Analyzing Canada’s Prudential Solvency Regime
On the latest episode of “The Standard Formula,” host Robert Chaplin and colleague Chiara Iorizzo provide an overview of Canada’s prudential solvency regime, which is one of the most sophisticated and internationally integrated insurance markets worldwide. They outline the main principles of Canada’s regime, including the role that the Life Insurance Capital Adequacy Test, or LICAT, plays in assessing the capital strength of life insurers. In addition, they analyze the nation’s broader capital adequacy framework, as well as unique challenges for companies operating in Canada and how the country is preparing for the future of solvency regulation.
Analyzing India’s Fast-Growing Insurance Market
In the latest episode of “The Standard Formula,” host Rob Chaplin and colleague Anika Goodfellow review India’s insurance market, which is currently the 10th-largest in the world by total premium volume. They review how the insurance sector is regulated in India, including the unique rules for companies based in the country’s special economic zone, the GIFT City. They also detail recently enacted guidelines for collateralized reinsurance transactions and how the country is shifting its prudential solvency regime to a risk-based capital system to help bring the Indian insurance industry in line with international standards and catch up with peers in North America and Europe.
A Review of China’s Prudential Solvency Regime
In the latest episode of “The Standard Formula,” host Rob Chaplin and counsel Feargal Ryan analyze the prudential solvency regime of China, the second-largest insurance market in the world based on total premium value. They discuss how the insurance industry is regulated in the country, as well as how it offers unique opportunities to foreign insurers because of the size of its population, demographics and rapid economic development over the course of the past several decades. They also review formation and licensing requirements for new insurance and reinsurance companies, the current state of the country’s reinsurance marketplace and collateral requirements.
An Overview of the Prudential Solvency Regime in the United States
Host Rob Chaplin and colleague Chiara Iorizzo provide “The Standard Formula” listeners with a detailed look at the prudential solvency regime in the United States, one of the largest insurance markets in the world. They discuss how the insurance industry is regulated across the country, as well as how the National Association of Insurance Commissioners operates and interacts with state-level regulators. They also review how solvency capital is calculated in the U.S. and how companies licensed in multiple states must adhere to relevant laws in each jurisdiction, among other topics.
Assessing Prudential Solvency Regimes in the Middle East
Host Rob Chaplin and colleague Caroline Jaffer provide “The Standard Formula” listeners with an overview of prudential solvency regimes in five Middle East jurisdictions — the United Arab Emirates, Saudi Arabia, Qatar, Bahrain and Oman — during the fifth edition of the podcast's yearlong review of global insurance regimes. We discuss the regulatory frameworks and market conditions in each region and explore why the Middle East is expected to grow significantly as an insurance hub over the coming years, thanks in part to “financial free zones,” which operate with a significant degree of regulatory and legal independence from state-level authorities.
Examining the Cayman Islands’ Prudential Solvency Regime
Host Rob Chaplin is joined by associate James Pickstock to provide “The Standard Formula” listeners with an overview of the Cayman Islands’ prudential solvency regime. They explore how insurance is regulated in the jurisdiction, analyze why its optimization of capital and asset deployment is attractive to insurers, and examine how the Cayman Islands has aligned practices closer to U.S. solvency regimes as opposed to the EU’s Solvency II standard.
Assessing Prudential Insurance Regulation in Japan
Host Rob Chaplin is joined by colleague Annabel Smethurst to guide “The Standard Formula” listeners through the prudential solvency regime in Japan, the fourth-largest insurance market in the world. They explore why Japan is attractive to reinsurers, its regulatory evolution and the increased openness to foreign participation due to regulatory changes.
Analyzing Bermuda’s Prudential Solvency Regime
In the second episode of “The Standard Formula” podcast’s yearlong series on global prudential solvency requirements, host Rob Chaplin and colleague Abraham Alheyali detail the prudential solvency regime in Bermuda, a global center for insurance and reinsurance. They analyze Bermuda’s regulatory approach towards different types of insurers and reinsurers, the key concepts in the jurisdiction’s prudential regime, various requirements for capital backing and investments, and potential future regulatory changes.
