Management of Insurance Assets – Challenges and Opportunities Presented by Solvency II

by Dr. Boris Neubert, IDS GmbH

Insurers play a significant role in the market for fund investments: At the end of 2011, institutional investors dominated the European asset management market – constituting 75 % of total assets under management (AuM). Of this total, investments by insurance firms made up a large part (42 % of AuM). Moreover, insurers represent more than half of institutional clients in Italy, Portugal, France and Germany, and over 30 % in Austria, Bulgaria, Hungary, the UK and Greece.

Up to now, investments by insurers in the European Union were governed by the Solvency I Directive, along with legislative guidelines at national level. The solvency rules coming into effect with the preparatory phase for the European Solvency II Framework Directive 2014/2015 will bring about fundamental changes in the regulatory landscape.

The accompanying qualitative and quantitative guidelines for investment and reporting will also significantly impact the institutional client business of asset managers.

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Dr. Boris Neubert heads the Business Development Department at IDS GmbH _ Analysis and Reporting Services (IDS). During his 15 years of experience in the financial industry, he has put intensive work into crucial topics such as risk management and reporting by asset managers. He has authored numerous articles and, since 2010, has been an instructor at the Frankfurt School of Finance & Management.