Author Archives: Pamela Hellig

Solvency II Materiality: Size doesn’t matter

Ant carrying a lead to show size does not matter

Although Solvency II obliges insurers to disclose material information, the regulations do not define what makes an asset material. Materiality is about more than just market value. Insurers need to start paying more attention to capital requirements than market value when it comes to setting materiality thresholds… because risky dynamite often comes in seemingly insignificant packages…