A.M. BestTV: Solvency II Adds Burdens and Limitations, Say Mutual Insurers at AMICE
Jun. 06, 2018
OLDWICK, N.J.--(BUSINESS WIRE)--Jun 6, 2018--In this A.M. BestTV episode, at the Association of Mutual Insurers and Insurance Cooperatives in Europe (AMICE) Congress 2018 in Stockholm, insurers said Solvency II regulations have required them to add resources and personnel, while limiting their ability to diversify. Click on http://www.ambest.com/v.asp?v=amice618 to view the entire program.
“Solvency II has had an extremely significant impact on mutuals,” said Grzegorz Buczkowski, president, Association of Mutual Insurers and Insurance Cooperatives in Europe. “It was a major shift in the entire regulatory environment for mutuals, since a lot of mutuals are small companies. As a result, the additional burden of Solvency II weighted more heavily on mutuals due to their size.”
While acknowledging the goal of the new regime, he said he believes that, “more can be done to alleviate the burden on small insurers.”
Christophe Ollivier, deputy head of the corporate service department, Fédération National de la Mutualité Française, highlights how Solvency II has affected business diversification efforts.
“Solvency II was looked upon as a threat in the beginning, since we did not know what would happen. However, it became not a solvency issue, but a technical one to set-up the model to make sure that everything was working correctly,” he said. “Now, the problem is, if you want to diversify, because the house risk is lower, every risk you try will need additional capital; and thus, Solvency II becomes an issue.”
Also appearing in this episode:Gabriel Bernardino, chairman, European Insurance and Occupational Pensions Authority; and Monika Kostlin, managing director, Kiel Reinsurance.
For full video coverage of the AMICE Congress 2018, including exclusive executive interviews, visit http://www.ambest.tv/amice18.
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KEYWORD: UNITED STATES EUROPE NORTH AMERICA NEW JERSEY
INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE
SOURCE: A.M. Best
Copyright Business Wire 2018.
PUB: 06/06/2018 03:01 PM/DISC: 06/06/2018 05:46 PM