Regulatory changes most talked about among insurers: S&P
Recent discussions between investors and Standard & Poor's Ratings Services' insurance analytical team highlighted regulatory change as one of the most talked-about topics in the European insurance industry, the rating agency has said in a publication called EMEA Insurance Investor FAQ.
As the January implementation of Solvency II looms ever nearer, and following the International Association of Insurance Supervisors’ (IAIS) update on capital standards for globally systemically important insurers in October, regulatory developments are at the forefront of investors' minds, S&P said.
“What's more, the sluggish macro-economic environment and actions by central banks to support the recovery have affected investors' ability to find yield. And the European insurance industry has shared that pain during the prolonged period of historically low interest rates. The ongoing "lower for longer" scenario has prompted investor queries about how this will affect our ratings on European insurers, and which companies are most exposed to this risk,” the rating agency said.
Finally, late in the third quarter, pricing and M&A in the reinsurance market were two of the key themes that emerged at the annual reinsurance conference in Monte Carlo, it said. “As Jan. 1 renewals approach, two questions stand out: will prices continue to decline and will the consolidation wave roll on?”
