Solvency II
WHAT IS THIS? Europe’s Solvency II directive came into effect in 2016, putting risk at the heart of a harmonised prudential framework for insurance firms. Similar in outline to the banking industry’s Basel standards, Pillar 1 sets out quantitative requirements; Pillar 2 tackles risk management and governance; Pillar 3 addresses transparency, reporting and public disclosure.
Raising the standard
The German insurance industry is actively pushing forward the discussion on the standard model within the scope of Solvency II
Clash of the regulators
As the pace of the Solvency II process to reform European insurance supervision quickens, British and French regulators have clashed over the use of market-consistent solvency requirements, to the alarm of proponents of risk-based supervision.
Europe's insurers get used to a stricter regime
Regulators are increasingly bearing down on insurers as the market looks to establish better risk management practices. With the Solvency II proposals being drafted, what are insurance companies doing to make sure they can comply with the stricter…
Getting the solvency balance right
The next few years will witness a radical overhaul of EU solvency insurance regulations underthe banner of the Solvency II project. The proposals will align regulatory capital requirementswith true economic risks, with clear advantages to those players…
Risk management and data "are critical success factors" in insurer ratings, says Moody's
US-based rating agency Moody's says "the quality of data and risk management are growing in importance as success factors" for insurance companies, and as a result it is putting additional emphasis on these areas when reviewing a company, according to a…
Tiner defends insurance margin changes
In a speech today to the Westminster & City Twentieth Anniversary life insurance conference, the Financial Services Authority's John Tiner sought to clarify a letter, released last Friday, that relaxed the solvency regime for UK life assurers.
FSA decision prompts tightening for insurers' credit spreads
The cost of protection for the European insurance sector has tightened by up to 15bp in trading this week following a decision by UK regulator, the Financial Services Authority (FSA), to ease regulatory solvency requirements for individual life assurers.