LONDON–(BUSINESS WIRE)–Many European captives have embraced Solvency II’s increased regulatory requirements as an opportunity to focus more closely on risk management and refine their investment strategies. For the most part, captives are not treating the regulations as merely a box-ticking exercise. A new report from A.M. Best notes that the European captives it rates are using the information they have gathered to meet Solvency II’s qualitative and reporting requirements as an opportunity to also review their business models.
Initially, it appeared that captive owners viewed the Solvency II requirements as an onerous burden due to the cost issues. In its new report, titled, “European Captives Increase Focus on Risk Management and Investments Ahead of Solvency II,” A.M.
Continue Reading “A.M. Best Special Report: European Captives Increase Focus on Risk Management and Investments Ahead of Solvency II” at Business Wire
AMSTERDAM, Aug 12 (Reuters) – Shares in Delta Lloyd fell sharply again on Wednesday because of worries the third largest Dutch insurer may need to raise capital for the second time this year, the latest in a rapid series of setbacks.
Delta Lloyd shares were down 8 percent by 1335 GMT and have lost more than a quarter of their value over the past two sessions since the insurer surprised the market with far worse-than-expected guidance on its solvency ratio.
The ratio miss came hard on the heels of the resignation of the company’s chief financial officer and chairman on Aug. 3, following a clash with regulators over the fallout from an ethics case dating back to 2012.
Continue Reading “Delta Lloyd troubles grow as capital fears follow regulatory blow” at Reuters News
In January 2016 the new insurance industry regulatory regime will establish EU-wide capital requirements and risk management standards designed to increase policyholder protection. By requiring insurers to hold enough capital to absorb significant losses, the rules aim to reduce the possibility of consumer loss or disruption in the event of a large-scale meltdown.
Comprised of three key ‘Pillars’ — Financial Requirements to ensure adequate liquidity; Governance & Supervision to improve risk management; and Reporting & Disclosure to improve transparency of market risks –
Solvency II compels insurers to undertake a serious re-think of their business processes. Pillar Three however comes with technical complexities that could make it the trickiest to resolve.
Continue Reading “The clock is ticking for insurers to get a handle on the new EU data rules” at Information Age
Europe’s push to promote asset-backed securities hinges on persuading insurers to buy the debt by easing capital requirements, investors and analysts said.
European Union and global regulators recently proposed criteria for identifying simple and transparent securitizations that could qualify for preferential regulatory treatment. While the EU insurance law known as Solvency II already offers capital relief for “high-quality” securitizations, investors say it’s not enough.
It’s now up to Jonathan Hill, the EU’s financial-services policy chief, to decide how far to lower capital charges on simple and transparent asset-backed debt.
Continue Reading “Europe’s ABS Market Boost Hinges on Inducing Insurers to Buy” at Bloomberg Business