In this report, Milliman’s Neil Christy, Stuart Reynolds, and Samuel Burgess focuses on the solvency and financial condition reports published in 2020 which refer to year-end 2019. The analysis of the European life insurance market covers more than 690 companies from 31 countries and one territory, representing approximately €824 billion of gross written premium and approximately €7,981 billion of gross technical provisions.
In June, the Prudential Regulation Authority (PRA) published its feedback to general and life insurers following their participation in the Insurance Stress Test (IST) 2019 exercise and the more recent stress test exercise specific to COVID-19.
IST 2019 was the third IST conducted by the PRA since the introduction of Solvency II. However, IST 2019 was the first in which UK life insurers participated (the first two tests being restricted to general insurers) and only life insurers with significant annuity exposures were invited to participate.
This paper by Milliman professionals summarises the key feedback from the PRA and discusses the expected implications for life insurers in the United Kingdom over the course of 2020 and beyond.
This report by Milliman’s Neil Christy, Stuart Reynolds, and William Smith focusses on the Solvency and Financial Condition Reports published in 2019 which refer to year-end 2018. Our analysis of the European life insurance market covers over 650 companies from 31 countries and one territory. The charts and results focus on nine of the largest European life insurance markets by the total volume of Technical Provisions.
This analysis by Milliman consultants of the European life insurance market covers 600 companies from 31 countries and one territory, representing approximately £612 billion (€691 billion) of gross written premium and approximately £6,508 billion (€7,302 billion) of gross technical provisions. It is based on a sample of insurers that are primarily focussing on selling life insurance business and, as a result, some composite companies have been excluded from the analysis.
In the United Kingdom, unit-linked insurance makes up the largest proportion of the life insurance market. According to the latest set of Solvency and Financial Condition Reports (SFCRs), in 2017, 60% of the technical provisions (equating to approximately £1.1 trillion) and 69% of the gross written premiums for UK life insurers related to unit-linked business. Approximately 11% of all unit-linked business in the UK is reinsured, equivalent to approximately £127 billion or 66% of all reinsurance in the UK life insurance market.
This paper by Milliman consultants summarises a number of the most material developments affecting unit-linked insurance business that occurred during 2018 and which remain areas of ongoing focus.