Timetric's "Insight Report: Solvency II - Beyond Implementation" conducts a detailed analysis about the current state of Solvency II. It provides:
* An overview of the Solvency II Directive, and discusses important features in terms of capital adequacy, supervision and disclosure.
* Fundamental analysis of risk-based regulatory approach in insurance industry, and an understanding the significance of Solvency II to stakeholders in the insurance industry.
* Analysis of market opportunities and challenges faced by insurers and reinsurers following the implementation of Solvency II.
* An understanding of Solvency II's impact on insurers' business models, including product lines, pricing, investments and strategy.
Report Highlights
* The capital requirement to cover insurance liabilities has increased substantially under the risk-based capital regime of Solvency II. Most of the increase in solvency capital requirement is due to market risk. It alerted insurers to rethink their business models, particularly small insurers, monoline insurers and annuity providers.
* Solvency II has extensive data requirements for insurers and reinsurers to meet the objectives of all three pillars: capital adequacy, supervision and disclosure. A vast amount of data needs to be processed, filtered and presented in a particular format when calculating solvency capital requirements. The documentation of the disclosure process, using SFCR, RFR and QRTs, is also proving to be cumbersome.
* The impact of Solvency II will not only be limited to the EU, but also have a global reach. Insurers headquartered in the EU and with a global presence will have to either comply with the Solvency II provisions or adopt them. Responsibility lies with insurance regulator of the third country to transpose delegated acts into their regulated regime.
* Solvency II challenges the ability of an insurer to construe an investment strategy which can optimize the rate of return on investments. Capital charges can act as a defining factor in insurers' investment operations. Assets such as equities, real estate, structured products and corporate bonds, which are perceived to be riskier, will attract higher capital charges.
Full Report Details at
- http://www.fastmr.com/prod/1198629_insight_report_solvency_ii.aspx?afid=301
Report Scope
* The report discusses in detail the intricacies related to the high capital requirements under Solvency II, and also explains how elements of volatility adjustment, matching adjustment and ultimate forward rate can influence the solvency capital requirement.
* It analyzes the impact of Solvency II on insurer's investments, including the effect of capital charges on insurers' capital.
* It discusses the cost and complexity of Solvency II. It also describes challenges with respect to data requirements to meet the objectives of all three pillars of Solvency II.
* It builds understanding of the decision process, and types of Solvency II equivalence.
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New Study: Insight Report: Solvency II - Beyond Implementation
Company: Fast Market Research, Inc.
Contact Name: Bill Thompson
Contact Email: press@fastmr.com
Contact Phone: 1-413-485-7001
Contact Name: Bill Thompson
Contact Email: press@fastmr.com
Contact Phone: 1-413-485-7001