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