 Solvency II will drive a sea change in how European insurers do business, according to new Clear Path Analysis report sponsored by BNY MellonTreacherous waters may lie ahead for insurers already dealing with the harshest economic storm in living memory.
Clear Path Analysis’ latest report – entitled ‘Solvency II: The Global Dimension’ – concludes that the advent of the new Solvency II regulatory regime, in less than 18 months time could be a mixed blessing for the insurance industry.
Designed to bring much needed harmonisation to the European insurance industry, Solvency II may place some European insurers at a competitive disadvantage, while others may be required to hedge their capital surpluses. It may also place a reporting burden on insurers who, unless they re-use data efficiently, will face further overheads.
Conversely, Solvency II also promises to drive more professional risk and investment management and will likely lead to further innovation in the risk transfer space
The report explores:
• Multi-jurisdictional challenges
• Unintended consequences of Solvency II
• The need to harness data for value
• Surplus capital and the currency risks that can arise
• Capital efficient investment performance
• Risk transfer techniques, including Insurance Linked Securities
The report was sponsored by BNY Mellon, the global leader in investment management and investment services, and includes contributions from leading European insurers including Allianz, Standard Life and Swiss Re, as well as from Fitch Ratings.
BNY Mellon deals with three quarters of the world’s top 100 life companies and 70% of the biggest non-life companies, the world’s leading CAT bond trustee, globally BNY Mellon manages more than $70 billion of insurers’ own monies, safekeeps over $2.2 trillion of insurers' assets and administers more than 2,000 Insurance Trusts, and in total holds more than $160 billion on behalf of the industry.
Paul Traynor, Head of Insurance, EMEA at BNY Mellon notes: “With the worst economic crisis in decades in full effect and the region’s insurance industry navigating unfamiliar and treacherous waters, this publication seeks to provide an insight into some of the most pressing issues and challenges now facing the European insurance market. We look forward to continuing this dialogue face-to-face with the insurance industry as we help to address the issues they face today — notably an increasingly onerous regulatory burden and the substantial challenges posed by a volatile investment environment.”
To view the full report click here
|
