Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
Quick links:
  • Home
  • The Actuary Issues
  • July 2015
07

Multinationals face extra hurdles under Solvency II

Open-access content 31st July 2015

Multinational insurers with offices outside the EU will need to define how they are supervised as a group under the Solvency II directive.


31 JULY 2015 | BY CINTIA CHEONG

The Prudential Regulatory Authority (PRA) said firms should define "as a matter of urgency" whether they are part of an insurance group within a financial conglomerate, because this would affect their Solvency II requirements.

Jonathan Drake, partner at Bond Dickinson, said defining a group would be a challenge. "It's a particular problem for insurers in the UK whose ultimate parent companies are outside the EU, because of the way in which the directive sets up the requirements for where supervision has to take place," he said.

He said the next consideration was which jurisdiction the group is supervised from. "If the group overall is an EU-headquartered group, then that doesn't pose any problems," he said. 

But if a UK firm has a holding company outside the EU then "there are questions where the supervision of that group should take place".

If the ultimate holding company is based in a jurisdiction with an equivalent to Solvency II, then those rules would apply, but if the company was based in a jurisdiction with no "equivalence", this could impact the way the regulator assesses it, Drake said.

According to the PRA, if the ultimate holding company is not based in a jurisdiction with an equivalence, the PRA may decide to apply the requirements of the directive to the worldwide group "as if it were based in the European Economic Area" or it may use "other methods" to define the objectives of group supervision. 

The PRA said firms could apply for a waiver which would be assessed on a case-by-case basis. 

This article appeared in our July 2015 issue of The Actuary.
Click here to view this issue
Filed in:
07
Topics:
Regulation Standards
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

GI Model development contractor

£700 - £1000 per day
Reference
119012

Pricing Actuary - Marine, Credit, Aviation

London (Central)
Total package circa £230K
Reference
119011

Capital Modelling Actuary

London, England
£70000 - £100000 per annum
Reference
119010
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2020 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, Level 5, 78 Chamber Street, London, E1 8BL. Tel: 020 7880 6200