EMB study reveals 62% increase in Solvency II capital requirements

UK non-life insurers face an average solvency capital requirement (SCR) increase of 62% compared to the Solvency II QIS4 standard formula level, as a result of changes proposed to the implementation measures for the European regulatory standard over the past six months. This equates, on a conservative basis, to an additional €15 billion of capital that insurers across the non-life industry will have to find. The study was based on data from 49 entities with a QIS4 capitalisation of €8 billion. More

The role of technology in risk management.

Technology plays an important part in effective risk management, but it can’t absolve people’s responsibility to use it appropriately and intelligently. While technology, and computing power in particular, has enabled mankind to achieve great things, there are limitations. Human skill and judgement cannot be eradicated from the mix. More

CEIOPS pushes on with Solvency II implementation

While politicians have been debating the final wording of the Solvency II Directive, the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) has been pressing ahead with its advisory and consultation programme. It produced a report ‘Lessons learned from the crisis (Solvency II and beyond)’ that examined some of the implications of the global economic downturn on how the Directive might be implemented. Our experts have analysed this report and summarised the key messages. More

An insurance conundrum: The Internal Model or the Standard Formula?

This paper sets out some of the respective high level benefits of using the standard formula and internal model approaches.  These should at least be considered when constructing the business case either way.  They may also be useful to firms considering which areas of their internal model might be simplified by using the standard formula (the partial model approach).  More

Putting Solvency II into perspective for small and mid-size insurers

Smaller national and regional insurers are typically among the best capitalised across Europe. Yet, even in a business climate which increasingly appears preoccupied with financial measures of health, Solvency II requires such companies to have a concerted plan of action up to implementation. Rather than regarding this as a regulatory burden, EMB believes the Directive offers great opportunities to those smaller firms willing to embrace them. More

ERM:a critical undertaking for small and medium sized enterprises

All too often smaller and medium-sized insurers see increased regulation as a problem, yet Solvency II offers great opportunities to those firms willing to embrace them, says Mike Wilkinson of EMB.  More

Action time as FSA sets out Solvency II schedule

Andrew McGuinness of EMB summarises the main practical implications of the FSA’s recent discussion paper on Solvency II.  More

New guidance for gaining maximum benefit from the Solvency II regulation

This guide aims to help companies see an opportunity to introduce improvements into their business which will deliver genuine competitive advantage. More

FSA ups the pace for Solvency II

By publishing its detailed Discussion Paper ‘Insurance Risk Management: The Path to Solvency II’, it’s clear the FSA is very focused on driving the UK insurance industry to meet the forthcoming Solvency II requirements. Read EMB’s analysis of this paper. More

Chief Risk Officers:  a case of Quadrophenia?

Many companies have recently announced the appointment of an executive level CRO. But it’s a fine balancing act to get right. Mike Wilkinson, head of risk consulting at EMB, reviews the key factors for success. More

Enterprise Risk Management goes global

Regulators around the world are converging in their assessment of insurer creditworthiness. Enterprise Risk Management (ERM) and Solvency II are on everyone’s lips. Richard Rodriguez and Dave Sommer of EMB discuss the resulting challenges and opportunities for company management. More

How the ICAS regime impacts companies

As the ICAS regime celebrates its third birthday, Mike Wilkinson of EMB discusses whether this gives UK insurers a competitive advantage for Solvency II. More

 The Impact of Solvency II on Lloyd's

As Europe prepares to undergo the changes required for Solvency II, Richard Millns and Andrew McGuinness of EMB assess the impact for the oldest insurer – Lloyd’s of London. More

Solvency II Framework Directive Analysis

EMB's Richard Millns & Mike Wilkinson offer expert analysis on the long-awaited framework directive on Solvency II.  Click here and improve your understanding of the implications for the insurance and reinsurance industries, as well as for your own company.

Implementing Solvency II by Understanding ERM

Mike Wilkinson of EMB has written an informative briefing paper looking at Enterprise Risk Management and what UK insurers/reinsurers need to do for the implementation of Solvency II.  More 

Solvency II Could be Good News for Insurers and Reinsurers

"Companies that take a positive view of Solvency II will gain wide-ranging business benefits", says EMB Partner, Richard Rodriguez.  More

The Commercial Benefit of Solvency II

Companies that take a positive view of Solvency II are already seeing the commercial benefit; the rest are losing out.  EMB's Andrew McGuinness reports.  More

Solvency II - Know your Customers

Solvency II will benefit reinsurers who are flexible and willing to take a broad view of their responsibilities towards customers, according to Andrzej Czernuszewicz of EMB.  More 

Solvency II makes the Key Note Address at S&P Symposium

Watch Paul Sharma, chairman of the CEIOPS Internal Models Expert Group spoke at Standard & Poor’s European Insurance Symposium, discussing issues surrounding Solvency 2 and the Framework Directive.  Click here to see a webcast.