The Association of British Insurers (ABI) has recently published guidelines based on existing legislation around industry good practice for catastrophe modelling under Solvency II. The paper was the result of the first collaborative working party of its kind which included Willis Re, one of the ICMIF Supporting Members.
Although the guidelines have been produced with UK insurers in mind, the taskforce anticipates they will have a global influence on how regulators and markets approach the use of cat models. Willis Re has produced a summary of the ABI guidelines, available to ICMIF members.
Andrew Mitchell, Managing Director of Willis Analytics Catastrophe Management Services and Ben Chadwick, Executive Director and Lead Analyst for Willis Re’s Non-Marine Retrocession and London Market business unit, represented Willis Re on the taskforce.
Mitchell commented: “These guidelines appear to be the first instance of any financial services sector working collectively to understand how best to manage modelling processes and model methodologies. This is also the first time in the 20 years of cat modelling history that a definitive consensus approach has been established by its leading practitioners.”
Robin Swindell, Executive Vice President of Willis Re, and co-author of a recent paper on Catastrophe Modelling for Mutual Insurers, which was exclusively prepared for ICMIF Members, commented on the guidelines;
“Willis Re understands how difficult it can be for specialist Mutual and Co-operative Insurers to keep up to speed with the torrent of legislation and new regulations in this Field”. He went on to say “As a particular advocate for the Mutual insurance sector, Willis Re welcomes the publication of these guidelines and stands ready to assist Mutuals and Co-operatives in meeting these ongoing challenges.”
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Download the paper here (English) (pdf, 108.56 kB)