Connect with us
Subscribe to receive industry insights, news and more by emailSubscribe Here
A summary report of the Operational Resilience session at TINtech London Market 2022, sponsored by WNS.
On February 8th 2022 more than 200 insurance industry executives attended TINtech London Market, the sector’s leading technology strategy event. This report summarises the operational resilience session that was sponsored by WNS and featured ‘on the day’ contributions from Stefan Nadarajan, Chief Operating Officer at Globe Underwriting and James Livett, Associate Director of LIIBA, and Adrian Guttridge, VP of Insurance at WNS. Sadly the pandemic cast its shadow over this session, and Chris Coyne, Chief Operating Officer at Enstar Group was unable to join us on the day, but he was instrumental in putting the session together and some of his views and perspectives are included in this report. Thanks to all of the contributors for their candour’.
Adrian Guttridge at WNS set the context with some opening thoughts on operational resilience (OR), and a quick overview of the current regulatory regime, explaining that three entities: the PRA, the FCA and the Bank of England have come together as ‘Supervising Authorities’, and what that was previously issued as guidance is now compulsory, and London market organisations have until the 31st of March this year to comply. Adrian reminded us that this not “new news” and that there was a discussion paper launched in July 2018 that set out much of what is now expected of organizations around OR, and that therefore by this March, organisations should really have identified their IBSs: Important Business Services.
Adrian went on to explain that you then have to do ‘impact tolerances’ against those IBSs and do scenario testing for each one. The same document states
firms and FMIs would be expected to set an impact tolerance for each of their important business services. The impact tolerance would measure the maximum tolerable level of disruption to an important business service.
That ‘shadow of the pandemic’ was felt again when Adrian explained that because of delays and headwinds due to COVID, the regulators have actually softened the requirements around mapping and testing, and that over the next three years will be a transition period where organisations will need to be constantly checking their tolerances against those rules for IBSs. Helpfully Adrian also clarified that the FCA is looking after insurers
and PRA is looking after Lloyd’s and the managing agents.
Chris Coyne, Chief Operating Officer at Enstar Group, and Stefan Nadarajan, the Chief Operating Officer at Globe Underwriting shared overviews of their approaches to identifying IBSs and quantifying impact tolerances. Chris explained...
To continue reading, click here
Download the report