Solvency II
WHAT IS THIS? Europe’s Solvency II directive came into effect in 2016, putting risk at the heart of a harmonised prudential framework for insurance firms. Similar in outline to the banking industry’s Basel standards, Pillar 1 sets out quantitative requirements; Pillar 2 tackles risk management and governance; Pillar 3 addresses transparency, reporting and public disclosure.
Solvency II standard formula not serving intended purpose - Swiss Re CRO
Raj Singh tells Life & Pension Risk's annual Solvency II conference in London that Europe should opt for a Swiss-style approach
US equivalence "impossible" in forseeable future - Allianz CRO
CRO says lack of market consistency will prevent regime being granted equivalent status under Solvency II - and this will lead to European companies being disadvantaged
Solvency II equivalency: time to end the phoney war
End the phoney war
Potential back-door route to Solvency II equivalence for US insurers
EC outlines potential route for US insurance regulatory regime being granted equivalent status to Solvency II
Modelling the asset portfolio for Solvency II
Asset to the system
Structural changes behind rise in long-dated skew, say dealers
Reduction in risk appetite and regulatory crackdown causing increase in long-dated skew, say equity derivatives dealers
Solvency II: op risk standard approach capital too high under QIS5, says UK insurer
Questions remain on the calibration of capital requirements for operational risk under Solvency II's standard formula.
Validating interest rate models under Solvency II
With Solvency II fast approaching, obtaining approval for your internal model is increasingly important. A key part of this process will be to demonstrate the ability of the model’s scenario generation to describe the evolution of interest rates…
Morrison & Foerster expands capital markets business with hire of Elana Hahn
Elana Hahn joins Morrison & Foerster's capital markets group in a role that involves guiding clients through regulatory changes.
Lack of credit for dynamic hedging in QIS 5 driven by ideology, not economics
Old Mutual questions the lack of capital credit for dynamic hedging in QIS 5
Dynamic future for post-Solvency II asset allocation
Solvency II is set to dramatically overhaul insurers’ approach to asset allocation – with potentially dramatic consequences for the bond markets. Aaron Woolner reports
Insurers prepare for M&A explosion
A number of drivers could push financial groups to dispose of life insurance assets in the near future. But a boom in M&A will also need buyers, which could prove difficult to find. By John Ferry
Mexico and Brazil on the road to risk-based regulation
Latin American economic powerhouses Brazil and Mexico are introducing new solvency regulations in their fast-growing insurance markets. But while Mexico has gone straight for a Solvency II-type approach, Brazil is emphasising gradualism and will not make…
Understanding the liquidity premium
The liquidity premium has moved from theory to practical reality, first in the market-consistent embedded value metric and then the Solvency II directive. Barrie & Hibbert’s Craig Turnbull explains the theory behind the liquidity premium and how to…
Selvaggi leaves Oric for Qatar Financial Centre
Oric head leaves London for a role at the Qatar Financial Centre Regulatory Authority
IASB includes liquidity premium in new insurance accounting proposals
Exposure draft brings convergence with Solvency II but stops short of full market consistency
Solvency II “not as comprehensive as US regulation” says New York insurance chief
Lack of Federal oversight should not be obstacle to equivalence, says key state regulator
QIS 5 makes its mark
European insurers are gearing up to take part in Solvency II’s latest and final quantitative impact study. John Ferry assesses what the latest proposals suggest about the impact of the new regime
Raj Singh interview: lesson for the future
The credit crisis has impacted the whole reinsurance sector, but, according to Raj Singh, chief risk officer at Swiss Re, at least it has taught the industry useful lessons for the future. Sarfraz Thind reports
QIS 5 specifications add complexity
Insurers face greater complexity under EC's final QIS 5 specifications
Risk-based supervision the ‘focus’ of equivalence criteria, says EC
Third-couuntry equivalence assessments should focus on whether regimes are risk-based
Loss leaders
Operational risk is potentially the biggest risk faced by insurers – and also one of the most difficult to model. However, as a number of loss data aggregation initiatives globally either emerge or mature, insurers are better placed to quantify their op…