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How the New Accounting Standards Cross Solvency II

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Abstract

The introduction of Solvency II new regulatory framework in the European Economic Area strongly impacts on adequacy activities required from insurance companies which are now facing a tighter and more demanding scenario in terms of capital requirements, availability of own funds, which are very sensitive to economic balance sheet assessment, a more robust system of governance and a largely standardized set of data and information to be disclosed. Different aspects of balance sheet evaluation and performance measurement are common with the new international accounting standards that will be effective in the next years (International Financial Reporting Standards [IFRS] 9 in 2018 for financial instruments, 2021 if deferral option will be applied by the entity, and IFRS 17 in 2021 for insurance products.). To avoid any misunderstandings on communication and transparency with financial markets, a clear explanation and reconciliation of figures from these two frameworks will pose a great challenge to the insurance sector which must undertake huge efforts for fully implementing both regulations in the next years.

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Author information

Authors and Affiliations

  1. PwC Advisory, Milan, Italy

    Alessandro Di Lorenzo & Lucia Magenta

Authors
  1. Alessandro Di Lorenzo
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  2. Lucia Magenta
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Editor information

Editors and Affiliations

  1. Fac. of Banking, Finance & Insurance Science, Catholic University of the Sacred Heart, Milan, Italy

    Pierpaolo Marano

  2. University of Genoa, Genova, Italy

    Michele Siri

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Di Lorenzo, A., Magenta, L. (2017). How the New Accounting Standards Cross Solvency II. In: Marano, P., Siri, M. (eds) Insurance Regulation in the European Union. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-61216-4_13

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  • DOI: https://doi.org/10.1007/978-3-319-61216-4_13

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  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-319-61215-7

  • Online ISBN: 978-3-319-61216-4

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

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