admin_bruce, Author at The CRO Forum

Internal Model Admissibility
Internal Model Admissibility

Internal Model Admissibility

Internal models should reflect the nature, scale and complexity of the underlying businesses; they should be proportional in sophistication to the materiality of the risks they cover. Materiality levels should be determined by stakeholders based on the model's purpose. Practical considerations for models include usability, reliability, timeliness, process effectiveness, systems and cost efficiency. There should be an acceptable tradeoff between accuracy and the various practical constraints.

admin_bruce2026-02-11T14:03:27+00:00May 1st, 2009|

Operational Risk Management
Operational Risk Management

Operational Risk Management

Further, European supervisors considered the causes of failures (and near-failures) of a number of insurers and their analysis showed that the causes were mostly associated with inappropriate risk decisions resulting from underlying internal failures rather than inadequate capitalisation per se.

admin_bruce2026-02-11T14:04:10+00:00May 1st, 2009|

Calibration Principles
Calibration Principles

Calibration Principles

The Solvency II standard formula to calculate a company's Solvency Capital Requirement should present a balancing act between various targets such as simplicity, risk sensitivity and robustness. The CRO Forum believes the main principles of the current standard formula, namely to asses the sensitivity with respect to all material risk factors and to aggregate capital requirements allowing for diversification, are appropriate for this purpose and moreover set incentives towards risk mitigation strategies.

admin_bruce2026-02-11T14:04:50+00:00May 1st, 2009|

Internal models benchmark study
Internal models benchmark study

Internal models benchmark study

This presentation is based on research (Internal Models Benchmarking Study 2008) carried out on behalf of the Chief Risk Officer Forum by Oliver Wyman.

admin_bruce2026-02-11T14:05:30+00:00January 30th, 2009|

Addressing the pro-cyclical nature of Solvency II
Addressing the pro-cyclical nature of Solvency II

Addressing the pro-cyclical nature of Solvency II

Risk capital charges in the Solvency II context reflect the 99.5% quantile on a 1-year horizon. The consistent application of risk capital charges in Solvency II to all sources of risk is imperative. Inconsistent application of risk charges creates perverse incentives for certain asset classes or insurance products.

admin_bruce2026-02-11T14:06:09+00:00November 25th, 2008|

Public risk discl. under Solvency II
Public risk discl. under Solvency II

Public risk discl. under Solvency II

as a basis for discussion on the implementing measures for articles 50-55 of the EU Solvency II Draft Directive. The CRO Forum advocates a principles-based approach: Section B of this paper establishes five main principles for public risk disclosure which should be adhered to by all undertakings.

admin_bruce2026-02-11T14:06:46+00:00November 17th, 2008|

CRO Forum QIS4 Benchmark Study
CRO Forum QIS4 Benchmark Study

CRO Forum QIS4 Benchmark Study

The CRO Forum companies have developed internal capital models, which they expect to be approved by the regulators as a basis for setting the level of target capital ('SCR'). The CRO Forum companies have also participated in QIS4.

admin_bruce2026-02-11T14:08:16+00:00October 31st, 2008|

Liquidity Risk Management
Liquidity Risk Management

Liquidity Risk Management

This paper is part of a series of work by the CRO Forum under their Best Risk Management Practices initiative.The paper outlines important principles and considerations that should be part of best risk management practice for the management of liquidity risk within an insurance company. The primary focus of this paper is the management of liquidity risk where the company bears the risk, as opposed to the policyholder.

admin_bruce2026-02-11T14:08:56+00:00October 29th, 2008|

CRO Forum response on the credit crisis
CRO Forum response on the credit crisis

CRO Forum response on the credit crisis

Financial Crisis strongly reinforces the case for Solvency II. EU should not water down the Solvency II directive or postpone the legislative process New CRO Forum publication comments on the consequences of the financial crisis forEnterprise Risk Management and regulation in the insurance industry

admin_bruce2026-02-11T14:09:42+00:00October 23rd, 2008|

Market Value of Liabilities for Insurance Firms
Market Value of Liabilities for Insurance Firms

Market Value of Liabilities for Insurance Firms

Over the past 3-4 years a tremendous amount of positive energy and resource has been expended in the name of improving the efficiency and effectiveness of the oversight of insurance entities, globally, by regulatory and supervisory bodies, industry associations and commentators alike. The CRO Forum is pleased at the pace and direction of the changes under consideration. However it has also become clear that in the course of the wider dialogue, confusion has sometimes arisen about the intended meaning about certain principles and elements of suggested implementation frameworks. Moreover, parallel discussions in the field of financial accounting have meant some terminology has dual meanings.

admin_bruce2026-02-11T14:10:33+00:00July 28th, 2008|

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