What does Solvency II mean for insurance groups?
Solvency II sets out regulatory requirements for insurance firms and groups, covering financial resources, governance and accountability, risk assessment and management, supervision, reporting and public disclosure.
What does QRT mean Solvency II?
Reporting Templates (QRTs)
How is SCR insurance calculated?
The Basic SCR is calculated by considering different modules of risks: market (equity, property, interest rate, credit spread, currency and concentration), counterparty default, insurance (separately for life, health and non-life business) and intangible assets.
What is SCR insurance?
The solvency capital requirement is the amount of funds that insurance and reinsurance companies are required to hold under the European Union’s Solvency II directive in order to have a 99.5% confidence they could survive the most extreme expected losses over the course of a year.
What is Solvency II SCR?
The SCR, as defined in the Solvency II regulation (EU CDR 2015/35), as amended, represents the level of eligible own funds that should allow an insurance or reinsurance undertakings to absorb significant losses.
What is Solvency II and how will it affect reinsurers?
• Solvency II is the new regime for insurance solvency supervision in Europe. It will be a major driver of future reinsurance buying decisions. • The main principles of Solvency II are: – Three pillar approach Solvency II encompasses much more than the calculation of an insurer’s solvency position.
How to assess the Solvency II readiness of an insurer?
Effective system of governance 2. Effective risk management system (including forward looking assessment) 3. Assessment of insurer’s Solvency II readiness through Internal Model Pre- Application Process 4. Request of information necessary for applying a prospective and risk based supervisory approach
What does Pillar 3 mean for reporting and disclosure?
More broadly, Pillar 3 could provide a useful catalyst for a review and rethink of reporting and disclosure aimed at communicating the strength and potential of the business in a more understandable, accessible and, ultimately, value-enhancing way.
How to improve the solvency position of an insurer?
Reinsurance solutions should be designed to improve the solvency position of an insurer. The simplest way of achieving this is by reducing the SCR. However, reinsurance solutions should also consider other ways of improving efficiency in the economic balance sheet, such as providing greater stability of own funds.