General Insurance Article - Robust Solvency II processes for Profit and Loss attribution

The Institute of Risk Management’s (IRM) Internal Model Industry Forum (IMIF) today publishes its 7th guidance document for the insurance market. Profit and loss attribution – the way ahead was developed to help insurers carry out the regular reviews required under the Solvency II regulations to ensure that their models accurately reflect the real world causes and sources of profit and loss across lines of business.

 The document proposes a six step process to ensure a thorough and consistent approach to the review exercise. The guidance was produced by a workstream of industry practitioners led by Barney Wanstall of Chubb Europe (previously at PwC) and Russell Ward from Milliman.
 IMIF Chairman Phil Whittingham FIRM, Head of Model Validation and Risk Governance at XL Catlin, explained, Our research has determined that there has been significant progress across the market already in establishing how these reviews should be conducted and our guidance draws together existing best practice on the subject. As well as improving model accuracy, understanding exactly where profit and loss occurs across lines of business has the potential to become a valuable risk management tool and will also underpin confidence in the strategic plan and in the interaction between the model and the business. Engagement at board level with this process is crucial if boards are to truly understand the risk profile of their organisation. 
 The guidance document is available from the IRM’s website  
 IMIF publications are generously sponsored by EY, LCP, Milliman and PWC.

Back to Index

Similar News to this Story

Survey shows Lloyds Managing Agents facing tough challenges
Mazars has published its annual Lloyd’s Coverholder Management Survey. It found that 55% of Lloyd’s Managing Agents are struggling with resources in t
Impact of Artificial Intelligence on the reinsurance sector
For the past few years, Artificial Intelligence (AI) has been rolled out with spectacular speed in an increasing number of areas, such as medicine, th
Technology transforming the travel insurance industry
The move by the Co-op to marry technology with unlimited medical expenses - with its first foray into the travel insurance market - has been hailed as

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS


Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.