A four-session course seeking to provide insurers grappling with the requirements of the Solvency II directive with practical solutions began last Tuesday.
Solvency II will modernise capital calculation rules
Insurers are currently facing a daunting challenge in understanding the new governance rules under the Solvency II Directive. The lack of clarity provided by the EU on the implementation of the directive has left insur-ers guessing how to reach full compliance.
Chris Cachia of Ganado and Associates explained that the aim of the course is to provide solutions to insurers as they try to address the requirements of the directive. “Compliance and internal governance will take centre stage once the new regime comes in force in 2014,” Dr Cachia said.
Themed ‘Meeting the requirements of the second pillar under the Solvency II Directive’, the course is organised by the Institute of Legal Studies Malta and features speakers from both the insurance management and insurance fields.
In three years’ time, insurers will need to implement structural changes to the way their business is run. All processes will have to be documented in a comprehensive way and this may put pressure on small carriers.
The first session provided an introduction to the Solvency II Directive and its implementation process both in Malta and in Europe. Participants were also briefed with the latest updates.
Solvency II will modernise the capital calculation rules for insurance undertakings across Europe, including Malta. The risk management processes will also be linked to quantitative and qualitative indicators. Corporate governance will form the backbone of the way insurers will handle the implementation of the new rules. The European Union and the Malta Financial Services Authority are currently preparing detailed guidelines on the implementation of the new rules.
The course will continue for the next three Tuesdays and will deal with insurers’ internal control and risk management systems as well as the Own Risk and Solvency Assessment requirement under Solvency II.
The Institute of Legal Studies was set up by Ganado and Associates Advocates in 2005 to meet the growing demand for information about law among Malta’s legal and commercial communities.
ILS provides a mix of education and training with courses and supports research and publishes studies in topical legal areas. Information about the institute is available at www.ils.com.mt.