ERM frameworks [35]

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Bullet points include: Prior to Solvency II, European insurers subject to Solvency I. Although some jurisdictions, e.g. UK, have already moved towards a Solvency II like regime, e.g. ‘realistic’ balance sheets and ICAS own-assessment regime. Solvency I a set of minor changes to prudential framework dating back to EU directives covering general insurance (1973) and life insurance (1979). Capital calculated based on premium income and technical provisions. Anomalies. Premium income up without liabilities up then capital requirements up. Technical provisions were not calculated consistently between countries, and were not usually market consistent (so did not represent a good estimate of cost to transfer assets and liabilities to someone else)

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