IIF warns Solvency II risk charges may lead to imprudent asset allocation by insurers

IIF warns Solvency II risk charges may lead to imprudent asset allocation by insurers

european-commission

Solvency II could encourage insurers to hold poor quality or low-rated debt, which may be “inconsistent” with prudent asset allocation, the Institute of International Finance (IIF) has warned.

The IIF argued that the capital charges applied to certain asset classes under Solvency II could result in large alterations to insurers’ portfolios and induce insurers to hold high volumes of European Economic Area (EEA) sovereign debt and also short-dated, lower quality corporate bonds.

Under Solvency II

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 info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

If you already have an account, please sign in here.

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

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: