Revised liquidity premium ‘compromises economic basis of Solvency II’

simon-gadd-legal-general

The inclusion of a liquidity premium for all liabilities longer than one year in the European Commission’s (EC) draft technical specifications for the fifth Solvency II quantitative impact study (QIS 5) compromises the economic basis of the directive, according to a leading UK insurer.

The EC proposed that half the liquidity premium applied to annuities should also be applicable to all liabilities longer than one year. But according to Simon Gadd, head of annuities at London-based Legal &

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: