IMIF Steering Group Meeting 22 September 2015 Attendees Jose Morago, Aviva (Chair)

IMIF Steering Group Meeting 22 September 2015
Attendees:
Jose Morago, Aviva (Chair)
Sam Bullen (KPMG)
Alastair Clarkson (Standard Life)
Karun Deep (RSA) – on phone
David Finnis (KPMG)
David Innes (RSA)
Roger Jackson (KPMG) - on phone
Justin Skinner (QBE)
Barney Wanstall (PWC)
Carolyn Williams (IRM)
Apologies:
Tamsin Abbey (Deloitte)
Mark Banks (AIR Worldwide)
Raphael Borrel (Vitality)
Simon Cartlidge (L&G)
Caroline Coombe (ORIC)
Sebastien Delfaud (PRA)
Vishal Desai (PRA)
Steven Graham (IFoA)
Phil Healy (ORIC)
Paul Hopkin (IRM)
Tony Jeffery (PRA)
Justin Le Blanc (Deloitte)
Rob Merry (HSBC)
Matthew Pearlman (LCP)
Nicolas Pondard (PRA)
Martyn Rodden (Faraday)
Junaid Seria (SCOR)
Niraj Shah (Aegas)
Michael Sicsic (ORIC)
Michael Van Vuuren (EY)
Russell Ward (Milliman)
1. Attendees - Dave Finnis and Sam Bullen from KPMG attended as they had been
assisting with the Workstream C, Models and Boards, work.
2. Notes and actions from last meeting on 20 August 2015 – these were agreed.
3. Update from Workstream B – IMV Governance

A further draft of the booklet had been circulated earlier that day. This incorporated
comments from SteerCo members, with an improved story flow and included more
on tools and people issues. It was agreed that this draft was now much clearer.

The following comments were made, which would be taken away and considered by
Karun and Matthew:

It was suggested that the draft was possibly now a bit long and could benefit
from having the key messages for the board brought to the front, with extra
information for practitioners put into in an appendix.

Some reference should be made to the cost element - how the process needs
to be cost effective in order to be sustainable

the steerco wanted to be assured that the PRA were in agreement with the
document

additional case studies would be great and it was suggested that the PRA might
be able to help with these

It was agreed that SteerCo members should now have a short period of time to read
the document more closely and any further comments should be sent to Matthew
and Karun by Monday 28 September, copying in Jose.

Carolyn would look at the design and publication schedule, given the revised IMIF
meeting schedule (see below). We should aim now to get this ready for publication
as soon as possible (even if formal launch was at next IMIF meeting)
4. Update on Workstream C – Models for Boards

Roger had managed to pull this work back on track, with the help of his KPMG
colleagues Dave Finnis and Sam Bullen and a first draft of booklet content had been
circulated earlier that day.

The following comments were made, which would be taken away and considered by
Roger, David and Sam:

It would be good to get some more memorable case study examples of good
board communication (John Lister's 'liner and speedboat' analogy was
mentioned)

it might be useful to comment on 'what does the board really need to know' as a
starting point, and work down from there. Distinguish the essential elements
from the 'nice to have'.

at a PRA presentation to NEDs earlier this year a list of things that they should
be asking in respect of the model had been presented - it would be good to
incorporate this, or produce something similar

it would be possible to survey the members of the IMIF in order to update the
2015 survey and identify who was doing what in respect of board engagement
and extract some more examples of good practice. Carolyn could circulate a
request and a link to the IMIF members if required

this draft could be sent to the WCI INED group for their comments (Carolyn has
contact details if needed)

IRM also has links with ICSA (Chartered secretaries) and could ask for their
input to the work (Carolyn has contact details)

document should include something on how companies test their board's
understanding as part of the monitoring and improvement process.

the Australian experience (a move from excessive information to brief key
indicators and then back to a more balanced view) would be a useful story to
include

PRA agreement again was important for this topic and Roger would consult our
PRA representatives to ensure that their views were incorporated

It was agreed that SteerCo members should now have a short period of time to read
the document more closely and any comments should be sent to Roger, David and
Sam by Monday 28 September, copying in Jose. It was expected that the additional
research etc detailed above would take about a month and a revised draft would be
brought back for sign-off to the next SteerCo on 20 October

Carolyn would look at the overall design and publication schedule, given the revised
IMIF meeting schedule (see below).
5. Update from Workstream D – Alternative Uses of Risk Models

Raphael was working out of London and was unable to attend this meeting. He had
sent a brief update to say that an additional case study on pricing would be
completed by the end of September and two more would be completed in October.
The first two case studies were currently being formatted. No comments had been
received on them from SteerCo members.

