Solvency II and the reportable rogues

If your idea of a rogue is a moustache-twirling reprobate in a Victorian novel, think again. John Webb reveals them lurking in Solvency II – as an acronym of key issues to be treated proportionally – and discusses their required documentation.

John Webb MA, FCCA, ACFE is the former chairman of the Institute of Internal Auditors’ banking and financial services group and serves on the Association of Chartered Certified Accountants’ internal audit network panel committee. He is a financial services internal audit consultant, specialising in investment banking and Solvency II for insurance companies. As a certified fraud examiner, John is experienced both in fraud risk management and investigation. Contact: johnwebb77@gmail.com, © John Webb 2010.

In my last Compliance Monitor article, in September, I concentrated on modelling capital assessments and governance systems, highlighting that particular difficulties arise with regard to risk aggregation, diversification and fat tails of normal distribution curves (where there is a greater frequency of extreme events than predicted by Gaussian modelling techniques). I now address what I consider to be the primary areas of Solvency II to concentrate on.