Disclosure of Solvency II's long-term measures benefit risks ‘misinterpretation’

Dual-reporting could confuse investors and undermine confidence in the LTG package, say experts

Insurers have warned that rules mandating public disclosure of the capital benefits of using Solvency II's long-term guarantee (LTG) measures could undermine the legitimacy of these parts of the directive and increase reporting costs.

As part of the agreement on Omnibus II negotiated last Wednesday, insurers taking advantage of tools such as the volatility adjuster and matching adjustment will be made to produce one regulatory report that includes the capital benefit of the measures, and one