The European Insurance Industry (eBook)

Contents 5
List of Tables 8
1 Introduction 9
2 Risks and Control of Insurance Undertakings 14
1 Introduction 14
2 Distinctive Features and Risks of Insurance Undertakings 15
3 The Role of Internal Control 18
4 The Role of External Supervision and Regulation 22
4.1 Evolutionary Profiles of the Solvency Regime in the European Context 24
4.2 Genesis and Purposes of the Solvency II Regulation in Europe 26
4.3 Evolutionary Traits of the Solvency Regime in the USA 30
5 Conclusions 33
References 34
3 An Integrated Approach to Risk Governance in the Insurance Industry 37
1 Introduction 37
2 An Integrated Approach to Insurance Risks Management 39
2.1 The Technical-Actuarial Risk Management 42
2.2 The Market Risk Management 47
2.3 The Liquidity Risk Management 51
2.4 The Credit Risk Management 55
2.5 The Operational Risk Management 56
2.6 The Legal and Compliance Risk Management 58
3 Conclusions 60
References 60
4 Risk Governance in the Second Pillar of Solvency II Framework 65
1 Introduction 65
2 Main Provisions on Corporate Governance of Insurance Undertakings 67
3 The Four Key Functions in the System of Risk Governance 69
3.1 The Risk Management Function 70
3.1.1 The Own Risk and Solvency Assessment Process 72
3.2 The Compliance Function 76
3.3 The Actuarial Function 77
3.4 The Internal Audit Function 79
4 Conclusions 81
References 82
5 The Evolving Risk Landscape: Impact on Internal Control and External Regulation 85
1 Introduction 85
2 Trends in the Insurance and Financial Sector: New Competitive Landscape 86
3 Digital Transformation of the Insurance Value Chain 91
4 New Control and Regulatory Issues in Light of Emerging Risks 94
4.1 Towards a Review of the Existing Regulatory Solvency II Regime 98
5 Conclusions 102
References 103
6 An Assessment Model of the Internal Controls System 108
1 Introduction 108
2 The Internal Audit Assessment of the Internal Controls System 109
3 The Assessment of Entity-Level Residual Risk 110
4 The Assessment of Process-Level Residual Risk 111
5 Conclusions 118
Appendix 118
References 126
Index 127