STRATEGIES TO MANAGE RISK

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1 JuLY 20-25, 2014 Toronto, Canada REGISTER NOW! Program Overview & Agenda Register on-line at

2 July 20-25, 2014 Location: Toronto, Canada REGISTER NOW! Program Overview Insurance supervisors and pensions supervisors share many common interests and challenges and have important insights to share with each other. The Toronto Centre International Program for Insurance and Pensions Supervisors is a premier forum to learn from leading experts and practitioners, and to discuss experiences and solutions to challenges with other supervisors from around the world. In addition to the joint sessions, we also include sector-specific break-out sessions and case studies, recognizing the specific needs and interests of insurance and pensions supervisors. This year s program will focus on many of the common issues confronting both sectors: how supervisory agencies should define their mandate and organize themselves to operate effectively, how to enhance the agencies risk assessment and response capabilities, and how to develop action plans to tackle the weaknesses that hinder the crafting of appropriate supervisory responses to emerging risks, or even a crisis. An expanded Crisis Simulation Exercise will enhance your readiness to deal with potential failures, providing all participants the opportunity to experience the challenges of assessing risks in a real time crisis environment, facing the demands of differing stakeholders, and adapting to changing financial and operating stresses. The program will address failed governance processes and the consequences of unchecked risks at insurance companies, as well as examine the process of designing, developing and implementing a riskbased supervision framework for private pensions. This program is interactive and, by using case studies, group activities and exercises, participants learn from each other, share experiences and compare practices from around the world. Throughout the week, and putting into practice action planning strategies, stakeholder management and communication tools and strategies, participants will develop resolution strategies for self-identified challenges, to implement once they are back at their home organizations. Program Objectives Upon completion of the 5-day course participants will better understand: How to focus on the important risks: assessment and resolution The importance of early intervention and how this can lead to a stronger supervisory authority, enhanced public confidence, and greater financial stability Key principles in developing and implementing a risk-based pensions supervisory framework The factors that lead to successful private sector pensions systems and the importance of good governance The dynamics of a crisis environment and how to avoid common pitfalls when facing a crisis How to systematically address your challenges and ensure success with key stakeholders Early Bird Deadline April Who should attend? The program is designed for mid-to-senior level staff, managers and board members involved in regulatory and supervisory activities at insurance and pensions supervisory authorities. Participants should have at least 3 years working experience in financial sector supervision, analysis, or policy and planning.

3 JuLY 20-25, 2014 Location: Toronto, Canada Program Agenda 1 2 Sunday, July 20 Networking Tour to Niagara Falls 18:00 21:00 Ice breaker and welcome dinner Monday, July 21 08:15 08:45 Welcome and Opening Remarks Mr. Babak Abbaszadeh, President and CEO, Toronto Centre 08:45 10:00 Session 1: Round table of Participants Participants introduce themselves and provide their objectives for the program Group Photograph 10:00 10:15 Break 10:15 12:30 Session 2: Context for Change Michael Hafeman This session will provide an overview of current issues that can impact the work of insurance and pensions supervisors and regulators. 12:30 13:30 Lunch 13:30 15:00 Session 3: Action Planning Salvador Chang Participants learn about a leadership skill that will help them to deal effectively with specific problems faced by their agencies: Assess the challenge confronting you with options to consider Outline a plan, analyze stakeholders and project implementation 15:00 15:15 Break 15:15 16:30 Session 4: Stakeholder Communication Tom Packwood A session on the approach for persuading stakeholders to support your Action Plans: How to build a burning platform for change Analyze stakeholders who they are, what they like and dislike about your proposal, and what is needed to get their support and overcome resistance Four box model for effective persuasion and communication 16:30 17:00 Action Planning Participants will start applying the action planning methodology with the assistance of program leaders. The first day will focus on understanding the situation and the development of a precise definition of the problem/challenge identified by the participant.

