Skadden is one of only a few global law firms that have an insurance practice focusing on transactional, finance and regulatory matters, with experience in the U.S., U.K. and throughout Asia, Europe and Latin America. This experience allows us to provide sophisticated full-service insurance transactional advice regardless of transaction size: Whether a high-profile industry transaction or a smaller deal with strategic importance for our clients, we bring the same dedication and experience to every matter. Below please find links to our chapters from and podcasts on The Standard Formula: Encyclopaedia of Prudential Solvency and A Guide to Solvency.
The Standard Formula: Encyclopaedia of Prudential Solvency
Our Encyclopaedia of Prudential Solvency features an in-depth look at prudential solvency requirements around the globe.
Chapter 1: The IAIS and the ICS – Chapter, Podcast
Chapter 1 examines the objectives of the International Association of Insurance Supervisors and its adoption of the Insurance Capital Standard as it seeks to deliver a common framework for prudential solvency.
Chapter 2: The Bermuda Prudential Solvency Regime – Chapter, Podcast
Chapter 2 discusses all aspects of the Bermudian prudential solvency regime and explores the country’s position as a global center for insurance and reinsurance. We also examine how Bermuda’s rapid market growth has led to greater scrutiny from onshore regulators and will surely result in further regulatory evolution.
Chapter 3: Prudential Insurance Regulation in Japan – Chapter, Podcast
Chapter 3 delves into prudential insurance regulation in Japan, which is an attractive market for foreign insurers currently undergoing change. We look at key considerations for insurers and reinsurers, and the Financial Services Agency's regulatory efforts to balance the factors facing its booming insurance sector, the world's fourth-largest insurance market.
Chapter 4: The Prudential Solvency Regime of the Cayman Islands – Chapter, Podcast
Chapter 4 considers the prudential solvency regime of the Cayman Islands, seeking to understand this popular destination for (re)insurers. We examine the regulatory requirements in the Cayman Islands for various classes of insurer and consider the benefits of a flexible regulatory regime, allowing for bespoke structuring options.
Chapter 5: Prudential Solvency Regimes in the Middle East – Chapter, Podcast
The next chapter of Skadden’s Encyclopaedia of Prudential Solvency discusses the prudential solvency regimes in the Middle East. We look at the regulatory frameworks of the major jurisdictions in the region, including financial free zones.
The Standard Formula: A Guide to Solvency II
Our Guide to Solvency II features an in-depth look at the Solvency II prudential regime for insurance and reinsurance undertakings,including coverage of Solvency UK.
Chapter 1: Own Funds – Chapter, Podcast
Our first chapter covers own funds, which constitute an insurer's regulatory capital.
Chapter 2: Reinsurance and Risk Transfer – Chapter, Podcast
Chapter 2 details the various components involved in the transfer of risk from an insurer to a reinsurer.
Chapter 3: Cross-Border Services and Overseas Branches – Chapter, Podcast
Chapter 3 discusses the provision of insurance and reinsurance from one jurisdiction into another, and the applicable regimes in place in the EEA and UK.
Chapter 4: Groups – Chapter, Podcast
Chapter 4 delivers a detailed analysis of the rules on insurance group supervision under the UK’s Solvency II. Topics include group types, applicable rules and considerations, solvency calculations and internal models.
Chapter 5: The Matching Adjustment – Chapter, Podcast
Chapter 5 of our guide delivers a detailed analysis of the rules on the matching adjustment under the UK’s Solvency II, which allow discounting of certain long-term liabilities at a higher rate in prescribed circumstances.
Other Publications
Outside of the Standard Formula series, we also release a number of relevant articles and client updates regularly.
FCA Premium Finance Study: Concerns Raised but No Regulatory Changes Proposed – Article
Preliminary findings from the FCA’s market study of insurance premium finance highlight concerns about affordability, value and transparency, but so far the FCA has not proposed limits on annual percentage rates (APRs) or commissions.
UK’s Proposed New Captive Insurer Regime: Key Developments and Next Steps – Article
The UK government has proposed a new regulatory framework for captive insurance companies, aiming to simplify regulations and enhance competitiveness in the financial services sector. Skadden attorneys examine the key elements of the new regime and look to the path forward.
The PRA’s Views on the BPA Market and the Matching Adjustment Investment Accelerator – Article
In a speech, the executive director of insurance supervision at the UK PRA set out observations on growth in bulk purchase annuity deals. He also highlighted various PRA reforms, including reforms to the matching adjustment regime.
The Bermuda Monetary Authority Reflects on the Increasing Prevalence of Asset-Intensive Reinsurance – Article
A report from the Bermuda Monetary Authority outlines the regulators’ approach to the growth of funded and asset-intensive reinsurance (AIR) in Bermuda — views that will be of interest to both reinsurers and asset managers.
International Association of Insurance Supervisors Consults on Structural Shifts in the Life Insurance Sector – Article
The International Association of Insurance Supervisors published a draft consultation paper on structural shifts relating to the increased prevalence of funded or asset-intensive reinsurance in the life insurance sector and the use of alternative assets.
Policy Updates From the UK Prudential Regulation Authority – Article
The PRA mandated detailed solvent exit planning by insurers. It also proposed requiring new reports on operational incidents and third-party risks, and submission of more detailed data on insurers’ liquidity positions and risks.
PRA and FCA Offer New Guidance on How Changes in Control Will Be Assessed – Article
A joint statement from UK regulators provides new details about who may be deemed a controller when private equity, venture capital and hedge funds invest in UK-regulated financial businesses, and what information regulators may seek.
Regulators Tighten the Reins: Scrutinising Non-Financial Misconduct Rules in Lloyd’s – Article
The insurance marketplace Lloyd’s of London recently published a consultation paper proposing extensive changes to its regulatory powers relating to conduct matters. The changes seek to modernize the framework within the Lloyd’s market for addressing poor conduct and behaviors, covering both financial and non-financial misconduct.