The insurance industry has faced significant challenges in recent years due to a combination of economic changes driven by de-globalisation, a global pandemic and geopolitical tensions with serious implications for financial markets – most notably (social) inflation and fluctuating interest rates.  These developments have left their mark on recent and will so in future regulation. They have placed additional responsibilities on actuaries, who play a key role in navigating the changing landscape and ensuring that insurance is well prepared for what lies ahead.

The recent update of the Swiss Solvency Test (SST) as part of the revision of the VAG and AVO is important for Swiss actuaries. The recent Solvency II review, but more importantly the forthcoming detailed regulation that is being developed as we speak, affects some Swiss actuaries directly and many more indirectly through its potential impact on the SST.  The board of the Swiss Association of Actuaries, SAA, is calling for a working group to address key issues and we are looking for volunteers to contribute to this important work under the leadership of Lutz Wilhelmy.

Why your contribution matters
This working group is an opportunity to bring together diverse actuarial expertise to collectively assess the impact of regulatory changes. While some industry and political voices see the Solvency II review as a good opportunity to free up capital or introduce new concepts such as long-term capital, it is important to carefully assess these claims and consider their wider implications.
Volunteers will have the opportunity to engage in thoughtful discussions on how best to approach the upcoming changes, particularly when it comes to communicating with senior executives such as CFOs and CROs. In addition, the working group will explore how the evolving landscape will interact with other reporting frameworks, such as IFRS  and the International Capital Standard (ICS), as well as the new resolution and recovery framework.

What will the working group do?
The Working Group will focus on providing expert analysis and feedback on the Solvency II review, with a particular focus on the Insurance Recovery and Resolution Directive (IRRD). The Working Group may also discuss the challenges of implementing the SST and the similarities and differences with Solvency II.  Our objectives include:

• Analyse the final text of the Solvency II Review on key issues, taking into account the recent update of the SST, including the expected yield curves.  Note that there is a separate SAV working group to use Damir Filipović's work on the Kernel Ridge Method for a possible proposal on the future interest rate for the SST.
• Contribute to the development of SII detail regulation through the respective working groups in the Actuarial Association of Europe, AAE, where the SAA is a member.
• Provide insights on the IRRD resolution and recovery framework, taking into account the recent introduction of a restructuring law (Sanierungsrecht) in the VAG.
• Ensure that the Swiss actuarial perspective is known and heard within the broader European developments, while supporting the development of the Swiss regulatory framework.

Who should join?
We are looking for actuaries with a strong interest in solvency issues from across the insurance spectrum - whether you work in life, non-life or reinsurance. Your expertise and unique perspective will be invaluable in ensuring that we provide balanced, well-rounded input. Whether you're already familiar with the solvency framework or would like to expand your knowledge, your participation will make a difference.

This is an opportunity for members to deepen their understanding of key regulatory issues and how they are shaping the future of insurance and the profession.

How to join?
Please signal your interest no later than 27 June 2025 to Lutz.Wilhelmy@actuaries.ch and to Holger.Walz@actuaries.ch . The work will commence immediately thereafter.  The first virtual meeting will be called in the time from 18 August to 27 August following a corresponding doodle.