The Internal Model Industry Forum (IMIF)
In 2014 IRM established an industry forum to address the key questions and challenges that insurers face with the use and validation of internal risk models and to work in a collaborative way to develop good practice to ensure that these models add value to the organisation. From 2020 the activities of the forum have been incorporated into our ERM in Insurance Special Interest Group to reflect the fact that internal models are now part of the business-as-usual risk and capital management activities of many insurers.
Under the Solvency II regulatory framework, an insurer’s internal risk model is at the heart of its risk and capital evaluation and will therefore be a key input to a wide range of business and strategic decisions. The validation process for these internal models is also critical if the model is to be considered credible by business decision makers.
However, according to the UK Prudential Regulation Authority (PRA) and recent surveys, while insurance companies are generally producing a lot of good evidence to support the validation of models, there are a number of outstanding questions about how to embed these internal models in the company’s decision making, get the right visibility at board level and build trust in models through a well-focused/cost-effective validation framework.
The Internal Model Industry Forum (IMIF) has been set up to tackle these questions and produce an industry view of the current level of maturity and best practices around the use and validation of internal models.
Co-ordinated by IRM, the IMIF includes senior risk and capital professionals (CROs, head of risks, head of model validation or capital) as well as other relevant stakeholders including the PRA, other industry associations and the key consultancy firms.
The Forum was founded in 2014 by Jose Morago during his time as IRM Chairman. It is now led by Phil Whittingham, Head of Model Validation and Risk Governance at XL Catlin. Phil can be contacted at firstname.lastname@example.org
Membership of the Forum is open to anyone working in the field of risk modelling for insurers. You do not have to be member of IRM. If you would like to join the Forum or you have any other questions then please contact IRM's Director of Corporate Relations Carolyn Williams:
+44 (0)20 7709 9808
IRM would like to thank the following for their support with this work:
Not an IRM member?
The Journey from Validation to Model Risk Management
From Brussels to Basel: Internal models in the Insurance Capital Standard and implications for the UK
We are pleased to have worked with RiskMinds to bring you an interactive webinar with Jose Morago and workstream leads from the IMIF on the subject of Creating Value through Internal Models. If you haven't previously registered for the event, you will need to do so to be able to watch the webinar. You can do this on the link provided below.
Date: March 2015
Duration: 45 minutes