Reinsurance News
Solvency II
Solvency II reforms could create “clear winners and losers” – WTW
25th July 2022
WTW has issued a statement on Solvency II reforms, saying that the package of reforms under consultation has the potential to create clear winners and losers if the “parametrisation” of the Matching Adjustment (MA) provisions indicated by the Prudential Regulation Authority is not recalibrated in line with SII. In particular, ... Read the full article
Volatility in Dutch insurers’ Solvency II ratio expected to increase: Fitch
15th July 2022
Analysts at Fitch Ratings have stated that they expect volatility in Dutch insurers’ Solvency II ratios to increase, due to the insurers’ exposure to fluctuating equity and real-estate prices, as well as widening credit spreads and potential credit deterioration. The impact, however, is more emphasised for insurers with less conservative investment ... Read the full article
UK Chancellor pushing for swift Solvency II reforms
28th June 2022
UK Chancellor of the Exchequer, Rishi Sunak, has said that he aims to deliver reforms to Solvency II insurance capital rules “at pace,” following meetings with industry executives. Sunak and Economic Secretary John Glen met with senior re/insurance executives this week as part of the UK Government's ongoing consultation on post-Brexit ... Read the full article
UK insurers will remain well capitalised under SII reforms – Moody’s
24th June 2022
UK insurers’ solvency will remain robust under proposed post-Brexit regulatory reforms. The proposals, subject to consultation until 21 July 2022, seek to amend the European Union’s Solvency II insurance capital rules so that they better reflect UK insurers’ risk profiles. Drawn up by the UK Treasury, ... Read the full article
L&G position strong despite sluggish share price, say analysts
16th June 2022
Current financial and capital market conditions put L&G in a strong position, according to a new report by RBC Capital Markets. L&G has benefited greatly from rate rises, and its Solvency II ratio is likely to improve as a result. RBC forecasts that due to market movements year-to-date, its surplus capital has ... Read the full article
UK Solvency II reforms won’t affect insurer ratings, says Fitch
5th May 2022
Analysts at Fitch Ratings have assured that recent proposals made by the UK Government concerning Solvency II rules are unlikely to affect the ratings of insurers. Set out in a consultation paper last month, the proposals on Solvency II include an intention to cut the risk margin for carriers, a ... Read the full article
UK Gov proposes significant cut in risk margin as part of Solvency II reforms
28th April 2022
The UK Government has published its Solvency II consultation which includes a proposal to cut the risk margin for carriers, a move that would free up a lot of capital on company balance sheets. It was announced in February by the Economic Secretary that the government planned to reform Solvency ... Read the full article
UK Gov confirms intention to soften Solvency II regulations
22nd February 2022
The UK’s Economic Secretary to the Treasury & City Minister has confirmed that the UK Government intends to soften its Solvency II regulations for the insurance sector, in a departure from European Union (EU) standards. Speaking at an Association of British Insurers (ABI) event this week, John Glen said officials planned ... Read the full article
QIS Framework to hinder growth and investment in UK: WTW
16th February 2022
Re/insurance broker WTW has released a report, exploring the key challenges that come from the PRA's Quantitative Impact Study, whilst analysing HM Treasury’s call for evidence on re-shaping the UK insurance regulatory regime. The purpose of the study is to explore variations in several technical aspects of particular importance to writers ... Read the full article
Insurance Europe responds to Solvency II consultation
19th January 2022
Insurance Europe has responded to the European Commission’s Better Regulation consultation, saying that while the proposals contain helpful and necessary changes, there are elements that could undermine improvements and increase costs. The response from Insurance Europe, says that while Solvency II has provided a ‘more level regulatory playing field across Europe’, ... Read the full article
EU reinsurers urge UK regulator to delay Solvency II changes
6th October 2021
Insurance Europe’s Reinsurance Advisory Board (RAB) has urged the UK’s Prudential Regulation Authority (PRA) to either extend its Temporary Permissions Regime (TPR) or wait until the Treasury's review of Solvency II is finalised before making changes to its regulatory requirements. A recent consultation conducted by the PRA outlined proposed changes to ... Read the full article
European insurers to increase ESG investments on Solvency II reform
27th September 2021
The European insurance sector’s growing interest in assets with environmental, social and governance (ESG) characteristics is likely to get a further boost from the European Commission’s proposal to lower Solvency II (S2) capital charges for longer-term business, Fitch Ratings says. Fitch's report showed that insurers are well-placed to invest in longer-term ... Read the full article
Solvency II proposals include needless costs and complexity: Insurance Europe
24th September 2021
Olav Jones, Deputy Director General of Insurance Europe, has welcomed new proposals on Solvency II by the European Commission (EC), but argued that some elements “unnecessarily increase costs and complexity” for re/insurers. Responding to the suggestion that the proposals would enable re/insurers to further contribute to Europe’s economy, he added that ... Read the full article
Reinsurers main beneficiaries of EC Solvency II review: Berenberg
23rd September 2021
Analysts at Berenberg believe that reinsurers will be the main beneficiaries of new proposal to review Solvency II rules made by the European Commission (EC). The review is largely in line with the initial proposal published by the EU regulator EIOPA in December 2020, and Berenberg notes that the framework is ... Read the full article
ABI welcomes government’s response to Solvency II
5th July 2021
The Association of British Insurers (ABI) have welcomed the UK Government's confirmation that it will reform Solvency II to enable the insurance sector to meet its ambitions and maximise its contribution to climate change investment. Commenting on the announcement, Charlotte Clark, Director of Regulation, ABI, said: “Solvency II reform will be ... Read the full article
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