Follow Us

Follow us on Twitter  Follow us on LinkedIn
 

27 February 2013

Insurance Insight: Solvency II delay is "golden opportunity" to solve run-off issues


Default: Change to:


The delay in the implementation of Solvency II offers insurers a golden opportunity to deal with their outstanding run-off and US APH liabilities, according to Ruxley Ventures.


With Solvency II delayed until 2016, and with much of the hard preparatory work already done, many insurers will be reassessing their old liabilities and considering what to do with them in advance of the new deadline, Ruxley said in a recent paper. In particular, there is significant potential for European insurers to transfer these liabilities to a specialist run-off carrier during the next 3 years, achieving a profit at the same time, it noted.

"Many in the insurance industry will be concerned at yet another delay in the implementation of Solvency II, particularly as most of them have already completed much of the necessary and expensive preparations", said John Winter, chief executive officer of Ruxley Ventures.

"However, Ruxley believes the delay should be treated as an opportunity to look again at old outstanding liabilities, and with the sufficient time now available, consider a transfer and the profit that could be generated."

Full article



© Incisive Media Investments Limited


< Next Previous >
Key
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information



Add new comment