4 3 Tuesday, July 22 08:15 08:30 Ideas I will Use 08:30 10:15 Session 5: Supervisory Agency Mandate Craig Thorburn Establishing a clear mandate for the agency Operational independence Organizing the agency to operate efficiently and effectively Financial resources 10:15 10:30 Break 10:30 12:30 Insurance Track Session 6: Case Study Le Monde Ernesto Rios The session will focus on: Dealing with a company that is pursuing a potentially dangerous course of action, even though it is technically in compliance with statutory requirements Defining a supervisory strategy to deal with a company where the owner is identified as the problem the key importance of corporate governance Dealing with the complexities of group supervision and intra-group transactions 12:30 13:30 Lunch 10:30 12:30 Insurance Track Session 6 (cont d.): Case Study Le Monde 15:00 15:15 Break 15:15 16:30 Insurance Track Session 6 (cont d.): Case Study Le Monde Session 7: Case Study FSCO s Risk Based Supervision Framework Lester Wong The case study will examine the Financial Services Commission of Ontario (FSCO) Risk Based Supervision Framework: The key issues that reinforced the need to develop a risk based supervision framework The challenges faced in implementing a risk based supervision framework Review the phases of the planned approach: - Research and development - Framework design - Program development - Program implementation Session 7 (cont d.): Case Study FSCO s Risk Based Supervision Framework Session 7 (cont d.): Case Study FSCO s Risk Based Supervision Framework 16:30 17:00 Action Planning Participants will continue to work on their Action Plan with the assistance of program leaders. In this session, they should be working on setting the goal and outlining their plan.

5 4 Wednesday, July 23 08:15 08:30 Ideas I will Use 08:30 10:15 Insurance Track Session 8: Session 9: Case Study Sovereign Life The Governance of Pension Funds and Investment John Thompson Performance Implications for Supervisors The impact of legislation changes on the John Ashcroft solvency requirements for insurers and the Factors that drive investment performance of pension funds implications this can have for dealing with The importance of good governance of pension funds troubled insurers The assessment of governance by pensions supervisors and The need for actuarial standards of practice remedies for governance failures for resolving differences of opinion regarding an insurer s financial condition The importance of the matching of liabilities and assets to the financial stability of an insurer 10:15 10:30 Break 10:30 12:30 Insurance Track Session 8 (cont d.): Session 9 (cont d.): Case Study Sovereign Life The Governance of Pension Funds and Investment Performance Implications for Supervisors 12:30 13:30 Lunch 13:30 15:00 Session 10: Crisis Simulation Preparation Financial Analysis Michael Hafeman Financial analyses for insurance and pension funds, focused on issues of particular relevance to the crisis simulation 15:00 15:15 Break 15:15 16:30 Session 10 (cont d.): Crisis Simulation Preparation Working in Teams Michael Hafeman Teams discussion of crisis simulation background materials Teams analysis of financial information of the insurance and pension entities from the crisis simulation 16:30 17:00 Action Planning Participants will continue to work on their Action Plan. In this session participant should finish the details of the plan to address the challenge and/or problem identified, analyze stakeholders and define the communication strategy to gain their support.

6 5 6 Thursday, July 24 08:15 08:30 Ideas I will Use 08:30 12:30 Session 11: Crisis Simulation Exercise Michael Hafeman & Program Leaders as role players Participants will learn from the simulation exercise how to manage problem institutions and the importance of inter-agency cooperation in managing crisis situations. Insurance Supervisors Pensions Supervisors 12:30 13:30 Lunch 13:30 15:00 Session 11 (cont d.): Crisis Simulation Exercise 15:00 15:15 Break 15:15 16:30 Session 11 (cont d.): Debrief Lessons from the simulation 16:30 17:00 Individual Action Plan Participants will finalize their Action Plan material for presentations on Friday. Friday, July 25 08:15 08:30 Ideas I will Use 08:30 10:15 Session 12: Panel Discussion The program leaders will debate current challenges for insurance and pensions supervisors. Questions and comments from participants will form a key component of the discussion. Michael Hafeman Moderator 10:15 10:30 Break 10:30 Action Plan Presentation by Participants Participants will present their Action Plans to the group and receive feedback from program leaders and colleagues 12:30 Closing Ceremony and Certificate Presentation 18:30 Farewell Dinner CN Tower