At the previous meeting, Jose had asked Raphael to start on a broad draft of what
the executive summary might say - this would need to be carried forward. Jose
would follow up with Raphael on what might be presented when.
6. Future Forum Meetings

Forum Meeting, Mon 28 Sept - this meeting had been cancelled and the IMIF
membership informed.

Next Forum Meeting - a date had been set for Thursday 22 October but it had been
pointed out that this date clashed with the GIRO conference. The following week
was half term week. Carolyn would cancel this date and look for dates later in
November (also avoiding the date of the Life Actuaries conference on 18-20
November).

The next meeting would cover the publications from workstreams B & C - IMV
governance and models and boards. Any thoughts on keynote speakers welcome Norval Bryson (PRA board member and previously Deputy Chairman of Scottish
Widows) was suggested and agreed to be very suitable. Anyone who might be able
to provide an introduction to Dr Bryson to let Carolyn know.
7. New Workstream – Solvency II CRO Role

Martyn could not be present at this meeting but would provide an update to the next
one.

A workshop to discuss the issues had been arranged for Tuesday 13 October at
IRM and invitation had recently been circulated to all IMIF members to attend.
SteerCo members who wished to attend should book themselves in by emailing
[email protected].
8. New Workstream – Catastrophe Modelling

Junaid Seria and Mark Banks could not be at this meeting but it was understood that
the project was developing well.
9. Forum PR

Infoline 'Capital Modelling & Risk Management for Insurers' conference on 9&10
December - several SteerCo members were speaking at this. Carolyn was talking to
the organisers about what promotion for IMIF/IRM might be available in return for
circulating details to the IMIF membership.

InsuranceERM article on diversification - Justin had written this but didn't think it had
yet been published.
10. Future organisation of IMIF

Carolyn and Jose reported that they were talking to Alex Hindson, organiser of the
IRM's ERM in Insurance Special Interest Group, about bringing the work of the IRM
into the over-arching programme of that group. Although the work done by the IMIF
over the past 18 months was regarded as a great success, it had proved very
resource-intensive for IRM to support directly. Once the current wave of booklets
was complete, it was intended to keep the work of the IMIF going within the ERM in
Insurance SIG, with meetings allocated to discussions of modelling issues and an
opportunity to continue to share best practice for the next stages of Solvency II. It
was noted that meetings of the SIG could only be attended by IRM members but
Carolyn said that the time had now come for people who found the work useful to
support the IRM in return.
11. A.O.B

No further business
Dates of future Steerco meetings. All 5pm to 7pm
Tuesday 21 April
Thursday 21 May
Thursday 18 June
Tuesday 14 July
Thursday 20 August
Tuesday 22 September
Tuesday 20 October
Tuesday 17 November
Tuesday 15 December (followed by SteerCo drinks)
List of actions
 All SteerCo members to give final comments on IMV Governance draft booklet to
Matthew by Monday 28 September, copying in Jose
 Carolyn and Jose to draft the foreword for the IMV Governance booklet
 Matthew, Karun and Jose to prepare a revised version of the IMV Governance booklet
as soon as practicable
 All SteerCo members to review the Models and Boards first draft and give comments to
Roger, David and Sam.
 Roger, David and Sam to prepare next draft of Models and Boards for the next SteerCo
on 20 October
 Jose to follow up with Raphael on likely timescale for the summary booklet
 Carolyn to find a new date towards the end of November for the next Forum meeting,
cancelling the existing booking for 22 Oct
 Anyone who might provide an introduction to Dr Norval Bryson to let Carolyn know
 Martyn to report back to next SteerCo on progress on CRO Role workstream
 SteerCo members wanting to attend the CRO Role workshop on 13 October to book
themselves in
 Junaid and Mark to report back on progress to the next SteerCo