Solvency II – where we stand

Swiss Re, together with the rest of the European insurance and reinsurance industry, strongly supports the development of the Solvency II regime. The new regulations are economic and risk-based, something which we believe represents a positive step in terms of insurance regulation and which points the way forward for other regulatory regimes around the world.

Solvency II is the right approach because it combines: total balance sheet and economic-based solvency assessment; strong reliance on qualitative requirements; and enhanced market discipline through increased disclosure requirements and transparency.

Devil in the details

As with any project of this nature, the devil is in the details: the actual impact of Solvency II on our business and our clients business will only become truly clear once the so-called implementing measures have been finalised which is expected by end of 2011. A first glimpse of the potential impact has been given with the draft specifications for QIS5, one of the quantitative impact studies, or roadtests, that will be conducted in the second half of 2010.

The insurance and reinsurance industries had raised significant concerns over the implementing measures that were being proposed over the course of 2009 and 2010. The industry’s concern was that this could put the entire project at risk.

Concerns eased

Many of the concerns that the industry raised were taken into account and the draft QIS5 specifications issued by the European Commission in April 2010 were largely welcomed by insurers and reinsurance companies. However, some of the specifications remain too conservative in the view of the industry. Getting the calibration of the Solvency II framework right is a crucial step towards achieving Solvency II’s objectives and promoting the development of the European industry.

Testing in H2 2010

The next impact study will run from August to November 2010. The industry, through the CRO Forum, CFO Forum and the Comité Européen des Assurances (CEA), is working closely with CEIOPS and the European Commission to fine-tune the specifications in advance of QIS5.

Solvency II: Three new fact sheets

Three new Swiss Re fact sheets provide insight into the relationship between reinsurance and Solvency II.

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Our focus on Solvency II

The introduction of Solvency II will mean far-reaching changes for clients and for the industry. We have been preparing for Solvency II for years, Swiss Re’s Solvency II Project Leader Susanne Kaske-Taft...

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