SUCCESS EXPERIENCES
Some of our success experiences
Successful implementation of Internal Control and Risk Management systems
Development of a methodology and computer tool to carry out the Own Risks and Solvency Assessment
Technical and actuarial support in a compensations system after disaster in developing countries (Rana Plaza collapse)
On April 24 2013 occurred the collapse of Rana Plaza building, at Savar, close to Dhaka, the capital of Bangladesh. At least 1,127 people deceased while 2,437 were injured. The building contained several factories that produced clothes for at least 28 brands. One of those brands was a supplier for Primark.
The necessity of compensating the injured and deceased workers, applying for that an actuarial calculation system adjusted to the international best practices made that Primark, one of the main European retail companies affected by the disaster, considered the necessity to carry out a calculation of the compensations to pay to injured or deceased workers, which incurred on The Savar Project; an actuarial model to manage the crisis emerged after the collapse of Rana Plaza productive center.
The challenge was enormous as we found a country where it is not easy to locate and manage the possible beneficiaries, where there is no financial nor insurance system as we normally know it, where there are no clear mortality and surveillance statistics, no injury valuation regulations, where rules have limited capacities, religions and traditions are significantly different into the country, which prevents a compensation distribution via standard methods, and where those compensations may generate huge tensions and situations of victims vulnerability. All of that made a challenge to look for an effective compensations system, which surpassed the technical framework.
IDEAS actively participated in the elaboration of this adequate model, innovating in a methodology that allowed to calculate, on one side, the amount of the compensations for the families of the deceased workers and the distribution between them, taking into account the different religions and consequently the different applicable regulations in Bangladesh. One the other hand, it was also calculated the amount of the compensations for injured workers, based on an adaptation of the Spanish Accidents Insurance Scale.
A further explanation of the approach of The Savar Project is detailed on the attached PDF.
The consequence of the approach is that several years later, all beneficiaries have received their compensations and the model has been debated with UN, ILO and some other international organisms. Also, we do believe it has become a paradigm to be used at the payment of compensations in non developed countries. IDEAS has contributed their bit to fulfil a better world, why we would like to thank ABF-Primark and Mr. Javier Chercoles as manager of the project, the chance they gave us to actively collaborate in this successful project.
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The necessity of compensating the injured and deceased workers, applying for that an actuarial calculation system adjusted to the international best practices made that Primark, one of the main European retail companies affected by the disaster, considered the necessity to carry out a calculation of the compensations to pay to injured or deceased workers, which incurred on The Savar Project; an actuarial model to manage the crisis emerged after the collapse of Rana Plaza productive center.
The challenge was enormous as we found a country where it is not easy to locate and manage the possible beneficiaries, where there is no financial nor insurance system as we normally know it, where there are no clear mortality and surveillance statistics, no injury valuation regulations, where rules have limited capacities, religions and traditions are significantly different into the country, which prevents a compensation distribution via standard methods, and where those compensations may generate huge tensions and situations of victims vulnerability. All of that made a challenge to look for an effective compensations system, which surpassed the technical framework.
IDEAS actively participated in the elaboration of this adequate model, innovating in a methodology that allowed to calculate, on one side, the amount of the compensations for the families of the deceased workers and the distribution between them, taking into account the different religions and consequently the different applicable regulations in Bangladesh. One the other hand, it was also calculated the amount of the compensations for injured workers, based on an adaptation of the Spanish Accidents Insurance Scale.
A further explanation of the approach of The Savar Project is detailed on the attached PDF.
The consequence of the approach is that several years later, all beneficiaries have received their compensations and the model has been debated with UN, ILO and some other international organisms. Also, we do believe it has become a paradigm to be used at the payment of compensations in non developed countries. IDEAS has contributed their bit to fulfil a better world, why we would like to thank ABF-Primark and Mr. Javier Chercoles as manager of the project, the chance they gave us to actively collaborate in this successful project.
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Coordination of the sector team work for the development of the Solvency regulation at Funeral Insurance
Funeral insurance had no easy fitting in Solvency II scene, specially due to:
Finally, it was determined that the best way to formulate Funeral Insurance regarding technical provisions and capital requirements needed to be by the consideration of FMA's (future management actions), which Funeral Insurance companies have demonstrated to have and which have been continuously applied in their management.
These capacities have been sum up in the possibility of applying future premiums with a higher value than those considered in the calculation of the best estimate of the technical provisions. Consequently, certain development and simplification legislative initiatives have been possible, as they are needed to allow the normalised contemplation of a part of the mentioned evidenced future management actions. The rest of external requirements and calculation specifications, both with regard to the economic balance sheet and the capital requirement non affected by the FMA's, are the same used for the rest of insurance sector.
- The Best Estimate of technical provisions turned out being very volatile.
- Standard Formula gave very high SCR results.
- Risk Margin resulted too high as well.
Finally, it was determined that the best way to formulate Funeral Insurance regarding technical provisions and capital requirements needed to be by the consideration of FMA's (future management actions), which Funeral Insurance companies have demonstrated to have and which have been continuously applied in their management.
