This chapter discusses prudential insurance regulation in Japan. Japan is the fourth-largest insurance market in the world, with a broad customer base and a varied range of offerings. This profile, coupled with ongoing...more
5/5/2025
/ Asia Pacific ,
Brokers ,
Capital Requirements ,
EU ,
Financial Institutions ,
Financial Services Industry ,
Insurance Industry ,
Insurance Regulations ,
Japan ,
Life Insurance ,
Prudential Regulation Authority (PRA) ,
Regulatory Agenda ,
Regulatory Reform ,
Regulatory Requirements ,
Reinsurance ,
Risk Management ,
Solvency II ,
UK
Host Rob Chaplin is joined by colleague Annabel Smethurst to guide “The Standard Formula” listeners through the prudential solvency regime in Japan, the fourth-largest insurance market in the world. They explore why Japan is...more
Established in 1994, the International Association of Insurance Supervisors (IAIS) is a voluntary membership organisation comprising insurance regulatory authorities, central banks, ministries of finance, and other...more
3/17/2025
/ Banking Sector ,
Basel Committee on Banking Supervision (BCBS) ,
Capital Markets ,
Capital Requirements ,
EU ,
Financial Regulatory Reform ,
Financial Services Industry ,
Global Market ,
IAIS ,
Insurance Industry ,
Insurance Regulations ,
Regulatory Authority ,
Regulatory Oversight ,
Regulatory Requirements ,
Regulatory Standards ,
Risk Management ,
Solvency II ,
UK
“The Standard Formula” host Rob Chaplin is joined by Chiara Iorizzo to delve into the crucial, yet complex, public reporting component of Solvency II. This episode explores the Solvency and Financial Condition Report...more
The SFCR and Other Public Reporting -
Introduction -
The Solvency II regime, as legislated in the Solvency II Directive and elaborated upon in Chapter XII of the EU Commission Level 2 Delegated Regulation (2015/35), is...more
11/13/2024
/ EIOPA ,
EU ,
European Commission ,
Financial Institutions ,
Financial Reporting ,
Insurance Industry ,
New Legislation ,
Pillar 3 ,
Prudential Regulation Authority (PRA) ,
Public Disclosure ,
Regulatory Agenda ,
Reinsurance ,
Reporting Requirements ,
Solvency II ,
UK
1. The Supervision Regime -
Proportionality -
The supervision regime is built on the principle of “proportionality,” in an effort to ensure that supervision remains effective and meets its underlying purposes without...more
11/5/2024
/ Acquisitions ,
Auditors ,
Audits ,
Capital Markets ,
EIOPA ,
EU ,
European Supervisory Authorities (ESAs) ,
Financial Institutions ,
Financial Markets ,
Financial Regulatory Reform ,
Information Sharing ,
Insurance Industry ,
Prudential Regulation Authority (PRA) ,
Regulatory Oversight ,
Regulatory Requirements ,
Reinsurance ,
Reporting Requirements ,
Solvency II ,
UK
Undertakings in difficulty, in the context of Solvency II, refers to insurers that are either failing or likely to fail to meet their solvency capital requirement (SCR) or their minimum capital requirement (MCR) (together,...more
10/31/2024
/ Bank Recovery and Resolution Directive (BRRD) ,
Capital Requirements ,
EIOPA ,
EU ,
European Parliament ,
Exit Planning ,
Financial Institutions ,
Financial Services Industry ,
FSMA ,
HM Treasury ,
Insurance Industry ,
Lead Supervisory Authority ,
Legislative Agendas ,
Notification Requirements ,
Proposed Regulation ,
Prudential Regulation Authority (PRA) ,
Recovery Plans ,
Regulatory Agenda ,
Reinsurance ,
Solvency II ,
UK
This chapter discusses the valuation of assets and liabilities under Solvency II. Given that strategic asset allocation and investment management are key aspects of an insurer’s business, especially for life insurers, this is...more
“The Standard Formula’s” Rob Chaplin once again gives listeners a look at how to address some of the intricacies of Solvency II. In this episode, he is joined by Feargal Ryan for a discussion on how insurers should navigate...more
Solvency II is organised around three core pillars of prudential regulation, which ensure the safety and soundness of (re)insurers, in line with the scale, nature and complexity of their business:
- Pillar One focuses on...more
9/4/2024
/ Capital Requirements ,
EIOPA ,
EU ,
European Banking Authority (EBA) ,
Financial Institutions ,
Insurance Industry ,
ORSA ,
Outsourcing ,
Prudential Regulation Authority (PRA) ,
Regulatory Requirements ,
Risk Management ,
SMCR ,
Solvency II ,
UK
