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SOLVENCY II NEWS

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Title: SOLVENCY II NEWS


1
Solvency II Are We There Yet?
  • December 2010 presentation by
  • Claude Penland, Associate of the Casualty
    Actuarial Society
  • www.ClaudePenland.com

2
What is Solvency II?
  • Solvency II is the updated set of regulatory
    requirements for insurance firms that operate in
    the European Union.
  • See Wikipedia at http//en.wikipedia.org/wiki/Solv
    ency_II
  • More info at www.SolvencyDeux.com

3
Solvency II Side Effects, Part One
  • Insurers might need to outsource their asset
    management http//bit.ly/aeaqhy
  • Stock portfolios sold off http//bit.ly/cZ56br
  • Captives might need to be run off
    http//bit.ly/cYq7w4
  • Specialist employee costs are being jacked up
    http//bit.ly/9Mt0J0
  • Not enough regulators with experience
    http//bit.ly/a7i21O

4
Solvency II Side Effects, Part Two
  • International Financial Reporting Standards and
    Solvency II hit companies twice and from
    different angles http//bit.ly/9awkgy
  • Demand for bonds may be driven artificially high
    (and yields low) due to dumping of equities and
    buying of bonds http//bit.ly/bu3YM3
  • Cost overruns http//bit.ly/cr4tPt

5
Is Catastrophe Risk Appropriately Represented?
  • Mega Broker says no http//bit.ly/cHHoGz
  • Aon Benfield says no http//bit.ly/9Dbgt3
  • Perils says thats a mighty big catastrophe that
    insurers are expected to be prepared for
    http//bit.ly/9UENg2

6
Solvency II Committees
  • Ironically, they say they must now simplify the
    plans theyve charted.
  • Read more at http//www.claudepenland.com/2010/11/
    30/more-solvency-ii-hand-wringing-coming-out-of-eu
    ropean-mouths/

7
European Pensions
  • Pension Funds Insurers disagree.
  • Pension Funds dont want to be regulated by
    Solvency II.
  • Insurers say what is good for the goose is good
    for the gander.
  • Read more at http//www.claudepenland.com/2010/12/
    01/european-insurers-versus-european-pension-funds
    -who-will-win-the-solvency-ii-argument/

8
Final Points
  • Most recent Solvency II test results might be
    released in March 2011 http//bit.ly/aZZF3z
  • Japan, Switzerland and Bermuda are going through
    equivalency tests http//bit.ly/cnA5v1
  • Expect MA http//bit.ly/ae75Yk
  • Expect Redomiciles http//bit.ly/bnhumt
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