Risk Management Process Outlook
Sampo Group companies continuously develop their risk management processes. This work is based on internal needs and regulatory requirements of which the future Solvency II is the most important. The uncertainty around the Solvency II timetables, final rules and capital charges as well as ensuing impact studies are to some extent impeding the development of risk management process.
During spring 2013, Mandatum Life and If P&C will participate on EIOPA´s (European Insurance and Occupational Pensions Authority) LTGA exercise that effectively is a new QIS exercise with focus on long term guarantees. In addition to this exercise, work around Solvency II will continue during 2013.
In If P&C, a separate Solvency II program was introduced in 2007 to prepare If P&C for the anticipated changes. The program has encompassed involvement in the Solvency II debate and a thorough review of If P&C’s corporate governance and internal control structure, the risk management system as well as the internal capital model. The program was finalized in 2012 and responsibilities to further develop risk processes and reporting were transferred to the line organization.
In the beginning of 2011, If P&C entered a so-called pre-application process with the Swedish and Finnish Financial Supervisory Authorities. The process continued during 2012 and is expected to be finalized during 2013. The aim is to have a partial internal model approved when Solvency II regulations enter into force. Also Mandatum Life develops further its corresponding models.