In collaboration with the University of St. Gallen, KPMG examined the possible impacts and changes these regulatory developments will have on the business models of insurers in Switzerland, Germany and Austria. How do insurers evaluate the regulations and are they at present well-prepared for their introduction and implementation?
Modifications to risk management as well as product and capital structuring are the focal points of changes within the business model. The study further reveals the along with FATCA and MIFID and the rules affecting cross-border business activities, the introduction of the Swiss Solvency Test (SST) and the Solvency II requirements represent the greatest challenges. Whilst the SST has already been introduced in Switzerland, the EU has granted European insurers a transitional period until the end of 2013 for the implementation of Solvency II.
The survey results mostly indicate that the insurance industries of Switzerland, Austria and Germany are ready for the various new regulations. At the same time, there are at times large regional difference in the anticipation of the possible relevance and requirements.
