Authorities are determined to take the actions ensuring that banking crisis scenarios will not appear anymore. This leads to an increased regulatory framework such as Basel III for banks and Solvency II for insurers together with additional measures aimed to increase consumer protection.
The evolving regulatory reform agenda is driving a fundamental overhaul in the way banks and insurers currently do business. In particular, the combination of tough capital and liquidity standards, along with international recovery and resolution planning requirements, are forcing many financial institutions to restructure business and operating models.
Finally, the accounting standards are also evolving and new expected evolutions such as IFRS for insurance contracts - Phase 2 need also to be anticipated by the sector.