Solvency II

Model misgivings

The insurance-based nature of Danish pension provision means almost the entire sector will fall under the remit of Solvency II. And despite the Danish industry’s groundbreaking work in stochastically modelling its assets, the potential extension of this…

An unhealthy interest

The rise of impaired annuity providers at the start of the decade prompted a migration of the least healthy annuitants away from traditional providers, skewing their mortality assumptions and capital reserves. But as mainstream annuity providers use an…

Open for hedges

India’s insurance sector has long been hamstrung by its inability to use equity derivatives. This is about to change with the country’s insurance regulator set to relax the rules on derivatives. But are India’s insurers ready for synthetic instruments?…

Institutional memory

Ninety-year-old TIAA-Cref is one of the US’s oldest providers of retirement services and came into the financial crisis with experience of past crises galore. But did history help it when the crunch bit, and how will its business model learn from this…

Conservative concerns

The first stage of the Solvency II directive was characterised by a period of political horse trading that resulted in the exclusion of group support and the inclusion of the equity duration principle, to the general consternation of the European…

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