Insurance Risk - Insurance Risk October 2013
Articles in this issue
Insurers developing internal model risk calibrations for non-standard credit assets
Underlines growing strategic importance of infrastructure bonds and MBS, finds survey
Cat bond ‘lite’ structures raise contamination risk and insolvency fears
Investors and lawyers voice concerns about using segregated accounts structure to issue streamlined cat bond instruments
US insurers overhaul lapse risk assumptions
Switch to predictive models to provide better understanding of risk
Insurers spur changes in commercial real estate loan market
Firms cherry-pick opportunities as they step in to fill the hole opened by capital-strapped banks
US industry at odds over future of XXX captives
Competing solutions to A/XXX reserving proposed as Moody’s warns use of special-purpose vehicles ‘credit negative’
Insurers grapple with model complexity pressures
Insurers’ risk and investment models are becoming more sophisticated – but will greater complexity limit their usefulness? Blake Evans-Pritchard reports
Optimism as Omnibus II trilogues recommence next week
Over the summer, Omnibus II discussions picked up speed at the EU Council. Draft papers reveal a more generous volatility balancer and extended transitional measures are in the pipeline. Industry representatives believe an agreement is within reach…
Investment strategy trends in the UK life insurance sector
Sponsored feature: RBS
Global capital standard raises calibration and consistency questions
International efforts to develop a global capital standard are gathering pace, but the plans are controversial, raising fears that the competitiveness of international insurance groups could be damaged. There are also questions over how any global…
Solvency II reporting dry runs reveal Pillar III challenges
As insurers begin to conduct dry runs of their reporting schedules in preparation for the various conflicting regulations coming into force, it is becoming clear just how difficult compliance is going to be. Clive Davidson reports
Extreme mortality bond issuance predicted to expand as spreads tighten
Successful placement of SCOR bond indicates increased investor appetite for life risk
Insurers braced for far-reaching recovery and resolution requirements
For the past couple of years, insurers have watched at a safe distance banks struggling to learn their way around living wills. Only last month did they realise the extent to which they will be put through similar hardships. The Financial Stability Board…
Insurers embrace innovative hybrid capital structures
Contingent capital bonds are becoming increasingly attractive, writes Louie Woodall. But regulatory reforms mean firms must ensure they have a firm grip on the inner workings of these products
We need an agreement on Omnibus II if Solvency II is to be kept on track
Optimism as trilogue discussions recommence, but a long way to go before an agreement is reached
Exposure under systemic impact
Wrong-way risk (WWR) behaves differently for exposures to systemically important counterparties because their default has the potential to move financial markets before the close-out. Michael Pykhtin and Alexander Sokol show how the traditional exposure…
Operational infrastructure: Under pressure
Sponsored feature: Northern Trust
