I was quite alarmed to read this document from the Guy Carpenter crew on Reinsurance and Counterparty risk thoughts under Solvency II.
In particular, they are assuming the transitionals will actually materialise and be applied at their (currently draft) stated limits (bottom of p2) - "Allowed up to 10 years to fully implement areas of Solvency II such as the fair valuation of assets and liabilities"!
I still think I must be reading this wrong, as that would be a hideous and, according to the EIOPA Chair, utterly inaccurate way to interpret the purpose of the transitionals.
They do however give a nod towards the obvious regulatory shortages, as well as an intriguing piece about a conference call with the French regulator about the potential of a "trial year" with parallel operation of Sol I and II
An online repository for Solvency II, ERM and Corporate Governance material and comment from the Principal of Governance Matters, an independent Risk Consultancy firm based on the Isle of Man.
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