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Life After Whole LifeRBC: + Endowment ‘Combo’ Product design Impacts and Opportunities Life Insurance Forum 2012 1st Anniversary Thai RBC - Role of Capital 30 November 2012

www.inglife.co.th

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Product Management

Role of RBC Business Environment

Professionalism 30 November 2012

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Life After RBC: Impacts Before 1

Few actuarial staff

30 November 2012

After Sizable actuarial/risk team

Role of RBC Business Environment

Professionalism 30 November 2012

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Life After RBC: Impacts Before 1

2

Few actuarial staff

PCs (or calculators?)

30 November 2012

After Sizable valuation team

Powerful PCs

Life After RBC: Impacts Before 1

Few actuarial staff

After Sizable valuation team

2

PCs (or calculators?)

Powerful PCs

3

Excel based calculation

Actuarial software

30 November 2012

Life After RBC: Impacts Before 1

Few actuarial staff

After Sizable valuation team

2

PCs (or calculators?)

Powerful PCs

3

Excel based calculation

Actuarial software

4

Explicit Insurance risk

Insurance, Market, ALM mismatch and Credit risks

30 November 2012

Role of RBC Business Environment

Professionalism 30 November 2012

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Life After RBC: Impacts Before 5

Rely on Rule based solvency positioning report

30 November 2012

After Risk based

Life After RBC: Impacts Before

After

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Rely on Rule based solvency positioning report

Risk based

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Rely on liability only cash flow

Both asset and liability cashflows Duration

30 November 2012

Life After RBC: Impacts Before

After

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Rely on Rule based solvency positioning report

Risk based

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Rely on liability only cash flow

Both asset and liability cashflows Duration

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Traditional pricing approach

30 November 2012

Market consistent pricing approach

Role of RBC Business Environment

Professionalism 30 November 2012

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Life After RBC: Impacts After Before

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Hold capital based on company risk profile

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Understand more on own risk appetite

•

Auditors get involve in the process

Solely rely on Reserve level

Actuarial communication Disclosure Transparent

30 November 2012

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Life After RBC: Impacts What have been done?

1st Sep 2011

Implementation of RBC

30 November 2012

Life After RBC: Impacts What have been done?

1st Sep 2011

Q3 2011

Implementation of RBC

30 November 2012

1st RBC report AUP

Life After RBC: Impacts What have been done?

1st Sep 2011

Implementation of RBC

30 November 2012

Q4 2011

Q3 2011

Q2 2012

1st RBC report

1st GPV report

AUP

1st Annual review

Life After RBC: Impacts What have been done?

1st Sep 2011

Implementation of RBC

Q4 2011

Q3 2011

1st RBC report

1st GPV report

AUP

1st Annual review

CAR: 125%

30 November 2012

Q2 2012

1st Jan 2013

READY?

CAR: 140%

Role of RBC Business Environment

Professionalism 30 November 2012

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Life After RBC: Opportunities Solvency position

• Frequent monitoring • Regular update of assumptions • Strengthen company solvency position

Skill and Knowledge

• Understand both Asset and Liability sides • Improve in Modeling skill • Improve in Analytical skill

Model improvement

• CV floor and Reinsurance • Policy loan model

30 November 2012

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Life After RBC: Opportunities

30 November 2012

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Life After RBC: Impacts and Opportunities

Today is November 30th

30 November 2012

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Life After RBC: Impacts and Opportunities

Thank you

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