Tag Archives : newsletter 69

A prime opportunity to enhance professional skills

 

Dirk Wegener

Dirk Wegener

FERMA’s 2016 Risk Management Seminar will take place from 3 to 4 October in St Julian’s, Malta. The Seminar is a more intimate occasion than the Forum which takes places in alternate years. It aims at providing knowledge and understanding so risk managers can deepen their skills, discuss the latest trends and share experiences. According to FERMA board member Dirk Wegener, who is heading the Seminar committee: “Development of our professional skill sets is the focus of the Seminar programme.”

He explains, “Besides providing respected speakers, the Seminar will be an excellent opportunity to talk and to listen to the thoughts and ideas of your European peers. We plan to have risk managers only round table sessions to strengthen the communication on very specific topics among this group of professionals in an almost private setting. FERMA considers education to be key for the future of risk managers, and therefore the Seminar will also be linked to our rimap© certification initiative.”

The Seminar website is expected to launch in February (*) with registration beginning end of March. FERMA is currently asking its members for subjects for discussion at the Seminar, and three specific sessions have been set aside for topics proposed by the national associations. Individual risk managers should make their suggestions to their national association as soon as possible.

The Malta Risk and Insurance Management Association (MARM) is the host for the event and its President Ian-Edward Stafrace said: “Malta is a known EU insurance domicile, specialising in captives and protected cells, with all leading insurance management companies licensed and operating from the island. Many captives licensed in Malta are, in fact, planning their board meetings around the Seminar. Malta is also known for its funds sector, with many members from our association being risk specialists in market and credit risk. We are also leaders in e-gaming with risk management in areas such as fraud and cyber risk. MARM will also use the seminar to spread awareness and knowledge of risk management to the Maltese business community.”

FERMA Risk Management Seminar website available on www.ferma-seminar.eu

 


Making FERMA ever more open and efficient to support risk managers

My aim is for FERMA to work for the advantage of risk managers by becoming ever more open and efficient, says FERMA’s new CEO, Typhaine Beaupérin after her first month in the job. She is full of enthusiasm. “What I really love about FERMA is that the board and the members are passionate about what they do. With their support and the quality and commitment of the team in the FERMA office, my ambition is more than achievable.”

Ms.Typhaine Beaupérin, FERMA CEO

Ms.Typhaine Beaupérin, FERMA CEO


Typhaine joined FERMA as its first CEO in early December. A French woman who has lived in Brussels for more than 12 years and studied in France, Germany, the UK and Belgium, she declares herself an enthusiastic European. “I value different ways of thinking, of doing and of being, while aiming at a common goal.”

Before joining FERMA, she worked for 10 years as a lobbyist for a multi-national retail company, a global law firm and one of the leading European business organisations, EUROCHAMBRES. She was drawn to FERMA job, she says, because it gives her an opportunity to work directly with a profession, and with an organisation that is in the process of development.

“It is very refreshing to work with so many people who are so committed, so passionate about what they are doing. The members of the board give their time free on behalf of the profession. They have a real commitment to making sure that the profession is ever better recognised. Their dedication to the success of FERMA’s professional certification project rimap is one example of this, but it is not the only one.”

Typhaine finds politics fascinating, and her understanding of how policies are made and legislation passed will help to strengthen FERMA’s advocacy role. She believes FERMA should be a recognised partner for European institutions on all risk-related issues, direct or indirect. “Europe is a democratic progress and this is why groups make their views known. We want to be in the debate. We can be involved as stakeholders in shaping opinion. Being in Brussels, FERMA is close to the heart of European decision making.”

While working on FERMA’s new strategic plan, Typhaine says that her personal objective is “to make FERMA an even more open and efficient organisation in which all want to commit and participate. We cannot live without our members and to work with them, we have to be open and inclusive. We have to be efficient so that we can increase our visibility at EU level and in that way provide added value to members. I want to listen to our members, find out what they expect and connect better with them.”


Apply now for 2016-7 FERMA-Lloyd’s programme

Applications for the next FERMA-Lloyd’s education programme for promising risk
managers will close by mid-February – or earlier if it is over-subscribed. Interested risk managers should contact their national association as soon as possible.

