More complex risks will come with increasing reinsurance
Munich Re’s chief risk officer Joachim Oechslin says insurers will get better credit ratings putting more risk with reinsurers rather than by diversifying their risk to meet Solvency II rules, the FT reports.
Oechslin says that reinsurers will take on more volatile, complex or extreme risks.
The FT reports fears that if Solvency II rules work like the Basel II rules for banks they will force firms to diversify risks to lower their capital requirements.
Everyone became alike
Andrew Haldane of the Bank of England has argued, this made perfect sense for banks individually, but led them to become increasingly alike and so undermined the stability of the system, the FT says.
Munich Re’s Oechslin says insurers' new capital rules will not be as influenced by market movements as those for banks.
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
