Exceptional pun in the headline aside (?), there was a few tasty pieces from the Insurance Day summit in chilly Bermuda at the end of last week. Not sure if these are free or not, but I didn't struggle this morning;
Bermuda Monetary Authority
- their man Jeremy Cox spoke, emphasising how mutually beneficial the Bermuda/EU market is, and why it justifies increased headcount spend to ensure equivalence. He also spoke of their 3 year roadmap to equivalence, as well as 6 areas where they have expanded their output to achieve equivalence.
Mike McGavick speech
- CEO of XL Capital chipped in with a more industrial quality speech, albeit making the salient point that, should Solvency II inadvertently lead to mergers and larger insurers, it would not be a systematically great thing.
He comments (ironically, bearing in mind my last two posts about soft launching) that because the EU like their version of the rulebook, then "everyone else should follow suit".
He followed that with "...why is it that we just have to swallow your [the EU's] proposal" - again, this seems a little misguided, bearing in mind the IAIS have xeroxed most of the Solvency II text and obligations, so this is not far off being international best-in-class, as opposed to being EU-centric.
Certainly didn't stay on the fence, and should be applauded for that at least.
NAIC CEO speech
Pretty blunt speech from the head of the National Association of Insurance Commisioner in the US - that, while she likes soome parts of Solvency II ("ORSA and some of those Pillar II things"), the Pillar I stuff will not wash over there. In particular, quite scathing about regulatory capital being used to incentivise good risk management.