Tag Archives: Mike Claffey

What affect has the COVID-19 lockdown had on Irish auto traffic?

Traffic in Ireland has decreased by 70% since government restrictions aimed at curbing the spread of COVID-19 were first introduced. However, there are signals that vehicle volumes are higher now than they were a couple of weeks ago. Milliman’s Eoin O’Baoighill and Mike Claffey explore the impact of the lockdown in this briefing note.

Milliman launches Solvency II Compliance Assessment Tool

Solvency II has finally arrived. From January 1, 2016, the focus has changed from the “best efforts” approach acceptable in the preparatory phase to ensuring full compliance with all the detailed requirements of Solvency II. This new reality has placed much more onerous requirements on insurance companies across their business activities, ranging from reserve calculations to governance frameworks to reporting requirements.

This means companies are faced with a need to demonstrate compliance with the full detail and complexity of Solvency II. The Directive, Delegated Acts, and Level Three Guidelines alone cover 2,390 pages. To show compliance, you need to assimilate this vast amount of information and collect evidence from a wide range of experts and department heads in your company.

We have used our Solvency II expertise to develop an intuitive and flexible tool to help companies assess how compliant they are with the Solvency II requirements. This builds on our experience of developing our Milliman Solvency II Readiness Assessment Tool over the last few years. In developing this tool, we have partnered with ViClarity, a compliance software company, to ensure that users will get the benefit of Milliman’s knowledge and will also get the functionality and platform that would be expected of a market-leading compliance tool.

The Milliman Solvency II Compliance Assessment Tool distills the Solvency II requirements into easily digestible self-assessment questions. Assessing compliance across an entire organisation requires collaboration across all business operations and departments. The Milliman Solvency II Compliance Assessment Tool is based in an easy-to-use cloud-based platform, facilitating the gathering of all necessary information across the whole organization.

This enables both life and nonlife insurance and reinsurance companies to easily monitor and assess their levels of compliance across all three Pillars of Solvency II, while simultaneously creating an audit trail of work done and a development plan for future actions and ongoing review.

To learn more about the Milliman Solvency II Compliance Assessment Tool, click here.

Assessing the appropriateness of the Standard Formula

Under the Central Bank of Ireland’s Guidelines on Preparing for Solvency II, all insurance and reinsurance undertakings are required to prepare a Forward-Looking Assessment of Own Risks (FLAOR) in 2014 and 2015. Those companies rated as high or medium-high impact under the Central Bank’s Probability Risk and and Impact SysteM (PRISM) rating system, which are not in either the preapplication or application process for an internal model, are required from 2015 onward to perform an assessment of whether their risk profiles significantly deviate from the assumptions underlying the standard formula Solvency Capital Requirement (SCR). This requirement will apply to all companies from 2016 onward.

Milliman’s Andrew Kay and I conducted a survey analysis of 27 companies in Ireland to gain perspective on the appropriateness of the standard formula for the risk profile of these companies in their 2015 FLAORs. To read the entire analysis, click here.

Milliman Solvency II Readiness Assessment Tool first industry survey: Ireland, life assurance

Milliman developed the Solvency II Readiness Assessment Tool to help companies prepare and plan for Solvency II. The tool is designed for life and nonlife direct writing and reinsurance companies. It enables companies to rate themselves using a range of detailed questions covering the full scope of Solvency II. A score of 5 identifies areas that are 100% ready, whereas a score of 1 identifies areas where no progress has been made.

Thirteen life companies based in Ireland shared their current levels of preparedness. In this briefing, Milliman’s Andrew Kay and Mike Claffey have consolidated the results to give an overall idea of the issues facing companies.