Insurance Solutions

Swiss Solvency Test, ORSA and Investment Guidelines

Requirements for insurers are changing as a result of the new Insurance Supervision Ordinance (ISO) of July 1 2015 and subsequent FINMA circulars. One consequence of this is a FINMA definition of new rules for  the Swiss Solvency Test (SST) from January 2017 and further guidelines. For example:

  • a new model approval process with greater focus on standard models
  • new standard models for reinsurance companies and captives
  • new rules and clarifications for the valuation of assets and liabilities
  • a new concept for risk-absorbing capital instruments
  • new rules for group SST reporting requirements
  • new reporting requirements

Our Services

Our consultants have worked on both sides of the regulatory fence. They have extensive experience of modelling risk for financial institutions and first-hand knowledge of the supervisory environment. At Fintegral we:

  • develop, implement and validate internal SST models in line with the latest circular effective from January 2017
  • assist in securing FINMA approval for all three steps of its new model approval process
  • create, review and improve SST reporting in line with the latest regulatory requirements, including the new circular on public disclosure
  • set up and run new standard models for reinsurers and captives according to FINMA specifications
  • design and conduct Own Risk and Solvency Assessments (ORSA), establish ORSA policies and generate, run, review and improve ORSA reports
  • help establish regulatory-compliant processes for internally rating tied assets

Our Experience

  • development and implementation of a full-blown credit portfolio model for a major Swiss insurance firm
  • enhancement of a credit spread model for a leading insurance company
  • review and validation of various credit risk models for several insurance companies
  • assistance with regulatory SST reporting to FINMA
  • review of risk management practices for the mortgage portfolio of an insurance firm