solvency ii

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.

As the new European regulatory standards’ adoption moves ever closer, with Solvency II regulation set for January 1st 2016, S&P has said that it should result in higher reinsurance demand, which could mean more opportunity for insurance-linked securities (ILS).

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.

According to the results of a survey released today more life insurance companies are buying reinsurance protection, with Solvency II suspected a key driver of sales, but it has not yet resulted in increased issuance of life insurance-linked securities (ILS) or mortality catastrophe bonds.

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 […]

There were some more interesting comments made at the Baden Baden kick-off event held by Guy Carpenter on Sunday. The event featured a number of key industry figures discussing volatility as a concept affecting reinsurers and whether volatility should be looked on as a threat or an opportunity. One of the participants was Carlos Montalvo, […]