Unpacking the IAIS’ Adoption of the Insurance Capital Standard
“The Standard Formula” host Rob Chaplin is joined by London associate Caroline Jaffer to discuss the International Association of Insurance Supervisors and its adoption of the Insurance Capital Standard, which represents a watershed moment in global insurance regulation. This episode kicks off our new, yearlong series focusing on global prudential solvency requirements, which will form the basis of our forthcoming publication, the Encyclopaedia of Prudential Solvency.
12 Key Insurance Regulatory Developments: A Look Back at This Year’s Highlights
As 2024 proved to be a significant year for regulatory change for insurers, we’ve compiled a list of some of the more noteworthy areas of development that shaped the industry. Listen to our final episode of the year as Skadden attorneys deliver a full round-up of updates and highlights for insurers from the last 12 months.
The SFCR and Other Public Reporting: A Solvency II Cornerstone
“The Standard Formula” host Rob Chaplin is joined by Chiara Iorizzo to delve into the crucial, yet complex, public reporting component of Solvency II. This episode explores the Solvency and Financial Condition Report requirements, external audit obligations and the role of the European Insurance and Occupational Pensions Authority in information disclosure.
Understanding the Supervision Component of Solvency II
“The Standard Formula” podcast presents listeners with a look at the supervision framework under Solvency II, and examines its purpose to protect policyholders while also promoting the safety and soundness of insurers. Host Rob Chaplin once again leads the discussion and is joined by colleague James Pickstock.
Insurers in Difficulty: Staying Compliant Under Solvency II
“The Standard Formula’s” Rob Chaplin once again gives listeners a look at how to address some of the intricacies of Solvency II. In this episode, he is joined by Feargal Ryan for a discussion on how insurers should navigate the Solvency II framework when they’re facing financial difficulty and failing to meet their solvency or minimum capital requirements.
Valuation of Assets and Liabilities Under Solvency II
On the latest episode of “The Standard Formula” podcast, Olivier Peeters joins host Rob Chaplin to discuss asset and liability valuation under Solvency II — important, as strategic asset allocation and investment management are key to an insurer’s business – and given moves towards greater use of alternative assets.
Governance Regulatory Compliance for Insurers
Under Solvency II, insurers are required to comply with strict governance guidelines. In this episode of “The Standard Formula,” host Rob Chaplin is joined by financial institutions regulatory partner Seb Barling for an in-depth look at the requirements, as well as complying with the own risk and solvency assessment process, outsourcing regulations and operational resilience.
Using an Internal Model to Calculate the Solvency Capital Requirement
Our latest episode of “The Standard Formula” Back to Basics series explores the internal model method for calculating the Solvency Capital Requirement. Host Rob Chaplin is joined by George Belcher to dissect the advantages and disadvantages of this model, as well as the necessary approval to use an internal method and the accompanying preparation phase, among related topics.
Dissecting the Solvency Capital Requirement
Continuing the “The Standard Formula” Back to Basics series, host Rob Chaplin, with colleague William Adams, take an in-depth look at one of Solvency II’s most complex and crucial provisions: the solvency capital requirement. They discuss how it’s calculated, how it works with the minimum capital requirement, and many more features.
Solvency II Back to Basics: Technical Provisions
In the latest installment of “The Standard Formula” Back to Basics series, podcast host and Europe financial institutions head Robert Chaplin is joined by colleague Mary Bonsu to provide listeners with a deeper understanding of technical provisions, including the various elements of technical provisions and how the provisions are calculated, among other topics.
Investment Rules for Insurers and Reinsurers
This episode of “The Standard Formula” podcast features a conversation with the Financial Institutions Group’s Ben Lyon and Verena Mengis, who walk listeners though recent proposals for reform relating to Solvency U.K. and the ESG movement. The in-depth discussion covers the prudent person principle, the pre-Solvency II regime, investment rules for specific asset classes and sustainability risk relevant to the insurance sector, among numerous other topics.
Understanding the UK’s Matching Adjustment Regime
“The Standard Formula” host Rob Chaplin is joined in this episode by colleague Theo Charalambous as they map out the intricacies of the U.K.’s matching adjustment regime for insurers, which will soon be reformed. The discussion dissects why Solvency II created the regime, which assets and liabilities are eligible and how the matching adjustment is calculated, among other areas of focus.
