Candidates on Solvency II contracts receive £900 per day in UK ... but now they are receiving offers from rival firms of up to £1100 a day - the equivalent of an annual salary of around £275,000.
A year ago, the rate was just £600. Candidates are being offered bonuses of up to 25% just to stay in their current job for six months.
Does London FSA complain about Lloyd's? No... It is the other way around... Lloyd's of London said staffing issues at the U.K.'s Financial Services Authority may be hindering the supervisor's attempts to process applications from insurance companies seeking to comply with Solvency II.
Lloyd's financial director Luke Savage complained ... the FSA was losing staff and hiring "rookies" leading to fears the organization may adopt a box-ticking approach when assessing the wave of applications.
The Bank of England and the Financial Services Authority have published a new paper about the incoming insurance regulator, the Prudential Regulation Authority (PRA), headed by current FSA chief executive Hector Sants.
The PRA will regulate around 336 UK general insurers and another 300 from elsewhere in Europe, as well as 123 life insurers and 132 London market insurers.
PwC has recruited James Quin to lead PwC's insurance market reporting business in Europ and help insurers respond to the challenges posed by Solvency II and IFRS Phase II.
The European Insurance and Occupational Pensions Authority (EIOPA) have announced the results of its second European insurance stress test.
According to EIOPA, about 10% of European insurers would fail to meet future minimum capital requirements in an adverse macroeconomic scenario, but overall, the sector is well capitalized and well prepared for shocks, Europe's insurance regulator said Monday.
Six groups, or 5% of the companies tested, would fail the sovereign-stress segment of the adverse scenario.
India is far from the Solvency II norms... and they do not care about it, do they?
"We haven’t said we will accept it. It’s a risk-based model, our country does not have that statistical database to go for that. I don’t think we have taken a position on whether we will be using Solvency II. Solvency II is an European process. In India we have a factor-based process of solvency, which is formula centric. We are comfortable with that," said RK Nair, member (F&I), Insurance Regulatory and Development Authority.
An interesting conference about the regulatory competition among countries
Hedge Fund Re-domiciliation for Managers Conference 2011
Although the conference was about the regulatory benefits of key hedge fund jurisdictions, we have a very similar competition among key insurance and reinsurance jurisdictions, especially after the Solvency II Directive.
According to Cheryl Packwood, CEO of Business Bermuda: “The Hedge Fund Re-domiciliation conference is an important event and an excellent opportunity to discuss the benefits of Bermuda’s legal and regulatory framework as well as the cost advantages of basing in Bermuda for asset and fund managers such as lower costs, practical efficiencies associated with the use of private placement regimes and access to the many other benefits such as Bermuda’s tax neutrality or no remuneration caps, which can be attractive to investors.” Could he speak about insurance and reinsurance? Absolutely.
Which are the main factors currently driving the re-domiciliation of hedge funds and the relocation of hedge fund managers?
1. Increased taxes
2. New regulation
3. Investor flight to quality and transparency
Interesting presentation at the conference:
Comparing Key Jurisdictions & Their Attractiveness for Funds and Managers
- Finding the best jurisdiction for your needs, assessing strengths and weaknesses
- Local regulatory and fund structures available
- Taxation of the fund and the manager
- Internal and external factors to be assessed
- Assessing whether to move
Which were the conference sponsors?
1. Business Bermuda is the business organization of Bermuda resident service providers and international businesses which provide quality banking, insurance, reinsurance, legal, accounting, financial, trust, management and e-commerce services and products.
Working alongside the Government and Bermuda’s international business industry to advance and promote Bermuda as one of the world’s foremost centres for international business.
The Solvency ii Association is the largest Association of Solvency II professionals in the world - http://www.solvency-ii-association.com.
George Lekatis is the General Manager and Chief Compliance Consultant of Compliance LLC, a leading provider of risk and compliance training and executive coaching in 36 countries.
George has more than 17,000 hours experience as a professional speaker and seminar leader. He has worked for more than 15 years as a management consultant and educator and has demonstrated exceptional presentation and communication skills.
George is the president of the Basel ii Compliance Professionals Association (BCPA, www.basel-ii-association.com), the largest association of Basel ii professionals in the world, the Basel iii Compliance Professionals Association (BiiiCPA, www.basel-iii-association.com), the largest association of Basel iii professionals in the world, the Sarbanes Oxley Compliance Professionals Association (SOXCPA, www.sarbanes-oxley-association.com), the largest Association of Sarbanes Oxley professionals in the world, and the Solvency II Association (www.solvency-ii-association.com), which is also the largest Association of Solvency II professionals in the world.
George is an expert witness, qualified to investigate and testify about risk and compliance management standards, policies, procedures, best practices, due care and due diligence.
President of the Solvency ii Association
General Manager and Chief Compliance Consultant, Compliance LLC
1200 G Street NW Suite 800, Washington DC 20005, USA
Tel: (202) 449-9750
HQ: 1220 N. Market Street Suite 804, Wilmington DE 19801, USA
Tel: (302) 342-8828