The 4th Contractual Savings Conference: Supervisory and Regulatory Issues In Private Pensions and Life Insurance

The objective of the conference is to share the results of work which has been supported by the World Bank Group designed to assist countries to develop more effective systems of supervision and facilitate pension system reform and to address problems hampering pensions market development.  The conference will survey market developments and recent academic work and  provide practical policy options.  The conference will be organized in the following way:  

Day 1 - Risk-Based Supervision and Risk Management of Pension Funds

The first day of the conference aims to draw on the experience of a number of countries which have been pioneers of risked-based supervision of pension funds. The countries will provide a range of models covering most types of pension systems, and examples of comprehensive risk measurement systems, and stress testing, solvency, and value at risk models.  All of the models demonstrate a growing emphasis on understanding and measuring risk within pension funds, which will be explored from a practitioners’ perspective.  Countries moving towards risk-based supervision will share their experiences.  Applicability of these models, which had their origins in banking, for pensions systems in emerging economies will be examined.

Day 2 – Development of Annuity markets

The objective of the second day is to highlight the importance of the payout phase when designing pension system reform.  Countries which have developed annuities markets will be examined in order to identify key factors for success and identify problems which inhibit market development.  Sessions will promote discussion among countries that are entering the payout phase and provide a range of policy directions.   

Day 3 – Competition and Consumer Issues

The development of private pensions in a number of countries has been hampered by high fees and poor investment performance which has reduced support for the reforms.  This session will look at recent policy actions aimed at addressing these problems and suggest policy options available to countries with similar problems.  Presentations will examine the impact of price controls, the importance of adequate disclosure, and various means of reducing marketing expenditures and encouraging greater competition between providers of pension and annuity products.  The models adopted by several countries which have developed low-cost pension systems will be studied.