Solvency II - Pillar 2
As of February 1, 2017, the Minimum Requirements for Governance came into effect in the Federal Republic of Germany, and are a major element of the second pillar of Solvency II.
In terms of risk management, Solvency II requires the implementation of so-called governance key functions. Meyerthole Siems Kohlruss (MSK) supports companies in matters of risk management related to actuarial and risk strategic questions. Furthermore, MSK offers assistance concerning the interaction of the governance functions.
Fit & proper
Our great strength as an actuarial consultant is the link between expert knowledge and long-standing experience. We have numerous references from the industry. Furthermore, we pay maximum attention to data protection, which is regularly confirmed by the international certificate ISO 21007 (issued by DEKRA). Matching the requirements of "fit and proper," which describe professional competence ("fit") and reliability ("proper"), is easy for us.
As one of the so-called key functions, the actuarial function forms part of the governance system required by the second pillar. The responsibilities and tasks of the actuarial function include the evaluation of the technical provisions, the expression of an opinion on underwriting policy as well as on the adequacy of reinsurance. The actuarial function delivers reports directly to the management and is closely linked to the risk management function.
Meyerthole Siems Kohlruss (MSK) carries out the actuarial function as an outsourcing service (permitted by the regulation authorities) and provides external expert knowledge based on long-standing experience.
In addition to adjusting the risk management according to the Governance Directive, the second pillar of Solvency II requires that companies carry out a regular, extensive risk inventory. When implementing such an Own Risk and Solvency Assessment (ORSA), it is important to cover the whole risk management process - which, in addition to the relevant technical risks, should also include aspects related to compliance as well as new phenomena such as cybercrime. Furthermore, the stability of a company's solvency situation should be assessed via a medium-term plan involving stress scenarios. With the help of specifically designed software solutions, MSK supports your ORSA process in a competent and holistic way.