View more on these topics

Solvency II may bring bulk move

Solvency II could push protection providers to bulk-transfer deals, says Pru Protect Actuarial and product director Deepak Jobanputra.

He said new capital requirements could bring opportunities for providers to transfer risk into the capital markets, similar to bulk annuity deals. He said reinsurers currently provide “tremendous” financial support for insurers but with initiatives like Solvency II happening around 2012 that will change things.

He added: “We have seen a few big deals such as annuity deals, being packaged up and put into the capital markets. Nothing yet on the protection side but I am sure it is only a matter of time before they are trading investments in the capital markets.”

RGA UK pricing and research actuary Eli Friedwald says by not bulk-transferring protection books, the life insurance market is being left behind compared with other product areas.

He says: “Life insurance has been left behind in comparison to annuities, partly because of bulk annuities. It is a mega business at the moment.”


Vanguard aims for DC market

Vanguard is looking to break into the UK defined-contribution pension market within the next three years following interest from scheme providers about including the firm’s index trackers in their investment line-up.

‘ABI on the wrong route in axing TPD’

Former Swiss Re head of life and health underwriting Jerry Brown says the Association of British Insurers is wrong to propose the removal of occupation-based total permanent disability from critical-illness insurance plans.

Budget summary – March 2016

This week’s Budget looked as if it would be a difficult one for the Chancellor, with disappointing economic numbers and the need to avoid ruffling feathers ahead of June’s in/out referendum. Nevertheless, Mr Osborne did spring a few surprises, including some tax reductions. So how does this budget affect you? If you are – or […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment