Tag Archives: European Commission

Complex reporting caused by Solvency II risks putting investors off insurance sector

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.

The report finds that Solvency II falls significantly short as a profit performance and cash generation metric that can replace embedded value (EV). The urgency of this issue is further underlined by the rapidly shrinking publication of useful EV data in Europe and the fact that the reformation of IFRS (new proposals expected to be published in May) is unlikely to help for many years. Continue reading Complex reporting caused by Solvency II risks putting investors off insurance sector

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?

Background

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 market.game-changer-fish

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

 

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

Time to scale back the role of insurance regulators?

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 law-11believing 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.

Continue Reading “Time to scale back the role of insurance regulators?” at Insurance Business

Call for Evidence: A roadmap for fine-tuning rules for financial services to support growth and investment

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 genrollerpaintingroadgrassskyfinancial 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.

Continue Reading Press Release “Call for Evidence: A roadmap for fine-tuning rules for financial services to support growth and investment” at  New Europe

Blog: Solvency II and the standard formula SCR: Commission & EIOPA review – next steps

The European Commission has identified Solvency II as “one area where significant improvements could be achieved“, for example, by “simplification” and better “technical consistency“.

So, when it published its Call for Advice in July 2016, the eiopaCommission 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.

Continue Reading “Blog: Solvency II and the standard formula SCR: Commission & EIOPA review – next steps” at JD Supra Business Advisor

EIOPA sets out strategic direction of activities for next three years

The European Insurance and Occupational Pensions Authority (EIOPA) has published a work plan outlining the strategic direction of its activities over the next three years, from 2017 to 2019. eiopa-image

The strategy is set out in a single programming document (SPD), developed in accordance with European Commission requirements to enhance consistency and comparability across European Union bodies.

The SPD specifies the tasks EIOPA is mandated, and required, to undertake, as well as its strategic objectives and pensipriorities for 2017.

Continue Reading “EIOPA sets out strategic direction of activities for next three years” at The Actuary News

Insurers Encouraged by Latest Round of Covered Agreement Talks

Insurers say they are encouraged by the most recent developments in the covered re/insurance agreement negotiations between the United States and European google-talkCommission.

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.

Continue Reading “Insurers Encouraged by Latest Round of Covered Agreement Talks” at Insurance Journal

IVASS approves look-through approach to determine solvency capital requirements

IVASS, the Italian insurance regulator, recently approved IVASS Regulation 28 of July 26 2016 on aon-benfield-swiss-re-weather-reinsurancethe look-through approach to determine the solvency capital requirements of insurers in the context of:

Under the standard formula, the solvency capital requirement will be determined by applying the look-through approach to collective investment schemes consisting of undertakings for collective…

Continue Reading “IVASS approves look-through approach to determine solvency capital requirements” at International Law Office News