Allianz CRO: industry and regulators ‘in denial’ over solvency levels

European life insurers and their regulators are “in denial” over the impact of current market turmoil on firms’ Solvency II-consistent balance sheets, according to Tom Wilson, chief risk officer of Allianz. They would be facing 2008-style hits if not for the use of a liquidity premium in discount rates, which is reducing liability values.

Speaking on the sidelines of Life & Pension Risk’s Solvency II conference in London, Wilson said market volatility witnessed over the past couple of months has