Glenn Gillard, a Financial Services Partner at Deloitte, speaks about the implementation of Solvency II, Base Erosion Profit Sharing (BEPS), and conduct regulations that could affect insurers in the near future.
The final phase of preparing for Solvency II is coming to an end said. Mr. Gillard believes the current challenges surround what is going to be delivered, especially around Pillar III and quantitative reporting. On the governance side, preparations concern installing Solvency II as part of “business as usual, proving the use test and ORSA capital models.”
Continue Reading ” Deloitte Partner expresses concern: Are the regulators ready for Solvency II? ” at World Risk and Insurance News
It’s not clear how much capital European insurers will need to hold against their investments in U.S. securitizations or whether they can even invest in so me of these deals at all.
That’s the view of analysts at Bank of America Merrill Lynch, who put out a report Monday on the regulation Solvency II.
They’re scratching their heads over the regulatory treatment for insurers investing in U.S. deals either directly or through funds holding asset-backeds.
Continue Reading “Solvency II Might Hit Demand for U.S. ABS: B of A Merrill” at National Mortgage News
FRANKFURT, May 12 (Reuters) – German insurers may struggle to meet new Solvency II minimum capital requirements, supervisor Bafin warned on Tuesday, saying it was preparing to regulate some companies more closely should low interest rates weigh further on the sector.
“German insurers will successfully enter the world of Solvency II only with considerable efforts,” Bafin head Felix Hufeld said. “Should rates remain so low, we’ll have to take more companies under man-to-man coverage.” With yields on some government bonds — staple investments for insurers — in negative territory, the International Monetary Fund (IMF) warned in April of “high and rising” danger to weaker mid-sized European life insurers.
Continue Reading “UPDATE 1-German insurers may struggle to meet capital needs – regulator” at Reuters
FRANKFURT/LONDON, May 11 (Reuters) – Expectations of rising dividends and share buybacks from Europe’s insurance companies are fading as ultra low interest rates make it harder for them to meet new capital regulations.
Rock-bottom interest rates reduce insurers’ investment returns, raising the risk of them having to eat into capital reserves to pay policyholders.
With yields on some government bonds — staple investments for insurers — turning negative recently, the International Monetary Fund (IMF) warned last month of a “high and rising” danger to weaker mid-sized European life insurers.
Continue Reading “Insurers’ dividend growth in doubt amid solvency worries” at Reuters News
Low interest rates are taking their toll on some European insurers as they prepare to implement more stringent capital regulations being introduced by the European Union.
Results from three of the continent’s largest insurance companies Wednesday showed how low or negative yields are having an uneven effect, forcing some companies to change their strategies.
Tidjane Thiam, the outgoing chief executive of Prudential PLC, who is leaving to run Credit Suisse Group AG, warned about the “headwinds” of low long-term rates and said that his priority since 2008 has been to reduce the company’s reliance on rates for its earnings.
Continue Reading “Low Interest Rates Pressuring European Insurers” at The Wall Street Journal