Introduction: Starting the Solvency II Journey
Solvency II: The journey so far
Internal Models and Solvency II
Review of the Capital Adequacy Framework in Singapore
Insurance Liabilities Under IFRS 4 Phase II and Solvency II: Almost the Same Thing?
Solvency II and Mutual Insurance Companies
The Journey Towards an Approved Internal Model
The Road to Solvency II for a Life Insurance Company
Managing Model Risk
Solvency II and Reinsurance
ORSA: A Forward-looking Approach to Risk and Capital Management
Risk Governance: A Framework to Support Better Decision-making and a Journey Towards Continuous Improvement
Operational Risk and Solvency II: A Practitioner Perspective
Reporting Challenges under Solvency II: The Allianz Experience
The Audit of Solvency II Information
The Holistic Balance Sheet: A Different European Approach for Pension Funds?
Capital for Operational Risk: Some Fundamental Flaws
Reputational Risk: Success is Trust-dependent
Solvency II is the general framework for modern risk management practices in insurance firms. In itself, the process of developing this framework has led to enormous progress in the way that companies identify risks, measure them consistently and manage them by taking well-informed risk-mitigation decisions. By introducing Solvency II, the European Commission has achieved a great consistency in the risk spectrum that companies use. The Solvency II risk spectrum, however, does not cover all risks. Strategic, general business risks and reputational risks are not covered. Although a consolidated definition is lacking, strategic risks have been more or less managed implicitly by companies. Naturally, companies manage their strategic plans through a multi-year business planning process, where business objectives are challenged upon their inherent risks.
Reputational risk management is still in its infancy. In the aftermath of the financial crisis, however, the regulatory analysis conducted by the European Insurance and Occupational Pensions Authority (EIOPA) has identified reputational risk as potentially the “most relevant ‘other risks’ an undertaking may be exposed to.”11CEIOPS (2009