Solvency II proposals cause confusion on non-euro extrapolation
A draft of the Solvency II delegated acts circulated informally within the industry suggests the last liquid point for non-euro currencies could shift, making it harder for insurers to hedge long-term liabilities
Inconsistencies in the latest draft of the Solvency II delegated acts threaten to undermine how insurers value their long-term liabilities in currencies other than the euro.
Proposed changes by the European Commission could make it harder for insurers to hedge against movements in the risk-free rate curve used to discount non-euro liabilities.
T he latest draft of the delegated acts, which set some of the detail for Europe's Solvency II insurance regulation and were circulated informally to
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