Investment policy of insurers - Impacts of Solvency II


Impacts of Solvency II on the investment policy of insurers

Executive Summary

With the final translation, in September 2015, of the second set of implementing technical standards and guidelines from EIOPA into all European languages, as well as the new draft of the amended delegated acts published at the end of September 2015, the Solvency II project is beginning to take shape.

From 1 January 2016, the new supervisory regime for insurers comes into effect. It delivers an impact far beyond the originally planned scope of its application, especially where investment management companies (KVGs in Germany) provide investment services to insurers, who will also be affected by the impact of Solvency II.

For the affected KVGs, Solvency II firstly results in a necessity to identify the own capital requirements of the insurer at the individual investment level. At the portfolio level, diversification effects must also be generated as far as possible, optimizing the investment allocation. Over and above this, the regulatory reporting requirements for the insurers in the context of the supervisory reporting process must be taken into account. However, the main focus of this article clearly lies in the discussion: “How far will Solvency II influence the investment policy of insurers that strive for optimal investment allocation and thus influence the products that will be offered by the KVG?”

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Performance magazine issue 19, January 2016

Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.

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