ICA MODELLING SEMINAR 20TH APRIL 2006 Chairmans Opening Remarks Andrew Hitchcox

ICA WP: BACKGROUND Original TOR were for a Guidance Note: Life Board produced GN46 and GN47 GI emerging practices too varied GN12 being revised: due June 2006 Final outcome was an educational paper: Not guidance, not mandatory A collection of good practices You have a room full of experts here today: this is your chance to ask questions

ARRANGEMENTS FOR TODAYS DISCUSSION Results of the survey: Topics 4 and 5 are: Parameter Uncertainty (and maybe some other issues if we dont run out of time) Q&A: roving mikes As if presenting / discussing the calculations with the Board Timing of sections: Need to be sharp, maybe need to be flexible?

ARRANGEMENTS FOR TODAYS DISCUSSION WP members here as individuals: Their views should not be taken as representing their firms The views of Tony and Stefan should not be taken as being FSA policy Any questions about what the FSA might require will be handled by me

SCOPE OF TODAYS DISCUSSION Included: Data issues Modelling issues Reporting the results Embedding: using the ICA in the firm Communication of results Excluded: Solvency II Wider economic modelling At the end, we will announce the next steps for the WP