The Two Pillars – Financial and Operational Resilience

Details

A firm’s ability to continue as a going concern is determined by its proficiency in appropriately balancing both financial and operational resilience considerations in tandem.  Our prudential regulation event is intentionally structured to reflect this delicate balancing act as we focus on both topics in equal measure. Attendees will have the chance to hear from experts as they reflect on and discuss both topics distinctly, how they interact to protect policyholders and ensure a firm’s safety and soundness and other related matters.  This is an event you would not want to miss.

Financial and operational resilience are the two pillars that support an insurer’s safety and soundness and its ability to adequately protect its customers.
Focus on the quantitative tools that secure a firm’s financial resilience such as capital, stress testing and scenario analysis remains strong.  Whether driven by the Solvency UK reform debate, the Prudential Regulation Authority’s (PRA) insurance stress tests or ongoing efforts to mitigate the financial risks posed by climate change, firm’s resilience to financial shocks is firmly in the spotlight.

Insurers must also always remain mindful of the action needed to ensure they do not fall prey to potentially catastrophic operational disruption. This is because a firm’s operational resilience is just as important as its financial resilience.  Operational incidents could negatively impact a firm’s ability to serve its policyholders and could ultimately lead to its ruin if severe enough.  It is therefore crucial for firms to be able to bounce back when operational incidents occur as they inevitably will.  Given the regulatory requirements for firms to have a prioritised plan setting out how they will comply with the requirement to remain within their impact tolerances within a reasonable time by March 2025, this topic cannot take a back seat to financial resilience.

Why attend?

• Explore the current status of Solvency UK reform and the future of PRA stress tests including as impacted by amongst other things the regulators new supervisory powers to publish stress test results for long term life insurers.
• Understand your firm’s own state of readiness for operational resilience requirements and what is left to do to meet the PRA’s March 2025 deadlines.
• Gain insights on how non-financial and behavioural factors can influence decisions made with respect to operational and financial resilience.
• Take advantage of 3 hours of CPD with this CII accredited event.

Bookings close at 17:00 on 20th November 2023.