Financial Analysis Peer Review Project

Project Summary

This project is focused on identifying best practices in conducting financial analysis and improving the overall quality of solvency monitoring activities. This discussion-based training is designed to provide a higher level of constructive feedback that is driven by the participating states. Participation in the project is voluntary and includes committing to participating in a preliminary webinar, locally reviewing a total of four assigned analysis files from other participating states, and attending the three day session in Kansas City, MO. During the session in Kansas City, participants will discuss the files with the other attendees to identify best practices, provide feedback on possible improvements and identify ways to improve ongoing monitoring efforts for the companies reviewed. In addition, wrap-up discussions on the last day of the session will discuss how improvements in analysis guidance and training can be made at a national level. To ensure that discussions and takeaways are effectively communicated to NAIC leadership, representatives from the Risk-Focused Surveillance Working Group will attend part of the session (including the wrap-up discussion) as observers.

Objectives

Participating regulators will learn from one another and develop best practices in conducting risk-focused analysis, receive valuable training on how to effectively review and document analysis files and receive feedback from peers on how to enhance monitoring efforts for particular companies on an ongoing basis.

Participants

The participating regulators will be limited to analysts in supervisory roles or other experienced analysts who have the greatest ability to identify best practices and provide feedback for other states as well as implement best practices and improvement suggestions into their ongoing analysis work.

Advance Preparation

·  Participants must have access to TeamMate (NAIC Citrix can be leveraged) and Internet connectivity (to access files via the Citrix server or download TeamMate files from FTP server)

·  Participants must participate in a webinar presented by NAIC staff prior to reviewing files. The webinar will include information related to travel and expenses, expectations for the review process performed prior to the session in Kansas City, and the format of the sessions

·  Participants must make available to other state participants and NAIC staff, a set of analysis workpapers (TeamMate project or scanned images of hardcopy work) via the NAIC Citrix server or FTP transfer

·  Each participant must review the 4 analysis projects assigned to them and document their findings ahead of the session in Kansas City

·  Participants and their Chiefs must understand and agree that participants working on this project will have time to complete their reviews within specified timeframes

Location

All sessions will be located in Kansas City, MO at the NAIC Central Office. Details regarding accommodations, transportation, etc. will be provided once applicants have been selected.

Kansas City Schedule

Monday: Travel day, no planned events

Tuesday – Wednesday: 8:30 – 5:00

Thursday: 8:00 – 12:00, return flights 2:00 or later

Cost

All reasonable costs associated with participation in the project (accommodations, travel, food, etc.) will be covered by the NAIC.

Time Commitment

Participants are expected to spend 30-40 hours reviewing assigned files ahead of the session in Kansas City.

Analysis Peer Review Agenda
Monday
Travel day. No planned events.
Tuesday
8:30 - 9:00 / Introductions and Overview/Break into Teams
9:00 - 9:15 / Break - Move to Team Meeting Rooms
9:15 - 12:00 / Discuss Analysis File #1
12:00-1:00 / Lunch
1:00 - 3:45 / Discuss Analysis File #2
3:45 - 4:00 / Break - Move to Full Group Discussion Room
4:00 - 5:00 / Present Results of Day 1 Reviews to Full Group
6:00 - 7:30 / Meet up for Group Dinner
Wednesday
8:30 - 8:45 / Meet Together and Split into New Teams
8:45 - 11:30 / Discuss Analysis File #3
11:30-12:30 / Lunch
12:30 - 3:15 / Discuss Analysis File #4
3:15 - 3:30 / Break - Move to Full Group Discussion Room
3:30 - 4:30 / Present Results of Day 2 Reviews to Full Group
Thursday
8:00 - 9:30 / Discuss Causes and Potential Solutions for Common Issues Identified
9:30 - 9:45 / Break
9:45 - 11:00 / Discuss Potential Enhancements to Financial Analysis Processes
11:00 - 12:00 / Personal Takeaways - How to Apply What you Learned in Your State