Starting on 21 April at Lloyd’s in London, this will be the third edition of this enormously successful project, which is free to participants. The programme consists of three two-day sessions at Lloyd’s covering a wide range of insurance and risk subjects. Participants also get to shadow brokers and underwriters and meet the most senior people in the market.

Lloyd's class hands raised

The sessions will take place:

  • Part 1: 21-22 April 2016
  • Part 2: 27-28 October 2016
  • Part3: TBC, April 2017

Planned topics for the first session in 2016 are:

  • Lloyd’s overview and the London market
  • Understanding and accessing the Lloyd’s and London insurance market
  • Risk management and performance management at Lloyd’s
  • Emerging risks
  • Lloyd’s cyber risk insurance initiative

Hear more from previous participant Aysan Sinanlioglu, President of the Enterprise Risk Management Association of Turkey, (ERMA) and Executive Vice President of Risk Management at Dogus Holding, and Lloyd’s Head of Europe, UK and Ireland, Benno Reischell.
https://www.youtube.com/watch?v=FWBLD_TUqss


Knowledge Corner

Here is FERMA’s selection of recently published useful reports for risk managers…

Business Interruption

Allianz Global Corporate and Specialty
Global Claims Review 2015
http://www.agcs.allianz.com/assets/PDFs/Reports/AGCS-Global-Claims-Review-2015.pdf

Global Risks
Control Risks Risk Map 2016 (English)
https://riskmap.controlrisks.com/

Environmental Responsibility

Environmental liability and enterprise insurance
FFSA (French)
http://www.ffsa.fr/sites/jcms/p1_476292/en/la-responsabilite-environnementale-et-lassurance-des-entreprises?cc=fn_7316

Fraud

Global Fraud Report
Kroll (English) available on registration
http://www.kroll.com/global-fraud-report

Natural Catastrophes 2015

Manuel of the AGERS working group on natural catastrophes
AGERS (Spanish)
http://www.agers.es/blog/ii-manual-cat-nat/
€20

Aon
http://thoughtleadership.aonbenfield.com/Documents/20160106-if-december-global-recap.pdf

Munich Re (English, German)
http://www.munichre.com/en/media-relations/publications/press-releases/2016/2016-01-04-press-release/index.html

Swiss Re (English, German)
http://www.swissre.com/media/news_releases/Preliminary_sigma_estimates_for_2015.html

Newsletters
Airmic
http://www.airmic.com/airmicnews
DVS (German)
http://www.dvs-schutzverband.de/publikationen/die-versicherungspraxis-vp/?L=1%2529
NARIM (Dutch)
http://www.narim.com/userfiles/File/NARIMagazine_december_2015.pdf


Expert Views: the changing aspects of managing terrorism risk

Terrorism has been a threat for some years and materialised sadly in France several times in 2015. We are facing a situation where victims of an attack in France (whatever their nationality) will be indemnified by state funds, either existing or through free access to medical services which was recently decided.

Anne-Marie Fournier, board member of AMRAE and Risk Manager of luxury brands group, KERING

Anne-Marie Fournier, board member of AMRAE and Risk Manager of luxury brands group, KERING

Employers have to take decisions on the protection of employees and security departments in industrial or commercial services companies decide on most appropriate measures depending on location, activity, reputation, etc. Most industries are checking more carefully all persons entering their locations and probably also checking many sensitive areas like for example crucial data of the company.

Regarding property damage and consequential business interruption (PD/BI), insurers underwriting PD/BI covers have an obligation to provide terrorism cover. As a counterpart of this mandatory cover, insurers access a global reinsurance scheme administered by GAREAT, a pool launched on 1 January 2002. GAREAT organises the tariff and reinsurance of this exposure with the commercial insurance market and through French state funds for “unlimited treaties” reinsured through the Caisse Centrale de Réassurance.

Unfortunately GAREAT has no dedicated reserves, as all premiums are transferred to the market reinsuring the terrorism exposures. As a consequence, there is a limited possibility of action in order to answer current needs for cover for “financial losses” without property damage. For example, activities that closed by prudence in the days following the recent attacks cannot benefit from business interruption cover if they have not suffered any property damage.

