We designed an innovative training programme to improve the ability of 200 insurance business leaders (C-level) to assess risk.
Nyenrode Business University, a Dutch business school, wanted to help insurance business leaders assess risk accurately in a highly uncertain economic climate – the Solvency II directive for European insurers meant it was vital the industry’s leaders understood the impact of their business decisions on risk, capital and long-term performance.
The University asked PA to develop a custom-made programme to address this challenge. Our HR experts know that game-playing produces better results than other forms of training: learners retain 90% of what is taught, rather than 20% as they do with traditional methods. So we designed a programme with our Solvency II game, built around expertise from our insurance specialists, at its heart. The game shows how core business decisions
on acceptance or claims-handling policy, product development, product-portfolio management and pricing structures all have a direct bearing on the management of risk and capital. PA’s work enabled Nyenrode to offer a highly effective Solvency II programme, which has since been completed by over 200 leaders in insurance. Leaders return their organisations better able to manage risk and better equipped to contribute to profitability
and long-term performance.
The PA Solvency Game is a collaborative game. The participants act as the Executive Board of an insurance company and have to fulfil different roles (CEO, CFO, Chief Commercial Officer, etc.) over a period of 25 years. They receive information concerning the outside world (events, news, market information) and need to make decisions in order to manage their insurance company to greater performance. A realtime dashboard supports the decisionmaking process with details regarding their performance as well as the performance of the competition. Usually the game is played with 3 to 4 teams to add an additional competitive element and boost energy in the room. There are several reflection moments to evaluate the learnings together with the participants
1) The Game aims to improve the regulatory awareness throughout insurance sector, for regulatory changes: The game has been played by a large group of executives in the Dutch insurance sector; 200 CEO´s, CFO´s, Directors and members of Supervisory Board. And over 500 people in the insurance industry. It has become part of the Permanent Education program to improve quality of the leaders in the industry. And the game has been used to train high potentials in the industry. The Game got consistant maximum scores from the participants 2) The Game makes complicated / boring topics fun: The regulatory framework Solvency II is perceived as complex, for financials only and boring to non-quants. However, the game succeeds in letting other functions experience the impact of the framework on their day2day decisions. The discussions create a high level of energy during the game. Feedback we have got is that participants are surprised to see Solvency II can be fun. 3) The Game creates a steep learning curve at all levels in the organization: The discussions, evaluation and reflections let knowledge flow freely between participants. After the game participants understand the overarching dynamics and how they can influence it with their day2day decisions. Whether participants are directors or product managers, Solvency II experts or are unaware of it, the game contributes to a better understanding.