FSA’s latest briefing for the insurance sector looks at risk and capital management. FSA wants senior management of insurers to read the briefing, which focuses on current market conditions. It looks at:

  • integration of risk and capital management processes, including how to use and update the ICA;
  • governance, controls and processes to respond to sharp changes in market conditions;
  • valuation of illiquid assets;
  • re-thinking and updating stress and scenario practices; and
  • the effect of widening corporate bond spreads on the valuation of liabilities.