Transcript Current Scenario in Sri Lanka - KAP-Home

Current Scenario in Sri Lanka
Sujeeva Udayasiri Fernando
Janashakthi Insurance PLC
On be half of Actuarial Association of Sri Lanka
10-12-2012
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• Regulatory –Life Insurance
• Assets-Liability matching…(ALM)
– Period up to 2010
– 2010-2012
– 2013+
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Regulatory Journey….(Long term business..)
• From where did we come …
• Where do we stand now…
• ?? Where we are heading…
ALM point of view….
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From where did we come …
• ….2010-ALM
 Assets-(Static…)
• Amortized cost..
• ….
 Liability-(conservative assumptions)
• Net Premium Valuation (Interest, Mortality)
 Solvency –
A> 1.05*L
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• ….2011-Q1-ALM
Assets-(Dynamic..)
• IFRS reporting…
• Market value…
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Liability-(conservative assumptions)
• Net Premium Valuation (Interest,
Mortality)
Solvency –
Silent..??....Interest rate risk…
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Realized..-Interest rate risk…2011-2012
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2011….interest rate –reach to 9%
2012-Feb…Interest rate-reach to 13%
Shocks….to ALM
Why?...
Scarcity of suitable market assets-consistent
with the long term liabilities…
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Where do we stand on…
• 2012-June
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NPV to GPV
Gross Premium Valuation for 2012..
GPV regulations provided
deviate from the RBC… GPV
methods…(IBSL)
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Meeting conclusions IBSL (07-12-2012)
• Assets – MTM
• Liabilities – NPV basis
• Solvency – Existing norms
2012-Q3
RBC road test
–cash flow projections
..(BEL,RM,…)
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?? Where we are heading…
• Dynamic Assets portfolio…
• Static Liability portfolio…
• RBC regime…
To Land….
SOLVENCY II or Extended version of
SOLVENCY II …..!!!! …
Glob zation…
al i
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Thanks
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K.A.Pandit- Consultants and Actuaries
Actuarial Association of Sri Lanka
Industry Colleagues
Janashakthi Family
Mr.Chandra Schaffter..
…….
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