Countdown to Solvency II: Making your capital work harder

 

The fifth quantitative impact study (QIS5) has demonstrated capital management structures tailored to existing regulation are likely to be less efficient under Solvency II. What can you do to improve your capital position?

 

QIS5 has provided insurers with the best view to date of their future capital requirements under Solvency II, and why structures created for the current solvency regulations may no longer be optimal under the new regime.

 

Although the recently published draft Omnibus II Directive includes some transitional measures, this might only delay the inevitable and the importance of reassessing the effectiveness of existing structures remains. As is often the case, early movers could gain a competitive advantage.