Members of the local insurance industry joined the KPMG Gibraltar team at the Sunborn Hotel for an update on Solvency II regulations
Members of the local insurance industry joined the KPMG Gibraltar Managing Director, Jon Tricker and team at the Sunborn Hotel on Friday for an update on how Solvency II, the EU’s new insurance regulatory framework, is being enforced in both Gibraltar and other jurisdictions. The specific areas of KPMG’s focus were the requirements for all EU insurers, regardless of their nature, scale and complexity, to provide for four “Key Functions” (namely, Risk, Compliance, Internal Audit and Actuarial).
KPMG’s Risk Advisory team opened up on the non-Actuarial side. He started by reiterating that Key Function provision is not regulatory dictation of headcount, rather it is about access to expertise, reminding the audience of the flexibility allowed for by Solvency II in organising oneself through methods such as outsourcing. He then covered the chronology of Gibraltar’s experience in this area since 2009, the approach of the outer-EU states in this field, and the outsourcing techniques available, including how to ensure service providers are fit and proper.
Noel Garvey, KPMG Actuarial Director and non-life and captive expert, then gave his observations on the range of technical matters Europe’s actuaries now cover, such as providing opinions on reinsurance arrangements and underwriting policies. He detailed how collaboration with other Key Functions and their reporting outputs can measurably enhance this work.