7 JuLY 20-25, 2014 Location: Toronto, Canada Program Leader Biographies John Ashcroft John Ashcroft is an independent consultant on pensions regulation undertaking work for bodies such as the OECD, the European Union, The Pensions Regulator, EFRP and the World Bank. He specializes in issues relating to the good governance of pension funds and analyses of private pension regulation worldwide. John was a senior official in the UK Pensions Regulator (and its predecessor body) from 2003 to January 2008, including Head of Strategy during the formative period after the Regulator s creation. He was at the same time President of the International Organization of Pension Supervisors from its foundation in By background, John is an accountant with over 20 years experience in the National Audit Office, latterly leading value for money studies of government regulation. Michael Hafeman Michael Hafeman is a director of the Toronto Centre and chairs its Insurance and Pensions Advisory Board. He is an actuary and independent international consultant on financial sector regulation and supervision, focusing on insurance and pensions. He a member of Canada s Auditing and Assurance Standards Oversight Council. He previously worked in the Canadian and U.S. financial sectors, including serving as Assistant Superintendent at the Office of the Superintendent of Financial Institutions Canada, managing partner of the Toronto pension practice of a major consulting firm, and president of a life insurance company. In 2014, he completed nine years of service as a member of the Public Interest Oversight Board, which oversees the public interest activities of the International Federation of Accountants. He holds a B.A. in Mathematics and Economics from the University of Minnesota Duluth and is a Fellow of the Society of Actuaries, a Member of the American Academy of Actuaries, and a Fellow of the Canadian Institute of Actuaries. He was recognized as a Distinguished Fellow by the International Association of Insurance Supervisors in Ernesto Rios Ernesto Rios joined the Superintendencia de Valores y Seguros de Chile (SVS) in Currently he is the Head of the Insurance Regulation Division. Among his responsibilities, he is in charge of studying and developing the regulation of the Chilean insurance market. Ernesto has been the project leader in several strategic initiatives for the SVS. He has extensive experience on risk-based supervision models and capital requirements for the insurance industry. Ernesto is member of the Solvency and Actuarial Issues Subcommittee and the Supervisory Forum of the IAIS (International Association of Insurance Supervisors) and member of the Insurance and Pension Advisory Board of the Toronto Centre. Ernesto is Commercial Engineer from the Universidad de Chile, MBA from IESE, Universidad de Navarra, Spain, and Master of Science in Capital Market, Regulation and Compliance from Henley Business School, University of Reading, UK.

8 John Thompson John Thompson is a retired private consultant and a member of the Board of Directors of State Street Trust Company Canada and former member of the Board of ICICI Bank Canada. He is an actuary with over 24 years experience in senior positions within a life insurance company both in Canada and the UK. Prior to becoming a private consultant he spent 7 years as Deputy Superintendent at the Office of the Superintendent of Financial Institutions in Canada. He also has broad experience at the international level as the former Chair of the Executive Committee of the International Association of Insurance Supervisors and member of the Basel Committee for Banking Supervision. He was formerly the Chairman of the Toronto Centre Insurance Advisory Board. Craig Thorburn Craig Thorburn is a senior insurance specialist at the World Bank where he works with governments and their financial sector supervisory agencies in projects related to the reform and strengthening of regulatory/supervisory systems for insurance companies and private pension plans. Until 2002, he was a senior supervisor of insurance companies and financial groups in Australia after a period as Australian Government Actuary. He is a member of the IAIS Technical Committee and a former chair of the Solvency Subcommittee. His previous experience in the private sector included a number of positions with an insurer and a bank involving actuarial, marketing, administration, strategy and distribution management roles in Australia and New Zealand. Lester Wong Lester Wong is a Senior Actuarial Consultant at the Financial Services Commission of Ontario (FSCO), and works closely with the Chief Actuary in providing advice to the Pension Division at FSCO. Prior to joining FSCO in 2009, Lester had over 22 years experience in the pension industry working with a major pension consulting firm. In that role, he provided expert advice to clients on the design, funding, accounting, investment, and administration of their retirement programs. He has worked with a variety of clients in different industries including private and public sector employers, as well as non-profit organizations. Lester became a Fellow of the Society of Actuaries and a Fellow of the Canadian Institute of Actuaries in He graduated from the University of Toronto in 1987 with high distinction in the double specialty of Actuarial Science and Commerce & Finance.