The Solvency II Experts News

CEIOPS has published a letter to the IASB, responding to its Discussion Papers on “Reducing Complexity in Reporting Financial Instruments” and “Financial Instruments with Characteristics of Equity”.
CEIOPS has also published a letter to the IASB, responding to its Discussion Paper on “Prelimenary Views on Amendments to IAS 19 Employee Benefits”.

 

The Discussion Paper (DP) represents the start of a programme of preparation for Solvency II for the UK insurance market. It highlights and explains key elements of the Solvency II regime, and identifies the actions that insurers should presently be undertaking. The DP aims to inform insurers’ preparations, by highlighting the key requirements of the Directive, and suggesting how insurers might progress their planning for implementation.

Sally Dewar, managing director of Wholesale & Institutional Markets, said: “This paper outlines key challenges likely to arise for UK insurers in the implementation of the Solvency II Directive. To ensure firms successfully implement this new regime, it is essential that senior management consider now the implications for their business and start planning immediately.” Click here to download full paper.

Solvency II obliges companies to take a risk-adequate view of their operations as a whole. Sample calculations for a specimen company using the standard model and a partial model show that reinsurance remains one of the simplest and most fl exible ways for an insurer to manage its balance sheet.

In Standard & Poor’s recent report (One In Four Of Europe’s Insurers

Could Face Major Strategic Decisions Under Solvency II), Standard and

Poor’s highlighted that many companies might not be able to meet the

new Solvency Capital Requirement (SCR) under Solvency II.

In This article, Standard and Poor’s  provides guidance to what

companies should be doing now to ensure they are prepared for the

implementation of Solvency II in 2012.

Click here to read the full article.

Watson Wyatt said that the consultation paper published by the European Commission on the 3rd of september could represent a reprieve for UK companies sponsoring defined benefit schemes who had been threatened with insurance-style funding requirements.

Click here to read full article