Commission Considering How to Put VC Risk "on the Map" For Insurers
The European Commission is drafting guidance to help insurers map their exposure to venture‑capital (VC) investments, a segment that has grown sharply in recent years. The proposal seeks to plug gaps in Solvency II by introducing standardized reporting and stress‑testing for VC‑related risk. Insurers would need to disclose portfolio allocations, risk‑adjusted returns and potential loss scenarios under the new framework. The move aims to improve market transparency and ensure capital adequacy amid higher‑yield, higher‑volatility assets.
Potential Super El Niño Reshapes 2026 Hurricane Season Risk for Insurers
A potential super El Niño developing this year is expected to intensify the 2026 Atlantic hurricane season, pushing storm frequency and intensity well above climatological norms. Forecasts from Colorado State University and Tropical Storm Risk suggest a 30% rise in the...
Europe Is Not Moving Fast Enough on Global Risks, Says Insurance Europe President
The president of Insurance Europe warned that the continent is lagging in addressing systemic global risks such as climate change, cyber threats, and future pandemics. He highlighted gaps in regulatory coordination, risk‑modeling standards, and capital allocation that could undermine insurer...
Regulators Crank up the Pressure on Funded Reinsurance
Regulators are tightening oversight of funded reinsurance, signaling a shift from the sector's rapid expansion to a more disciplined growth phase. In the United States, the NAIC has proposed stricter capital requirements, while the European Union is amending Solvency II to...
IUA Members Find "Stretching" PRA GI Stress Test "Valuable"
The Prudential Regulation Authority’s Dynamic General Insurance Stress Test (DyGIST) ran in May, exposing UK insurers to extreme scenarios such as a coordinated cyber‑attack, global financial downturn, major U.S. earthquake, hurricane and a severe UK windstorm, plus reinsurance resilience checks....
War Overtakes Civil Unrest as Top Political Violence Concern
A recent InsuranceERM survey shows war has eclipsed civil unrest as the leading political‑violence concern for insurers. More than half of respondents now rank war risk above civil unrest, driving a 22% year‑over‑year rise in war‑related premium volumes. The shift...
Parts of England Could Become "Unviable" Without Flood Resilience Reform
A new analysis warns that without accelerated flood‑resilience reform, large swathes of England could become financially unviable. Climate‑driven flood frequency is set to double by 2050, pushing insurance premiums up to 30% in high‑risk areas. The report, citing Pensions Insurance...
Aviva Makes "Good Progress" On Direct Line Integration with £350m of Synergies Expected This Year
Aviva says integration of Direct Line is moving ahead smoothly and expects to deliver around £350 million of synergies by the end of the current fiscal year. The insurer highlighted progress on IT migration, claims handling and product alignment, while confirming...
Pacific Life Re Backs Japanese Reforms to Support Asset-Intensive Reinsurance Market
Pacific Life Re has publicly supported Japan's latest regulatory reforms aimed at strengthening its asset‑intensive reinsurance sector. The proposals focus on modernizing capital requirements, expanding permissible investment assets, and tightening risk‑management standards. By endorsing these changes, Pacific Life Re signals...
IFoA Confirms Alex Waite as Next President-Elect
The Institute and Faculty of Actuaries (IFoA) has confirmed Alex Waite as its president‑elect, set to assume the role in September 2026. Waite, a veteran of the IFoA’s professional standards board, will succeed outgoing President Paul Sweeting. The announcement follows...
IUA Brings Out Solvent Exit Analysis Guide
The International Underwriting Association (IUA) has issued a solvent exit analysis guide for insurers, timed for the Prudential Regulatory Authority’s (PRA) new requirement that takes effect on 30 June. The guide outlines the regulator’s expectations, practical steps and real‑world examples from...
UK Matching Adjustment 2025 Review: Gilt-Y Pleasures
The UK’s 2025 Matching Adjustment (MA) review highlights a growing appetite among life insurers for sovereign‑bond strategies, particularly UK gilts. Insurers are allocating a larger share of their MA‑eligible portfolios to government debt, while only a modest fraction are exploiting...
Germany Passes Pension Reform Set to Reshape the Nation's Life Insurance Market
Germany’s parliament approved a sweeping pension reform that lowers the statutory guaranteed interest rate and adds a capital‑market component to the public pension scheme. The legislation also raises the statutory retirement age to 67 and tightens solvency oversight for providers....
Hong Kong Insurance Authority Issues Consultation Conclusions on RBC Enhancements
The Hong Kong Insurance Authority (HKIA) released the conclusions of its public consultation on proposed enhancements to the Risk‑Based Capital (RBC) framework. The final package tightens capital thresholds, introduces new risk‑weighting rules and mandates additional stress‑testing for emerging exposures. Insurers...
Private Credit Not a "Systemic Issue", Industry Says, Though Defaults May Climb
The private‑credit market, now surpassing $1.5 trillion in assets, is seeing a modest uptick in borrower defaults as interest rates climb and credit conditions tighten. Industry participants, including major fund managers, argue that the rising default rates—projected to reach roughly 4%...