Insurance Review, Fall 2008

Gearing up for a new capital management regime

A new capital management regime may be on the horizon for Canadian insurers. The European Union has begun to move from standardized, formulaic insolvency models to a capital management regime named Solvency II, a principles-based and risk-sensitive solvency regime aimed at mapping a company’s regulatory capital requirements against its risk profile. While full implementation won’t take place till 2012, Canadian companies should not only stay abreast of the policy’s development but also consider their own implementation strategies if a similar regime were unveiled here.

This Insurance Review issue shares details on Solvency II’s advancements and how it may affect Canadian insurers. It also discusses transfer pricing issues for the insurance industry and how chief information officers should prepare for International Financial Reporting Standards conversion.

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