Chapter 10: Financial Strength

Question 1

What are the four main rating agencies?

Answer 1

• Standard and Poor’s (S&P)
• AM Best
• Moody’s
• Fitch

Question 2

What is Solvency II?

Answer 2

Solvency II was introduced on 1 January 2016 and established a set of EU-wide capital requirements, valuation techniques and risk management standards to replace the previous Solvency I requirements.

Solvency II requirements are structured into three pillars.

• Financial requirements
• Governance and supervision
• Reporting and disclosure