Towers Perrin say survey demonstrates rising interest in Solvency II from insurance sector
Increased participation in QIS 3 (the results of which are released today) demonstrates rising interest in Solvency II within the insurance sector, according to Towers Perrin.
“The number of participants in QIS 3 has doubled compared to QIS 2, and this is the first time that insurance groups have participated as group entities,” commented John Charles, principal at the Tillinghast business of Towers Perrin.
“This reflects a dramatic increase in levels of interest in Solvency II; more organisations are considering the implications of the proposals and are beginning to prepare for implementation of risk based supervision.”
“Although formal implementation in 2012 may seem a long way away,” continued Charles, “the market understands the extent of the work needed and the benefits of early preparation to maximise the opportunities presented by Solvency II”
Insurers want refinements to the current proposals say Towers Perrin.
Towers Perrin also noted that respondents to QIS 3 had made it clear that they wanted areas of Solvency II’s capital requirement calculations to be refined. Specific feedback included:
? Concerns over the calibration, especially for non-Life companies where the capital amounts are universally seen as too high;
? Recognition that further work is needed on the calculations for insurance groups;
? A concern that some smaller companies may find the proposed calculations costly and difficult to implement;
? Inconsistencies in the proposed capital calculations that may hinder effective supervision; and
? A clear need for greater guidance from supervisors to help companies implement the new approaches