New capital rules need fine-tuning to reflect crisis, Fitch

The equity risk charge may need to be increased, and correlations between various risk modules may need to be adjusted

Rating agency Fitch said the European Union’s newly minted Solvency II regulations are a great leap forward in a recent comment on European insurance. If the regulations are well implemented, levels of policyholder protection will improve and in turn raise public and investor confidence in the insurance sector, Fitch said.