An analysis of the 39 insurance principals by KPMG in Malta has highlighted numerous gaps in the reporting requirements which will come into force in 2016.
KPMG compared the qualitative public disclosures presented under the current Solvency I regime with the future requirements under Solvency II.
In terms of the requirements of the business and performance section of the Solvency Financial Condition Report (SFCR), only around 13 per cent of the assessed entities include comprehensive details on subsidiaries and the rest fail to include details on the group shareholding structure and/or a group structure chart to the extent required by Solvency II.
Continue Reading “Insurers Not Prepared for Solvency II” at Times of Malta News
Feb 6 (Reuters) – Germany’s insurers may need to build up more than 10 billion euros ($13.5 billion) in extra regulatory capital by 2016 to meet requirements under new European risk rules known as Solvency II, the country’s top insurance regulator said.
“It could be a double-digit billion euro amount,” Felix Hufeld, head of insurance supervision at financial watchdog Bafin, told Boersen-Zeitung in an interview on Thursday.
Insurers around Europe are readying themselves for the Solvency II rules, which aim to improve protection for policy holders by requiring insurers to more accurately match capital safety buffers with the risks on their books.
Continue Reading “Bafin: German Insurer Capital Needs May Top 10 bln eur by 2016″ at Reuters News
The European Insurance and Occupational Pensions Authority (EIOPA) has updated its webpages on its guidelines on preparing for Solvency II to include the responses of competent authorities in EEA Member States, inaccordance with the “comply or explain” procedure applying to EIOPA guidelines.
The updated webpages provide details of each Member States’ response on the following guidelines:
- Forward looking assessment of own risks;
- Systems of governance;
- Pre-application of internal models; and
- Submission of information to national competent authorities
Continue Reading “PRA to Comply with Most Guidelines for Solvency II ” at Finextra News
The Commercial Real Estate Finance Council (CREFC) and the European Association for Investors in Non-Listed Real Estate Vehicles (INREV) have published comments on EIOPA’s update capital charges under Solvency II, encouraging EIOPA to allow certain CMBS to qualify for ‘Type A’ capital treatment.
The industry groups warned on Tuesday “not to condemn all CMBS, regardless of their actual characteristics, to ‘Type B’ treatment”. Under the updated proposals, EIOPA suggested cutting the floor to 4.3% from 7%, in Type A deals, but all other forms of securitisations, such as CMBS, would start at 12.5%.
According to the December 19 2013 document, CDOs, WBS, trade receivable ABS, CLOs (except those backed by SME loans) and CMBS are all excluded from Type A. EIOPA said CMBS performance had been poor and the spread volatility higher than for Type A securities.
Continue Reading “CRE Bodies Criticise CMBS Treatment Under Solvency II” at GBM News
LONDON (Alliance News) – Randall & Quilter Investment Holdings Ltd Monday said it has completed the transfer of Chevanstell Ltd to R&Q Insurance (Malta) Ltd, which it says leaves it with a balance sheet strong enough to support future transactions.
“Aside from transactions with third parties, it is envisaged that R&Q Insurance (Malta) will absorb other R&Q owned insurers, namely Principle Insurance Company Limited and Alma Vakuutus OY, subject to relevant regulatory and Court approvals,” the insurance holding company said in a statement.
R&Q Insurance (Malta) will now act as Randall & Quilter’s regulated European run-off insurance consolidator, both for its existing European Economic Area-based owned insurance companies and for future EEA based run-off transactions.
Continue Reading “Randall & Quilter Restructures Holdings Ahead Of Solvency II” at Alliance News
Dec 19 (Reuters) – British insurance group Aviva has made its first commitment since joining five peers in pledging to spend billions more on UK infrastructure projects, lining up 500 million pounds ($820 million) for immediate investment.
Two weeks ago the UK government unveiled plans for the six insurers to invest 25 billion pounds over the next five years in transport and energy projects as part of a national infrastructure plan designed to help boost the economy.
Aviva said on Thursday that its commitment follows last month’s deal on new European capital requirements for insurers – known as Solvency II – which had proved less burdensome than initially feared, freeing up more money to invest.
Continue Reading “ UPDATE 1-Aviva Pledges $820 Million for UK Infrastructure Projects” at Reuters News
Research and Markets (http://www.researchandmarkets.com/research/9p55fx/2020_foresight) has announced the addition of the “2020 Foresight Report: Assessing Solvency II – Challenges and Opportunities for the Insurance Industry” report to their offering.
Solvency II requires insurers to address all the foreseeable risks that may affect their business structure. However, the shift from Solvency I to Solvency II is not only about capital requirements; rather it is an evolutionary process that requires a change in the behavior of the insurance industry. These regulations will have a mixed impact on key insurance sections in the short run, with life and non-life insurance receiving most of the negative shock and reinsurance businesses receiving a boost. Solvency II norms will also put tremendous pressure on current resources of insurance firms and will escalate their costs, however, carefully implementing these norms will unlock several opportunities that can be exploited upon to increase profitability.
Moreover, it will reduce volatility in the insurance sector and offer a business environment that is encouraging for operations in the long run.
- Provides comprehensive analysis of Solvency II regulations which will impact the financial and capital structure of the insurance industry (more…)