In this interactive presentation, we will offer insights into the practical issues around IMAP by:
• sharing lessons learnt from our experience
• discussing common market approach and best practice
• examining common mistakes seen across the market
This session will be useful for firms:
• planning for or implementing IMAP, with practical guidance on how to do this
• facing new IMAP challenges in light of Brexit, with a case study on a UK IMAP firm and the implications of creating new UK and European entities.
• have received model approval, with discussions of best practice and how to embed effectively into BAU environment (e.g. in-house validation)
The breadth and quality of documents required for an IMAP has been one of the biggest challenges in transitioning from an ICAS regime. Many companies, even those with model approval, continue to explore ways of managing their documentation more efficiently on an ongoing basis. From our experiences across the market, the key is to develop a suite of documents (and underlying processes) which is not only regulatory compliant, but manageable in the long term and fits into the overall governance structure of the organisation.
This article offers a practical insight into the most important, yet often challenging, documents required for IMAP. Before discussing the individual types of documents, we emphasise the importance of documentation framework, which should be established at the start of your IMAP programme.
Firms that received internal model approval from their regulator by the first day of Solvency II implementation (1 January 2016) largely used external consultants to satisfy the independent validation requirement. More recently, companies have been looking to transition to an in-house validation.
This article considers key items on the regulator's checklist to ensure the independent validation process is both effective and regulatory compliant, regardless of whether firms pursue an internal or external approach.
Independent validation is a key area of focus for the regulator. Day One IMAP firms (i.e. firms that received model approval from their regulator by the first day of Solvency II implementation date of 1 Jan 2016) largely used external consultants to satisfy the independent validation requirement. More recently, companies have been looking to transition to an in-house validation.
In this article, Ashish Kwatra and Jennifer Kang offer key insight into the practical implementation of the independent validation process, and discuss key areas to ensure the process is both effective and regulatory compliant. This includes consideration of key items on the regulator's "checklist", as well as suggestions on how to make validation less resource intensive in a business as usual environment.
This article highlights key areas to consider when planning for an internal model approval process (IMAP).
Solvency II has meant a lot of extra work for those working within the insurance industry, not least those involved within the capital modelling arena. It has now been over 2 years since the first wave of Internal Model Approval Process (IMAP). With many companies still considering model approval and on-going restructuring in preparation for Brexit resulting in further major model change, it would be useful to know exactly where we have ended up so far – what have been the key practical issues to implement a successful IMAP and what does “good” look like.
This article sets out four key lessons learnt from our experience, discussing common market approach and best practice we have observed in the UK industry, with the objective of offering insight to the practical issues around the IMAP.
This article discusses main challenges in transitioning to a Solvency II internal model.