Insurers are already grappling with the effects of market volatility that emerged from the current economic turmoil. Once implemented, Solvency II will amplify the impact of market fluctuations, affecting insurers' capital levels and creating a clear priority for senior management to consider how best to manage balance sheet volatility and address the issues it will create.

The (re)insurance sector experienced historic catastrophe losses in 2011, many in areas not previously considered ‘peak' risks. Devastating earthquakes in Japan and New Zealand, floods in Thailand and Australia and a record-breaking tornado season in the United States contributed to insured losses in excess of USD100 billion. As carriers continue to penetrate new growth regions, ‘cold spot' losses are expected to increase.

The multiple challenges global insurers face today are well documented. We surveyed a number of insurers from around the world to see if future accounting changes (IASB and FASB draft comprehensive insurance contracts standards or "Phase II") is still a priority to global insurers. Some of the results of the survey were striking, so we have created a short summary of the results.

El Boletín Trimestral (BT), publicado por la Dirección General de Seguros y Fondos de Pensiones, (DGSFP), tiene por objeto, dar una visión global y periódica de la actividad y evolución del Sector Asegurador Español, tomando como fuente la documentación estadístico-contable trimestral (DEC).

El Boletín Trimestral (BT), publicado por la Dirección General de Seguros y Fondos de Pensiones, (DGSFP), tiene por objeto, dar una visión global y periódica de la actividad y evolución del Sector Asegurador Español, tomando como fuente la documentación estadístico-contable trimestral (DEC).

Many insurers, including both international groups and domestic operations, have legal entity, operating and capital structures that have evolved organically over time, partly as a result of mergers and acquisitions and partly from piecemeal initiatives, often driven by considerations of tax efficiency. As a consequence, the results can be complex and unwieldy involving multiple underwriting platforms, administration and service companies, and out-dated holding and finance structures which themselves lead to inefficiencies. Such inefficiencies include dividend traps, additional regulatory and compliance burdens, fragmented reporting and increased operating costs.

Swiss Re's economists say the environment for the insurance industry remains very challenging but expect a more positive outlook, particularly after 2012. This is the main finding of Swiss Re's latest publication "Global insurance review 2011 and outlook for 2012 and 2013", presented at the Swiss Re Economic Forum in London. The insurance industry has successfully restored its capital base to a higher level compared to the beginning of the financial crisis. Large catastrophic losses, but also low investment yields, will lower profitability this year, and weak economic growth in the mature markets will constrain life and non-life premium expansion. But non-life profits will improve again after markets harden, probably late next year. Premium growth for both life and non-life will grow in 2012 and further increase in 2013. Growth in emerging markets for both the life and non-life industries is expected to be in the range of 7-9% for 2012.

The City of London's position as a global financial centre makes it a natural partner for growing economies such as India and China as they develop their financial sectors. Building on and deepening our existing cooperation in financial services with India and China is a critical element of the City of London Corporation's international programme, guided by our Advisory Councils for India and China respectively, and delivered by the City of London's offices in Beijing, Mumbai and Shanghai.

Even before the recent financial crisis, the life insurance industry was experiencing a shift in customer trust and demand. The crisis and its aftermath have served as a catalyst to accelerate this trend with a consistent drop over the past five years in penetration for the global life insurance industry. Moreover, customer trust in the insurance industry is among the lowest when compared to other industries.

The global life insurance industry witnessed growth in 2010 mainly in the Asian region. The growth trend is likely to continue in 2011, although profit margins are expected to remain under pressure. Regional differences exist, with emerging markets growing at a faster rate than mature markets. The industry is witnessing shifting trends in front office, policy administration, and claims-the three core functions of the insurance value chain. In this paper, we explore key emerging trends in the claims management function as insurers continue to struggle with manual and time intensive claims processing functions.

More and more insurers are recognizing the need to migrate from their legacy policy administration systems to more modern, flexible systems, and interest is forecast to grow in the coming year. There are a number of business needs driving the interest in new policy administration systems, but foremost among them has been the lackluster economy. The past two years have been challenging ones for life and annuity carriers, who have experienced significant erosion of their investment returns. In light of this, insurers are taking a close look at systems that allow them to rapidly enter new markets, exit unprofitable ones, introduce uniquely differentiated products, and support diverse sale channels-all while improving operational efficiency and controlling costs.

While the majority of insurers (91 percent) believe future growth depends on providing a special customer experience, most of them do not currently see themselves as providing differentiated products and levels of service, according to findings of a global survey of 119 insurers by Accenture.

El 25% de las compañías aseguradoras muestra un retraso "significativo" en el control y medición de riesgos exigido para cumplir con Solvencia II, más aún cuando deben alcanzar estos requisitos antes de 2014, según un informe elaborado por la consultora everis.

The life insurance industry is experiencing change on multiple fronts, with most of the attention on new regulation, increased competition, and advances in technology. Often overlooked - and probably the most fundamental change - is the challenge from rising customer expectations and a more risk-adverse environment. Influenced by their interactions with companies in other industries, insurance customers today have higher expectations than ever before.

Solvency II is the new European directive and key regulatory requirement facing insurance firms operating within the EU. Due to take effect by the end of 2012, the changes are designed to increase protection for policyholders by ensuring the insurance market fully quantifies its risk and allocates sufficient capital to protect their businesses should difficult conditions (especially market conditions) arise.

Following up on The New World for Insurance - Business perspectives on Phase II, which looked at the potential business impact on the insurance industry from the IASB's and FASB's insurance accounting proposals. We give you an overview and update on how far the Boards have progressed in addressing technical concerns. We also help you inform your clients about what they should be doing now to prepare for these changes as well as providing a view of what lies ahead.

Las aseguradoras solicitan la aprobación de un modelo interno que les permita calcular sus requisitos de capital, como parte de la Directiva de Solvencia II, tendrá que demostrar que han tenido su modelo interno "validado independientemente". Esta es una de las seis pruebas claves necesarias para la aprobación de un modelo interno que, bajo solvencia II, resulta mucho más amplio que sólo un motor de cálculo. También abarca aspectos como el sistema de gobierno, datos, tecnología y cultura. Por lo tanto, la validación del modelo interno se extiende más allá de un examen cuantitativo de los requerimientos de capital.

2011 has been another challenging year for the (re)insurance sector. The sector is in a period of heightened market uncertainty as it begins to focus on the 2012 renewals. The devastating earthquakes in New Zealand and Japan, along with damaging tornadoes and floods in the United States and Australia, have resulted in insured losses of around USD70 billion so far this year.