Solvency II: firms prepare for Pillar III scrutiny

Insurers prepare for greater disclosure under new reporting rules

An open book

With widespread progress reported on Pillars I and II of Europe’s Solvency II directive, the industry has been turning its attention to Pillar III. Much of the effort so far has been on the mechanics: how will the information be marshalled to complete the reporting templates? But there is a wider, and perhaps more worrying, question: how will the market react to what is reported? Pillar III requires disclosure of far more detailed information than any previous regime, much of it for the first ti