NATIONAL INSURANCE ACADEMY
PUNE
P723
- SPECIAL PROGRAMME ON ENTERPRISE RISK MANAGEMENT(ERM) (LIFE)
(2024 - 25)
Background:
Every business
organization faces several risks ranging from the routine ones to the
existential. Insurance business is unique in the sense that as the underwriter
of risks, its risk profile is considerably different from other business
organizations.
Within the
insurance industry, there is a substantial difference in the risks faced by Life
Insurers and General Insurers. This is due to the nature of their business where
life insurers tend to take a relatively long-term view. The global financial
crisis of 20072008 changed the way the Insurance Industry is regulated.
The key issues
threatening the existing insurance model today are global warming and the
increase in catastrophic risks due to it. The ever-increasing reliance on
technology has its own elements of risks.
The pandemic
may continue to have a major impact on the way insurance industry perceives and
responds to risks. Thus, every insurer today is expected to have a robust ERM
Framework that takes care of the regulatory compliance as well as being adequate
for the rapidly emerging risks. The Technology Risk Management (TRM) framework
is expected to take care of technology related risks
The Indian
insurance market is also transiting towards more complex and challenging market
conditions due to the factors above. The Indian insurance regulator is in the
process of mandating global best practices to ensure a robust insurance
Industry.
A major change
would be moving to Risk Based Capital (RBC) from current static solvency norms.
As a part of ERM framework, business plan, Risk registers, Own Risk and Solvency
Assessment (ORSA), Stress test shall be a part of the business processes for all
Life Insurers.
IFRS-17
envisaged to be implemented in India soon will have its own impact on all
Insurers. Thus, it is very imperative for the Life Insurance Industry to start
preparing for a robust ERM/TRM framework for the continued success of the
business as well as for being fully compliant with the regulations.
Objectives:
At the end of
this course the participants are expected to have an overview of the ERM
framework and its significance and would be able to understand and appreciate:
§
Concept of ERM
and the global standards
§
Risk Based
Capital Solvency Its implications on ERM and Insurance Business
§
Define Risk
Appetite for the company and Integrate Business Strategy into ERM
§
Identification
of Key Risks and quantifying them in Life Insurance Business
§
Assessment of
Operational Risks including Cyber Risk and Reputation Risks
§
Risk Mitigation
Strategies and Risk Transfer methods
§
Operational
Issues in Implementation of ERM
Contents:
§
Introduction to
ERM and the current standards for its implementation
§
Evolving a
Business Strategy from the Mission, Vision, Strategic objectives
§
Business
Strategy and ERM Aligning Business strategy with ERM strategy
§
Assessment of
Insurance Business Risk
§
Identification
of risks and risk register
§
Risk Management
Policy
§
Risk tolerance
statement
§
Assessment of
Market Risk (Investment Risks) including Credit Risk & ALM
§
Capital
Management
§
ORSA
§
Continuity
Analysis and Stress Testing
§
TRM Framework
§
Management of
Operational Risks including Cyber Risks and Reputation Risks
§
Risk Governance
§
Risk Control
Measures and Risk Mitigation Tools
§
Risk
Responsiveness and Feedback Loop
§
Operational
Issues in ERM Implementation including Embedding risk culture
§
Risk Based
Solvency and its implications on Insurance Business
§
Business
Continuity Plan.
Participants Profile:
ERM Nodal
Officers from DO/ZO & to be nominated by ZO HRD/CO-HRD/CO ERM department
Duration: 3
days
Dates:
I.
25.09.2024 -
27.09.2024
II.
06.11.2024 -
08.11.2024
III.
04.12.2024 - 06.12.2024
IV.
03.02.2025 -
05.02.2025