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Solvency II presents capital challenges for Euro insurers

European insurers may need to adjust their capital reserves for the upcoming Solvency II regulation regime, according to a ratings agency chief.

Speaking at last week’s European Insurance Forum, AM Best’s Vasilis Katsipis said while it is unlikely Solvency II will force insurers to increase capital dramatically, some non-life insurers will need to boost their capital.

But reinsurers are least likely to be affected.

Mr Katsipis says one in five non-life companies could face problems, particularly smaller operations such as mutuals and captives, according to industry media reports.