Keynote speech Andreas Brandstetter President, Insurance Europe Chairman & CEO, UNIQA Insurance Group, Austria
Solvency II Two years on and two reviews 2
Europe’s largest institutional investor €10trn 62% of EU GDP Insurers’ investment in the Ratio of the investment European economy portfolio to EU GDP 3
A long journey … and it is not over yet Application of Solvency II 2000 – 2016 (January 2016) Infrastructure (April 2016) STS securitisations (June 2016) 2018 review (Level 2) (December 2018) EC fitness check on supervisory reporting 2020 review (December 2019) (Levels 1+2) (December 2020)
Risk margin €200bn €1bn Amount set aside by Amount required based industry on 1-in-200 calibration
Long- term investment ≠ trading Long- term risk ≠ trading 6
Effects of Solvency II Positive impact on: Risk management and governance Data quality Asset-liability management 7
BUT…
Effects of Solvency II Negative impact on: Long-term savings products with guarantees Long-term investment 9
The EU pension saving gap NEW FORMS OF GENDER MOBILE WORKERS EMPLOYMENT 37% 14% 3.7% Percentage by which of EU working population of EU working population women’s average are self-employed are mobile workers pension is lower than men’s
Variability of income across Europe Net average monthly salary (after tax) < €800 < €2000 < €3000 > €3000
Solvency II = shifting the risks on to individuals RISK INSURANCE COMPANY 12
More, safer Improved + = PEPP pension Solvency II savings 13
Insurers’ roles in promoting sustainability INVESTING PREVENTING PROTECTING 14
Improving Solvency II SOLUTIONS PROBLEM Capital Markets Union 2018 review 2020 review Infrastructure Equity (unlisted and Other long-term listed ) investments STS securitisations Solvency II Unrated debt doesn’t reflect Risk margin — CoC Risk margin long-term Discount rates (MA, business VA, etc.) 15
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