As the drafting of the Solvency II delegated acts comes down to the details, insurers are contemplating the consequences of defeat in their efforts to shape legislation in a number of areas. The definition of contract boundaries tops the list of battles lost. The way legislation is drafted means future profits embedded in pure unit-linked and some other products will not be recognised in insurers’ balance sheets.
Firms are working their way around the problem. Preliminary actuarial analysis sugg