- Chubb 's first quarter InFocus Report, "Cyber Criminals Increasingly Target Small Businesses" examines the emergence of new dominant strains of ransomware
- Geneva Association publishes new research Report-"Healthcare in Emerging Markets-Exploring the Protection Gaps"
- ABI welcomes Ogden first review
- CII New Generation Claims Group launch a landmark guide for the compensation of claims in the event of a riot
- Munich Re raises profit guidance to around E2.5bn for 2019-rise in dividend and further share buy-back programme to be proposed at AGM
- SCOR announces a range of senior appointments
- Duck Creek Technologies solutions selected by Australian-based Avant Mutual expired
- Majesco to acquire the India-based insurance software business from its parent company, Majesco Limited expired
- Majesco announce Carroll to lead European operation as Managing Director based in Dublin expired
- KW Specialty selects Sapiens Core Suite for Property & Casualty and ReinsurancePro expired
- MORE TH>N introduces new cashback scheme to help loyal customers offset the cost of renewing their insurance expired
- Antares appoints Campbell as Head of Financial Institutions at Antares Syndicate 1274 expired
13th March 2019
Insurance Europe comments on European Commission’s final delegated acts amending Solvency II delegated regulation
In response to the adoption of the European Commission’s final delegated acts amending the Solvency II delegated regulation, Olav Jones, deputy director general of Insurance Europe, comments “Insurance Europe is disappointed because, while some much-needed improvements and simplifications have been achieved, these are outweighed by the lack of progress on key issues impacting the industry’s ability to maintain and develop their long-term products and investments.”
Specifically, the industry has the following concerns:
-Risk margin: Despite the fact that the industry provided extensive evidence that the risk margin could be safely reduced, the Commission took no action. According to EIOPA, the risk margin adds E200bn in addition to the amount of capital the industry needs to hold to meet all customer claims and high levels of solvency capital. Unfortunately, this especially impacts long-term products.
-Volatility adjustment: There is evidence that this adjustment, designed to reduce artificial volatility for long-term business, does not work as intended. Under this review, a first step regarding the country-specific component was discussed; unfortunately, nothing has been included in the Commission’s text.
In addition, the industry has concerns about the unnecessary restrictions on the loss absorbing capacity of deferred taxes.
On the calibration of long-term investments in equity, Insurance Europe welcomes the Commission’s recognition that equity capital charges are currently too high where insurers can take a long-term approach to investment. It now remains to be seen how the Commission’s proposal works in practice.
Jones continued “Overall, this is a missed opportunity. The next review, to be completed by the end of 2020, needs to be much more ambitious in terms of identifying and prioritizing areas where—long-overdue—improvements to Solvency II can be made. It will have a direct impact on what the insurance industry can provide for customers, as well as its ability to support the Commission’s long-term goals of growth and investment for Europe.”
Insurance Europe Trends(177 articles)