Regulator’s staffing problems could jeopardise Solvency II’

0 comments

Posted on 19th June 2015 by Solvency 2 News in Europe |UK

, , , , , , , , , , , , ,

Staffing problems at the PRA could hinder the implementation of Solvency II, according to the regulator’s strategy for 2015/16.Staffing+&+Recruiting

The regulator has said the implementation of the directive in 2016 will be one of its main focuses over the course of the year.

Andrew Bailey, chief executive of the PRA, said the introduction of Solvency II is the single biggest change in insurance supervision for a generation.

But the PRA Strategic Report for 2015/16 said this could be under threat if the regulator failed to attract talented staff, which it said was a risk to the delivery of its plans.

Continue Reading “Regulator’s staffing problems could jeopardise Solvency II’” at FT Adviser

PRA issues templates instructions for Solvency II

0 comments

Posted on 18th June 2015 by Solvency 2 News in Europe |UK

, , , , , , , , , , , , , , , , , , ,

The Prudential Regulatory Authority (PRA) has published templates for firms using an internal or partial internal model to calculate solvency capital requirement.k10543537
In a statement Solvency II: regulatory reporting, internal model outputs, the PRA explains the templates capture relevant information such as risk drivers and lines of business to enable the PRA to monitor internal models.
The authority said the templates should be submitted at the same time firms submit their annual quantitative reporting template.

PRA issues supervisory statement on Solvency II reporting and internal model outputs

0 comments

Posted on 15th June 2015 by Solvency 2 News in Europe |UK

, , , , , , , , , , , , ,

The UK’s Prudential Regulation Authority (PRA) has issued a supervisory statement on reporting requirements and internal model inputs under Solvency II. The PRA says firms using an 1744-9081-2-29-7-lapproved internal or partial internal model to calculate their SCR should report the internal model outputs using the relevant templates provided by the PRA.

The templates capture selected percentiles of the probability distributions for specified variables (for example, risk drivers and lines of business) as well as some information (such as correlation factors) relevant for the PRA to monitor internal models.

The templates are available from the PRA. According to the PRA the templates should be submitted at the same time firms submit their annual quantitative reporting template in accordance with the rules for deadlines set out in ‘PRA Rulebook Solvency II Firms: Reporting Instrument 2015 (PRA 2015/23)’.

Continue Reading “PRA issues supervisory statement on Solvency II reporting and internal model outputs” at FTSE Global Markets

Surprises over European Commission’s Solvency II country decisions

0 comments

Posted on 12th June 2015 by Solvency 2 News in Bermuda |Brazil |Canada |Europe |Mexico |USA

, , , , , , , , , , , , , , , , , , , , , ,

The European Commission has published its first Solvency II third-country equivalence decisions, and they include a few surprises, says Chris Finney of Cooleys.surprise

The Commission has decided that Switzerland is Solvency II equivalent on all three bases – ie for group capital calculation purposes, for group supervisory purposes, and for reinsurance purposes. There’s no surprise here. These decisions will now be considered by the European Parliament and Council. And, if the Parliament and Council are content – which seems likely – the Swiss equivalence decisions will be made, published in the Official Journal of the European Union, and final.

Group capital purposes 

The Commission has also decided that Australia, Bermuda, Brazil, Canada, Mexico and the USA are Solvency II equivalent, for group capital purposes (only); on a 10 year renewable basis (only) and, in the case of Bermuda, only in respect of commercial insurers, not captives. This is a little surprising…

Continue Reading “Surprises over European Commission’s Solvency II country decisions” at The Global Legal Post

Capital Market Union: advantages and challenges

0 comments

Posted on 9th June 2015 by Solvency 2 News in Europe

, , , , , , , ,

The Commission suggested further actions in creating EU’s capital market, which President Juncker regarded as one of the Commission’s top priorities. The Commission has identified three 283most important CMU’s themes: increasing funding options for business, creating more opportunities for investors, and encouraging cross border investment. The Commission intends to publish an Action Plan in September 2015.

EU member states’ governments and citizens are of a general agreement about the perspectives of the Capital Markets Union, CMU. They want the Commission to make quick progress in such spheres as, e.g. creating a new market for simple, transparent and standardised securitisation products, and by reviewing the Prospectus Directive. The EU intentions for creating a single market in capital dates back nearly 60 years. Now, the replies to consultation show that there is the opportunity, the support and the will to make that happen; this opportunity the Commission intends to seize.

