Solvency II is due to come in to force on 1st January 2016. The new regulatory requirements, coupled with the current market context will have a huge impact on insurance companies. Based in Europe, Amundi is well versed in the implications of these regulatory changes and has built a dedicated platform to support insurers through the transition.
Amundi: providing insurers with robust expertise and multi-dimensional solution
Solvency II is a pivotal issue for insurers and asset managers alike. At Amundi, our teams are set up to address the three key areas, or pillars, of Solvency II. Our goal: to provide insurers with dedicated services, from look-through reporting to investment solutions under insurance constraints.
Look-through for funds and mandates: up to the third level if necessary for the funds managed by Amundi. Regarding the funds managed by third-party asset managers, look-through is subject to the collection of the required data and authorisation
Enriched market data: enriched line-by-line inventory in Ampère/TPT1 with or without CQS2, according to the client’s choice. This inventory can also include global Gross Market SCR3 as calculated by Amundi
Investment solutions under insurance constraints
Portfolios and asset allocation analysis and monitoring, in accordance with Solvency II requirements
Construction of solutions that decrease regulatory capital usage within the strategies
1. TPT : Tri Partite Template.
2. CQS : Credit Quality Steps.
3. Solvency Capital Requirement
In order to gain access to CQS and ratings data, we recommend our clients sign appropriate licenses with the rating agencies of their choice among which Amundi has signed: Standard & Poor’s, Moddy’s and Fitch.
Draft amendment on infrastructure investment
The low-interest environment has led insurers to seek out higher yielding investments as a steady source of income, sometimes turning to infrastructure financing projects.In this context, the European Commission plans to lower the capital charge in infrastructure investments. This draft amendment, released in late September, introduces new rules for calculating the capital charge for qualifying long-term investments for insurance companies.
Solvency II: a tight schedule
Solvency II is due to come in to force on 1st January 2016. The new regulatory requirements, coupled with the current complex environment will have a huge impact on insurance companies. Solvency II imposes new accounting and prudential constraints that follow a very tight delivery schedule. By 31st March 2015, the Solvency II Directive, including the amendments of Omnibus II, must be transposed into the legislative framework of each member state. The publication of ‘Implementing Technical Standards’ (ITS) is scheduled for September 2015. Other new requirements are already planned as the Financial Stability Board has formally launched discussions for the development of global capital requirements, including new regulations around capital usage.
The three pillars of Solvency II
For illustration only. May change without notice.
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Our analysis of Solvency II
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1- European Insurance and Occupational Pensions Authority 2- Solvency Capital Requirement
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