Solvency II: Burden or opportunity?

Insurers that are currently worried about the implications of Solvency II should take a positive view of the process, says Richard Rodriguez of actuarial firm EMB. Far from threatening to be an unnecessary burden, it can help firms achieve their financial objectives.

Many senior insurance and reinsurance executives find Solvency II, and specifically the proposals around risk-based regulation, a daunting prospect. This applies not just to people based in Europe, but also to Asia, southern Africa and other regions where they are watching the process with great interest. There is a view that whatever Europe decides will form a benchmark for much of the rest of the world; indeed this has already started to happen.