Today’s insurance executives face complex market issues such as regulatory uncertainty, evolving governance and risk management frameworks, sustaining operational performance, and maintaining liquidity. Life Actuarial Insights focuses on the impact of these forces on the life insurance sector and helps insurance professionals make more informed business decisions.
This newsletter focuses on Solvency II, with the first article providing background on Solvency II, including the three pillars of its requirements.
It discusses equivalence and the potential impact of Solvency II on U.S. insurers.
The second article reviews the results of QIS5. It discusses issues with respect to the internal model and highlights areas of the calculation that were found to be difficult.
As companies progress through their implementation of Solvency II, it is expected that efforts will be expanded in strategic directions as implications from Solvency II and its related capital requirements will potentially re-define key elements of business decision making for the insurance industry.
The third article delves into the potential strategic implications of Solvency II.