Tag Archives: European Parliament

PRA says insurers exaggerating Solvency II problems – report

Prudential Regulation Authority (PRA) chief executive Sam Woods has reportedly told parliament that insurance companies are overstating the issues regarding Solvency II.4088135-blow-me-funny-quotes

Woods said on Wednesday before the parliament’s Treasury Select Committee that Solvency II is “basically a sensible regime,” Reuters reported.

However, he admitted that Solvency II, which sets out capital rules for EU insurers, needs some changes.

Continue Reading “PRA says insurers exaggerating Solvency II problems – report” at Insurance Business News

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

 

UK parliament launches inquiry into EU’s Solvency II rules after Brexit

A powerful committee of UK parliamentarians has launched an inquiry into EU rules for the €8.4trn insurance industry, following the UK’s vote to leave the 28-member bloc.sadsapture

The Treasury Select Committee said on Tuesday it wanted to examine the so-called Solvency II regime, which came into force at the beginning of the year, to see whether the Brexit vote meant that there were “options” for UK insurers, reports Caroline Binham,

“Brexit provides an opportunity for the UK to assume greater control of insurance regulation,” said Andrew Tyrie, the Conservative chairman of the committee, adding:

Continue Reading “UK parliament launches inquiry into EU’s Solvency II rules after Brexit” at the Financial Times

Solvency II equivalence finally official

It’s official: Bermuda has Solvency II third-country equivalency, as of today. That means the European Union considers the standard of the island’s insurance regulation to be equivalent to its 100-percent-official-300x300own.

In November last year, the European Commission recommended that Bermuda should be considered as in line with the tough new insurance rules being adopted across the 28-country bloc.

A 90-day consultation period that gave member countries and the European Parliament the chance to have their say has now passed.

On March 4, the EC’s delegated decision on Bermuda’s equivalence with Solvency II was laid out in detail in the Official Journal of the European Union.

Continue Reading “Solvency II equivalence finally official” at The Royal Gazette

Bank of England Needs to Monitor Commercial Real Estate Market — Carney

Bank of England governor Mark Carney said that BoE is keeping an eye in real estate investment trusts as sudden increase in commercial real estate properties can result to “concerns about 14-boe-epafinancial stability.

” According to reuters.com, Carney addresses the European Parliament’s economic affairs committee and said “We are watching some developments including…in the publicly traded commercial rest estate market, the unit-trust market, to ensure that is not a potential amplification channel of financial instability.”

Though Carney also noted that no actions are being made by the UK, monitoring the market “makes sense” as commercial real estate is the market where “British banks have taken large losses in downturns.”

In a report by telegraph.co.uk, deputy governor for financial stability Sir Jon Cunliffe said “prices in London were particularly stretched” and that their latest Financial Stability Report reveals that prime offices in West End are “overvalued.” Carney also noted that Solvency II rules for the insurers are needed to be…

Continue Reading “Bank of England Needs to Monitor Commercial Real Estate Market — Carney” at Realty Today

Solvency II third-country equivalence – an unexpected fly in the ointment

The European Parliament has published an exchange of letters between the chair of its Economic and Monetary Affairs Committee (Roberto Gualtieri) and the European Commissioner for cluster-fly1Financial Stability, Financial Services & the Capital Markets Union (Jonathan Hill).

In his letter of 1 April 2015, Gualtieri referred to the Commission’s two Delegated Acts on third-country equivalence –

  • The first for Switzerland, confirming its equivalence for reinsurance, group solvency and group supervision; and
  • The (so called) “second package“, for Australia, Bermuda, Brazil, Canada, Mexico and the US, confirming their provisional equivalence for group solvency (only);

before reiterating the Committee’s position “that these Delegated Acts are to be presented in a separate manner, per third country and per area“.

Continue Reading ” Solvency II third-country equivalence – an unexpected fly in the ointment ” at Lexology

Surprises over European Commission’s Solvency II country decisions

The European Commission has published its first Solvency II third-country equivalence decisions, and they include a few surprises, says Chris Finney of Cooleys.surprise

The Commission has decided that Switzerland is Solvency II equivalent on all three bases – ie for group capital calculation purposes, for group supervisory purposes, and for reinsurance purposes. There’s no surprise here. These decisions will now be considered by the European Parliament and Council. And, if the Parliament and Council are content – which seems likely – the Swiss equivalence decisions will be made, published in the Official Journal of the European Union, and final.

Group capital purposes 

The Commission has also decided that Australia, Bermuda, Brazil, Canada, Mexico and the USA are Solvency II equivalent, for group capital purposes (only); on a 10 year renewable basis (only) and, in the case of Bermuda, only in respect of commercial insurers, not captives. This is a little surprising…

Continue Reading “Surprises over European Commission’s Solvency II country decisions” at The Global Legal Post

Internal model should not become a capital optimisation tool, says EIOPA

The European Insurance and Occupational Pensions Authority (EIOPA) has warned against the use of internal models to reduce capital requirements under Solvency II.foreign-exchange-currency

Gabriel Bernardino, EIOPA’s chairman, said there had been examples of this in the banking sector under different regulations but it would “kill the underlying idea of an internal model”.

Speaking remotely using video conference technology for the European Insurance Conference, organised by JP Morgan, Bernardino said: “Lessons need to be learned: internal models should not become a capital management and especially a capital optimisation tool. A race to the bottom will kill the underlying idea of an internal model.”

Continue Reading “Internal model should not become a capital optimisation tool, says EIOPA ” at The Actuary News

BoE says UK insurers will need more time to meet EU solvency rules

Britain’s insurers will need more time to comply fully with new European Union capital rules that come into force next January, the Bank of England has said.need-more-time

Andrew Bailey, who heads the BoE’s supervisory arm, the Prudential Regulation Authority (PRA), said implementing the Solvency II rules is his single biggest task this year.

The reform aims to ensure that insurers such as Prudential (PRU.L), Aviva (AV.L) and the Lloyd’s of London insurance market hold enough capital to meet policy commitments that stretch out for decades in some cases.

Continue Reading “BoE says UK insurers will need more time to meet EU solvency rules” at Reuters News

 

 

Solvency II Might Hit Demand for U.S. ABS: B of A Merrill

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.BANK_america-2

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