How capital requirements rules will impact UK GI
By now, most UK insurers have started to prepare for Solvency II. Many will adopt the standard formula for calculating their capital requirement. Others are developing their own internal models.
For brokers, the changes introduced by Solvency II will show up in how they’re asked to supply risk data to insurers. The focus on systems and data transparency introduced by the regulation will require higher quality, more timely data. Much of this will flow from brokers.
And there will be affects on the shape of the market: further consolidation has been predicted among brokers and insurers; and some lines of business may become prohibitively dear.
This month’s Knowledge unpicks the knotty subject of Solvency II, and what it means for UK general insurance.
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