Nordic experience informs Solvency II LTG debate
Gideon Benari, Editor, Solvency II Wire
The debate on the treatment of long-term guarantee (LTG) products under Solvency II rages on. Regardless of the outcome of EIOPA’s impact assessment, questions will remain about how LTG products and investments (be they annuities, pensions and the like) should be evaluated and regulated in a market consistent regime.The LTG Symposium published last year tackles some of the key concerns and theoretical arguments of the debate. The Nordic LTG Symposium builds on this important body of knowledge bringing the perspective of a region where market consistent valuation of the whole balance sheet and risk-based supervision, stalwarts of Solvency II, have been in place for some time. The Nordic LTG Symposium brings together perspectives from Denmark, Finland and Sweden, the three Nordic countries which are also members of the European Union (Norway and Iceland are not part of the European Union, although Iceland is currently applying for membership). The authors, all senior members of their respective national insurance associations, share some of the experiences surrounding the financial crisis and offer valuable lessons for Solvency II and the LTG debate.