Solvency 2, IORP… The European Union is revisiting its regulatory toolkit looking for increasing protection of policyholders and reducing the financial systemic risk. The introduction of these so-called “risk-based regulations” aims at i) adapting the required capital of financial institutions based on their risk profile, ii) implementing a fit and proper governance to improve the risk management policy of the firms, and iii) expanding the set of reporting to be communicated to the regulators and the public.
Solvency has had a major impact on the whole insurance industry value chain. In particular asset managers had to address a greater deal of transparency on the funds they manage. Among the several initiatives launched to tackle this “look-through” challenge the most significant breakthrough is likely to be the elaboration of the TPT