Solvency II an opportunity, says new report
New guidebook to Solvency II outlines benefits for insurers
A new report from Research and Markets argues that Solvency II should be regarded as an opportunity for insurers, rather than another compliance exercise. The report, 'Risk Management for Insurers', by Rene Doff, is styled as a risk management guide to help the insurance industry prepare for the implementation of Solvency II, the regulatory framework for the insurance industry that uses Basel II’s three-pillar structure.
Doff attempts to assure insurers that Solvency II provides incentives for insurance companies to improve their risk management systems and ‘will allow you to benefit from the risk management efforts in the context of supervision’. Bearing in mind the cost-savvy audience and the fact that risk managers will need to sell the implementation costs to the senior management, the report also shows how to integrate risk and value management into the management control framework of insurance companies, by highlighting the evolution of embedded value into market consistent techniques and fair value.
Although Solvency II does present benefits, the message appears to be getting lost on European insurers. Recently, rating agency Standard & Poor’s has noted the steps that some insurers are taking towards implementing enterprise risk management policies in advance of Solvency II, but warns that many firms have not yet fully evaluated the effect the new regulation will have on them as the implementation date is still so far away. The effects of Solvency II will hit those firms in the middle tier particularly hard, since they are the ones who are starting to gain an impression of the cost required to implement or upgrade their risk management systems, and are looking to M&A to find economies of scale.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Risk management
Buy side would welcome more guidance on managing margin calls
FSB report calls for regulators to review existing standards for non-bank liquidity management
Japanese megabanks shun internal models as FRTB bites
Isda AGM: All in-scope banks opt for standardised approach to market risk; Nomura eyes IMA in 2025
Benchmark switch leaves hedging headache for Philippine banks
If interest rates are cut before new benchmark docs are ready, banks face possible NII squeeze
Op risk data: Tech glitch gives customers unlimited funds
Also: Payback for slow Paycheck Protection payouts; SEC hits out at AI washing. Data by ORX News
The American way: a stress-test substitute for Basel’s IRRBB?
Bankers divided over new CCAR scenario designed to bridge supervisory gap exposed by SVB failure
Industry warns CFTC against rushing to regulate AI for trading
Vote on workplan pulled amid calls to avoid duplicating rules from other regulatory agencies
Top 10 op risks: change brings challenges as banks splash the cash
Higher interest margins and a trend toward insourcing drive major tech projects
Top 10 op risks: deepfakes drive rise in fraud fears
External fraud re-enters top 10 as artificial intelligence provides new tools for criminals
Most read
- Top 10 operational risks for 2024
- Top 10 op risks: third parties stoke cyber risk
- Japanese megabanks shun internal models as FRTB bites