Insurers deal with delays to Solvency II rules

Solvency II shines a light on operational risk for insurers that is welcomed by many, but its continued delays and loss of momentum have left the industry questioning whether this focus is slowly disappearing. From the stunted growth of internal model development to whisperings about delays benefitting even the regulators, Jessica Meek investigates

Until the Basel II capital adequacy rules were published in June 2004, quantifying operational risk was not deemed necessary or relevant for financial institutions and holding capital against operational risk losses was a new concept. Since then it has become standard procedure for banks, with Basel II’s advanced measurement approach spreading steadily (albeit slowly) across the industry. In the