solvency ii

We’ve written a few times about the potential for insurance-linked securities and catastrophe bond type risk transfer transactions to be recognised under the new Solvency II regime as forms of capital relief (find one of our previous articles here). The reduction in risk they offer could be recognised in Solvency II calculations if that received […]

Solvency II is one of the hottest topics in the reinsurance and risk transfer markets at the moment. The impending changes to the regulatory environment could lead to increasingly strenuous capital requirements for re/insurers and a change in the way companies look at risk transfer.

With Solvency II due to come into effect during 2012 re/insurers are assessing the capital requirements specified under the new regulatory regime. One of the main changes under Solvency II will be the requirement for re/insurers to have greater catastrophe reserves in place as part of the capital adequacy requirements.

Press release from Guy Carpenter with extra commentary below it and reference to their study published on GCCapitalIdeas.com:

Aon Benfield has stated in a press release today that the formulas for calculating natural catastrophe capital requirements under the proposed Solvency II Standard Formula are outdated and ignore 15 years of evolution in the field of risk modelling. In response they are offering a suite of services to help re/insurers make the most of […]

This isn’t typically on topic for Artemis however Solvency II is a big issue for the market and being prepared and compliant with the new regulations is going to be on a lot of Artemis’ visitors minds.

A new report has been published by Oliver Wyman and Morgan Stanley looking at how Solvency II regulation and oversight will affect the insurance industry. Solvency II is something we’re following closely as it’s looking likely that it will spur on risk transfer and potentially insurance-linked securities.

The Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) has delivered its final advice documentation on the Solvency II Level 2 Implementing Measures. There’s a lot of documentation to read, some of which will be very relevant to our markets so it’s worth catching up on.

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 […]