Life Insurance market 2015 results

Insights

Life Insurance market 2015 results

Embracing change

On 1 January 2016, after over a decade of development, the Solvency II regime came into force across Europe. Amongst other things, its introduction radically changes the reporting landscape for insurers and the 2015 results represented the first step on that journey. Against this backdrop, Embedded Value has taken something of a back seat, with a number of insurers reporting EV for the last time at year-end 2015.

Our latest report on Life Insurance market results examines the 2015 EV results, how companies are starting to cover Solvency II within their disclosures and comment on some of the features that we expect to take an increased importance in the coming years.

2015 also saw those companies wishing to continue reporting EV, continue to align its methodology to be consistent with Solvency II.

This paper provides an overview of these methodology convergence and briefly examine the CFO Forum guidance issued in May 2016 on EV reporting under Solvency II, and its implications in the short term..

2016 will see a continuation of efforts to maximise positions reported under Solvency II and in particular dealing with continuing low interest rate environment. It will also see development of Solvency II processes as these become embedded into BAU.

This paper considers some of the challenges insurers will face in its efforts to maximise the Solvency II position over the coming years, which are likely to be current hot topics for our clients and I encourage you to share some of these insights and understand their position.

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