Reinsurers take on role providing Solvency II capital relief

Firms such as RGA are covering surrender risk, offering to replicate matching adjustment

na9-non-matching
Reinsurers are helping insurers get round cashflow mismatches in Solvency II

Reinsurers are playing a growing role helping insurers cut capital requirements under Solvency II, particularly when it comes to using the directive’s complex matching adjustment (MA) rules, which reduce capital for portfolios of assets and liabilities that have matching cashflows.

As insurers seek to squeeze maximum benefit from the adjustment, reinsurers are carving out a new business in which they cover cashflow mismatches, thus extending the benefits of the MA.

“Insurers have spent [the

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 copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here