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18th of May 2012

Non-life insurers will struggle says Fitch

Vicky Beckett 19/12/2011

Non-life insurers may fall short of Solvency II capital requirements Fitch ratings has predicted, despite charges being lowered.
 
This is based on premium calibration charges proposed under the fifth Quantitative Impact Study (QIS5).
 
The European Insurance and Occupational Pensions Authority (EIOPA) and Joint Working Group (JWG) have reviewed the directive’s charges on non-life insurers.
 
On December 12 JWG proposed revised charges that are generally more favourable for the sector.
 
“This report represents a major step in the Solvency II calibration and I am particularly happy that the methodology and proposed calibrations were agreed between supervisors and industry,” said Gabriel Bernardino, chairman of EIOPA.
 
The charges require a lower level of capital to be held than under the QIS5 calibrations.
 
Classes including marine, aviation and transport, fire and property and credit and suretyship will see the greatest benefit, while assistance and workers' compensation will see higher charges.
 
The JWG revised collaborations are anticipated to be similar to the calibration included in the final Level 2 draft, expected in 2012.
 
This is because of the composition of the JWG, consisting of experts from supervisory authorities, the industry, the actuarial profession as well as observers from the European Commission (EC).
 
However, the final approval is made by the European Parliament.
 
Fitch notes that the combined approach has already been communicated to the EC to allow the Commission to prepare its draft proposals for the Implementing Measures of Solvency II.
 
Fitch does not expect a notable impact on credit ratings of its rated insurers from the introduction of Solvency II.

Tags: Commission, EIOPA, European, Fitch, Non-life, Quantitative Impact Study, Ratings, Solvency II

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Sandra 22/02/2012 6:23am

Just going to point out that with the meactmatihal techniques available in the ancient world, geocentrism was the logical conclusion. Ptolemy, Aristotle, and several ancient Chinese physicists concluded the same thing :)

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