Internal models
Conditional approval of Solvency II internal models should be allowed, urges PRA official
Insurers' efforts to develop internal models should be recognised by supervisors
Insurers developing internal model risk calibrations for non-standard credit assets
Underlines growing strategic importance of infrastructure bonds and MBS, finds survey
Early-warning indicators needed to address failings in Solvency II - PRA chief
Effective and prudent solution needed on Solvency II matching adjustment, says Bailey
PRA reserves right to review internal models after Icas+ approval
Entry requirments for transitional regime will be high, says PRA official
Fears volatile model warning indicators could lead to unjustified action
UK regulator urged to reconsider proposed early-warning indicators to reflect better changes in economic conditions and not penalise insurers’ de-risking strategies
Eiopa developing early-warning indicators to monitor internal models
Indicators needed to identify situations where a firm's model no longer meets Solvency II calibrations, saya Eiopa
UK regulator right to retain flexibility to force changes on internal models
Head of the PRA plans to use early warning indicators in supervisory work, notwithstanding the risk of EU challenge
Lloyd’s insurers challenged by internal model change policies
Questions on parameterisation remain unanswered by European rule-makers
Profile: FSA's Jo Paisley, on data, modelling and the Bank of England
The Financial Services Authority has a Bank of England veteran heading its risk division as it is subsumed by the central bank. Jo Paisley tells Laurie Carver how the two disparate cultures can be reconciled – particularly when it comes to data
Bank groups revise trading book counter-proposals
Industry associations seek to put banks in control of diversification treatment - but propose regulatory safeguards
Insurers deal with delays to Solvency II rules
Out of focus
Solvency II capital tests not part of augmented Icas regime, FSA confirms
Insurers welcome Icas+, although uncertainty remains over future requirements
Solvency II delays limiting internal model growth, head of op risk warns
Reticence among certain insurers to quantify operational risk also to blame for lack of progress in model development
Insurers wrestle with Solvency II internal model change policies
Supervisors say existing guidance has yet to be tested and may not work
Model behaviour: supervisors grapple with internal model approval
With regulators struggling to get comfortable with insurers’ internal models, and with the memory of the subprime crisis still lingering, the question of how to ensure that the models are robust is worrying supervisors. Blake Evans-Pritchard reports
Norwegian regulator to ease internal model timetable in wake of Solvency II delays
French regulator also considering adjusting pre-approval schedule
FSA proposals to ease Icas modelling burden raise questions over inclusion of Solvency II risk margin
Suggestions that regulator is already beginning to apply Solvency II assumptions to capital calculations
Testing to destruction
Reverse stress testing is set to become standard practice under Solvency II as part of the validation process for internal models, yet for most European insurers such tests are a new concept. Clive Davidson examines what can be learned from the UK, where…
Insurers assess partial models to reflect risk profile
Risk reflection
Solvency II: Insurers and supervisors must work together to ensure consistency on model approvals
Insurance groups should ensure consistent approach to model applications across organisation, says chairman of Eiopa's internal model committee
Solvency II: Lack of co-ordination on internal model approval, says Buecheler
European supervisors are taking different approaches to the Solvency II internal model approval process, says head of Solvency II project for Allianz
Insurers explore 'risk geographies' for capital modelling
Risk geographies
UK insurers behind schedule on Solvency II data requirements
UK Financial Services Authority highlights problems with data control, ownership and validation