These capacities have been sum up in the possibility of applying future premiums with a higher value than those considered in the calculation of the best estimate of the technical provisions. Consequently, certain development and simplification legislative initiatives have been possible, as they are needed to allow the normalised contemplation of a part of the mentioned evidenced future management actions. The rest of external requirements and calculation specifications, both with regard to the economic balance sheet and the capital requirement non affected by the FMA's, are the same used for the rest of insurance sector.
Successful advice experiences in transactions in insurance sector
IDEAS has participated as financial advisor in different corporate transactions, most of them within insurance sector.
Below, as an example, there are listed some public corporate operations that we have successfully closed at insurance sector:
Strategy alliances
Some bank-assurance agreements
Some assignments of insurance portfolios
Some acquisitions or mergers
Some operations in the insurance mediation sector
Below, as an example, there are listed some public corporate operations that we have successfully closed at insurance sector:
Strategy alliances
- Advice in the strategic alliance between FIDELIDADE and SANTALUCIA, for the development of the funeral insurance in Portugal.
- Advice in the strategic alliance between PREVENTIVA and PLAN VALORE for the development of REINICIA insurance, which is destined to cover the debt after a mortgage foreclosure.
- Advice in the strategic alliance of ASISA and ALMUDENA for the development of funeral insurance.
- Several other strategic alliances between entities.
Some bank-assurance agreements
- Advice to CASER in some of their agreements of bank.assurance: SA NOSTRA, UNICAJA, CEISS, etc.
- Advice to REALE at various bank-assurance operations: CAIXA TERRASSA, CIXA SABADELL, CAJA NAVARRA, CAJA GRANADA, CAI.
- Advice at numerous other bank-assurance agreements.
Some assignments of insurance portfolios
- Advice in the cession of the portfolio from CAHISPA to ALMUDENA SEGUROS and GES SEGUROS.
- Advice at portfolio portfolio of social security mutual funds cession process as in the case of SOCIEDAD FILANTRÓPICA MERCANTIL MATRITENSE, MUTUALIDAD DE PREVISIÓN SOCIA A PRIMA FIJA.
- Advice in the FEDERACION MEDICA S.A. portfolio cession process to ASSSA.
- Advice in the PARAISO UNIVERSAL. portfolio cession process to AURA SEGURO.
- Advice in the ASMEQUIVA. portfolio cession process to DIVINA PASTORA.
- Advice in the NATIONAL SUISSE portfolio cession process to ASEFA.
- Advice at other numerous portfolio cession operations.
Some acquisitions or mergers
- Advice in the SABADELL ASEGURADORA sale to ASEFA.
- Advice in the merger process from MFC to REALE.
- Advice in the merger process between Assurance du Crédit Mutuale and AGRUPACION MUTUA.
- Other various acquisitions operations, mergers or disinvestment process advices.
Some operations in the insurance mediation sector
- Advice in the disinvestment process of the insurance brokerage MILLAN Y PABLOS, CORREDURIA DE SEGUROS S.L.
- Advice to the RACC brokerage transformation process.
- Advice in the brokerage ASEGURACE S.A. COREDURIA disinvestment process.
- Advice in the disinvestment process of OMINBROKERS CORREDURIA DE SEGUROS S.L.
- Other advices related with insurance agencies and brokerage.
Successful participation as qualified specialists in important disputes and litigation
DEAS has participated as independent external expert in different judicial litigations, mainly within insurance sector. The scope of our advice covers:
Below there are listed, as an example, some public cases where IDEAS has successfully participated within insurance sector.
- Request and analysis of the documentation needed to issue the corresponding expert report.
- Economic valuations of insurance portfolios
- Draft and issue of expert reports.
- Ratification of the report at judicial process.
Below there are listed, as an example, some public cases where IDEAS has successfully participated within insurance sector.
- Advice to SANTALUCIA as experts at multitude of judicial processes regarding lawsuits at Life and Non Life claims.
- Advice as external experts in different judicial processes regarding the valuation of insurance portfolios at funeral insurance, in LA FE, SANTALUCIA, OCASO etc.
- Advice as independent experts in the valuation of insurance companies in the framework of corporative operations and agreements of bancassurance, having performed valuations for different companies in the sector, such as REALE, CASER, ACM-RACC , SA NOSTRA, UNICAJA, AGRUPACIÓN SANITARIA Y DE SEGUROS, ASEFA, SANTALUCIA, DIVINA PASTORA, GES, ALMUDENA, etc.
- Advice to CASER as experts in judicial processes regarding lawsuit for damages suffered by insurance entities due to restrictive competence acts, sanctioned by a resolution of the National Competence Body (Consejo de la Comisión Nacional de la Competencia
- Advice to CASER as experts in judicial processes regarding lawsuit for damages suffered by insurance entities due to restrictive competence acts, sanctioned by a resolution of the National Competence Body (Consejo de la Comisión Nacional de la Competencia)
- Advice to CASER as proficient in a judicial process of labor nature of NOVACAIXAGALICIA related to the claim of certain amounts for remuneration capacity.
- Advice to SANTALUCIA as an independent expert in a judicial process in the valuation of damages in a dispute related with misleading advertising.
- Advice to SANTALUCIA as an independent expert in a judicial process in the valuation of damages in a dispute related with the funeral sector.
- Some other qualified actions as independent experts.
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