Description: This session will explore the latest developments in the Bermudian market with a focus on investment risk managmenet, covering the landscape of Bermudian investment portfolios, investment risk management framework and the introduction of Recovery Plan Rules. This session will place a specific focus on changes to the BMA's investment management framework including enhancements to the asset approval processes as well as the application of the Prudent Person Principle. Coming out of this session, attendees will gain valuable insights into how these recent regulatory changes enhance the investment risk management framework in Bermuda and offer practical guidance on navigating this evolving environment.

Description: As the adoption of offshore reinsurance strategies continues to grow among insurers seeking to optimize their capital and balance sheets, a critical focus for both prospective and current adopters is the establishment or enhancement of existing data, technology, and modeling processes to meet offshore reporting requirements. Drawing from practical experience, this presentation aims to provide attendees with key insights for successfully producing the necessary reporting items for offshore reinsurance entities, along with considerations for operational efficiency, model and data governance, and management decision-making.

Description: The implementation of the IFRS 17 insurance accounting standard has brought significant changes to the financial reporting landscape of insurance companies. With new disclosure requirements and altered profit analysis, understanding and interpreting future profitability have become a topic of concern for the industry. While stability remains a key objective for insurance companies, the earning patterns might become more volatile especially when the contractual service margin (CSM) is exhausted, and a loss component (LC) needs to be established. Reinsurance, a common risk mitigation tool, can play a pivotal role in managing earnings volatility and minimizing losses for onerous measurement units. In this article, we propose a new key performance indicator (KPI) called “loss recoverability” to assess the performance of reinsurance treaties in achieving these objectives. We explain how this KPI can be utilized in multiple scenarios to evaluate the effectiveness of reinsurance strategies and pursue stability in earning patterns.

Description: How does mortality experience impact earnings under the new GAAP financial framework? This article discusses how to isolate key components from financial models related to decrements, as well as how to handle the changes in the financial reporting landscape including: the aggregation of insurance policies into cohorts, dynamic reserving, and the limitations imposed by caps and floors. Looking at the components of earnings, such as the present value of benefits, expenses, and premiums, and how these elements interact is critical to form a comprehensive earnings story.