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07 June 2012

FTAdviser: Insurers brace for volatility ahead of Solvency II regime


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The European Solvency II Directive will present significant challenges for insurers, for which the industry is still not prepared, Axa's Jean-Christophe Menioux has warned.


Speaking at the insurer’s international media seminar in France, the group risk chief officer for Axa outlined the company’s own preparations for the Directive, which the EU policymakers hope will codify and harmonise EU insurance regulation.

Mr Menioux said Axa supported the proposals, but was concerned about developments and the timeline of implementation, amid fears the new regime introduces more volatility to the insurance market than previously envisaged. He said: “It will be a challenge for the industry to meet the Solvency II deadline, and it still needs to be refined to cope with crisis times”.

Mr Menioux added: “The principles of the Directives are favourable to the industry, offering higher consistency and transparency and better risk management discipline, making it a key opportunity for strong insurers like Axa, but we all face challenges.

“With Solvency II, a low interest rate environment is less favourable, which means the industry has to adapt products to suit the new environment.”

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