NATIONAL INSURANCE ACADEMY

PUNE

 

 P723- SPECIAL PROGRAMME ON ENTERPRISE RISK MANAGEMENT(ERM) (LIFE)

(2023-24)

 

Background:

Every business organization face a number of 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 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 relatively a long-term view. The global financial crisis of 2007–2008 changed the way Insurance Industry is regulated.

The key issues threatening the existing insurance model today is 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 be 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 in order 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 in the near future 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:

Ø  Concept of ERM and the global standards

Ø  Risk Based Capital Solvency – It’s implications on ERM and Insurance Business

Ø  Define Risk Appetite for the company and Integrate Business Strategy into ERM

Ø  Identification of Key Risks and quantifying them in Life Insurance Business

Ø  Assessment of Operational Risks including Cyber Risk and Reputation Risks

Ø  Risk Mitigation Strategies and Risk Transfer methods

Ø  Operational Issues in Implementation of ERM 

Contents:

Ø  Introduction to ERM and the current standards for its implementation

Ø  Evolving a Business Strategy from the Mission ,Vision, Strategic objectives

Ø  Business Strategy and ERM – Aligning Business strategy with ERM strategy

Ø  Assessment of Insurance Business Risk

Ø  Identification of risks and risk register

Ø  Risk Management Policy

Ø  Risk tolerance statement

Ø  Assessment of Market Risk (Investment Risks) including Credit Risk & ALM

Ø  Capital Management

Ø  ORSA

Ø  Continuity Analysis and Stress Testing

Ø  TRM Framework

Ø  Management of Operational Risks including Cyber Risks and Reputation Risks

Ø  Risk Governance

Ø  Risk Control Measures and Risk Mitigation Tools

Ø  Risk Responsiveness and Feedback Loop

Ø  Operational Issues in ERM Implementation including Embedding risk culture

Ø  Risk Based Solvency and its implications on Insurance Business

Ø  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.            25.10.2023-27.10.2023

     II.            06.11.2023-08.11.2023

  III.            27.12.2023-29.12.2023

  IV.            20.02.2024-22.02.2024