David Lightfoot, Head of GC Analytics® - International, Eddy Vanbeneden, Head of GC Analytics - Continental Europe and Markus Mueller, GC Analytics, Solvency II Continental Europe Contact Benchmarking QIS5 Scenario Return Period against Vendor Models Our analysis supports the fact that losses in the QIS5 windstorm scenarios are often within the range of the major vendor models. ... Continue Reading »
QIS 5
Comparing Solvency II Standard Scenarios for Windstorms with Catastrophe Model Outcomes – Updated Study: Part I
David Lightfoot, Head of GC Analytics® - International, Eddy Vanbeneden, Head of GC Analytics - Continental Europe and Markus Mueller, GC Analytics, Solvency II Continental Europe Contact With the generalized use of catastrophe models to measure the natural catastrophe exposure of insurance portfolios, the outcomes of these models have more and more influence in the dete ... Continue Reading »
January 2012 Reinsurance Renewal: Benelux
Primary insurance premium rates increased in the Benelux private sector between 2 percent and 5 percent, though the reasons differed for the various classes of business and territories. In Belgium residential property, for example, minor winter and summer storms in 2010 and 2011 as well as some small floods, led to unsatisfactory results. In the Netherlands, Belgium and ... Continue Reading »
Solvency II Timeline: The QIS 5 and Stress Test Results, Driving the Delay
A great deal of attention this year has been focused on determining the practical effects of Solvency II once it is put into effect. In March 2011 the results of QIS 5 were released. EIOPA launched a three-month Solvency II stress test shortly thereafter. Both events shed light on the real-world implications of the new regime, raised issues that should be addressed before it ... Continue Reading »
Timeline: Transitioning to Solvency II
As is often the case with pan-European legislation, the implementation timeframe for Solvency II has generated a great deal of debate and discussion - and what had been a firm January 2013 go-live date now looks increasingly unlikely. It appears at this point that the new regulations will be phased in, and enforcement is likely to be postponed by a year. Such a delay would buy ... Continue Reading »
Solvency II: Assessing Counterparty Default Risk
Counterparty default risk is one of the core components of the SCR. This module has undergone substantial change over the several quantitative impact studies, as the supervisors attempted to find an appropriate measure of the risk. In the QIS 5 final report, EIOPA noted that this module received the most criticism for the "overly complex approach" relative to the materiality of ... Continue Reading »
Impact of Solvency II on Primary Insurance Companies: Challenges and Opportunities, Part I
It is clear that Solvency II presents a host of challenges to (re)insurers. Below we explore in detail some of the key considerations, challenges and opportunities associated with Solvency II. ... Continue Reading »
Solvency II’s Impact on the Reinsurance Market: Drawbacks and Risks
Capital Requirements and the Costs of Compliance are Discriminately Higher for Smaller Reinsurers and Will Force Some Consolidation Large, diversified and highly-rated reinsurance groups with approved internal capital models will likely have materially lower capital requirements under Solvency II than they already maintain for their ratings. For these reinsurers, rating ... Continue Reading »
Solvency II: Changing the Game
Changing regulatory requirements have remained high on the industry agenda this year, with particular attention focused on Solvency II. Despite its nominally European focus, Solvency II presents a wide range of considerations - and opportunities - to insurance entities worldwide. This new regulatory framework will enact a fundamental change in the way the European insurance ... Continue Reading »
Succeeding Under Solvency II: Entire White Paper Series
Guy Carpenter recently published a series of three white papers on Solvency II covering key issues of relevance to (re)insurers. We bring the entire series together here. Succeeding Under Solvency II: Pillar One, Capital Requirements; Part I: Despite its nominally European focus, Solvency II presents a wide range of considerations - and opportunities - to insurance entities ... Continue Reading »
