Category Archives: Insurance

Liability considerations for arming school personnel

School districts and legislators across the United States are considering how best to protect children and school staff from gun violence at schools. At least 24 states across the country have policies that allow security personnel to carry weapons in schools, and at least nine states have policies that allow other school employees to do the same.

Arming school staff and allowing guns in schools pose challenging risk and liability issues. As with any legislation, the ramifications of a new policy can be complicated, and there are a variety of factors that governments and school boards must weigh as they debate this issue. This paper examines risk and insurance considerations for school districts and legislators tackling this difficult subject across the United States.

Considerations for product governance risk management

A key focus of the insurance regulatory authorities around the world has been the protection of policyholder interest. This has resulted in more emphasis on product governance and product life-cycle management. The insurance directive launched under the European Union insurance law has issued guidelines for insurers to embed product oversight and governance into their risk management frameworks.

A robust product governance process can help reduce mis-selling and complaints, and increase policyholder confidence in the market. It can also ensure internal and regulatory compliance for the products offered by the insurer.

The core components of a robust product governance process are:

• Product governance policy
• Product development
• Pricing and value
• Distribution and sales
• Legal, compliance and risk management
• Ongoing assessment of the product

To read more about building a strong product governance policy, read Neha Taneja’s article here.

The meeting of the Transition Resource Group for IFRS 17 insurance contracts

The Transition Resource Group (TRG) for IFRS 17 will meet four times during 2018 to discuss questions raised regarding the implementation of the IFRS 17 Standard. In this article, Milliman consultants summarise key points arising from the TRG meeting of 2 May 2018. The TRG meeting covered some of the implementation challenges raised by TRG members and a number of examples relating to the following concepts in IFRS 17:

• Coverage units
• Contract boundaries
• Risk adjustment at the group level
• Bundling insurance contracts

Indonesia Life Insurance Newsletter, May 2018

According to the Indonesian Insurance Statistics published by the Financial Services Authority, the Indonesian life insurance industry achieved double-digit growth in 2017. Last year, the industry recorded a net premium of IDR 232.06 trillion, a 44% growth year-on-year over 2016. Total assets grew 30% year-on-year to IDR 512.95 trillion. Milliman’s Richard Holloway, Halim Gunawan, and David Kong offer more perspective in the latest Indonesia Life Insurance Newsletter.

Analysis of non-life insurers’ Solvency and Financial Condition Reports: European and Polish non-life insurers (year-end 2016)

Solvency II went live on 1 January 2016 and introduced a number of new disclosure requirements for European insurers. Each insurer is now required to publish annually a Solvency and Financial Condition Report, including some Quantitative Reporting Templates. This European analysis of the non-life market by Milliman’s Marcin Krzykowski and Jarosław Lech covers 140 companies from 11 countries, which together comprise more than €141 billion of gross written premium (GWP) and nearly €224 billion of gross technical provisions, and our Polish analysis is based on 14 solo companies pursuing non-life business in Poland, representing circa 89% of the GWP of the Polish non-life market in 2016.

Analysis of life insurers’ Solvency and Financial Condition Reports: European and Polish life insurers (year-end 2016)

Solvency II came into effect on 1 January 2016 and introduced a number of disclosure requirements for European insurers. Under the new requirements, the majority of European insurers were required to publish detailed Solvency and Financial Condition Reports for the first time in May 2017. This analysis of the European life insurance market by Milliman’s Marcin Krzykowski and Jarosław Lech covers 200 companies from 13 countries, representing approximately €475 billion in gross written premium and approximately €4,700 billion of gross technical provisions.