Insurers mull ways around rules on contract boundaries

Policy amendments a possible method to recognise future profits


As the drafting of the Solvency II delegated acts comes down to the details, insurers are contemplating the consequences of defeat in their efforts to shape legislation in a number of areas. The definition of contract boundaries tops the list of battles lost. The way legislation is drafted means future profits embedded in pure unit-linked and some other products will not be recognised in insurers’ balance sheets.

Firms are working their way around the problem. Preliminary actuarial analysis sugg