Watered-down matching adjustment would be ‘utterly worthless'

Inclusion of credit risk in risk margin criticised


Certain UK insurers are reconsidering whether to apply for the Solvency II matching adjustment (MA) as regulatory communications suggest the benefits of the measure could be significantly watered down. One chief executive officer at a UK life firm, who did not wish to be named, went so far as to say the adjustment could be "utterly worthless" if the most recent definition stuck.

The latest communication from the European Insurance and Occupational Pensions Authority (Eiopa) states that insurers

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The future of life insurance

As the world constantly evolves and changes, so too does the life insurance industry, which is preparing for a multitude of challenges, particularly in three areas: interest rates, regulatory mandates and technology (software, underwriting tools and…

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