solvency 2

Investing in catastrophe bonds is viewed as an attractive investment by some primary insurance companies, with the implementation of Solvency II meaning the assets can have certain capital benefits, depending on an insurers profile.

Solvency II will benefit the reinsurance market through an increase in demand, which is already being seen in longevity risk transfer and also benefit the domiciles or markets which have sought Solvency II equivalence, particularly in commoditised reinsurance lines, according to Fitch Ratings.

According to Fitch Ratings there may be a reinsurance regulatory arbitrage available that could benefit U.S. reinsurers, as cedants in Europe look to offload more of their risks, due to higher capital requirements under Solvency II, while reinsurers outside of the S2 framework could have an advantage.

The longevity risk transfer market, of longevity swap transactions and other reinsurance arrangements that hedge or transfer longevity risk, is particularly busy right now because of impending Solvency II regulation and the resulting capital requirements.

The insurance and reinsurance industry has applauded the decision by the European Commission to find Bermuda and the Bermuda Monetary Authority (BMA) to be fully equivalent under the Solvency II regulatory regime.

The introduction of the impending Solvency II insurance and reinsurance regulatory environment is likely to be a “major development” for the insurance-linked securities (ILS) market, according to a representative of EIOPA.

The completion of French reinsurer SCOR’s latest catastrophe bond deal, Atlas Reinsurance VII Limited, last week was it turns out a first for the market, according to financial law firm Walkers Ireland. Walkers Ireland acted as Irish legal and tax counsel, as well as listing agent for the transaction and it was the first cat […]

Once again the goal posts move in Solvency II world. Just over a week ago we wrote that it was unlikely we’d see implentation of Solvency II before 2015. Now, comments from Carlos Montalvo, Executive Director of the European Insurance and Occupational Pensions Authority (EIOPA) at an event held during the Baden Baden reinsurance meetings […]

A few weeks ago we wrote that the implementation of the Solvency II regulatory rules would be delayed after a new study was called for to look into and better understand the impact of Solvency II on insurers and reinsurers. At that time we had no idea whether the delay would be lengthy but observers […]

European Commissioner Michel Barnier, who is responsible for the implementation of the Solvency II regulatory rules, has proposed to halt the talks discussing the issue until a new study can be undertaken into the impact of Solvency II on insurers and reinsurers. The talks between European member states and the European Parliament appear to have […]