Solvency II could drive the cost of buyout up 10%

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Posted on 26th August 2015 by Solvency 2 News in Europe |UK

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Employers could have to pay up to 10% more to buy out pension schemes after Solvency II regulations for insurers come in next year, says PwC.sme-save-costs_3392662b

The consultant said the measures, which will require insurers to hold more capital against bulk annuity contracts from January, would affect pricing.

Full buyouts, which cover deferred and pensioner members, are likely to see a much bigger increase than pensioner buy-ins where risks to the insurer are smaller and easier to measure.

Continue Reading “Solvency II could drive the cost of buyout up 10%” at Professional Pensions

A.M. Best Special Report: European Captives Increase Focus on Risk Management and Investments Ahead of Solvency II

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Posted on 17th August 2015 by Solvency 2 News in Europe |UK

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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 real-estate-investmenttheir 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

FCA publishes conduct rules for overseas banks and Solvency II firms

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Posted on 13th August 2015 by Solvency 2 News in Europe |UK

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The FCA has published rules on how it will apply its accountability regime – aimed at improving professional banking standards – to overseas banks and Solvency II firms operating in the UK. Conduct-a-Meeting-Using-Proper-Parliamentary-Procedure-Step-5
Alongside the Prudential Regulation Authority, the Financial Conduct Authority has introduced the finalised rules – which have been in development since 2013 – to address the differences between incoming branches and UK relevant firms.

Martin Wheatley, chief executive at the FCA, said: “Today’s rules are the latest changes aimed at embedding personal accountability in the culture of financial services and are a crucial step in rebuilding public trust.”

Continue Reading “FCA publishes conduct rules for overseas banks and Solvency II firms” at International Advisor

PRA guidance puts down ‘clear marker’ on Solvency II responsibilities

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Posted on 13th August 2015 by Solvency 2 News in Europe

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That’s the view of Michael Ruck, a senior financial services enforcement lawyer at Pinsent Masons. It follows the publication of a series of documents by the Prudential Regulatory Authority (PRA)white on the final rules of the regime.

The aim of the SMIR is to make senior staff including non-executive directors responsible for the conduct of their firms. The PRA’s requirements for insurers were published at the same time as senior managers regime was introduced in the banking sector.

Ruck said: “The regulators’ clear aim is to hold individuals accountable for the failings in areas for which they have taken responsibility.

Continue Reading “PRA guidance puts down ‘clear marker’ on Solvency II responsibilities” at The Actuary

Delta Lloyd troubles grow as capital fears follow regulatory blow

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Posted on 12th August 2015 by Solvency 2 News in Europe

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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, Volvo-Ocean-Race-Stockholm-DSC_1602-Delta-Lloydthe 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

 

PRA sets instructions on reporting and public disclosure under Solvency II

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Posted on 11th August 2015 by Solvency 2 News in Europe

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In a consultation paper, the PRA is seeking feedback on its expectations of how firms should comply with reporting and public disclosure in specific circumstances where supervisory authorities have specified approaches man-talking-with-micsdifferent to those published in the implementing technical standards (ITS). Developed by the European Banking Authority, the ITS were adopted by the European Commission by means of regulation. They aim to implement uniform reporting requirements to ensure fair conditions of competition between firms.

The PRA expects single firms to use the reporting currency and apply the exchange rates used in their financial statements. For group reporting – when the PRA is the group supervisor and where consolidated statements are prepared – the regulator expects firms to use the reporting currency and apply the exchange rates used in their consolidated statements.

The clock is ticking for insurers to get a handle on the new EU data rules

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Posted on 6th August 2015 by Solvency 2 News in Europe

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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.New_Rules_XSmall

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

L&G still paying price for dividend cut during crisis, chief says

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Posted on 5th August 2015 by Solvency 2 News in Europe |UK

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Legal & General is still paying the price for cutting its dividend six years ago, its chief executive said on Wednesday, even after the life assurance and pensions group boosted its payout by a fifth.intro

Nigel Wilson said investors had “long memories” about L&G, which slashed its dividend by half during the depths of the crisis when its shares dropped as low as 23p.

The company has since recovered to become Britain’s third-largest insurer by market capitalisation. Shares rose 2.6 per cent on Wednesday to 270.24p after a bigger-than-expected 19 per cent rise in its interim dividend.

Continue Reading “L&G still paying price for dividend cut during crisis, chief says” at Financial Times

Europe’s ABS Market Boost Hinges on Inducing Insurers to Buy

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Posted on 5th August 2015 by Solvency 2 News in Europe

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Europe’s push to promote asset-backed securities hinges on persuading insurers to buy the debt by easing capital requirements, investors and analysts said.buy-now-inewtechnology-diwli-offers-on-amazon

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

Regulatory demands boost UK insurance sector job vacancies

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Posted on 3rd August 2015 by Solvency 2 News in Europe |UK

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Recruitment firm Robert Walters said vacancies in the sector increased by 14% from 27,030 in January to March to 30,719 between April and June, based on the number of insurance jobs posteddemand online.

Richard Johnson, insurance manager at the recruiter, said the increase in available roles was due to regulatory and compliance demands from the Financial Conduct Authority and the Prudential Regulatory Authority (PRA).

He said: “I would say at least 70% of risk and compliance roles have stemmed from regulatory deadlines and their expectations of insurance companies.”

Continue Reading ” Regulatory demands boost UK insurance sector job vacancies” at The Actuary