EIOPA’s Fossil Fuel Proposals Pose Minimal Impact on European Insurers’ Ratings
European insurers’ ratings will remain unaffected by the proposed capital surcharges on fossil fuel-related assets, according to EIOPA
Solvency II
Solvency II is a regulatory framework designed to ensure the financial stability of insurance companies in the European Union. Implemented in January 2016, this framework replaces the previous Solvency I regulations and introduces a risk-based approach to supervision.
Solvency II is built on three main pillars. The first pillar focuses on quantitative requirements. It sets standards for the amount of capital insurers must hold, based on their risk profiles. The second pillar addresses the qualitative aspects, including governance and risk management. It ensures that companies have robust systems in place to manage their risks effectively. The third pillar involves disclosure requirements. Insurers must provide detailed information about their financial condition and risk management practices to regulators and the public.
The framework aims to improve the protection of policyholders by ensuring that insurers have sufficient resources to cover their liabilities, even in adverse conditions. It also promotes greater transparency and consistency across the EU insurance market.
Overall, Solvency II enhances the resilience of the insurance sector, encourages sound risk management practices, and fosters consumer confidence in the financial stability of insurers.
German Life Insurer Ratings Unaffected by Solvency II Reductions
German life insurer ratings remain unaffected by reductions in Solvency II (S2) transitional measures, despite higher bond yields, focuses on fundamental S2
Solvency II Directive & IRRD: New Rules for EU Insurance Sector
Council and the Parliament have reached a provisional agreement on amendments to the Solvency II directive, the EU’s main piece of legislation in the insurance area
Solvency II for EU & UK Insurers: Review Are Approaching Completion
The multi-year reviews of Solvency II in the EU and the UK are approaching completion, despite the very different macroeconomic environment
How the New Solvency II Reforms Boost the UK Insurance Market?
The Bank of England proposed further reforms to capital rules for UK insurers in a step it said would cut red tape without lowering solvency standards
UK Life Insurance Market Solvency at Record High
The UK life insurance market will continue to maintain strong capitalisation despite the government’s proposals to loosen Solvency II (S2) rules to release capital for insurers
UK life insurers are poised to continue benefitting from strong bulk annuity volumes in 2025 despite potential challenges from regulatory changes
U.S. Financial Stability Oversight Council said
there has been a shift in the composition of life insurers’ liabilities and an increase of private equity firms
U.S. life insurers have used reinsurance to reduce exposure to long-term care (LTC) insurance. The transactions strengthen balance sheets, improve capital efficiency
The enhancements to regulatory standards are supportive of ratings for North American life insurers, which are generally expected to maintain strong balance sheets