PRA Consultation Paper CP7/14

Solvency II: calculation of technical provisions and the use of internal models for general insurers This consultation paper was issued by the PRA in March 2014.  It is a short, accessible read and contains several helpful pointers to firms as they prepare for Solvency II.  The scope of the note is the set of general… Continue reading>

Changes in energy import/export patterns

There is a new paradigm evolving in energy requirements which will has potentially huge structural implications across several industries. This is illustrated in the graph below. We think insurance will be affected in several ways, here are just a few possible consequences: Acceleration in US economic recovery and resulting consequences of interest rate normalisation on… Continue reading>

Inflation challenges

We thought these two charts prepared using recent data from the UK Office for National Statistics tell an interesting tale: unstable and possibly declining inflation over the last few years coupled with a decline in real average weekly earnings over the period since the financial crisis broke. How best to capture this in pricing, reserving… Continue reading>