Insurance linked securities to benefit from Solvency II

Share

The CEIOPS report that I wrote about yesterday contains some interesting insight into how the Committee of European Insurance and Occupational Pensions Supervisors sees Solvency II affecting the insurance linked securitization market, they consider the 2012 implementation of the new regulatory framework to be key for ILS.

Not only will Solvency II recognise derivatives and securitisation as effective and viable risk mitigation techniques, it will be much less restrictive than the current Solvency I environment we deal with today. Issuers will need to convince regulators that a true transfer of risk has occurred during the deal.

Specific treatment of ILS under Solvency II is still under discussion but CEIOPS say they can see insurers utilising them much more due to the changes in regulation and how this will affect the capital requirements of the issuer.

Print Friendly, PDF & Email

Artemis Newsletters and Email Alerts

Receive a regular weekly email newsletter update containing all the top news stories, deals and event information

  • This field is for validation purposes and should be left unchanged.

Receive alert notifications by email for every article from Artemis as it gets published.

Read previous post:
CEIOPS publishes report on insurance-linked securitization

CEIOPS, the Committee of European Insurance and Occupational Pensions Supervisors, has published a report on securitization in the insurance sector...

Close