It is with regret that the members of the Capital Allocation Working Party have decided to disband the working party. Having reviewed the objectives of the working party, it was felt that capital allocation within the insurance industry has moved on since the inception of the working party and that the current group would not be able to produce anything substantially new over and above current practice.
In particular, it is felt that the methodology for allocating capital has been established in much of the proprietary software being used in the industry, while the business application of capital allocation is likely to be highly general with value adding proprietary knowledge carefully guarded by industry players.
- Define purpose of a capital allocation framework
- Outline the applications of capital allocation to support management of an insurance business
- Outline the methods that can be used to determine capital allocation, including limitations and potential applications.
- Outline implications of corporate structure and geography.
- Identify additional areas of research for subsequent phases of the working party (if relevant)
- Economic capital for insurance companies.
Out of Scope:
- Impact of specific regulatory requirements (e.g. Solvency II)
- Other financial institutions (e.g. banking). Other than high level reference to broader financial services institutions.
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This year's GIRO has been re-designed as a virtual conference to offer members and non-members the opportunity to get up to date content from leading experts in the general insurance field via online webinars. All sessions will be recorded and made available to purchase and re-watch post-event on the IFoA's GI Online Learning Resource area.
This webinar will provide an update on the emerging thinking around future regulation of DB schemes:
The webinar will discuss the challenges and opportunities schemes face in evaluating end game options, choosing a target state and understanding the impact this strategic decision could have on member outcomes long after the “end state” is reached. Adolfo, Kevin and Rhian bring over 60 years of experience in the industry and a variety of perspectives as scheme actuary, covenant adviser, trustee, de-risking adviser and insurer.
Retail banking is going through a period of substantial change as it moves into the digital age. Banks have large amounts of data about their customers and about their risks. Open data application programming interface (APIs) and data science are enabling banks to use their data to offer innovative and sometimes personalised services. Data science is also adding value in risk areas such as fraud detection and cyber security. At the same time, the move to online banking is making it easier for firms including fintechs to enter banking without having to establish branch networks.
Cash-flow driven investing is a game-changer for DB pension funds navigating their end-game. Suitable for sponsors who want to reduce risks on their balance sheets. And for trustees, it shifts the focus to providing greater certainty of returns, managing funding level volatility and ensuring they have enough income to pay cash-flow requirements.
Patrick Kennedy, Partner at Gateley Legal and Founding Director of Entrust (a leading professional pensions trustee company), will be delivering an update on the latest legal developments during the course of 2020. With both a pensions legal perspective and over 25 years of trustee service, Patrick will seek to highlight how the letter of the law has continued to evolve against the backdrop of a difficult and challenging year
The talk will provide an understanding of the priorities and relationships between deficit reduction contributions, in the context of wider scheme funding, and different types of value outflow from the employer based on the working party’s recently published report.
Covid-19 has required an urgent and cross-practice initiative to facilitate the extensive impact this pandemic has across all industries. IFoA members have been keen to contribute in a different way, so we developed the IFoA Covid-19 Action Taskforce [ICAT] to coordinate our effort, with a more efficient governance.
We have over 500 volunteers and countless topics which we have amalgamated into 93 workstreams.