BoE creates volatility adjustment ‘stepping stone’ for insurers

Dynamic VA may be used for assets that fail to qualify for matching adjustment, say experts

new pound coins_stepping stones_web - Getty.jpg

A proposed change to the way the Bank of England implements the European Union’s Solvency II regime for insurers should boost the use of the volatility adjustment, according to experts. They say the regulator’s acceptance of a dynamic approach to the VA could result in the rule being used as a waiting room for the matching adjustment, which is a more attractive tool but involves a more difficult approval process.

“I think what you may see is [that] where firms struggled to get certain

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: