Having gone through several rounds of field testing, the global insurance capital standard (ICS) is rapidly coming into focus. Though the regulation initially targets larger companies with an international presence, insurers of all sizes are taking note both to identify industry practices and to anticipate what might potentially lead to broader requirements in the future. The presenters will provide practitioners and interested parties with information to understand the ICS and to help evaluate its implications. They will begin with a brief background to define key concepts (and several acronyms). Next, they will explore in detail some of the latest developments by the IAIS related to valuation approaches and risk assessment, drawing on more familiar comparisons to GAAP reporting, regulatory and economic capital approaches where appropriate. They will then summarize some of the key decisions that are still outstanding and possible views for what might come next.
At the conclusion of the session, attendees will be able to:
• Explain the current status of ICS guidelines and compare them to typical economic capital practices;
• Evaluate ICS components in the context of company objectives; and
• Identify quick wins and challenges related to ICS reporting, drawing upon existing financial reporting processes.
1.50 SOA CPD
Financial Reporting Section
Reinsurance Section