There are many activities with large numbers of visitors or participants which have cancelled activities and closed locations by prudence and have no insurance for these financial losses.

AMRAE would encourage this system to be reconsidered in order to leave the commercial market free to deliver the cover that it does elsewhere. There is hardly any other mandatory state schemes for terrorism insurance in the world; (many are optional.) The state-backed scheme could then concentrate on losses which cannot be obtained from commercial markets: nuclear, biological and chemical (NBC), pure financial losses, unlimited cover over €2B, etc.

Additional resources:
AMRAE resilience attentats (French)


Solvency II: Spotlight now turns on national regulators

Consistent implementation of Solvency II across the EU is the only guarantee that European insurance buyers will benefit from a new level playing field to optimise the protection of their organisation.

Because regulators have now a key role in the local enforcement of Solvency II, this is where our attention should be in 2016. The interpretation and local adjustment will play a fundamental part in how Solvency II will be perceived by the sector.

Since 1 January 2016, the rules set by the Solvency II Directive have been officially the new regulatory regime for the insurance industry in the European Union. The Directive has been transposed and implemented into the national laws of the 28 EU member states. From the adoption of the Directive in 2009 until the latest amendments in 2014, it is now up the national regulators to apply and enforce the new rules.

EIOPA offices in the “Westhafen Tower” - Frankfurt

EIOPA offices in the “Westhafen Tower” – Frankfurt


Solvency II also came in 2014 with a detailed text called a delegated act which specifies with further details how the national authorities will have to understand and effectively put into place the capital, governance and reporting requirements.

It remains to be seen how the local regulatory authorities will handle the additional workload. The new reporting rules and the documentation will require a lot of resources to be assessed and used properly. This is the necessary condition to turn the new regime into a really meaningful exercise and grasp the full potential of Solvency II.

The newly needed resources, however, are likely to increase the fees that most supervisors impose on insurers. With its privileged position and access to all EU local insurance supervisors, the European insurance and pensions authority, EIOPA, will have to monitor closely the impact of Solvency II in terms of the regulation costs for the whole industry.

EIOPA also announced that the principle of proportionality set forth by the Directive will be scrutinised to monitor how local regulators have translated and defined what is a captive and how the principle of proportionality should be applied to the eligible entity (Keynote speech of Gabriel Bernardino, Chairman of EIOPA, “Implementation of Solvency II: The dos and the don’ts” – International conference “Solvency II: What Can Go Wrong?”, Ljubljana, 2 September 2015).


Final agreement on data protection regulation

With the European Parliament’s agreement on a final text for the General Data Protection Regulation on 17 December 2015, the new European data protection regulation is now likely to enter into force in spring 2018.

In this final version of the regulation, large organisations will have to pay specific attention to the five following provisions:

– The mandatory appointment of a data protection officer but only for organisations whose core activities consist of processing a large amount of personal data (‘regular and systematic monitoring of data subjects on a large scale’);

– Data Protection Impact Assessment will become mandatory when there is a high risk for the rights and freedoms of individuals , in particular when using new technology;

– Fines for breaching the regulation of up to 4% of global turnover;

– The notification of a personal data breach to the supervisory authority no later than 72 hours after having become aware of it;

– No effective system of ‘one decision, one outcome’ for cross-borders cases. EU citizens could still complain to their local data protection authority even if the case is already pending in another EU jurisdiction.

Blue_Mountain_Supercomputer
The final version of the regulation still gives each national data protection authority a margin of discretion on a case-by-case basis to matters like sanctions, definition of high risk processing, claims handling and so on.

This is preventing the regulation from achieving the initial ‘one stop shop’ wanted in the original proposal from the European Commission in 2012.

This compromise with the Council (co-legislator) and the European Commission is the result of many months of negotiations among the three EU institutions. The text has been adopted by the Civil Liberties Committee, which is leading the dossier at the European Parliament, and will now be formally endorsed during a plenary session of the Parliament in March or April.

Two years after its publication in the official journal of the EU, the new regulation will be fully applicable in 2018 in the European Union.