Insight Report: Solvency II - Beyond Implementationis a new market research publication announced by Reportstack. This report 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.
ScopeIt 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.
• 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.
Complete report available @ Insight Report: Solvency II - Beyond Implementation.
Reasons to BuyUnderstand opportunities and challenges to optimize investment returns under the Solvency II regime.Develop an insight into the impact of Solvency II on life insurance, non-life insurance, and reinsurance.Understand the global impact of Solvency II on European insurance and reinsurance groups operating outside Europe, and Non-European insurance and reinsurance groups operating in Europe.
• Gain an understanding of transitional measures that can be used to reduce the impact of Solvency II in the short term.
Key HighlightsSolvency 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.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.
• 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.
Ageas Aviva Gable insurance AIG Aegon Genarali Axa Swiss Life Munich Re
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Reportstack Market Research