Webinar: Solvency II, the customer interest and the next crash
This event is taking place virtually, over Zoom. Click here to read the Zoom user guidance notes.
In 2020 I was working in regulation when volatility struck. All of the companies were tightly regulated. Nobody knew what to do. The losses were huge. I found it hard to believe that well-run companies could be deliberately exposed to such losses.
At the end of 2024 a trader in New York noted that 2024, when the S&P 500 index generated a return of 23%, was the 4th year of the previous 6 that delivered such a return.
The presentation is a journey into 2020 and 2022, the 2 years in which markets collapsed and losses were substantial. Results were far from 2024’s level. The focus is on the losses of these years from the point of view of 4 Irish life companies. Huge losses drove lapses. This was not in the consumer interest, even if everyone did their best in difficult conditions.
In 2022 ,4 Irish non life companies each made at least EUR 100 million in losses due to inflation. Premium rates increased as a result. This was not in the consumer interest.
Inflation and volatility are recurring risks. The question is whether such losses impacting life, non life and pensions can be avoided in future and if Solvency II has the answers. Can a consumer-friendly approach be found?
Solvency II’s history is examined for clues.
The insights of the presentation are not designed exclusively for life practitioners but also for those who work in non life and pensions roles.
Cathal Rabbitte qualified as an actuary in 1996. Extensive reinsurance experience in Europe and Asia. In 2020 I was working in regulation when volatility hit. For the last 2 years I have been researching inflation and volatility from the perspective of Solvency 2 and for answers to the key question of whether Solvency 2 can be used to protect balance sheets against inflation and volatility, in the consumer interest.