SAM Pillar 1
Requirements for Solo Insurers and Insurance Groups – Training Manual
The training manual provides a concise high level overview of Pillar 1 of the South African Solvency Assessment and Management framework (SAM) for solo insurers and insurance groups.
The manual starts with a high level overview of SAM, after which it outlines the Pillar 1 roles and responsibilities within a solo insurer. Thereafter it discusses each aspect of the SAM balance sheet for solo insurers, which is used to assess financial soundness. Specifically, it explains how assets, liabilities and capital requirements are calculated. It also contains information on how insurers need to assess their liquidity risk exposure under Pillar 1.
Finally, it gives a brief overview of the Pillar 1 requirements for insurance groups.
What our experts say:
The imminent Twin Peaks regulatory framework introduces significant amendments to current financial services industry supervisory structures and mandates.
Once in force, insurers will need to comply with the Solvency Assessment and Management (SAM) regulatory regime and responsibility for their prudential supervision will reside with the South African Reserve Bank (currently the Financial Services Board).
This training manual provides a concise high level overview of the Pillar 1 requirements of the SAM framework for solo insurers and insurance groups.