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Daily Insurance Industry News
Monday 28th of May 2018
April 19, 2011

FSA adopts two-tier approach in Solvency II model approval

by Gill Montia

Story link: FSA adopts two-tier approach in Solvency II model approval

The Financial Services Authority (FSA) will be adopting a two-tier approach to assessing insurers’ new capital models under Solvency II, The Financial Times has reported.

According to the newspaper, the FSA’s head of insurance, Julian Adams, told an industry conference on Monday that the regulator will be focusing on larger insurers as resources will be stretched because firms are developing internal models to demonstrate the amount capital they hold against risk, rather than adopting the Solvency II standard model.

However, Mr Adams reassured his audience that smaller firms will still be able to get approval in time for the January 2013 deadline, the FT reports.

Last month, the Association of British Insurers published advice on the Solvency II internal model approval process in the first of a series of papers aimed at helping insurance companies implement the new regime.

Final Solvency II rules are incomplete but the ABI’s “sensible” approach to the model approval process forms the basis of its approach.

 

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