P723- PROGRAM ON ENTERPRISE RISK MANAGEMENT (LIFE)
Within 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.
Today, key issues threatening existing insurance model is global
warming and the increase in catastrophic risks due to it. The ever-increasing
reliance on technology has its own elements of risks.
Pandemic had and may continue to have a major impact on the way
Insurance Industry perceives and responds to risks.
Thus, today every Insurer 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 regulator
has already mandated or 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 will be a part of business processes
for all Life Insurers.
IFRS 17envisaged to be implemented in India 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. At the end of this course the participants are
expected to have an overview of the ERM framework and its significance.
Objectives:
At the end of the programme participants will 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: