Frederic Morlaye speaks to Risk.net on new investment opportunities that help handle capital requirements.
Insurers have increased their adoption of structured
solutions in line with the capital requirement for equity investments following
the implementation of Solvency II. Frederic Morlaye, Insurance and Capital
Management Solutions, Global Markets at BNP Paribas, is featured in Risk.net
discussing new investment opportunities in asset classes – that are usually greater
in terms of capital requirements – as more innovative strategies can balance
cost with risk mitigation and ensure full compliance under Solvency II.
"Solvency II is a framework with many moving parts; insurers must find the optimal strategy to deal with these conflicting elements, and there are a number of options. Insurers have a pot of capital to allocate to underwriting and asset allocation, and they must find a balance under Solvency II to get the best returns while still being able to live with volatility. This volatility can be tackled by investing in lower-risk strategies or by hedging."
BNP Paribas was named RMBS Bank of the Year and Asset Finance House of the Year at GlobalCapital's inaugural European Securitization Awards. At a time of rapid change in finance, is European structured finance making a comeback?