International insurance groups shift focus from efficiency and cost control to client satisfaction, digital and capital management, the latest Mazars findings state.
According to the latest Mazars’ international study on the insurers’ financial reporting practices across Europe, there is a tendency visible in the last three years for the management of large groups to shift the annual reports’ approach from focusing on efficiency and cost control, key elements during the financial crisis, towards client satisfaction, digital and capital management.
The conclusions of the Mazars study “Key Points of the financial communication of insurance groups -2014″ are based on the comparative analysis of the annual reports for 2013 and previous years published by 16 large European insurance and reinsurance groups that issue accounts under IFRS (International Financial Reporting Standards).
Continue Reading “Mazars: Trends in Financial Reporting ” at The Diplomat News
In what have been a busy few months for the European Commission and the European Insurance and Occupational Pensions Authority (EIOPA) in filling in some of the gaps in the Solvency II framework, there have been a number of points which will be of particular interest to those whose role involves the commercial and outsourcing operations of insurers. This is an area in which our practice has particular experience and we have published a practice note focussing on the impact of Solvency II in this area with the broadly used Practical Law resource (click here for a copy of our practice note which is in the process of being updated to reflect recent developments).
We also provide regular training for in-house teams (both legal and commercial) to illustrate the impact of Solvency II on the negotiation of commercial arrangements.
Amongst a range of draft technical standards published by EIOPA (which principally focus on the practical assessment of an insurer’s liabilities), the Commission also published for consultation (in mid-October) a draft Delegated Regulation which aims to make up “the core of the single prudential rulebook for insurance and reinsurance undertakings in the EU”.
Continue Reading “Solvency I I – Outsourcing Update for Insurers ” at Lexology
Bermuda-based Maiden Holdings, a company that provides non-catastrophic specialty property & casualty reinsurance products through a range of subsidiaries, is creating an innovative offering with a blended collateralized reinsurance and debt approach.
Maiden Holdings has begun to look at how it can move beyond being a pure reinsurer and how it can move into the realm of the capital provider or re/insurance financier, with a product that it is targeting at European mid-size insurance companies as the Solvency II regulatory environment approaches.
European insurers may need to boost their capital levels in order to satisfy the Solvency II regime.
Continue Reading “Maiden Targets EU Insurers with Collateralized Reinsurance and Debt Offering” at Artemis News
ACE urged risk managers at multinational European companies to reexamine the capabilities of their global insurance partners as the international regulatory and business environment grows increasingly complex.
The recommendation follows recent ACE research, which suggests that 70 percent of European risk managers have increased their use of captive insurance arrangements over the past three years to help manage their multinational risks.
The report entitled, “Structuring multinational insurance programs – anticipating emerging global challenges for captives,” was released during the European Captive Forum in Luxembourg and is authored by Suresh Krishnan, executive vice president, global accounts, at ACE; Suneeti Kaushal, insurance manager at Ikano Insurance Advisory; and Rémy Massol, director of multinational services for continental Europe, at ACE.
Continue Reading “ACE Report Urges Risk Managers to Reexamine Capabilities of Insurer Partners” at Insurance Journal News
Germany’s life insurers are mostly prepared for tougher European capital rules coming in from 2016 that aim to shield policy holders from future financial crises, financial watchdog Bafin said.
Bafin looked at the country’s 87 life insurers to see how they would hold up if the new rules, known as Solvency II, were already in effect. Insurers will have 16 years to adapt to the rules from January 1, 2016.
Only a few life insurers with a combined market share of less than 1% fell short on capital and Bafin will start talks on corrective measures with them immediately, it said in a statement yesterday.
Continue Reading ” ‘German Insurers Ready for New Capital Rules’ ” at Gulf Times
Norwegian pension fund KLP saw an influx of 150 corporate and 16 local authority pension scheme transfers in the third quarter of this year following the withdrawal of major providers from the public sector pensions market.
In interim results, the public service pensions giant said the transfers, which took place between July and September, represented NOK10.4bn (€1.2bn) of funds, and brought the total new membership inflow this year to 132,000 individuals.
The transfers are a continuing effect of the decisions by Storebrand and DnB Livsforsikring to withdraw from the public occupational pensions market, leaving KLP as the only provider in the sector.
Continue Reading ” Norwegian roundup: KLP, transfers, Finanstilsynet” at IPE News
Solvency II, the European initiative to overhaul the capital adequacy regime of the European insurance industry and create an agreed set of capital and risk management requirements, is scheduled to come into effect on 1 January 2016.
Solvency II will introduce a new regulatory and supervisory framework for Europe’s insurance industry. This framework is divided into three pillars:
• Quantitative Requirements (Capital Requirements);
• Governance & Supervision; and
• Disclosure & Transparency.
The Solvency II Directive 2009/138/EC adopted on 25 November 2009 (“Solvency II Directive”), as amended by the Omnibus II Directive adopted on 11 March 2014 (“Omnibus II Directive” and together with the Solvency II Directive, “Directive”) is applicable to the European Union’s insurance industry.
Continue Reading “Solvency II: Reviewing Bermuda’s regulatory framework” at Royal Gazette
Despite less than 15 months to go until the implementation of the new European insurance regulatory regime Solvency II, many firms have yet to start preparing for their Pillar 3 transparency reporting obligations.
As of 1 January 2016, all EU direct life and non-life insurance and reinsurance undertakings that fall within the scope of Solvency II will have to comply with the new Pillar 3 regulatory reporting requirements, which impose more frequent reporting and increased qualitative disclosure.
The Pillar 3 framework focuses on two main narrative reports, the Solvency and Financial Condition Report (SFCR) and the Regular Supervision Report (RSR), covering both quantitative and qualitative components, and introduces over 60 individual quantitative reporting templates including more than 20,000 data points.
Continue Reading “Solvency II Pillar 3: The biggest challenge for EU insurers” at Finextra News
LONDON — A.M. Best has released a new Best’s Special Report exploring key issues raised by Solvency II, the European Union-wide insurance regulatory regime.
The report, titled “Solvency II Progresses, but Significant Challenges In Store for Insurers,” states that A.M. Best does not expect the new regime, scheduled to come into force 1 January 2016, to have an automatic effect on the ratings of a European insurer, as regulatory solvency calculations do not directly affect underlying solvency.
However, regulatory solvency is an important part of the commercial environment that may affect competitive positions over time, and so A.M. Best expects managements’ reactions to be calibrated with reference to their effect on ratings.
A lengthy phase of regulatory uncertainty looks likely as questions on the implementation of EU directives remain unresolved, according to Carlo Svaluto Moreolo
Sweden’s newly elected left-wing government must deal with a number of politically-charged pension fund regulations and will have to do so with a weak parliamentary majority.
While the restructuring of the AP buffer fund sector dominates the agenda, stakeholders of the private pension industry are debating the fate of Swedish funds ahead of the occupational pensions directive IORP II and the implementation of Solvency II.
In a pre-emptive move at the end of August 2014, the out-going government announced proposals for a new pension framework, which imposes capital requirements that exceed those outlined within IORP II.
Continue Reading ” Pensions In Nordic Region: An unhappy industry” at IPE Investments & Pensions Europe News