Allianz CRO: Industry and regulators 'in denial' over solvency levels
Allianz's Tom Wilson warns liquidity premium in discount rates is disguising effect of current market turmoil on life insurance balance sheets
European life insurers and their regulators are "in denial" over the impact of current market turmoil on firms' Solvency II-consistent balance sheets, according to Tom Wilson, chief risk officer (CRO) of Allianz. They would be facing 2008-style hits if not for the use of a liquidity premium in discount rates, which is reducing liability values.
Speaking on the sidelines of Life & Pension Risk's Solvency II conference in London, Wilson said market volatility witnessed over the past couple of
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