Kevin Borrett, Unum's chief risk officer
What is the greatest benefit of Solvency II?
I think the biggest benefit of Solvency II is the ORSA [own risk and solvency assessment]. At last we have an integrated approach to risk and capital management. Pillar II was a step along that journey, but under Solvency II we have this integrated approach that comes together through the ORSA, supported by the senior insurance managers regime and a new reporting, which really puts the focus on how companies provide capital for the risks they are running.
If you could change one aspect of Solvency II what would it be?
At Unum, we were hugely disappointed that we did not qualify for the matching adjustment for our core class of business, which is income protection. The MA applies to mortality risk, but the final level II text did not include a reference to morbidity risk – the risk of someone becoming ill and subsequently recovering – and that was a huge disappointment for us. We will continue to lobby in the future for that to be included.
How will celebrating the launch of Solvency II?
I am going to spend New Year with my elderly mother, who leaves in a remote part of north Wales. I will have a New Year and Solvency II implementation celebration with her there. It is a rural part of the country, therefore I should be watching the weather conditions intently and making sure I am appropriately prepared, which is perhaps a general message from Solvency II.
Companies:Unum
People:Kevin Borrett