Here, Germany has already anticipated essential regulations of the second pillar of Solvency II through the Minimum Requirements for the Risk Management of Insurance Companies (MaRisk VA). In addition, the third pillar of Solvency II imposes significantly higher requirements on risk reporting to the supervisory authority and the public.

In addition to these direct effects on risk management, reporting and control concepts, extensive changes are pending in a large number of business decisions such as actuarial product development, reinsurance requirements, investment selection and in the acquisition/sale of business entities as well as in the further development of control concepts.

Your business entity - typical challenges

Regulatory innovations are intended to better arm insurers against risks in the long term. First, however, the various regulatory requirements (Solvency II, MaRisk VA, SST) require preparatory and accompanying adjustment efforts in business entities. Typically noticeable in the need for

  • Design and implementation of appropriate methods and processes
  • Development of appropriate risk models and risk/performance based management systems
  • Revaluation of insurance products as well as more ambitious methods for valuing insurance portfolios, capital or investment portfolios.

Our consulting offer - selected solutions

KPMG supports you in all phases of development, implementation and optimisation of integrated risk management.

  • Gap analysis and determination of measures: Review of existing structures/processes/methods, particularly in the areas of risk, actuarial services, controlling and accounting. Comparison of the actual situation with regulatory requirements (Solvency II, MaRisk VA, SST). Development, optimisation and implementation of appropriate risk governance and control structures (including MaRisk-compliant emergency and recovery plans). Preparation and support for regulatory approvals and audits of internal (partial) risk models (including model documentation).
  • Qualitative risk management: Support in developing and formulating risk strategies, alignment with business strategy. Review, benchmarking and description of risk-bearing capacity in accordance with regulatory requirements. Further development of internal controls. Creation of all necessary documentation.
  • Risk modelling: Review and benchmarking of risk models. Review of standard model calculations. Development and adaptation of internal models, including partial approaches, with regard to processes, data, assumptions, parameters and the underlying formulae. Performance of calculations. Preparation of the model results for decisions (use test).
  • Reporting and integration of risk and control reporting: Conceptualisation, adaptation and further development of risk reporting. Design of risk management systems. Creation of consistency between (external) risk and (internal) control information. Design of risk/value-oriented corporate management (including capital management control and optimisation of asset liability management systems).
  • Product development/pricing: Support in the development of innovative products in the life insurance sector (including variable annuities) as well as in the damage and accident sector (bundle products).
  • Embedded value: Further development of methods for the valuation of insurance portfolios and risk capital based on market consistent embedded value (MCEV) for life and health insurance companies (including software implementation).
  • IFRS for insurance: KPMG is up-to-date on discussions around an IFRS standard for insurance companies, which particularly concerns questions related to accounting for insurance provisions.