State insurance regulators may flex muscles amid federal rollback

Talk of a lighter regulatory touch out of Washington has many in the financial services industry feeling optimistic; but for insurers, there may be reason to be wary of the ‘law of erin-borchard-list-of-functional-exercises-LIaJas-clipartunintended consequences.’

A potential repeal, or rollback, of the Dodd-Frank Act may seem like a step toward lower regulatory burden, but in reality, only a handful of insurers — those designated as systemically important financial institutions (SIFIs), and those that own a depository institution — would feel its impact.

While few insurers are directly affected by the federal bodies established by Dodd-Frank — notably the Financial Stability Oversight Council (FSOC) and Federal Insurance Office — they are all regulated by the states, which have historically taken the lead on overseeing the insurance industry.

Continue Reading “State insurance regulators may flex muscles amid federal rollback” at The Hill

Bank of England defends implementation of Solvency II rules

The Bank of England has dealt a blow to UK insurers hoping for a quick fix to what they see as the most onerous aspects of EU capital requirements.

The insurance industry has been campaigning for a more lenient indexinterpretation of EU rules known as Solvency II. Some insurers have accused the central bank of “gold plating” the regulatory regime, which is supposed to be applied equally across the EU.

But in a speech to the Association of British Insurers on Tuesday, David Rule, the BoE’s head of insurance supervision, said its implementation of Solvency II had been “robust but proportionate” and played down the potential for immediate changes.

Continue Reading “Bank of England defends implementation of Solvency II rules” at Financial Times

Pensions: IORP II and the elephant in the room

After almost two years of negotiation, the revised European Union Directive on the Activities and Supervision of Institutions for Occupational Retirement Provision (IORP II) comes into effect today.newPic_4681_jpg_3388340b

Member States will now have two years to incorporate it into national law.

But what is IORP II? How will it impact on occupational pension provision in the UK? And what about the elephant in room – Brexit?


IORP I came into effect in 2003, and lays down rules for activities carried out by IORPs (which, in the UK, are broadly employer-funded occupational pension schemes).

Continue Reading “Pensions: IORP II and the elephant in the room” at Lexology

Securitisation needs Solvency II ‘game changer’

LONDON, Feb 1 (IFR) – Securitisation advocates are turning their lobbying efforts to the European Union’s Solvency II directive, as they attempt to unlock an insurance investor base that could transform the

The European Parliament, Commission and Council began their ‘trialogue’ talks on EU securitisation regulations last month.

But many market participants believe the main element of the package they are discussing – a framework for Simple, Transparent and Standardised (STS) securitisations proposed by the Commission – will fall short of what is needed to revive the market, and whatever is agreed will be in place by 2018 at the earliest.

Continue Reading “Securitisation needs Solvency II ‘game changer'” at Reuters News


Insurers warn of Solvency II impact

The capital regime for the insurance industry needs “fundamental” review, a committee of MPs has been told.

Legal & General and Prudential both appeared before the Treasury Select Committee yesterday (25 January) to criticise the Solvency II regime.

The cross-European regime came into effect a year ago and sets out how much capital insurance companies must hold to reduce the risk of insolvency.

Continue Reading “Insurers warn of Solvency II impact ” at FT Adviser News

Insurers plan to invest €1tn with asset managers

Around €1tn of new European business is predicted to flow to asset managers from insurance companies over the next three years, providing a valuable stream of fresh profits for fund Protect Your Househouses.

According to research from Prometeia, an Italian consultancy, insurance companies are looking for help from asset managers to address the twin problems of low interest rates and stringent European rules known as Solvency II.

he consultancy has forecast that, as a result, asset managers will oversee €4.5tn on behalf of insurance company clients by…

Continue Reading “Insurers plan to invest €1tn with asset managers” at Financial Times

Are insurance rules making people work longer?

here has been plenty of controversy surrounding the EU’s impact on UK insurance laws in recent weeks. Last week we woman-at-desk-cryingrevealed that uninsured drivers are to get compensation under a new EU rule; and now a report has outlined some even more significant consequences of the EU’s regulation.

Annuities have, reportedly, become more expensive as a result of Solvency II – and that means that people are needing to work longer before they are able to retire.

The statement was made as part of a hearing at the Treasury Select Committee on the impact of Solvency II as the industry looks to relax some areas of the regime post-Brexit.

Continue Reading “Are insurance rules making people work longer?” at Insurance Business News


AIA Hails Covered Agreement; Will Benefit Insurers on Both Sides of the Atlantic

The American Insurance Association hailed the successful completion of a covered agreement on insurance and reinsurance prudential measures between the United States and European Commission. The agreement establishes mutual indexacknowledgement of prudential supervision in the European Union and the United States, which will eliminate the increasing barriers to U.S. groups operating in Europe.

The Treasury Department’s Federal Insurance Office (FIO) and the U.S. Trade Representative (USTR), which represented the U.S. in the negotiations, will now consult with and submit the agreement to four Congressional committees (House Financial Services, House Ways and Means, Senate Banking and Senate Finance) on a day when all committees are in…

Continue Reading “AIA Hails Covered Agreement; Will Benefit Insurers on Both Sides of the Atlantic” at PRWeb

When insurance pays dividends…..Distribution of long-term insurance profits

On 30 December 2016, the Companies Act 2006 (Distributions of Insurance Companies) Regulations 2016 (the “Regulations“) came into force. The Regulations apply to distributions made on or after that date by reference to accounts prepared for any period ending on or after 1 January 2016.

A copy of the Regulations is available here. The purpose of the Regulations is to define the mechanism by which long-term insurance companies are required to calculate amount of their distributable profits, following the implementation of certain changes arising from the Solvency II Directive.

Continued Reading “When insurance pays dividends….. Distribution of long-term insurance profits ” at Lexology

Strong pipelines underpin uplift in de-risking market

Strong pipelines, greater engagement from smaller schemes and innovation driving improved buy-in affordability are some of the key developments expected to feature in the de-risking market in 2017, according to Willis Towers Watson.

EurosThe firm is predicting that over £30bn of liabilities will be insured in 2017, through buy-ins, buyouts and longevity swaps. This is a significant year-on-year increase, returning to the levels of activity observed in 2014 (£39bn) and 2015 (£18bn), following a slower 2016 (£11bn) as participants allowed for the bedding-in of Solvency II, back books distracted some market participants from new pensions transactions and events such as the referendum caused uncertainty and headwinds across the market.

Continue Reading “Strong pipelines underpin uplift in de-risking market ” at FTSE Global Markets

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