Solvency II and run-off
The new capital regime of Solvency II is drawing inexorably towards its implementation date of 2013 and the (re)insurance industry continues to assess its possible impact.
“Under Solvency II a live underwriter’s capital will largely be driven by their internal model capital requirements (which assesses many risk areas such as premium risk, claims reserve risk) and capital demanded by the rating agencies. Rating agencies are likely to get some visibility over insurers internal models, and where the company’s loadings do not appear sufficient they will demand more capital,” explains John Winter, CEO of Ruxley Ventures.
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