LONDON, Tuesday 25 April, 2017 — The insurance sector is at risk of being further marginalised by investors as performance reporting becomes more complicated as a result of Solvency II, according to a report published jointly by Autonomous Research and Willis Towers Watson. Based on the analysis of the reporting statements of 31 European insurers, the report finds Solvency II has forced apart the sector’s accounting and solvency reporting, making it harder for investors to have a clear picture of how individual insurers are performing.
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 market.
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.
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 acknowledgement 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…
Is it possible for regulators to become too heavily involved in the insurance business? One giant of the UK insurance sector seems to think so. Legal & General has accused a regulator of becoming increasingly interventionist in their control of the industry believing that their role should be cut back.
Specifically, it highlighted the position of the Prudential Regulation Authority (PRA) in relation to Solvency II rules stating that it is “effectively overruling the judgment of the board” in relation to setting capital requirements; and that it has started to take an increasingly “directive” approach in regards to transaction approval.
“Boards do not feel empowered to make commercial decisions without reference to the regulator,” it said in a submission to the Treasury Select Committee.
The following press release was issued by the European Commission on .
In the wake of the financial crisis, more than 40 new pieces of EU legislation were adopted to restore financial stability and market confidence. These reforms have made the financial system more stable and resilient.
However, it is important to monitor the continuing development, early implementation and functioning of the new rules to check that they are delivering as intended.
Developments in the financial sector and the economy more broadly, including rapid technological developments, also need to be taken into account when checking that the rules are still fit for purpose.
The European Commission has identified Solvency II as “one area where significant improvements could be achieved“, for example, by “simplification” and better “technicalconsistency“.
So, when it published its Call for Advice in July 2016, the Commission asked EIOPA to look at the “proportionate and simplified application of the requirements, and removal of unintended inconsistencies“, within the standard formula SCR, and between Solvency II and the CRR / CRD and EMIR.
The Commission also said that it would look at the possible “removal of unjustified constraints to financing“, especially when it comes to long-term investment, and that it might ask EIOPA for a technical advice on these issues later on.
Insurers say they are encouraged by the most recent developments in the covered re/insurance agreement negotiations between the United States and European Commission.
Following the latest round of the talks, held Sept. 21-22 in Washington, D.C., the United States and European Union released a joint statement citing progress.
“Both sides continued to discuss in good faith matters relating to group supervision, exchange of confidential information between supervisory authorities on both sides, and reinsurance supervision, including collateral,” the joint statement said.