Posts Tagged ‘compliance’



July 17th, 2018

How to Turn Compliance Into a Competitive Advantage

Posted at 1:00 AM ET

subas-roy-headshot-cropped2michael-heaney-cropped2hanjo-seibert-profile2Subas Roy, Partner; Michael Heaney, Principal; and Hanjo Seibert, Principal,  Oliver Wyman

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Regulatory technology, or regtech, has emerged as a cost-effective solution to help banks deal with the numerous and burdensome tasks required for compliance with regulations. Regtech also helps banks improve their bottom line by enabling them to more effectively manage risks and execute strategies that bring profitable growth.

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February 15th, 2016

Regulation; A World View: Conclusion

Posted at 1:00 AM ET

The costs associated with compliance and disclosure will continue to rise as insurance regulators and rating agencies increase their scrutiny of the industry. (Re)insurers that operate on a global scale, for example, may wrestle with the complexity of multiple capital requirements and the return targets of investors. Smaller companies, often with fewer resources, may be forced to allocate a higher percentage of senior management’s time to compliance. It will become increasingly more important for (re)insurers to avoid unnecessary and redundant activity when seeking regulatory approval.

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October 8th, 2015

Regulatory Challenges and Opportunities for (Re)insurers, Part III: Europe

Posted at 1:00 AM ET

European insurers are facing a more complex regulatory environment from national, regional and superregional authorities. The approaching date for implementation of Solvency II, January 1, 2016, is taking center stage. Member states are expected to transpose the directive requirements into local requirements with equivalence decisions this year.

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October 7th, 2015

Regulatory Challenges and Opportunities for (Re)insurers, Part II: United States

Posted at 1:00 AM ET

The National Association of Insurance Commissioners (NAIC) has been continuously engaged in the formulation of the regulatory standards that the International Association of Insurance Supervisors is developing, but has expressed several concerns due to the different legal, regulatory and accounting systems that exist. The NAIC does not want the Insurance Capital Standard (ICS), which is to be a consolidated group-wide standard, to undermine the legal entity capital requirements in the United States. As a result, the NAIC is trying to ensure that any ICS be supplemental to jurisdictional capital requirements and include a common methodology by which it achieves comparable (substantially similar) outcomes across jurisdictions. The NAIC is working through the ComFrame Development and Analysis (G) Working Group (CDAWG), which was formed early last year, to provide on-going input with respect to all developments in this regard.

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October 6th, 2015

Regulatory Challenges and Opportunities for (Re)insurers, Part I: International

Posted at 1:00 AM ET

(Re)insurers are being challenged as the regulatory environment becomes more complex, with regulation increasing considerably at multiple levels in numerous jurisdictions throughout the world. Insurers are facing new costs and pressures in their efforts to manage the regulatory landscape.

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September 15th, 2015

Global Regulatory Change for the (Re)insurance Industry

Posted at 10:30 PM ET

wrynn-95mark-shumway-95graham-jones-95andrew-cox-95markus-mueller-95-2015James Wrynn, Mark Shumway, Managing Directors and Graham Jones, Andrew Cox and Markus Mueller, Senior Vice Presidents 

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In the wake of the global financial crisis in 2008, significant regulatory change aimed at preventing/mitigating future crises was implemented. While the U.S. insurance regulatory framework did remarkably well in the protection of insurance consumers and companies in the United States during the financial crisis, it was, and will be affected by these reforms. Today, the results are having a profound impact on companies’ balance sheets and risk management practices. Although primarily aimed at larger, global insurers, the changes are so extensive that they may impact medium and small insurers to some extent. The question that most (re)insurers are asking today is how can they cope with the myriad regulatory, legislative and ratings changes and continue to maximize opportunities and maintain profitable growth. 

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October 3rd, 2013

Acing ORSA and Bringing it Home: Webinar Scheduled: October 10, 2013

Posted at 3:00 AM ET

The National Association of Insurance Commissioners’ (NAIC’s) Own Risk and Solvency Assessment (ORSA) goes into effect on January 1, 2015. Currently, many (re)insurers are in the process of developing and implementing their ORSA plans and approaches to the new regulation. They may be challenged over how much work has yet to be done and how best to do it. However, while some of the challenges are understandable, through “Business Management Integration” (BMI) there is an easier and more reliable way to approach this new regulation.

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November 1st, 2011

Solvency II Pillar Two: Corporate Governance

Posted at 1:00 AM ET

To support Solvency II compliance, (re)insurers need to implement rigorous corporate governance programs that address all areas of the company, from the tone and activities of company leadership through granular risk and capital management activities. Consistent with the principles of ERM, the corporate governance framework should define a clear and robust organizational structure - including an adequate operational structure, the clear allocation of tasks and responsibilities, organizational transparency and efficient information systems across all business activities. The structure should delineate a clear separation between the risk management function and the audit function. There should be a clearly apparent independence of the two functions from each other. Management’s responsibilities must be evident.

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October 6th, 2011

Solvency II’s Impact on the Reinsurance Market: Drawbacks and Risks

Posted at 1:00 AM ET

Capital Requirements and the Costs of Compliance are Discriminately Higher for Smaller Reinsurers and Will Force Some Consolidation

Large, diversified and highly-rated reinsurance groups with approved internal capital models will likely have materially lower capital requirements under Solvency II than they already maintain for their ratings. For these reinsurers, rating agencies will remain the final arbiters of capital requirements, while Solvency II will add administrative and regulatory cost and, perversely, encourage a lower standard of solvency. So far, rating agencies have resisted the demand to materially reduce capital requirements, with S&P granting only a limited weight to internal economic capital models in their assessment of risk adjusted capitalization (1).

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