As autumn begins, companies are planning for the December 2016 statutory valuation season. This will be the first full annual reporting cycle under Solvency II, and one of the challenges it will bring is compliance with the CBI’s new Peer Review requirements.
While some industry sectors have previously been subject to regulatory-driven Peer Review, and other companies had adopted Peer Review as part of their own governance processes, the new Central Bank of Ireland’s (CBI) requirements will represent the first mandatory Peer Review under the Solvency II regime and an early opportunity for actuaries, risk managers and Boards to obtain validation of key areas of judgement in data, assumptions and methodology.
As specialist actuarial consultants, Willis Towers Watson are best-placed to provide an independent Peer Reviewing Actuary free from conflicts of interest:
- Assurance to the Board and other stakeholders
- Benchmarking against best market practice
- Additional insights into the business beyond simple “box-ticking”
- Identification of scope for enhanced financial reporting processes
- Identification of opportunities for improved capital management efficiency
- Improved risk management processes
Overview of the Peer Review process
Key success factors
- Early engagement to resolve key elements of interpretation and expert judgement before finalization of year-end methodology and assumptions
- Clarity of information requirements and early document sharing
- Focussing on the most material aspects of the business
- Efficient engagement to align approach with audit and minimise BAU disruption
- Ongoing regular sharing of progress reports and findings throughout the Peer Review process
- Flexibility and pragmatism when considering methodology, assumptions and models
Why Willis Towers Watson?
- We bring the widest experience as Solvency II advisors to a variety of Irish and European companies.
- Willis Towers Watson consultants hold over 100 statutory actuarial appointments, providing valuable insight on best practices, which we can share with our clients.
- We are the industry’s leading risk management specialist and the world’s largest provider of actuarial software.
- We bring our insurance clients a superior understanding of how risk affects capital and financial performance, and advise on the best ways to manage risk outcomes.