Making Solvency II stick


Although some of the more forward-thinking insurance firms are well prepared for Solvency II, most remain confused about what the directive will mean in practice, particularly for operational risk management. One insurer demonstrated his misconception of what it was attempting to achieve at a recent conference debating the three pillars of Solvency II by asking: “Is Pillar II just another way for the regulator to make us hold capital?” More worrying is the introduction of the term ‘Pillar IV’ to

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