After more than 30 years of operating under simplistic, volume-based capital requirements and asset-allocation limits, Europe is considering change to its reserving and capital requirements to greatly reduce the widening gap between regulatory capital and economic capital. The three pillar system under consideration will significantly alter the methodology for determining capital requirements in EU countries.
The European Commission is likely to consider a draft framework for Solvency II requirements in July of 2007 with implementation expected in 2010-2011. This session covers the three-pillar approach derived from the Basel model—with Pillar One as the calculation of technical reserves and capital requirements, Pillar Two as supervisory review and Pillar Three as public and supervisory disclosures. Attendees will learn about methodologies to bring a risk-based approach to regulation. In addition, our panelists will discuss potential implementation dates and the implications to companies preparing for implementation.
Attendees will better understand how Solvency II might impact their companies, as well as gain insights into international practices in the assessment of capital adequacy that may offer greater perspective into evolving US regulation.