Risk Management in the Insurance Industry: A Comparison of Solvency II to U.S. Insurance Regulations

Deborah L. Lindberg and Deborah L. Seifert

Journal of Insurance Issues, 2015, vol. 38, issue 2, 233-243

Abstract: Solvency II is being enacted in the European Union (EU) to increase risk-based capital requirements and to reduce insurer failure rates to near zero (KPMG,2011). Many speculate that U.S. firms will be affected by the Solvency II regulations—not only because some insurers have an EU parent or subsidiary, but also because ofa belief that increased risk-based capital requirements will likely become the newexpectation around the world (Hay, 2011). Consequently, the cost of Solvency IIimplementation is a concern for both EU and U.S. insurers (Tuohy, 2011). However,others argue that the U.S. insurance industry already has a strong risk-based financialsolvency system in place, so additional regulations may not be needed to achieverecognition as being Solvency II–equivalent (NAIC, 2010; Veysey, 2011). The debateover Solvency II will continue for some time to come as the implementation date in theEU has been pushed back to January 1, 2016.

Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.insuranceissues.org/PDFs/382LS.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wri:journl:v:38:y:2015:i:2:p:233-243

Access Statistics for this article

Journal of Insurance Issues is currently edited by James Barrese

More articles in Journal of Insurance Issues from Western Risk and Insurance Association
Bibliographic data for series maintained by James Barrese ().