The Institute of Legal Studies ran a course during September dealing with the proposed corporate governance requirements under the second pillar of the Solvency II Directive. The course covered topics such as the internal control environment under the new regime, the risk management system and the Own Risk and Solvency Assessment (ORSA).

The different sessions were delivered by practitioners in the field as well as lawyers from Ganado & Associates. The ultimate aim of the course was to provide a platform to bring the academic analysis of the proposed text together with the input of practitioners in order to provide possible ways of approaching the implementation of the directive which to some extent remains to date unclear.

The course dealt with insurers’ internal control and risk management systems as well as the ORSA under Solvency 2. Speakers from the insurance management and insurance fields featured throughout.

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 EU and MFSA are currently preparing detailed guidelines on the implementation of the new rules.

The Institute of Legal Studies was set up by Ganado & Associates, Advocates in 2005, to meet the growing demand for information about law amongst the legal and commercial communities in Malta.

ILS reaches this goal through education and training: it not only provides practical courses, but also supports research and publishes studies in topical legal areas. More information can be found on the Institute’s website on www.ils.com.mt.