveness and Risk Reporting

The Supervisory process is also part of Pillar 2 and will be briefly explained in this module.

Module 4
15.00 – 17.00 (Pillar 3)
In this last module solvency II reporting is discussed where we will focus on the scope of reporting (e.g. solo or group reporting) and further discuss issues in preparing the following reports:

  1. Regular supervisory reporting (RSR) and SFCR and the challenges on the level of granularity, additional information for groups, overlap with ORSA.
  2. Quantitative reporting templates and challenges with respect to:
  • consolidation of entities within the group and consolidation of QRT’s 
  • an overview of the different own fund items, tiering of own funds, eligibility of own funds and the most recent changes
  • determination of the loss absorbing capacity of deferred tax
  • data availability (e.g. details of assets and reinsurance, outsourcing)

Further we will address the issue of data integrity and implementation of controls around the reporting. Finally we will focus on the data submission to the regulator in XBRL.

Target group
Each module is designed for all individuals active in the insurance industry. Auditors, controllers, risk managers, actuaries as well as middle or senior management. Even when one topic is not your core focus, having learned the key take aways significantly improve the needed cooperation between the various professions.

The training is also very interesting for those employed at banks, pension funds or asset/investment managers given the similarities with Basel II for banks, the potential developments of risk based regulation for pension funds across Europe as well as the impact and opportunities of Solvency II on asset managers and other asset service providers.

All participants will receive pre-course materials to prepare for the training modules. This is to ensure that all participants have similar starting positions for the modules, and the basic guidelines of Solvency II do not need to be reiterated.

The training modules will show some small overlap with the materials covered in the Solvency II training program we have been organizing since 2005 (Solvency II Complete training), since certain Solvency II concepts have not changed and will be discussed briefly during the training. For this educative experience we will focus on the latest regulatory view, and the latest insights from the market with respect to these topics.

Inhouse training
Upon request, we organize the modules set out above, as well as the Solvency II Complete training and the Solvency II Advanced training that we have organized in previous years in house. This way we can further tailor the training program to your needs. Please contact us directly for more details.

The general EY training conditions are applicable on these training modules.

Note that the content of the training modules set out on this website gives an indication of the topics covered. EY has the liberty to make minor changes to the actual content covered, for example to take account of the latest changes in insurance regulations.