Treating sovereign bonds as risk-free ‘courageous’ – Parente

UFR update needed for credibility; too early to change risk margin, Eiopa director tells conference


Fausto Parente, executive director of the European Insurance and Occupational Pensions Authority (Eiopa), has described the treatment of sovereign bonds as risk-free assets as "courageous", confirming Eiopa expects to revisit capital charges in its review of Solvency II.

Speaking at the Insurance Risk Europe conference in London on October 6, he said: "We didn't receive any requests [from the European Commission, EC] specifically on the treatment of sovereign risk, but... in general, it is one