Ahead of Solvency II, Asset Liability Management Looms Large for Managers

Solvency II, the European regulatory initiative mandating risk-based capital requirements for insurance firms, is set to acutely affect asset managers when fully implemented at the start of 2014. Numbers tell the story: European insurance assets account for nearly €7 trillion ($8.5 trillion), much of it managed globally. Two regulatory priorities—capital charge ratios (Pillar I) and disclosure requirements (Pillar III)—mean managers are likely to augment their product offerin