Directrix has been actively involved with the implementation and quantification of the impact of SAM with several insurers. We have assisted clients in the overall implementation of SAM; both from an advisory point of view and in the development of bespoke Governance and risk management documents and Own Risk and Solvency Assessment (ORSA) policies, processes, modelling and reporting.
Additional services include capital stress testing, scenario modelling, investment strategy and cross-class retention testing.
Pillar I – Quantitative Requirements
Directrix assessed and co-ordinated the implementation and quantification of the impact of SAM with several insurers. In addition, we participate in a number of committees and actively assisted in the drafting of the simplification rules for 1st party business that was first used in South Africa’s second Quantitative Impact Study (SA QIS2).
Current assistance to clients include SCR projections (in terms of standard model and simplification methods), risk programme structuring, capital allocation, re-insurance structuring and asset-liability matching to inform SAM implementation decisions.
Pillar II – Risk Management and Governance
Directrix assists clients with the overall implementation of SAM, with specific emphasis on the Pillar II requirements. Exercises include the development of governance documentation and risk management policies, ORSA frameworks, ORSA risk workshops and ORSA financial risk modelling. Additional services include capital stress testing, scenario modelling, investment strategy and cross-class retention testing.
Pillar III – Reporting and Disclosure
We have a comprehensive understanding of the reporting and disclosure requirements and have assisted with, reviewed and completed reporting templates for clients, under interim measures, SAM light and comprehensive parallel runs Quantitative Reporting Templates (QRT’s).