New technical specifications on Solvency II’s capital requirements make some significant changes to the way insurers calculate their own funds, but they also leave some unanswered questions. Louie Woodall reports
Transparency in fund investments – a capital advantage
Dutch regulator to begin Solvency II test on insurers
Calls for standard formula calibrations to be reduced further
Demand for covered bonds and shorter duration corporate paper likely to increase, according to exclusive analysis by economists at Dutch central bank
Tests will not be based on QIS 5 calibrations, says Montalvo
The final hurdle
Eiopa: Internal models beneficial under Solvency II
Internal model approach gets major capital advantage according to QIS 5 results
Obstacles and opportunities arise from Solvency II
Insurers wary of new European standard setter’s legal powers
Consideration of VIF as Tier I will save insurers from financing increased solvency capital requirements, says head of Italian insurance association
As the implementation of Solvency II looms, the calibration of the standard formula remains a controversial issue as the industry runs the fifth quantitative impact study. But the current design overshoots the one in 200 year confidence level.
European Commission rejects industry criticism over the calibration of QIS 5
Questions remain on the calibration of capital requirements for operational risk under Solvency II's standard formula.
Old Mutual questions the lack of capital credit for dynamic hedging in QIS 5
European insurers are gearing up to take part in Solvency II’s latest and final quantitative impact study. John Ferry assesses what the latest proposals suggest about the impact of the new regime
Insurers face greater complexity under EC's final QIS 5 specifications
Overly prudent capital requirements and excessive red tape in the Solvency II directive will paralyse the European insurance industry and kill the mutual business model, according to the Association of Mutual Insurers and Insurance Cooperatives of Europe...
The final shape of Solvency II has not yet been decided, but it is clear that whatever the result insurers will need to upgrade their technology and data-gathering approach. Clive Davidson examines how Europe’s leading insurers are meeting this challenge