Insurers deal with delays to Solvency II rules

Out of focus

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 insurance sector, however, it is a different story.

The Solvency II capital framework rules for