Insurance Risk - Vol 5/ no 9
Articles in this issue
Different degrees
Solvency II will require a massive upgrade in insurers’ technological capability. But as the deadline for implementation looms ever closer, not all in the industry have made the same level of progress.
The hybrid split
Insurers’ capital management has relied heavily on hybrid debt over the last decade – a strategy that has come under threat from Ceiops' latest Solvency II proposals. Aaron Woolner reports
Pension fund of the year - PKA
Danish pension fund PKA uses a Solvency II-inspired internal model to fine-tune its risk management approach. Andrew Sheen reports
Multinational insurer of the year - Allianz
A nurturing of its capital base and an ability to react positively to unfavourable market events has made Allianz Life & Pensions’ multinational insurer of the year. Aaron Woolner reports
Choose life
The US life settlements sector is marketing itself to pension funds and European insurers as an easy way to add diversification to a portfolio. But how are the risks modelled and how can the banks and hedge funds that are brokering the transactions…
Innovation of the year - SEB Pension
In a year that has witnessed variable annuity providers massively scale back the level and increase the cost of the benefits they offer, Denmark’s SEB Pension has constructed a product that bucks the trend, raising the level and reducing the volatility…
Deal of the year - Babcock International
Longevity swaps have been talked about as a solution to pension schemes’ longevity risk management challenges for some years. But this year Babcock International turned theory into practice when it became the first fund to complete a deal. Andrew sheen…
Finding certainty in uncertainty
Pension funds need to operate efficiently during periods of long-term uncertainty, so how can they best mitigate their risks? Theo Kocken, chief executive of Cardano, examines two theories by Keynes and Pascal on decision-making during uncertain times
Local authority opts for longevity swap
The £1.2 billion Royal County of Berkshire pension fund is poised to take the bold step of signing a longevity swap deal to cover all of its 10,000 pensioners, in the first of its kind for a UK public pension scheme.
US academic hits out at Obama proposal for systemic risk regulation
The Obama administration’s proposal to give the Federal Reserve regulatory authority over insurers designated as systemically significant – known as Tier 1 financial holding companies (FHCs) – would increase instability in the insurance market, according…
Remuneration controls in Solvency II ‘unjustified’
Proposals to include measures relating to remuneration policy as part of the Solvency II directive have been slammed by Spanish mutual insurer Groupama, which described the initiative as “unjustified interference in company management”.
US state regulators make move toward principle-based regulation
The National Association of Insurance Commissioners (NAIC), the group representing industry regulators within the United States and its territories, has adopted principle-based reserve requirements for life insurance products, replacing its previous…
Enhanced transfer value transactions activity marks return of buy-out market
The UK’s long-dormant pension buy-out market could be on the verge of resurgence, as improving market conditions and increased de-risking activity through enhanced transfer value (ETV) transactions have combined to make pricing more attractive and…
European industry condemns Ceiops’ risk-free rate proposals
The decision by the Committee of European Insurance and Occupational Pensions Supervisors (Ceiops) to opt for only triple A-rated government bond rates to be allowed to discount insurers’ technical provisions in Solvency II has received widespread…
