Since 2015, the Financial Market Authority has published the Bericht über die Lage der österreichischen Versicherungswirtschaft (Report on the State of the Austrian Insurance Industry – available in German only).
The first edition of the report focussed on the general effects of the new Solvency II regime, which fully entered into force on 1 January 2016. The following issues were in the foreground when preparing this report in light of the current economic environment:
- Will the new supervisory regime promote a certain business model?
- Will Solvency II affect the interest rate and bond markets?
- Will Solvency II’s risk-based approach lead as a whole to an increase in capital requirements in the industry?
- Will the range of products on offer change as a result of Solvency II?
- To what extent will the risk-based regime be able to contribute towards financial stability?