Risk managers hold key to clarity on dividends

One of the challenges insurers and investors will face under the forthcoming Solvency II directive is the lack of an easy metric to track cash generation. Risk teams can help provide part of the solution. Rob Mannix reports


If absence truly makes the heart grow fonder, shareholders might come to think wistfully of a key metric under Solvency I that will be missing from insurance company reporting in Europe after January 1, 2016.

The metric in question, known as ‘free surplus', is used by investors to understand an insurer's ability to generate cash and therefore pay dividends. Because incoming Solvency II rules contain no similar measurement, analysts say investors will struggle to understand how much cash

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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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