Group Supervision Under Solvency II
In our fourth installment of “The Standard Formula” Back to Basics series, host Robert Chaplin is joined by Feargal Ryan for a detailed discussion on group supervision under Solvency II. Topics covered include circumstances when U.K. Prudential Regulation Authority rules on supervision apply to a group, methods for calculating group solvency and how own funds requirements operate at a group level.
Developments on the Horizon for the UK Change-in-Control Regulatory Regime
In this episode of “The Standard Formula,” host Robert Chaplin is joined by colleague Olivier Peeters to guide listeners through the U.K.’s change-in-control regime for insurers and insurance brokers, and highlight important changes that regulators are putting forth.
Solvency II Back to Basics: Third Country Branches and Cross-Border Provision of Services
“The Standard Formula” podcast continues its Back to Basics series — a deep dive into the Solvency II regime — discussing the regime’s provisions regarding third country branches and the cross-border provision of services. For this third instalment in the series, host Robert Chaplin is joined by colleague Meher Pahuja to discuss the significance of this subject for insurers and the focus on competitiveness and growth in the U.K. market.
Reinsurance and Risk Transfer: Risk Mitigation Under the Solvency II Regime
In the second episode of the Back to Basics series, “Standard Formula” podcast host and insurance partner Rob Chaplin is joined by colleague Imad Mohammed Nazar to discuss reinsurance and risk transfer, including how reinsurance can allow insurance companies to spread their risks across multiple entities, reducing the potential impact of adverse underwriting experience.
Back to Basics: Exploring the Many Facets of the Solvency II Regime
“The Standard Formula” host Robert Chaplin introduced the first in the podcast’s Back to Basics series, which will dissect the entirety of the Solvency II regime. In the series’ inaugural episode, Rob is joined by associate David Wang to explore all aspects of own funds, the Solvency II term for items that constitute an insurer’s regulatory capital.
Understanding Insurance Resolution Regimes
Insurance partner Rob Chaplin is joined by colleague Lamya Al-Yazdi as they introduce our “Standard Formula” listeners to the three emergent insurance resolution regimes that deal with the failure, or potential failure, of insurers.
International Association of Insurance Supervisors: Who They Are and Their Industry Impact
Standard Formula host Rob Chaplin was joined by European counsel George Belcher and associate Feargal Ryan to discuss the International Association of Insurance Supervisors, including its main activities, future developments and current issues.
Bermuda Monetary Authority Proposes Enhancements to its Regulatory Regime
In our latest installment of “The Standard Formula” podcast, partner Rob Chaplin and associate Ilianna Kotini discuss the proposals made in the Bermuda Monetary Authority's latest consultation paper, which are focused on the BMA’s plan to enhance the regulatory and supervisory regime for commercial insurers and insurance groups. Given the wealth of business reinsured in Bermuda, the changes are of interest to the entire insurance industry.
Comparing Prudential Solvency Regulatory Regimes
In this episode of “The Standard Formula” podcast, partners Rob Chaplin and Patrick Lewis are joined by Neil Horner of Bermuda-based ASW Law to discuss and contrast EU/UK Solvency II, U.S. risk-based capital and the Bermuda solvency capital requirement, as well as equivalent rating agency requirements.
The Edinburgh Reforms: Big Bang 2.0 or Thoughtful Change?
In this episode of “The Standard Formula” podcast, host Robert Chaplin is joined by investment management partner Greg Norman to discuss the Edinburgh Reforms, which serve as the UK’s most significant divergence to date from EU financial services regulation. Although the Reforms focus on Brexit freedoms, many of the proposals are aimed at regulation that originates domestically and are intended to secure the UK’s status as a leading financial center.
UK Government Announces Post-Brexit Solvency II Reforms
In the first episode of our new podcast, host Robert Chaplin and guest Azad Ali, from Skadden’s UK and EU financial services practice, discuss the UK government’s recently announced post-Brexit Solvency II reforms. Known as Solvency UK, the reformed regime is expected to boost innovation, assist the government’s drive for investment and release a considerable amount of regulatory capital from UK carriers’ balance sheets.