Continue Reading “Capital Market Union: advantages and challenges ” at the Baltic Course

Internal model should not become a capital optimisation tool, says EIOPA

0 comments

Posted on 8th June 2015 by Solvency 2 News in Europe

, , , , , , , , , , , , , , , ,

The European Insurance and Occupational Pensions Authority (EIOPA) has warned against the use of internal models to reduce capital requirements under Solvency II.foreign-exchange-currency

Gabriel Bernardino, EIOPA’s chairman, said there had been examples of this in the banking sector under different regulations but it would “kill the underlying idea of an internal model”.

Speaking remotely using video conference technology for the European Insurance Conference, organised by JP Morgan, Bernardino said: “Lessons need to be learned: internal models should not become a capital management and especially a capital optimisation tool. A race to the bottom will kill the underlying idea of an internal model.”

Continue Reading “Internal model should not become a capital optimisation tool, says EIOPA ” at The Actuary News

A.M.BestTV: Solvency Rules Shape Mexico’s Risk Culture

0 comments

Posted on 8th June 2015 by Solvency 2 News in Mexico

, , ,

OLDWICK, N.J.–(BUSINESS WIRE)–In this final of five June 2015 “First Monday” episodes, A.M. Best’s new managing director in the agency’s Mexico office, Manuel Calderón, discusses his country’s Solvency II-typeMexico-City regulatory regime and how it is working to balance risk and growth. Click on http://www.ambest.com/v.asp?v=fmmexico615 to view the entire video program. “First Monday” is A.M. Best’s monthly program featuring commentary by the company’s leading analysts.

The Mexican insurance market is the second largest insurance market in Latin America behind Brazil and has steadily grown in recent years. Accompanying this growth is an evolving regulatory framework to which A.M. Best has responded by opening the Mexico City office and creating a national rating scale.

Calderón speaks about this regulatory framework. “Mexico has made some changes in the laws and the rules for insurance companies, in order to duplicate a supervision model like Solvency II,” said Calderón.

Continue Reading ” A.M.BestTV: Solvency Rules Shape Mexico’s Risk Culture ” at Business Wire

London-based insurers get jittery over ‘Brexit’ fear

0 comments

Posted on 4th June 2015 by Solvency 2 News in Europe |UK

, , , , , , , , , , ,

LONDON, June 4 (Reuters) – Insurers are getting nervous about the possibility Britain may leave the European Union, fearing it would curb their ability to sell policies across the continent and jeopardise years of work on a 200_s common regulatory framework.

Britain’s new Conservative government has committed to holding a referendum on EU membership by the end of 2017. The threat of a British exit, or “Brexit”, has particularly alarmed the City of London financial district, which fears a loss of Britain’s clout in European and global markets.

The Association of British Insurers and International Underwriting Association have in the past week expressed their concerns. They echo those of Gerry Grimstone, chairman of Standard Life and TheCityUK, which promotes London as a financial marketplace…

Continue Reading “London-based insurers get jittery over ‘Brexit’ fear” at Reuter’s News

Is Europe Undermining Its Insurance Companies?

0 comments

Posted on 4th June 2015 by Solvency 2 News in Europe |UK |USA

, , , , , , , , , ,

Why is the European Commission pressurizing its insurance companies?

As well intended as it could be, the regulator seems to ignore that none of the European insurance companies needed any rescue during the financial crisis and they even contributed to the haircut of Greek debt. Yes, there was 2cd578cAIG, but it was not their insurance businesses that were at stake: they used their AAA to write tens of billions of CDS on mortgage debt. US insurance regulation is weaker in the United States than in Europe. The US Government obliged.

The European insurance sector has approximately 6.8 trillion euros of assets under management. It is the largest European institutional investor. Waves of legislation continue to absorb valuable managerial and financial resources. The fragile economy and the sovereign indebtedness in Southern Europe are tough enough to tackle. Insurance companies started to liquidate their long term positions to comply with Solvency II.

Continue Reading “Is Europe Undermining Its Insurance Companies?” at Huff Post Business

PRA supports insurer infrastructure investment if adequately capitalised

0 comments

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

, , , , , , ,

The Prudential Regulation Authority (PRA) regulator is ‘neutral’ on whether insurers should increase their exposure to infrastructure investments so long as they are adequately capitalised, Andrew Bulley, director of life insurance, said in a speech published by the Bank of England.Cables-infrastructure-3d-background

The responsibility and choice of what assets a firm invests in rests solely with the firm’s management, Bulley said, as it is best placed to determine which assets fit the business strategy and meet its policyholder protection obligations.

The PRA would only want to ensure that the insurer is adequately capitalised relative to the risks it is running, and is able to understand and control those risks, Bulley said…

Continue Reading “PRA supports insurer infrastructure investment if adequately capitalised” at Out-Law News