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For instance, outside Europe many other countries are looking to reform solvency rules, including the US and parts of Latin America and Asia. In addition to tougher capital rules, insurers are also soon to be subjected to additional layers of international regulation, the speakers at the event explained.
International groups will be covered by a new framework being developed by the International Association of Insurance Supervisors (IAIS), known as ComFrame, while the Financial Stability Board (FSB) is expected to begin identifying Globally Systemically Important Insurers (G-SIIs) from April 2013.
Since the financial crisis, a trend towards regulatory complexity and conservatism has emerged, said Olav Jones, Deputy Director General and Head of Economics and Finance at trade body Insurance Europe.
New layers of regulation are a spillover from banking, said Philippe Brahin, Head of Governmental Affairs and Sustainability at Swiss Re. Reforms are also being introduced in a challenging macro-economic environment, he said. There are also fears that ComFrame could result in an additional layer of global capital requirements on top of national requirements, said Mr Brahin.
Solvency II remains a growing cause of frustration for European insurers as criticism over delays and its increasing complexity mount. Delays to Solvency II are frustrating and its time line now seems 'incredible', said Julian Adams, Director, Insurance Division at the UK's Financial Services Authority. As a result, the FSA is now looking at how it can help the industry reap the benefits of preparations for Solvency II without incurring additional compliance burden.
A phased approach could see insurers use Solvency II-style Own Risk and Solvency Assessments in the ICA submissions, said Mr Adams. But the regulator will not look for early implementation of the more burdensome aspects of Solvency II, such as intensive reporting requirements.