The PRA has released an important statement on its approach to funded reinsurance. Our view is that the statement endorses the conceptual principle that funded reinsurance (particularly to offshore counterparties) should best...more
8/2/2024
/ Banking Sector ,
Capital Requirements ,
Collateral Agreements ,
Financial Institutions ,
Financial Services Industry ,
Insurance Industry ,
Life Insurance ,
Prudential Regulation Authority (PRA) ,
Regulatory Requirements ,
Reinsurance ,
Risk Management ,
Solvency II ,
Standard Contractual Clauses ,
UK
There are two main methods of calculating the solvency capital requirement (SCR) under Solvency II, the “standard formula” and “internal model” methods:
(a) The standard formula method, as its name suggests, is the default...more
The Solvency Capital Requirement (SCR) is designed to protect policyholders by helping ensure that insurers can survive difficult periods and pay claims as they fall due. It prescribes a specific level of capital that an...more
7/2/2024
/ Capital Markets ,
Capital Requirements ,
EU ,
Financial Institutions ,
Financial Services Industry ,
Insurance Industry ,
Prudential Regulation Authority (PRA) ,
Regulatory Requirements ,
Risk Management ,
Solvency II ,
UK ,
Underwriting
Our latest episode of “The Standard Formula” Back to Basics series explores the internal model method for calculating the Solvency Capital Requirement. Host Rob Chaplin is joined by George Belcher to dissect the advantages...more
“The value of technical provisions should correspond to the amount which another insurance or reinsurance undertaking (the reference undertaking) would be expected to require to take over and fulfil the underlying insurance...more
“The Solvency Capital Requirement, or SCR, is designed to protect policyholders by helping to make sure that insurers can survive difficult periods and pay claims as they fall due.”
In this episode of "The Standard Formula"...more
This chapter discusses and analyses the investment rules that apply to Solvency II insurers and reinsurers in the United Kingdom.
In particular, this chapter will outline the “prudent person principle” and discuss the...more
4/30/2024
/ EIOPA ,
Environmental Social & Governance (ESG) ,
EU ,
Financial Institutions ,
Insurance Industry ,
Investment ,
Investors ,
Popular ,
Prudent Investor Rule ,
Prudential Regulation Authority (PRA) ,
Solvency II
In the latest installment of “The Standard Formula” Back to Basics series, podcast host and Europe financial institutions head Robert Chaplin is joined by colleague Mary Bonsu to provide listeners with a deeper understanding...more
1. Background to the Matching Adjustment -
“Where insurance and reinsurance undertakings hold bonds or other assets with similar cash flow characteristics to maturity, they are not exposed to the risk of changing spreads...more
As discussed in our previous updates, in June 2020 the UK government announced a wide-ranging review of the Solvency II framework in the UK, aimed at reforming the insurance regulatory framework inherited from the EU given...more
3/14/2024
/ Disclosure Requirements ,
EU ,
Final Rules ,
Financial Services and Markets Act ,
Insurance Industry ,
Jurisdictional Thresholds ,
Prudential Regulation Authority (PRA) ,
Reinsurance ,
Reporting Requirements ,
Solvency II ,
UK ,
Underwriting
Group supervision regulates the impact that members of a Solvency II group may have on a UK Solvency II insurer. The rules governing Solvency II groups are contained in the PRA Rulebook (Group Supervision), the Solvency 2...more
“The Standard Formula” host Rob Chaplin is joined in this episode by colleague Theo Charalambous as they map out the intricacies of the U.K.’s matching adjustment regime for insurers, which will soon be reformed. The...more
In our fourth installment of “The Standard Formula” Back to Basics series, host Robert Chaplin is joined by Feargal Ryan for a detailed discussion on group supervision under Solvency II. Topics covered include circumstances...more
(Re)insurance is a global business. It is common for (re)insurance groups to operate in a range of jurisdictions via:
i. locally incorporated and authorised subsidiaries,
ii. local branches of third country...more
The primary function of an insurer is the assumption and management of insurance risk. Very commonly, this will involve an insurer passing (or ceding) risk to other (re)insurers or protection providers in the relevant market....more