Of Special Interest


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24th June 2012

51% of insurers changing measurement of capital adequacy under Solvency II says survey

A report from Deloitte highlights how insurers are preparing for the introduction of Solvency II by changing their approach to calculating capital adequacy requirements. Conducted by the Economist Intelligence Unit, the latest edition of the annual Deloitte Solvency II survey of insurers found that:
-More than half (51%) of respondents plan to change their approach to calculating regulatory capital, and of those, 60% have increased the sophistication of their approach;
-Of those who are changing their approach, 37% are switching from a partial internal model to a full internal model and 23% have moved away from the standard formula approach;
However, 40% of those changing their approach have chosen a simpler method, with 10% moving from a full internal to a partial internal model, 13% moving from a partial internal model to the standard formula and 17% from full to standard.
Last year’s survey found that half of respondents had decided on a full internal model to calculate capital adequacy requirements, 30% a partial internal model and 20% standard formula.