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Keynote speech Andreas Brandstetter
President, Insurance Europe Chairman & CEO, UNIQA Insurance Group, Austria
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Solvency II
Two years on and two reviews
Andreas Brandstetter President, Insurance Europe Chairman & - - PowerPoint PPT Presentation
Andreas Brandstetter President, Insurance Europe Chairman & - - PowerPoint PPT Presentation
Keynote speech Andreas Brandstetter President, Insurance Europe Chairman & CEO, UNIQA Insurance Group, Austria Solvency II Two years on and two reviews 2 Europes largest institutional investor 10trn 62% of EU GDP Insurers
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Europe’s largest institutional investor
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€10trn
62% of EU GDP
Ratio of the investment portfolio to EU GDP Insurers’ investment in the European economy
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A long journey … and it is not over yet
Application of Solvency II
(January 2016)Infrastructure
(April 2016)STS securitisations
(June 2016)2018 review (Level 2)
(December 2018)EC fitness check
- n supervisory
reporting
(December 2019)2020 review (Levels 1+2)
(December 2020) 2000–2016 SLIDE 5
Risk margin
Amount set aside by industry
€200bn
Amount required based
- n 1-in-200 calibration
€1bn
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Long-term risk ≠ trading
Long-term investment ≠ trading
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Effects of Solvency II
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Positive impact on: Risk management and governance Data quality Asset-liability management
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BUT…
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Effects of Solvency II
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Negative impact on: Long-term savings products with guarantees Long-term investment
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The EU pension saving gap
MOBILE WORKERS GENDER NEW FORMS OF EMPLOYMENT
37%
14%
- f EU working population
are self-employed
- f EU working population
are mobile workers
3.7%
Percentage by which women’s average pension is lower than men’s
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Variability of income across Europe
Net average monthly salary (after tax) < €800 < €2000 < €3000 > €3000
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Solvency II = shifting the risks on to individuals
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RISK
INSURANCE COMPANY SLIDE 13
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=
Improved Solvency II More, safer pension savings PEPP
+
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Insurers’ roles in promoting sustainability
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INVESTING PREVENTING PROTECTING
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Improving Solvency II
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Solvency II doesn’t reflect long-term business
Infrastructure STS securitisations
Capital Markets Union
Equity (unlisted and listed) Unrated debt
2018 review
Other long-term investments
2020 review
Risk margin — CoC Risk margin Discount rates (MA, VA, etc.)
PROBLEM SOLUTIONS