During the Financial Crisis AIG clearly demonstrated why insurance companies need to be regulated, requiring over $150bn of government assistance. Following the GFC Solvency II was introduced with the aim of harmonising EU insurance regulation. Join Sukhy and Ted as they delve further into the world of EU insurance regulation.
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8 videos • 1 hour 21 minutes
In the first video of this series, Sukhy emphasises the importance of regulating insurance companies with reference to the infamous collapse of AIG during the financial crisis. Sukhy discusses the international role of the Financial Stability Board (FSB) in insurance regulation post-financial crisis.
Sukhy Kaur • 09:17
In the second video in Sukhy’s series, she discusses the equivalent of the ‘Basel Committee’ in insurance; the International Association of Insurance Supervisors, or IAIS. She then outlines the Insurance Core Principles, or ICPs before introducing global insurance regulators from the European Union, United States and Asia.
Sukhy Kaur • 15:29
In her previous video on Global Insurance Regulation Sukhy briefly touched upon capital requirements for insurers under Solvency 2, namely the Minimum Capital Requirement and Solvency Capital Requirement. In this video Sukhy explains these ratios in detail along with how they are calculated and applied to the insurance industry.
Sukhy Kaur • 09:54
In this video, Sukhy explains us about Own Funds and it's types - "Basic Own Funds" and "Ancillary Own Funds". She further highlights how much available capital Unlock Insurance has to cover its Minimum and Solvency Capital Requirements.
Sukhy Kaur • 10:01
It is evident that when an insurance company fails, this has an adverse impact on the policy holders as well as the FSCS due to the interconnectedness of the financial market. Therefore, there is an incentive to ensure that insurance companies are financially sound, well run with good corporate governance structures in place, and an appreciation of the risks that they are underwriting.
Ted Wainman • 06:16
The regulation of insurance companies has developed from the FSMA 2000 to the concept of ‘twin peaks’ regulation in 2010. Today the responsibility for regulation is split between the FCA (Financial Conduct Authority), the PRA (Prudential Regulation Authority) and the FPC (Financial Policy Committee).
Ted Wainman • 10:45
In this video Ted outlines how insurance companies are funded and how that capital is then regulated, including outlining key points of the Solvency II framework. Finally he outlines how insurance companies can prevent liquidity risk which could prevent it from paying out claims.
Ted Wainman • 06:07
In the final video on his series on "Insurance Capital & Regulation", Ted explains us about the five key segments of the market which includes "Life & health", "Property & casualty", "Multi-line insurers", "Reinsurers" and "Insurance brokers".
Ted Wainman • 14:10
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