First in Series of Special Reports Examines Pillar One Capital Requirements For Insurers Doing Business in Europe
New York, March 10, 2011 – Guy Carpenter & Company, LLC, the leading global risk and reinsurance specialist and a member of Marsh & McLennan Companies (NYSE: MMC), today announced the release of a special report, Succeeding under Solvency II – Pillar One: Capital Requirements. The paper is the first in a series of Guy Carpenter reports analyzing Solvency II and its attendant issues as they are finalized over the next several months.
This first report focuses on Pillar I, which addresses the quantification of capital requirements for re/insurers seeking to serve the European marketplace. The paper examines:
- the process of transitioning to Solvency II;
- the impact on re/insurers, including niche players, small- to mid-size providers and large global re/insurance companies;
- the costs for implementation, model approval and ongoing compliance, as well as maintaining required levels of capital;
- key challenges and opportunities that are emerging under the new regulatory regime; and
- capital management strategies that can be used to reduce risk levels associated with Solvency II.
A full copy of the report is available on www.GCCapitalIdeas.com, Guy Carpenter’s intellectual capital website.
“Despite its nominally European focus, Solvency II presents a wide range of considerations – and opportunities – for insurance entities worldwide. All businesses with operations, subsidiaries or affiliates in Europe, writing coverage in Europe or doing business with insurers in Europe should be preparing now for these fundamental changes in the way that the European market will examine risk and risk management practices.”
– Claude Lefebvre, Head of GC Analytics – EMEA Region, Guy Carpenter & Company
“Solvency II’s impact is expected to be significant for most insurance organizations, and a potential challenge for others. With a disciplined, thoughtful approach to risk-related capital management, companies can take significant steps towards lessening this impact and even improving their competitive positioning as a result.”
– David Flandro, Global Head of Business Intelligence, Guy Carpenter & Company
About Guy Carpenter
Guy Carpenter & Company, LLC is the world’s leading risk and reinsurance specialist and a member of Marsh & McLennan Companies. With over 50 offices worldwide, Guy Carpenter creates and executes reinsurance solutions and delivers capital market solutions* for clients across the globe. The firm’s full breadth of services includes line of business expertise in Agriculture; Aviation; Casualty Clash; Construction and Engineering; Excess and Umbrella; Life, Accident and Health; Marine and Energy; Medical Professional Liability; Political Risk and Trade Credit; Professional Liability; Property; Retrocessional Reinsurance; Surety; Terrorism and Workers Compensation. GCFac® is Guy Carpenter’s dedicated global facultative reinsurance unit that provides placement strategies, timely market access and centralized management of facultative reinsurance solutions. In addition, GC AnalyticsSM utilizes industry-leading quantitative skills and modeling tools that optimize the reinsurance decision-making process and help make the firm’s clients more successful. Guy Carpenter’s website address is www.guycarp.com.
Guy Carpenter’s intellectual capital website, www.GCCapitalIdeas.com, leverages blog technology, including Real Simple Syndication (RSS) feeds and searchable category tags, to deliver Guy Carpenter’s latest research as soon as it is posted. In addition, articles can be delivered directly to BlackBerrys and other handheld devices.
