For an insurance company, ensuring the proper coordination between assets and liabilities in order to achieve targeted financial objectives is of paramount interest. A strategy used to reach such objectives is "asset and liability management" (ALM in short). ALM can therefore be viewed as any ongoing process that defines, implements, and monitors financial strategies to manage assets and liabilities together.
In recent years, the modelling tools used in ALM strategies have become increasingly sophisticated and the technical aspects of current insurance regulation have increased. As a result, some ALM aspects have become more and more difficult to understand and master.
The aim of this training is to:
- Define what ALM is and describe the typical missions of an ALM department in an insurance company
- Present the financial risks on which ALM classically focus as well as the requirements of the Solvency II regulation for insurance companies
- Describe the essential quantitative ALM tools and methods used by insurance companies to evaluate and mitigate the risks
- Illustrate the different concepts through numerical examples and case studies to make it practical and not just theoretical
This ALM training starts with a first part (bookable separately) primarily an introduction to main concepts of ALM and is therefore particularly suited for participants coming from different departments (for instance, people dealing with own risk solvency assessment techniques or enterprise risk management) and wanting to develop a broader view on what ALM is and how it works. It is also well suited for newcomers or people wanting to refresh their mind on these concepts. Note that the training is not limited to people working in ALM or treasury departments but is also adapted to other departments.
This second part is more advanced and intended for those wishing to gain more in-depth expertise on the topics. It includes some mathematical technicity, but nothing that goes further than a solid high school level.