Why Solvency II won’t replace the market use of ratings

Why Solvency II won't replace the market use of ratings

Although effectively communicating the output is likely to be critical for European re/insurers Periodically we hear the comment that the required publication by EU domiciled re/insurers of details on their financial health under Solvency II (SII) may remove market demand to see re/insurer ratings. Here at Litmus, we seriously doubt that. Fundamentally the information that will be disclosed under SII will have to be interpreted by the user in order

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Follow My Leader

Follow My Leader

A message for the rating agencies One of the key elements of the rating process is ‘competitive position’, which for reinsurers refers to their ability to attract and retain business in a tough market place.  The rating agencies understandably tend to believe that ‘pricing power’ is vital

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