NATIONAL INSURANCE ACADEMY
PUNE
P723 -
SPECIAL PROGRAMME ON ENTERPRISE RISK MANAGEMENT(ERM) (LIFE)
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 2007–2008
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 – It’s
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
§
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
Trainees nominated for this programme in the last two years should not be renominated.
Duration: 3
days
I.
23.06.2025 - 25.06.2025
II.
02.09.2025 - 04.09.2025
III.
02.02.2026 - 04.02.2026