Jason Noronha, Head of Actuarial and Analytics at
Aon, who heads the firm's non-life insurance actuarial
consulting team, clarifies Solvency II regulations as they relate
to reinsurance from Guernsey.
It is not unusual to encounter confusion in the European market
around purchasing reinsurance from a Guernsey-based company and
whether you will be able to take credit for that as a European
insurer.
Under Solvency II (SII) every firm has to calculate a regulatory
capital number. There are two ways they can do that, build their
own internal model, or they can apply a very complex standard
formula.
Those with an outwards reinsurance programme, can, in many
places, allow for that reinsurance in that Solvency capital
allocation.
