Introduction: Starting the Solvency II Journey
Solvency II: The journey so far
Internal Models and Solvency II
Review of the Capital Adequacy Framework in Singapore
Insurance Liabilities Under IFRS 4 Phase II and Solvency II: Almost the Same Thing?
Solvency II and Mutual Insurance Companies
The Journey Towards an Approved Internal Model
The Road to Solvency II for a Life Insurance Company
Managing Model Risk
Solvency II and Reinsurance
ORSA: A Forward-looking Approach to Risk and Capital Management
Risk Governance: A Framework to Support Better Decision-making and a Journey Towards Continuous Improvement
Operational Risk and Solvency II: A Practitioner Perspective
Reporting Challenges under Solvency II: The Allianz Experience
The Audit of Solvency II Information
The Holistic Balance Sheet: A Different European Approach for Pension Funds?
Capital for Operational Risk: Some Fundamental Flaws
Reputational Risk: Success is Trust-dependent
Insurance undertakings that are subject to the Solvency II requirements have to make Solvency II information public. This gives rise to the question of whether this information should be audited in order to provide external users’ comfort on the information. Also, local supervisors might want to use independent auditors’ opinions on the Solvency II information in their supervisory processes. At this point in time, no specific requirements in respect of this subject have been published. Solvency information is often also disclosed in the financial statements. Whereas well-informed supervisors could assess the correctness of the information themselves, this is not possible for the general public using financial statements and solvency reports. To ensure that the general public receives reliable information, the financial statements are subject to independent audit and, hence, in this respect, so are the included solvency disclosures. This chapter analyses the potential audit requirements to which this audit approach would lead.
A DIVERSE PRACTICE EXISTS IN THE CURRENT FRAMEWORK
According to our experience in the European Union, under the current Solvency I regulations the