Solvency Ratios – SCR, MCR

The Solvency Capital Requirements and the related solvency ratios (SCR Ratio) describes the concept of having assets available to cover your liabilities. In other words, if you have more assets than liabilities then you are solvent. The requirement itself is an amount in the company's functional currency. The ratio is a percentage. Solvency Capital Requirement Since Solvency II came into force at 1 January 2016 the rules for required capital…

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Possible delay of IFRS 17?

Possible delay of IFRS 17? Recently voices have been raised in this regards. As a result Insurance Europe, the European insurance and reinsurance federation, has called for the new IFRS 17┬ástandard to be reopened. And that the implementation of IFRS 17 is delayed by two years. The reason would be to address several underlying issues and allow time for companies to prepare. It said that the additional time would allow…

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Insurance Distribution Directive

This directive is a new regulatory regime for insurance distributors. It is effective as at 1 October 2018. The new regulation stems from EU's Insurance Distribution Directive - IDD. The IDD directive The directive adopted in 2016 seeks to improve consumer protection for insurance products. It is applicable to insurance intermediaries, insurance companies and online distribution. Information and transparency is key in the new regulation. In addition any conflicts of…

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