![Risk.net](https://www.risk.net/sites/default/files/styles/print_logo/public/2018-09/print-logo.png?itok=1TpHrpuP)
Solvency II an opportunity, says new report
New guidebook to Solvency II outlines benefits for insurers
A new report from Research and Markets argues that Solvency II should be regarded as an opportunity for insurers, rather than another compliance exercise. The report, 'Risk Management for Insurers', by Rene Doff, is styled as a risk management guide to help the insurance industry prepare for the implementation of Solvency II, the regulatory framework for the insurance industry that uses Basel II’s three-pillar structure.
Doff attempts to assure insurers that Solvency II provides incentives for insurance companies to improve their risk management systems and ‘will allow you to benefit from the risk management efforts in the context of supervision’. Bearing in mind the cost-savvy audience and the fact that risk managers will need to sell the implementation costs to the senior management, the report also shows how to integrate risk and value management into the management control framework of insurance companies, by highlighting the evolution of embedded value into market consistent techniques and fair value.
Although Solvency II does present benefits, the message appears to be getting lost on European insurers. Recently, rating agency Standard & Poor’s has noted the steps that some insurers are taking towards implementing enterprise risk management policies in advance of Solvency II, but warns that many firms have not yet fully evaluated the effect the new regulation will have on them as the implementation date is still so far away. The effects of Solvency II will hit those firms in the middle tier particularly hard, since they are the ones who are starting to gain an impression of the cost required to implement or upgrade their risk management systems, and are looking to M&A to find economies of scale.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Risk management
Op risk data: Payday lender Skytrail sees $1.4bn disappear
Also: Cartel claims cost European bond dealers dearly, plus oil price gouging and crypto cover-ups. Data by ORX News
Bankers hope EBA op risk taxonomy will go global
Proposed update to 20-year-old risk map is welcomed, but international co-ordination urged
Marex plots interest rate clearing push
UK broker is live on LCH and plans to be a “day one” clearing member on FMX
Eurex default fund reshuffle leaves members frustrated
Clearing members say concentration margin add-ons would be fairer than buffer on all portfolios
Tired of fat-finger blunders, G-Sibs turn to robots for help
Big banks speed up shift towards control automation and AI adoption to counter costly human errors, Benchmarking survey finds
CME, FICC in talks to expand cross-margining to client accounts
New rules and account structures will be needed to allow cross-margining by non-members
On geopolitical risk, G-Sibs choose their battles
Conflicts – both existing and threatened – raise concern among banks, but many are still grappling to weave the risk into their frameworks
Margin calls jumped threefold as global markets sold off
FCMs claim no client defaults, but episode revives complaints of procyclical margining