UK wrong on volatility adjustment, says Insurance Europe

Olav Jones weighs in to debate that could see Eiopa overrule PRA

Olav Jones, Insurance Europe

Olav Jones, deputy director-general at insurance association Insurance Europe, has criticised the UK regulator for deciding firms cannot model an increase in the Solvency II volatility adjustment (VA) under stress – a ruling that forces them to hold more capital but could yet be overturned at a European level.

"Internal models have been changed by supervisors more and more, which means they deviate from what the firm believes is the correct outcome in order to run the business. One prominent exa