Programme overview
Introduction:
Insurance regulatory capital and solvency management, covering risk-based capital, ORSA and reporting, is the subject of this 5-day course for finance, risk and compliance managers at insurers, ending with a Solvency and Capital Management Plan. Many insurers learn of a capital shortfall only when a supervisory return is due, because capital models, stress tests and management actions are owned by separate teams. Nominees already prepare or review solvency figures, and teaching is by modelling build on a case insurer. CoreConcept Training Center delivers this insurance regulatory capital and solvency management course.
Course Objectives:
- Distinguish the quantitative, governance and disclosure layers of a risk-based solvency regime and map each to the insurer's own functions
- Calculate available own funds against a risk-based capital requirement and classify capital by its loss-absorbing quality
- Aggregate underwriting, market, credit and operational risk charges and test the diversification assumptions behind the result
- Design stress and scenario tests with reverse stress testing and link the results to risk appetite limits and management actions
- Prepare an ORSA report with a qualitative section on risk profile and governance and a quantitative section on projected solvency
- Assemble supervisory returns with reconciliations and controls, and set a forward capital plan with dividend, reinsurance and capital-raising options
Target Audience:
- Finance managers responsible for solvency calculations, capital planning and supervisory returns at insurers
- Risk management leads accountable for the risk profile, risk appetite statement and stress testing programme
- Compliance managers who monitor capital rules, supervisory correspondence and filing deadlines
- Actuarial function managers who supply technical provisions and capital model inputs
- Internal audit managers who review capital models, ORSA processes and regulatory reporting controls
- Treasury and investment managers who set asset allocation within capital limits
Course Outline:
Day 1: Solvency Regimes, Capital Concepts and Current-State Assessment
- Solvency II Three-Pillar Structure Compared with Other Risk-Based Regimes
- IAIS Insurance Core Principles on Capital Adequacy and Solvency Control Levels
- Own Funds, Tiering and Capital Eligibility Classification Table
- Solvency Capital Requirement and Minimum Capital Requirement Floors Explained
- Current-State Capital Position Diagnostic with Solvency Ratio Bridge
Day 2: Risk-Based Capital Models and Aggregation Architecture
- Standard Formula Risk Modules and Correlation Matrix Aggregation Build
- Underwriting Risk Charges for Premium, Reserve and Catastrophe Exposures
- Market and Counterparty Default Risk Charges for Investment Portfolios
- Operational Risk Capital Assessment with Loss Event and Scenario Data
- Internal Model Governance, Validation Cycle and Use Test Documentation
Day 3: ORSA Process, Risk Appetite and Stress Testing
- Risk Profile Register and Risk Appetite Statement with Tolerance Limits
- ORSA Four-Step Process Mapped to Board and Committee Calendars
- Sensitivity and Scenario Design for Interest Rate, Claims and Asset Shocks
- Reverse Stress Testing to Locate the Point of Capital Failure
- Forward-Looking Solvency Projection over the Business Planning Horizon
Day 4: Supervisory Reporting, Group Capital and Capital Management Actions
- Quantitative Reporting Templates Population and Reconciliation Control Checklist
- Narrative Supervisory Report Structure and Public Disclosure Content Map
- ComFrame Group Supervision and Insurance Capital Standard Overview for Groups
- Capital Management Levers Matrix Covering Reinsurance, Dividends and Subordinated Debt
- Breach Escalation Protocol and Recovery Plan Triggers for Falling Solvency Ratios
Day 5: Modelling Build for a Solvency and Capital Management Plan
- Case Composite Insurer Own Funds and Capital Requirement Workbook Build
- Case Insurer Stress Scenario Run with Management Action Responses
- ORSA Report Outline Drafted from the Case Projection Results
- Supervisory Return Reconciliation Test and Board Reporting Pack Draft
- Solvency and Capital Management Plan Completion and Challenge Session
Skills You Will Gain:
- Own Funds Classification
- Risk-Based Capital Aggregation
- Solvency Ratio Analysis
- Stress and Scenario Design
- ORSA Report Drafting
- Supervisory Return Reconciliation
- Capital Action Planning
- Capital Model Challenge
Why Attend This Course:
- Deliver a Solvency and Capital Management Plan to the chief financial officer, chief risk officer and board risk committee
- Decide whether a falling solvency ratio calls for reinsurance, retained earnings, new capital or a change in business mix
- Avoid late-discovered capital shortfalls, rejected supervisory returns and ORSA reports that the board cannot use
- Coach colleagues in finance, actuarial and compliance teams to read the same capital figures in the same way
Conclusion:
Back at work, the participant presents the Solvency and Capital Management Plan to the chief financial officer, chief risk officer and board risk committee, who use it to set risk appetite limits, approve capital actions and sign off the next ORSA report. Finance and compliance teams use its reconciliation checklist and escalation triggers to prepare supervisory returns with fewer late corrections. After the first reporting cycle, the unit should review projected against actual solvency ratios, test whether the stress scenarios still fit the business and refresh the plan.
Frequently Asked Questions (FAQ):
What should participants know before an insurance regulatory capital and solvency management course?
Participants should already prepare or review solvency, reserving or risk figures at an insurer and read financial statements comfortably. Bringing a recent capital return, risk appetite statement or stress test summary from their own organisation makes the modelling work more useful.
How does an insurance regulatory capital and solvency management course differ from an IFRS 17 or actuarial course?
It concentrates on regulatory capital: own funds, risk charges, ORSA, stress testing and supervisory returns. Accounting-standard courses centre on contract measurement and disclosure, while actuarial courses centre on pricing and reserving mathematics.
Why does insurance solvency management rely on stress testing and ORSA?
A solvency ratio shows only today's position. Stress testing and ORSA project capital under adverse scenarios, so the board can set risk appetite limits and act before the capital position falls below supervisory thresholds.
What do participants take back from the insurance regulatory capital and solvency management course?
Participants take back a Solvency and Capital Management Plan, plus an own funds workbook, a risk aggregation template, a stress scenario library, an ORSA report outline and a supervisory return reconciliation checklist adaptable to their own insurer.