PwC
United Kingdom home
 
Industries   Industries
Issues   Issues
Services   Services

Risk & capital management


Printer Icon Print this page
Email Icon Email to a colleague

It is important for insurers to develop effective risk and capital management to achieve target returns for the insurer's capital providers and for their policyholders. Capital management tools can also be used to ensure that the incentives and behaviours of managers are aligned with the overall creation of shareholder value.

PwC specialises in developing and implementing a range of capital management and modelling approaches to assess capital requirements. These approaches are used for internal capital assessments, determining optimal reinsurance programmes and investment strategies, capital allocation and for assessing the impact of strategic decisions on shareholder value.

Our approach is flexible to ensure that each company’s requirements are met, rather than providing one-size-fits-all solutions. These solutions assist management in improving their business planning processes, as well as improving the quality of management information, in order to ensure effective capital management.

How we can support you
More about this service

Potential issues

  • You want to determine your risk-based capital requirements and determine the most efficient use of your capital
  • You want to improve your business planning process and link this to your management of capital
  • You want to improve your risk identification and quantification, including operational risk
  • You need to understand the Financial Services Authority’s (FSA) requirements for regulatory capital under CP190, including production of an internal capital assessment for the FSA
  • You want to determine the optimal approach including pricing, underwriting, reinsurance and investment
  • You need improved management information that builds on your modelling work

How we can support you

  • You will be able to define your risk-based capital requirements by business line
  • Your risk management will be linked, through risk identification and measurement, to your risk-based capital requirement
  • You will have a robust and repeatable process to produce an internal capital assessment that will satisfy the FSA
  • You will have improved business decision support for pricing, underwriting, reinsurance and investment strategies, which will maximise your shareholder value
  • Your management information will be comprehensive yet understandable, support business decisions based on the risks analysis and modelling work undertaken, and monitor your solvency position with respect to pre-defined trigger points
  • You will have trained staff who can support and repeat the risk and capital process

PwC's risk & capital management services include

  • Risk assessment
  • Assistance in setting up a risk control framework and risk register
  • Advice on the implementation and embedding of modelling tools into the management process, or review of current systems and models
  • Technical advice on the scoping, choice, design and setting of parameters for capital models as well as training staff in the use and capabilities of such tools
  • Assistance in tailoring outputs from capital models to suit the needs of stakeholders and the development of good practice management information
  • Assistance in developing methodology for the calculation of the individual capital assessment
  • Advice on the measurement and monitoring of operational, liquidity, systems and control risks
  • Management of the process of communication with the FSA regarding increased regulatory capital requirements
  • Negotiation (in conjunction with our regulatory experts) with the FSA for waivers to enhanced capital requirement
  • Assistance in developing a capital management framework to improve economic capital management including risk adjusted performance

Bookmark with: