NEW INSURANCE RULES FAIL TO MAKE LIFE EASIER FOR INVESTORS (Insurance Daily Abstract)
By Oliver Ralph
A report from Autonomous Research and Willis Towers Watson concludes that the EUís Solvency II insurance rules are not helping investors get a clear picture of insurersí financial health. Introduced in 2016 Solvency II was supposed to make it easier for investors to evaluate and compare insurers across the EU. According to the research the new rules have added little clarity to the insurance industryís complex financial reporting. The researchers studied the accounts from 31 European insurers with a combined market capitalization of 456 billion euros. They found that insurersí capital ratios were generally healthy. But the researchers said that the combination of Solvency II and existing financial accounting rules has made it difficult for investors to gauge how much cash insurers are generating and how much can be paid out as dividends.