MFSA Newsletter
Executive Forum on Solvency II Solvency II and the Expanding Frontiers of Risk was the theme of an Executive Forum recently organised in Paris by Business Insurance Europe (BIE) with the MFSA's support. The workshop for risk managers focused on...
Executive Forum on Solvency II
Solvency II and the Expanding Frontiers of Risk was the theme of an Executive Forum recently organised in Paris by Business Insurance Europe (BIE) with the MFSA's support. The workshop for risk managers focused on technical and practical issues related to changes in the legal, regulatory and competitive environment in Europe. Participating alongside MFSA were representatives of the Federation of European Risk Management Associations (FERMA), the Association Pour Le Management Des Risques Et Des Assurances De L-Entreprise (AMRAE) and the European Captive Insurance and Reinsurance Owners' Association (ECIROA). A presentation by Prof. Joseph Bannister on the growth opportunities in Malta's insurance sector preceded the proceedings.
During a panel discussion about the implications of Solvency II for captives, Theirry van Santen, who was representing FERMA, and Gunther Drose, interim chairman of ECIROA, both emphasised that risk managers should become involved in the Solvency II process to ensure that the needs of the captive industry are recognised when the proposed risk-based capital regime is enacted.
Marisa Attard, insurance business director, MFSA, participating on the same panel, expressed the view that "we need Solvency II not only for the protection of policy holders as the main objective, but also for financial stability". Dr Attard also said that this should not be taken to mean that captives will not disappear from the market. The framework directive gives a message that all parties (risk managers, captive owners and regulators) need to work together. She also mentioned that the principle of proportionality which is currently being discussed is a big development from last year.
Yann Le Pallec, managing director and head of insurance ratings in Europe, Middle East and Africa for Standard & Poor's Corp., mentioned that adoption of capital rules under Solvency II by the current October 2012 deadline was now under threat. Mr Le Pallec noted some "misunderstandings" over the implementation of Solvency II. The proposed capital regime was intended to improve the competitive standing of Europe's insurers compared with overseas carriers, rather than increase policyholder protection, he said. Mr Le Pallec also said: "Consolidation is happening, and is well advanced, but it still has a long way to go. The number of European insurers is high, but it is likely that Solvency II will force consolidation".
Speaking at the Forum, Praveen Sharma, senior vice president and practice leader at Marsh Inc.'s regulatory and tax consulting unit, said that the financial crisis and greater cross-border cooperation between insurance supervisors and tax authorities have already led to scrutiny of insurance compliance.
Mr Sharma mentioned that he has already seen an increase in audits carried out by tax and regulatory authorities. He added that if companies cannot achieve 100 per cent compliance they should prioritise their efforts in areas with the highest regulation and enforcement or with the highest compliance.
The Forum provided an opportunity for an in-depth discussion on Solvency II and its impact on insurance companies, captives and their customers, as well as an outlook on the future of the European and global insurance sector.
Malta Insurance Rendevous conference be held between March 4 and 5
This two-day conference which is being held in Malta in March, will provide delegates with a mix of European focused and Malta specific sessions, showcasing Malta as a maturing captive jurisdiction, and exploring insurance issues both in the region and globally.
The Malta Insurance Rendezvous will provide insight into the latest developments in Solvency II, catastrophe risk, and the impact of the credit crunch on the insurance industry. Experts will also discuss what the year ahead has in store, and the future of captive and alternative structures, as well as a selection of case studies from companies with headquarters in Malta, revealing their reasons behind their choice and experience of the domicile.
Further information can be obtained from www.rirg.com or www.captivereview.com.
Malta Financial Services Authority
Further information including: Current Consultations; New Licences Issued during December / January; and International News can be accessed from timesofmalta.com.
MFSA web site: http://www.mfsa.com.mt
Registry web site: http://registry.mfsa.com.mt
Consumer web site: http://www.mfsa.com.mt/consumer
Solvency II and the Expanding Frontiers of Risk was the theme of an Executive Forum recently organised in Paris by Business Insurance Europe (BIE) with the MFSA's support. The workshop for risk managers focused on technical and practical issues related to changes in the legal, regulatory and competitive environment in Europe. Participating alongside MFSA were representatives of the Federation of European Risk Management Associations (FERMA), the Association Pour Le Management Des Risques Et Des Assurances De L-Entreprise (AMRAE) and the European Captive Insurance and Reinsurance Owners' Association (ECIROA). A presentation by Prof. Joseph Bannister on the growth opportunities in Malta's insurance sector preceded the proceedings.
During a panel discussion about the implications of Solvency II for captives, Theirry van Santen, who was representing FERMA, and Gunther Drose, interim chairman of ECIROA, both emphasised that risk managers should become involved in the Solvency II process to ensure that the needs of the captive industry are recognised when the proposed risk-based capital regime is enacted.
Marisa Attard, insurance business director, MFSA, participating on the same panel, expressed the view that "we need Solvency II not only for the protection of policy holders as the main objective, but also for financial stability". Dr Attard also said that this should not be taken to mean that captives will not disappear from the market. The framework directive gives a message that all parties (risk managers, captive owners and regulators) need to work together. She also mentioned that the principle of proportionality which is currently being discussed is a big development from last year.
Yann Le Pallec, managing director and head of insurance ratings in Europe, Middle East and Africa for Standard & Poor's Corp., mentioned that adoption of capital rules under Solvency II by the current October 2012 deadline was now under threat. Mr Le Pallec noted some "misunderstandings" over the implementation of Solvency II. The proposed capital regime was intended to improve the competitive standing of Europe's insurers compared with overseas carriers, rather than increase policyholder protection, he said. Mr Le Pallec also said: "Consolidation is happening, and is well advanced, but it still has a long way to go. The number of European insurers is high, but it is likely that Solvency II will force consolidation".
Speaking at the Forum, Praveen Sharma, senior vice president and practice leader at Marsh Inc.'s regulatory and tax consulting unit, said that the financial crisis and greater cross-border cooperation between insurance supervisors and tax authorities have already led to scrutiny of insurance compliance.
Mr Sharma mentioned that he has already seen an increase in audits carried out by tax and regulatory authorities. He added that if companies cannot achieve 100 per cent compliance they should prioritise their efforts in areas with the highest regulation and enforcement or with the highest compliance.
The Forum provided an opportunity for an in-depth discussion on Solvency II and its impact on insurance companies, captives and their customers, as well as an outlook on the future of the European and global insurance sector.
Malta Insurance Rendevous conference be held between March 4 and 5
This two-day conference which is being held in Malta in March, will provide delegates with a mix of European focused and Malta specific sessions, showcasing Malta as a maturing captive jurisdiction, and exploring insurance issues both in the region and globally.
The Malta Insurance Rendezvous will provide insight into the latest developments in Solvency II, catastrophe risk, and the impact of the credit crunch on the insurance industry. Experts will also discuss what the year ahead has in store, and the future of captive and alternative structures, as well as a selection of case studies from companies with headquarters in Malta, revealing their reasons behind their choice and experience of the domicile.
Further information can be obtained from www.rirg.com or www.captivereview.com.
Malta Financial Services Authority
Further information including: Current Consultations; New Licences Issued during December / January; and International News can be accessed from timesofmalta.com.
MFSA web site: http://www.mfsa.com.mt
Registry web site: http://registry.mfsa.com.mt
Consumer web site: http://www.mfsa.com.mt/consumer