Insurers pass Solvency II test

Europe’s insurers have responded well to QIS 3, but with some firms failing the SCR, there is more work to do

Most insurers in Europe are comfortably able to meet the minimum capital requirement (MCR) under the measures used for Solvency II’s third quantitative impact study (QIS 3), but 16% of the 1,000 firms that took part in the exercise will need to raise additional capital to meet the solvency capital requirement (SCR). Non-life firms were more likely to have to raise capital – some 20% of participating firms were found to need more funds to meet the SCR against 13% of life firms and 18% of large firms.